2,000 vacancies, employees lining up to be laid off? dongfeng honda starts laying off production line workers
2024-09-11
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dongfeng honda is at the center of the storm.
honda motor is probably the most aggressive automaker in optimizing labor costs and reducing production capacity in the chinese market. after guangqi honda laid off more than 2,000 employees in may, on september 9,it is reported that dongfeng honda, a joint venture between honda motor and dongfeng motor group, began soliciting voluntary resignation employees in late august, mainly involving production personnel in three gasoline vehicle factories.honda plans to halt production at one of its plants with an annual production capacity of 240,000 vehicles in november.
△the picture shows dongfeng honda workers working in the final assembly workshop. (photo provided by cnsphoto)
an insider who has worked at dongfeng honda for two years confirmed thatthis time, dongfeng honda provided nearly 2,000 resignation channels, and the compensation could be given as "n (years of service) + 3".the employees who were laid off were mainly production line workers. this was the first time the employee had experienced a large-scale layoff since joining dongfeng honda.because the compensation plan was so expensive, there was even a phenomenon of employees lining up to grab a spot.
in response, the company said that the optimization was aimed at better improving corporate operational efficiency and accelerating strategic transformation.the optimization is mainly targeted at the production area, and the method of voluntary resignation of employees is adopted, and employees are given appropriate and reasonable compensation plans.
dongfeng honda said:judging from the implementation feedback, many former employees expressed satisfaction with the compensation plan.
on september 10, dongfeng honda's official weibo account posted that in order to ensure the company's sustainable operation and accelerate the electrification transformation, dongfeng honda will further improve the efficiency of personnel in the production field. this personnel optimization is a phased adjustment of the company's strategic transformation. the company will adhere to the "people-oriented" corporate philosophy, fully consider the wishes of employees and formulate reasonable solutions in accordance with laws and regulations.
there were early signs of dongfeng honda's large-scale layoffs.due to its sluggish performance in the chinese market, it plans to cut its fuel vehicle production capacity in china by 30% through measures such as closing factories, reducing its annual production capacity from 1.49 million vehicles to 1 million vehicles.the production cuts are the largest on record among japanese automakers.
in addition, public data shows that honda's sales in the chinese market from 2021 to 2023 will be 1.5615 million, 1.3731 million, and 1.2342 million, respectively, down 4%, 12.07%, and 10.12% year-on-year. from january to august this year, the cumulative sales were 525,432 vehicles, down 27.2% year-on-year, and down 44.3% year-on-year in august.
dongfeng motor group's august 2024 production and sales report released by dongfeng group co., ltd. shows thatdongfeng honda's sales in the first eight months of this year were 275,915 vehicles, a year-on-year decrease of 19.05%.
with the rapid growth of the new energy vehicle market, the fuel vehicle market is facing unprecedented challenges, which has put pressure on many joint venture automakers. not only dongfeng honda, but also many other joint venture automakers have taken efficiency optimization measures to maintain competitiveness and sustainable development through strategic adjustments.
some analysts said that the constant news of "layoffs" and "optimizations" in joint venture automakers reflects the fierce competition in the current industry. especially in the new energy vehicle market, joint venture automakers are actively accelerating reform and transformation through various measures.
take dongfeng honda as an example. the company is not only optimizing personnel on the production side, but also increasing the production capacity of 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. three new energy models have been unveiled, among which lieguang e:ns2 is already on sale, and lingxi l and ye s7 will also be launched one after another.
china business news is compiled from daily economic news, china business news, etc.
