BUSINESS

GAC Executive Resigns After Reportedly Being Taken Away

Published: Dec. 26, 2025 6:43 p.m. GMT+8

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Zheng Heng. Photo: Caixin

A deputy general manager at Guangzhou Automobile Group Co. Ltd. (GAC) has resigned just a month after his reappointment, a move sources have linked to a corruption probe at the state-owned automaker.

Caixin has learned from sources with knowledge of the matter that deputy general manager Zheng Heng was taken away by investigators. His case may be linked to an anti-graft campaign underway at GAC, which is navigating a period of declining sales, financial losses, and a broad management overhaul aimed at reversing its fortunes.

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GAC deputy general manager Zheng Heng resigned a month after reappointment, reportedly linked to a corruption probe; the company cited health reasons.
GAC faces declining sales (down 10.8% year-on-year to 1.53 million vehicles in Jan-Nov 2025) and posted a 4.31 billion yuan net loss in the first three quarters of 2025.
Management reshuffles and "Panyu Action" reforms aim to address business pressures and strengthen corporate governance.

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Who’s Who

Guangzhou Automobile Group Co. Ltd.: Guangzhou Automobile Group Co. Ltd. (GAC) is a state-owned automaker dealing with declining sales, financial losses, and a corruption probe involving former deputy general manager Zheng Heng. The company is actively undergoing a management overhaul and reforms ("Panyu Action") to improve efficiency and governance, including new leadership appointments.

GAC Honda: Zheng Heng, a former deputy general manager at GAC, previously held executive roles at GAC Honda, a joint venture between GAC and Honda. His departure is linked to a corruption probe at GAC, amid declining sales and financial losses.

GAC Toyota: The article mentions that Zheng Heng, a former deputy general manager at GAC, previously held executive roles at its joint venture with Toyota. However, it does not provide further specific details about GAC Toyota itself.

Upower Energy: 优湃能源 (Upower Energy) is GAC's energy subsidiary. Zheng Heng, a key figure at GAC who recently resigned due to a corruption probe, was the chairman of Upower Energy. His departure is part of a broader anti-graft campaign and management overhaul at GAC amidst declining sales and financial losses.

GAC's passenger vehicle unit: * **广汽乘用车 (GAC's passenger vehicle unit)**: The article mentions that rumors circulated about Zhang Yuesai, a retired former general manager of GAC's passenger vehicle unit, being taken away for investigation.

Trumpchi: Trumpchi is one of Guangzhou Automobile Group Co. Ltd.'s (GAC) proprietary automotive brands. GAC is currently tightening management control over Trumpchi, along with its other brand, Aion, as part of broader reforms to boost efficiency and address declining sales and financial losses.

Aion: Aion is one of GAC's proprietary brands. GAC is currently tightening management control over Aion, alongside its other proprietary brand, Trumpchi. This is part of a broader effort by GAC to streamline its organization and boost efficiency amidst declining sales and financial losses.

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What Happened When

February 2025：: Feng Xingya became chairman of GAC.

September 2025：: GAC announced the resignation of deputy general manager Yan Zhuangli for 'personal reasons'; rumors also circulated that Zhang Yuesai, a retired former general manager, had been taken away for investigation.

November 2025：: Xia Xianqing was appointed general manager of GAC.

2025-11-16：: Zheng Heng was reappointed as deputy general manager of Guangzhou Automobile Group Co. Ltd. (GAC) for a new term scheduled to run until March 2028.

2025-12-13：: At a company meeting, Chairman Feng Xingya emphasized the importance of long-term reform and strict party governance.

By 2025-12-24：: Zheng Heng was taken away by investigators, reportedly linked to an anti-graft campaign at GAC.

2025-12-24：: GAC announced that Zheng Heng has resigned from his position due to 'personal health reasons'; his resignation was effective immediately.

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