The low-cost brand Onvo, which is aiming for a European and thus Danish launch, is doing so poorly at home in China that the director has now been fired.
The Chinese car brand Onvo, owned by Nio, has experienced a collapse in the Danish market and is now firing its CEO.
Onvo, which launched as Nio's low-cost brand for Europe, has fired Alan Ai. This comes in the wake of declining sales figures for the brand.
On Wednesday, Onvo CEO Alan Ai was fired. The board of directors' decision was based on Onvo's significantly lower sales than expected.
Sales of the L60 electric car in particular have disappointed and failed to meet expectations since it was launched.
This is what CNEV Post writes.
Alan Ai himself has stated that the marketing of the car plays a significant role in the weak sales that have characterized the brand.
The change in the director position at Onvo comes just days after Volvo also changed its director to save sales.
Alan Ai is being replaced by Shien Fei. He takes over at a time of pressure for the car brand. Parent company Nio has a target of achieving profitability in the last quarter of the year.
And this despite the fact that last year they ended up losing a whopping 23 billion on the floor. Read more about it here .
To achieve this goal, Nio is counting on Onvo and the L60 model to significantly improve sales and contribute positively to the bottom line.
The new director therefore faces a significant task of turning the tide for Onvo.
The decision to replace Alan Ai also marks that Nio will integrate Onvo more closely into the parent company going forward.
According to Chinese media, the new director, Shien Fei, will report directly to Nio's CEO Qin Lihong and founder William Li.
Ai is expected to continuously brief Nio's top management on decisions made and developments in Onvo's results.
The closer integration is likely to ensure better control and synergy between the two brands.
Nio introduced Onvo two years ago. The L60 was Onvo's first car model. The car was described by many as a budget alternative that would compete with cars like the Tesla Model Y in the European market.
Despite a specified range and a price that was considered competitive at launch, sales figures have been unsatisfactory for the parent company Nio, which has now led to the dismissal of the director.
Onvo owners have also complained about cars plummeting in price on the used market. This is partly due to the brand itself reducing the price of brand new cars overnight.
The future will tell whether Shien Fei can turn the tide for Onvo.
