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One day, the joint venture brand laid off thousands of people! Official response: regular periodic adjustment

2024-03-04 Update From: AutoBeta autobeta NAV: AutoBeta > News >


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On July 25, in response to the rumors of "large-scale layoffs at GAC Toyota", GAC Toyota officially responded that the layoffs were a normal phased adjustment for some labor dispatched employees and did not involve regular employees. According to the changes in the market situation, after careful consideration, GAC Toyota finally stopped some dispatch in accordance with the agreement with the labor dispatch company.


Earlier, according to media reports, GAC Toyota said in a statement that in view of recent production levels, the company had terminated the contracts of about 1000 labor dispatch employees ahead of schedule, and the company would give financial compensation in accordance with the law. and explain the situation to those affected. Three employees, who spoke on condition of anonymity, told the media earlier that GAC Toyota terminated its contract and offered compensation over the weekend.

At the same time, a suspected GAC Toyota layoff plan was exposed on the Internet. According to the pictures posted on the Internet, GAC Toyota layoff compensation was given to Never4. Number4 includes: economic compensation (average salary of total income over the past 12 months) + wages in lieu of notice (June base salary and housing allowance) + gratitude payment (average salary of all income over the past 12 months) + pre-paid mid-year bonus (2 months' base salary) + additional payment from 22 to 31 July. The prerequisite for release is the signing of a negotiated termination agreement on July 21 and the confirmation of departure procedures such as check-out by August 3.


According to the official response, GAC Toyota laid off some labor dispatched employees and did not involve regular employees. It is understood that GAC Toyota has negotiated with the labor dispatch company to ensure that the relevant personnel can receive financial compensation in a timely and full manner. In addition, GAC Toyota is also working with labor dispatch companies to recommend re-employment for laid-off employees. However, GAC Toyota officials did not mention the number, positions and specific work content of those laid off in their reply.

Data show that Guangzhou Auto Toyota plant annual production capacity of about 1 million vehicles, mainly responsible for the production of Camry (Camry), Levin and bZ4X models. As of 2022, the total number of employees of Guangzhou Auto Toyota is 19000, of which 17200 are social insurance participants and more than 1800 are non-contributors.


If the above layoffs are true, it means that GAC and Toyota will lay off more than half of the labor dispatch staff this time. As for the reasons for layoffs, industry insiders believe that the decline in sales in China may be related to the pressure of price war in the car market.

Since 2023, "price war" has been the key word of the automobile industry. according to incomplete statistics, up to now, more than 40 car brands and hundreds of models in China have participated in the price war by means of factory subsidies or price cuts by dealers. The discount range is generally 30, 000-100000 yuan. As one of Toyota's joint ventures in China, Guangzhou Auto Toyota is also affected by the domestic price war. To boost sales of electric cars in China, Guangzhou Auto Toyota joined the price war in February, when its pure electric model bZ4X launched a time-limited purchase campaign with a direct reduction of 30, 000 yuan, but the sharp price cut did not boost sales.


From January to June this year, Toyota's cumulative sales in China fell 2.8 per cent from a year earlier to 879400 vehicles, according to the data. Subdivided into joint venture brands, according to KuaiBao's production and sales data released by GAC GROUP, GAC-Toyota's cumulative wholesale sales in the first six months of this year were 452800 vehicles, down 9.48 per cent from the same period last year. It should be noted that GAC Toyota's layoffs and poor sales are only a microcosm of many joint ventures. In early July, Mitsubishi Motors also said it would cut staff costs in its joint venture with China's GAC GROUP, hoping to revive its sales in the Chinese market. In addition, sales of joint venture brands, including Guangzhou Automobile Honda, Dongfeng Honda and Dongfeng Nissan, have all declined in China, with Japanese brands' market share in China falling to 14.9 per cent in the first half of this year from 20 per cent in the same period last year, according to the China Automobile Association.


Today, China has become the largest single automobile consumer market in the world, and it is also one of the most competitive automobile markets. with the rise of independent brands and the new energy head brands represented by BYD and Tesla are rapidly eroding the market share of fuel vehicles, the follow-up joint venture brands that started late in electrification will also be under more pressure.

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