AutoBeta(AutoBeta.net)03/21 Report--

BYD is a representative company in the manufacture of new energy vehicles in China. During the COVID-19 epidemic, due to the decline in car sales and production obstacles, BYD began to switch to the production of masks and disinfectants and sell them to the outside world to alleviate the current shortage of masks. However, after BYD resumed work and production, employees immediately began to pull up banners to protect their rights.

Recently, it was reported that BYD employees put up rights banners at the factory gate to denounce BYD. According to the banner, "19 new energy bus factories resumed work during the epidemic, but the functional departments turned a blind eye to it."We want to live, we want to eat."

It is understood that the 19th Division of BYD is mainly engaged in the research, development and manufacture of new energy buses and special chassis.

Other people familiar with the matter said on Weibo that security personnel and test-driving personnel of BYD also began to make trouble. More than a dozen BYD test-drive employees hold up their rights in front of the BYD headquarters building in Shenzhen. they wear corporate overalls and hold the slogan "testers want to live, we want to demand".

Some media quoted insiders as saying that Shenzhen BYD suspected that due to the cancellation of subsidies and corporate strategic problems, a serious decline in efficiency, a substantial reduction in the income of grass-roots employees, resulting in a group incident broke out at its headquarters in Pingshan, Shenzhen.

BYD officials have yet to respond to revelations that internal employees have defended their rights.

In fact, since the outbreak of the epidemic, many car companies have shouted the plan of "further increasing corporate performance and employee income is related". In view of the serious decline in the company's performance affected by the epidemic, the income and performance pay of all kinds of employees have been reduced. Employees are encouraged to tide over the difficulties with the company and overcome the difficulties together. In addition, for some car companies with unsatisfactory performance, the epidemic is also an opportunity for "pay cuts or layoffs" to take advantage of the opportunity to reduce the size of their staff and further reduce their expenses.

But so far, large domestic car companies have different "wage reduction" plans, and there are no employee group incidents like BYD.

For example, SAIC is the first large auto company in China to announce a pay cut, including SAIC Chase, SAIC Huizhong, SAIC passenger cars and Shanghai Huizhong also cut employee performance bonuses. According to the head of SAIC Chase, the biggest impact on the pay adjustment is the leadership, and factory employees and engineers are basically unaffected.

GAC GROUP has even taken more humane measures not to cut wages. Zeng Qinghong, chairman of GAC GROUP, said, "the company will not tide over the difficulties by cutting employees' salaries." At the same time, the problem of insufficient production capacity caused by personnel will be accomplished through overtime work on the premise of ensuring overtime pay for employees.

After BYD resumed work and production, there were incidents in which employees defended their rights, denounced the company and put forward their appeals. it seems that the contradiction between BYD's internal management and employees does exist, and the interests of employees at the bottom have been harmed, and further broke out in this epidemic.

"if it's not too much, who wants to pull a banner?" said a person familiar with the matter. "

Some people in the industry also said that at present, automobile companies have taken appropriate wage reduction measures, saying that "this is a measure to reduce costs in a special period, and it is also a means to ensure the normal operation of enterprises." in a special period, enterprises have difficulties of enterprises, and the larger the direction of enterprises, the more difficult it is to control, and the difficulties of employees are also real, hoping to tide over the difficulties together.

Due to the decline in overall sales of new energy vehicles and increased uncertainty in the industry, as a representative of the domestic new energy industry, BYD's performance has also fluctuated.

According to the results report for the first three quarters of 2019, BYD's revenue in the first three quarters was 93.822 billion yuan, up 5.44% from the same period last year; net profit was 1.574 billion yuan, up 3% from the same period last year; and net profit excluding non-operating profit and loss was 587 million yuan, up 456% from the same period last year. Among them, non-operating profit and loss includes 1.04 billion yuan of government subsidies related to cars.

BYD expects its net profit to be between 15.84 and 1.774 billion yuan in 2019, down 36.19 percent from a year earlier. Due to the reasons for the performance changes, BYD believes that the overall market demand of the automobile industry in the fourth quarter is still weak, the impact of changes in the fuel vehicle price system and the impact of the sharp decline in subsidies for new energy vehicles, and the sales volume of the new energy vehicle industry is lower than expected. therefore, it is expected that the profit of the group's new energy vehicle business will also decline to a certain extent compared with the same period last year.

In terms of new energy vehicles, BYD has seen its sales decline for eight consecutive months. BYD new energy vehicles still had a 95 per cent year-on-year increase in the first half of 2019, and sales fell sharply in the second half of the year due to changes in the industry environment and a sharp reduction in subsidies, resulting in full-year sales of 223000 new energy vehicles, down 7.4 per cent from a year earlier. In 2020, BYD's new energy vehicles are still in further decline, with sales of less than 10,000 units in the first two months, down 77% from a year earlier, compared with a 25% drop in BYD's fuel vehicles over the same period.

Although sales of new energy vehicles remain in the doldrums, the national new energy subsidies received by BYD help stabilize performance. In March 2020 alone, BYD received central financial subsidies for the promotion and application of new energy vehicles allocated by the Finance Bureau of Shenzhen Pingshan and Xi'an High-tech Zone, totaling 2.342 billion yuan.

Finally, attached is a speech made by Wang Chuanfu, chairman of BYD, on the official website: "if China wants to become a scientific and technological power, it will not live up to its name without its own national automobile industry." As a member of China's national automobile industry, we will be ashamed if we cannot change the current situation of the backward national automobile industry in this field. "

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