Recently, it was reported that Dongfeng Honda has undergone major layoffs, with employees queuing up to grab spots and even holding a farewell ceremony. It is reported that Dongfeng Honda plans to lay off up to 2,000 employees, with compensation standards set at N+2. As a company that once led the way in employee compensation and benefits in Wuhan's Economic and Technological Development Zone, and consistently ranked among the top in comprehensive strength, Dongfeng Honda's compensation standards for layoffs are quite rare in the current environment, attracting a large number of employees to sign up for the voluntary layoff program.

After the layoff channel was opened, nearly 3,000 people have expressed their intention to sign up, causing the channel to be filled up shortly after it was opened.

Dongfeng Honda was established on July 16, 2003, as a joint venture vehicle production and operation enterprise jointly established by Dongfeng Motor Group Co., Ltd., Honda Motor Co., Ltd. (China) Investment Co., Ltd., and Honda Motor Co., Ltd. of Japan.

For some veteran employees who have been with the company since its inception, they can receive compensation equivalent to more than 20 months of salary. Assuming a monthly salary of 200,000 yuan from August 2023 to July 2024, these veteran employees can receive approximately 380,000 yuan in compensation.

Dongfeng Honda prepared a farewell ceremony for each laid-off employee, with various snacks, fruits, and drinks available in the workshop cafeteria. Employees signed their names as a memento. Some netizens joked that Honda's layoff operation had the flavor of a demolition, giving employees sufficient dignity and respect.

The reason for the layoffs is widely believed to be related to a significant decline in sales. Data shows that Dongfeng Honda sold only 14,229 vehicles in July, a 74% decrease from the same period last year. In the first seven months of this year, its cumulative sales were 252,112 vehicles, a 10.54% decrease from the same period last year.

This is not an isolated case. Over the past year, the three major Japanese automotive brands have all faced declining sales and shrinking market share.

Toyota

Toyota sold 1.8824 million vehicles in China in 2023, a year-on-year decrease of 0.29%. Among them, Guangqi Honda sold 901,000 vehicles, a year-on-year decrease of 5.47%, while FAW Toyota sold 800,000 vehicles, a year-on-year increase of 4.1%. Toyota's performance in the new energy vehicle market is not outstanding, but its sales of fuel vehicles remain relatively strong.

Last year, Guangqi Honda laid off 1,000 to 2,000 contract workers, with a compensation plan of N+4.

Honda

Honda sold 1.2342 million vehicles in China in 2023, a year-on-year decrease of 10.12%. Among them, Guangqi Honda sold 620,500 vehicles, a year-on-year decrease of 13.91%, while Dongfeng Honda sold 613,700 vehicles, a year-on-year decrease of 4.9%. Honda's performance in the new energy vehicle market is not ideal. Although it is accelerating its electrification process, market feedback has been disappointing.

Honda's two joint venture brands offer compensation plans of "N+2".

Nissan

Nissan sold 793,800 vehicles in 2023, a year-on-year decrease of 24.05%, making it the Japanese brand with the largest decline. Dongfeng Nissan (excluding Venucia/Infiniti) sold 673,800 vehicles in 2023, a year-on-year decrease of 14.95%. Nissan China has completely withdrawn from the million-vehicle automaker club.

The shutdown of Dongfeng Nissan's Changzhou plant involved 300 relevant employees. The proposed solutions include local job transfers or layoff compensation, with compensation not less than "N+3".

Leaving aside other factors, compared to most domestic enterprises that offer at most "N+1," the compensation plans of the three Japanese brands can be considered generous.