Peugeot-Citroen and Hyundai-Kia Announce New Leaders in China
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Scrambling for a piece of Chinese pie, two of the world's leading automakers change top executives
SHANGHAI - December 6, 2007:
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The announcement came just less than seven months after Denis Duchesne was appointed as CEO of the company's China venture. Claude Vajsman, 56, has been with the company since 1977, and he was currently worked as deputy general manager at Peugeot's China venture,
A company spokesperson said Claude Vajsman would be responsible for PSA Peugeot Citroen's business operations in China. This personnel change, however, has no relation with PSA's failure to form partnership with Hafei Automobile, the spokesman said.
One day earlier, Chinese media reported that PSA Peugeot Citroen's plan to cooperate with Hafei Group has been scrapped; however its Chinese partner Dongfeng Auto Group is in talks with Hafei Group. Dongfeng offers 2 billion yuan ($270.54 million) to take over at least 50 percent stakes of Hafei Group.
The French carmaker currently assembles cars in the central city of Wuhan with Dongfeng Motor Corp, China's No. 3 auto group. However, it is still lagging behind its rivals in sales. Foreign auto giants, such as General Motors and Ford each operate a commercial vehicle as well as a car joint venture in China.
PSA Peugeot Citroen originally planed to make commercial vehicles through partnership with Hafei Group but then failed.
State-owned Hafei, based in northeast China, makes mini-cars, mini-vans, sedans and multi-purpose vehicles. The firm, capable of producing 400,000 vehicles and 450,000 engines per year, sold 231,821 vehicles in 2006.
Meanwhile, in a completely un-related situation, the world's sixth largest automaker, Hyundai Kia decided to install two new top executives to oversee the company's operation in Chinese market, the Shanghai-based Morning Post reported today.
Kim Dong-jin, vice Chairman of the Seoul-based Hyundai Motor Vice Chairman has been appointed to head Beijing Hyundai and Kim Yong-Hwan, Senior Executive Vice-President has been selected to oversee the sales and production of Dongfeng Yueda Kia.
In the first ten months, Beijing Hyundai sales in Chinese market dropped 20.3 percent to 186,612 vehicles and Dongfeng Yueda Kia dropped 16.4 percent to 78,384 vehicles.
In September, Beijing Hyundai, the biggest loser in Chinese market this year, announced to cut its sales target by 50,000 to 260,000 this year.
Beijing Hyundai launched agressive price cuts for its sedans in the first week of September: average of 12.3 percent cut Elentra, 10.2 percent cut for Sonata and 7.4 percent cut for Accent.
Dongfeng Yueda Kia launched its first SUV Sportage in late October, which competes with Hyundai Tuscon and Honda CRV.
For more information about the burgeoning auto industry in China please visit http://www.gasgoo.com/Autobiz/list/7/China-News.html