The outbreak walks of life have a huge impact on the automotive industry has also been severely affected, although the domestic epidemic has been brought under control, businesses are beginning to He ordered the resumption of production resumed, but the epidemic is still spreading overseas. Currently, the US has become the largest number of people infected by countries around the world, the latest statistics have been infected 240,000 people. The current US Big Three auto companies, Fiat Chrysler (referred to as FCA), Ford, General Motors North America and Europe in many factories are in a suspended state, in response to the epidemic, three are currently selecting a pay cut to keep the company operating.
FCA layoffs plus pay cuts
reported that some time ago, FCA North America, approximately 2,000 employees will be laid off. FCA has advised nearly 3,000 contract workers in 2,000 people working in the United States, Canada and Mexico, due to plant outages need to save money, the company will suspend some projects, external support subcontracting companies have been asked to suspend operations. FCA also become the next epidemic first layoffs car prices. Recently, FCA announced that from April to June this year, FCA’s staff will temporarily pay cut 20 percentage. In addition, FCA-related high-level pay cuts are more stringent, in which the CEO Mai Mingkai (Mike Manley) salary levels will be reduced by half, member of the Executive Council would pay cut 30%, FCA chairman John middot; Elkann (John Elkann) and member of the board of directors will give up the remaining salary in 2020.
layoff did not improve the economic situation of the FCA, the company can only be maintained by running a pay cut, the general staff is temporary pay cuts, the executives a long time pay cut. FCA had revenues will depend on the North American market, and now the United States as the worst areas affected by the epidemic, which has become a business case in three US car firms worst. If the epidemic continues longer, it is likely to continue long layoffs or pay cuts extended staff.
Ford executives take a pay cut
Ford plan, the percentage of 20 percent to 50 300 former company executives emoluments will be delayed for at least five months of issuance, which executive chairman Bill middot; Ford (BillFord) to defer payment of full wages, and CEO Han Kai special (Jim Hackett), COO Jim middot; Farley (Jim Farley) and CFO Tim middot; 50 percent Stone (Tim Stone) salary deferment. This disclosure car prices by Bill middot; Ford base salary in 2018 was $ 1.7 million base salary Han Kai special compared with $ 1.8 million.
Ford focused on management pay cuts, this is because the management itself is relatively high salaries, pay cuts may save more funds, and these management generally there are other benefits, pay cuts less affected their lives, it can be seen Ford’s good for concern than the general staff of the FCA. It is reported that Ford plans as early as April 6 to restart some factories in North America, will be the most profitable models begin production as soon as possible in order to increase cash flow, including the F-150 full-size pickups and heavy-duty trucks, commercial trucks and SUV, Ford can be seen currently It is still the most profitable F-150 series pickup. The current epidemic situation in the US, the return to work plan may be stranded.
common interest paid for the pay cut staff
March 27, General Motors announced that from April 1, the company will postpone the release of nearly 70,000 staff 20 percentage cash compensation employees will be temporarily deducted salaries paid off in 2021 by 15 March, together with interest. Specific view, 20 percentage of the general staff salary deferment; 20 executives in addition to a percentage of salary deferred payment, but also to take a pay cut 5 percent, or 10 percentage, but does not include a pay cut bonuses, stock options or other incentives; member of the board of directors 20 percent reduction in total compensation. In addition, 6,500 manufacturing employees can not work remotely, GM decided to release 75 percent of its salary, rather than let them cut the dole.
Now it seems that common general staff is the best, although delayed salaries, but pay for this part of the interest on delayed salaries, full no way its employees work 75 percent payroll. For executives, only a pay cut,Other income did not move. General can be said that three US car firms operating in the best of cases, compared to FCA and Ford’s major markets major markets in the United States, it is common in the United States and China, currently the Chinese side can fully resume production resumed, and methodically to carry out the work, which all have a positive impact on the entire organization.
written in the last
by a pay cut strategy, you can see the three major US car firms operating conditions, in which case the worst FCA, also only pay cut layoffs, which with its only US market good income related to European and Asian markets are losing money FCA income was bad; Ford’s market, though it is mainly the United States, but the F-150 series pickup perennial occupy the US sales charts first, the company’s overall earnings situation will better; in general these markets are divided into the United States and China, which the Chinese share market is still higher, so in the United States hit severely, still can be balanced revenue within the group by China’s profit. This also proves the benefits of the market for a car company widely distributed, such a market will not be affected, which led to the entire company’s operations blocked.