In recent news regarding Shanghai Automotive Group Co., Ltd. (SAIC Group), a significant company linked to the former CCP leader Jiang Zemin, it has come to light that the top management of SAIC Group has been undergoing frequent changes and several executives have been removed from their positions. Analysts believe that Jiang’s son, Jiang Mianheng, who is a hidden director of the company, has been facing continuous troubles, causing Jiang’s main political influence and business territory to become targets for thorough scrutiny and cleansing.
On April 25, the website of the Central Commission for Discipline Inspection of the Communist Party of China (CCDI) announced that Chen Demei, a former vice president of SAIC Group who retired a year ago, is under investigation for serious disciplinary violations. However, the CCDI did not specify the exact nature of his alleged offenses.
Chen Demei served as a vice president of SAIC since 2012 until his retirement in April 2023. During his 11-year tenure, he held various positions within SAIC, including Executive Director of Quality and Economic Operations Department, Vice Chief Economist of SAIC Group, General Manager of Shanghai Huizhong Automobile Manufacturing Co., Ltd., and General Manager of Shanghai Wanzhong Automotive Parts Co., Ltd.
Over the past year, there have been frequent internal reshuffles in SAIC Group’s top management, with three executives being ousted in 2021 alone.
On March 1 this year, the Communist Party Secretary of SAIC Volkswagen Automotive Co., Ltd., was replaced by Yu Jingmin, succeeding the former Zhang Xiangrong who left “for personal reasons.”
In November last year, SAIC Group promoted three individuals to vice president positions, including Jia Jianxu from SAIC Volkswagen as former General Manager, Jiang Jun from Zhiji Auto as CEO, and Wu Bing from SAIC Passenger Car Division and Feivan Auto as CEO.
In the latter half of 2021, three executives of the group were investigated for serious violations of the law, including Ren Yun from Skoda brand Marketing Department of SAIC Volkswagen, Xie Jinghui from Skoda brand Marketing Business Execution, and Yang Zhenyu from Audi brand Product Management Department of SAIC Volkswagen.
Since 2019, SAIC Group has seen a continuous decline in overall sales for five consecutive years, with a decrease in net profits in four of those years.
Data indicates that in 2022, SAIC Group’s operating income dropped by 4.59% year-on-year, while net profit attributable to the parent company decreased by 34.30%. In 2023, the group’s annual sales dropped by 5.31% compared to the previous year, with net profit also declining by 12.48%.
Furthermore, during the pandemic, Shanghai’s strict lockdown measures severely impacted SAIC, leading to the permanent closure of SAIC Volkswagen’s headquarters and first factory in Anting, Shanghai, after 38 years of operation in July 2022.
Amid significant declines in sales performance and profits at SAIC Group, reports of salary reductions and layoffs have emerged.
In April last year, news circulated about across-the-board salary cuts at SAIC Group, with a 20% reduction for top executives, 15% for department heads, and 10% for employees.
In April this year, insiders revealed to Reuters that SAIC Group would be laying off thousands of employees in its joint ventures SAIC Volkswagen, SAIC-GM, and the electric vehicle division, with a 30% reduction at SAIC-GM, 10% at SAIC Volkswagen, and over 50% at Feivan Auto.
Political commentator Li Yanming, on April 29, expressed to Da Ji Yuan that amidst the plummeting sales and profits, upper management reshuffles, and reports of mass layoffs at SAIC Group, the investigation of former vice president Chen Demei underscores the turbulent political and economic storm facing the Shanghai faction and the Jiang family.
Headquartered in Shanghai, SAIC Group is one of China’s largest and most representative automotive industry conglomerates, with key subsidiaries including passenger car companies (Roewe & MG), SAIC Maxus, SAIC Volkswagen, SAIC-GM, GAC, Kyeoni, SAIC-GM Wuling, Nanjing Iveco, SAIC Iveco Hongyan, and Shanghai Sunwin, among others, some of which are joint ventures.
On November 29, 2004, Shanghai Automotive Industry (Group) Corporation underwent a significant restructuring and formation, leading to the establishment of SAIC Group Co., Ltd. (Stock code: 600104). SAIC Group is the largest automotive listed company on the A-share market, with a total share capital of 11 billion shares.
SAIC Group is also a controlling company of Shanghai Alliance Investment Company (“Shanglian Investment”) under the control of Jiang Mianheng, who is also a discreet director of SAIC.
In 1994, Jiang Mianheng, son of the CCP leader, used millions of RMB in “loans” to acquire Shanglian Investment from the Shanghai Economic Commission, kickstarting his “telecom kingdom” career. By 2001, Shanglian Investment and its affiliated companies had exceeded ten. Although Shanglian Investment appeared to be a state-owned enterprise, in reality, it was part of Jiang Mianheng’s private assets.
In a report summary titled “Summary of the Acquisition Report of Shanghai Automotive Co., Ltd.” released in March 2007, Jiang Mianheng’s name was listed as a director. However, subsequent reports and the SAIC official website no longer mention any individual shareholders, hence Jiang Mianheng’s name has vanished from official records.
During Jiang Zemin’s reign characterized by corruption, he propagated the doctrine of “getting rich in silence,” escalating the extent of corruption within the CCP’s “princelings” and their methods of accumulating wealth. Jiang directly sold off or allocated numerous state-owned enterprises controlling the economy at low prices to Jiang Mianheng, enabling him to build a vast empire spanning telecommunications, real estate, finance, automotive, pharmaceuticals, and almost all privileged monopoly industries, profiting immensely.
SAIC Group, nurtured by Jiang Zemin and his Shanghai minions, is a vital territory for the Jiang family and the Shanghai faction’s interests. The power struggle between Xi Jinping and Jiang Zemin’s interest groups remains unresolved.
Legal expert Yuan Hongbing, currently residing in Australia, revealed to Da Ji Yuan recently that conscientious individuals within the CCP system have disclosed that senior military executives responsible for the military-industrial complex, as well as top leaders of the Rocket Force and Strategic Support Force, have intricate ties with Jiang Zemin and his son Jiang Mianheng. These connections extend beyond economic corruption to political alliances. Xi Jinping is actively purging those within the military system deemed “politically disloyal” and involved in “power corruption.” The military cases have implications for over 170 senior officers of the rank of major generals and above.
Additionally, top officials at Shanghai Bank and Shanghai Pudong Development Bank with clandestine links to the Jiang family have faced rapid reorganization, while Jiang Mianheng’s deeply controlled pharmaceutical and biotechnology system is also undergoing ongoing purges.
“This illustrates that amidst escalating internal and external turmoil within the CCP, the Shanghai stronghold of the Jiang family has become a prime target for thorough cleansing,” remarked Li Yanming.