JAC continues to undergo sales restructuring

Date:2011-08-23zhanglu  Text Size:

Jianghuai Automobile (JAC Motors) has is currently undergoing sales restructuring, nbd.com.cn reported today. According to sources from within the Anhui-based manufacturer, JAC is dividing its sales divisions into two, with one responsible for minivans and SUVs such as the Refine and Rein, while the other will administer sales of sedans, including the Heyue and Tongyue. JAC has yet to give a clear timetable for when the restructuring will be fully complete.

The news comes as sales of JAC's key minivan and light truck segments continue to slow, with second-quarter sales among each segment falling 33 percent and 12.1 percent, respectively. The poor sales performance has affected company profits and is seen as a key factor behind the decision to restructure. Industry analysts believe that JAC's problems are a result of the manufacturer's branching across more and more segments without a properly through management team.

JAC sold 268,000 vehicles in the first half of this year, growing slightly higher than the industry average. Worth attention is the strong growth in JAC's sedan sales (80,800 units), which helped nullify increasingly stagnant minivan sales (33,200 units). The manufacturer's returns in the first half of the year totaled 17.44 billion yuan ($2.74b).

The manufacturer hopes to attain annual production capability of 1.6 million vehicles by the end of the Twelfth Five-Year Guideline national economic directive ending in 2015. Passenger vehicles are planned to constitute over 60 percent of that number.

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