3 people do the work of 5 people, but get the salary of 4 people! Chery: Distorted interpretation... Netizens: It's too hard for workers
2024-08-07
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Chery is not the only car company that is "rolling" its employees.
Recently, a screenshot of a Chery Management Committee meeting in July sparked heated discussions. According to the screenshot, in terms of insisting on improving staff efficiency, the article mentioned "Remember not to understand it as simple addition and subtraction, and truly achieve 3 people doing the work of 5 people and getting the salary of 4 people." In response to this, a person from Chery Holdings responded to Blue Whale News and said that the screenshot was indeed the content of an internal publication, but this is a normal industry performance management rule to improve staff efficiency, and it has been misinterpreted.
Beijing Business Daily
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Some netizens commented that "reducing the number of staff will increase the burden and efficiency may not necessarily improve" and "life is too difficult for workers."
Some people also said, "Many companies are like this now" and "This job is acceptable."
Chery is the only leading domestic brand that has not yet been listed. At the end of 2023, there were reports that Chery Automobile was considering submitting an IPO application as early as 2024, with a valuation of 150 billion yuan. However, a senior executive of Chery responded that "the company is actively preparing for listing, but the rest of the information is inaccurate."
In 2023, Chery Group's annual revenue exceeded 315.1 billion yuan, a year-on-year increase of 50.6%; annual automobile sales reached 1.88 million units, a year-on-year increase of 52.6%; and exported 937,000 vehicles, ranking first in Chinese brand passenger car exports for 21 consecutive years. Although sales hit a new record high, Chery's new energy vehicle sales accounted for less than 10% in 2023.
Yin Tongyue, chairman of Chery Holding Group, said in the fourth quarter of 2023 that Chery Automobile was "a very early riser and a latecomer" in the field of new energy. He mentioned this year that Chery would return to the top three in new energy by mid-year and become the second in the new energy industry by the end of the year, and that Wang Chuanfu (Chairman of BYD) would be seen from behind.
According to the data from the China Passenger Car Association, Chery ranked second only to BYD (002594.SZ) in the wholesale sales ranking of manufacturers in the first half of this year, but ranked only tenth in the retail sales ranking of new energy manufacturers. In July, Chery's new energy penetration rate was 23%. The penetration rate of new energy vehicles among domestic brands has exceeded the 50% mark.
The above-mentioned meeting document mentioned that (Chery) Holdings achieved the challenge version of the target in terms of profit and operating cash flow in the first half of the year, but revenue and sales volume did not reach the target and there was a large deviation in the operation in the past two months. Therefore, we must make every effort to expand the market in the second half of the year and try every means to win the "Tashan Battle". We must work hard to improve the operation in the second half of the year and plan for higher goals next year.
In the first half of this year, Chery sold a total of 1.1006 million new vehicles, a year-on-year increase of 48.4%; among them, sales of new energy vehicles reached 180,900 units, a year-on-year increase of 181.5%; overseas exports reached 532,000 units, a year-on-year increase of 29.4%.
It is worth mentioning that Chery is on the Fortune Global 500 list for the first time. Regarding its first entry into the Fortune Global 500, Yin Tongyue, Party Secretary and Chairman of Chery Holding Group, said: "Although we have just 'entered' the Fortune Global 500, we cannot reach a thousand miles without accumulating small steps, and we cannot achieve great victory without accumulating small victories. Over the past 27 years since its founding, all Chery people have proved through their continuous struggle that even when the outside world repeatedly considers it 'impossible', we can still challenge the limits and create unlimited dreams with limited resources. I believe that this small step today will witness a big step tomorrow and pave the way for Chery's continuous transcendence in the future."
According to the Daily Economic News, amid the price war in the auto market, automakers are generally under pressure. Reports show that multinational automakers are also "rolling" employees. General Motors recently announced a new employee performance evaluation and reward system to motivate outstanding employees and eliminate underperforming employees. According to an internal memo from GM, GM will give bonuses of up to 150% to the top 5% of employees to attract and retain talent. This move also puts more pressure on underperforming employees to either improve their performance or leave.
GM said that in order to achieve the company's ambitious goals, it needs clearer performance standards and responsibility systems, and the company hopes to build a high-performance workforce. However, GM China has not yet responded to whether the employee performance evaluation and reward system is also applicable to the Chinese team.
In addition, American auto giant Ford is also adjusting its talent management system. Ford CEO Jim Farley said in a financial report conference call earlier this year: "It is not enough to have the right talent. In the past two years, we have realized that we must establish the right performance management system. This is a fundamental change in the way the company operates."
Stellantis recently announced layoffs. The company is considering cutting more than 1,200 engineering positions in Europe and the United States, and plans to offer a new round of voluntary buyout programs to U.S. salaried employees to cope with the challenges brought about by declining profits and electrification transformation.
Editor: Wang Naixin, based on Cailianshe, Red Star News, National Business Daily, China Business News, etc.
Image: Beijing Business Daily, screenshots from Chery's official website, Visual China
