Is Yuneec on the brink of extinction?

[DoomMeister]

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.

Thanks @Tuna , there is a small ray of hope in what you say.

That still does not set well with US customers of their products. To put it bluntly Yuneec took advantage of two different businesses that they contracted to do their warranty work and failed to pay them for their services. The first one United Rsdio severed the relationship before it could bankrupt them. Unfortunately the other one stayed with their contract until it was too late for them to survive. This is not the type of business practice I would consider to be ethical. In fact I would call it underhanded and a sign for others to keep their eye on any business deals they undertake with a Yuneec. The first payment they miss or first shipment they fail to deliver should be a major red flag.

This is my own personal opinion of the situation and holds no reflection of any other person’s or organization’s opinion. I love the product, but I don’t care for the dirty business practices.

 

[Vasir]

Got this email from Yuneec Kayako site today:

XXXX (Yuneec) <[email protected]>
Tue 4/21/2020 11:44 PM



Hi, we are very sorry, but Yuneec USA has closed down permanently (chapter 11). We hope to find a solution within the Next 2 month.

On Wed, Apr 22, 2020 at 4:31 AM, XXXXX <XXXXXX> wrote via Helpcenter:
------------------------------

 

[PatR]

The bankruptcy was almost two years ago.

Ya’ll know the U.S. is the single largest purchaser of Chinese made consumer products in the world, right? Under normal conditions, what consumer product manufacturer would knowingly abandon their largest single source of revenue?

I mentioned under normal conditions because of the virus situation. I’m guessing after that self resolves there is going to be a consumer and government backlash like the world has never before seen.

 

[Vasir]

Things will change for sure, hopefully people are starting to wake up.
Definitely I am saving the Chernobyl style face mask for my grandkids so they can have something to laugh about 20-30 years from now. Reminds me of beginning of the movie interstellar.

 

[Xpfreak]

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.

Other side of the pond obviously has a more attentive audience with Yuneec products than here in the States, so logically Yuneec China will support their Network over there more as well than that of the U.S. Guess we can thank 'Ol orange for the drastic changes with Yuneec and other stuff here.

 

[PatR]

In the coming months you might be thanking him for the numerous manufacturers moving their operations back to the U.S. from China. It will help offset some of the closed businesses lost,induced by the Wuhan Flu, er COVID-19.

Another side of all that, moving forward the Chinese manufacturers won’t be selling much here anyway due to federal regs, which will entice U.S. businesses to investigate drone production. Should they elect to do so we can be pretty sure they will be more reliable than Chinese products as the manufacturers would be facing product liability actions by both government and consumers. Yes, they will cost more.

 

[cabinfourus]

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

The US side of Yuneec is leaving us due to the US government. Our lovely government thinks the Chinese are using the drones to spy on us and are making it tougher for Yuneec and other drone companies. Also, the tariffs that Trump has imposed on China are hurting the market. We do rely on the Chinese for a LOT of technology when it comes to our drones.

America proposes tariffs that will hurt American drone industry

The White House has proposed $50 billion trade tariffs against Chinese imports. They may do more harm than good for the American drone industry. From a couple of angles. So many parts of the drone …

www.suasnews.com

This is an article from 2018. I am not sure of the tariffs that were imposed but I do know they did apply some to the Chinese imports.
I was able to speak with someone on the Facebook page. I used the PM system and someone spoke with me about their future in the US. Basically telling me what we all fear, that Yuneec is feeling the hurt from Covid-19, and the impost tariffs.

 

[Red Baron]

The US side of Yuneec is leaving us due to the US government. Our lovely government thinks the Chinese are using the drones to spy on us and are making it tougher for Yuneec and other drone companies. Also, the tariffs that Trump has imposed on China are hurting the market. We do rely on the Chinese for a LOT of technology when it comes to our drones.

America proposes tariffs that will hurt American drone industry

The White House has proposed $50 billion trade tariffs against Chinese imports. They may do more harm than good for the American drone industry. From a couple of angles. So many parts of the drone …

www.suasnews.com

This is an article from 2018. I am not sure of the tariffs that were imposed but I do know they did apply some to the Chinese imports.
I was able to speak with someone on the Facebook page. I used the PM system and someone spoke with me about their future in the US. Basically telling me what we all fear, that Yuneec is feeling the hurt from Covid-19, and the impost tariffs.

Cabinfourus,
You just offered quite a few opinions. I am hoping that you could provide us with supporting facts.

Do you have some source or news report that could support your opinion that Yuneec is leaving us due to the US government?
Our "lovely government thinks the Chinese are using drones to spy on us" etc. - - - Do you have some inside information to dispute those news stories?
Did you read Yuneec Pilots Forum postings in early 2019 about Kansas City service center problems (non-payment from its Chinese manufacturer)? Did these problems occur before, or after, the tariffs?
By the way, do you recall the last time that Yuneec produced a new product that excited the US consumer?

Finally,
Do you recall where the Wuhan Virus started? Spoiler Alert: I don't think it was in Washington, DC.

Red Baron

 

[RickJKelley]

It is interesting with all the Messages... *Cough but some of them sounds reasonable for the US markets.

 

[PatR]

The “C” in Covid stands for China. Tariffs did not impact drones until late 2019.

 

[Fred Garvin]

I thought COVID-19 was:

CO = Corona
VI = Virus
D = Disease
19 = 2019 novel coronavirus

Is this not correct?

 

[Phaedrus]

^^^^sounds right^^^^

From the CDC:

On February 11, 2020 the World Health Organization announced an official name for the disease that is causing the 2019 novel coronavirus outbreak, first identified in Wuhan China. The new name of this disease is coronavirus disease 2019, abbreviated as COVID-19. In COVID-19, ‘CO’ stands for ‘corona,’ ‘VI’ for ‘virus,’ and ‘D’ for disease. Formerly, this disease was referred to as “2019 novel coronavirus” or “2019-nCoV”.

There are many types of human coronaviruses including some that commonly cause mild upper-respiratory tract illnesses. COVID-19 is a new disease, caused be a novel (or new) coronavirus that has not previously been seen in humans. The name of this disease was selected following the World Health Organization (WHO) best practiceexternal iconexternal icon for naming of new human infectious diseases.

 

[PatR]

I thought COVID-19 was:

CO = Corona
VI = Virus
D = Disease
19 = 2019 novel coronavirus

Is this not correct?

My perception had it China Origin Viral...

I’m sure any description that removed reference to China would be one they approve.

 

[Mrgs1]

Coronavirus is revealing how broken America’s economy really is

We are told by everyone from the United Nations to Donald Trump that the US is a ‘developed’ economy. The statistics suggest otherwise

www.theguardian.com

 

[Red Baron]

^^^^sounds right^^^^

From the CDC:

As noted above, Yuneec's service problems started almost a year before Covid-19 was an issue.

Many companies come and go; I have nothing negative to say about Yuneec. Back in 2018, I had a disastrous crash soon after I purchased their Typhoon H Pro. The hulk was fully repaired at no cost to me by their Kansas City, Missouri repair service. Absolutely perfect.

Soon after the Typhoon H Pro was released, it was named Drone of the Year at the Consumer Electronics Show in Las Vegas. I still fly the Typhoon H occasionally, but my decision to purchase and rely on a newer drone was based on better overall features and ease of operation; not government actions.

Red Baron

 

[Phaedrus]

My perception had it China Origin Viral...

I’m sure any description that removed reference to China would be one they approve.

China was never part of the original, or any official name. China was not removed, it was added by certain political factions for reasons that suited their agendas.

 

[fifty2fifty3]

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.

I'd love to think so but the ghost transfers, and call Q's to nowhere has been gong on since September of last year. I would have loved to buy directly from them, but had to go else where.

 

[Thecloth]

I thought COVID-19 was:

CO = Corona
VI = Virus
D = Disease
19 = 2019 novel coronavirus

Is this not correct?

Yes, that pretty much nails it. Any other description is suspect.

 

[cabinfourus]

Do you have some source or news report that could support your opinion that Yuneec is leaving us due to the US government?
Our "lovely government thinks the Chinese are using drones to spy on us" etc. - - - Do you have some inside information to dispute those news stories?
Did you read Yuneec Pilots Forum postings in early 2019 about Kansas City service center problems (non-payment from its Chinese manufacturer)? Did these problems occur before, or after, the tariffs?
By the way, do you recall the last time that Yuneec produced a new product that excited the US consumer?

WOW! So many questions. Where to begin?

Okay, first I want to say that no I do not have an inside mole feeding me information. I can see the writing on the wall, so to speak.
I have seen comments on the Facebook site, these forums, and other drone forums that are complaining about the lack of customer service Yuneec offers now. No, I didn't read about the Kansas City service problems here. I did see something about it on their Facebook page.
Yuneec has changed hands and it is killing them. The tariffs are hurting the Chinese drone market. There are tons of articles on this topic from reputable news outlets. As for the government moving away from Chinese drones, here is a great article on it.

Senators Rick Scott and Chris Murphy Lead Bipartisan American Security Drone Act to Prohibit U.S. Government from Purchasing Drones From Adversaries

www.rickscott.senate.gov

Back in 2018 Yuneec and 3DR teamed up (Yuneec's foot in the door) to work with the US Government civilian companies. This was going to pad the pockets of Yuneec employees but two years later Trump grounds these drones, due to some higher-up politicians seem to think China is spying on us through them.

Yuneec and 3DR Announce Joint Venture 3DR Government Services | Yuneec Newsroom

Interior Department Grounds Chinese-Made Drones, Months After It Approved Them

The move is a turnabout for Chinese firms such as drone giant DJI — which made special "government edition" drones that the Interior Department approved last summer.

www.npr.org

And this isn't helping Yuneec's name at all....

Yuneec USA, Inc. | Better Business Bureau® Profile

This organization is not BBB accredited. Electric Supplies in Rch Cucamonga, CA. See BBB rating, reviews, complaints, & more.

www.bbb.org

There ya have it. Yuneecs problems in the US are deeper than most truly know.

 

[JD Flyer]

Cabin,
Nicely sourced, and thoughtful. Still all inferences. Doom and gloom will not make Yuneec close,and it's not proof they are.

I do agree the current administration's politics is hurting the people in this forum. I do agree Yuneec has scaled back. But compare that to DJI, who is taking a massive financial hit thanks to COVID and tariffs.

I'd think Yuneec has less exposure to a downturn, but that's an opinion. I do think Breeze is a good product, but the mini drone under 500 space is extremely saturated with quality products for.competition. I'm thinking Mavic, Hubsan, etc.

Generally speaking their product is not fresh, and is not up to DJI standards for bell's, whistles, endurance. We pilots appreciate what they do well, but we need them to thrive. They aren't. As a low priced 3 year old technology they're fine, but somehow they've got to pull some improvements out of their a$$.