FAW-Volkswagen has reportedly informed employees that it will cancel the issuance of its BD bonus for the 2025 and 2026 fiscal years. This decision, communicated verbally last week, has caused significant concern among staff, as the BD bonus, internally referred to as “insurance policy,” typically accounts for nearly half of an employee’s annual income, ranging from 40% to 45%.
Significant Income Reduction
The BD bonus, which is assessed annually and historically paid out starting in August of the following year, is considered a substantial part of employees’ year-end earnings. The cancellation of two consecutive years’ bonuses, especially when the 2025 bonus payment would have been due, has led to strong reactions from the workforce.
Beyond the BD bonus, several employees have also noted a decline in their monthly salaries over recent years. This reduction, influenced by factors such as job role, production and sales bonuses, and individual performance, varies among employees, with reported decreases between 20% and 30%.
Company Performance and Global Trends
This news comes at a time when FAW-Volkswagen had recently announced strong sales figures for 2025. The company achieved a total sales volume of 1,587,065 vehicles, including imported cars, solidifying its position as the top joint-venture automaker and the leading seller of fuel vehicles in China. The Volkswagen brand sold 902,066 units, Audi brand sold 566,988 units, and the Jetta brand sold 118,011 units.
The internal cost-saving measures at FAW-Volkswagen appear to align with broader trends within the global automotive industry. A report from German newspaper Süddeutsche Zeitung on October 18 indicated that Volkswagen Group plans to freeze salaries for most of its 600,000 global employees until 2030. When approached for comment on these developments, Volkswagen stated it does not comment on “such speculation.”
The dual impact of reduced bonuses and declining monthly incomes, coupled with the global trend of salary freezes in the automotive sector, presents a challenging outlook for employees at FAW-Volkswagen and potentially across the wider industry. The company’s decision to cancel significant bonus payments may reflect broader economic pressures or strategic adjustments in response to market conditions and the ongoing transition towards electric mobility.
