Nio has merged operations of its sub-brands Onvo and Firefly into core company departments as part of a broader effort to streamline operations and reduce costs, local media outlet 36kr reported on Friday.
The restructuring focuses heavily on Onvo, whose product development, marketing, and user services are now integrated directly into Nio’s main organizational clusters. Onvo’s product development team will become a new tier-one department under Nio’s product design and development cluster, reporting directly to founder and CEO William Li. A new Onvo product line division has also been created within this structure, the report said.
In parallel, Onvo’s user service departments have been placed under a new tier-one group headed by Shen Fei, reporting to Nio President Qin Lihong. These include planning, regional sales strategy, and operational functions. Onvo’s regional sales teams and marketing campaign operations will now be part of Nio’s user services cluster as a second-tier department.
“This is like merging the sales of the Nio and Onvo brands,” a Nio employee was quoted as saying by 36kr.
The Firefly business unit has also been folded into Nio’s product development cluster, though fewer details were provided. The changes effectively dismantle the formerly independent Onvo and Firefly business units.
Onvo was launched in May 2024, with its first model, the L60, entering the market in September. Following weaker-than-expected performance and the recent resignation of Onvo president Alan Ai, his successor, Shen Fei, is now overseeing the brand’s integration and operations.
Nio is also tightening compensation policies, converting more than 20% of monthly salaries for senior staff (P4 level and above) into equity incentives, according to the report.
Local media also reported last week that sales responsibilities for Nio and Onvo have already been merged in several cities. These organizational shifts are part of Nio’s broader aim to improve cost controls and achieve a single-quarter profit by the fourth quarter of 2025. On a March 21 earnings call, CEO William Li said improvements in financial performance should begin showing from the second quarter onward.