Since the recent personnel changes at FAW Group, the company is still in a period of adjustment. In this wave of transfers, key technical staff have started resigning one after another, submitting their letters of resignation to higher authorities. These technicians possess unique expertise that is hard to find in other Chinese car companies. Following the announcement of FAW's personnel system reform, BAIC, Geely, and other independent automakers quickly moved north, setting up job fairs nearby in an effort to "recruit talent" overnight.
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, development, and testing base in the country, announced its delisting, completing its 60-year mission. An insider revealed that in the past two days, several directors, including Liu and Li, had resigned, and many employees were leaving the center, with some even queuing up to exit.
Just 300 meters away from the technology center, BAIC, Geely, and Chery set up a recruitment fair, clearly aiming to attract FAW’s top technical talents. The move came shortly after FAW’s personnel reform announcement on September 18, which triggered a rush among independent automakers to "poach" skilled workers.
At the mobilization meeting for FAW's deepening reform on September 18, Chairman Xu Liuping highlighted three major issues in the current personnel system: lack of motivation for value creators, unclear career development paths, and inefficient performance management. As part of the reform, FAW introduced a competition mechanism, requiring all important positions to be filled within a week. It is expected that one-fourth of unqualified staff will be moved into a “reservoir†for reassignment.
Some insiders mentioned that the restructuring has been in the works for years, and now departments are being split. Employees are not only focused on their current roles but also thinking about their future career directions. Additionally, some senior engineers who had no time to develop competitive plans due to the tight reform timeline chose to resign.
Among those leaving are well-known industry veterans in their 40s and 50s—prime years for innovation. Their departure could pose a risk to FAW, as they hold critical technologies. However, reforms often come with challenges, and this process is seen as essential for FAW’s rebirth as the leading Chinese automotive brand.
Xu Liuping had already warned leaders earlier in September, stating that insufficient ability would lead to discomfort and eventual dismissal. This sets the tone for the ongoing transformation.
The FAW Technology Center, established in 1950, was responsible for R&D of commercial and passenger vehicles, as well as key state projects. After its delisting, new institutes such as the R&D General Hospital and Intelligent Network Development Institute were created, marking the center's division.
FAW’s restructuring also includes moving the Hongqi brand under direct headquarters control and creating the Pentium Business Division, which includes brands like Xiali, FAW Car, and Jilin. This aims to streamline operations and enhance coordination across R&D, manufacturing, and marketing.
FAW Xiali, a listed company, recently received notice of potential share transfer, signaling a possible shift in brand strategy. While Xiali may temporarily step back, FAW plans to expand its multi-brand portfolio.
Analysts suggest that FAW’s decision to publicly collect shares of Xiali indicates a clear intent to move away from it. This strategic move aims to reduce internal competition and focus on core brands.
In August, Xu Ping of China Ordnance Equipment Group visited FAW, discussing collaboration in areas like new energy and intelligent vehicles. FAW plans to strengthen ties with the group, potentially signing a strategic agreement in October.
Overall, FAW’s reform is a bold step toward becoming a global leader in the automotive industry.
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