[The Epoch Times, Tachwedd 24, 2022](Comprehensive report by Epoch Times reporter Li Bing) The new energy car company WM Motor was once one of the top four new car manufacturers in China, and is currently going through a cold winter with consistency. negative news. After the news of “an annual loss of 8.2 billion yuan and the founder’s annual salary of 1.2 billion yuan” appeared on the hot topic list, Weimar has recently reported that executives and employees will cut their salaries.
On November 22, an internal communication letter entitled “Helping Together and Overcoming Difficulties Together” was circulated on the Internet.
The internal letter shows that from October this year, M4 and higher WM Motor managers took the initiative to cut their wages, paying only 50% of the basic wage, and other workers getting 70% of the basic salary. At the same time, the company’s pay day is adjusted from the 8th of the next month to the 25th of the next month. In addition, the internal letter also mentioned that additional bonuses (13th salary), retention bonuses (14th salary) and year-end bonuses will no longer be issued this year, and car purchase subsidies will be suspended.
Regarding the authenticity of the internal letter, a WM Motor employee told Beijing Business Daily: “The internal letter has indeed been received.”
According to the prospectus of Weimar Motors, the total remuneration paid by Weimar Motors to directors and supervisors in 2021 will be 1.746 billion yuan, and Shen Hui will be about 2.01 million yuan in remuneration and bonuses, and the three executive directors Du Ligang, Hou Haijing and Bi Shiyu respectively. About 1.67 million yuan, 2.35 million yuan and 2.07 million yuan. This means that if the calculation is based on 50% of the salary, the annual salary of other executives except Du Ligang will still be more than one million yuan.
As for the reasons for this salary cut, the internal letter shows that 2022 is full of challenges and difficulties. Weimar is not only affected by the epidemic in Shanghai, Beijing, Chengdu and other places, but also facing huge challenges in the timely supply chain and other serious problems are affecting the production of WM Motor.
Ling Ran, an auto analyst, told Die Zeit recently, “WM’s salary cut shows from the side that the new energy vehicle industry has entered a period of reorganization. In fact, not only WM, but many of new energy vehicle companies in a state of volatility.”
This is not the first time that WM Motor has reported a pay cut As early as March 4, 2020, according to a report by new automotive media platform 36 Krypton “Future Auto Daily”, WM Motor held a meeting for all CTOs (every one). Intelligent Network Departments) for approximately 10 minutes A 20-minute online conference call to discuss the distribution of year-end bonuses. HR notified all employees through an online meeting to cancel the year-end bonus on the basis that “the company’s annual KPIs were not up to last year’s standard”.
In the face of declining revenues and huge losses, the salary of Shen Hui, the chairman and CEO of WM Motor, has received a lot of attention.
According to a recent report by Jiemian News, data shows that Shen Hui’s salary in 2021 alone will be as high as 1.26 billion yuan, while Weimar’s income in the same year is only 4.7 billion yuan. Shen Hui’s salary alone is accounted for almost 30% of Weimar’s income that year. In the same year, WM Motor paid 1.75 billion yuan in salary to the top managers, and Shen Hui alone accounted for 72% of the top managers’ salary.
According to Weima Motor Company’s share table, the founders Shen Hui and Wang Lei hold a total of 30.82% of the shares.
Since 2020, Weimar executives have left one after another. In 2020, Liu Liqun, the former general manager of WM Motor’s travel division, resigned; former retail chief executive Qi Liren resigned; co-founder Lu Bin also announced his resignation. In 2021, Tang Jun, the company’s other chief retail officer who has been in his position for less than half a year, will also announce his resignation.
According to the October 2022 sales ranking of new energy manufacturers recently released by the China Travel Association, Weimar only sold 1,117 vehicles, and did not enter the top 15 list.
The data shows that WM Motor’s net losses from 2019 to 2021 were 4.145 billion yuan, 5.084 billion yuan, and 8.206 billion yuan, respectively, the three-year total loss was 17.435 billion yuan, and the loss is still widening .
Responsible editor: Hu Yulong#