SAIC Motor Corp., China's largest automaker, named Chen Hong, previously the company's president and vice chairman, its new chairman.
The state-owned automaker said Chen will succeed Hu Maoyuan, who retired last week after 15 years as SAIC's chairman.
Chen, 53, joined SAIC in 1984. For the next 20 years, Chen held senior executive posts at the automaker's joint ventures with Volkswagen AG and General Motors.
In 2007, he returned to SAIC to be the company's president and vice chairman.
Chen Zhixing, previously head of SAIC's passenger vehicle division, was named the company's president last week, according to SAIC.
Source - Automotive news China.
There is also an article about his predecessor which you may find interesting -
SHANGHAI -- Hu Maoyuan, who retired this week as SAIC Motor Co.'s chairman, had that rarest of qualities for the chief executive of a state-owned automaker.
He was bold, he took risks and he was not afraid to fail. And if China's automakers learn how to penetrate overseas markets, they can thank Chairman Hu for showing them how.
[See the accompanying article in this newsletter about Hu's successor, Chen Hong.]
To be sure, Hu had the necessary skills to rise within a state-owned company. After joining SAIC in 1968, he steadily worked his way up the ladder to the company's top position, and he dutifully carried out government mandates.
For example, when the central government called for domestic automakers to develop electric cars in 2010, Hu fell in line despite experts' reservations about the health of the EV market.
But in one aspect, Hu clearly stood out from the chiefs of other state-owned companies. Unlike his fellow CEOs at other state-owned automakers, he boldly led SAIC into Europe and other overseas markets.
Boldness is a quality rarely found among leaders of China's state-owned companies.
State-owned companies are controlled by government bureaucrats, and these bureaucrats would like the companies to take orders from them. In these corporate circles, boldness is a character flaw.
But Hu was not afraid to step out of line when the need arose. In 2004, he made a risky decision to acquire a controlling stake in Korean SUV maker SsangYong Motor Co. for $500 million. It was the first acquisition ever made by a Chinese automaker overseas.
Hu also hired former General Motors executive Phil Murtaugh
to integrate Ssangyong into SAIC's operations. It was another extraordinary step, since state-owned companies typically promote executives from within.
Murtaugh left his post as SAIC's vice president in 2007, but he remains the only foreigner hired by a Chinese state-owned automaker to fill a senior executive post.
In 2005, Hu followed up on the Ssangyong acquisition with another major deal abroad. SAIC bought the Rover 75 platform from MG Rover, and recruited former MG Rover engineers to staff its r&d center in England.
To be sure, Hu's foreign deals generated mixed results. His agreement with MG Rover paid off nicely, as SAIC used its Rover platform to launch the Roewe 750 mid-sized sedan and 550 compact sedan.
But the Ssangyong acquisition floundered.
Lacking experience with Korean labor unions, Hu struggled to cope with a series of strikes at Ssangyong. And in 2009, he was blindsided by a Korean court that ordered Ssangyong to restructure its assets -- a decision that significantly diluted SAIC's stake in the company.
You could argue that this was all part of the learning curve for SAIC -- a necessary experience for the first state-owned automaker to operate overseas.
Two thirds of cross-border mergers and acquisitions in the auto industry worldwide have failed, according to statistics. One can't expect SAIC to beat the odds every time it makes an overseas acquisition.
As a top executive at SAIC for nearly 20 years, Hu has left a rich heritage for the company. He helped launch a successful car brand -- Baojun -- for the company's microvan joint venture with General Motors.
And he was a trailblazer for domestic automakers seeking to expand globally. Following SAIC's overseas acquisitions, Geely acquired Volvo Car Corp. and Dongfeng Motor Corp. bought a stake in PSA Peugeot Citroen.
If China's automakers learn to compete in international markets, Hu will deserve much of the credit.
The state-owned automaker said Chen will succeed Hu Maoyuan, who retired last week after 15 years as SAIC's chairman.
Chen, 53, joined SAIC in 1984. For the next 20 years, Chen held senior executive posts at the automaker's joint ventures with Volkswagen AG and General Motors.
In 2007, he returned to SAIC to be the company's president and vice chairman.
Chen Zhixing, previously head of SAIC's passenger vehicle division, was named the company's president last week, according to SAIC.
Source - Automotive news China.
There is also an article about his predecessor which you may find interesting -
SHANGHAI -- Hu Maoyuan, who retired this week as SAIC Motor Co.'s chairman, had that rarest of qualities for the chief executive of a state-owned automaker.
He was bold, he took risks and he was not afraid to fail. And if China's automakers learn how to penetrate overseas markets, they can thank Chairman Hu for showing them how.
[See the accompanying article in this newsletter about Hu's successor, Chen Hong.]
To be sure, Hu had the necessary skills to rise within a state-owned company. After joining SAIC in 1968, he steadily worked his way up the ladder to the company's top position, and he dutifully carried out government mandates.
For example, when the central government called for domestic automakers to develop electric cars in 2010, Hu fell in line despite experts' reservations about the health of the EV market.
But in one aspect, Hu clearly stood out from the chiefs of other state-owned companies. Unlike his fellow CEOs at other state-owned automakers, he boldly led SAIC into Europe and other overseas markets.
Boldness is a quality rarely found among leaders of China's state-owned companies.
State-owned companies are controlled by government bureaucrats, and these bureaucrats would like the companies to take orders from them. In these corporate circles, boldness is a character flaw.
But Hu was not afraid to step out of line when the need arose. In 2004, he made a risky decision to acquire a controlling stake in Korean SUV maker SsangYong Motor Co. for $500 million. It was the first acquisition ever made by a Chinese automaker overseas.
Hu also hired former General Motors executive Phil Murtaugh
to integrate Ssangyong into SAIC's operations. It was another extraordinary step, since state-owned companies typically promote executives from within.
Murtaugh left his post as SAIC's vice president in 2007, but he remains the only foreigner hired by a Chinese state-owned automaker to fill a senior executive post.
In 2005, Hu followed up on the Ssangyong acquisition with another major deal abroad. SAIC bought the Rover 75 platform from MG Rover, and recruited former MG Rover engineers to staff its r&d center in England.
To be sure, Hu's foreign deals generated mixed results. His agreement with MG Rover paid off nicely, as SAIC used its Rover platform to launch the Roewe 750 mid-sized sedan and 550 compact sedan.
But the Ssangyong acquisition floundered.
Lacking experience with Korean labor unions, Hu struggled to cope with a series of strikes at Ssangyong. And in 2009, he was blindsided by a Korean court that ordered Ssangyong to restructure its assets -- a decision that significantly diluted SAIC's stake in the company.
You could argue that this was all part of the learning curve for SAIC -- a necessary experience for the first state-owned automaker to operate overseas.
Two thirds of cross-border mergers and acquisitions in the auto industry worldwide have failed, according to statistics. One can't expect SAIC to beat the odds every time it makes an overseas acquisition.
As a top executive at SAIC for nearly 20 years, Hu has left a rich heritage for the company. He helped launch a successful car brand -- Baojun -- for the company's microvan joint venture with General Motors.
And he was a trailblazer for domestic automakers seeking to expand globally. Following SAIC's overseas acquisitions, Geely acquired Volvo Car Corp. and Dongfeng Motor Corp. bought a stake in PSA Peugeot Citroen.
If China's automakers learn to compete in international markets, Hu will deserve much of the credit.
