BYD demands suppliers to cut cost by 10%
BYD executive vice president He Zhiqi sent out emails to suppliers on Nov 26 to request 10% price reduction starting on Jan 1, 2025. Here is the reply from one disgruntled supplier:
Dear Mr. He Zhiqi,
I acknowledge your notification regarding your request for suppliers to further reduce costs by 10% from 2025. However, I must express my strong dissatisfaction and vehement protest.
BYD, as a benchmark in China's auto industry, has achieved large-scale expansion through aggressive cost-cutting strategies. Yet, your company's practices are not only unethical but also exploit the hard work and resilience of the Chinese workforce and undermine the viability of domestic suppliers.
Your approach of "cutthroat pricing" and relentless pressure on suppliers has destabilized the market, leading to a vicious cycle of unethical business practices. This strategy, while initially profitable, puts the industry at risk of collapse due to unsustainable competition.
It's crucial to recognize that BYD's short-term gains are built on the backs of squeezed suppliers and compromised business ethics. This approach endangers not just your company, but the entire industrial supply chain, ultimately harming the long-term interests of Chinese workers and enterprises.
I urge BYD, as an industry leader, to prioritize long-term development over short-term profits. Instead of exploiting the supply chain, focus on fostering a healthy, sustainable environment for cooperation. The growth of China's auto industry should not come at the expense of its workers and suppliers.
We hope you will reconsider your strategies, adopting a more socially responsible and global perspective. Failure to do so risks not only your company's future but the integrity of the entire industry.
Therefore, we cannot accept your price reduction request and will not participate in practices that compromise business ethics and human dignity.
Dear Mr. He Zhiqi,
I acknowledge your notification regarding your request for suppliers to further reduce costs by 10% from 2025. However, I must express my strong dissatisfaction and vehement protest.
BYD, as a benchmark in China's auto industry, has achieved large-scale expansion through aggressive cost-cutting strategies. Yet, your company's practices are not only unethical but also exploit the hard work and resilience of the Chinese workforce and undermine the viability of domestic suppliers.
Your approach of "cutthroat pricing" and relentless pressure on suppliers has destabilized the market, leading to a vicious cycle of unethical business practices. This strategy, while initially profitable, puts the industry at risk of collapse due to unsustainable competition.
It's crucial to recognize that BYD's short-term gains are built on the backs of squeezed suppliers and compromised business ethics. This approach endangers not just your company, but the entire industrial supply chain, ultimately harming the long-term interests of Chinese workers and enterprises.
I urge BYD, as an industry leader, to prioritize long-term development over short-term profits. Instead of exploiting the supply chain, focus on fostering a healthy, sustainable environment for cooperation. The growth of China's auto industry should not come at the expense of its workers and suppliers.
We hope you will reconsider your strategies, adopting a more socially responsible and global perspective. Failure to do so risks not only your company's future but the integrity of the entire industry.
Therefore, we cannot accept your price reduction request and will not participate in practices that compromise business ethics and human dignity.
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73372627 : Nice answer against this unethical and low level company. They want to build in Mexico lol. So they will sell where??? in south or central America???? No one has money there to buy a bycicle lol.