Chongqing Changan Automobile Company Limited(000625) start internal personnel reform: involving 39 departments and independent sectors

At the beginning of the year of the tiger, Chongqing Changan Automobile Company Limited(000625) set off a “Stormy” reform.

“There are 39 departments and more than 100 people involved in this adjustment. We should complete this reform on February 13.” On February 10, an insider of Chongqing Changan Automobile Company Limited(000625) disclosed to the reporter of the daily economic news that as early as before the Spring Festival, there were rumors within the company that personnel adjustment would be carried out, but I didn’t expect it to be implemented so soon.

On February 8, Chongqing Changan Automobile Company Limited(000625) held a cadre meeting to promote the tenure system and contractual management. First, all the general manager level personnel of all secondary units were dismissed and re employed. Then, the employment of general manager (person in charge of the unit), deputy general manager and manager level positions of non manufacturing units was completed on February 9 and 10, and the employment of manager level positions of manufacturing units and vacant positions without suitable candidates was completed on February 13.

From start to end, Chongqing Changan Automobile Company Limited(000625) this internal personnel adjustment lasts only 6 days. “We are changing our defense while fighting.” Zhu Huarong, chairman and Secretary of the Party committee, said at the cadre meeting on February 8.

On February 11, the above-mentioned Chongqing Changan Automobile Company Limited(000625) insider told reporters: “at present, the company has not announced any new appointment notice about this senior adjustment.”

“someone up, someone down”

Since the news of the launch of this reform came out, the outside world is curious, Chongqing Changan Automobile Company Limited(000625) how to complete a personnel reform involving 39 departments and more than 100 senior managers in just six days?

“The general manager and deputy general manager of the Department recommend themselves first. After the evaluation and consideration of the leadership, they will judge whether they are suitable for this position. If they are not suitable, they can compete for other positions. Those who fail to apply for any position will go to Chang’an learning center to study. Some people go up and others go down.” The relevant person in charge of Chongqing Changan Automobile Company Limited(000625) told reporters.

Specifically, the employment of the position of general manager (person in charge of the unit) is carried out through the way of “self recommendation + communication brewing + Organization recommendation”; The deputy general manager level personnel at L15 level and above and the current general manager level shall make self recommendation, and the leaders in charge of the company shall put forward candidate suggestions; The employment of deputy general manager and manager level positions shall be jointly deliberated by the leaders of the company in charge and the general manager through the way of “communication brewing + Organization recommendation”; Those who are not employed will be recommended to work in Chang’an learning center.

For this personnel reform, Chongqing Changan Automobile Company Limited(000625) believes that this reform is carried out from the direction of optimizing job matching, talent structure and age structure. The ultimate goal is to stimulate vitality and enhance Chongqing Changan Automobile Company Limited(000625) competitiveness. “Today’s performance of the cadre team is the competitiveness of Chongqing Changan Automobile Company Limited(000625) in the next 3-5 years. Let the right people flow to the right posts, and make greater efforts to ‘let the capable go up, let the mediocre go down, and eliminate the inferior’.”.

It is understood that the personnel reform of Chongqing Changan Automobile Company Limited(000625) focuses on the level of department general manager and deputy general manager, and does not involve ordinary employees. The above Chongqing Changan Automobile Company Limited(000625) relevant person in charge said: “this cadre adjustment is mainly aimed at the key management of the company. It is not sure whether similar adjustments will be made to employees at other levels in the future.”

independent sector first reform

The reporter got a list of personnel adjustment departments, including strategic planning department, product planning department, brand public relations department, financial operation Department and capital operation Department; Jiangbei engine factory, Yubei factory, Liangjiang factory, as well as 39 departments such as Auchan automobile division, Chongqing Chang’an Kaicheng Automobile Technology Co., Ltd., Hebei Chang’an, Hefei Chongqing Changan Automobile Company Limited(000625) Co., Ltd., General Research Institute and Intelligent Research Institute.

“The joint venture sector is not involved in this reform, but only in the independent sector.” The person in charge of the above Chongqing Changan Automobile Company Limited(000625) told reporters.

In fact, since half a year ago, Chongqing Changan Automobile Company Limited(000625) has started intensive personnel adjustment, and “younger” leaders have taken up their posts one after another. In July 2021, Chongqing Changan Automobile Company Limited(000625) disclosed in the announcement that Yang Dayong, former general manager and party secretary of Chongqing Chang’an New Energy Vehicle Technology Co., Ltd., was employed; Peng Tao, former general manager and party secretary of Chongqing Changan Automobile Company Limited(000625) passenger vehicle marketing division, is the vice president of the company. Public information shows that the above two vice presidents are after 70.

On February 8, 2022, Chongqing Changan Automobile Company Limited(000625) disclosed in the announcement of independent directors’ independent opinions on matters related to the 34th meeting of the eighth board of directors that Li Mingcai, the post-80s generation, was appointed as the executive vice president of the company, and Zhang Deyong, the Post-70s generation, was appointed as the Secretary of the board of directors of the company. “In fact, in recent years Chongqing Changan Automobile Company Limited(000625) has continued to adjust the age structure of the cadre team.” The above Chongqing Changan Automobile Company Limited(000625) relevant person in charge said.

According to the official website of Chongqing Changan Automobile Company Limited(000625) , Chongqing Changan Automobile Company Limited(000625) has a leadership team of 13 people, mainly the Post-70s and post-80s. Chongqing Changan Automobile Company Limited(000625) believes that “the development of the company at this stage requires not only industry keepers, but also young people who dare to attack the front and are vigorous and courageous to innovate and start businesses”.

practice the reform of state-owned enterprises

Behind this personnel reform is Chongqing Changan Automobile Company Limited(000625) continuous and in-depth practice of the requirements of state-owned enterprise reform. Zhu Huarong said: “the tenure system actively promoted this time is an inevitable requirement for deepening the three system reforms of state-owned enterprises and increasing the reform of market operation mechanism.”

The three system reforms of state-owned enterprises cover three aspects: labor, personnel and distribution system. In addition to the personnel reform, Chongqing Changan Automobile Company Limited(000625) is also deepening in the distribution system. In August 2016, Chongqing Changan Automobile Company Limited(000625) equity incentive was approved by the state owned assets supervision and Administration Commission of the State Council, becoming the first large central enterprise in the automotive industry to launch equity incentive scheme and obtain the approval of the SASAC.

On July 13, 2020, Chongqing Changan Automobile Company Limited(000625) issued the Chongqing Changan Automobile Company Limited(000625) A-share restricted stock incentive plan (Draft), which plans to grant no more than 95 million restricted shares to no more than 1292 objects (including directors, senior executives, middle managers and core backbones).

In addition, in January this year, the incentive mechanism of employee stock ownership was introduced into the round B financing of Chang’an new energy, and a total of 97 core backbone employees invested 117 million yuan. “In the process of reform, we should not only consider the core backbone, but also consider how to release the innovative incentive and restraint mechanism to everyone.” According to Deng Chenghao, general manager of Chang’an new energy, next, the income of each front-line employee will be linked to the company’s operating performance.

In view of the need to further improve the reform of state-owned enterprises, Zhu Huarong believes that we should stimulate internal vitality and combine material incentives, spiritual incentives and ideal education; Managers should not focus on immediate interests. To consider long-term development, value creation can be included in the assessment indicators; In the construction of Party style and clean government, we should further strengthen parallel supervision, so as to improve market efficiency.

experienced a difficult period of industrial reform

While deepening the reform of state-owned enterprises, Chongqing Changan Automobile Company Limited(000625) This personnel reform has another profound meaning.

At the Chongqing Changan Automobile Company Limited(000625) cadre meeting on February 8 and 9, Zhu Huarong said: “it is not that our cadre team is out of ability, but that we are facing a new round of competition and need to reconstruct new ability”.

In 2021, the cumulative sales volume of Chongqing Changan Automobile Company Limited(000625) was about 230500, with a year-on-year increase of 14.82%. Among them, the cumulative sales volume of Chang’an Chinese brand cars was about 1754700, a year-on-year increase of 16.7%.

Although the sales growth outperformed the market, Chongqing Changan Automobile Company Limited(000625) did not go easily under the background of lack of cores and batteries, rising raw materials and transformation pressure in 2021. As Zhu Huarong said in a letter to all employees on New Year’s day in 2022, “we have experienced a difficult period of industrial reform.”

Now, at the beginning of the Spring Festival, Chongqing Changan Automobile Company Limited(000625) set off this personnel reform, which also let the outside world see its determination. According to the plan, Chongqing Changan Automobile Company Limited(000625) plans to achieve the target of 3 million Changan brand sales by 2025, of which new energy vehicles account for 35%; By 2030, Chongqing Changan Automobile Company Limited(000625) will become a world-class brand, with sales volume reaching 4.5 million and new energy vehicles accounting for 60%.

“Chinese brands should seize the development opportunities in the next 3-5 years, seize the international market and accelerate the brand upward. I believe that world-class Chinese brands will be born in the next 10 years, Chongqing Changan Automobile Company Limited(000625) must be among them!” Zhu Huarong said.

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