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With the domestic auto market suffering from two consecutive years of declining sales environment, coupled with the impact of the epidemic, the originally weak brands have become even worse. Today, it is reported that Huachen Renault is planning a layoff involving 650 people.

It is understood that the 650 employees laid off this time are all employees of brilliance Renault in Shenyang. At present, the company has less than 3000 employees, which means that more than 20% of the staff will be laid off this time. The proposal is that brilliance Renault decided to promote an internal project plan of the company at a high-level meeting today.

According to an exposed document, employees who have been laid off this time will receive a "Never1" subsidy, that is, if the working life of the company is less than the number of months before retirement, N will represent the number of years of service, that is, young employees will receive severance compensation based on their working years. If the number of years of service in the company is greater than the number of months before retirement, N will represent the number of months before retirement, which means that retiring employees will receive very little severance compensation.

At the same time, all the optimized employees will receive a 2-month wage employment subsidy. And salary and social security provident fund ask you to postpone payment only until July. According to insiders, the layoff compensation arrangement is a "voluntary severance compensation" plan.

In addition, brilliance Renault plans to optimize its staff of 650 people, according to a contract signed between brilliance Renault and Dacheng Law firm. In addition, a "red seal" can be seen at the lower right of the service contract.

However, in response to reports about the company's layoffs and compensation arrangements, Renault China sources said in an interview with the 21st Century Business Herald: "No (layoffs), this is part of the change plan, and no one will be formally abolished." is to encourage organizational competitiveness. "

It is understood that in addition to the employee optimization plan, Huachen Renault will also carry out a salary reduction adjustment for ministerial-level employees, the details of which have not been disclosed.

In fact, this is not Huachen Renault's first layoff plan. The company has started layoffs since April 2018, formally laid down the list in August and September of the same year, and began talking to employees in October. This means that Huachen Renault's layoffs have been under way since the joint venture was listed.

Although during this period, Huachen Renault has also encountered more than 40 employees who have been feedback with the brilliance group leadership and the guild, demanding that they need reasonable compensation even if they are laid off. However, in the end, the company tried to return employees to brilliance Group in the form of "soft layoffs" on the grounds that their employees did not comply with the "observation period agreement". However, fortunately, some employees have successfully won legal compensation and are going through the formalities.

Brilliance Renault may be a little familiar and unfamiliar, but the mention of the Golden Cup may be understandable. On July 4, 2017, brilliance China (01114.HK) signed a framework cooperation agreement with Renault, under which Renault agreed to acquire brilliance China assets. Brilliance China will sell 49 per cent equity interest in brilliance Gold Cup to Renault for a cash consideration of RMB1.00. This also makes it the first commercial vehicle joint venture case in the Sino-foreign "joint venture trend".

After the establishment of brilliance Renault, the company plans to produce and sell light commercial vehicles under the Jinbei, Renault and Huasong brands, and the models will be localized to produce three major categories of vehicles-MPV, medium van and van, large van and van. At the same time, it also plans to achieve annual sales of 150000 units by 2022, and plans to deploy electric vehicles ahead of schedule.

However, the first model launched by brilliance Renault after the joint venture is a passenger model, which is a brilliance Renault view positioned as a medium-sized SUV. Although, at the beginning of its launch, it caused a sensation in the industry and the market, because it was a new model with both brilliance technology and Renault technology, but in the end, the performance of the model was not satisfactory. A total of 30 vehicles were sold in June this year and 641 for the whole year, basically on the edge of the sales list, according to the Federation of passengers.

Although Huachen Renault said that layoffs are only a transformation plan, it is understandable that in the current market environment, the newly established brilliance Renault did not bring considerable performance, even from the sales volume. Two years on the market is still in the marginal market, can not bring considerable benefits to the company, so layoffs and pay cuts have naturally become the most effective measures to reduce costs.

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