AutoBeta(AutoBeta.net)03/10 Report--

It was decided to cancel the self-built factory in Jiading, Shanghai, the Lulai ES8 and the second model ES6, both confirmed that they would continue to be produced by Jianghuai OEM. Li Bin affirmed the way for OEM to produce cars and announced that "it has been decided that our third model will be produced in JAC."

In its results for the fourth quarter of last year, Lulai posted a full-year net loss of 9.64 billion yuan, causing its share price to fall. NIO also decided to cancel the plan to build a factory in Jiading, Shanghai, which was signed in 2017.

Intezra's lower-priced Model 3 is on sale in China, and construction of the Tesla super factory in Shanghai Lingang began at the beginning of this year and is expected to start production by the end of the year, posing a greater threat to the strength of new cars in China, perhaps due to various considerations. Lulai stopped the project of the self-built plant in Shanghai Jiading, which was originally scheduled to be officially completed in 2020.

Li Bin said: "I don't know about Tesla, but stopping the construction of the Jiading plant is a decision made by NIO according to its own actual situation and the pace of development."

After canceling the self-built factory, NIO has more firmly established the cooperation mode of contract production, reducing cost and increasing efficiency. According to Xilai, investment has been made to transform and expand the production capacity of the Jianghuai NIO plant in Hefei, and the third model, "ET7", is still produced by Jianghuai Automobile.

The ET7 is a car that was originally planned to be built by a self-built factory in Shanghai.

"it has been decided that our third model will be produced in JAC," Li Bin said. " According to NIO, it will invest in and transform the contract manufacturing plant, with an annual production capacity of 150000 vehicles, up from 100000 at present. NIO will still adhere to the OEM cooperation model to find potential strategic partners, including Jianghuai Motor.

A total of 11348 ES8 vehicles were delivered in 2018, with a total revenue of 4.9512 billion yuan, but the loss continued to expand, with a net loss of 9.639 billion yuan for the whole year, an increase of 92 per cent over last year. The financial report shows that in 2018, the total cost of sales of NIO was 5.207 billion yuan, the total R & D expenses was 3.9979 billion yuan, and the total sales and management expenses reached 5.3418 billion yuan.

Wei has invested a lot in sales, management, promotion, and services, including moving charging cars and changing the power station to the Xilai Center. This is also the advantage of Chinese car companies, which Li Bin claimed. "they will expand the market through service and word of mouth."

Since the failure of the factory, Lulai has bet on the production mode of Jianghuai OEM, and the new models launched in the future will still be printed with the label of "Jianghuai Automobile".

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