Dongfeng Motor's "Subtracting 50" Subsidiaries Group Technical Expert Income Super-high

The tide of the reform of the central enterprises in the automotive industry is surging. After the candidates for the general manager of FAW Group were finally vacant for two years, the other automobile central enterprise, Dongfeng Motor Group, clearly identified the direction of future reforms in the new Party Congress. From June 26 to June 28, the Dongfeng Group held the ninth Party Congress. In addition to further strengthening the party building work, Dongfeng Group also clarified that it would be necessary to divest the enterprises and hold social functions before the end of 2018 to contract the positions of leading cadres. management.

In the special period after the founding of the People's Republic of China, in order to better construct the modern industry of New China, enterprises not only managed the main business, but also swept all the logistical support of the employees. In the 1960s, it was deliberately selected to be located in the Shangougou district of Shiyan. Dongfeng Group, which started from the thatched cottage, is also the same. However, since the reform and opening up, enterprise-run society has become a historical burden on the central enterprises. Especially in the 21st century, the central SOEs have faced international competition, and the function of divesting the SOEs has also become an important issue for the deepening reform of central SOEs.

Prior to this, the SASAC of the State Council had specified the timetable for the reform of the central government's “Three Supply and One Industry (Water Supply, Power Supply, Heating, and Property Management)”: “Since 2019, state-owned enterprises will no longer provide three jobs and one industry for employees’ families in any way. 'Assume relevant expenses.' In addition, Dongfeng's Shiyan base is included in the SASAC's inclusion in one of the five large-scale independent industrial and mining district divestment offices of the comprehensive reform of social functions piloted by the SASAC. There are more than 70,000 households in the families of Dongfeng Group's employees, five companies in the “three-for-one-one-business” industry, and more than 2,700 employees. According to the unified arrangement and deployment, the task of separation and transfer of “three industries and one industry” owned by Dongfeng Corporation will be completed in 2018.

As a state-owned enterprise established in 1969, Dongfeng Group has established many subsidiary companies in the development of the past 50 years. However, with the development of the times, companies have come to need to "downsizing". In recent years, Dongfeng Group has promoted a series of innovation and development, reorganization and integration, and clean-up and withdrawal of a number of batches. It has been promoted through a variety of methods such as equity exchange, strong-strong alliances, split and reorganization, mixed equity participation, and shutdown and transfer. Related companies lose weight, improve quality and increase efficiency.

Since 2014, Dongfeng Group has begun to streamline its company's "slimming." In 2014, the transfer of Dongfeng Chaochai, Dongfeng Chaoyang Siyi equity transfer and Dongfeng Nanchong equity transfer were completed. In 2015, the completion of the gas business, engineering construction and equipment construction business exit; in 2017, the completion of the Dongfeng real estate business, TV network business strategic exit . As of the end of 2017, Dongfeng Group had accumulated 50 "corporate" legal entities and completed 8 "zombie" or extremely difficult corporate governance tasks.

Breaking down the rigid management physique, introducing market-oriented compensation management physiques and stimulating the enthusiasm of talents are another main line of Dongfeng Group's deepening reform. In 2017, according to the principles of “marketing for selection, management contracting, difference in salary, and institutionalization for withdrawal”, Dongfeng Group has fully initiated the management of post-contract management for senior management personnel, so that senior management personnel “up” has a “lower” position. According to evidence, the dismissal was automatically terminated at the end of the term of office, breaking the issue of “can't go down”.

At present, the Dongfeng Group and the company's 39 middle-level cadres signed a job engagement contract and the annual post target responsibility. At the same time, Dongfeng Group also made strides in the selection of professional managers for marketization. In 2017, Dongfeng Group conducted a pilot program for professional managers in 5 units. Among them, CDG Financial Leasing Co., Ltd. and Dongfeng Electric Vehicles Co., Ltd. all employ professional managers as their candidates.

The Economic Observer reporter understands that the Dongfeng Group’s reform of the pay system is divided into three steps: The first step is to first reach the level of marketization, and the salaries of scientific and technological personnel are higher than those of administrative personnel; the second step is 'can be more, less, less', that is, salary level. Linked to innovation results, this item has been completed at the end of last year; the third step is 'Energy and Performance' and is expected to be achieved within this year.

In addition to the transformation of leading cadres' posts into market-oriented and contractual management, Dongfeng Group has also reformed its scientific research system. In September 2017, Dongfeng Technology Center released T. Chuangchuang and the “Smart Ecosphere” innovation model. As the implementation space for these two innovative modes, Fan Yue’s Innovation Studio, Creative Space, and T.C. Synchronously established.

In these three major innovation spaces, R&D personnel can freely combine teams and select topics, using flexible management and multiple incentives. The three major innovation spaces carry out independent budgets and are fully authorized. They do not require traditional methods of assessment and are designed for those unwitting administrative and technical personnel. “The first step in the remuneration marketization reform has been completed. All the senior executives here have higher income than me, and the income of scientific experts is higher than that of the company's senior management.” Last year’s Dongfeng Group Technology Week, Chairman of the Group, Yan Yanfeng, stated that .

Compared with FAW Group, which recently carried out blast reforms and major adjustments by senior executives, although Dongfeng Group’s reform measures are relatively modest on the outside, the reform efforts are not small. Whether it is to divorce enterprises for social functions or use contractual systems. Breaking the "iron rice bowl" and "boldness" of cadres to fully empower scientific and technological elites to earn high salaries will have a profound impact on the company. While deepening internal reforms, the main business of Dongfeng Group has grown steadily. From January to May of this year, Dongfeng Group sold 1.606 million vehicles, an increase of 4.36% year-on-year.