Xu Jianyi resigns from his post as FAW Car Chairman

Gasgoo.com (Shanghai April 14) - FAW Group announced this week that Xu Jianyi will be resigning from his position as Board Chairman of FAW Car, the Beijing Times reported today. Mr. Xu will continue to serve as Board Chairman of FAW Group.

According to officials from FAW Car, Deputy Board Chairman Wu Shaoming will temporarily take over Mr. Xu's (pictured) responsibilities until a new board chairman is elected.

Prior to this news, Mr. Xu was serving as board chairman for FAW Group and all three of its subsidiary companies: FAW Car, FAW Qiming Information and Tianjian FAW Xiali. With the establishment of FAW Holding Group and separation of its strategic and managerial functions, Mr. Xu will no longer head up the subsidiary companies' boards.

FAW Group also emphasized that its current wave of internal reorganizations is in no way related to the disappearance of over 20 billion yuan ($3.2b) in property assets. Nearly 30 FAW executives are under investigation regarding the funds, which vanished during the company's recent listing process. FAW has yet to officially comment on the case.

FAW Car suffered a net deficit of 756 million yuan ($121.18m) in 2012, over 448 percent less than the amount it reported earning the previous year. Several in the media have attributed the deficit to the manufacturer's attempts at internal reorganization, something which FAW Car has officially denied. According to its calculations, the manufacturer is expecting to earn a profit of between 300 million yuan and 400 million yuan ($48.09m-$64.12m) in the first quarter of this year.