China's auto workers bear the brunt of price war as fallout widens By Reuters

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China's auto workers bear the brunt of price war as fallout widens By Reuters
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China's auto workers bear the brunt of price war as fallout widens

SHANGHAI - As Shanghai sweltered in a heatwave in June, the car factory where Mike Chen works switched production to night shifts and dialled down the air-conditioning.

"SAIC-VW used to be the best employer and I felt honoured to work here," said Chen."Now I just feel angry and sad." Asked about the SAIC-VW plant where Chen works, which makes combustion-engine cars, VW said pay at joint ventures varied based on working hours and bonuses. It said making cars at night eased the burden on power grids and that healthy, good working conditions were a high priority. SAIC did not respond.

In the first seven months of 2023, China sold 11.4 million cars at home and exported 2 million, but growth came almost entirely from abroad. Exports leapt 81% but domestic sales only crept 1.7% higher - despite the widespread price cuts. At the same time, pay cuts and lay-offs in the auto industry and its suppliers - which employ an estimated 30 million people according to Chinese state media - are hitting living standards at a time when Beijing desperately wants to lift consumer confidence from near record lows.

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