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2,000 layoffs? compensation n 2 1? dongfeng honda responds

2024-09-10

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regarding the personnel optimization event that has recently caused heated discussions, dongfeng honda responded to the reporter of china business news that dongfeng honda's optimization is to better improve the company's operational efficiency and accelerate strategic transformation. the optimization will mainly focus on the production field, and adopt the form of voluntary resignation of employees, and provide employees with appropriate and reasonable compensation plans.

it has been reported earlier that dongfeng honda is facing a strategic adjustment and plans to implement a large-scale layoff. it is estimated that the number of employees affected will reach 2,000. dongfeng honda adopts the "n+2+1" compensation plan, where "n" represents years of service, "2" refers to 2 months' salary, and "1" means an additional 1 month's bonus.

dongfeng honda said that based on the implementation feedback, many former employees were satisfied with the compensation plan.

as the development of new energy continues to accelerate, dongfeng honda is not the only joint venture automaker that has encountered transformation problems.

with the increase in the penetration rate of the domestic new energy vehicle market and the rise in the market share of chinese brands, joint venture brands that are relatively slow in the new energy transition are currently under great pressure. according to the data from the china passenger car association, in august 2024, the retail penetration rate of new energy vehicles reached 54%, an increase of 16.7 percentage points year-on-year; the domestic retail share of domestic brands was 63.4%, an increase of 11.4 percentage points year-on-year.

at present, most joint venture brands are making slow progress in their transformation to new energy. optimizing staff efficiency and changing organizational process structures have become the options for some joint venture car companies to accelerate their transformation to new energy. some analysts pointed out that the constant news of "layoffs" in joint venture car companies reflects the fierce competition in the current industry, especially in the new energy market. joint venture car companies are actively taking various measures to accelerate transformation.

take dongfeng honda as an example. the company is not only optimizing its personnel at the production end, but also increasing its production capacity for new energy vehicles. it is reported that dongfeng honda's new energy plant will officially start operation in the near future to produce pure electric products such as lingxi and ye series, and fully promote the electrification process.

according to the plan, dongfeng honda expects to launch more than 10 pure electric models by 2030, of which three new energy models have been unveiled. among them, the lieguang e:ns2 is already on sale, and the lingxi l and ye s7 will also be launched one after another.