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Revenue is linked to sales! Avita management takes the initiative to adjust salary

2024-07-18 Update From: AutoBeta NAV: AutoBeta > News >

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According to reports, Avita's management took the initiative to adjust its salary structure, dozens of managers above the director level collectively signed a new pay agreement, this adjustment does not involve ordinary employees. After the adjustment, management's monthly income is directly linked to sales and increases the floating proportion, while the year-end sales target management pressurizes an additional 10,000 vehicles.

According to the Tramway report, as the decision-maker and executor of the company, the performance of the management is directly related to the operational efficiency and strategy implementation of the company. Therefore, by increasing the management compensation, we can effectively stimulate the enthusiasm and creativity of the management team and promote the performance of the company. This kind of salary adjustment behavior may also be a positive response to external changes, whether it is market competition or talent competition, companies need to maintain a certain salary competitiveness in order to attract and retain key talents. For Avita, management taking the initiative to adjust salary is also an incentive and management strategy, which not only shows expectations and confidence in the future development of their own company, but also reflects the drive of Avita's young management who are mainly born in the post-80s generation. Dare to tie yourself to the collective to hit the goal.

Changan Automobile, the most aggressive company in the transformation of new energy, launched the "Shangri-La" plan as early as 2017, announcing that it would completely stop selling fuel vehicles in 2025. At present, Changan Automobile owns three new energy brands, namely, Avita, Deep Blue and Qiyuan. In the planning of Changan Automobile, Avita is the strategic support of Changan New Energy, competing with new power and luxury brands, but it is not easy to achieve this goal.

At the 2023 Changan Automobile Global Partnership Conference, Zhu Huarong, chairman of Changan Automobile, announced that Avita Automobile will launch four products by 2025, with sales of more than 30-400000 vehicles. Of these, the target is 100000 vehicles in 2023, but according to the current market performance, the pressure on Avita is enormous.

At present, Avita has launched two models, Avita 11 and Avita 12. In 2023, Avita sold 23485 vehicles for the whole year, with an average monthly sales of about 2000. The annual target completion rate is only 1/4 of the planned, of which Avita 11 is 21665 and Avita 12 is 1820. It is understood that Avita 12 listed in November 2023, the price range is 30.08-400800 yuan, the new car positioning luxury medium and large pure electric cars, based on Changan, Huawei, Ningde era jointly developed intelligent electric vehicle network connection vehicle platform (CHN) to build, will provide rear-drive, four-wheel drive version.

Or in order to reverse the situation of Avita, Avita Technology carried out a personnel reshuffle in December 2023. Tan Benhong, former chairman of Avita Technology and CEO, became deputy secretary of the party committee of Changan Automobile and was no longer in charge of Avita Automobile related business. Chen Zhuosheng, former vice president of Avita, was appointed president and took over Avita's automobile management business, while Zhu Huarong, chairman of Changan Automobile and secretary of the party committee, served as chairman.

In addition, in November 2023, Changan Automobile signed a Memorandum of Investment Cooperation with Huawei, which proposes to establish a company engaged in the research, design, production, sales and service of automotive intelligent systems and components solutions. it also plans to integrate the core technologies and resources of the smart car solution business into the new company. According to the Changan Automobile announcement, the business scope includes car intelligent driving solutions, car intelligent cockpit, smart car digital platform, smart car cloud, AR-HUD and smart lights and so on. It also means that Avita may be the first to use Huawei's latest iterative technology, which will be one of Avita's way out, but whether this will help Avita achieve a breakthrough in 2024 remains to be seen.

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