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Why is Xiaopeng in a hurry after multiple organizational restructuring?

Publish Date: 2024.01.23

  Recently, it was reported that Wang Fengying led the promotion of a new round of organizational restructuring for Xiaopeng Motors.

  

  It is worth noting that this is not the first time Xiaopeng Motors has exposed an organizational restructuring.

  

  After almost half a year, and at the beginning of 2024, there were once again rumors of organizational restructuring. What is the different significance for Xiaopeng Motors?

  

  Tasting the sweetness of organizational restructuring: Saving sales

  

  In 2022, poor sales of complete vehicle products were a problem that Xiaopeng Motors was very troubled by.

  

  At that time, He Xiaopeng once pinned his hopes on the G9, even calling it "the best SUV under 500000 yuan.".

  

  However, the launch of the Xiaopeng G9 was not successful, and once it was launched, it faced a "Waterloo". It was considered "insincere", "extremely unreasonable in terms of configuration and pricing", and even many potential car owners chose to unsubscribe directly. There were constant voices of questioning in the industry.

  

  This incident has dealt a significant blow to Xiaopeng Motors,

  

  In October 2022, Xiaopeng Automobile launched the largest organizational structure and personnel adjustment since its establishment, establishing five committees: Product, Strategy, Technology, Sales, and OTA, as well as three platform product matrices: E, F, and H. To promote collaboration among various functions such as marketing, customer service, communication, sales, training, and sales management, with He Xiaopeng personally serving as the Director of the Product and Strategy Committee.

  

  In addition, at the beginning of 2023, He Xiaopeng invited former General Manager of Great Wall Motors, Wang Fengying, to join Xiaopeng Motors as the President, fully responsible for Xiaopeng Motors' product planning, product matrix, and sales system.

  Afterwards, the organizational structure of Xiaopeng Motors gradually changed: the management team that left Xiaopeng Motors included two vice presidents of marketing, Li Pengcheng and Yi Han, the head of user service and development center, Liao Qinghong, the head of powertrain, Liu Minghui, the vice president of autonomous driving, Wu Xinzhou, the vice president of production and manufacturing, Jiang Ping, and the head of human resources, Chen Dan, among others. The two co founders, Xia Heng and He Tao, have also left their frontline management positions and retired behind the scenes.

  

  After this transformation, Xiaopeng Motors emerged from the cold winter and its sales gradually rebounded.

  

  According to relevant data, from January to December 2023, Xiaopeng Motors delivered a total of 141601 new cars, a year-on-year increase of 17%. As of December 31, 2023, the cumulative delivery volume of Xiaopeng Motors has reached 400311 units, exceeding the milestone of 400000 deliveries.

  

  He Xiaopeng once said of Xiaopeng Motors in 2023: "In 2023, Xiaopeng had a very big crisis, but we persevered.".

  

  The fact is indeed so. But the year 2024, which has already arrived, is by no means a smooth path.

  

  Challenges still exist: more agile and efficient teams, lower production and operational costs

  

  On the first day of 2024, Xiaopeng Motors urgently launched a new car - X9, priced at 359800-419800 yuan, with standard rear wheel steering, Qualcomm Snapdragon 8295 chip, and 800V architecture.

  

  Among them, the price difference between the MAX long endurance version and the regular long endurance version is 20000 yuan. As a comparison, the price difference between the Ideal Intelligent Driving version and the regular version is 30000 yuan.

  

  Previously, it was reported that Xiaopeng Motors had planned to raise the pricing of the X9 to over 400000 yuan in order to improve Xiaopeng's gross profit performance. However, the fact is that the starting price of the Xiaopeng X9 has reached 350000 yuan, and the related configurations fully demonstrate the "hard power" of this intelligent car company.

  Sure enough, the Xiaopeng X9 lived up to expectations.

  

  The day before its launch, Xiaopeng Automobile announced on its official WeChat account that the pre-sale orders for Xiaopeng X9 exceeded 30000 units, and after its launch, the orders immediately exceeded 5000 units. When the release of X9 lays the foundation for sales, combined with the performance of models such as Xiaopeng G6 and new G9, it is reported that Xiaopeng plans to achieve a target of over 280000 vehicles by 2024.

  

  However, it is worth noting that in 2023, the sales of Xiaopeng Motors have gradually become popular, and behind this, there is still the credit for "exchanging price for quantity". And in December 2023, Xiaopeng Motors has already lowered prices on three models under its umbrella, including P7, G9, and G6.

  

  However, low prices are clearly not sustainable. The reaction of capital to Xiaopeng's stock price also reveals market concerns.

  

  On December 15, 2023 (local time), the US Securities and Exchange Commission announced that Alibaba subsidiary Taobao China Holdings Co., Ltd. plans to sell 25 million shares of Xiaopeng Motors ADR (American Depositary Shares), with a total value of approximately $391 million (approximately RMB 2.8 billion), a decrease from 10.2% to 7.5%.

  

  On the evening of the news, the US stock market of Xiaopeng Motors plummeted by 7.54%; On December 18th, its Hong Kong stock market also plummeted by over 7%. As of the close of the day, it fell 6.66% and closed at HKD 55.35.

  

  In order to boost market confidence, quickly seize the market with low-priced promotions to gain more time, improve capital utilization, and achieve a faster positive gross profit margin, Xiaopeng Motors urgently needs lower operating and production costs, as well as a more efficient operational team.

  

  It is reported that Xiaopeng Motors plans to achieve a BOM (Bill of Materials) cost reduction of over 50% for autonomous driving by 2024, and a 25% reduction in the power and hardware system costs of the entire vehicle. A higher sales volume and cost reduction ability outline a clearer performance for Xiaopeng.

  

  At least two insiders revealed that this adjustment involves multiple departments such as marketing, human resources, intelligent data, production and manufacturing, and product planning.

  

  The specific changes are: Huang Ronghai, the former head of the Data Intelligence Center (DIC), is in charge of the Human Resources department, while Chen Dan, the former head of the Human Resources department, has resigned from Xiaopeng Motors; Former General Manager of Great Wall Motors, Zhang Li, joined Xiaopeng Motors a few months ago, responsible for production and manufacturing, replacing retired Jiang Ping; Jiang Ziyang, who previously served as a senior consultant for positioning consulting at Reese Strategy, joined Xiaopeng Motors to be responsible for product planning, which was previously handled by Wu Meng.

  

  Obviously, Xiaopeng Motors' determination to change is becoming increasingly firm. In mid-2024, perhaps we will see Xiaopeng Motors moving forward more steadily

  

  This article is reprinted from Gaishi Automotive Information Network


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