Shangahi Auto (SAIC) is reportedly planning to cut salaries of top executives as it looks to save costs in anticipation of harder times.
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Sources from the company told the Xinhua news agency that every subsidiary was asked lift net profits by 1 percent by limiting costs.
The report also said that SAIC Group had slashed senior managers’ bonuses by 20% in 2008 and it’s predicted that base salaries won’t be increased.
The SAIC Group was the first large-scale automobile company to announce its specific plans for reducing costs, said Sun Zimu, an analyst with Essence Security.
Facing the economic downturn, nine state-owned enterprises in Shanghai have vowed to cut payrolls and administrative expenditures, according to the State-owned Assets Supervision and Administration Commission of Shanghai.
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