Great Wall Motors exits Europe, leaving workers without severance
The Chinese car manufacturer Great Wall Motors has decided to eliminate all European jobs due to poor sales performance. This is a tragedy for the company's employees, as they cannot expect any severance pay despite being laid off. GWM will also close its headquarters in Munich.
Great Wall Motors (GWM) is one of the leading car manufacturers in China, having sold over 1.2 million vehicles worldwide last year.
Despite claiming it is not withdrawing from Europe, the company is nevertheless eliminating all jobs on the Old Continent and closing its headquarters in Munich. Management will continue from its home country.
Germany has already felt the impact of this decision. "The approximately 100 employees in Munich received their notice of termination on Tuesday. Because this is a site closure, no severance payments are planned." reports the newspaper "Frankfurter Allgemeine Zeitung".
The Chinese point to EU tariffs
"FAZ" reports that GWM's decision is driven by poor European sales performance, particularly regarding fully electric cars. Exact figures are unknown, but the German newspaper mentions "huge losses".
Great Wall Motors' move has another layer. GWM also justifies the wave of layoffs with the planned EU import tariffs on Chinese electric cars, which could come into effect as early as July, commented "Frankfurter Allgemeine Zeitung". The Chinese argue that increasing tariffs would make improving their sales performance even harder.
The German newspaper also reported that GWM's corporate culture was perceived as very controversial. Earlier this year, employees in Munich reported a "toxic work atmosphere," rude manners, and excessive controls by the management.
