On the evening of February 14, Great Wall Motor dealers said that they received a notice that from 00:00 on the 15th, Great Wall manufacturers stopped receiving orders for two low-priced models of Euler Black Cat and White Cat. At the same time, Great Wall Motors also asked dealers to remove the exhibition cars and promotional materials from the exhibition hall. The next day, Euler Automobile confirmed the rumor to the media, and the relevant person in charge responded: "These two models have indeed been discontinued."
Yesterday evening, Euler Automobile CEO Dong Yudong issued a note on the Euler Automobile APP, further explaining the reason for stopping orders, he said: "Black and white cats stop taking orders, not suspension of production", but admitted that they did encounter difficulties.
The difficulty he said refers to the low profit of the model, Euler black cat, white cat is an electric fashion car of less than 100,000 yuan of Euler brand, the guidance price of Euler black cat is 698-848 thousand yuan, and the guidance price of white cat is 7.18-8.88 million yuan. From launch to completion, the two models sold a total of 173,000 units. In 2021, Euler sold 135,000 vehicles, an increase of 140% year-on-year, of which the annual sales of good cats were 50,900 units, the sales of black cats were 66,300 units, and by January this year, the two models of black and white cats sold a total of about 4,209 units in January. Precisely because of the price of the product, Dong Yudong said that the two models of Euler Automobile have brought huge losses to the company, and taking the black cat as an example, he said that the price of raw materials has risen sharply in 2022, and the loss of each one sold is as high as 10,000 yuan, and there is a situation of more and more losses when selling. On the other hand, Euler Automobile has more than 20,000 units of pending delivery orders, and in the absence of chips, the delivery time for continuing to take new orders will be postponed until the end of the year. He stressed that the after-sales of Euler black cats and white cats will not be affected by this.
The explanation made yesterday is somewhat different from the explanation given to netizens on the official Weibo of Euler Automobile on February 15. When asked why the user stopped taking orders, Euler Automobile responded on Weibo: due to the shortage of chips, spare parts supply can not guarantee production and many other reasons, resulting in a large backlog of black and white cat models, customer car purchase cycle is too long, affecting the customer experience, in order to avoid trusting the owner of Euler models to bring more bad car buying feelings, manufacturers will coordinate internal resources to meet the existing order scheduling plan faster, to ensure that existing order customers pick up speed and car purchase benefits. In this reply, only the reasons for the shortage of chips and the supply of spare parts are mentioned.
There are also car buyers who directly ask the dealer's sales about the reason for the suspension of production, and the sales answer is obviously much more direct: the manufacturer's profit is too low. This is also the first reason when Dong Yudong explained it in yesterday's explanation. Euler Automobile has also begun to advise consumers to abandon black cats and white cats and choose other models, which will also become the standard words for Euler Automobile sales.
According to Great Wall Motor's plan, it will achieve global sales of 4 million vehicles by 2025, of which 80% will be new energy vehicles. Euler is the only hope before the other brands of the Great Wall are transferred, and Good Cat is the only brand currently on sale in the Euler cat series, even the sudden burst of false news of the chip in November last year has not affected its sales performance.
In July 2021, Yu Fei, general manager of Euler brand marketing, said in an interview with the media: "In the future, the Euler brand will mainly focus on products in the market of 100,000-200,000 yuan, and at the same time will attack the price range of more than 200,000 yuan. According to the automotive industry's attention to the previously acquired Euler Automobile 2022 product planning, Euler Automobile will launch four new models in 2022, including ballet cats, lightning cats, punk cats and cherry cats, of which ballet cats are expected to be listed in March, with a price range of 150,000-200,000 yuan, lightning cats are listed in the second quarter of this year, and are expected to be priced at about 200,000 yuan, while punk cats are more high-end, and the price may come to 200,000-250,000 yuan. In addition, Cherry Cat will also be listed next year, but the main overseas market, domestic may also be listed.
Dong Yudong's explanation confirmed the previous rumors that the reason why Euler Automobile really stopped production was because of insufficient profits, and the suspension of production was to make way for higher-priced models. According to some users who have already booked cars, they have only gotten new cars in the last two weeks, and they are the vehicles they ordered last October. This means that their cars have not yet begun to be on the road, have been officially announced to stop production, or according to the recent statement of Euler Automobile CEO Dong Yudong, it is a model that has stopped receiving orders, and they have bought a discontinued model and a model that has stopped receiving orders, as if the latter statement does not sound as harsh as the former.
Before Euler Automobile suddenly announced that it would stop taking orders, many customers ordered the above two models as usual. Euler automobile on the one hand for the new model in the promotion and preparation for the listing, from the chip resources for other models tilt is not black cat white cat, obviously the shortage of core power will not affect the new model of Euler's new model of the listing rhythm; black cat, white cat to restore supply, means that the price of raw materials to fall to the level of profit expected by Euler good cat, resources and profits of the problem is obviously impossible to solve the problem. In dealing with the problem of product iteration, most brands use the way of launching products from high to low, and Euler is currently using a gradual upward improvement of product positioning. Dong Yudong said in the note that he will actively coordinate the resources of all parties and do his best to solve the problem quickly, more in order to appease the recent order users, unless the price range of the new model seriously affects the market and subsequent development of Euler Automobile, what will be the motivation and reason for Euler to solve this problem?
WeChat public number: used car wisdom Pan Pan (id: carman228)
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