By LIU Jiaxin
Yueda Kia, an automaker jointly founded by Dongfeng Motor Corporation, Jiangsu Yueda Group and South Korean company Kia, has announced a one-year “rotation” plan for senior employees.
From June, 130 senior managers will be put on leave for a year. They will receive June’s salary as normal, and thereafter minimum wage. All bonuses, incentives and welfare contributions will be gone.
Yueda Kia described the move as “restructuring” as the company is shifting its focus to EVs. But the employees see it as a mass layoff.
“They are forcing us to quit at minimum wage,” an angry employee said. “If they sack us, they will have to pay very high compensation.”
The staff concerned are based in Shanghai and Yancheng of Jiangsu Province, minimum wage in Shanghai is 2,590 yuan (US$374) a month.
Last year, Dongfeng Motor withdrew from the JV, which recorded a net loss of 3.7 billion yuan in 2022. The liability ratio of the company reached 119 percent at the end of last year, 9 percent higher than the bankrupt GAC Fiat Chrysler.
Yueda Kia had its moment in China when it sold more than 650,000 cars in a year, but that was ages ago. In 2017, sales in China dropped to 360,000 and last year sunk below 100,000 cars.
Kia is doing well outside China. Global sales last year reached 2.9 million and the company hoping for 4.3 million this year.
