CHINA: FAW chairman goes as assets scandal deepens
According to a report in the Beijing Times, Xu Jianyi is to resign from this post as chairman of the board of FAW Car. He will continue as chairman of the board of FAW Group. The news is said to be unrelated to the recent uncovering of the loss of some CNY 20bn (US$3.2bn) in FAW property assets.
According to officials from FAW Car, deputy board chairman Wu Shaoming will temporarily take over Xu's responsibilities until a new board chairman is elected. Until now, Xu was not only board chairman for FAW Group but also all three of its subsidiary companies: FAW Car, FAW Qiming Information and Tianjian FAW Xiali.
As for the unfolding property scandal, some 30 FAW executives are now said to be under investigation regarding the funds, which vanished during the company's recent listing process. FAW has yet to officially comment on the case.
The China-based automotive portal Gasgoo.com claims FAW Car suffered a net deficit of CNY 756m in 2012, a YoY plunge of almost 500%. There may be better news to come, as according to its own calculations, the state-run firm is expecting to earn a profit of between CNY 300 and 400 million (US$48m-US$64m) for the first quarter of calendar 2013.