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Under the continuing influence of the novel coronavirus epidemic, the used car industry has also been hit hard. Youxin has announced wage cuts and some employees have been suspended for work, while some used car e-commerce platforms have similar operations.

Recently, it has been reported that Youxin Group has adopted a short-term pay cut during the epidemic, with a pay cut of between 20% and 30% for ordinary employees and more than 40% for senior executives, which lasted from February 15 to May 31. At the same time, some employees have been suspended from work since March 1.

According to an email sent by a Youxin second-hand car to some employees, due to operational difficulties, there is no work arrangement for the time being, so work has been suspended since March 1. At the same time, Youxin will pay the minimum living security of employees in accordance with local policies, and bear the basic social security and housing provident fund of employees. Youxin also added in the email that when the business situation of the company improves, it will arrange to return to the team.

In response to the news, Youxin responded that the move was to cope with the shock to tide over the difficulties, and insisted on not laying off staff. Youxin said that the company has made temporary short-term adjustments to the salaries of some employees and adopted a flexible employment approach for some positions. "it has won the support and understanding of the vast majority of employees, and Youxin management thanks employees for their understanding and dedication." and set an example to take the lead in salary reduction.

In fact, under the continuing impact of the COVID-19 epidemic, the new car sales business of the automobile industry has been blocked, and the used car industry has also been hit. Even if the business returns to work normally, there are irresistible factors in the operation of the business. Therefore, a number of enterprises, including Guazi and car search, have also taken measures to reduce corporate risk.

Guazi's parent company, Che many Group, disclosed in an internal letter that the company adopted a phased salary and holiday adjustment plan for some posts, including a 40 per cent pay cut for the group's chief supervisor, a 50 per cent pay cut for the group's VP layer, and a 30 per cent pay cut for P and M series jobs.

The internal letter from many car groups said, "the COVID-19 epidemic has come all of a sudden, all kinds of industries have been affected, and the business of the group has also been affected to varying degrees. Users' willingness to buy and sell and maintain cars has decreased, and the epidemic prevention and control has led to a decline in the meeting rate. It will take time for business to pick up. We need to make positive adjustments to preserve our strength and combat the risks of uncertainty that may exist for a long time. Many cars sincerely urge all colleagues to tide over the difficulties with the company and work together to resist the impact of the epidemic. "

Including new car sales, second-hand car trading, and so on, have been seriously affected in the epidemic. Some industry insiders said that used-car e-commerce crazy money-burning model, weak cash flow, risk resistance is also relatively weak, the epidemic will force used-car e-commerce to make a choice in the business model.

It is also pointed out that the epidemic has led to the postponement of consumers' car purchase plans, and at the same time, the epidemic will stimulate the car purchase demand of some car-free households, so there will be a short-term increase in car consumption after the epidemic. Low-priced used cars may become the top priority for some consumers, while the first thing the used car e-commerce platform can do is to cope with the impact and tide over the difficulties.

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