Changan Automobile has reshuffled its top leadership. On October 16, Chongqing Changan Automobile Co. announced that Zhu Huarong had applied to resign as chairman, director and legal representative of the listed company, and would no longer hold any post at the automaker or its controlled subsidiaries. At the same meeting of the 10th board, directors elected Zhao Fei, previously president, as the new chairman and legal representative, according to D1EV, a Chinese electric-vehicle outlet that republished the announcement from Gasgoo.
Zhu is not leaving the wider group. He remains Party secretary and chairman of China Changan Automobile Group, the parent-level automotive holding company, where he will continue to oversee the overall planning and long-term development of the group’s vehicle business. The board’s statement described the change as a way to let the group play a stronger role in setting strategy and coordinating the broader portfolio.
Changan Automobile is the listed arm of China Changan Automobile Group, one of China’s established carmakers. Its passenger-car line now includes Avatr, Deepal and Qiyuan, the brands developed during Zhu’s tenure as part of the company’s electrification push.
Strategy and succession
The board credited Zhu with guiding Changan through its “third startup” phase, the company’s term for the current transformation. It singled out three strategic programmes: the new-energy push called “Shangri-La,” the intelligent-technology programme called “Beidou Tianshu,” and the globalisation drive called “Haina Baichuan.” The statement said Zhu’s leadership helped build the three newer brands and moved the company toward becoming a smart, low-carbon mobility technology company.
The leadership changes go beyond the chairman’s office. Ye Pei, who had been senior executive vice president, was appointed president. Yang Dayong moves up from executive vice president to senior executive vice president, and Deng Chenghao was promoted from vice president to executive vice president.
What the board wants
Changan said the adjustment was designed to give China Changan Automobile Group a clearer role as a specialised automotive group in setting strategy, allocating resources, promoting coordination, controlling risk and strengthening incentives. The listed company said the new structure would help it optimise market-based mechanisms, sharpen its focus on global operations and promote what it described as high-quality development of the listed vehicle maker.
In practice, the split gives Zhu responsibility for group-level planning while Zhao Fei runs the listed company. Ye Pei takes on the president’s duties after serving as senior executive vice president.
The reshuffle comes as Changan expands its new-energy vehicle (NEV) line-up — the Chinese industry term for cars that include battery-electric and plug-in hybrid models. Avatr, Deepal and Qiyuan are the brands Changan has built to lead that push, and the Haina Baichuan strategy is meant to carry them into overseas markets. With strategy and execution now separated at the top, Changan is signalling that its next phase of growth will be managed from both the group and the listed company.
