Since the recent personnel changes at FAW Group, the company is still in a transitional phase. In this round of staff reorganization, key technical personnel have started to submit their resignations one after another. These engineers possess unique expertise that is difficult to find in other Chinese automotive companies. Following the announcement of FAW's personnel reform, BAIC, Geely, and other independent automakers quickly moved north, setting up recruitment booths near FAW's technology center in an attempt to "snatch" top talent.
On September 21, the Hongqi New H7 model was officially launched in Beijing. That same day, the China FAW Technology Center, the largest automotive research and development base in China, announced its delisting and completed its 60-year mission.
“Besides Director Liu’s resignation, Director Li also left. In just two days, many people have left the technical center, with some even queuing to leave,†revealed an insider from FAW Group to reporters.
**The technology center is only 300 meters away from the “grabbing†campaign**
“BAIC, Geely, and Chery have set up job fairs in a nearby hotel, just 300 meters away from the technology center. Their goal is clear — to recruit FAW’s top technical talents,†said insiders.
Following the announcement of FAW’s personnel reform on September 18, independent automakers like BAIC and Geely rushed to Shenyang to “recruit talent.†They’ve long been seeking R&D professionals in the automotive industry.
At the mobilization meeting for FAW Group’s deepening reform on September 18, Chairman Xu Liuping pointed out three major issues in the current personnel system: lack of motivation, unclear career paths, and low sense of achievement among employees.
To address these, FAW launched a personnel reform initiative. The first step involved introducing a competition mechanism, requiring all key positions to be filled within a week. It is expected that around 25% of unqualified staff will be placed in a “reservoir.â€
“Years ago, the group had already planned to restructure the technology center. Now, departments and businesses are being split. Employees must not only focus on their current roles but also consider their future careers,†said an insider.
Additionally, at the job fair, some senior technical personnel who resigned were found to have been unable to prepare competitive plans due to the tight timeline, prompting them to leave.
“Some of the departing employees are well-known senior engineers in the industry, in their 40s or 50s — the peak of their careers. Other companies are actively recruiting them,†said insiders.
FAW’s reforms come with challenges, but they are seen as essential for the company’s rebirth and its ambition to become the “first brand of China’s auto industry and a global golden signboard.â€
Earlier, at a meeting in September, Xu Liuping warned leaders: “If you can’t do your job well, you won’t be happy, your family won’t be happy, and your subordinates won’t be either. Such people will be let go.â€
Established in 1950, the China FAW Technology Center has been responsible for R&D of commercial vehicles and passenger cars, as well as key national projects. After its delisting on September 21, several new institutes were established, effectively splitting the former center.
**Is Xiali returning to the “Wang†series models?**
Xu Liuping’s reforms aim to streamline FAW’s core business — building cars. According to the organizational restructuring plan released on September 18, the Hongqi brand is now directly managed by FAW headquarters, while other brands like FAW Xiali are grouped under the Pentium Business Division.
“FAW Xiali is a listed company, and so is FAW Car. Managing them under the same division helps coordinate resources from R&D to marketing,†said a Tianjin FAW representative.
On September 22, FAW Xiali announced it would transfer shares through public collection, leading to a change in its controlling shareholder.
“The company now has multiple brands, and Xiali is temporarily in a quiet period. This is part of our brand strategy,†the representative added.
Cao He, chairman of Zhongrong Venture Capital, believes FAW is moving to abandon Xiali. “The public collection suggests FAW wants to get rid of Xiali quickly, which is a strategic move to eliminate internal competition.â€
As early as August 2, Xu Liuping emphasized the need for bold reforms and focused efforts on building independent brands. Meanwhile, he met with officials from the China Ordnance Equipment Group to discuss potential collaborations in new energy and intelligent vehicles.
FAW is pushing forward with its transformation, aiming to strengthen its position in the global automotive market.
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