FAW-Volkswagen's Foshan Branch Adjustment and Market Situation

TapTechNews May 26th, it was previously reported that FAW-Volkswagen's Foshan branch initiated personnel optimization. Allegedly, within the batch of personnel whose labor contracts expire from July 2019 to July 2024 (involving 690 people), the company plans to select 565 people with relatively lower performance rankings and not renew the labor contracts with the employees on the grounds of 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. FAW-Volkswagen has legally and in accordance with regulations given full economic compensation to this batch of employees in a timely manner. In addition to the normal payment of N times the economic compensation to this batch of employees, additional compensations such as special welfare and performance bonuses have also been issued. 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 country is becoming a thing of the past. According to the data statistics of the China Association of Automobile Manufacturers, in April this year, the market share of self-owned brand passenger cars reached a record high of 63.5%, which means that the market share of joint-venture brands is less than 40%; TapTechNews learned from the data of the 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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