SAIC: Changes in Leadership


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    SAIC: Changes in Leadership

    Post by Windy on Mon Dec 16, 2013 4:59 am

    SAIC into the shift of the transition period: Chen Hong takes over as party secretary

    Rumored changes SAIC senior finally opened a tip of the iceberg.

    December 9, Shanghai Municipal Party Committee Organization Department and the Shanghai SASAC relevant leaders in Weihai headquarters announced SAIC: From SAIC Chen Hong took over as party secretary Hu Maoyuan.  And because the identity of the previous Hu Maoyuan, chairman and party secretary of SAIC, Chen Hong's position as vice chairman and president of SAIC.  This means, will continue as chairman Hu Maoyuan, SAIC is still the "number one", and Chen Hong is three jobs, as party secretary, vice chairman and president.

    "The SAIC senior adjustments can be regarded as a smooth transition under the SAIC leadership team." Informed sources, due to the birth of Hu Maoyuan April 1951 April 2014 will be at least 63 years, is facing the problem of retirement.  Chen Hong took over as party secretary, SAIC increasingly clear the new management team.

    Hu Maoyuan last year

    December 9, the Organization Department of the CPC Shanghai Municipal Committee intends to serve for six leading cadres were before their appointment.  And Chen Hong also part of Shanghai Municipal Party Committee Organization Department of the unified deployment of cadres, as party secretary positions do not belong to the listed company announcement, the SAIC (600104) did not reflect the day of the announcement.

    After the 9th announced the appointment of two in the afternoon, Hu Mao and Chen Hong spoke briefly respectively.  While still served as SAIC chairman, Hu Maoyuan, but because of the age of retirement in April next year has been expected.

    From the sales point of view, this year, SAIC breakthrough 5,000,000 no suspense, China's auto industry will continue to maintain first.  It is particularly worth mentioning is that the SAIC report, SAIC brand cars have a place, in 2013 sales of more than 230,000, becoming one of the few independent brands to grow the business.

    SAIC brand from the first car off the assembly line Roewe 750, just after five and a half, on the realization of 200,000, became independent brand reached 200,000 steps fastest.  And, with most of the domestic independent brand car enterprises are facing a lower price, brand premium weaker different, SAIC brand average more than 110,000 yuan, direct and joint benchmarking.

    These results were obtained by counting its own brand, with emphasis on SAIC's own brand strategy under the leadership of Hu Maoyuan are inseparable.

    SAIC acquired the remaining assets from the UK to promote ROVER, and to promote the integration of the South, will also be incorporated into SAIC MG brand own-brand system, the implementation of a dual-brand strategy, Hu Maoyuan not only a top-down push from the strategic level, but also very concerned about its own brand Every detail of development.  Reporter clearly remember, Hu Maoyuan in several conversations with reporters, has repeatedly talked about how to make sense of belonging NAC staff on the South after integration.

    In addition, Hu Maoyuan also insisted that the development of new energy vehicles, the company's future competitiveness as a strategic reserve.  Proposed the development of new energy vehicles as enhance their strength and improve the competitiveness of enterprises breakthrough, and that "five" share with the traditional car market as new energy vehicles, can reach about 20%.

    This year, with the launch of the SAIC strong pure plug-in hybrid Roewe 550Plug-in, SAIC also successfully completed the first phase of the new energy goals, namely the development of the first generation of new energy products has been completed.

    Chen Hong is still long way to go if the succession

    By convention, the party secretary and chairman of SAIC almost entirely filled by one person.  This means that, after serving party secretary, next year is likely to smooth succession Chen Hong Hu Maoyuan after retirement.

    In a brief speech on the 9th, and again referred to SAIC Chen Hong to become a leading, internationally competitive enterprises.  Hu Maoyuan has been the leading term in the realization of a chance if Chen Hong took over as chairman next year, then served as SAIC is to become an international competitive corporate responsibility.

    Although only a short slogan, but it is not easy to realize.  Although it is the first, but there is still the main source of profit for SAIC relies on three joint venture, Shanghai Volkswagen, Shanghai GM and SAIC-GM-Wuling.  In terms of sales, less than one twentieth of independent brands in SAIC's sales statistics.  From the point of view of profit, independent brands still "burn" phase.

    Engine of growth in China's auto market is still strong, and this is Chen Hong has been unyielding.  In an interview before the 21st Century Business Herald reporter an exclusive interview, Chen Hong had himself told reporters: the next 10 years, along with the steady growth of China's macro-economy, to further promote urbanization and steadily increase the income of China's auto market is still a large growth space, China's automobile industry still has much to offer.

    The reality is that the market is great, but its own brand essay task is very arduous.  Has a century-old foreign car brands, China's auto market is being "bombarded."  With its advantages of scale achieved before, constantly dropping in price, squeezing the profit is not high already own brand of living space.

    "Only one way out, is the need to upgrade at the same time scale, earnestly implement the innovation-driven development strategy to put innovation at the heart of global development." Chen Hong has begun to explore the road of innovation SAIC how to implement.  Reporters learned that, long ago, Chen Hong specially invited GM executives, he visited various bases with SAIC and SAIC asked him to put forward constructive suggestions.

    SAIC Future topics: core technical capabilities

    "The lack of core technology development experience SAIC's short board." As early as 2000, SAIC Technology Center, a returnees to leave, once wrote a letter to Chen Hong sincere faith, hope can set up a central research SAIC homes, into the core technology development to go, but not always along the core technology in the product entirely dependent on foreign companies to go on the road.

    In recent years, SAIC has been aware of the problem and begin the layout.  According to SAIC previous plan, independent sector will continue to increase investment, "Twelve Five" total investment of 45 billion yuan to build the completion of seven platforms, completed more than a dozen new models of delivery.

    Increase in R & D, while Chen Hong next step will be the reform of the research system, plans to build the Academia Sinica in the "Twelfth Five."  The so-called Academia Sinica, which is the entire SAIC's own brand of R & D centers, while providing technical support for vehicle and parts, and cutting-edge technology research.

    What is the future of automotive technology direction?  SAIC has been in research and exploration.  More than two years ago from a car intranet SAIC breakthrough, SAIC's initial investment in the inkaNet3.0 nearly 200 million yuan, the latter will continue to invest 200 million to 300 million yuan, to expand inkaNet3.0 platform, keeping the car networking lead.

    Meanwhile, SAIC also looking for a new breakthrough - new materials and new energy.  SAIC and Baosteel Group, a joint research and development of new materials for automotive lightweight vehicles, SAIC has extensive use of ultra-high-strength steel in electric cars Roewe E50 car body, the application of the proportion of lightweight materials and ultra high strength steel in excess of the market most Traditional models.

    The new energy after the first stage of the product out the next stage, SAIC to achieve commercial operation of new energy sources, new energy technologies will soon configured to do different engines different product platforms.  "Twelve Five", SAIC investment in new energy vehicles, will have invested on the basis of 2 billion yuan, plans to cast six billion yuan.

    These inputs can achieve the desired effect, so that the future can be achieved SAIC place in the international competition, will be a test of the new leadership wisdom.

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    Re: SAIC: Changes in Leadership

    Post by Windy on Tue Apr 29, 2014 5:54 am

    SAIC senior personnel changes soon Chih-Hsin Chen will serve as president

    China's auto industry leader, SAIC new term leadership increasingly uncertain. Today morning, "Wen Wei Po" published before the Shanghai Municipal management cadres mention any publicity, Chih-Hsin Chen, president of Shanghai Automotive Group Co., Ltd. aspiring.

    In fact, this has long been an open secret in the circle. Late last year, SAIC chairman Hu Maoyuan currently facing due to their age of retirement issues, has begun preparations for the next leadership transition.

    At that time, SAIC officially announced: Chen Hong, vice chairman and president of SAIC, has been formally appointed as party secretary. Chen Hong Hu Maoyuan as successor, has three jobs, served as party secretary, vice chairman and president. But then the outside world predicted, this is only a short-term transition, as usual SAIC "number one" and "two" are dual roles, and today also means that the latest appointments, executive vice president of SAIC, passenger Chih-Hsin Chen, general manager of the company, will be promoted smooth succession after Chen Hong, the successor president.

    ● help Shanghai Volkswagen trough

    From CV publicity point of view, "Chih-Hsin Chen, male, born in May 1959, Han nationality, native of Wuxi, Jiangsu, postgraduate PhD, Doctor of Management, senior engineer, in September 1979, joined China in April 1986 Communist Party. "But people familiar with the car knows that he has long worked in Shanghai Volkswagen, and laid the foundation for the re-emergence of this years Shanghai Volkswagen.

    He 1986-1997 Volkswagen in Shanghai, in the planning, logistics, purchasing department and other departments calendar 任股长, Branch Manager, Department Manager. 1997 was transferred to Shanghai ZF Steering Machine Co., Ltd., general manager of the work to 2000. November 2000 transferred to SAIC headquarters, he served as assistant to the president. September 2002, Chih-Hsin Chen served as the general manager of Shanghai Volkswagen, Shanghai Volkswagen Board of Directors. In 2002, Shanghai Volkswagen products annual sales topped the 300,000, setting a new record for China's car industry.

    But then as the old Shanghai Volkswagen models and other reasons, the company stumbled. Chih-Hsin Chen said at the time: "We are convinced, however admit defeat." To reverse the decline, Chih-Hsin Chen asked Shanghai Volkswagen postures, listen to the voice of the market, secretly concentrate on doing two things: First, strengthen the management of the channel and the terminal, proposed the concept of active marketing ; The second is to develop a joint independent research and development path. In 2007, Chen Zhixin reforms to get results, to enable enterprises to survive into the track of healthy development.

    Hai-Liang Zhang is currently the general manager of Shanghai Volkswagen, said the equivalent of 20 billion yuan of 2 billion euros of investment, as well as the scale of production exceeded one million, Chih-Hsin Chen are either strategically identified. One quarter of this year, Shanghai Volkswagen cumulative sales have exceeded 510,000, ranking first in the passenger car market.

    Properties of the joint venture, the Chinese decided closely with Germany to deal with. Although equipped with a translation, but in order to be able to do and German counterparts to communicate directly, Chih-Hsin Chen insisted self-German one hour a day, this stick is ten years, can do expertly German staff exchanges with Germany.

    ● own brand Roewe MG rise

    And in recent years, Chen Zhixin more and SAIC brand is linked together.

    December 26, 2007, SAIC and Nanjing Automobile Group officially signed at the Diaoyutai State Guesthouse "Cooperation Agreement": Nanjing Automobile Group's operating assets go under the name of SAIC, SAIC does not exceed 8% of the equity in exchange for Shanghai Automotive . SAIC's acquisition of Nanjing Automobile Group quietly hammer. The Shanghai Volkswagen are well-kept Chih-Hsin Chen received a group appointed as executive vice president of Shanghai Automotive Industry Corporation Group and general manager of the Nanjing Automobile Group surgeon "on South cooperation."

    Chih-Hsin Chen said he was with Hu Maoyuan, "the full integration of the South-South cooperation" requirement Chen Hong settled NAC. This character principle when he also got the NAC chairman Wang Haoliang, NAC president Yu Jianwei recognition. However, in addition to "the full integration of the South-South cooperation," the character required, very few people know the outside world, Hu Maoyuan to Chen Zhixin integration schedule is 100 days. Chih-Hsin Chen said: "This is the miracle of China's auto industry Hundred Days Campaign."

    "South cooperation" from January 2, 2008 officially launched, after Chih-Hsin Chen arrived in Nanjing, according to the group instruction, integrating three aspects. Today, the "South cooperation" has been more than five years, increasing the value of state-owned assets to achieve the corporate profit tax, employee income substantially increased.

    In early 2009, after a year, the Shanghai Automotive Passenger Vehicle Company's organizational structure has been a major adjustment, Chih-Hsin Chen became the highest responsible person. After a careful analysis of his Roewe, MG dealers are independent if it continues, not only is not conducive to the integration of resources, but also to sales management, media placement, brings many problems dealer profitability and decisively in order to create "Shanghai Automotive" as the main Roewe, MG and net sales model, as a year-round focus.

    2008 has just begun in South cooperation, Roewe sold only 26,000 year-round, but only 9207 MG. Today, Wal-wing Jazz has become its own brand of high-end, last year sales reached 230,000. 2013, MG3 total sales reached 45,446, an increase of 11.8%, as sales after the A0-class quality car POLO hatchback models. Roewe 350, the annual total sales reached 113,033, an increase of up to 51.9%, and from September 2013, four consecutive months of sales into the "A-class sedan million club" has become its own brand into the introductory price of only 8 million or more members of the "million club".

    ● After bigger, SAIC future how to go

    In recent years, SAIC developed so smooth. For high over, Chih-Hsin Chen faces no small challenge after the arrival of the future.

    Last year, SAIC total sales exceeded 500 million, becoming the first domestic car into the top five of the Group 5 million mark in car prices. Annual Report 2013 shows that in 2013, SAIC Group achieved total revenue of more than 5600 billion yuan, net profit of 24.8 billion yuan. This year sales target is 5.6 million. But a lot of people it seems, mainly because SAIC had two outstanding junior partner, Volkswagen and General Motors, "for a leader who can become SAIC." Joint venture Shanghai Volkswagen, Shanghai GM sales long occupied the country in the first three name of the two, and their own brands, although a lot of growth, is still not profitable.

    According to the beginning of the program, SAIC plans to sell 260,000 passenger cars, for sales of 280,000, profit 100 million yuan. If equal shares to each quarter, is to sell 65,000. But the data show that the first quarter, SAIC completed sales of 51,430 passenger cars, up to achieve a slight increase last year, despite reaching the basic objectives established by SAIC passenger cars, but slightly lower than expected.

    Chih-Hsin Chen's assistant, Jiang Jun, deputy general manager of SAIC passenger admitted that one reason for this is due to the adjustment of their own cause. Since last year, began to spin SAIC Roewe passenger cars and MG brands networks at all levels of the market, resulting in the first quarter of last resort SAIC passenger cars appeared certain degree of volatility in the market. The other reason affecting sales, Jiang Jun, lay the blame on external factors. "One is China's overall economic growth from the high-speed turn at high speed, so the Chinese auto market growth is also slowing. Coupled from the beginning of last year, dropping both channels and product price trends joint venture brands appear, which is its own brand great impact on product sales. "

    Shanghai state-owned enterprises as a leader in high-related aspects of SAIC's expected value. Therefore, relying solely on a joint venture to maintain sales growth, Chih-Hsin Chen is not the primary task of. How the pursuit of quality and efficiency in development, how to explore the state owned enterprise reform and practice, and enhance the core competitiveness of their own brands, and perhaps even more important issue.

    Recently, SAIC released the latest powertrain, intensive introduction of new energy vehicles, plans to go overseas to promote, but the ultimate goal is to fight the global distribution of SAIC, transnational business, international competitiveness and brand influence of multinational corporations.


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    Re: SAIC: Changes in Leadership

    Post by patpending on Tue Apr 29, 2014 8:01 am

    From the point of view of profit, independent brands still "burn" phase.

    I wonder what Mr Chen's strategy will be on this? The UK probably has the biggest cost base but it would be impossible to cut most of it, and in terms of rebuilding brand, network, and EU distribution things are far from ready.

    How will he set his stamp on MG?

    Morris Motors

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    Re: SAIC: Changes in Leadership

    Post by Morris Motors on Tue Apr 29, 2014 8:13 am

    Well they can either cut the UK cost base or try and make it pay. Given the launch of the MG3 and the increased volumes, it must be either 'less loss making' or 'more profitable'; or moving in that direction at least. There's not much cost they can take out of the UK; even the BTCC races are used in Chinese PR so that would preclude any cutbacks on that model.

    All the MG90 press talks of the British origins - given that SMTC as a global unit is at full stretch, I can't see any reductions happening there either.

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    Re: SAIC: Changes in Leadership

    Post by Windy on Tue Apr 29, 2014 9:19 am

    patpending wrote:The UK probably has the biggest cost base
    What do the most recent UK accounts say?

    The main problem is that they only have one model which is selling really well at the moment - the Roewe 350, which isn't available in the UK.

    Second problem is that they are creating a new global company currently making and selling quarter of a million cars per year with a target of 1 million and that needs investment. Is it really sensible to expect that investment to be repaying the investors already?

    Third problem is that they started with old designs. Their newest engine sells best and the huge investment in properly modern engines is only just about to see it's first sale, in the G10 which wont have huge sales figures, and the investment in New Energy looks to be going to take many years yet to start repaying itself.

    I don't really think any of those are really problems, just the current situation. They made long term plans and it will take time to achieve them.

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