Retail sales fell for three consecutive months FAW-Volkswagen started layoffs, and the official response: it has been reported

National Business Daily

2024-05-28 18:21Posted on the official account of Sichuan Daily Economic News

Every reporter: Duan Siyao Every editor: Sun Lei

Following the "breakthrough action" sent to the whole system, FAW-Volkswagen recently launched personnel optimization and adjustment.

According to the content of a document dated May 13, 2024, entitled "Report on the Planned Downsizing of the Foshan Branch of FAW-Volkswagen Automotive Co., Ltd.", it is difficult to continue to arrange the positions of more than 700 surplus personnel of the FAW-Volkswagen Foshan Branch, and it is planned to select 565 people with the lowest performance ranking in the batch of personnel (involving 690 people) who joined the labor contract from July 2019 to July 2024, and will not renew the labor contract with the employee on the grounds of the expiration of the labor contract. and provide financial compensation in accordance with relevant laws and regulations.

"The adjustment is that the Foshan branch will not renew the contracts of some employees whose first labor contracts expire, and the situation has been reported to the relevant departments of the local government in advance." FAW-Volkswagen responded to the "Daily Economic News" reporter that FAW-Volkswagen will give full economic compensation to the employees who do not renew their contracts.

Personnel adjustment does not affect daily production and operation

It is reported that in order to cooperate with this downsizing, FAW-Volkswagen Foshan Branch has decided to temporarily suspend production from the afternoon of May 25 to June 10, 2024.

According to public information, FAW-Volkswagen Foshan Branch was established on December 1, 2011 and is the vehicle manufacturing base of FAW-Volkswagen in South China. In the same year, the first phase of the FAW-Volkswagen South China Base project started construction and was completed and put into operation two years later. Subsequently, the foundation stone of the second phase of the project was laid in May 2014 and put into operation in June 2018, with an overall annual production capacity of 600,000 units, mainly producing models such as the Tange, Audi Q2L, and ID.7 VIZZION.

Image source: Photo by reporter Kong Zesi (data map)

For the temporary suspension of production, the reporter asked FAW-Volkswagen Volkswagen brand and FAW Audi for verification, and both sides said: "Fake, we have a normal schedule." In addition, FAW-Volkswagen also responded: "The downsizing adjustment will not affect the daily production and operation of the Foshan branch." ”

According to the official website of FAW-Volkswagen, it has formed five national vehicle production bases in China, covering Changchun in Northeast China, Chengdu in Southwest China, Foshan in South China, Qingdao in East China, and Tianjin in North China. Among them, the Foshan production base in South China is not only the bearer of FAW-Volkswagen's "Southern Strategy", but also an important bridgehead for its new energy transformation, where the ID.4 CROZZ, ID.6 CROZZ and ID.7 VIZZION were born.

Behind the Foshan branch's downsizing plan, it also reflects the dilemma of FAW-Volkswagen's new energy transformation. According to public data, in the first four months of this year, the ID.4 CROZZ, the best-performing ID. series model in FAW-Volkswagen, sold about 12,000 units, and in April, the ID.7 VIZZION and ID.6 CROZZ sold 383 and 400 units respectively.

Retail sales fell for three consecutive months

In the first four months of this year, FAW-Volkswagen's sales have declined for three consecutive months.

According to the data of the Passenger Association, in the first four months of this year, the cumulative sales of FAW-Volkswagen were about 514,300 units, a year-on-year increase of 0.9%. However, in terms of monthly sales, FAW-Volkswagen's retail sales fell by 16.2%, 4.2% and 15.6% in February, March and April, respectively.

The three-month decline has put FAW-Volkswagen's second sales position in jeopardy. On the sales list of the Passenger Association from January to April, BYD won the sales championship with 840,100 units, followed by FAW-Volkswagen with cumulative sales of 514,300 units, and Geely Automobile third with cumulative sales of 504,400 units. The difference in sales between the two in the first four months was only 9,868 units.

FAW-Volkswagen, aware of the crisis, has begun to act. In mid-May, an internal notice from FAW-Volkswagen called "Breakout Action" was exposed, "FAW-Volkswagen is in the last and only window of transformation, and we have no way out except to fight against the water, and all of us are determined to live to the death."

Image source: Photo by reporter Kong Zesi (data map)

At the same time, since the beginning of this year, FAW-Volkswagen's brands have repeatedly launched limited-time promotion policies. For example, the Jetta brand launched a policy of direct subsidy of up to 30,000 yuan for a limited time in April. Recently, FAW-Volkswagen has launched a policy of doubling the national subsidy, and all models participate in the trade-in, of which the two models of Lancun and Lanjing have the largest subsidy, with a maximum subsidy of 26,000 yuan, and the subsidy of the pure electric ID. family is also 20,000 yuan.

In addition, the reporter learned from a number of FAW-Volkswagen 4S store sales staff that at present, in the terminal sales market, the ID.7 VIZZION time-limited subsidy is about 40,000 yuan, and the ID.4 CROZZ and ID.6 CROZZ time-limited subsidy is about 60,000 yuan.

According to the plan, FAW-Volkswagen will challenge the annual sales target of 1.9 million ~ 2 million units this year. In this regard, FAW-Volkswagen also told reporters: "In the face of rapid changes in the automobile market, FAW-Volkswagen has accelerated its strategic transformation, adhered to the product strategy of 'oil and electricity together', strived to maintain the traditional advantages of fuel vehicles, enhanced the competitiveness of new energy products in the new track, and will provide more intelligent pure electric and hybrid products in the future." ”

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