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Fengcheebao, a veteran car company, has been exposed to collective pay cuts and suspension of production, and internal documents on employee pay adjustments and wage reductions have been widely circulated online. In response to this matter, the person in charge of Cheetah confirmed the authenticity of the document to the media, "the current downward trend in the industry is obvious, coupled with the country 5 switching to country 6, staff reduction and salary reduction is one of the ways for enterprises to take the initiative to deal with the current predicament." He also said that the company did not stop production completely, mainly for some products with large inventory and products that are about to be replaced.

Changfeng Group decided to implement the "employee pay adjustment and burden reduction", according to an internal meeting minutes issued on May 29. The content of the document said that in view of the rapid changes in the automobile industry, the company's serious production and operating losses, and serious underoperation of the production base, the meeting ensured survival and tide over the difficulties by means of salary adjustment, burden reduction and salary reduction.

The salary adjustment includes the salary reduction of 50% for some senior executives in the headquarters, 10% for the staff of the research institute, and 30% for the staff of the production base. For those who have no work arrangement to wait for work or rest in rotation, the wages are calculated in accordance with the minimum wage standard of the base area this year.

Changfeng Group can be traced back to 1950 and has a history of nearly 70 years. In September 2001, it was handed over by the army to the people's Government of Hunan Province. It is mainly engaged in the research and development, manufacture and sales of complete vehicles, and its headquarters is located in Changsha, Hunan Province. In 1995, the company cooperated with Japan's Mitsubishi Motors to introduce Mitsubishi Pajero automotive technology. In the process of later development, Changfeng established the "Cheetah" off-road vehicle brand, and now has four vehicle production bases: Yongzhou in Hunan, Chuzhou in Anhui, Changsha in Hunan and Jingmen in Hubei.

In addition to the four vehicle manufacturing bases, Changfeng Cheetah also has two research institutions (Beijing Automotive Research Institute and Changsha Institute of Engineering), three key parts companies (Power Company, Sino-German Company and Fengshun Company), and a headquarters with an annual production capacity of 500000 SUV and pick-up trucks, the main products are Cheetah brand series SUV and pickup trucks.

The main reason for the current situation of Cheetah is that sales continue to decline. Data show that Cheetah sold only 77630 vehicles in 2018, nearly halving from a year earlier, and cumulative sales fell to 28331 from January to June this year.

Cheetah currently has six models on sale, namely, the CS10, CS9, CS9EV and Mattu Mai Tu, the hard SUV Q6 and the pickup Cheetah CT7. Due to intensified market competition, cheetah sales continued to decline. Cheetah CS9 sold only 793 vehicles in June, down 66% from a year earlier, with a total of 14325 in the previous month. Mattu sold only 349 units in June, down 88.7% from a year earlier and 7377 in the first six months.

With the rapid changes in the market, the pace of enterprises can not keep up, the operation will be more and more difficult. Some analysts believe that many independent brands miss valuable opportunities in many aspects, such as product research and development, brand promotion, or the development of new energy vehicles.

According to statistics from the China Association of Automobile Manufacturers, sales of passenger cars from January to June in 2019 were 10.127 million, down 14 percent from the same period last year, of which 3.998 million were sold under Chinese brands, down 21.7 percent from the same period last year, accounting for 39.5 percent of the total passenger car sales. down 3.9 percentage points from the same period last year. With the decline in sales and the decline in share, Chinese brands are facing increased competition and are entering a difficult time.

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