China Fund News reporter Yishan
Recently, after the Eula black cat and white cat models were exposed to rumors of suspension of production, Dong Yudong, CEO of the Euler brand under Great Wall Motors, publicly responded that the black cat and the white cat just stopped taking orders and did not stop production, but the company did encounter difficulties.
It is understood that after the sharp rise in raw material prices in 2022, the loss of black cats alone exceeded 10,000 yuan. Although the company has the advantage of the industrial chain behind it, it still faces huge losses.
Black cat white cat was exposed to rumors of discontinuation
It is reported that on February 14, the Euler brand passed to the terminal the notice that the black cat and the white cat stopped taking orders, and after the news came out, some relevant sales staff of the Euler direct sales store said that dealers across the country have received a notice that the store will not sell black cats to white cats, and the duration is unknown.
Source: Euler Automotive official website
The media have also reported the news of the suspension of the sale of Euler black cats and white cats, according to the daily economic news, the relevant person in charge of the Euler brand has responded: "These two models have indeed been discontinued." ”
According to the first electric network report, when asked the reason, the relevant personnel said that first, because the national new energy vehicle subsidy declined, the price of the black and white cat itself is not high, and the significance is not great. The second is because of the shortage of related parts supply chains, and the other is that the production capacity cannot be toppled.
The CEO of the brand responded:
Not a production stoppage, but a huge loss
On the evening of February 23, in response to rumors, Dong Yudong, CEO of the Euler brand under Great Wall Motors, posted on the Euler ORA App that the black and white cat stopped taking orders, not stopped production, but the company did encounter difficulties.
Dong Yudong said that although there are advantages in the industrial chain behind the Euler brand, this car still brings huge losses to the company. Taking black cat as an example, after the sharp rise in raw material prices in 2022, the single loss of black cat exceeded 10,000 yuan.
Dong Yudong said that it is helpless to stop receiving orders, in the absence of core and less electricity environment, black and white cats waiting for the delivery of orders to users cumulatively exceeded 20,000 units, according to the current production volume, if you continue to receive orders, the delivery of new orders will wait until the second half of 2022. In the following time, the company will actively seek raw materials, strive for the maximum resources, and quickly realize the delivery of existing orders.
In addition, Dong Yudong promised the owner that all the after-sales services of black and white cats will continue to be maintained and will not be affected by the cessation of orders.
Suspected of making way for new products
According to public information, Euler is a new energy brand under Great Wall Motors. Euler currently has models such as good cat GT, good cat, white cat and black cat.
From the perspective of price, the price of Euler black cat and white cat is lower, and the price after comprehensive subsidies is less than 100,000 yuan, and the good cat is the largest model under Euler, with a price of more than 100,000 yuan.
From the sales point of view, the black cat is the main sales model of Euler, and public data shows that the cumulative sales of Euler cars in 2021 reached 135,000 units, an increase of 140% year-on-year. Among them, the cumulative sales of black cats reached 63,000 units.
It is reported that the cumulative sales of Euler black and white cats after listing reached 173,000 units, and won the single product sales crown many times in the A00 market of more than 50,000 yuan.
However, despite being a best-selling model, the loss-making business could not be done, and the huge loss made the company finally choose to press the pause button.
However, it is worth noting that in the past, Euler brand executives publicly stated in an interview that in the future, Euler brand will mainly focus on products in the market of 100,000 to 200,000 yuan, and will attack the price range of more than 200,000 yuan. Therefore, after the news that Euler black and white cats stopped taking orders came out, some insiders believed that this move was to make way for new products, and it is reported that Euler will also launch ballet cats, punk cats, lightning cats and other products in 2022.
In addition, another hot-selling model, good cat, although it was controversial due to the "core change door" in November last year, but from the current sales point of view, it is still a hot product of the company.
According to Euler's car sales data, 13,229 units were sold in January, up 29% year-on-year; of that, good cats sold 9,020 units in January, up 333% year-on-year. In 2021, the cumulative sales volume of Euler Good Cats was 50,931.
Car companies have reduced production and allocation
The shortage of chips and the rise in raw material prices are not only encountered by Euler's brand. Since the beginning of 2022, the global lack of cores has also continued to spread.
According to CCTV financial reports, due to the continuous shortage of car chips, the original tens of yuan of chips have even been speculated to thousands of yuan. But despite this, uncertainty has become the most common word in the entire market. The price of the chip is uncertain, the supply of chips is uncertain, and the delivery time after ordering is also uncertain.
In the face of the problem of lack of cores, major car companies have also taken measures such as reducing production and allocation, stopping single prices and increasing prices to cope. For example, some BMW models announced the cancellation of the automatic trunk function, Audi only provided a remote control key until the production capacity was restored and reissued, and some Tesla models were also reduced... Including Tesla, Weilai, Xiaopeng, GAC Aean and other car companies have raised prices to varying degrees.
According to the latest data from AutoForecast Solutions, a data forecasting company for the automotive industry, as of February 20, the cumulative production reduction in the global automotive market this year was about 577,900 units due to chip shortages. Among them, the cumulative production reduction in China's automobile market remained unchanged, about 51,100 units, accounting for 9% of the cumulative production reduction in the global automobile market. Volkswagen's Wolfsburg plant is the world's largest reduction in vehicle production, almost equivalent to the cumulative reduction in the rest of Asia.
Although the chip shortage problem continues to spread, many car companies still believe that the problem will be improved in the second half of this year.
As Volkswagen CEO Herbert Diess said, Volkswagen has introduced a chip early warning system, and Volkswagen engineers have identified about 150 technical alternatives to replace the shortage of semiconductors. Porsche China CEO Yan Boyu also recently said that he hopes to find a solution to the chip shortage in the second half of this year.
On the other hand, with the recent full launch of the "East Number West Calculation" project and the continuous development of domestic substitution, industry insiders have also pointed out that it will bring new opportunities to the semiconductor industry and will promote the further development of the chip industry chain.
EDIT: Captain