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In 2020, when the new energy vehicle market broke out, BAIC New Energy, which once won the championship in pure electric vehicle sales for seven years in a row, has experienced a precipice decline. Entering 2021, BAIC New Energy also seems to be under a lot of pressure. After the chairman of the company announced his resignation, it was revealed that he planned to lay off staff.

BAIC New Energy is planning to launch a round of layoffs, accounting for 20 per cent, ahead of the traditional Lunar New year, according to several media reports. It has been revealed that the "layoff list" has been clearly issued, and many employees have begun to send their resumes, looking for a new next job, and even some senior executives have not been spared. An executive in charge of research and development at BAIC New Energy is also on the list of cuts.

In addition to layoffs, BAIC New Energy may have wage cuts. According to a comment from the last certified BAIC New Energy employee at APP, "shameless!" In April, he said that the performance was not qualified, deducted the money from January to March, and said that the salary would be cut from January. "

Although it all seemed sudden, it was to be expected. According to the data, BAIC's cumulative new energy sales in 2020 were only 25914 vehicles, down 82.79 per cent from the same period last year. According to the financial report released by BAIC Blue Valley, the operating income in the first three quarters of 2020 was 3.922 billion yuan, down 78.16% from the same period last year; the net loss was 2.884 billion yuan, and the loss area had a trend of obvious expansion. It can be predicted that the annual profit of BAIC New Energy is not optimistic in the fourth quarter, when sales remain depressed.

Of course, under the favorable environment of the development of new energy vehicles, BAIC New Energy has increased from 5.88 yuan per share in January 2020 to 8.67 yuan per share in December 2020, but in contrast, BYD, Lailai, Xiaopeng, ideal and many other new energy vehicle companies, BAIC New Energy shows completely different signs of development.

BAIC New Energy launched its first high-end model, ARCFOX α T, in October 2020, but it obviously failed to become a best-selling model. Only 709 ARCFOX α T vehicles were sold in the three months after its launch. Industry insiders believe that the halving of BAIC's new energy sales has a lot to do with the fact that the B-end market is not as good as expected. BAIC New Energy has not opened the situation in the C-end market for a long time, and the market sales will not improve significantly in the foreseeable future.

It is understood that BAIC New Energy in 2020 in addition to the launch of ARCFOX α T model, BJEV has not launched a new product. Under the background of this kind of sales halving and profits plummeting, layoffs have become the choice that BAIC New Energy has to take.

It is worth mentioning that just a few days ago, BAIC Langu issued an announcement that Jiang Deyi proposed to the board of directors to resign as chairman and other positions due to work reasons, and general manager Liu Yu took over as chairman. According to media reports, Jiang Deyi's resignation may be related to BAIC's latest rule that group staff can no longer work part-time in subordinate enterprises, but there is no way to verify it. Some employees said that BAIC's new energy sales fell off a cliff, and the former chairman Jiang Deyi became a "victim".

In recent years, BAIC New Energy personnel changes frequently. On February 1, 2019, Zheng Gang, general manager of BAIC New Energy, left, and Ma Fanglie became director and general manager of BAIC New Energy Blue Valley. On July 24, 2020, Liu Yu, former executive deputy general manager of Beijing Hyundai, joined BAIC New Energy as general manager. On January 26, 2021, Liu Yusheng became chairman of BAIC New Energy and the new "number one" Liu Yu. How to save BAIC New Energy from fire and water and complete a breakthrough has become a major focus of the industry.

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