Pensions, that is, retirement pensions, are derived from many different countries.

In the U.S., employers and employees each set aside 6.2% of their wages as taxes, forming a dedicated "social security fund". Of this amount, 85 per cent is used to pay pensions and 15 per cent to other social security funds, such as disability pensions, survivors' and orphans' pensions.

In France, the basic pension is paid by the employer at 8.2 per cent and the employee by 6.55 per cent;

The pension in Sweden is divided into two parts, one part is the basic pension income and the other part is the "pension surcharge", which is unique to Sweden. The longer the length of service and the higher the salary, the more the "pension surcharge" will be accumulated, and the more pension you can receive after retirement.

"This is a fact, in fact, no matter which country it is, the pension-related burden will become more and more serious," Jiang Hui said after taking a sip of coffee.

"Yes, now, Jaguar Land Rover's annual pension for corporate employees is as high as 200 million pounds, plus various benefits for employees and salaries higher than the average social wage, half of Jaguar Land Rover's losses in recent years are caused by this reason", Kenny gave his first answer.

"What about the other half?".

As for Kenny's first answer, Jiang Hui couldn't say whether he was satisfied or dissatisfied. In the past, when Ford sold Jaguar Land Rover, it also specifically proposed to inject $500 million into the pension plan, which shows that pension is indeed a very important negotiation project and a major problem faced.

"The other half is inside Jaguar Land Rover, where production efficiency is too low and waste is too great. According to my calculations, when we produce one Land Rover, BMW or Mercedes-Benz can produce two, which leads to our production cost being higher than others. In addition, our procurement system has been relatively closed, and for so many years, we have basically purchased parts from some fixed parts suppliers, and the price competitiveness is limited."

"Of course, the most important thing is that the sales of models are not as good as we expected, especially the Jaguar brand, which has been declining in sales for many years, and the global sales of each model are only one or two thousand units per month, which is really not enough to support the healthy development of a brand."

Whether it is a car or a mobile phone, there is a break-even point, and there is no way to reach this balance point without reaching a certain number of production units.

Some people say that if an automobile factory sells less than 30,000 units a year, it is difficult to make a profit.

Of course, if the car factory is a luxury car such as Ferrari or Lamborghini, this statement certainly does not apply.

However, regardless of whether this statement makes sense or not, and when it applies, at least compared to Jaguar and Mercedes-Benz BMW, the annual sales are too low.

When factory depreciation, labor costs, R&D amortization, mold amortization, marketing expense amortization and other expenses are put on a small number, the cost will be very high.

And the price of a model has an approximate benchmark, it is impossible to increase the price indefinitely, and consumers are not stupid.

At this time, your sales have not been able to rise, and it will be difficult to make money.

"Jaguar Land Rover has five major manufacturing and R&D centres, all located in the UK, from which all Jaguar and Land Rover cars around the world go global. They are the Guyton base, which only opened in 2000 and is adjacent to Aston Martin. This includes Jaguar and Land Rover's engineering and design centres, marketing, sales, service teams, finance, human resources and more. ”

In addition, the Wheatley factory in Coventry, West Midlands, England, which produced early aircraft and missiles. The Solihall factory, which produced aircraft and tank engines as the British Royal Armaments Factory during World War II. The factory is located in Hallewood, Merseyside, England. and Bromwich Albion in Vale, Birmingham, England. ”

"The two brands, with an annual sales volume of less than 200,000, have 5 factories, and the production efficiency can be imagined. Crucially, these factories are less than 50 percent at capacity, which creates even more waste. I believe that the top priority is to increase Jaguar Land Rover's sales and reduce the cost sharing ...... of the model."

Through a ten-minute explanation, Kenny generally answered the question of why Jaguar Land Rover has been losing money.

"I wonder how Jaguar Land Rover's board of directors thinks about profit plans?", after saying so much, Jiang Hui finally began to talk about the topic and introduce it to other directors.

"For some of the directors, it seems that they don't care much about how much they are getting paid a lot of money every year and how their sales are changing, because they are retiring soon. Jaguar Land Rover has too many senior employees, which limits the development of young people below, which directly affects everyone's enthusiasm for work."

"And what do you suggest?"

"Mr. Jiang, there is a saying in the Celestial Empire called Mao Sui self-recommendation, I hope you can support me to become Jaguar Land Rover, at least the president of the Land Rover brand. I will create the greatest value for shareholders in full accordance with your will", Kenny began to show his loyalty to Jiang Hui.

It is difficult for young people who have not experienced the baptism of the workplace to understand the importance of showing loyalty, and even disdain to do such things.

However, if you are a leader yourself, do you want to promote a subordinate who is average but loyal, or do you want to promote a subordinate who is very capable but does not deal with you?

I think everyone makes the right choice, right?

In this case, everyone can naturally realize the importance of loyalty, and even Jiang Hui in his previous life has suffered losses in this regard.

So when he heard Kenny show his loyalty to himself, Jiang Hui didn't feel that there was anything to look down on.

At this time, I hope that the senior management of Jaguar Land Rover will come to show loyalty, even if the ability is average, it can be used temporarily.

It's better than using someone who doesn't listen to commands, right?

Especially in the next period of time, Jaguar Land Rover will have to rearrange the personnel of the Celestial Empire and consider various contents such as joint venture work with the Korn Glory Group.

If you don't have someone you can trust in a key position, it's much more difficult to get these things done smoothly.

"How can I believe that you can do a good job in the position of president of Jaguar Land Rover?", Jiang Hui did not answer Kenny's question directly, but wanted to hear what else Kenny had to say.

"Mr. Jiang, I have been working in Land Rover for eight years, and all the middle-level personnel in the sales field are basically promoted by me, so I can completely control the sales and after-sales waiting side. Also, the vice president in charge of production is always my good friend, and I have already communicated with him before I came to meet you", Kenny finally used what he had prepared in advance.

(End of chapter)