XPeng Announces Full Organizational Restructuring by Investing.com

© Reuters.

By Michael Elkin

He Xiaopeng, chairman and CEO of Xpeng (NYSE:), sent an email to employees on Friday announcing that the electric vehicle company would undergo a comprehensive organizational restructuring.

The CEO recently chaired executive meetings for several days, brainstorming and discussing key issues such as business operations, organizational structure and product strategy and decided to set up a virtual committee organization consisting of five committees. The purpose of this organization will be to open up communication channels for the company’s various businesses and to improve the effectiveness of collaboration.

According to Chinese media site 36Kr, Xiaopeng will oversee three of the five committees (corporate strategy, product planning and technology roadmap).

According to a person familiar with the matter, the trigger for this adjustment was the listing of XPeng’s new G9. Consumers complained about naming complexity, the gap between product planning and user needs, and marketing failure.

According to official data, in August and September 2022, XPeng delivered 9,578 vehicles and 8,468 vehicles respectively. 5,745 and 4,634 P7s were delivered during the same period. XPeng shipping volume was down month-over-month in August and year-over-year in September.

Shares of XPEV were down 9.84% in early trading Monday.

Aubrey L. Morgan