Wang Chuanfu recognizes the employees' reassurance? BYD enters a three-year adjustment period

On September 9th, BYD held its first extraordinary shareholders meeting in 2011. Chairman Wang Chuanfu announced to BYD shareholders for the first time that BYD Motor’s strategic mistakes: “BYD had made a mistake in 2009. Now layoffs and adjustments are paying for past mistakes. Since this year BYD entered the adjustment year, this adjustment is to optimize the management team and dealer network, and secondly, to strengthen brand design."

Wang Chuanfu's deadline for adjustment is until 2013.

Wang Chuanfu's first position regarding the layoffs of BYD’s staff reassured the people while admitting that they were downsizing. “After Wang’s speech at the shareholders’ meeting, some colleagues actively calmed down. In the three days of the Mid-Autumn Festival, there were friends who went to Guangzhou to relax, went to the beach to barbecue, had to actively seek a lawyer, and thought that for a long time they finally accepted the internal strokes. In short, this The Mid-Autumn Festival is not ordinary. We eat the company's moon cakes and drink from the company's drinks. We are thinking about the bright moon tomorrow. The uncertain tomorrow will make everything look forward to it. The young man!” BYD employees wrote this message on Weibo.

However, prior to Wang’s position, an organized human rights defense was actively preparing. "The signature has just begun. Some people are still on the road. Some people have sent faxes, some have signed online and some have written power of attorney. Because this announcement was too sudden, many colleagues who are on the road have not returned yet."

On the evening of September 9, a person who was laid off to organize the staff told reporters that in accordance with their statistics, the BYD personnel adjustment involved 1,000 people. "Our own statistics, there are probably a thousand people. There are no people left. First of all, the use of the mailbox has been shut down. If the mail cannot be received, it will not be sent out."

As of 9:00 pm on September 12, more than 100 employees who had been laid off were signed and planned to organize 300 people. They hoped that after President Wang spoke, the company would have a new policy, otherwise it would be ready to negotiate with the company. The main content of the negotiations was In accordance with the labor law, employees who are laid off are compensated.

In fact, "laying down" is only the first step in BYD's adjustment. Wang Chuanfu said that BYD's adjustment period will continue until 2013, and news from BYD's first-line sales shows that after the layoffs, some regional networks and channel sinks will be adjusted by BYD Auto. Focus.

There is no standard layoffs BYD will vigorously reduce capital expenditures from next year, Wang Chuanfu clearly stated at the shareholders meeting: "BYD's capital expenditure in the first half of this year 5 billion, will be compressed to 3 billion in the second half, annual control in 8 billion - 9 billion In 2012, the capital expenditure will be reduced by 3 billion yuan to 5 billion to 6 billion yuan."

The layoffs and the massive compression costs are equally rampant. "The layoffs are expected. We have no objections to layoffs. However, this time, we can't stand it. The first layoffs are too fast, the second layoffs are too dark, there are layoffs, and we have to find various reasons to deny them." Another BYD employee who was laid off told reporters.

In fact, BYD's personnel adjustment began in October last year after dealers withdrew from their networks. The BYD Auto Division had a peak of 4,600 in 2010, and this time it has reduced to more than 2,600 people.

"At that time, the method of dismissal was more acceptable, and it was equivalent to survival of the fittest. There was the ability to stay, no ability to transfer back to the car sales company to do back-office, or other functional departments, and some transferred to the workshop of the Eleventh Division. The reason was Prepare for the establishment of a microfabric network, go to the workshop to learn about the automobile structure, and later in March and April of this year, micromesh announced dissolution, and many people began to leave the company.” A regional manager who was laid off told reporters.

From an objective point of view, BYD's staff adjustments were not as large as before, but the impact was unexpected. "The main reason is that the cut was too sudden. There was no psychological preparation. There was no standard for layoffs, and many people who had walked away were really capable." The above person told reporters.

BYD posted a notice on August 29, notified the individual on the 30th, and restricted the end of September can not find a way to automatically leave. What makes these regional managers the most unbalanced is that in their own words, “A regional manager who has experienced a period of extraordinary times in 2010 has suffered a lot and really forgave the company.”

Throughout 2010, it was the most intense year of conflict between BYD and distributors. Especially in October-December 2010, the dealer’s inventory was already very large, and the leaders of the competent area gave the mission objectives, and they were able to complete and stay. If they can’t return to the headquarters, they will be able to cope with it. Dealer complaints, and people who can complete the task.

“It's not easy to get rid of this year. When we talked to one of our regional managers in 2010, the most inquired about each other was: 'Which dealer in your area retired?' There are still some dealers who have not completely withdrawn. The accounts are not clear, and there are still cases where the case is fully resolved. Even some dealers have withdrawn, and they are still selling the 2009 car."

"There is no standard for layoffs. There are still standards for layoffs in October and December of last year and March of this year. Not only hasn't completed the task, but also depends on the usual performance, including managing dealerships, increasing sales, and whether or not to accomplish tasks. Or, what is the percentage of completion of the task? The only criterion for this layoff is: Are you not a member of the Sixth War zone boss?” said the above-mentioned regional manager.

Paying for errors without standard layoffs seems to have exposed the chaos of BYD's management. "The time is too tight, the number is too large, the boss doesn't know what to do, so making such a ridiculous decision actually reflects the problem on the other hand, that is, at least for now, management is still a shortcoming of the six-zone boss. At least, there is no predictability and there is no ability to balance the layoffs." A BYD employee told reporters.

It is a fact that BYD's management is chaotic. There is no clear system within BYD. The DPJ changes are relatively common. BYD has no explicit institutional support to encourage such a phenomenon in internal management. The following people like to cover up the facts. habit.

The BYD in transition also needs to fill in the modern enterprise system. The boss is not able to get real information, or the information obtained is too optimistic, he will surely expand his confidence and make wrong decisions, make unrealistic tasks, and dealers will have more and more inventory, and they can only choose to withdraw when the dealer can’t stand it. network. "Of course, Wang is too authoritative. The following people are afraid of him. Sometimes they dare not tell the truth." The above-mentioned BYD employees added.

BYD's development was very smooth in 2009. Its annual sales volume doubled to 450,000. That is, at that time, it had set a target of 800,000 vehicles in 2010. “At that time, we declared that we were to produce and sell 800,000 vehicles. Actually, we demanded 1 million vehicles internally. However, the actual situation is that at the end of 2009, we had large-scale pressure on the banks.” The above employees said that the most horrible pressure warehouse The volume is between five and one to six to one, which is 5-6 months of sales per month.

When BYD employees are at their peak, each 4S shop will send a regional manager and an operations manager, and now it is a regional manager Guan Shilai's store. "At that time, the functional organization was very large and people were everywhere. We were also very clear that we couldn't have so many people, but everyone believed that they had the ability to stay." The above staff said.

BYD has been recruiting people since the end of 2009. It has been recruited until April and May of 2010. At that time, the distributor channel reached a peak of about 1200. This large-scale recruitment and expansion is implemented for 2010 sales of 800,000 units. However, when 800,000 people could not be implemented, the scale of such personnel would obviously be bloated.

BYD is indeed paying for their own mistakes. "Actually, the volume of shipments has eased since last year's annual meeting. Why does BYD's sales decline this year become particularly serious? Objectively speaking, this year we started to increase satisfaction on the one hand and improve quality on the other. BYD this year The backlog of stocks is not large, and it is also more moderate for dealers," the appellant told reporters.

Wang Chuanfu recognizes the employees' reassurance? BYD's three-year adjustment period layoffs are just the beginning of adjustments. As stated by Wang Chuanfu, BYD's adjustment period will continue until 2013. News from BYD's first-line sales shows that after the layoffs, some of the combined networks and channels sink will be BYD dealers. The focus of network adjustment.

“In Jilin Province, Inner Mongolia, and Anhui, some provinces with a small population may use this approach. The first is to plan to integrate the network. The number of dealers should be even more streamlined, not to say that new dealers will not be developed, and may not It will be so fast.The next step is to sink the company's channels, which is to drive our mini 4S stores to the county level. Most of the 4S stores are still in the prefecture-level cities. The next step is to go to a better county." A regional manager of BYD cautioned that opening a 4S shop in a county may affect the interests of dealers in prefecture-level cities. This may be another test.

The old sub-network seems to have become the bitter fruit that BYD personally planted. This is also confirmed by most of the independent brands. "In terms of the sub-network itself, there is nothing wrong with it. The sub-network can absorb more funds. The starting point of the sub-network is to take care of the small dealers, because he does not have the strength to sell all the models. It is not only necessary to sell cars, but also to have cars. To the color and configuration. These need a lot of inventory. The original sub-network is to absorb more funds, but also to reduce the pressure of small dealers." The above regional manager told reporters.

However, an important premise of the sub-network is that there must be enough product support. “Our models are too few. One network only sells one car, such as the A3 network, and only sells one G3. How do you make people live?” In this case, it is not an accurate positioning and market error for G3. The sentence is even worse. "At that time we thought very well ourselves, and the A3 would surely be selling well. As a result, there were so many A3 nets, three or four hundred. Last year, most of the dealers who retired were A3 nets."

Unsuccessful G3 became a turning point for BYD. “The G3 is an upgraded version of the F3, but when the G3 came out, it was positioned as a white-collar worker in the city. BYD wanted to use the G3 as a joint venture brand, and BYD’s brand value and recognition were not that high.” The above sources said. G3's sales were much worse than expected. The monthly sales volume was also more than 5,000 units. At that time, the goal of the six-month listing was to sell over 10,000 yuan monthly.

BYD's misjudgment was quickly seized by competitors. Great Wall Tengyi C30 listed after G3 seized the gap in pricing, priced between F3 and G3, and monthly sales soared to 10,000 units.

BYD later realized the problem. G3 began to lower prices last year, and it was not bad for the Tengyi C30. "It is still very hot this year, but the momentum is not as strong as it was last year. The G3 price is really very high, but its pre-market is not good, it is difficult to rise again." The above regional manager told reporters.

Regarding the future of BYD, Wang Chuanfu said on the 9th, “I did not expect to enter the current adjustment period that will last for three years or so, but BYD will guarantee an annual sales increase of 20%-30%, and strive to complete the first in 2015 in China. aims."

However, for BYD, which created sales myth with F3, there is no chance of making another mistake in the future Chinese auto market. The chance of repeating the F3 "myth" is also minimal.

"With no negative news, this year, BYD is not China's number one, with two or three new models successfully listed on the premise. It is really undecided. BYD's flexibility is still there, its viability Is also very strong, this may be related to Wang Chuanfu this person, he has such courage." A laid-off staff finally told reporters.