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Receives fresh capital: Nio founder and CEO William Li
Photo: TOBIAS SCHWARZ / AFP
Abu Dhabi-based investment holding company CYVN is pumping billions into Nio, making it the largest shareholder in the Chinese electric car manufacturer. With the $2.2 billion investment, CYVN will have 20.1 percent of Nio's shares, making it the largest single shareholder, the company announced on Monday.
Back in July, the investment vehicle from the United Arab Emirates had invested $1 billion in Nio. Thanks to their shares, the holding company will be able to nominate two directors to the carmaker's board of directors. However, founder and CEO William Li will retain most of the voting rights. The agreement on the financial injection is expected to be finalised in the last week of December.
Most recently, the loss-making Chinese electric carmaker cut 10 percent of its jobs and cut back on investments. Due to growing competition, the company needs to increase efficiency and reduce costs, Nio announced at the beginning of November.
Nio: False start in Europe
Manager Magazin had reported on the carmaker's false start in Europe. The sales figures have been modest so far, the market share of less than 0.1 percent is one of the weakest values, even among the generally still struggling attackers from China.
Nio is also under pressure in China. Demand for electric cars has weakened as consumers prefer cheaper plug-in hybrids. At the same time, the price war instigated by Tesla is taking its toll on carmakers in the highly competitive market.
spa/Reuters