Written by Cláudio Afonso | LinkedIn | X
William Li, founder and CEO of EV maker Nio, urged employees in an internal meeting last Friday to “quickly abandon inertia, enhance business awareness, and meet operational goals”, local media outlet 21st Century Business Herald reported.
“We must spend our money and time wisely within the boundaries of our available resources if we hope to turn things around,” Li said, according to the report. He emphasized that Nio’s resources “are limited” and called for clear prioritization.
Addressing the issue of high-efficiency projects versus those with low returns due to poor oversight, Li stated that going forward, no project would move forward without a clear financial justification. “Even if I approve a project, if the numbers don’t add up, we won’t proceed,” he declared.
His remarks follow reports from Chinese media outlet 36Kr last week that Nio is implementing a new operational framework, the Cell Business Unit (CBU) mechanism, shifting from a budget-driven model to a performance-oriented structure.
Li acknowledged that in the past, the company had relied more on subjective judgment but said that “now everything will be managed through the CBU system.”
Under the new structure, departments must calculate return on investment (ROI), manage individual budgets, and be accountable for financial performance, 36Kr reported, citing sources familiar with the matter.
Addressing concerns that the CBU system could become a bureaucratic exercise, Li dismissed the notion. “CBU is not a temporary initiative to appease management—it’s a long-term self-rescue strategy,” he said, stressing the importance of accountability and oversight.
Starting next month, Nio plans to launch several new models, including refreshed versions under its main brand and two SUVs under its first sub-brand, Onvo, as well as a compact EV from its Firefly brand.
Li stated that while Nio had set a strong vision and clear strategic direction, it had fallen behind competitors in key operational areas, including execution, efficiency, cost control, and lean management.
“Many companies have managed these aspects far better than we have, and we must learn from the best in the industry,” he said.
To meet its 2024 sales target, Nio must deliver nearly 413,000 vehicles over the next ten months—an average of 41,300 per month. The company set a new monthly record in December with over 31,000 EVs delivered.
EV learned recently that Nio has integrated the delivery channels of its main brand and sub-brand Onvo amid its cost cutting measures.
For March, the company mentioned in late 2024 that it aimed to reach a production capacity of 20,000 units. Between March 3 and 9, Onvo registered 1,100 units of its model L60.
Nio delivered 9,143 electric vehicles under its main brand last month. While figures of the main brand increased 12.4% from the 8,132 units registered a year ago, its sub-brand Onvo saw its deliveries falling 31.5% to 4,049 units.
Nio Group deliveries increased 62% year over year to 13,192 vehicles.
