Nio’s Onvo accused of “forcing” employees to purchase L60, VP responds
Recent reports about Onvo‘s internal sales policies have drawn widespread attention in China. Leaked chat records suggest that a store in Wenzhou required employees to purchase the L60 SUV (see specs). If non-compliant, employees may face potential dismissal, allegedly.
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According to the leaked screenshots, Onvo offered employees a zero-down-payment for purchasing vehicles, a 20,000 yuan (2,730 USD) discount, and an additional 6,000 yuan (820 USD) reduction if the car was used for test drives. Furthermore, the company reportedly promised to buy back these vehicles at 75% of the purchase price after six months, although this commitment lacked formal contractual backing.
In response, Onvo Vice President Qing Hua clarified the situation. He acknowledged that the issue stemmed from the inappropriate communication style of a store manager in Wenzhou, who had been reprimanded for their blunt approach. Qing Hua emphasized that while the company encourages employees to drive Onvo vehicles for better familiarity and credibility when engaging with customers, participation in such programs is voluntary.
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Onvo offers employee purchase incentives, including a significant discount exceeding 20,000 yuan. However, Qing Hua admitted that the Wenzhou store manager’s delivery of this message was overly forceful, leading to misunderstandings and dissatisfaction among staff.
The controversy has sparked broader discussions about the company’s sales strategies and employee benefits. Chinese netizens criticized the policy, arguing that the promised buyback terms could still result in substantial employee financial losses. For instance, an Onvo L60 priced at 220,000 yuan (30,000 USD) might leave an employee incurring a loss of 50,000 yuan (6,820 USD) after six months, even with the buyback arrangement.
Onvo, a secondary brand under Nio, targets the family vehicle market, with the L60 prices ranging between 150,000 and 300,000 yuan (20,500 to 41,000 USD). L60, the brand’s first model, has grown rapidly, with over 10,000 units delivered in December alone following its September 19 launch. Despite Onvo’s success, Nio’s overall financial performance remains under pressure, with a Q3 2024 loss of 4.4 billion yuan (just over 600 million USD) and a profit margin of just 10.7%.
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Onvo has pledged to strengthen internal management to prevent similar incidents and improve communication with employees.
