Compared to other traditional manufacturing segments, the auto-making sector is expected to cash in a big "red envelope" as an improved economy has eased consumers' caution about spending on luxury goods like new cars, an industry watcher said yesterday.
"Employees at Yulon Motor Co (
But among the above-mentioned four companies, Hotai Motor, the biggest car maker in Taiwan by vehicle sales, may give smaller bonuses, Tsai said.
Fat year-end bonuses are not expected to continue next year.
"Yulon, which has a big portion earnings form its Chinese units, will suffer a significant setback in earnings due to increasingly fierce competition in China," Tsai predicts.
Yulon may offer more than five-month's salary as year-end bonus this year because of better-than-expected earnings, said Wu Hsin-fa (吳新發), spokesman of Yulon Nissan Co (裕隆日產), a spin-off unit of Yulon Motor Co.
Yulon's first 10-month earnings jumped 86.72 percent to NT$7.53 billion, which nearly doubled its full-year per-tax earning target of NT$4 billion.
China Motor, a joint venture of Yulon Motor and Mitsubishi Motor Corp of Japan, however, said it is likely to keep the bonus payment similar to that of 2002 despite a jump in earnings from its Chinese joint venture Southeast Motor Corp (東南汽車).
"Our calculation base doesn't include earnings from non-core business," China Motor Spokesman Hsu Li-min (許利民) explained. China Motor workers received additional six-month's salary payment for year-end bonuses last year, according to Hsu.
Ford Lio Ho Motor (
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