AutoBeta(AutoBeta.net)04/02 Report--

According to media reports, due to the impact of COVID-19 's epidemic, Fiat Chrysler (FCA) will implement deferred pay and other measures to avoid layoffs. FCA announced that from April to June this year, employees of the company will have their salaries cut by 20%, CEO Mike Manley will temporarily cut their salaries by 50%, executive board members will cut their salaries by 30%, and chairman John Erkan and board members will give up the remaining salary in 2020.

FCA CEO Mak Mingkai said that it is every employee's responsibility to ensure the company's financial health, and the relevant temporary pay cuts naturally need to start with myself and the leaders of FCA. He said that 20 per cent of the salaries of most salaried employees around the world who were not affected by the North American shutdown plan would also be temporarily postponed. Specific wage reduction procedures may vary from country to country and agreements may be needed. The company will repay this part of the compensation by March 15, 2021, but FCA has not yet announced the compensation measures for deferred pay.

At this point, the three major car companies in the United States have announced the implementation of wage reduction policies to deal with the impact of the epidemic on companies.

According to foreign media reports on March 27th, GM announced that it would indefinitely suspend production activities at its North American plant and decided to delay the payment of wages for all its salaried employees (about 69000 people). Their wages will be temporarily cut by 20%, and the reduced wages and interest will be refunded at one time before March 15, 2021. In addition, GM board executives will cut their total pay by 20%, office white-collar employees will temporarily cut their salaries by 20%, and GM will provide them with cash compensation in the range of 5% to 10%. But does not include bonuses, stock options or other incentives.

Ford also announced that it would postpone the salaries of the company's top 300 executives by 20% Mel 100% to varying degrees. Of these, Bill Ford, Ford's executive chairman, will postpone 100 per cent of his salary, while Ford CEO Jim Hackett, Jim Farley and CFO Tim Stone will postpone 50 per cent of their salaries, effective May 1.

The three American car companies have handed in a disappointing "report card" in the past year. Fiat Chrysler Group's revenue fell 2% year-on-year to $119 billion (RMB 844.1 billion) in 2019, and net profit fell 19% to $3 billion (RMB 20.9 billion). GM's net income fell 6.7% year-on-year to $137.2 billion (RMB 973.2 billion), and net profit fell 17.4% to $6.7 billion (RMB 47.5 billion). Ford's revenue fell 3 percent year-on-year to $155.8 billion (1.1052 trillion yuan) in 2019, while net profit fell 98.7 percent to $47 million (300 million yuan).

The latest figures released by the World Health Organization on March 31 show that the number of confirmed cases of COVID-19 outside China has reached 668345. Among them, the cumulative number of confirmed cases of COVID-19 in the United States reached 189624, surpassing Italy and China. So far, the three US car companies have announced that they will suspend production at their factories in the United States and assist the US epidemic through the production of medical equipment such as ventilators. At present, the epidemic in the United States is still showing explosive growth, and the inflection point is a long way off. As for when to restart factory production activities, this time will not come any time soon.

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