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BYD cuts salary to ease liquidity pressure
July 23, 2012, Monday
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BYD Auto Co, a Chinese manufacturer of small-displacement and electricity-powered cars, plans to lower the ratio of performance-related payment from 33 percent to 15 percent for the June-September period, as the company is facing a liquidity crunch due to a significant decline in auto sales.
The salary cut is estimated to reduce the total earnings of employees by 14 percent during the period, which equals a 240 million yuan (US$37.7 million) reduction in the company's labor costs.
BYD delivered a total of 176,700 vehicles from January to May, down 11.56 percent from a year earlier. The company raised 3 billion yuan through issuing five-year bonds in June to improve its cash flow.
Jiangling acquires Fuqi
Jiangling Motors Group Co, an automobile producer based in Jiangxi Province, acquired local SUV maker Huaxiang Fuqi Automobile Co at the end of last month in a move to expand its production capacity.
Jiangling Motors plans to invest 500 million yuan to restructure Huaxiang Fuqi's production facility into an assembly plant capable of producing 50,000 units each year. The plant will make Jiangling-branded commercial vehicles starting from next year.
Jiangling Motors is expected to have a total annual production capacity of 950,000 units after the reorganization.
Joint venture gets nod
Jaguar Land Rover and Chery Automobile Co have gained the green light from China's Ministry of Environmental Protection to form a 50-50 joint venture in the country.
The proposed JLR-Chery venture will be located in Changshu, Jiangsu Province and will produce Jaguar, Land Rover and joint-venture branded vehicles. A research and development center is in the pipeline to accompany the production facilities.
According to the ministry's announcement, the joint venture will have an annual output of 130,000 units. The project is still subject to the approval of the National Development and Reform Commission.
Geely slashes costs
Chinese carmaker Geely Automobile Holdings is moving its Englon SC7 production lines from Shanghai's Jinshan District to Xiangtan, Hunan Province in an effort to reduce costs and increase competitiveness.
The carmaker said centralizing production of the same-platform vehicles will help it improve production efficiency and save costs in purchasing and logistics.
The move might be the company's first step to integrate current seven manufacturing bases into four amid sales slowdown. In 2011, Geely's car sales rose only 1 percent to 420,000 from a year earlier, while sales of Englon sedans fell 5 percent during the same period.
Shanghai VW booms
Shanghai Volkswagen, SAIC Motor Corp's joint venture with Volkswagen AG, said its sales in June rose 8.4 percent from a year earlier to 106,286 units, including 87,246 VW-branded cars and 19,040 units of Skoda.
The carmaker sold 636,691 units in the first six months, up 10.4 percent from a year earlier. The New Passat chalked up sales of 13,918 units in June, with its accumulative sales this year approaching 100,000 units.
Shanghai Volkswagen saw its 8,000,000th sedan roll off the production line on June 28.
The salary cut is estimated to reduce the total earnings of employees by 14 percent during the period, which equals a 240 million yuan (US$37.7 million) reduction in the company's labor costs.
BYD delivered a total of 176,700 vehicles from January to May, down 11.56 percent from a year earlier. The company raised 3 billion yuan through issuing five-year bonds in June to improve its cash flow.
Jiangling acquires Fuqi
Jiangling Motors Group Co, an automobile producer based in Jiangxi Province, acquired local SUV maker Huaxiang Fuqi Automobile Co at the end of last month in a move to expand its production capacity.
Jiangling Motors plans to invest 500 million yuan to restructure Huaxiang Fuqi's production facility into an assembly plant capable of producing 50,000 units each year. The plant will make Jiangling-branded commercial vehicles starting from next year.
Jiangling Motors is expected to have a total annual production capacity of 950,000 units after the reorganization.
Joint venture gets nod
Jaguar Land Rover and Chery Automobile Co have gained the green light from China's Ministry of Environmental Protection to form a 50-50 joint venture in the country.
The proposed JLR-Chery venture will be located in Changshu, Jiangsu Province and will produce Jaguar, Land Rover and joint-venture branded vehicles. A research and development center is in the pipeline to accompany the production facilities.
According to the ministry's announcement, the joint venture will have an annual output of 130,000 units. The project is still subject to the approval of the National Development and Reform Commission.
Geely slashes costs
Chinese carmaker Geely Automobile Holdings is moving its Englon SC7 production lines from Shanghai's Jinshan District to Xiangtan, Hunan Province in an effort to reduce costs and increase competitiveness.
The carmaker said centralizing production of the same-platform vehicles will help it improve production efficiency and save costs in purchasing and logistics.
The move might be the company's first step to integrate current seven manufacturing bases into four amid sales slowdown. In 2011, Geely's car sales rose only 1 percent to 420,000 from a year earlier, while sales of Englon sedans fell 5 percent during the same period.
Shanghai VW booms
Shanghai Volkswagen, SAIC Motor Corp's joint venture with Volkswagen AG, said its sales in June rose 8.4 percent from a year earlier to 106,286 units, including 87,246 VW-branded cars and 19,040 units of Skoda.
The carmaker sold 636,691 units in the first six months, up 10.4 percent from a year earlier. The New Passat chalked up sales of 13,918 units in June, with its accumulative sales this year approaching 100,000 units.
Shanghai Volkswagen saw its 8,000,000th sedan roll off the production line on June 28.
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