Gasgoo Daily: NIO to cut workforce by 10%

[Hamartia Antidote]

Gasgoo Auto news

News about Gasgoo China

autonews.gasgoo.com

NIO's Chairman and CEO, William Bin Li, issued a company-wide internal letter to employees today, confirming a reduction of approximately 10% of the workforce, with specific adjustments to be finalized in November. In the letter, Li emphasized the company's commitment to ensuring long-term investment in core critical technologies, maintaining a leading edge in technology and product development, bolstering sales and service capabilities to thrive in a fiercely competitive market, and ensuring the on-time launch of nine core products under three brands. To achieve these goals, the company plans to consolidate redundant departments and roles, streamline inefficient internal workflows, and eliminate less efficient positions. Resources will be reallocated, and investments in projects that do not contribute to the company's financial performance within the next three years will be postponed or reduced.

NIO's Nanxiang Delivery Center; photo credit: NIO

 

[S10]

They still haven't delivered a viable plan for profitability, 5 years after entering the market.

 

[Hamartia Antidote]

Nio lays off around 3,000 employees - electrive.com

The Chinese electric car manufacturer Nio is laying off around ten per cent of its employees to lower costs. All the concerned positions will be cut before the end of November.

www.electrive.com

Nio’s EV-Making Partner Puts Factory, Other Assets Up for Sale - BNN Bloomberg

Anhui Jianghuai Automobile Group Corp., which makes electric vehicles for US-listed Nio Inc., is selling a car factory and other assets worth an estimated 4.5 billion yuan ($615 million).

www.bnnbloomberg.ca

 

[Menthol]

In many ways, NIO is doing everything right.

But one thing is their car doesn't sell well.

Maybe it's too expensive, they don't aim for the sweet spot on price level.


I think the same wrong strategy done by Chinese car brand in Indonesia which is aiming for a bit of upper class.

Wuling in Indonesia gets so many attentions because they release the right car at the right price.

But for other Chinese brands, they aim for the more expensive level, the level on which everybody has money, and price is not an issue.

Of course, Chinese brands are losing big, because people still prefer good design and brand image over cheaper price and more features.

If they want more features, they can simply buy Lexus, Mercedes Benz, BMW instead of Chinese car.

 

[nahtanbob]

In many ways, NIO is doing everything right.

But one thing is their car doesn't sell well.

Maybe it's too expensive, they don't aim for the sweet spot on price level.


I think the same wrong strategy done by Chinese car brand in Indonesia which is aiming for a bit of upper class.

Wuling in Indonesia gets so many attentions because they release the right car at the right price.

But for other Chinese brands, they aim for the more expensive level, the level on which everybody has money, and price is not an issue.

Of course, Chinese brands are losing big, because people still prefer good design and brand image over cheaper price and more features.

If they want more features, they can simply buy Lexus, Mercedes Benz, BMW instead of Chinese car.

Their plans was for a $27,000 electric car for American market. I would not call that expensive

 

[S10]

Problem is that Nio launched as a luxury brand, which should only be done if there was an established based brand.

Volkswagen -> Audi
Toyota -> Lexus
Honda -> Acura
Nissan -> Infinity
GM -> Cadillac
Ford -> Lincoln
Hyundai -> Genesis

 

[StraightEdge]

Li Auto did in 1 year what NIO couldn't do in 5years. if you waste time on stupid stuffs like launching a cell phone, and expanding in US, then this will be the result. Where is NIO listed? US, NYSE. That is why NIO is in news. In fact there are at least 5 more EV brands in China which are doing way better, but not in news.
How many people know about Li Auto, Avatr, IM, Aito etc., Not to even mention about BYD.

Edit - my prediction, NIO will tank in 2 years.

 

[Menthol]

Up to today, I don't know why NIO doesn't sell well, especially in China.

The car quality is good.

Maybe the design is way too simple, and the buyer dislikes it.

 

[Viet]

Up to today, I don't know why NIO doesn't sell well, especially in China.

The car quality is good.

Maybe the design is way too simple, and the buyer dislikes it.

Nio just fired the entire management team of Germany. Why people don’t buy? Simply too expensive. They want to sell 60,000-70,000 euros for a made in China car. Chinese are crazy. Quality is ok not that great, not on par with Audi, BMW, Mercedes. Design is terrible with so many visible front and back cameras. That look like a google car.

 

[SaadH]

Li Auto did in 1 year what NIO couldn't do in 5years. if you waste time on stupid stuffs like launching a cell phone, and expanding in US, then this will be the result. Where is NIO listed? US, NYSE. That is why NIO is in news. In fact there are at least 5 more EV brands in China which are doing way better, but not in news.
How many people know about Li Auto, Avatr, IM, Aito etc., Not to even mention about BYD.

Edit - my prediction, NIO will tank in 2 years.

NIO is backed by Chinese gov't, it will be around and will make a recovery. It's quality and performance far exceeds all other brands...

 

[StraightEdge]

NIO is backed by Chinese gov't, it will be around and will make a recovery. It's quality and performance far exceeds all other brands...

I don't think so, maybe some Chinese poster can correct me if I am wrong. The story was that when NIO was struggling during pandemic, Hefei municipal govt helped it with $1.4b of support. NIO shifted it's HQ to Hefei in return. I don't think CCP as such has any specific interest in NIO, as compared to other companies. As for quality, it might have been better than rest 2/3 years back. The Chinese car scene moves too fast. As of now, I think many brands like Aito, Li, IM, Avatr provides very good quality. The 'quality' point is not unique to NIO anymore. Like I said, they are a fancy, well known brand. But not necessary better than other Chinese brands.
Their battery swap stations are revolutionary though.