Wang Xiaofei and Yang Dayong Change Positions! Longan Launches Major Reform to Strengthen Domestic Brands Without Abandoning Joint Ventures

In extraordinary times, every automotive group is facing extremely complex structural adjustments. Past models are no longer applicable to the present, and current models need frequent verification. Therefore, rounds of personnel changes are inevitable. Recently, news has come that the positions of Wang Xiaofei and Yang Dayong from the new central enterprise Chang'an will undergo changes. Under Zhu Huarong's management, Chang'an Automobile has gone through the 8-year Shangri-La plan and has entered the deep-water zone of transformation.

According to Blue Whale Auto reports, the Chinese top executive of Changan Ford has been replaced. Specifically, Wang Xiaofei has succeeded Yang Dayong as the Executive Vice President of Changan Ford. As for Yang Dayong, there are multiple speculations about his next move.

According to publicly available information, Wang Xiaofei is a veteran at Changan Automobile, having served for about 20 years. He once served as the General Manager of the Changan Oshan division, helping Oshan achieve remarkable results. In 2023, Wang Xiaofei was appointed Chairman of Deep Blue Auto. Shortly thereafter, at the end of 2023, he also began overseeing Avita. Before being transferred to Changan Ford, he helped Zhu Huarong share the pressure of streamlining Avita's business.

Born in 1982, Wang Xiaofei is a promising young talent at Changan Automobile and a top graduate of Tsinghua University, with a bright future ahead. In my opinion, appointing Wang Xiaofei to lead Changan Ford holds significant meaning.

Firstly, although Changan Ford has not reported a loss and even contributed a net profit of 753 million yuan in the first half of this year, its reliance on traditional fuel vehicles has led to declining sales and a sluggish performance. In the era of new energy vehicles, it has undoubtedly fallen behind the mainstream. According to previous plans, the Changan Ford CX810 project has been repeatedly delayed and has made slow progress. Now, with Wang Xiaofei assigned to take charge, it is highly likely that this project will be accelerated.

Moreover, despite external rumors that joint venture brands are not faring well within the Changan Automobile system, the concept of "not one less" has become Changan Automobile's guiding principle. Last year, the Changan Mazda EZ-6, a rebadged version of the Deep Blue SL03, was launched into the market. Although it did not make a significant splash, it holds certain significance both domestically and internationally.

Just like Changan Mazda, Changan Ford should follow suit. With management experience from Deep Blue and Avita, Wang Xiaofei, who leads Changan Ford, should be well-equipped to accelerate Changan Ford's electrification process by adopting a rebadging approach similar to that of Changan Mazda.

In December 2022, Yang Dayong, also a veteran of Changan Automobile, was appointed Executive Vice President of Changan Ford. With management experience in the Commercial Vehicle Division and having been responsible for the establishment of Changan Automobile’s new energy sector, Yang Dayong did not help Changan Ford return to its peak. Due to the circumstances and the slow pace of electrification, Changan Ford has continued to operate in a depressed state.

There were earlier reports that Yang Dayong was transferred to Deep Blue Auto, where he originally served as chairman. He may return, while CEO Deng Chenghao may be reassigned. This news has not been officially confirmed. According to a report by Blue Whale Auto, Yang Dayong will be in charge of Changan Yinqi and Changan Qiyuan.

In 2025, the annual sales targets for the three independent brands Qiyuan, Deep Blue, and Avita are 280,000 units, 500,000 units, and 220,000 units respectively; in the first half of the year, their sales were 169,200 units, 143,200 units, and 59,100 units respectively. Except for Qiyuan, the completion rates of Deep Blue and Avita are relatively low.

Assigning Yang Dayong to oversee Qiyuan and Yinli is obviously aimed at continuing to stabilize the foundation. As long as things are done steadily without any mistakes, profits can be made early—this logic behind the arrangement is quite similar to when Yang Dayong was transferred to take charge of Changan Ford.

In October 2017, under Zhu Huarong's leadership, the grand Shangri-La Plan was officially launched. After many years, despite fruitful outcomes, the situation has deviated significantly from the initial vision—stopping the sale of traditional fuel vehicles entirely by 2025. This goal may not be achievable in the short term due to the decline in the overall net profit of Changan Automobile.

According to the sales report, in the first half of this year, Changan Automobile achieved a total sales volume of 1,355,256 vehicles, with cumulative sales of new energy vehicles reaching 451,714 units. Although this represents a year-on-year increase of 49.05%, new energy vehicles only account for 33.33% of the total sales, which is still relatively low.

In such a situation, as the newly formed central state-owned enterprise, Changan Automobile faces significant pressure. To solve this problem, it is essential not to abandon any of its brands and to utilize resources as much as possible.

In my opinion, in order to increase the penetration rate of new energy vehicles, it is essential not only to boost the sales of Deepal and Avatr, but also to step up the electrification investment in Changan Ford and Changan Mazda. As is well known, it is never easy for joint ventures to develop new energy vehicles. After negotiations between both parties, each round of investment involves a significant amount of capital, which is by no means a small sum.

Changing the exterior has become the easiest and simplest mode of cooperation. Selling one more is one more; however you can scale up, just scale up, and don't worry about anything else.