AutoBeta(AutoBeta.net)08/22 Report--

The rapid development of Xilai Motor, which has been repeatedly caught up in public opinion and layoffs, is now another round of layoffs, and 1200 people will be forced to leave.

Li Bin, founder of NIO, issued an internal letter on Aug. 22, acknowledging that in order to further control expenses and improve operational efficiency, he would cut another 1200 jobs in September because of major changes in the industry and the company.

"the layoffs are mainly concentrated in human resources, legal, finance and other operational support departments, with little impact on strategic core departments such as R & D and user services," NIO said. "

There is no doubt that under the pressure of funds and delivery, Xilai has to start the "slimming plan" again. During the rapid development of NIO, the total number of employees is about 9500, during which there have been many layoffs. In September, NIO will continue to lose 1200 jobs worldwide and retain 7500 by the end of September. Compared with the peak, the rate of layoffs in NIO is more than 20%.

Internet car building is difficult to achieve self-hematopoiesis, the development process is bound to go through a period of labor pains. In the past three years, Xilai Motor has lost nearly 20 billion yuan. With continued high consumption, there is also pressure on capital.

Deliveries continued to decline. A total of 837 vehicles, including 673 ES6164 ES8 units, were delivered to users in July, down 37.5 per cent from June, according to an announcement issued by Xilai. A total of 8379 vehicles were delivered in the first seven months of 2019, down from 11348 in the seven months of 2018. A total of 19727 electric cars have been delivered so far.

The tide of Internet car-building has receded, and the amount of investment has fallen sharply. Financing has basically become the top priority for the survival of the new power of car building, but with the fade of the boom and policy changes, great changes have taken place in the capital environment, and investors have become extremely cautious about the investment projects of Internet car building. As of June 14, 2019, venture capital investment in China's electric vehicle sector fell nearly 90 per cent year-on-year to $783 million, a far cry from the $6 billion received in the same period in 2018, according to data released by global data research firm PitchBook.

The development trend of Wei Lai basically represents the development of China's Internet car-making groups. With the sharp decline in subsidies, many enterprises that rely on subsidies to survive began to be eliminated, while the vast majority of brands are still in the "PPT" stage, mass production delivery is a long way off, how to survive is also a problem. It can be expected that in the past year or so, Internet car building has entered the life-and-death knockout round.

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