Changhe Auto ** Follow-up: Changan fades Suzuki into the game

Changhe Automobile, which has experienced a series of strikes, has been established by the senior management team. However, what can't be avoided is the balance of interests among Changhe Automotive, China Changan Automobile Group and Japan Suzuki.

On February 13th, this newspaper published the article “The Insider of Changhe Strike Called Used” and reported on the Changhe strike. At that time, the Changhe management team was not yet clear. More than a month later, the current Changhe, with Tong Zhengrong elected as the new general manager, seems to have formed a “self” management situation.

An insider of China’s Chang’an Automobile Group told reporters that Chang’an’s personnel are still retained in Chang’e’s management team, and Chai Wei and Zhou Jiazheng’s posts in Chang’an, China, have not changed. Prior to the Changhe strike, Zhou Jiazheng was deputy general manager of Changhe Automobile and Chai Wei served as general manager assistant of Changhe Automobile and general manager of sales company.

More noticeable is that on February 26th, the rumor of Suzuki Suzuki's withdrawal from Changhe Suzuki has not dissipated. The Japanese who had not appeared in the past few years represented Nakajima Makihiro and attended the open event of Changhe Suzuki and delivered a speech. Changhe Automobile public relations official commented on Weibo: “The speech of Nakajima broke the rumors of the divorce between Changhe Auto and Suzuki!”

Divorced from Suzuki, Helpless to Enter In the Changhe Suzuki National Business Conference held in Zhengzhou on February 26, Nakajima Makijima, Deputy General Manager of Japan who has not participated in the open event of Changhe Suzuki for many years, attended and addressed. Suzuki stressed that Changhe Suzuki will be stronger as a cross-border car represented by Paixi. Even on November 18 last year, the strategic model Pai Hi listed on the event, Nakajima Shindo did not show up. This time, his sudden appearance was not surprising.

In this regard, the auto industry commentator Zhang Zhiyong told reporters that when Suzuki discovered that Changhe Suzuki had no hope of separation, it must face the status quo and make improvements.

Nakajima's high-profile appearance at Changhe Suzuki’s publicity campaign is actually an indication of the attitude of Suzuki, who chose to make it at this time. On the one hand, it can improve the relationship with Changhe Suzuki. On the other hand, this will provide a calming role for Changhe Motors and its dealers. In addition, at the meeting, Suzuki Corporation of Japan stated that it would promote the cross-border car market represented by Paixi Brand, and its support in terms of models will help improve the future performance of Changhe Suzuki.

Japan Suzuki wished to withdraw its capital. It did not support Changhe Suzuki's attitude. Since the strike, Changhe Suzuki had no qualifications for cancellation and Japan did not withdraw its capital. For the sake of business development, it would be wise to ease the relationship with Changhe Suzuki. Nakajima Megumi chose to attend Changhe Suzuki’s public event at this time, and the side showed the attitude of Suzuki.

In an interview with Changhe Automotive at the beginning of February, the Changhe Automobile staff stated that the Japanese Suzuki once called for a phone call. Why can sales increase in January? This shows that Suzuki of Japan had not been positive about Changhe.

The Changhe strike that began on January 13 was due to the cancellation of Changhe Suzuki’s production qualification and was transferred to Changan Mazda. Later, after the strikes and the mediation of Jingdezhen city government and other forces, Changhe Automobile finally maintained its status quo.

Zhan Wenchao, President of Chang'an, disclosed that long before the reorganization of the automotive business by the Armed Forces Group and AVIC, due to the loss of Changhe Suzuki for many years, Suzuki had proposed to withdraw its capital from Changhe Suzuki and virtually withdrew from Changhe Suzuki’s operation and management.

When Changhe Automobile was placed under the China Changan Automobile Group, Suzuki was still willing to withdraw from Changhe Automobile. China Changan agreed in principle to the Suzuki exit plan, but did not sign a formal purchase agreement. After the strike, the revocation of the qualification of Changhe Suzuki was terminated. Affected by this, Japan Suzuki originally planned to suspend Changhe and Suzuki’s “divorce” appeal.

There is no hope of divestment. What Suzuki Corporation of Japan can do is to help Changhe Suzuki achieve stable development and improve its performance. From the perspective of performance, Changhe Automotive's performance has improved gradually over the past three years. Since it was restructured by Changan Automobile in 2009, it has lost more than 600 million yuan. By 2010, the amount of losses has dropped to 180 million yuan. In 2011, Changhe Automobile finally turned losses and realized a profit of 1 million yuan.

In Changhe Suzuki’s national business meeting, Tong Zhengrong, the newly appointed General Manager of Changhe Automobile, proposed to sell 200,000 units as the sales target for this year, while Suzuki Corporation of Japan stated that Changhe Suzuki will be a cross-border car represented by the strong sentiment of hi-tech.

This indicates that Japan Suzuki has no choice but to reach an agreement with Changhe's goal: to maintain sales and increase performance.

Changhe's "autonomy" remains in Chang'an. At the Changhe Automotive Cadre Conference on February 29, Tong Zhengrong was recommended as the General Manager of Changhe Automobile, and Wu Jijun and Xiang Lianchao were also selected as Deputy General Manager of Changhe Automobile.

Tong Zhengrong’s previous positions were Deputy General Manager of Changhe Automobile, Party Secretary and General Manager of Changhe Suzuki. Wu Jijun, Xiang Lianchao and others were all internal members of Changhe Automobile before they took office. Changhe Automobile has reached the wish of “general production” by the general manager. With the finalization of the general manager, Changhe Automobile seems to usher in a management team formed by “owners”.

In fact, before the General Assembly elected the General Manager on February 12, the general manager of Changhe Automobile has been empty for 17 days. At the Changhe Motor Workers' Congress on February 12th, the interim management committee composed of Jingdezhen Town Government and China Chang'an announced several important contents including staff salary adjustment and 2012 production plan, but did not announce the new general manager. Specific candidates. This seems to indicate that the choice of general manager is more complicated than expected. People in the industry point out that the hardest part is how the executive team balances multiple interests.