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NIO Li Bin: Own car manufacturing will reduce costs by 10% and adjust unprofitable or non contributing projects

楚一帆
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On December 5th, NIO announced on the Hong Kong Stock Exchange that it had signed a definitive agreement with Anhui Jianghuai Automobile Group Co., Ltd. to acquire certain production equipment and assets. Jianghuai is a major state-owned automobile manufacturer in China, currently co manufacturing all existing models of NIO with NIO. According to these deterministic agreements, the company will acquire production equipment and assets from the first and second advanced manufacturing bases in Jianghuai, with a total price of approximately 3.16 billion yuan excluding taxes.
At the 2023 Q3 financial report conference call held on December 5th, NIO Chairman Li Bin stated that if NIO produces all of its cars themselves, costs will decrease by 10%. Li Bin also stated that NIO will make adjustments to projects that have not been profitable for three years or have not contributed to gross profit growth, such as battery production.
Li Bin also revealed that a new flagship model will be released at the NIO Day on December 23rd. Previously, there were reports in the industry that the car could be named ET9 and positioned in the million level.
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