Chinese auto giant announces new chairman

Jilin provincial CPC official Zhu Yanfeng becomes chairman of Dongfeng Motor.[Photo/IC]

Jilin provincial CPC official Zhu Yanfeng took over as chairman of Dongfeng Motor, and the carmaker announced its former chairman Xu Ping will receive another appointment.

Zhu, who is 54, has served the CPC Jilin Provincial Committee as deputy secretary from 2012. He was former general manager of FAW from 1999 to 2007. He joined the Jilin province-based carmaker from 1983 after graduating from Zhejiang University, and became the general manager in 1999. In 2007, he was appointed as vice-governor of Jilin province, and elected as deputy secretary of the provincial party committee in 2012.

Local media reported that the former chairman Xu Ping's new position would be as chairman of FAW Group Corp, and the appointment was set to be announced Thursday.

Xu Ping entered the Second Automobile Works, the predecessor of Dongfeng, in 1982 after graduating from Hefei University of Technology, and has been chairing the company for almost 10 years since June 2005.

Dongfeng Motor Group Co Ltd's (00489) share trading in the Hongkong Stock Exchanges  was halted on Tuesday in the morning, and resumed trading from 13:00, after clarifying a merger rumor.

The Shanghai Stock Exchange listed arm, Dongfeng Automobile Co Ltd (600006) sealed the trading board at 8.58 yuan, touching the 10 percent rise limit, on Monday from opening to closing. The Shanghai listed shares halted trading from Tuesday, and no announcement has been made so far.

The two auto giants' chairman-reshuffle reports came out at the end of April, and triggered a rumor of a merger between Dongfeng Motor and FAW.

Last year, it was announced that Dongfeng's vice-president was under investigation, and a total of 55 former management team members in the group were announced to have violated the law, including executives in the passenger car company, the Dongfeng Honda joint venture and other subsidiary companies.