Mercedes-Benz Plans to Reorganize Its China Team to Address the Challenge of New Car Manufacturing

Last month, there were reports that Mercedes-Benz China was conducting large-scale layoffs and compensating N+9. Today, the media disclosed more details about this round of major layoffs.

SEE ALSO: Mercedes-Benz China Undergoes Major Layoffs, Sales System Heavily Affected

Up to now, the research and development system led by Mercedes-Benz (China) Investment Co., Ltd. has not been affected by this round of layoffs. Employees who are laid off in this round will receive compensation based on a benchmark of ‘N+6′; if employees sign the layoff-related agreement during discussions, Mercedes-Benz will provide an additional 3 months’ salary as compensation.

Currently, Mercedes-Benz in China has four main systems: sales and service, finance, production, and research and development. Among them, the sales and service system has the most people and the most complex business. Informed sources said that although Mercedes-Benz operates on a dealership model, the company still needs its own employees – one for overall coordination responsibilities and another to liaise with various regions and stores; thus expanding this system.

After receiving layoff notices, laid-off employees did not show much resistance; instead it was the remaining employees who began to worry because for those staying behind, ‘layoffs will definitely continue.’ Depending on how things go with the company’s goals in mind, those laid off later may not receive as much compensation.

A source from Mercedes-Benz revealed that key tasks for headquarters in Germany, China headquarters, and joint ventures this year include streamlining organization structures and achieving positive financial reports. The new CEO of Mercedes-Benz China region Tong Ou Fu comes from a financial background; at a previous conference he proposed ‘Version 2.0,’ believing it is necessary to improve efficiency within Mercedes.

The chairman of the Mercedes-Benz board, Kang Linsong, and others come to China every year to conduct competitor research. Insiders said, “The bosses were amazed by the Li Auto L9 and asked us to benchmark against it later. The intelligent driving system of Luxeed S7 is also our learning target now.”

Insiders also mentioned that Mercedes-Benz recently expanded its team for intelligent development. They are currently conducting closed-door development in Suzhou, making final preparations for the launch of MB.OS.

SEE ALSO: Mercedes-Benz China to Cut Costs and Improve Efficiency, Inefficient Production Lines May Be Closed