Gasgoo.com (Shanghai January 31) - Although Jiangxi-based Changhe Automobile succeeded in retaining Changhe Suzuki's production rights, the manufacturer is still unhappy with owner Changan. According to a report appearing in the Beijing Times today, the managerial staff Changan has sent over to Changhe have either resigned or been suspended. Changhe has reportedly also begun implementing plans to break away from parent Changan.
Changhe will select members from its own staff to take up the now vacated positions, sources from Changhe Auto and Changhe Suzuki were reported as saying. Changhe Deputy General Manager Zhou Jiazheng and Sales Division Director Chai Wei are among those who have reportedly left.
According to sources from Changhe, difficulties between the two companies were increasing daily, leaving Changhe with no choice but to break up with Changan. Sources add that the manufacturer's financial prospects look especially bleak at the moment.
Earlier this month, both companies and the local authorities engaged in extensive trilateral talks, with the end result being Changan promising to uphold its promises to Changhe. Changan also allowed Changhe to select a new general manager from its ranks to replace its former GM Li Li.