NIO Inc. (NYSE:NIO) shares are trading lower in the premarket session on Tuesday.
The Chinese electric vehicle manufacturer unveiled its most recent organizational reshuffle, which encompasses its various businesses, including the sub-brand Onvo, CnEV Post reported.
The company stated that this move is essential for its business and organizational advancement, the report read, citing an internal letter.
The electric vehicle (EV) manufacturer has rebranded several units formerly identified as “Strategic New Businesses”:
- Strategic New Business I is now referred to as the Onvo division (OV).
- Strategic New Business II has been relabeled as the Chip Development unit (CD).
- Strategic New Business III has undergone a name change to become the Firefly business unit (FY).
- Strategic New Business IV has been transformed into the Nio Phone business (NP).
Recently, NIO reported selling an impressive 20,544 EVs in May. This includes 12,164 premium smart electric SUVs and 8,380 premium smart electric sedans. The May number marked a record total for the Shanghai-based company.
Apart from the alterations in nomenclature, Nio’s strategic new business cluster maintains its existing department heads and reporting structure.
The Onvo business unit has established 16 regional companies designated as second-tier departments. These entities are tasked with advancing the Onvo brand, arranging channel distributions, overseeing daily store operations, and attaining regional sales targets, the report added.
All general managers of Onvo’s regional companies directly report to Xia Qinghua, Nio’s Assistant Vice President and the Head of Onvo Sales and Service, CnEV Post added.
The modifications were initially disclosed by the local media outlet China Star Market.
Nio officially introduced its sub-brand, Onvo (known as Ledao in China), on May 15, commencing pre-sales of its inaugural model, the L60, priced at RMB219,900. This price positions it RMB30,000 below the Tesla, Inc. (NASDAQ:TSLA) Model Y, CnEV Post added.
Price Action: NIO shares are trading lower by 0.37% to $5.32 premarket at last check Tuesday.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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