The Guangzhou Auto Show was recently in full swing, with the Hongmeng Intelligent Driving booth drawing a large crowd eager to hear Yu Chengdong speak. Chery Chairman Yin Tongyue also visited the booth to support the LUXEED S7 and LUXEED R7 models. This marked the second appearance of the modified LUXEED S7, now featuring many new upgrades compared to the previous version. Chairman Yin noted that the LUXEED R7 has exceeded expectations since its launch and assured everyone that delivery would not be an issue, encouraging confident order placements.
The host seized the opportunity to mention on stage that the LUXEED S7 initially did not perform as well. Chairman Yin candidly responded, acknowledging that Chery had been dragging its feet, attributing the challenges to three key reasons:
Inadequate Production Preparation
Chery Automobile, currently experiencing strong demand for its own brands, is the leading exporter of automobiles in China. In October, Chery sold 272,000 vehicles, a year-on-year increase of 35.9%, with 122,000 units exported, marking an 18.8% year-on-year growth. This busy schedule left Chery stretched thin, prioritizing its own brands and relocating production facilities. Consequently, production preparation for the LUXEED S7 was insufficient, leading to delayed deliveries. Many customers canceled their orders and opted for other brands. Chairman Yin has now committed to working overtime and reallocating Chery's production capacity to ensure LUXEED deliveries, demonstrating his full support for LUXEED.
Adapting to Huawei's Stringent Requirements
Chairman Yin explained that Huawei's quality standards are far more rigorous than Chery's, leaving Chery's team unaccustomed and unmotivated under such strict requirements. This created inefficiencies and disrupted collaboration, slowing project progress and limiting the number of finished vehicles delivered. As a result, consumer patience dwindled, leading to canceled orders and reduced confidence among potential buyers.
Supply Chain Adjustment to Huawei Standards
According to Chairman Yin, many luxury car parts suppliers struggled to meet Huawei's high-quality benchmarks. The LUXEED series has set a new standard of excellence, imposing extremely strict quality demands that require suppliers to undergo significant improvements. This adaptation process takes time, delaying production and deliveries.
Chairman Yin's remarks highlighted Chery's dedication to overcoming these challenges and strengthening its partnership with Huawei to elevate the LUXEED brand.