Compile/Crayon Shinchan
Figure/source network
When the epidemic sweeping the world presses the pause button for the automobile industry, global automobile companies have to tighten their belts to live.
General Motors temporarily cut its salary by 20%
According to foreign media reports, on the 26th local time, General Motors said it was freezing the work of new car projects and would postpone the payment of white-collar workers' wages to save cash. At the same time, the company said on Thursday that it will extend the time to close the North American factory beyond March 30, and it is temporarily impossible to decide when to resume operations.
Among them, all salaried employees will be temporarily reduced by 20% to save cash for the company in case of COVID-19 epidemic, and this decision will affect nearly 69,000 employees.
The above salary reduction decision will take effect from this Wednesday (March 25th), and the salary withheld by employees will be paid in one lump sum with interest before March next year 15. At the same time, the company's senior management team will accept a salary reduction of up to 65,438+00% and postpone the payment of 20% of cash salary.
In addition, GM will let 6,500 employees who can't work at home take a vacation, because many of them are engineers working in factories. Before resuming production, their wages will only pay 75% of their previous total wages, and their length of service and medical benefits will be preserved.
GM expects that these austerity measures will save it a lot of cash. Since the temporary closure of the North American factory last week, GM has been trying to improve its balance sheet. On Tuesday, it announced that it would borrow $654.38+06 billion from the existing credit line and double its cash reserves to cope with the impact of the novel coronavirus epidemic.
GM spokesman Jim Kane (Jim? Cain) said in an e-mail, "Before the outbreak of the novel coronavirus epidemic crisis, GM's business and balance sheet were very strong, and the measures we are taking now will help ensure that we will resume our growth momentum as soon as possible after the crisis."
Recently, credit rating companies in the global automobile industry are paying close attention to the automobile industry, and Standard & Poor's (Standard? & amp？ Poor? S) and Moody's Investor Services (Moody? s？ Investors? Service) put GM on the negative watch list on Wednesday.
Part of the compensation of Ford executives was delayed for five months.
Corresponding to GM, due to the novel coronavirus epidemic, factories closed, sales fell, and financial pressure was enormous. Standard & Poor's Global Rating (S&; p？ Global? Ratings) downgraded Ford's credit rating to "junk" and warned that it would be further downgraded. The company announced that it would cut executive compensation.
Ford Motor Company said that from May 1 day, 20% to 50% of the top 300 executives of the company, including executive chairman Bill Ford, will be delayed for at least five months. Ford will be paid in full, while CEO Han will be paid in half.
Han Kate said that Ford's goal is to survive the current crisis without abolishing jobs. The above decision was made on the one hand because the current situation has reached a certain level, and on the other hand because he hoped that all the existing team members of Ford would stay and make contributions to the post-crisis revival.
However, Han pointed out that if the unfavorable situation lasts longer than he expected, or becomes more serious, then layoffs will be difficult to avoid.
Hankate also said that other money-saving measures taken by Ford include delaying salary increase more widely, suspending overtime payment for salaried employees, and freezing recruitment in non-critical areas.
However, he added, Ford employees will continue to get medical insurance, and those who are quarantined because of possible exposure to COVID-19 virus will get paid leave.
Ford Motor Company has previously announced that it is taking a series of measures to further ensure the company's cash flow stability, including making full use of two credit lines of up to 65.438+054 billion US dollars and suspending dividend distribution to enhance its financial flexibility in the short term.
FCA and Tesla temporarily laid off some employees.
In addition to the salary cuts of GM and Ford, FCA, one of Detroit's three major auto giants, recently said that it would lay off 2,000 contract workers in North America.
Tesla recently announced that it will temporarily lay off some employees due to the declining demand caused by the novel coronavirus epidemic crisis. Axel, head of Tesla's Nordic region? Tangen (Axel? Tangen) said in an email to Norwegian employees that Tesla plans to temporarily lay off employees due to slowing demand. Tangen also said that layoffs will begin in April, but he did not specify how many people will be affected.
At the same time, it is reported that Tesla also plans to reduce the field staff of its Nevada battery factory by about 75%. Panasonic, a partner of Tesla battery, said that it will reduce the production scale of the Nevada factory this week and then close the factory? 14? Jesus Christ.
Prior to this, Tesla temporarily closed its super factory in fremont, California and most solar panel factories in Buffalo, new york on March 24th under the ban of the local government.
Domestic car companies cut their salaries to save themselves.
The negative impact of the epidemic on the automobile industry is unprecedented. On the other side of the ocean, the Detroit Big Three and the new energy overlord chose to lay off employees, reduce wages and tighten their belts. At the same time, domestic car companies have also ushered in a wave of self-help.
On March 5th, a note about the salary and welfare adjustment of SAIC Chase in 2020 was circulated on the Internet. According to the document, SAIC· Chase's performance bonus, which accounts for 35% of his salary, will be "discounted" from March, and other benefits such as annual leave allowance and clothing expenses of the technical center will also be cancelled.
In this regard, SAIC Chase responded that the adjustment was not a temporary act affected by the COVID-19 epidemic, but an adjustment made by the company according to the current situation of the industry and the company. The purpose is to break the inertia thinking of the "iron rice bowl" and introduce the mechanism of survival of the fittest. Only in this way can we face the brutal competition in the automobile industry.
Up to now, SAIC Chase, SAIC Zhonghui, SAIC Passenger Cars and SAIC-GM-Pan Asia have been exploded to take salary reduction measures, and even SAIC-Volkswagen and SAIC-GM are also facing salary reduction.
In addition to SAIC, Weimar Automobile, BYD and Bojun Automobile also announced the implementation of different levels of salary reduction policies. According to incomplete statistics, at present, 14 car companies in China have announced salary cuts.
In addition to pay cuts and layoffs, car companies have also begun to save themselves by reducing annual sales targets, postponing electrification and automation projects, reducing huge expenses, and maintaining cash flow to cope with the impact of the epidemic.
In this regard, china automobile dealers association's Deputy Secretary-General, Mayor, said earlier: "Whether it is salary reduction or layoffs, enterprises have to take measures to solve the pressure of operation and capital. We must look at the phenomenon of layoffs and salary cuts objectively. "
Although salary reduction and layoffs can alleviate the immediate difficulties for car companies, they still need to find another coup for the long-term difficulties. This epidemic will accelerate the final elimination of the global automobile industry. With the gradual easing of the epidemic, the terminal market will begin to thaw and the automobile industry will gradually recover.
This article comes from car home, the author of the car manufacturer, and does not represent car home's position.