As we know, Chang’an Auto consists of the car unit from Aviation Industry Corporation of China and China Chang’an Automobile Group from China South Industries Group. As the agreement, Changhe, Hafei and other 3 companies were merged into Chang’an Auto. This set 2 records then: first central enterprises reorganization and biggest auto reorganization. The target for Chang’an Auto set at that time was 3 million capacity in 2012 and 5 million in 2020. But things went contrary to wish. The profit from the merge was too little due to local government and central enterprise management etc. The result is Changhe joining BAIC Group and Hafei falling into layoff trouble.
The large system of Chang’an Auto mainly was born from that big merger. But this system doesn’t run as well. One of biggest resistance is local government. For example, the human resource of Changhe auto is fully controlled by local government although Changhe auto is held by Chang’an Auto. And some old staff are contradict for the merger and not willing to let Chang’an auto manage Changhe auto. Also there are also disagreements between Chang’an Auto and Changhe & Hafei auto.
In auto industry, many specialists say this merge is a kind of waste for resource because the willing is not unified. This merge was decided by government and out of demand of central enterprise. So there must be some controversies. At this point, Chang’an auto should learn more from Volkswagen merging Skoda.
