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Volkswagen China's maximum compensation for layoffs N+6 imported car business has become a "hard-hit area"
Volkswagen China layoffs: Behind the N+6, is the rise of Hefei or the decline of imported cars?
Recently, the news of Volkswagen China's layoffs swept like autumn wind sweeping leaves, which aroused widespread concern among industry insiders and melon-eating people. According to 21 Finance and Economics, the layoffs are mainly concentrated in the imported car business, with a scale of nearly 100 people, and the compensation plan can reach up to N+6, which can be called "the most conscientious layoffs in history"? Let's peel back and see what's behind it.
First of all, let's gossip about what kind of fairy treatment is this "N+6"? To put it simply, N represents the employee's years of service, and 6 is the monthly salary for additional compensation. This is not an ordinary severance package, it is simply a "luxury version of the severance package" given by Volkswagen China to employees! Of course, this may also include various compensation and benefits, the details of which are unknown, but the numbers alone make this compensation quite attractive. This can't help but remind people of the joke of "unemployment after graduation" that we chased together in those years, in contrast, Volkswagen China's "N+6" is simply a clear stream in the workplace!
However, behind this "deluxe version of the resignation package", there is a shadow of Volkswagen China's strategic adjustment. The layoffs are not coincidental but a direct reflection of Volkswagen's strategic shift to Hefei in China. "In the future, the import car business may be merged with Volkswagen Anhui, and Volkswagen Anhui will sell the Touareg brand." So said a person close to Volkswagen China. This sentence is very informative! It's like a family that moves all the old things to a new house, and some old furniture can only be reluctantly cut off. The import car business, in this new strategic layout, seems to have become that "old furniture".
So why is Volkswagen China shifting its strategic focus to Hefei? This starts with the Volkswagen Group's global strategy. The Volkswagen Group launched its performance plan last year with the goal of improving efficiency by 20 percent by 2026. In order to achieve this goal, they can be described as "eight immortals crossing the sea, each showing their magical powers", and layoffs are only one of the means. Hefei, as an important town in the new energy vehicle industry, has naturally become the focus of Volkswagen's strategic layout in China. This is like a large-scale "commercial version of the Three Kingdoms", Volkswagen Group chose to re-layout and create a new "sphere of influence" on the "fertile soil" of Hefei.
Of course, Volkswagen China's layoffs are not alone. Previously, it was reported that Volkswagen will lay off hundreds of employees at its headquarters in China, and it has also carried out large-scale layoffs in Europe, although Volkswagen has denied the specific number of layoffs, but the signal of "reducing costs" has been very clear. This is like a global "economic winter", major enterprises are trying to "survive the winter", and layoffs are helpless.
So, what does this layoff mean for Volkswagen China and consumers?
For Volkswagen China, this is a strategic adjustment and a painful transformation. They need to find new growth points in the fierce market competition, and Hefei may be the future they are betting on. For consumers, this layoff may mean an adjustment in the import car business, and may even affect after-sales service. However, in the long run, Volkswagen China's strategic adjustment is ultimately aimed at enhancing product competitiveness and providing consumers with better products and services.
Finally, let's summarize:
Behind the layoffs of Volkswagen China and N+6 is strategic adjustment, cost optimization, and a bet on the future. This is both a challenge and an opportunity. Let's wait and see if Volkswagen China can be revitalized again under the new strategic layout! And for those employees who have been laid off, I hope they can find their own world in their new positions!
(Disclaimer: This article is only an interpretation and analysis based on news reports and does not constitute any investment advice.) )
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