FAW, Dongfeng, Changan show great potential in merger
Shanghai (ZXZC)- A new personnel reshuffle among FAW, Dongfeng and China South Industries Group Co., Ltd. (CSGC) was took place recently, according to local media.
Liu Weidong, member of the standing committee of communist party and vice general manager of Dongfeng Motor Corporation Passenger Vehicle Company will take a new post in China South Industries Group Co., Ltd. (CSGC), parent company of Changan Automobile, to support the development of Changan.
Liu Weidong's new appointment is just part of the personnel reshuffle among the three state-owned enterprises. Previously, Dong Chunbo, former member of the standing committee of communist party and vice general manager of FAW Group has been working in Changan Automobile. Lei Ping, former executive vice president of Dongfeng Motor Corporation Passenger Vehicle Company, joined FAW as vice general manager to facilitate the reform of FAW Group. You Zheng, former assistant to general manager of FAW Group was appointed as vice general manager of FAW Group to help promote the implementation of Dongfeng's strategy of younger talented staff.
The personnel reshuffle can't be simply interpreted as a regular personnel adjustment. From a perspective of long run, it indicates the likeliness for the three companies to merge into one.
On Dec.1, 2017, FAW Group, Dongfeng Motor Corporation and Changan Automobile signed a strategic cooperation framework agreement in Wuhan, Hubei province, saying that they will cooperate in such areas as advanced generic technology innovation, the whole value chain operation of the auto industry, the strategy of going global together and new business mode. The cooperation immediately stirred up large public attention and guess.
On Dec. 12, Xu Liuping, Chairman and Party Committee Secretary of FAW Group, who was absent from the meeting of Audi core dealership investors, was said to be invited by State-owned Assets Supervision and Administration Commission of the State Council to talk about the issue on the strategic cooperation of FAW, Dongfeng and Changan.