Anti-corruption spreads to domestic auto companies

In 2014, when auto production and sales both broke through 23 million vehicles, an undercurrent of “anti-corruption” was quietly making waves in the automotive industry. “Beware of legal business, otherwise... Oh!” The warnings from the Central Patrol Group may allow some automakers to scratch their heads.

From July 29 to August 29, 2014, the Central Inspection Group No. 13 (hereinafter referred to as the Central Inspection Team) conducted a special inspection of FAW Group Corporation. Including the former deputy general manager of FAW Group Andong Dewu, FAW-Volkswagen former deputy general manager, sales company general manager Li Wu, FAW-Volkswagen Audi sales division deputy general manager Zhou Chun, including a number of senior executives were investigated. In September 2014, the inspection team came to Changchun again to interview more than 150 people and gather information. Since then, many people in FAW Group have been taken away to investigate or assist in investigations.

Two months later, on November 27, the Central Inspection Team officially entered Dongfeng Motor. At present, Assistant General Manager of Dongfeng Automobile Co., Ltd., Vice President of Dongfeng Motor Co., Ltd., and Party Committee Committee often appoint Yong and Deputy Party Committee Secretary and Chairman of the Trade Union of Dongfeng Motor Company. Fan Zhong, Chairman of the former Dongfeng Chaoyang Diesel Engine Co., Ltd., was suspected of serious violations of laws and regulations, successively Accept organizational surveys.

On December 31, 2014, the party committee of Dongfeng Motor Company severely dealt with 17 cases of eight subordinate enterprises that violated the spirit of the central eight regulations and that the public funds traveled overseas (overseas). The party committee of the company decided to give 19 people party and government discipline. Among them, Chen Binbo, member of the Party Committee and executive deputy general manager of Dongfeng Honda Automobile Co., Ltd., was dismissed from the party and relegated. In the round of anti-corruption of Dongfeng Motor, the total amount of related processing has involved 55 people.

The greater impact and rectification also lie at the enterprise level, especially FAW Group.

On January 30, 2015, FAW Group announced the situation regarding special inspections and rectifications: FAW Group will carry out a thorough rectification of 26 issues, and for the first time, it acknowledged the problems such as “lag in self-development”. In view of the large investment in the shaft and gear area, overcapacity and redundant construction, FAW Group cancelled the third factory project of the car company, the new plant project of the vehicle and powertrain of Tianjin Xiali Company's Airport Development Zone, and the relocation project of the first foundry of the foundry company. Period, the second phase of the liberation company shaft center project and other projects.

It is worth noting that the cancellation of the two OEM projects involved two listed companies under the FAW Group: FAW Car (000800.SZ) and FAW Xiali (000927.SZ). The planned vehicle project was cancelled and it was the first time in the development history of car companies. The improvement of FAW Cars and FAW Xiali's unsatisfactory performance and the fact that FAW's independent development is lagging behind are particularly urgent.

The performance forecast of FAW Car shows that the net profit attributable to the shareholders of the listed company in 2014 is expected to be 50 million to 250 million yuan, a year-on-year decrease of 75.18% to 95.04%. Although FAW Car achieved 293,300 units of vehicle sales last year, a year-on-year increase of 18.04%, except for the increase in sales of its Pentium brand, Mazda Motors and red flag sales, which are considered to be the flag of FAW, have declined to varying degrees. In 2014, the cumulative sales of the Hongqi sedan were nearly 2,708 vehicles, a year-on-year decline of 8.54%.

FAW Xiali sold only 72,100 vehicles in 2014, a decrease of 44.79% year-on-year. Its performance forecast shows that it expects to have a loss of 1.55 billion yuan to 1.75 billion yuan in 2014, and the amount of losses will further expand from 480 million yuan in 2013. FAW Xiali, which has suffered losses for two consecutive years, will also face the risk of delisting from the Shenzhen Stock Exchange.

In fact, anti-corruption is a common problem that companies face. The last time in 2011, Peugeot Citroen China [microblogging] the original mass media exchange person in charge of the red, was accused of using the convenience of the company more than 1.2 million yuan. The rotation of jobs is a common method used by companies to fight corruption, but it is still difficult to eliminate corruption. FAW-Volkswagen is an example. After the “Statutory Country Pine Case” occurred, FAW-Volkswagen conducted its largest ever mid-to-high-level personnel adjustment in the beginning of 2013: four sales regions were adjusted to six regions, based on the original sales director and marketing director. , New service director, almost all of the regional director re-leveling transfer, the sales headquarters of the company also conducted a major change in the middle and senior levels. But now, it's still a hundred tricks.

Of course, anti-corruption investigations also help companies find and solve problems to a certain extent, and promote the healthy development of enterprises. For FAW Group, this anti-corruption project will promote the development of its own brand and speed up the overall listing process of FAW Group. FAW Group stated that it will focus on the development of FAW's own brands and will formulate strategic countermeasures in conjunction with the “13th Five-Year Plan”. The specific measures will be included in the “China FAW Group Company Product Brand Strategic Plan”. For FAW Group, this is an opportunity to step out of the anti-corruption turmoil and accelerate development.

In 2014, FAW Group and Dongfeng Motor became the anti-corruption eye of the auto industry. In 2015, this anti-corruption storm affected more auto companies and automakers. In the framework of industry norms, laws and regulations, autos need more self-discipline.