Is Yuneec on the brink of extinction?

[FreeRangeChicken]

I heard from a friend of a friend, that Yuneec filed for chapter 11. Yet, when I checked our .gov pages, I could not confirm this rumor. From another contact I heard that Yuneec is down to only 100 employees or so. But again, the official Wikipedia page states that they have 1800 employees.

I don't know if any of the rumor's are true. Would be a miracle if for once someone from Yuneec would comment on stories like that or even register in this forum. Does anyone have any reliable information with a source to point to?

I'm running a small business that partly relies on their products. I think 2020 will be big for me and I will have to upgrade my inventory. But now I'm really hesitant. Also because of other threads on this forum, which point out hints and clues, that Yuneec is not doing too well, like this one here. Cancellation of products, no new announcements, the promised RTK upgrade from 2019 was never delivered. It's a shame because I don't want to switch to the competition (bad experiences). But soon I see no other choice...

Perhaps if we collectively gather clues from around the web, we can figure out more?

 

[FreeRangeChicken]

Here's some things I find interesting:
- The Yuneec Youtube channel has not posted anything for over half a year: Yuneec Electric Aviation
- Their twitter account is fairly active, but they mostly post photographs that customers send in: https://twitter.com/YuneecAviation
- On Twitter, they mention that the production was affected by the COVID situation, and now it's apparently up and running again:

https://twitter.com/x/status/1246105561206272000

. However, I can't find an earlier update, where they announce that productions are down.
- Last update of their wikipedia page was in November 2019. Before that there were regular edits of the wikipedia page, almost on a monthly basis: Yuneec International: Revision history - Wikipedia
- According to Business Search - Business Entities - Business Programs | California Secretary of State, Yuneec USA Inc. is alive and well. Last update was in 2018.

 

[Steve Carr]

There is good reason to believe that Yuneec USA is closed and may not reopen. Their other branches in AU, UK and EU are all running and getting inventory. At this time none of us know how this affects warranty service, so it's a waiting game. I have no reason to believe Yuneec will cease operations. They have products under development and continue to supply new equipment and parts to those other countries. I suspect Yuneec will get out of the consumer market and concentrate on the commercial drones. The consumer market is flooded and the number of novice pilots results in warranty claims to be very expensive. Most claims arise from pilot error. Failure to follow the instructions or even read the manual. Those companies who remain in the consumer market have crappy warranties and require the drone to be returned before making a determination on the claim.

 

[DoomMeister]

I have tried calling Inside Sales at Yuneec in California. As soon as the AutoOperaror transfers after selecting 1 the system disconnects. If you select option 2 to reach Customer Support it directs you to the website support page. When you go there to set up a phone appointment the script errors out.

That pretty much sums up the amount of support in the USA.

 

[Mrgs1]

It does seem new stock is arriving in EU, I've noticed items "out of stock" at some dealers is now in stock again, but most parts available still, I emailed a dealer to buy a couple of new joysticks for an ST16, fine ordered and dispatched. I don't know why US is being messed around.

 

[PatR]

Tariff punishment, along with the elephant in the room.

 

[Phaedrus]

well, I already get lots of stuff from the EU. Not worried moving forward.

 

[Mrgs1]

Tariff punishment, along with the elephant in the room.

The Blonde Bombshell! Perhaps it's all "Fake News".

 

[JD Flyer]

If Yuneec US is in California, the simplest answer may be the shelter in place order. They may not be able to work remotely, and everyone is on unemployment. Just a guess.

 

[Deleted member 19815]

The Blonde Bombshell! Perhaps it's all "Fake News".

nope.
tariffs stopped many parts and pieces moving out of china to the global markets including canada.. warehouse stock depleted and port container handling backed up everywhere for a while...

 

[Bill Dunnuck]

It does seem new stock is arriving in EU, I've noticed items "out of stock" at some dealers is now in stock again, but most parts available still, I emailed a dealer to buy a couple of new joysticks for an ST16, fine ordered and dispatched. I don't know why US is being messed around.

I sent Yuneec CS several e mail messages to see of I would get a response. I didn’t. However I got 3 surveys this morning asking how Yuneec’s service had been. Classic. Guess they didn’t unplug that part of the system before turning out the lights.

 

[Mrgs1]

nope.
tariffs stopped many parts and pieces moving out of china to the global markets including canada.. warehouse stock depleted and port container handling backed up everywhere for a while...

I think you got the wrong end of the stick, I was referring to his ridiculous hair, and calling out the press that they are Fake News, no reference to import tariffs etc, I don't wish to comment on that.

 

[Deleted member 19815]

I think you got the wrong end of the stick, I was referring to his ridiculous hair, and calling out the press that they are Fake News, no reference to import tariffs etc, I don't wish to comment on that.

i gave up on chinese checkers.

 

[Mrgs1]

I sent Yuneec CS several e mail messages to see of I would get a response. I didn’t. However I got 3 surveys this morning asking how Yuneec’s service had been. Classic. Guess they didn’t unplug that part of the system before turning out the lights.

I've never received any of those surveys, I'm not sure that's a worldwide thing, all I get are adverts for their products etc, like you say a ridiculous scenario.

 

[Deleted member 19815]

i get sales flyers from virtigo drones for yuneec services and products.

 

[DoomMeister]

i get sales flyers from virtigo drones for yuneec services and products.

Have you looked at their jacked up prices? Good grief!

 

[Deleted member 19815]

Have you looked at their jacked up prices? Good grief!

yup :]

 

[DoomMeister]

The guy that started it is supposedly ex-military. He must think is is selling to the US government with the inflated prices. Parts for the Breeze cost more than the whole kit.

 

[Peter b]

I am trying not to laugh but can't help it!

I sent Yuneec CS several e mail messages to see of I would get a response. I didn’t. However I got 3 surveys this morning asking how Yuneec’s service had been. Classic. Guess they didn’t unplug that part of the system before turning out the lights.

 

[Tuna]

Just to clarify one point: Yuneec the company is not the same as Yuneec the US distribution operation.

Yuneec (who develop and manufacture drones) are in China. They were shut down for a while over the virus, but are apparently operational again.

Yuneec (who sell and repair drones) are three(?) distinct companies - one in the US, one in the UK and one in the EU. Companies in different regions are having to deal with different market conditions, and the different progress of Covid-19.

On the whole, the drone manufacturer that cannot be named has so screwed up the consumer market (even for themselves) that operations in that area are extremely tough. Along with the Chapter 11 of a very large distributor in the US last year(?), this means that consumer operations from Yuneec US have been heavily impacted. However, I'm hearing that commercial operations continue to do quite well (at least on this side of the pond), and it looks like the H520 continues to build a following in a range of industries. Unfortunately, that is not the sort of market that is very visible on forums like this one - they take their support requests and feedback straight to the distributor and service centre, not online.

It looks unlikely that the China operations will close - so long as they can manage stock levels, they can scale the company to keep profitable and continue. They still have a competitive product and appear to have a good audience to sell it to.