Nio Inc (NYSE: NIO) is undergoing a significant team restructuring to streamline the sales operations of its main Nio brand and the Onvo sub-brand. This move is part of a cost-saving initiative to improve organizational efficiency within the company.
According to a recent report by local media outlet Sina Tech, several key personnel changes have been made to integrate the sales teams of the Nio and Onvo brands. Gu Yue and Gong Dequan, former general managers of Nio’s regional companies in Tianjin and Dalian, respectively, have stepped down for personal reasons.
In their place, Cheng Long, the general manager of Onvo’s Tianjin regional company, has taken on the role of general manager for Nio’s Tianjin regional company. Similarly, Li Jia, the general manager of Onvo Dalian, now also serves as the general manager of Nio Dalian. Additionally, Fan Hongyin and Yan Xiamin, general managers of Nio regional companies in Hangzhou and Wenzhou, respectively, have also been appointed as general managers of the corresponding Onvo regional companies.
The restructuring efforts have been accelerated since Shen Fei took over as the president of Onvo following Alan Ai’s resignation. Under Shen’s leadership, Onvo’s R&D, supply chain, and quality departments now report to Nio’s founder, chairman, and CEO William Li. The marketing system has also been restructured to report to Qin Lihong, Nio’s co-founder and president, in order to improve operational efficiency.
Nio is setting ambitious goals for profitability, aiming to achieve single-quarter profitability in the fourth quarter of this year. Li has emphasized this target multiple times, stating that the company’s financial statements should show improvements in cost and expense control starting from the second quarter.
With increased sales, improved gross margins, and enhanced expense control measures, Nio is confident in its ability to reach its profitability goal by the end of the year. These strategic changes and restructuring efforts reflect Nio’s commitment to driving growth and success in the competitive electric vehicle market.
Overall, the integration of the Nio and Onvo sales teams is a crucial step towards optimizing operations and maximizing efficiency within the company. By aligning sales channels and streamlining processes, Nio is positioning itself for continued success and sustainable growth in the rapidly evolving EV industry.
