China’s BAIC Group to Perform Personnel Changes

Gasgoo.com (Shanghai May 16^th)- Decreasing sales drives BAIC Group in China to make adjustment of strategies by changing senior managers with Beijing Hyundai.

Li Yixiu, head of division of sales management of Beijing Hyundai, will take the position of Fan Jingtao to be the vice president of BAIC Group. And Fan will take the position of Li. And senior managers of BAIC Motor Corporation Limited including Li Jikai, executive vice president, will also be transferred to other positions.

BAIC Group aims to increase sales of products of Chinese brands to become Top3 in the Chinese market. However, sales of products of Chinese brands of BAIC have been less than that of its JV brands including Beijing Hyundai. Profit made by products of Chinese brands decreased by 26%, leading to a loss of RMB 8.7 billion yuan, in 2015. Then BAIC begins to invest more on developing SUV models which turn out to cater to customers in the Chinese market for increasing sales of products of Chinese brands.

Managers of Beijing Hyundai have proven record of good sales management. BAIC expect that changes of personnel can help it make breakthrough on improving sales of products of Chinese brands.

Beijing Hyundai will adjust organization structure, leading to more personnel changes.

Offices of division of sales management of Beijing Hyundai will increase to three including Customers Services Office, Sales Management Office and Brands Management Office. Then a great number of managers in Beijing Hyundai will get promotion or be transferred to other positions.

Sales of Beijing Hyundai were 1.06 million with a yearly decline of 6%, failing to meet the goal of 1.16 million, in 2015. In the first quarter of 2016, adjustment in marketing strategies failed to increase sales of Beijing Hyundai. However, its sales in April were 96,000 with a yearly rise of 6%, making Beijing Hyundai regain its momentum.

Whether or not the strategy of personnel changes can work remains to see.