Chuan BAIC Group newly appointed two deputy general managers, Foton department executives "broke in"

On January 7, according to the "21st Century Business Herald", the management of BAIC Group in Beijing underwent personnel adjustments, and BAIC has announced that Gong Yueqiong, chairman of Foton Motor, and Liu Yu, chairman of BAIC BJEV, have been promoted to deputy general managers of BAIC Group.

According to public information, both executives were born in 1976. Baiqi BJEV, which Liu Yu is responsible for, and Foton, which Gong Yueqiong is responsible for, are important business segments of BAIC Group. However, unlike BAIC BJEV, which is "concubine" of BAIC, Foton, as an independent listed company, has always had a relationship with BAIC.

This is an important personnel adjustment made by BAIC Group for the first time in a year. In January 2021, the personnel adjustment plan of 6 subsidiaries and 8 senior executives of BAIC was centrally implemented.

Although the two entered the top management of BAIC at the same time, the performance of the business units previously responsible for the two vice presidents was very different.

BAIC's new energy vehicle sales were 103,000 units in 2017, 158,000 units in 2018, and 150,600 units in 2019, reaching a peak in sales. Since then, it has fallen all the way, with full-year sales of only about 25,900 units in 2020. As a high-end pure electric brand of BaicC BJEV, Jihu Automobile will deliver only 4993 units in 2021.

According to the financial report, BAIC achieved revenue of 90.375 billion yuan in the first half of last year, while Beijing Benz achieved revenue of 88.059 billion yuan, contributing 97.4% to the total revenue of BAIC co., LTD. Another joint venture, Beijing Hyundai, has seen sales decline since the second half of 2017, with annual sales only one-third of that of the highlight moment.

Compared with the challenges of BAIC, the performance of its Beiqi Foton has maintained growth, with a total of 538,000 vehicles sold in the first three quarters of 2021, with revenue of 47.75 billion yuan, an increase of 4.63% year-on-year; net profit of 290 million yuan, an increase of 3.94% year-on-year. However, its acquisition of the Borgward brand in 2014 has always dragged down Foton's performance, with a loss of 4 billion yuan in three years of acquisition.

Sales volume is seriously "partial", other business sectors have encountered crises, and BAIC is facing development challenges. The appointment may reveal BAIC's reform actions. As one of the six traditional automobile groups, BAIC still has a long way to go to achieve the overall improvement of brand image.

(Wen |," Caijing Tianxia Weekly, Intern, Cao Tingting, Editor| Mao Shiyang)