Li Auto has dismissed multiple employees after internal investigations linked staff failures to a major recall of its Li Mega multi-purpose vehicle and a separate quality problem affecting its L-series extended-range electric vehicles. The accountability measures, disclosed in two internal memos on Tuesday, involved disciplinary actions against 14 individuals, according to local media including 21jingji and Sina Tech.
The actions follow an October 23 incident in which a Li Mega caught fire within seconds after sparks were seen beneath the chassis at a traffic intersection.
See also: Li Auto Restructures Again After Sales Slump, Merges HR Units Under CEO Li Xiang
The case reignited concerns over safety and led to widespread public attention. Li Auto subsequently announced a recall of 11,411 units of the 2024 Li Mega — roughly half of all units sold — citing risks of battery fires caused by coolant leakage.
Analysts at China Renaissance Securities estimated earlier this month that replacing components associated with the recall could cost around RMB 100,000 per vehicle, potentially reducing the company’s profits by approximately RMB 1.14 billion. They warned that the recall’s negative impact could extend into the fourth quarter of 2025 and the first quarter of 2026.
See also: Li Auto Investigates Fire After Li Mega Electric MPV Burns Down in Shanghai
Li Auto said in its memo that employees involved in coolant validation, battery testing and quality safety had been dismissed, and several team leaders had their year-end bonuses and promotion opportunities revoked. “This has significantly impacted the company’s reputation for product quality and safety,” the memo said.
The company also dismissed staff in connection with another issue involving abnormal front-wheel noises reported by owners of its 2025 Li L6, Li L7, Li L8 and Li L9 models. The defect emerged shortly after vehicle deliveries and prompted part replacements without compensation, fuelling consumer dissatisfaction, according to 21jingji.
