On July 5, prominent blogger Sun Shaojun took to Weibo to reveal an internal memo originating from a nationally recognized top 100 auto dealer group. This memo, disseminated by the group's Human Resources department on July 1 and titled "Notice Regarding Group Operational Review and Salary Assessment Control," outlined stringent measures in response to substantial losses incurred during the second quarter. Faced with the investors' inability to sustain salary disbursements through loans, the group decided to implement rigorous salary controls. Specifically, salaries for managers and higher-ranking staff in unprofitable divisions, as well as at the group headquarters, would be suspended entirely for July. Meanwhile, frontline employees in these divisions would face a 30% salary reduction. Additionally, the memo introduced rigorous performance evaluations and a system to eliminate the lowest-performing individuals.

This development has ignited fervent debates among netizens, with many questioning the legality of the memo, suggesting potential violations of the 'Labor Contract Law.' According to data from the China Automobile Dealers Association, the proportion of domestic auto dealers operating at a loss has surged to 55.7% in 2025, with a mere 23.5% remaining profitable, painting a grim picture of the industry's struggle for survival.