FAW-Volkswagen's Foshan Branch Adjustment and Market Situation
TapTechNews May 26 - There were earlier reports that the Foshan branch of FAW-Volkswagen initiated personnel optimization. It was alleged that within the batch of personnel who joined the company from July 2019 to the expiration of their labor contracts in July 2024 (involving 690 people), the company planned to select 565 people with relatively lower performance rankings and not renew the labor contracts with the employees on the grounds of the expiration of the labor contract.
In response to this, FAW-Volkswagen stated that this adjustment is a normal behavior of the Foshan branch not renewing contracts for some employees whose first labor contracts expire. This situation has been pre-reported to the relevant local government departments in advance. FAW-Volkswagen has legally and in accordance with regulations provided timely and full financial compensation to this batch of employees. In addition to the normal payout of N times the economic compensation amount for this batch of employees, additional compensations such as special welfare and performance bonuses have also been provided. This adjustment will not affect the daily production and operation of the Foshan branch.
Currently, the era when joint-venture auto companies occupy half of the territory is becoming a thing of the past. According to statistics from the China Association of Automobile Manufacturers, in April this year, the market share of self-owned brand passenger cars reached a historical high of 63.5%, which means the market share of joint-venture brands is less than 40%; TapTechNews learned from the data of the China Passenger Car Association that in April this year, the sales volume of FAW-Volkswagen was 119,000 units, a year-on-year decline of 15.6%, and the market share was 7.8%.
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