A leaked memo from XPeng Motors, a Chinese intelligent electric vehicle company, shows that the company is still continuing its organizational structure adjustment. A new financial platform was recently set up within the firm, aiming at improving cost controls and the compliance ability of the financial system. At least two insiders of the company have confirmed the authenticity of this memorandum, according to a report by Chinese media outlet Powerhouse on December 27.
According to the leaked memo, XPeng‘s newly established financial platform includes the financial BP (business partner) department, platform finance department, comprehensive financial division, tax management division, fund management division and special project division. Under the financial BP department, BP divisions have been set up for each business center.
For the newly established financial platform, XPeng entrusts it with the function of assisting the company and business centers in formulating, decomposing, implementing control and improving business plans, improving the company’s cost and expense control and meeting the requirements of external supervision.
In this round of structural adjustment, no personnel appointments have been shown. “But given the previous adjustment, the highest reporting personel of the financial platform is basically firm chairman He Xiaopeng,” said a source cited by Powerhouse.
Another source pointed out that the setup of the new financial platform means that He Xiaopeng has begun to withdraw the management authority of the company’s “funds.” “In the past, this authority was in each center. For example, He Tao, a senior vice president at XPeng, is responsible for the supply chain, so he also has the authority to determine the budget of the supply chain business. Firm vice president Chen Yonghai is responsible for the Internet center, so he has the corresponding budget authority.”
XPeng G9, a new car launched by XPeng on September 21, did not perform well and was caught in the whirlpool of public opinion. At the end of October, a profound organizational restructuring began to appear inside the company, and it also began to make some attempts to reduce costs.
On October 21, XPeng announced that it would set up five virtual committee organizations for strategy, production regulation, technical planning, production and marketing balance and OTA, and three product organizations for its E, F and H platforms.
Later, at the earnings call on the third quarter financial report on November 30, the company announced that Henry Xia, co-founder and president, resigned as executive director of the board of directors, but will still serve as president, and will focus on products in the future. CEO He Xiaopeng also said that the company is broadening its organizational change. He will focus more on strategy, product planning and R&D, promote organizational upgrading, and reorganize the brand and marketing teams to continuously enhance brand influence.