Dongfeng became the richest domestic

　　At 8 o’clock on July 10th, a text message from division of party affairs of Dongfeng Motor strongly shocked the media, that was leading domestic car enterprises, Dongfeng Motor Corporation topped the 2010 Fortune Global 500.

　　In the latest Fortune 500 list issued by Fortune magazine, with revenue of 39.402 billion U.S. dollars, Dongfeng Motor Corporation ranked in the 182nd place and became the richest domestic car enterprise while Shanghai Automotive Group and FAW Group ranked in the 223rd and 258th respectively with revenue of 33.629 billion and 30.237 billion U.S. dollars.

　　Although it has been already known that Dongfeng Motor is intended to hold a celebration for its excellent, after all the data published by the third-party is more compelling.

　　Dongfeng Motor had been always referred to as the Second Automobile Works till 1992. Unlike FAW assumed by XU Jianyi, Dongfeng Motor owns no the most powerful partners like Volkswagen and Toyota. Compared to these giants in global automotive industry, Peugeot Citroen Group, the old partner of Dongfeng Motor can be said really weak. Besides, different from

　　SAIC and Beijing Automotive Industry Holding, Dongfeng Motor has shown no big enthusiasm in overseas acquisition. The models of Dongfeng Motor have seldom appeared in the top ten best-selling car list monthly issued by China Automobile Industry Association.

　　Everyone wants to know how general manager of Dongfeng Motor, Xu Ping has led the corporation to create such amazing wealth. The720 million U.S. dollars net profits of Dongfeng Motor is twice more than that of BMW who ranked in the 82nd In the latest Fortune 500 list, although the revenues of BMW have reached 72.444 billion U.S. dollars. Daimler, ranking 30th in even has suffered a loss of 3.67 billion U.S. dollars.

　　Four times growth within five years

　　Unlike FAW, the foundation of Dongfeng Motor is its commercial vehicle section.

　　From January to May of this year, among the total 1.9261 million commercial vehicles sold out by Chinese automakers, Dongfeng Motor occupied 287,700 units. The year on year growth rate of 73.87% was much higher than the average 48.13%. The sales of FAW Group’ commercial vehicles are only equal to 65% of Dongfeng Motor.

　　According to a detailed sales report, during the first months of this year, the cumulative sales of Dongfeng Motor reached 1.0667 million, up 63.82% compared to one year before, among the top three of the industry. Besides, the passenger vehicle sales reached 779,000 units, up 60.39%.

　　“We choose to be stronger first rather than bigger,” said Xu Ping, general manager of the company, “to focus on the future development and achieve steady growth has laid a solid foundation for our company to top a new stage of two million units in the 2010.”

　　Even the overseas media always like to judge China manufacturing industry evaluate Dongfeng Motor as “the earnest car enterprise in China”.

　　Till today, Dongfeng Motor is still a Chinese JV with the most amazing growth. From January to May, average monthly sales of Dongfeng Motor exceeded 100 000 units and the total sales reached 537,000 vehicles, up 66.72 %. Actually, Dongfeng Motor is expected to reach or even top its one million-units goal ahead of schedule. One of its subsidiaries Dongfeng Nissan also began in May to invest a second plant with a capacity of 600,000 units, the largest car production base in southern China.

　　Also in May, Dongfeng Motor also started the production of its Shiyan heavy truck manufacturing base with a capacity of 80,000 units. Previously, the production capacity had suppressed the sales of Dongfeng commercial vehicles. Since the performance gap between Dongfeng Motor and Beiqi Foton Motor, the companion in commercial vehicles sales is less than 30,000, Dongfeng is easily catching up.

　　The Dongfeng Honda has created two wonderful achievements before. In 2008, though only two models CIVIC and CR-V were produced, the taxes of Dongfeng Honda reached 7.133 billion Yuan, surpassing the Shanghai Volkswagen. In that year, among the top 18 who turning in the highest taxes, four were belong to Dongfeng Motor.

　　When Xu Ping took over the company from Miao Wei in 2005, its annual production was lower than 510,000 while the sales income was only 20 billion Yuan. However, Xu is intended to achieve a sales volume of 2.22 million units this year.

　　Outside board directors account for more than half

　　Recently, the senior executives of Dongfeng Motor Corporation began to frequently visit the State-owned Assets Supervision and Administration Commission of the State Council. Being a pilot enterprise, it is extremely urgent for the company to set up the board and re-build organizational structure.

　　“Presently no one person will have the final say in enterprises owned by central government. The State-owned Assets Supervision and Administration Commission of the State Council will appoint a group of old entrepreneur as an independent director.” Shao Ning, SASAC Deputy Director said, “to change the original system that just one person make decisions, through the pilot, the SASAC will assign outside directors to the enterprises owned by central government and the amount will account for more than half.”

　　June 30th, training for pilot enterprises including the Dongfeng Motor Corporation and COFCO to build standardized board was held in Beijing. “Recently, almost every month there has been similar training and members of manager team, Party standing committee and finance chiefs have taken part in training in succession.” insiders of Dongfeng Motor Group released.

　　To change the redundant organization of the Board of Directors and manager team and avoid the risk of the single policy-making mechanisms as well as to achieve separation of powers with check and balance is the significant target of the forthcoming board system. According to this principle, as chairman of Dongfeng Motor Corporation, Xu Ping should not be general manager simultaneously. And maybe will be replaced by one of the nice members of the Party Standing Committee Committee. From the large-scale adjustments among executives six months ago till now, the suspense still remained unsolved.

　　From December 30th, 2009 to January 4th this year, one of China's three major auto groups issued a public notice twice Dongfeng Motor Corporation has issued notifications twice to make adjustments respectively about the leadership of Dongfeng commercial vehicles, Dongfeng spare parts, equipment companies, Shiyan Management Department and party affairs division as well as Dongfeng Honda, Dongfeng Motor Group Company Limited, involving 29 senior executives. The insider said this adjustment, the largest in a decade, was brewing since the congress of party representatives in last March.

　　Zhu Fushou, who was considered may take over the position of General Manager was assigned another post recently. June 25th, Hong Kong-listed Dongfeng Motor Group Company Limited held a meeting of Board directors, Zhu Fushou officially took over duties as president, replacing Liu Zhang. Obviously, the position of general manager will be someone else.

　　July 12th, Dongfeng Motor Group shares closed at 10.16 Hong Kong dollars, grew by 2.42%.

　　(translator:yalong/Jessie)

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　　http://auto.sohu.com/20100716/n273546615.shtml