GAC NIO will reportedly change to new name that does not include 'NIO'
GAC NIO, a joint venture between GAC and NIO, will soon change its name and will likely not include the word "NIO," according to yicai.com.
GAC NIO is applying to regulators for the change, which is expected to be completed in April, the report said.
Although GAC NIO has not yet officially changed its name, the company is using the brand name "Hycan" for external communications, and the word "NIO" will likely no longer appear in the company's new name, the report said.
The new CEO of GAC NIO, Ying Yang, recently said that the company will have a series of new moves, and the new model for the Generation Z users is expected to be released at the Shanghai Auto Show in April.
William Li, founder, chairman, and CEO of NIO, said in an interview with yicai.com that it is normal for GAC NIO to change its name soon because it has the "Hycan" brand and a new investor.
Of course, NIO will continue to support GAC NIO, and there is nothing more to consider, he said.
Last month, Li stepped down as GAC NIO's legal representative and was succeeded by Li Zhihong.
Hubei Changjiang NIO New Energy Industrial Development Fund Partnership withdrew as a shareholder and added a new shareholder, Guangdong Pearl River Investment Management Co. Group Co., Ltd.
GAC NIO was established on April 10, 2018, with GAC Group and GAC New Energy each holding 22.5%, NIO and NIO Fund each holding 22.5%, and the remaining 10% of shares held by the founding team.
GAC Group announced on January 5 that it has agreed to increase the capital of GAC NIO by introducing strategic investors, totaling approximately RMB 2.405 billion ($3.7 million).
GAC Group, through its wholly-owned subsidiary GAC Aion, has increased its capital to GAC NIO by approximately RMB 482 million, while Guangdong Pearl River Investment Management Group Co.
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.
Prior to 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, and at the time of launch, GAC NIO expected sales to reach "15,000 units by 2020". However, when it began deliveries, GAC NIO lowered its forecast to 5,000 to 10,000 units.
In the first 11 months of 2020, the cumulative sales of HYCAN 007 were only 631 units, of which only 3 units were sold in November 2020.
On January 25 this year, GAC NIO CEO Liao Bing announced his resignation as CEO.