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The price war is getting more and more hurt, Honda's ideal layoffs and high-tech reorganization, and the car market has entered the tide of self-protection?

The price war is getting more and more hurt, Honda's ideal layoffs and high-tech reorganization, and the car market has entered the tide of self-protection?

Luka cars

2024-05-19 17:33Posted in Beijing Automotive Creators

The price war is getting more and more hurt, Honda's ideal layoffs and high-tech reorganization, and the car market has entered the tide of self-protection?

On the bright side, Tesla, Ideal, and Guangqi Honda have laid off employees, and on the back, the head companies are optimizing personnel.

On the bright side, Gaohe ushered in a $1 billion self-rescue, and on the back, Skyrim, and even Weimar are still seeking to reorganize and rebirth.

The price war for a year and a half in a row has not led to a boom in the auto market, but has successively beaten car companies into a state of self-protection.

The price war is getting more and more hurt, Honda's ideal layoffs and high-tech reorganization, and the car market has entered the tide of self-protection?

"The initial stage of this layoff was in the form of active registration, and I could get N+5 compensation, and there is no news that I can take the initiative to apply for a job transfer." Liu Zong, who has been working at Guangqi Honda for more than 5 years, can get a one-time salary of 10 months if he is finally laid off this time. This is a very good result in the economic environment in 2024. This time, Guangqi Honda's layoffs are to first notify various departments of which positions will be eliminated, and then let employees take the initiative to declare.

The layoffs of Guangqi Honda are still different from those in the industry, that is, the compensation is N+5, which may decrease month by month in the later period, but the overall level is higher than the recent level of SAIC Volkswagen N+4, and also higher than the level of N+3 of Toyota and other companies. And the greater incentive amplitude, the more friendly attitude, the signal is to accelerate the streamlining and adjustment of their own architecture. Eventually, the size of the workforce involved is currently between 1,000 and 2,000 people, and the layoffs are mainly related to the manufacturing part, because the sales of gasoline vehicles are lower in the overall market and there is no need for the originally planned production.

The price war is getting more and more hurt, Honda's ideal layoffs and high-tech reorganization, and the car market has entered the tide of self-protection?

Unlike Guangqi Honda's layoffs, Li Auto's layoffs in the same period were more rigid and the sectors in which the layoffs were made. In May, 18% of the layoffs involving more than 5,000 people were exposed, which is actually only the second wave in 2024. Because as early as the beginning of this year, Ideal has accelerated the internal liquidation of low-performing employees, and in 2023, it will be rated as an employee with I and F performance. The ideal layoff is basically that Li Xiang has once again kept up with Musk's rhythm, and the layoffs are non-core functional departments, such as the sales and service department (mainly delivery services, etc.) with an optimization range of more than 400 people, and the recruitment department and intelligent driving team.

From the perspective of the age of layoffs and the amount of compensation, Li Auto has laid off more new employees recruited in recent years, and the compensation amount is also a standard N+1.

The price war is getting more and more hurt, Honda's ideal layoffs and high-tech reorganization, and the car market has entered the tide of self-protection?

In addition to the beginning of the wave of layoffs, Gaohe's restructuring is even more mysterious. The IAUT Group, which provides US$1 billion, is backed by the Right Way Group, a group with zero revenue and a loss of more than HK$20 million in 2023. Regarding Gaohe's self-help, it can only be related to the previous Middle East saying that if a large group intervenes in the guarantee, it is willing to continue to inject funds and start transferring.

Layoffs for squats, the catalyst for the next round of price wars?

There are many speculations and interpretations about layoffs, but there are no more than 2 points, one is to store grain, transform, and prepare for winter, and the other is to save costs, and then continue to fight the price war. The latter, in particular, is a cause for concern.

From the perspective of corporate layoffs, there are more companies that are biased towards the former, and there are not a few companies that are biased towards the latter, but with the release of data from first-mover car companies, it was found that the significance and value of the price war in May are limited, so they have turned to the former one after another.

The price war is getting more and more hurt, Honda's ideal layoffs and high-tech reorganization, and the car market has entered the tide of self-protection?

On April 15, Musk issued an internal letter announcing the start of global layoffs, involving more than 10,000 people. Subsequently, layoffs began, and Tesla's price war began. The perceived effect of price reductions in overseas markets is not significant, but the price reductions in the Chinese market have not brought consistently clear good results.

Specifically, the public data is as follows:

In April 2024, the world began to release news of layoffs and price cuts (April 15 to April 21), Tesla delivered about 5,200 vehicles in China, down 55.6% month-on-month and 49.5% year-on-year, with about 4,600 Model Y units and about 400 Model 3 units.

The price war is getting more and more hurt, Honda's ideal layoffs and high-tech reorganization, and the car market has entered the tide of self-protection?

In the fourth week of April, Tesla officially announced that the Model Y rear-wheel drive version was officially reduced by 14,000 yuan to 249,900 yuan. Under multiple stimuli, Tesla's sales in China finally recovered, with a weekly sales of 14,800 units.

The price war is getting more and more hurt, Honda's ideal layoffs and high-tech reorganization, and the car market has entered the tide of self-protection?

However, in the first week of May, Tesla sold about 11,000 vehicles in China, including about 10,400 Model Y units and 600 Model 3 units;

In the second week of May, Tesla sold 9,800 vehicles in the Chinese market.

In one month, Tesla's weekly sales rose from 1,900 to 14,800 through the price war, which is a good performance. However, if combined with the growth of orders and sales in the entire auto market, Tesla's effect through the new price war is actually limited.

The price war is getting more and more hurt, Honda's ideal layoffs and high-tech reorganization, and the car market has entered the tide of self-protection?

In the data of the same period, the Hongmeng Zhixing announced by Huawei exceeded 11,000 units of all models from May 1 to May 5;

Li Auto announced that from May 1 to May 5, the total number of models in the series will exceed 30,000. Although the statistical caliber of the upper risk volume and Dading is different, the overall situation is that Tesla has recovered after the price war, but it has gradually entered a flat peak since May. If you don't cut prices, you can't stimulate orders, and if you don't cut prices too much, Tesla is not ready to give them at present, or you can't give them.

The price war is getting more and more hurt, Honda's ideal layoffs and high-tech reorganization, and the car market has entered the tide of self-protection?

Up to now, after Zhu Xiaotong returned to Shanghai office, Tesla has laid off employees in China's sales and service, key accounts, installment insurance and other teams, and began to lay off customer service, engineers, logistics, and production line teams on May 9. The compensation is N+3, and after this layoff, Tesla's latest sales stimulus is not large, basically continuing the policy in mid-April, that is, 0 down payment and 0 interest rate.

The price war is getting more and more hurt, Honda's ideal layoffs and high-tech reorganization, and the car market has entered the tide of self-protection?

In short, from a business point of view, Tesla's layoffs in China have not achieved perfect results. Because, after the completion of the replacement, the sales of the Model 3 have not been able to increase, and it is currently relatively stuck in the internal friction of the old car relying on price reductions to drive sales.

The price war is getting more and more hurt, Honda's ideal layoffs and high-tech reorganization, and the car market has entered the tide of self-protection?

The significance it leaves to Ideal and other car companies is that the price war is not cost-effective, and in the current environment, the entire price system will be moved. As for the layoffs of Li Auto, it is not just a lively matter. After all, as the car company with the highest sales volume in the market segment, with a gross profit margin of more than 20% and cash reserves of more than 100 billion yuan in the 2023 financial report, its retraction also means that the short-term forecast of the market by the leading companies has limited growth space, and it is better to maintain stability and rise, rather than continue to seek to break through the bottom line. After all, several pure electric models originally planned to be launched in 2024 have been rumored to be redesigned, and there are still many places that need to be used for money.

Beijing's car circles flocked to Xiaomi, and domestic cars rushed overseas, but the price war was unable to continue

Therefore, failing to meet expectations and making rapid adjustments is the main line of this layoff, and it is far-fetched to forcibly link it to the price war.

At the beginning of 2024, Li Auto plans to sell 800,000 units a year, so the construction of the entire corporate structure is also based on 800,000 units. However, with the launch of the MEGA in early March, which caused a lot of controversy and the impact on orders and deliveries for other product lines, its first-quarter delivery forecast was voluntarily lowered by more than 25%, from the original 10-103,000 units to 76,000-78,000 units.

The price war is getting more and more hurt, Honda's ideal layoffs and high-tech reorganization, and the car market has entered the tide of self-protection?

In the field of joint venture brands, in addition to Guangqi Honda's explicit statement, in fact, Honda, Toyota, Volkswagen, General Motors and other leading companies are also making relevant personnel adjustments, but the number of people is not large.

Enterprises have a greater tendency to survive the winter and shrink, and the turnover of personnel is also increasing. Behind this, in addition to financial reasons, it also reflects the prospect and confidence of employees in the company.

The price war is getting more and more hurt, Honda's ideal layoffs and high-tech reorganization, and the car market has entered the tide of self-protection?

Regardless of the flow of senior management and middle management, after all, the high-level positions of each enterprise are limited. Judging from the flow of people in Beijing and the surrounding areas alone, most companies have begun to flow to Xiaomi. Some Xpeng employees, after entering 2024, will join Xiaomi one after another, some join Xiaomi Group, and some join Xiaomi Auto. Li Auto's layoffs this time will provide support for Xiaomi's talents, however, Xiaomi's current shortage is manufacturing-related talents, and there is not much shortage of personnel in sales and service.

The price war is getting more and more hurt, Honda's ideal layoffs and high-tech reorganization, and the car market has entered the tide of self-protection?

The information left by the flow of Xiaopeng personnel also reflects a point that even if the core employees at the time of the establishment of the brand are constantly reducing prices, but they cannot complete the rapid increase in sales, people will always have the flexible idea of moving the tree to death and people to live.

The variables are very large, and now they further include the head joint ventures. Some people say that with the rise of domestic cars, the gradual decline of joint venture cars is only a matter of time, but the influence of the German automobile industry on the Chinese auto market is still visible to the naked eye.

The price war is getting more and more hurt, Honda's ideal layoffs and high-tech reorganization, and the car market has entered the tide of self-protection?

Volkswagen's latest news is that it has begun to abandon the original all-in pure electric plan, of course, this is not a complete abandonment, but after finding that pure electric can not achieve a competitive advantage in the short term, it began to slow down pure electric, but began to fully promote more internal think more competitive plug-in hybrid. SAIC Volkswagen's replacement Passat will be upgraded using SAIC Group's plug-in hybrid technology, and after being highly localized, the price will drop significantly, and at the same time, it can ensure Volkswagen's profit figures and sales targets, which is what they want.

The price war is getting more and more hurt, Honda's ideal layoffs and high-tech reorganization, and the car market has entered the tide of self-protection?

In fact, a few days after Guangqi Honda announced the layoffs, Honda has released the latest i-MMD progress in Japan, and the core change of the 4.5th generation i-MMD is that the engine is changed to the Atkinson cycle, which provides better charging capacity for the battery of the gasoline-electric hybrid, reduces the engine power, but increases the power of the electric motor, which has certain similarities with the current range extension from the implementation path. In short, Honda is ready to use the logic of today's new energy vehicles to make a gasoline car, which can make it competitive in overseas markets and maintain high profits.

The price war is getting more and more hurt, Honda's ideal layoffs and high-tech reorganization, and the car market has entered the tide of self-protection?

As for the Chinese market, the help that this new technology can bring is not much in the short term. The data in China's auto market has reached a bottleneck, with a large number of models to choose from for each budget, relying only on fuel economy to attract purchases, relying on saving 0.0 L of fuel per 100 kilometers, saving 3 yuan, which is more attractive to online car-hailing, rather than large-based family users.

The price war is getting more and more hurt, Honda's ideal layoffs and high-tech reorganization, and the car market has entered the tide of self-protection?

In addition, as the price war has intensified, the total sales performance in April has shown a situation of "domestic sales growth slowing down, and export and overseas sales surging sharply". According to data from the China Association of Automobile Manufacturers, the overall sales of automobiles in China in April 2024 were 2.359 million units, a year-on-year increase of 9.3%; Passenger cars: sales in April were 2.001 million units, a year-on-year increase of 10.5%; Exports in April totaled 504,000 units, reflecting a 0.4% m/m increase and a 34.0% y/y increase.

The price war is getting more and more hurt, Honda's ideal layoffs and high-tech reorganization, and the car market has entered the tide of self-protection?

In the Beijing Auto Show, almost all capable car companies are mentioning one thing, accelerating their going overseas. Chery, which has overseas business, is about to build a factory in Europe, Mexico has been stabilized by BYD, JAC, etc., BYD even started a price war in Thailand, and the price of the main model was reduced by 20%, which got a rapid growth in April. It is a consensus that there is no high-intensity price war overseas. In contrast, the domestic price war has hit a bottleneck.

Write at the end:

So, a lot of speculation, in fact, can be stopped. Continue to fight the price war in the range of 2023-May 2024, and now few car companies can do it. As the bullets slowly run out, the leading car companies have begun to shrink their excess business scope one after another to ensure their competitiveness in responding to market changes in the long term. Moreover, each of the leading car companies has a demonstration effect.

Tesla's contraction is also a microcosm of the entire pure electric market, and the current significance is that in addition to supercharging, other things can be moved;

The ideal contraction means that the expected incremental space is limited and conservative, so even Huawei, which has just turned from negative to positive, must start to consider the next market progress.

The contraction of Guangqi Honda is not an isolated case of the joint venture brand, but a homogeneous universal behavior, but the magnitude is different. In the face of better demand, profit-focused joint ventures are now not ready to expand rapidly, but are seeking a smooth harvest and transition.

In short, with the successive withdrawal of leading enterprises, the price war is unable to continue with high intensity in a short period of time. As for niche brands, and whether second- and third-tier brands can bring new variables, such as 150,000 Xpeng MONA. Looking at this company, the current influence is gradually decreasing, falling into a cycle of falling more and more unable to sell, and the wait-and-see mood is actually self-evident.

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  • The price war is getting more and more hurt, Honda's ideal layoffs and high-tech reorganization, and the car market has entered the tide of self-protection?
  • The price war is getting more and more hurt, Honda's ideal layoffs and high-tech reorganization, and the car market has entered the tide of self-protection?
  • The price war is getting more and more hurt, Honda's ideal layoffs and high-tech reorganization, and the car market has entered the tide of self-protection?
  • The price war is getting more and more hurt, Honda's ideal layoffs and high-tech reorganization, and the car market has entered the tide of self-protection?
  • The price war is getting more and more hurt, Honda's ideal layoffs and high-tech reorganization, and the car market has entered the tide of self-protection?
  • The price war is getting more and more hurt, Honda's ideal layoffs and high-tech reorganization, and the car market has entered the tide of self-protection?
  • The price war is getting more and more hurt, Honda's ideal layoffs and high-tech reorganization, and the car market has entered the tide of self-protection?
  • The price war is getting more and more hurt, Honda's ideal layoffs and high-tech reorganization, and the car market has entered the tide of self-protection?
  • The price war is getting more and more hurt, Honda's ideal layoffs and high-tech reorganization, and the car market has entered the tide of self-protection?
  • The price war is getting more and more hurt, Honda's ideal layoffs and high-tech reorganization, and the car market has entered the tide of self-protection?
  • The price war is getting more and more hurt, Honda's ideal layoffs and high-tech reorganization, and the car market has entered the tide of self-protection?
  • The price war is getting more and more hurt, Honda's ideal layoffs and high-tech reorganization, and the car market has entered the tide of self-protection?
  • The price war is getting more and more hurt, Honda's ideal layoffs and high-tech reorganization, and the car market has entered the tide of self-protection?
  • The price war is getting more and more hurt, Honda's ideal layoffs and high-tech reorganization, and the car market has entered the tide of self-protection?
  • The price war is getting more and more hurt, Honda's ideal layoffs and high-tech reorganization, and the car market has entered the tide of self-protection?
  • The price war is getting more and more hurt, Honda's ideal layoffs and high-tech reorganization, and the car market has entered the tide of self-protection?
  • The price war is getting more and more hurt, Honda's ideal layoffs and high-tech reorganization, and the car market has entered the tide of self-protection?
  • The price war is getting more and more hurt, Honda's ideal layoffs and high-tech reorganization, and the car market has entered the tide of self-protection?
  • The price war is getting more and more hurt, Honda's ideal layoffs and high-tech reorganization, and the car market has entered the tide of self-protection?

Personal opinion, for reference only

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