Nio has renamed its units previously known as “Strategic New Businesses,” and has created 16 regional companies for the Onvo unit.
Nio (NYSE: NIO) today announced its latest organizational restructuring involving its businesses including sub-brand Onvo, saying it's necessary for business and organizational development, according to an internal letter seen by CnEVPost.
The electric vehicle (EV) maker has renamed a number of units previously known as “Strategic New Businesses”:
Strategic New Business I was renamed the Onvo division (OV).
Strategic New Business II was renamed Chip Development unit (CD).
Strategic New Business III was renamed the Firefly business unit (FY).
Strategic New Business IV was renamed the Nio Phone business (NP).
In addition to the name changes, Nio's strategic new business cluster remains unchanged in terms of department heads and reporting lines.
The Onvo business unit has set up 16 regional companies, which are positioned as second-tier departments responsible for the promotion of the Onvo brand, channel layout, day-to-day management of stores, and achievement of sales results in the region, according to the letter.
The general managers of Onvo's regional companies all report to Nio's assistant vice president, Xia Qinghua, head of Onvo sales and service.
Local media outlet China Star Market first reported the changes earlier today.
Nio officially launched the Onvo (Ledao in China) sub-brand on May 15 and began pre-sales of the new brand's first model, the L60, at a price of RMB 219,900 ($30,500), which is RMB 30,000 less than the Tesla (NASDAQ: TSLA) Model Y.
The L60 will officially go on sale and begin deliveries in September, Onvo said at the launch event last month.
Onvo's second model, which will be an SUV aimed at larger families, has completed much of its development and will begin deliveries next year, William Li, Nio's founder, chairman, and CEO, told media outlets, including CnEVPost, in a roundtable on May 16.
Onvo will contribute positively to Nio's 'P&L' when it reaches 20,000 monthly sales, William Li says
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