Great Wall Motor groomed out three executives among sluggish sales and delays with its Haval H8 SUV.
Great Wall Motor Co., one of China’s best-known homegrown auto companies, has replaced three senior executives in the wake of a sales slump: a charge the company denies, saying the executives were replaced as part of a normal rotation of top managers.
The company replaced Kang Guowang, who was in charge of domestic sales; Xing Wenlin, who oversaw international sales; and Liang Xinlu, previously in charge of components procurement, according to the Baoding, China-based automaker,
Nevertheless, the changes come after Great Wall reported sales declines in five of the past six months, plus faces the additional challenge of ongoing delays with its Haval H8 sport utility vehicle. The current problem is the second significant delay in bringing the high-end SUV, considered a key component to the company’s growth, to the Chinese market.
The company said last month it would hold off on sales of the vehicle until it could be built to premium standards.
Great Wall is facing the most difficult time it has ever had due to the delay of its H8 SUV and is able to make the H8 of a “premium standard sluggish sales of its car models,” analysts said. Great Wall’s stock fell 3.7% on Hong Kong’s Hang Seng Index.
The maker’s troubles underscore some of the challenges facing China’s indigenous vehicle builders.
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Founded in 1984 as a privately held company, Great Wall emerged as China’s leading maker of sport utility vehicles. It also built a successful line of pickup trucks. However, it was also accused of pirating designs of western automakers, notably Fiat.
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But North American and European carmakers continue to make inroads in China and are quickly expanding their product lines to include a variety of utility vehicles, such as Ford Kuga and Chevrolet Trax.
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Vehicle sales in China have increased again this year, despite concerns over the health of the Chinese economy. GM, Ford and Volkswagen, the automotive brands in China, have all posted record sales since the first of the year.
In recent years, Great Wall attracted the notice of analysts by chalking up the best margin in the global industry – better than 18% by some measures. It’s also had a major presence at auto shows across China, but it invested only sparingly in research and development, according to a profile of the company published last year by The Wall Street Journal. The lack of investment is due, in part, to the company’s bulking up of its export business during the past five years.