Ideal cars that exceeded their sales targets in 2023 will receive generous year-end bonuses from employees.
A certified employee of Ideal Auto stated on social media that they can receive a basic salary of 8 months for this year's year-end bonus. Red Star Capital Bureau has learned that Ideal Automobile will issue year-end bonuses on February 8th, generally ranging from 4 to 8 months of salary, depending on individual performance and department.
Li Xiang, CEO of Ideal Automobile, reposted a post saying "This year's Ideal year-end bonus red envelope is a bit large" and posted, "We cannot just learn Huawei's processes without learning Huawei's profit distribution. We insist on two synchronous learning. In 2023, if we exceed our goals, we will receive more bonuses, and in 2022, if we fail to achieve our goals, we will receive less bonuses, achieving clear rewards and punishments. Only learning advanced processes without learning advanced profit distribution, and unclear rewards and punishments are the biggest reasons for organizational inefficiency. Simply tinkering with employees. There is growth, achievement, and reward, all three are indispensable."
Red Star Capital Bureau has noticed that the performance evaluation of Ideal Automobile is based on learning from Huawei. In March 2023, Ideal Automobile upgraded its performance management tool to PBC, which mainly includes organizational performance goals, personnel management goals, personal key tasks, and ability improvement plans.
PBC originated from IBM. In 1998, IBM discussed assessment and PBC during the product development process at Huawei. After Huawei piloted it in the IT department, it was promoted throughout Huawei.
In February 2023, Ideal Motors announced that Li Wenzhi, former head of the Global HRBP Management Department, had recently joined Ideal Motors as the head of the CFO office. The CFO's office is responsible for the transformation of processes, organization, and finance. At the end of 2021, Ideal Automobile launched a comprehensive matrix organization upgrade.
An insider at Ideal Auto told Red Star Capital that the performance evaluation of Ideal Auto includes two parts: 1 Personal performance evaluation (whether business goals have been achieved) 2 "High Seven" evaluation (evaluating whether each dimension has reached high seven, which is the seven habits of highly efficient individuals).
The performance of ideal employees is divided into five levels: "O" (excellent), "E" (higher than expected), "M" (meeting expectations), "I" (to be improved), and "F" (unqualified). The assessment ratio has been changed from "262" to "271", which means that 20% of employees are rated as "O/E" in each assessment cycle, 70% are rated as "M", and 10% are rated as "I/F". White collar employees are evaluated twice a year, divided into the first and second half of the year; The store is evaluated four times a year, or four quarters.
An Ideal Automotive employee stated that in 2023, his assessment score was double "E", and he could receive an annual bonus of 8 months, plus a department coefficient, he could still receive 0.5 months; Another Ideal Automotive employee with a double "M" assessment score stated that they can receive 4 months.
Although some employees are happy that the year-end bonus for 2023 exceeded their expectations, they also feel a "mountain of pressure". "The sales target for 2022 has not been achieved, and the year-end bonus is discounted, with most people taking less than two months or even less. The annual sales target of 800000 vehicles in 2024 is a daunting task."
In 2022, the annual sales volume of Ideal Automobile was 133200 units, with an annual target completion rate of only 78.38% and a net loss of 2.03 billion yuan for the year.
In 2023, the sales of Ideal Automobile reached 376000 units, a year-on-year increase of 182.2%, and the annual sales target completion rate reached 125.33%, becoming the annual sales champion of new force brands for the first time. In terms of performance, in the first three quarters of 2023, Ideal Automobile achieved a net profit of over 6 billion yuan. Since the fourth quarter of 2022, Ideal Automobile has achieved profitability for four consecutive quarters, making it one of the few new car manufacturers to achieve profitability.
In 2024, Ideal Automobile set a sales target of 800000 units, and only 300000 units in 2023.
It is widely believed in the industry that competition in the Chinese car market will further intensify in 2024, and price wars will become the norm. In January, AITO defeated Ideal Automobile and topped the sales charts for the first time as a new force in car manufacturing. The "dad car" track of Ideal Automobile has also welcomed more followers.