(Yicai) Feb. 20 -- SAIC Motor, China's largest automaker, is conducting a major personnel restructuring involving 63 mid-to-senior-level managers from its passenger vehicle division.

The reshuffle will mainly affect SAIC's electric vehicle brands Roewe, Rising Auto and MG, as well as its domestic and overseas marketing, product development, manufacturing, engineering, research and development, human resources, and information system departments, according to an internal notice signed by President Jia Jianxu, effective Feb. 12, that has been recently circulating online.

A SAIC senior executive has confirmed the authenticity of the internal notice to Yicai and other media.

Analysts attribute the reshuffle to SAIC's 'Greater Passenger Vehicle Division' project. An insider at the carmaker told National Business Daily that the project aims to strengthen cooperation between five of SAIC's major businesses to make more collective decisions for the future of each business.

The five businesses are SAIC Motor Passenger Vehicle, which includes Roewe, Rising Auto and MG, SAIC Motor International, SAIC Motor R&D Innovation Headquarters, SAIC Z-One Galaxy Intelligent Full-Stack Solutions, and SAIC Motor Overseas Intelligent Mobility Technology.

"The establishment of the ‘Great Passenger Vehicle Division’ and the following adjustments aim to integrate resources and enhance focus on key objectives," the insider noted. "Afterward, we'll see deeper brand integration, more focused R&D, and improved efficiency."

SAIC's restructuring began last July, when former Chairman Chen Hong retired, with Wang Xiaoqiu replacing him and Jia being promoted to president.

In August, Jia told the staff that the company's main weakness was its "slowness," adding that it needed to implement more flexible mechanisms and weekly adjustments to seize market opportunities in a rapidly changing environment.

Rising Auto, which had been independent from SAIC since its inception in 2021, was reinstated under the direct control of the parent company as part of the SAIC Passenger Vehicle division in October last year, after its sales and management departments merged with those of Roewe, another SAIC marque.

Moreover, the R&D teams of Rising Auto and EV brand IM Motors were integrated into SAIC R&D Innovation Headquarters, and technical projects such as power batteries, intelligent driving, and chassis development were consolidated under the company's R&D institute, which is responsible for the innovative technologies for the vehicle models under IM, MG, Rising Auto, and Roewe.

SAIC announced on Jan. 24 that it expects a net profit of CNY1.5 billion to CNY1.9 billion (USD206.3 million to USD261.3 million) for last year, down 87 percent to 90 percent from the previous year, mainly because of falling fuel vehicle sales, the price war in the Chinese automotive market, lower sales revenue and gross profit margin, and shrinking cash inflows.

SAIC's sales plunged nearly 21 percent to just over 4.01 million vehicles in 2024 from the year before, far under its annual target of 5.45 million. However, sales rose 7.9 percent to 264,200 units in January from a year earlier.

Editor: Futura Costaglione