|
SHANGHAI -- The management shuffle two weeks ago at Beijing Automobile Industry Corp. bodes well for the company. New CEO Wang Dazong is just what the state-owned auto manufacturer needs.
Several things make Wang a valuable choice for BAIC.
First, Wang was recruited from outside the company. And he was chosen by the company itself, not assigned to it by the Beijing municipal government.
Top executive changes at major Chinese state-owned automakers are common. Dongfeng Automobile changed its head in 2005, and First Automotive Works did the same in 2007. But these changes were orchestrated by the governments. When a government chooses a leader for a state-owned company, it has things other than the company's interests in mind.
Second, Wang's experience is exactly what BAIC needs.
Wang has international experience. After graduating from Cornell University in the United States with a Ph.D. degree in 1985, he joined General Motors. He worked his way up to engineering manager and technical fellow.
BAIC also needs Wang for his experience in China: For three years in the mid-1990s, he was country manager and chief engineer of Delphi Energy and Engine Management Systems in Beijing. In 2006, Wang joined Shanghai Automotive Industry Corp. as vice president of product development. He was put in charge of developing SAIC's own brand.
BAIC has yet to develop its proprietary brand for passenger cars. In 2007, its joint venture with Hyundai sold 231,100 sedans under the Hyundai brand, down 20.3% from 2006, according to the China Passenger Car Association. This contrasts sharply with the robust sales growth of most Sino-foreign joint venture carmakers.
For a long time, BAIC appeared to be living in its own world, suffering from slow decisions and overstaffing. Top management finally awakened to the challenges it is facing and embraced organizational change.
Wang is a breath of fresh air at BAIC, a company seeking to break the mold of an old fashioned state-owned enterprise. Now, the important thing to watch is how well he gets along with the company's president Xu Heyi, a visionary former Beijing government official, industry insiders cautioned. Wang can only succeed if Xu and BAIC are truly committed to change. |
