Just a few hours ago, Euler officially announced the first blockbuster announcement since the beginning of 22 years. Roughly speaking, the sharp rise in the price of raw materials has led to the extreme compression of the profit margin of Euler, which was originally sold on the people-friendly route by small profits, so that it has reached an embarrassing situation where the average station has lost more than 10,000 yuan and has to temporarily stop production.
From the previous Euler insider disclosure, we learned that black cats and white cats have been in a state of loss since their listing, but the previous losses were not large enough to bear, and in 2022, due to problems such as subsidies and chip prices, the loss has reached an unbearable weight. Euler is the first new energy brand to publicly explode and lose money. Focus the inner volume of the new energy industry under multiple crises, including raw material price increases, chip shortages, subsidy declines, etc., in the spotlight. What the outside world does not know is that the first echelon of new energy led by Tesla also grinded out its first sword after more than ten years of continuous loss and burning money and pressure. Other domestic brands such as Weilai and other new forces, and high-end new energy brands represented by Extreme Kr and Lantu, which are independent of traditional car companies, are almost all on the road of capital financing development.
For new energy brands that have branched out of traditional car companies such as Euler, Changan New Energy, Geometric Automobile, BYD and BAIC Jihu, the loss has almost become a forced risk bet. That is, in the big environment, there is still a glimmer of life in doing, and not doing is a PUBG that is difficult to protect. If the subsidy decline is an unavoidable natural fact, then the price increase in the raw material market is even more cruel.
In fact, the author has smelled a strong raw material crisis since the second half of 2021. It can be said that this phenomenon is a significant sequelae brought about by the global COVID-19 epidemic, and can also be seen as an important part of the change of the new world order. The automotive industry is in a state of panic under the haze of lack of cores, and it has evolved from the initial commercial competition to today's more fierce survival war.
In Europe, germany's three big horses - Mercedes-Benz, BMW, Audi released a series of survival strategy measures in extreme environments such as production cuts and vacations at almost the same time. Other established factories are almost going hand in hand, blowing the industry's alarm signal.
At the end of the day, downtime is not one's own business. It's a matter of the entire supply chain. Take the 17-year-old BMW parts outage that led to BMW's suspension of production, when Bosch (BOSCH) supplied BMW with an electronic steering system, one of the important components, the system housing, was purchased from an Italian supplier. Later, the supply problem of this secondary supplier led to Bosch not being able to produce an electronic steering system that matched BMW, which in turn led to the reduction of BMW's corresponding models, or even the suspension of production.
Coincidentally, on March 19, 2021, a fire broke out at Renesas Electronics' Naka plant in Japan, forcing the production line to produce 12-inch automotive chips to stop production. The post-mortem assessment concluded that the main production plant for automotive chips could be restarted in a month. According to the normal procedure, it can return to the normal supply level after 2-3 months.
Prior to this, heavy snow in Texas had already caused NXP, the world's first automotive semiconductor supplier, to lose production for a month, and infineon, the third largest automotive semiconductor, could not get rid of the snow disaster until June. The 21-year-old Renesas Electronics fire has raised the global supply and demand tension of automotive semiconductors to a higher level. Coupled with the loss of control of the new crown overseas, this situation has become a phenomenon.
In such an ecological environment, Euler will naturally not be spared, as a "car brand that loves women more". From the beginning of the design, Euler catered to the public's aesthetic of "cuteness" from various angles, and under the personal supervision of Mr. Emmon Delta, the former chief designer of Porsche, the appearance of the bold retro, accompanied by a circular "cat's eye" headlight group, like a crouched sleeping cat body. Euler's every move is annotating the brand's youthful vitality and "gentleness".
The market response is always the most real, but it also creates Euler's current predicament. Taking Euler black and white cats as an example, these two products have been loved by the majority of users after listing, with cumulative sales reaching 173,000 units of gratifying data, and in the A00 market of more than 50,000 yuan, they have won the single product sales crown many times. In such a living space that just needs needs, Euler's thinking will obviously think more. The only thing that is certain is that after Euler solves the supply chain problem and resumes production and sales, Euler is bound to do a leading brand promotion. Opportunities for mid-to-high-end development are probably the biggest takeaway from this crisis. This is not only beneficial to enhance the value of the brand itself, but also a very important part of raising the user's sense of experience.
For example, Euler's achievements in black and white cats laid the foundation for the possibility of other "colorful cats" to try. Its process is like the transition from black-and-white television to color TV, which is full of unlimited articulation and innovation space. From ballet cats to lightning cats to punk cats and cherry cats that have not yet been released. Euler opened up a new 3.0 gameplay for personalized car selection. At the same time, it will also learn from the consistent practices of other mainstream luxury brands, and absorb the low-cost technology dividends fed back by high-end models to each most basic Euler model, which is an obvious virtuous circle.
In the face of difficulties and the new and vibrant domestic brands of thin profits, the author believes that it is harmless to look at it with a proper tolerance. The rise of a brand has never been inseparable from the support and trust of consumers, in the face of the European and American veteran car companies to stop production and wait to put into one hundred and twenty trust, whether we can also give domestic brands half of the trust and patience, I think this is a topic worth thinking about for everyone. After all, in this era of competing for deer, the emergence of a brand that is born with absolutely independent personality characteristics is absolutely extraordinary, and I am willing to wait and see in the face of the chosen son.