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FAW Personnel Adjustment Again; Cooperation with Dongfeng Still Uncertain

Muping Wang From gasgoo.com| February 15,2017

Xu Jianyi,Xu Jianyi,FAW JILIN,Changan Auto

On 9th February 2017, Xu Jianyi, previous secretary of the party committee of FAW, was sentenced to 11 years and 6 months for bribe-taking. After that, SASAC published on its website with Notification of Affiche about the Person Selected for Central Enterprise vice Leader, which looks like to appoint Mr. Wang Guoqiang, secretary of the party committee and general manager of FAW JILIN, and An Tiecheng, general manager of FAW Car Company, to be vice-general manager of FAW.

There were experts pointed out since on 27th June of 2016, when FAW failed to solve the horizontal competition to have its overall shares listed and had its request for 3-year delay declined by stockholders’ meeting, the biggest problem existed in FAW is leaders and reformation, which has been proved by the frequent personnel changes.

On 7th July of 2016, Mr. Xu Xianping, previous general manager of FAW Group, was transferred to be chairman and secretary of party committee of Genertec. Then it was guessed that Mr. Xu Liuping, general manager, deputy secretary of party committee of China South Industries Group and chairman of Changan Auto, was to be appointed as the general manager of FAW Group. But it has been denied by Changan Auto.

In last August, 6 senior leaders of FAW Car including chairman Xu Xianping resigned collectively, which was related to the loss of FAW Car and FAW Xiali and added to the uncertainty of the list of FAW’s overall shares.

There are still rumors now said that, Mr. Qin Huanming, vice-general manager of FAW will take place of Mr. Xu Xianping to be general manager of FAW. Mr. Qin Huanming is now vice-general manager and member of the standing committee of party committee of FAW, and also chairman of FAW Stocks.

Since Mr. Wang Guoqiang and An Tiecheng were appointed as vice-general managers, the person selected as general manager is also expected to be published soon. The person should meet the requirements of CPC’s Organization Department, SASAC, provincial party committee of Jilin and FAW Group.

Now insiders of auto industry are disagreed about the merge of FAW and Dongfeng. Xu Xiangyang, professor of BUAA thought the most important problem of FAW and Dongfeng is to promote products competitiveness and profitability of self-owned brands. While there are some other people thought the merger of FAW and Dongfeng is prospective.


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