The new force of making cars has gone beyond cars to a critical juncture of life and death. This car company backed by Baidu and Geely once shouted for Tesla, but the monthly sales volume after delivery was always at a low level.
On the afternoon of December 11th, Xia Yiping, CEO of Extreme Vietnam, issued an internal letter acknowledging that the company is currently encountering difficulties and needs immediate adjustment. He proposed a series of measures, such as merging departments and posts with overlapping functions and cutting projects that could not improve financial performance in the short term.
Interface News learned from a number of employees that the company’s employees’ wages have been paid in November, but the social security in November and December needs to be paid by themselves.At present, all the business of the company is at a standstill, and a large group of internal staff are forbidden to speak.
Extreme Vietnam plans to leave a very small number of employees to maintain business. The remaining employees have two options: one is to leave their jobs and wait until the end of February next year to get N+1 compensation; The second is to choose to stay, but the salary will not be paid from December, and the staff will be in a state of "going to work at their own expense".
According to insiders, the R&D department will be completely cut off in this round of layoffs. At present, the company has more than 5,000 employees, including full-time and outsourcing, and its after-sales department has more than 300 employees. According to the current notice, only 80 employees will be left in the after-sales department. According to this calculation, only about a quarter of employees in the after-sales department can avoid leaving.
The store will stop selling and lock the test drive to stop receiving users. At the same time, the company is conducting an asset inventory and recycling vehicles. Some employees of Extreme Vietnam Automobile are ready to defend their rights.
Extreme Vietnam responded in the latest statement released in the evening that the company is actively promoting financing. At present, the services involving vehicles are in normal progress, and all channels can still make normal reservations for maintenance and other services. The delivery of new cars is normal, but in the process of recent strategic adjustment, some users may be slow to deliver cars. In terms of supplier cooperation, Chaoyue is actively making financial adjustments and arranging payment in an orderly manner.
An insider close to the car told the interface news that,The core of the sudden collapse of Extreme Yue Automobile lies in the lack of support from shareholders.Baidu, as the main funder, is not optimistic about the prospect that Extreme Yue Automobile can achieve profitability, and chooses to stop loss in time; Geely, the largest shareholder, is mainly responsible for providing platforms and technologies and collecting OEM fees."Extreme Vietnam has actually owed a lot of Geely’s OEM fees".
The internal staff of Extreme Vietnam told the interface news that due to the arrears of Extreme Vietnam, Geely will no longer provide existing cars, and the factory production line will stop. Some consumers commented on the social media accounts of Ji Yue and Xia Yiping, urging delivery.
The predecessor of Jiyue Automobile is Jidu Automobile, and Baidu and Geely hold 55% and 45% respectively. Among them, Baidu is responsible for the product definition and technology research and development of Jiyue automobile, and Geely undertakes the manufacturing. Before August, 2023, Jiyue Automobile was pre-heated and publicized under the name of Jidu Automobile for two years, and its first model was released.
However, due to the problem of production qualification, Jidu automobile was forced to adjust, which also had an impact on brand promotion. In order to realize the mass production of the model as soon as possible, Geely and Baidu newly established Hangzhou Jiyue Automobile Technology Co., Ltd., and the shareholding ratio was changed to Geely 65% and Baidu 35%.
A senior industry analyst, who asked for anonymity, said in an interview with Interface News that Baidu was more involved in the operation as a supplier in the later period, while Geely, which focused on manufacturing, paid more attention to the more closely related pole krypton in the inclination of internal resources.
The above-mentioned insiders told the interface news,There are only more than 200 vehicles in stock.Due to the arrears of rent, some vehicles in the ultra-store were detained by the property, while a Shanghai ultra-store was shut down after half renovation.
In the first 11 months of this year, the cumulative delivery of ultra-Vietnamese vehicles exceeded 14,000, which was less than 1,300 vehicles per month, which was not as good as the latest monthly average delivery level released by Ideality, Ai ‘an and other new head-building forces.
Last month, Extreme Vietnam officially announced sales of 2,485 vehicles. Informed sources revealed to the interface news that in the near future, some of the terminal sales of more than 2,000 vehicles actually flowed to the rental channel, and there were not many for individual consumers.
Zhu Kai, general manager of Jielan Road, said in an interview with the interface news that the ultra-yue model emphasizes intelligent labels, but its performance in the core intelligent driving ability is not outstanding, and it has not affected the user’s mind of end consumers. Some functions that pursue technological pioneers, such as a half-width steering wheel, a special-shaped long screen, a screen shift button to change lanes, and no door handle, may not be acceptable to consumers.
Besides,The birth of Jiyue automobile was late, which missed the golden age of the development of new car-making forces.There is only one chance to survive and gain a foothold. However, when the first model was released, there was a pricing error. Less than a month after listing, the more urgent it was to reduce the starting price by 30 thousand yuan. At this time, the volume accumulated in the previous press conference has gradually lost, and the price change has also aggravated users’ doubts about further price reduction.
Zhu Kai told the interface news that this shows that Extreme Vietnam is not stable enough in its operating rhythm. He believes that the ultra-Vietnam marketing team lacked the ability of terminal high-intensity combat when the first model went on the market. "The competition in the 200,000-yuan pure electric vehicle market where Extreme Yue is located is the most intense. When Xiaomi Automobile, the latecomer, launches products in the same sub-track, it is difficult for Extreme Yue Automobile, which lacks brand awareness, to compete."
In March of this year, Extreme Yue Automobile began to strengthen marketing. After Yang Zhen, the head of the user development department of Jiyue Automobile Marketing, left his post, Xia Yiping, the CEO, personally took charge of the department, and the head of the sales user operation department was changed to Andy Gao from Tesla.
Xia Yiping began to actively market on major social platforms, and updated every day on average. Earlier, in an interview with media such as Interface News, Xia Yiping said that he only slept for five hours every day, "using one day to do other people’s things for a few days".
As of press time, the content on Xia Yiping’s graphic platform has been completely emptied, and the short video platform has not been updated for two days. Some media called Xia Yiping on the Internet and asked him to pay 360,000 yuan in arrears to the communication provider, and said that he had sent a reminder letter several times.
When the elimination of the automobile industry intensifies, I am afraid there is not much time left for the weak brands. When communicating with all the staff of the company, Xia Yiping said that a more intense battle is coming, and the management will go all out to tide over the difficulties.
This article comes from WeChat WeChat official account:Interface newsAuthor: Yang Shihan, Zhou Shuqi
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