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On the evening of Feb. 14, Great Wall dealers said they had been informed that Great Wall manufacturers would stop accepting orders for two low-cost models, Euler black cat and white cat, from 00:00 on the 15th. At the same time, Great Wall Motor also asked dealers to remove the cars and promotional materials from the showroom. The next day, Euler confirmed the rumor to the media, and the person in charge responded: "these two models have indeed been discontinued." .

Last night, Euler CEO Dong Yudong issued a note in Euler Automobile APP, further explaining the reason for stopping taking orders, he said: "Black and white cats stop taking orders, not stop production." ", but admit that there are difficulties.

By difficulty, he means that the profit of the model is not high. Euler black cat and white cat are electric fashion cars with less than 100,000 yuan. The guiding price of Euler black cat is 84800 yuan and that of white cat is 7.18 yuan to 88800 yuan. From the launch to the end, the two models sold a total of 173000 models. In 2021, Euler sold 135000 vehicles, up 140% from a year earlier, including 50900 good cats and 66300 black cats. In January, about 4209 black and white cats were sold in January. It is precisely because of the product price, Dong Yudong said that the two models of Euler cars have brought huge losses to the company, and take the black cat as an example, he said that the price of raw materials rose sharply in 2022, with a loss of up to 10,000 yuan for each unit sold, resulting in a situation of more and more losses. On the other hand, Euler cars have more than 20000 orders to be delivered, and in the absence of chips, the delivery of new orders will be delayed until the end of the year. He stressed that the after-sale of Euler black cats and white cats will not be affected.

The explanation made yesterday is somewhat different from the explanation given by Euler Automobile's official Weibo to netizens on February 15. When users asked why they stopped taking orders, Euler 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 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. In this reply, only the reasons for the shortage of chips and the supply of spare parts were mentioned.

There are also car buyers who directly ask the dealer's sales why they stopped production, and the answer to the sales is obviously much more direct: the manufacturer's profits are too low. This is also the first reason for the explanation in Dong Yudong's explanation yesterday. And Euler cars also began to advise consumers to give up black cats and white cats and choose other models, which will also become the standard tactic of Euler car sales.

Great Wall plans to sell 4 million vehicles worldwide by 2025, 80 per cent of which are new energy vehicles. Euler is the only hope for other Great Wall brands before switching power, and good Cat is currently the only brand on sale in Euler Cats, even the sudden news of fake chips in November last year did not affect its sales performance.

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." According to the 2022 product plan of Euler cars acquired by the auto industry, Euler will launch four new models in 2022, including ballet cats, lightning cats, punk cats and cherry cats. Ballet cats are expected to go on sale in March with a price range of 15-200000 yuan, while lightning cats are expected to go on sale in the second quarter of this year at around 200000 yuan, while punk cats are higher-end. The price may come to 20-250000 yuan. In addition, Cherry Cats will also be listed next year, but mainly in overseas markets, and may also be listed in China.

Dong Yudong's explanation confirmed previous rumors that Euler really stopped production because it was not profitable enough and stopped production to make way for higher-priced models. According to some users who have booked a car, they only got the new car in the last two weeks, and they ordered the car last October. This means that their car has not yet been on the road, has been officially announced to stop production, or according to Euler car CEO Dong Yudong's recent description, is to stop taking orders, bought stop-production models and stop-taking models, as if the latter sound less harsh than the former.

Before Euler suddenly announced that it would stop taking orders, many customers ordered the two models as usual. While Euler cars are promoting and preparing for the launch of new models, in terms of chip resources, it is tilted for other models rather than black and white cats, it is obvious that the shortage of core power will not affect the market rhythm of European customers' access to models; the resumption of supply of black cats and white cats means that the price of raw materials will fall to the profit level expected by Euler cats, and the problems of resources and profits are obviously impossible to solve. In dealing with the problem of product iteration, most brands use the way of launching products from high to low, and Euler is currently using a gradual upward product positioning. Dong Yudong said in the explanation that he will actively coordinate the resources of all parties and try his best to solve the problem quickly, more to appease users who have placed orders in the near future. unless the price range of the new model seriously affects the market and follow-up development of Euler cars, what will be the motivation and reason for Euler to solve this problem?

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