Nio Inc. continues to make adjustments to its organizational structure in order to reduce costs and improve overall operations. According to a report from local media outlet 36kr, the electric vehicle (EV) maker recently announced internal changes to its sub-brands Onvo and Firefly.
The focus of this round of restructuring is on the Onvo brand, which will now operate as a first-tier division of Nio. The Onvo brand, launched in May 2024, has seen some challenges, particularly with its first model, the L60, which underperformed in the market. As a result, the former president of Onvo, Alan Ai, resigned last month, and Shen Fei has taken his place.
Under the new organizational changes, Nio’s product design and development cluster (PD&D) will have a new Onvo product design and development tier one department, reporting directly to Nio’s founder, chairman, and CEO, William Li. This department will oversee product development, user services, and model marketing for the Onvo brand. Additionally, the user services and experience cluster (UE) has created a new Onvo user services tier one department, which will handle planning and operations, regional sales strategy, and regional sales management for Onvo.
The Firefly business unit has been moved into the PD&D cluster, though specific details about this transition were not provided in the report. Overall, the original Onvo and Firefly business units have been scrapped, signaling a consolidation of Nio’s brand portfolio.
In addition to these organizational changes, Nio is also reducing management compensation costs. Employees at the P4 level and above have been informed that more than 20 percent of their monthly salary will be converted into equity incentives.
These adjustments are part of Nio’s efforts to achieve a single-quarter profit in the fourth quarter of this year, as announced by Li earlier this year. The company aims to improve cost and expense control, with financial statements expected to reflect these improvements starting in the second quarter.
The series of changes within Nio’s organizational structure and brand consolidation are aimed at streamlining operations, reducing costs, and ultimately driving profitability for the company. As Nio continues to navigate the competitive EV market, these strategic adjustments will be crucial for its long-term success.
