In Depth: China’s Auto Titan Who Revived Hongqi Falls Under Graft Probe

1. Xu Liuping, former chairman of FAW Group and Changan Automobile, is under investigation for suspected serious violations of party discipline and law, as announced by China's top anti-graft watchdog on May 23. [para. 1][para. 2] The probe confirmed months of speculation; Xu and some family members were taken for questioning after the Lunar New Year holiday in February, following the late-2023 detentions of several close associates. [para. 2]

2. Allegations have not been disclosed, but investigators are looking into possible misconduct during Xu's two decades in the auto industry and questions about his family's assets, including those linked to a daughter working in finance. [para. 3] Xu, who left the auto industry in 2023 to head the All-China Federation of Trade Unions, leaves a polarizing legacy: admirers credit him with shaking up state-owned enterprises and reviving the Hongqi premium brand, while critics say his command-style management and strategic misjudgments left companies ill-prepared for the electric-vehicle era. [para. 4]

3. Born in 1964 with a management doctorate, Xu began at China South Industries Group and became head of Changan Automobile in 2006. [para. 5][para. 6] He pushed own-brand passenger cars during a boom where annual sales grew from 7.2 million to 28 million units. [para. 7] By 2016, Changan's sales tripled to over 3 million vehicles, making it China's top domestic brand for three consecutive years. [para. 8] However, a 2009 merger forced absorption of struggling brands Hafei and Changhe, causing internal cannibalization, and a global R&D network across five countries added high costs. [para. 9][para. 10]

4. Xu's reformer reputation led to his appointment as FAW chairman in August 2017 amid a corruption scandal. [para. 11] He ordered nearly all managers below top executive level to step down and reapply for jobs in a weeklong restructuring, breaking bureaucratic inertia. [para. 12] He made Hongqi the centerpiece, setting aggressive targets: annual sales from under 5,000 vehicles in 2017 to 100,000 by 2020 and 300,000 by 2025. [para. 13][para. 14] Hongqi reached 200,000 in 2020 and surpassed 300,000 in 2022, ahead of schedule. [para. 15] But growth relied on midpriced models and ride-hailing sales, diluting premium positioning, and diverted attention from the profitable FAW-Audi joint venture. [para. 16]

5. Xu's biggest failure was misreading the shift toward electric vehicles. [para. 17][para. 18] Instead of building in-house EV capabilities, FAW led a $265 million investment in startup Byton in 2018, which later collapsed, wiping out the investment and leaving FAW behind in EVs and smart-driving technologies. [para. 19][para. 20] Former colleagues described Xu as a top-down manager who dismissed professional advice and leaned on nationalist sentiment for short-term goals. [para. 21] His fall occurs as Chinese automakers face a more competitive environment with narrowing margins and accelerating EV transition. [para. 22]