AutoBeta(AutoBeta.net)03/16 Report--

In 2020, the automobile industry has suffered unprecedented difficulties due to the continuing impact of the epidemic. In order to reduce the burden, enterprises have launched layoffs and pay cuts, and put forward plans that corporate performance is positively related to the personal income of employees. Under the circumstances, SAIC became the first large auto company to announce a pay cut.

It is reported that SAIC Volkswagen, the largest seller of SAIC Group, has begun to reduce its salary. A plan posted online is that "SAIC Volkswagen will abolish double salary, reduce the basic salary by 25% for management and 15% for employees. The overall reduction is about 40%."

Industry insiders said, "SAIC-Volkswagen is already a leading enterprise in the industry, and the situation is grim."

In response to the employee pay cut, SAIC-Volkswagen responded on the 16th: "it is normal for employees' income to fluctuate with enterprise performance, and this adjustment increases the positive correlation between enterprise performance and personal income. The part of employee income related to enterprise performance is linked with the change of performance." However, it also said that the company has not yet made relevant statistics on the specific extent of the reduction.

In fact, SAIC has been discussing employee pay cuts at its companies since February. Insiders said, "now the whole SAIC Group is indeed making a pay cut, and SAIC Chase and SAIC Huizhong announced it first."

Among them, SAIC Chase said in the 2020 salary and benefit adjustment document that monthly performance bonuses for employees in H and above positions dropped by 57%, Ghand F posts dropped by 29%, and E posts and below dropped by 17%. At the same time, benefits such as leave allowance for all staff are eliminated. SAIC Chase said that February was the first negative year-on-year sales growth in its history, and it will be the same in the first quarter, and companies are facing losses, so employee pay and benefits should be linked to the company's operating performance.

Shanghai Huizhong will cut the monthly pre-tax income of its employees by 22.2% from March, and the recovery period will depend on the follow-up situation of the company. Shanghai Huizhong is an enterprise that integrates commercial vehicle manufacturing and car chassis system production under SAIC Group, and it is also a supporting supplier of various car chassis systems of SAIC Volkswagen and SAIC GM.

In addition, the Pan-Asia Automotive Technology Center, a joint venture between SAIC and General Motors, has also been exposed to ushering in "difficult days", including a decline in employee salaries, a certain percentage of passive turnover rates for all employees, and a certain percentage of elimination rates for management posts. at the same time, all promotions, recruitment, and abolition of overtime pay were suspended.

It was also revealed that the internal meeting informed employees of the salary adjustment plan, including a 70% reduction in performance pay for senior managers, and a reduction for all senior managers and above, effective from March to June, and then decided according to the company's business situation.

Affected by the downturn in the car market and the epidemic, SAIC's production and sales fell sharply in 2020, and its major companies were also greatly affected. The launch of the "pay cut" plan for senior executives is related to the current performance and the unoptimistic forecast of the car market in the future.

A number of SAIC companies reduce employees' performance pay, and the relevant person in charge of SAIC's public relations department responded, "under special circumstances, it is very normal for employees' income to fluctuate with performance. The production and sales volume of many car companies fell too much in February, and enterprises adjust performance pay according to the situation, which is also in full compliance with national laws and regulations, and the salary system is also in line with the market competition system. "

Affected by the epidemic, SAIC's production capacity and sales fell sharply in February. According to a data report released by SAIC, SAIC's production reached 32260 vehicles in February, down 90 per cent from a year earlier; sales were 47365, down 87 per cent from a year earlier; cumulative production from January to February was 450000, down 52.5 per cent from a year earlier; sales were 447600, down 54 per cent from a year earlier.

Specifically, SAIC Volkswagen, which has the largest sales volume, sold 10, 000 vehicles in February, down 91 per cent from a year earlier, while sales in the first two months totaled 123000, down 59 per cent. SAIC GM sold 7612 vehicles in February, down 92% from a year earlier. SAIC GM fell 52% from January to February to 133000 vehicles.

SAIC's overall sales in 2019 were 6.238 million vehicles, down 11.5% from a year earlier, and its net profit is expected to be about 25.6 billion yuan, a decrease of about 10.4 billion yuan, or 29%, year-on-year. In 2020, SAIC is more affected by the continuous downturn of the auto market and the epidemic situation, and its business operation is more severe. Therefore, the decline in performance and other comprehensive factors prompted SAIC to announce a pay cut.

For the entire automobile industry, after entering 2020, it is in an unfavorable environment of layoffs and wage cuts, the burden on enterprises is increased, and the uncertainty of the car market caused by the epidemic is increased, which further aggravates the worries of enterprises and auto workers.

The China Federation of passengers believes that the car market recovers slowly from March to April and is expected to return to normal after May. As a result, the auto industry will remain in the doldrums. Through the difficult period, reducing the burden and increasing efficiency will be the primary consideration for enterprises at present. At this stage, the phenomenon of layoffs and pay cuts in the automobile industry will become more and more common.

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