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DPCA executives are in turmoil, and Chairman an Tiecheng will be transferred.

2024-05-17 Update From: AutoBeta autobeta NAV: AutoBeta > Industry Report >

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According to various media reports, an Tiecheng, deputy general manager of Dongfeng Automobile Group Co., Ltd. And chairman of Shenlong Automobile Co., Ltd., will soon be transferred to become the general manager of China Automotive Technology Research Center Co., Ltd. During its two years in office, DPCA failed to "turn the tide".

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In December, DPCA made a major personnel reshuffle when Su Weibin, then general manager of DPCA, was transferred to the position for only two and a half years, becoming the first senior executive to be dismissed during a period of slumping sales. Subsequently, nominated by the PSA Group and approved by the Board of Directors of Dragon Motor Co., Ltd., Massimo ROSERBA of France will take over his position.

With the departure of an Tiecheng, it also means that the top leaders of DPCA have been replaced and ushered in a new management team.

Dual-brand sales of DPCA reached 600000 in 2016, down 15.8% from 2015. Su Weibin and an Tiecheng successively came to DMC, but failed to stop the decline of the brand. Dragon sales fell to 377000 in 2017 and only 253000 in 2018, down 33 per cent from a year earlier. The sales target of DPCA in 2019 is 235000, the lowest in recent years. From January to August this year, DPCA sold a total of 81045 vehicles, down 56.7% from the same period last year, making it difficult to achieve the set target.

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In March 2017, an Tiecheng went south from FAW Group to serve as Deputy General Manager, standing Committee member of the Party Committee of Feng Automobile Group Co., Ltd., and Vice President of Dongfeng Automobile Group Co., Ltd. In June of that year, an Tiecheng officially succeeded Liu Weidong as chairman of DPCA.

At that time, DPCA had fluctuated greatly in terms of sales volume. In October 2017, an Tiecheng formulated a three-step strategy of "gaining a firm foothold, returning to the track and excellent development". It plans to achieve sales of more than 700000 vehicles in 2020, operating profit margin of more than 5%, and quality reaching the top three levels of the industry.

However, a series of adjustments failed to resist the continuous decline in sales, dual-brand development continues to be in the doldrums, personnel upheaval.

In August 2019, the layoff document of the Dragon closure factory was circulated online, which is said to be the first time in the history of China and France to reach an agreement on the internal control level of the company, thus changing the previous situation of poor cooperation between China and France. According to the plan, the Dragon I factory will be relocated to the Dragon III factory, and the existing factory will be taken over and stored by the government. The Dragon II factory will be sold together with the equipment. At the same time, DPCA launched a layoff plan, reducing its existing staff from 8000 to 5500 by the end of this year, and reducing the total number of employees to 4000 by 2020.

In a recent media interview, an Tiecheng frankly pointed out that with the decline of the Chinese market and the intensification of competition, the problems began to be exposed one by one, and the mistakes in DPCA's product pricing strategy led to disorderly competition among dealers.

On September 4, 2019, DPCA released a "yuan" recovery plan to replace an Tiecheng's plan to return to the track two years ago.

The "Yuan" recovery plan is divided into three stages. The first stage is the Peiyuan stage (2019), in which DPCA will focus on reducing costs, reducing the break-even point of the enterprise to less than 180000 vehicles, and striving to turn its cash flow from negative to positive. The second stage is the Guyuan stage (2020-2021), in which Shenlong Automobile will achieve stable profits, annual sales will be raised to 250000 vehicles, and the break-even point will be reduced to 150000 vehicles. The third stage is the Tuoyuan stage (2022-2025), when the annual sales of DPCA will stabilize at the level of 400000 vehicles.

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An Tiecheng has been transferred, and the Dragon has launched a new development plan, but there are still many variables whether it can be restored to that year's level.

An Tiecheng Information:

An Tiecheng, male, born in June 1963, joined Communist Party of China in December 1986, graduate degree, graduated from Jilin University of Technology, majored in Management Science and Engineering, Senior engineer, currently Deputy General Manager of Dongfeng Motor Company and member of the standing Committee of the Party Committee. Joined the work in July 1984, successively served as the deputy factory director of the body factory of China first Automobile Group, the Chinese minister of the planning department of FAW-Volkswagen Automobile Co., Ltd., and the general manager of FAW-Volkswagen Automobile Co., Ltd. He was appointed General Manager of FAW car Co., Ltd in April 2013, General Manager of FAW car Co., Ltd in February 2016 and Party General Branch Secretary of Red Flag Division of FAW Co., Ltd., and General Manager of FAW car Co., Ltd in November 2016. In March 2017, he was appointed Deputy General Manager and member of the standing Committee of the Party Committee of Dongfeng Motor Co., Ltd., and served as Chairman of DPCA in June.

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