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

New crown virus spreads all over the world, European and American automobile factories and parts enterprises stop production one after another, and the automobile industry stagnates again. Even if China's factories are fully resumed, a sharp reduction in overseas orders or a shutdown of foreign companies will seriously affect business in China. A few days ago, a number of large auto parts companies issued a notice requiring Chinese employees to take unpaid leave voluntarily in order to reduce expenses.

Delphi Technology's internal documents to all payroll employees show that the new crown virus has spread around the world, escalating the epidemic in many parts of the world, bringing a huge impact on industrial development. Our customers and suppliers are suspending their manufacturing operations and some engineering R & D work around the world. As a result, our customer orders decreased significantly, and Delphi Technology's business was greatly affected.

"Given the current situation, we are unable to maintain normal operations, so we must take the necessary steps to conserve cash and maintain adequate financial liquidity to prepare for future recovery periods." Therefore, the Company encourages all salaried employees in China to arrange 10 working days of unpaid leave during the period from 30 March 2020 to 31 May 2020. During the unpaid leave period, the corresponding basic salary will not be paid, and other benefits will remain unchanged." Delphi Technology also said it hoped employees would work together with the company to overcome difficulties.

Delphi is an American automotive parts supplier that split into Delphi Technology and Amberford in 2017. Delphi Technology continues to focus on automotive powertrain business, providing engine management systems, fuel systems, ignition systems, braking systems, steering systems, air conditioning systems, electronics and electrical systems.

Delphi Technology has built a number of manufacturing plants in China and has a wide range of businesses. Delphi Technology (Suzhou) Co., Ltd. business scope includes electronic control brake system, hybrid and electric vehicle controller, battery pack system and its spare parts.

Almost at the same time, Ambofu China also took measures to voluntarily take unpaid leave for employees. Amberford gives employees two options for voluntary unpaid leave, one is to voluntarily apply for April 7-April 20, and the other is 10 working days in April 2020.

Ambofu also said employees would not receive corresponding salaries during voluntary unpaid leave. At the same time, since the employee voluntarily applies, the employee confirms that he/she waives any claim for compensation that may occur in connection with the plan from Ambofu and its affiliated companies, and requests Ambofu and its affiliated companies to assume any responsibility; however, it is confirmed that the employee participating in the plan will not change the existing employment contract and employment relationship between the employee and Ambofu.

Anbofu is an enterprise that supplies parts and mobile travel development technology. It has factories in Shanghai, Tianjin, Nantong, Suzhou, Changchun, Yantai, Yancheng, Wuhu, Jiangmen, etc.

Many netizens said that the automobile industry environment is so, enterprises in the difficult stage encourage employees to take unpaid leave to reduce expenses, rather than direct layoffs or pay cuts, after all, this is a short stage. There are also netizens said,"(The enterprise) The implication is not to accept layoffs."

In fact, under the continuous cold winter of the automobile industry, coupled with the impact of the epidemic and the spread of the global epidemic, automobile enterprises have to take corresponding measures to ensure that the company can survive the crisis. More and more enterprises will take voluntary leave of employees and leave without pay, so as to reduce expenses without layoffs.

At present, the automobile enterprises that claim not to lay off employees and reduce wages include Geely, Guangzhou Automobile, etc. Geely President An Conghui said,"Geely during the epidemic, do not lay off workers, do not reduce wages, do not delay the payment of employees, we need to through internal organizational changes, staff efficiency improvement, and brand-new project layout reasonable use of employees."

But Geely also admitted that 2020 will be difficult,"expecting the current adverse factors to continue in the short term, and 2020 may be the most difficult year for the Group in history," Geely said.

Zeng Qinghong, chairman of GAC Group, also said,"The company will not cut employees 'salaries to tide over difficulties." At the same time, for the problem of insufficient production capacity caused by personnel, it will be completed through overtime work on the premise of ensuring overtime pay for employees.

According to the forecast of China Automobile Association, it is expected that automobile production and sales will decline by about 45% in the first quarter and about 25% in the first half of the year. Affected by the decline in income of some residents, especially the income of low-and middle-income groups, the development situation of the automobile market throughout the year is still not optimistic.

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