Friday, June 21, 2024

Distressed Chinese brand is 295 to pay a bill

The car brands have more than difficulty paying their bills. According to a new settlement, Nio, who has gone dormant in Denmark, has the biggest money problems.

There is such a lack of money in the car industry. That is, unless you are a Ferrari and earn millions of kroner per car.

This is shown by a new settlement according to the American financial media Bloomberg .

On average, Nio, who has gone into hibernation in Denmark this year to flee to Sweden, has a full 295 days to pay their suppliers' invoices. It's not exactly impressive.

But it is actually a significant deterioration compared to 2021, when Nio had 'only' 197 days to cough up the money. Other brands from China are also holding back.

READ ALSO: 20-year-old arrested – hid 22 camera traps under his bed

On average, Xpeng pays its bills after 221 days. In 2021, that number was 179 days, and at Tesla in China it takes 101 days to pay an invoice.

It is especially the massive number of car brands that puts pressure on the economy of the individual companies. Since Tesla started a price war in January 2023, the profit margin per car for several car brands went from very small to non-existent.

BYD is another of the brands that owes money to suppliers. In fact, the suppliers' receivables from the car brand, which believes it has received the blue stamp in Denmark, have tripled since 2021.

However, it is not only among the suppliers in the automotive industry that the ever-less money can become an ever-greater problem. At the Stellantis group, managing director Carlos Tavares has already foreseen a carnage among the car brands.

– If you lower prices without taking into account your costs, you will have a bloodbath. I try to avoid a race to the bottom.

– I know of a company that has brutally lowered prices and their profitability has collapsed, says Tavares back in January.

One of the car brands that looks more like bankruptcy at the moment is Fisker Inc. But instead of assuring customers that they are trying to save the business, Henrik Fisker has issued a special warning. Read more about it here .

Read more exciting news from and about the world of cars right here!

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