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© filipefrazao84 dreamstime.com Electronics Production | September 25, 2019

Tough quarter for electric car maker NIO

Chinese electrics car company NIO responds to market conditions; layoffs ahead.

In its second quarter financial report the company reported vehicle sales of USD 206.1 million which represents a decrease of 7.9% from the first quarter of 2019. Gross margin for the second quarter was negative 33.4%, compared with negative 13.4% in the first quarter of 2019. In total the company recorded a loss in operations amounting to USD 469.9 million in the second quarter. Net loss stood at USD 478.6 million. “In response to the overall tempered market conditions, we are also working hard to maximize returns on our resources and have implemented comprehensive efficiency and cost control measures across the organization. These measures aim to further improve efficiency and streamline operations within our sales and service network and R&D activities,” saidWilliam Bin Li, founder, chairman and chief executive officer of NIO in the report. “We target to reduce our global headcount to be around 7,800 by the end of the third quarter from over 9,900 in January 2019, and aim to further pursue a leaner operation through additional restructuring and spinning off some non-core businesses by year end,” Mr. Li concluded. Going forward, the company says that it will continue to enhance sales by strengthening its value proposition through technology advancement.
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October 11 2019 3:09 pm V14.5.0-2