Liao Bing, the CEO of GAC Nio, a joint venture between GAC Group and Nio, announced his impending departure at a staff meeting on January 7, jiemian.com said, citing insiders close to the company.
Liao will rejoin GAC Group after the completion of GAC Nio's latest strategic financing, the report said.
Liao previously worked in R&D, quality, strategy, and management at GAC Honda, GAC Parts, GAC Fiat Chrysler, and GAC Research Institute, and was assistant director of GAC Research Institute before founding GAC Nio.
GAC Nio was established on April 10, 2018, with GAC Group and GAC New Energy each holding 22.5% of shares, Nio and Nio Fund each holding 22.5%, and the remaining 10% of shares held by the founding team.
Can GAC Nio change its fate after receiving $370 million capital increase?
GAC Group announced on January 5 that it agreed to increase the capital of GAC Nio by introducing strategic investors, totaling approximately 2.405 billion yuan ($370 million).
GAC Group, through its wholly-owned subsidiary GAC Aion, has increased its capital to GAC Nio by approximately RMB 482 million, and Guangdong Zhujiang Investment Smart Technology Investment Company Limited has increased its capital as a strategic investor by approximately RMB 1.923 billion.
After the completion of the capital increase, GAC Group and its wholly-owned subsidiary GAC Aion hold a total of 25% equity interest in GAC Nio.
Before receiving this financing, GAC Nio's financing progress was stuck in the angel round.
In 2019, GAC Nio launched its first product, the HYCAN 007, which was launched with the expectation of "15,000 units by 2020". However, when it began deliveries, GAC Nio lowered its forecast to 5,000 to 10,000 units.
GAC Nio reportedly to bring in Beijing govt investment, company HQ may relocate to Beijing
In the first 11 months of 2020, HYCAN 007's accumulated sales were only 631 units, including only 3 units in November 2020.
In August 2020, Liao promised in a keynote speech that GAC Nio hardware consolidated net profit margin would be no more than 1%, and any excess would be returned to customers.
In December 2020, GAC Nio apologized to the public for the "car purchase with bitcoin", and Nio clarified their relationship at the time, stating that GAC Nio is an independently operated company jointly invested by GAC and Nio and that neither GAC nor Nio has any management staff assigned to the company.
GAC Nio is the name of the company and the product brand is HYCAN, which will not produce products of GAC or Nio. In short, Nio is just an investor, and there is no other relationship between the two parties, according to Nio.
GAC Nio says it becomes first automaker in China to accept payments in Bitcoin, then deletes post
More From CnEVPost
