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Euler Automobile responded to the reason for the suspension of production, dealers increased the price to sell existing cars?

2024-09-08 Update From: AutoBeta autobeta NAV: AutoBeta > News >

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AutoBeta(AutoBeta.net)02/16 Report--

On the evening of February 14, Euler issued a temporary notice to the 4S store, asking dealers to stop accepting orders from Euler black and white cats from 0: 00 on the 15th, while clearly informing the manufacturers that they no longer accept orders. In response to this, the person in charge of the Euler brand responded: "these two models have indeed been discontinued."

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The "stop production" here is interesting! In the automobile industry, "stop production" means to stop production, which may mean temporary or permanent suspension of production, while there is still some controversy as to whether the "suspension of production" in the response of the relevant responsible person is temporary or permanent.

In response to the news that Euler black cat and Euler white cat stopped production, Euler Automobile responded on Weibo: due to chip shortage, parts supply can not guarantee production and many other reasons, resulting in a large backlog of black and white cat model orders, customer purchase cycle is too long, affecting the customer experience, in order to avoid bringing more bad car purchase feelings to car owners who trust Euler models, manufacturers will coordinate internal resources to meet the existing order scheduling plan more quickly. Ensure the pick-up speed and purchase benefits of existing car-booking customers.

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Judging from Euler's response, its more directional is "temporary suspension of production", and the reason is that the shortage of chips leads to a squeeze of orders, and the long customer pick-up cycle affects the user experience, which can be verified. In the gas money of Euler Black Cat and Euler White Cat, we can see that many would-be car owners are reporting on the difficulty of picking up the car. It will take at least 3-4 months from booking to pick up the car in September 2021. Euler cars urgently suspend accepting orders from Euler Black Cat and Euler White Cat based on this consideration. after all, if you book a car now, you don't know when and when to pick up the car.

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So when the orders of Euler black cat and Euler white cat are delivered, will they continue to accept the order, or will they stop production? According to a certain Euler car sales, "the profit is too low" and "it is more expensive to sell at the back. Euler good cats are low-grade", and these messages both inside and outside reveal the possibility of permanent suspension of Euler black cats and Euler white cats in the future. It is understood that at present, there are three models on sale under Euler Automobile, namely, Euler Black Cat, Euler White Cat and Euler good Cat, among which the guiding price of Euler Black Cat, Euler White Cat and Euler White Cat is 84800 yuan, 88800 yuan and 160900 yuan respectively. In terms of sales in 2021, the best-selling model of the Euler brand is the Euler Black Cat, with 63492, followed by the Euler good Cat with 49900 and the Euler White Cat with 20605. From the sales data, Euler Black Cat is still the main product of the Euler brand, so it is impossible to stop production because of sales problems, but is more likely to be lower profits and future development plans of the brand.

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In fact, in July 2021, Yu Fei, general manager of Euler brand marketing, said in an interview with the media: "in the future, Euler brands will mainly focus on products in the market of 10-200000 yuan, and will attack the price range of more than 200000 yuan." To some extent, this may indicate the possibility that low-end models will withdraw from the market and impact the higher-end new energy vehicle market, while according to the 2022 product plan of Euler cars obtained by the auto industry, it will launch four new models this year, including ballet cats, lightning cats, punk cats and cherry cats, of which ballet cats are expected to go on sale in March at a price range of 15 yuan to 200000 yuan. Lightning cats will go on sale in the second quarter of this year and are expected to sell for about 200000 yuan, while punk cats are more high-end, with prices ranging from 20 to 250000 yuan. In addition, Cherry Cats will also be listed next year, but mainly in overseas markets, and may also be listed in China.

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At this stage, Euler cars stop production of Euler black cat and Euler white cat only temporarily, and the main reason for the shutdown is that the chip shortage leads to a long delivery period, while comprehensive car executives and new car planning point of view, Euler black cat and Euler white cat have the possibility of "out of print", due to lower profits, new energy subsidies, rising prices of core components, brand development planning, and so on. Of course, a temporary or permanent suspension of production may soon be the answer.

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It is worth noting that it was only yesterday that Euler Black Cat and Euler White Cat were notified to suspend receiving orders, and some dealers had a crooked mind. A car friend said in the black cat circle, "Today the 4S store called me to say that the black cat is going to stop production (stop selling). If so, he still has a current car over there, with a price increase of 3000."

Thus it can be seen that the shortage of key components, especially the rising prices of core components such as chips, have increased a lot of costs for many car companies, so it is not surprising for car companies to supply limited chips to models with high profits. Previously, FAW-Volkswagen was affected by chip shortages. In order to make up for production losses and ensure profit support, FAW-Volkswagen gave priority to the supply of universal parts to Audi models with higher profits.

Great Wall plans to sell 4 million vehicles worldwide by 2025, 80 per cent of which are new energy vehicles. In other words, sales of Great Wall New Energy vehicles will reach 3.2 million by 2025, and Euler Automobile is the only new energy vehicle brand under Great Wall Automobile. The higher-end salon may not be able to support the banner of Great Wall Automobile. This task will fall to Euler Automobile again, and if Euler Black Cat and Euler White Cat stop production, can the brand upgrade be completed with the help of ballet cats, punk cats, Lightning Cats and other models. It's all full of unknowns.

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