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According to a number of media reports, WM Motor, a new Chinese automaker, suffered a financial storm. According to the report, some internal WM Motor employees revealed that since October, WM Motor’s employees’ wages will be paid at a 30% discount, and management’s wages will be paid at a 50% discount. In addition, according to sources close to WM Motor, the company will implement a series of active financial policies including “executives’ voluntary salary reduction by 50%”, in order to successfully survive the cold winter of capital and make new cars in the future. To achieve better performance in the competition of layers. High Quality Custom metal accessories
Previously, the media had revealed that WM Motor held an online conference call for about 20 minutes for all CTOs (all Intelligent Networking Departments). HR notified all employees through the online conference to cancel the year-end bonus, on the grounds that “last year the company’s annual KPIs were not consistent. meet the target”.
It is understood that the WM Motor’s year-end bonus is about 3.5-3.7 months’ salary, which will fluctuate up and down, accounting for 30% of the employee’s annual income; coupled with the 13 salary clearly stipulated in the labor contract, the end of the year could have received 4.5 times. monthly salary bonus. But this time not only the year-end bonus was cancelled, but the 13th salary was also postponed to June this year.
In response to rumors of discounted wages for WM Motor employees, the official has not yet responded. High Quality Custom metal accessories
According to the data, WM Motor was established in December 2015, the same year as Ideal, one year later than Weilai and Xiaopeng. However, unlike “Wei Xiaoli”, Chairman Shen Hui worked for Fiat, Volvo and other car companies before the establishment of WM Motor. His previous position was vice president of Geely Holding Group. It can be said that he has accumulated a lot of experience in the automotive field. According to Tianyancha, since its establishment, WM Motor has raised 12 rounds of financing, with a cumulative financing of over 35 billion yuan, including SAIC, Sequoia China, and Baidu. In January 2018, WM Motor acquired Zhongshun Automobile Holdings Co., Ltd. and obtained the production qualification. In September 2018, WM Motor’s first mass-produced car, the EX5, was officially launched, with a price of 146,800-198,800 yuan, positioning it as a compact pure electric SUV.
In 2019, WM Motor delivered a total of 16,900 new cars, ranking second in the sales volume of new power car companies, second only to Weilai. At the beginning of 2020, when Wang Xing expressed his optimism about the ideal car, Shen Hui shouted “WM Motor will definitely be one of the Top 3”. However, after that, WM Motor’s sales began to decline. In addition to being overtaken by Xiaopeng and Ideal, it was also overtaken by second-tier new power brands such as Nezha and Leapmotor. Taking the first half of the year as an example, in the first half of 2022, Weimar delivered a total of 21,700 vehicles, while Xiaopeng, Nezha, Ideal and Weilai delivered 69,000, 63,100, 60,400 and 50,800 vehicles respectively. High Quality Custom metal accessories
The decline of Weimar is related to its positioning. At the beginning of its establishment, Shen Hui positioned WM Motor as “the Volkswagen of the electric vehicle version”, focusing on the mid-to-low-end market of 100,000-200,000 yuan. However, the story of Volkswagen electric vehicles is not easy to tell. Weimar’s products are neither as high-end as Weilai nor low-end like Nezha and Leapmotor, but just stuck in the price range of 100,000-200,000 yuan. And this price range is still dominated by fuel vehicle consumption. Even the sales of G3 models under Xiaopeng Motors are average. Most pure electric models are difficult to achieve excellent results in this price range. Of course, Weimar also realized this, and subsequently launched the Weimar EX6. The price of a bicycle is close to 300,000 yuan, but this model has not been recognized by consumers.
In addition to product positioning, product quality is also a key factor affecting its market performance. In October 2020, there were a number of vehicle fire incidents that occurred in WM Motor. Since then, WM Motor had to recall 1,282 problem vehicles. After entering 2021, WM Motor was often exposed to vehicle fire accidents, and was even named by CCTV, but WM Motor rarely responded to fire accidents. Later, WM Motor suspected to reduce the occurrence of fire accidents by “locking electricity”, causing market disputes. However, the official has never responded directly to the relevant problems, and refused to give a solution.
Losses continued to deepen due to poor sales. According to the prospectus, the total revenue of WM Motor from 2019 to 2021 was 1.762 billion yuan, 2.671 billion yuan, and 4.773 billion yuan, respectively, and the adjusted net profit was -4.04 billion yuan, -4.225 billion yuan, and -5.363 billion yuan, respectively. Yuan, the sum of three-year losses is nearly double the total operating sum. In addition, the three-year gross profit margins of WM Motor were -58.3%, -43.5% and -41.1% respectively. High Quality Custom metal accessories
As of the end of 2021, Weimar’s interest-bearing liabilities are close to 10 billion yuan, and the cash on hand is only 4.156 billion yuan. At present, the financing scale of WM Motor is not considerable. At this stage, it is facing a series of life and death problems such as tight cash flow, weak hematopoietic ability, and serious blood loss, and listing in Hong Kong seems to be WM Motor’s only survival channel.
It is worth noting that under the background of sluggish sales and huge losses, the salary of Weimar Chairman Shen Hui will be as high as 1.26 billion yuan in 2021. In addition, the total salary paid by WM Motor to the main management team is 1.75 billion yuan, and the salary of Shen Hui alone accounts for 72% of the salary of the main management team. In response to the news, Weimar Shenhui also posted in a circle of friends, saying, “Some things, you can tell the truth or falsehood by thinking about it with your toes. It’s not worth the time to explain, let’s just tell the facts.”
It is understood that the current annual salary of Shen Hui is composed of two parts: ordinary salary and restricted shares, of which the actual salary is only 2.01 million yuan, and the rest is paid in the form of restricted shares, and this part of the money can only be obtained by Shen Hui after Weimar goes public. Put it in your pocket. In other words, if Weimar’s listing situation is not ideal, Shen Hui will not be able to get this part of the money, and it should not be available now. High Quality Custom metal accessories
In fact, even if WM Motor goes public in Hong Kong successfully, it is difficult to solve the urgent need. Taking Leap Motor as an example, its current monthly delivery volume is basically stable at more than 10,000 units, which is also a good result in the new energy vehicle industry. However, after going public in Hong Kong, Leap Motor’s performance was also surprising, and the stock price plummeted 33.54 on the day of listing. %, the market value evaporated 24 billion overnight, and the stock price has fallen by 59.24% so far. From the perspective of the current market, although new energy vehicles are the future investment direction, after the stock prices of mainstream electric vehicle manufacturers such as Tesla, NIO, Ideal, and Xiaopeng suffered a sharp pullback, the capital market still has no interest in investing in new energy vehicles. It is more cautious, especially for second-tier car manufacturers that mainly sell low-priced products, and Weimar is the same. If it lacks sufficient competitiveness, it may be difficult to obtain financial support from the market.
Of course, as mentioned earlier, listing in Hong Kong is the only way for WM Motor to survive. Before that, Weimar may have to take some measures to reduce its expenses, after all, survival is the most important thing. As early as 2019, Shen Hui, the founder of WM Motor, once said, “WM Motor’s goal is to become the world’s first profitable new car-making force. We hope to run ahead of Tesla and firmly believe that we can do it. Don’t Underestimate WM Motor’s determination to make a profit If you want to achieve profitability, you must show the determination of a strong man to break his arm, reduce unnecessary expenses, and concentrate on the development of new energy vehicles.” However, from the current point of view, WM Motor has not only failed to reach Tesla. Pull ahead, and even walk on the way of life and death fork in the road. High Quality Custom metal accessories