AutoBeta(AutoBeta.net)08/21 Report--

Since more than a year since the mass production delivery of NIO Automobile, a new force in China, NIO Automobile has been facing crisis after falling into problems such as large losses, declining delivery volume, potential safety hazards of products and crisis of public opinion. Wei Lai, who issued a clarification statement for two consecutive days, once again attracted attention. Even Li Xiang, one of the shareholders, felt that there was a "bad phenomenon".

Media sources pointed out that NIO, listed on the New York Stock Exchange, is planning to return to Kechuang Board, IDG, Hillhouse Capital, etc. to participate in the operation, while NIO will close its Silicon Valley office, which has more than 500 employees. In addition, Wei Lai also carried out a new round of layoffs.

On Aug.20, it was also reported that NIO plans to merge its autonomous driving business unit with Didi's spin-off autonomous driving company, and NIO founder Li Bin has held several rounds of negotiations with Didi on the plan.

In response to outside news, NIO issued two clarification statements, one is that media reports such as Wei's return to science and technology board and the closure of Silicon Valley office are false reports, NIO systematic efficiency improvement is the focus of work, and employee optimization will be carried out in an orderly manner; the second is that NIO has not split up the autonomous driving business department, nor has there been any relevant merger plan.

In the official blog comments, some netizens said,"It's really a day to dispel rumors." The side reflects the current operation problems of NIO, but also faces the crisis of public opinion.

Li Bin, founder and chairman, also responded to layoffs and rumors. Li Bin said that in the past, NIO Automobile had nearly 10,000 employees, but this reduction is to optimize and improve the operation effect faster.

Wei Lai also confirmed that from nearly 10,000 layoffs to 8800, the actual reduction in personnel is about 1000.

In addition, Li Xiang, a shareholder and stakeholder of NIO Automobile, also issued a statement in response to a series of public opinions. Li wants to say that there has been a bad phenomenon recently. Any negative news about NIO Automobile has been thrown at us. This phenomenon has lasted for some time, but it has become more and more serious recently. We really don't carry this pot. Li Xiang is not only a shareholder of NIO Automobile, but also the founder of Ideal Automobile.

Wei Lai, who has always been very high-profile, has also become low-key in the face of huge public opinion pressure. Li Bin, who frequently appears in major media, seems to be hidden behind the scenes. This change is reflected in NIO's "bad" delivery and financial data, and also reflects the reality that China's new car-building power boom is gradually fading.

NIO Auto has been listed on the New York Stock Exchange since September last year, with its share price as high as $13.80 and as low as $2.35. It is currently trading at $3.16.

Sales continue to decline. According to the announcement issued by NIO Automobile, a total of 837 vehicles were delivered to users in July, including 673 ES6 and 164 ES8, down 37.5% from June sales. A total of 8379 vehicles were delivered by NIO in July 2019 and 11348 vehicles were delivered in 2018, with a total of 19727 vehicles delivered so far.

Product safety recall. Since the occurrence of several spontaneous combustion cases, NIO launched an investigation and issued a recall statement on June 27, recalling 4803 ES8 vehicles. It was found that the cause of the accident was an earlier batch of battery pack design defects, with a risk of short circuit of wiring harness. By prioritizing battery capacity, NIO completed the battery recall of 4803 ES8 vehicles in nearly half the time originally planned, but it also affected the production and delivery of vehicles in July, NIO said.

Executive departures. In June, Zhuang Li, vice president of software development, resigned. In August, NIO internal mail announced the retirement of its co-founder and executive vice president Zheng Xiancong.

Continued losses. In the past three years, NIO Automobile has accumulated losses of nearly 20 billion yuan.

Wei Lai Automobile, which is considered as "Tesla of China" and not bad for money, is also under great pressure. Li Bin said, The car market winter, New force car-building enterprises are facing the test, Difficult years, More to keep improving.

NIO is only one of the representative enterprises of China's new car-making forces. There are dozens or even hundreds of new force brands that have been announced. With the sharp decline in subsidies, many enterprises that rely on subsidies to survive have begun to be eliminated, while most brands are still in the "PPT" stage, and mass production delivery is far away, and it is unknown whether they can survive. There are signs that the wave of investment in new energy vehicles is receding.

Industry insiders believe that "this year is the differentiation year of new forces in car building, and next year is the year of closure."

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