Beijing Auto has reportedly poached the head of product development from rival Chery in a sign of growing competition ahead of an expected consolidation of the Chinese auto industry that will leave fewer but bigger players.
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The Wall Street Journal reported that Government-owned Beijing Auto tapped Gu Lei to jump-start its effort to launch a new domestic passenger car brand, building on its current joint ventures.
Gu, in a telephone interview with the WSJ, said he joined Beijing Auto in late July and was recruited to take charge of Beijing Auto’s effort to develop a series of new cars for the new brand, to be launched in a couple of years.
The WSJ noted that the poaching of Gu from Chery shows how companies like Beijing Auto are trying to grow quickly to survive a looming industry consolidation.
China’s Government wants its relatively fragmented industry to consolidate to fewer firms with the strength and scale economies to be internationally competitive.
