Chinadaily.com.cn's reporter Meng Fanbin interviewed Mr Wang from BYD Public RelationsDepartment about recent issues under public scrutiny . Here are the scripts.
"Revenues falling"
Reporter: BYD was reporting an 89 percent fall in first-half net income due to sluggish sales.What are the main reasons?
Mr Wang: The expiration of government incentives for small cars and increasing competitionare the main reasons for the sales plunge.
Reporter: Apart from the outside reasons, is there something wrong with BYD?
Mr Wang: BYD is a green hand in auto industry. We lack experience in regional channelexpansion and regional channel allocation.
"Staff reduction"
Reporter: How large-scale is BYD's staff reduction?
Mr Wang: "Staff reduction" is not the appropriate term to describe our recent adjustment. "Workforce rearrangement" can be better words. BYD is just downsizing the auto salescompany and increasing working efficiency in accordance with the changing market.
Reporter: BYD will close its marketing and sales divisions by Sept 30. What other departmentswere dismissed by BYD?
Mr Wang: First of all, we don't need many regional managers who serve for auto dealers, sothey were sent to other departments to learn. Secondly, employees who had been in closeconnection with techniques were dispatched to work in the technique department.
Reporter: That is to say there was no large scale layoff, is that right?
Mr. Wang: We didn't lay them off. Many quit their jobs voluntarily because they didn't getsatisfactory payments in the new position. Several former employees in BYD curse thecompany on the Internet to vent their discontent. What they have said are not the total truth.
"Airbags flaws"
Reporter: CCTV reported that the airbags on the popular F3 model cars failed to automaticallyopen in several crashes, would you please explain this?
Mr Wang: Auto Safety airbags are used only for emergency and they deploy on the condition ofparticular angels and strength. We accept that we have some responsibility for it, but it is oneof the common problems that the whole auto industry must face. Other luxury car brands hadonce faced similar claims after accidents.
"Three years' adjustment phase "
Reporter: What is BYD going to do in the three year adjustment period?
Mr Wang: BYD's main goal is to optimize its products. In order to improve the quality of cars, ithas to improve the quality of productions, sale skills and management systems. Until now, wehave done a lot to improve the quality of our autos, for example, we just launched our first SUVS6 model to adapt to the Chinese market. Our newly-produced cars have made great progressin quality.
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