Yin Jiaxu was arrested after retiring for three years： he was the chairman of Changan Automobile and promoted the joint venture of Changan Ford.

On October 25th, the Supreme People’s Procuratorate of official website reported that Yin Jiaxu, the former party secretary and chairman of China Ordnance Industry Group Co., Ltd., was suspected of taking bribes and making illegal profits for relatives and friends. The case was investigated by the National Supervisory Commission (NSC) and transferred to the procuratorate for review and prosecution. A few days ago, the Supreme People’s Procuratorate made a decision to arrest Yin Jiaxu on suspicion of accepting bribes and illegally profiting for relatives and friends. The case is being further processed.

In August 2018, Yin Jiaxu, then Party Secretary and Chairman of China Ordnance Industry Corporation, retired early. Yin Jiaxu, 62, said, "I took the initiative to write to the leaders to ask for early retirement." Today, it is only three years before Yin Jiaxu retires.

Before becoming Party Secretary and Chairman of China Ordnance Industry Corporation, Yin Jiaxu was the helm of Changan Automobile. In 1998, Yin Jiaxu was appointed as the executive director, president and deputy secretary of the Party Committee of Changan Automobile Company for 12 years. Yin Jiaxu was regarded as the founder of Changan Automobile, but Changan Automobile also missed Volvo at that time, and the listing of Southern Automobile he had been promoting was never successful.

Being the "Fire Fighting Captain": Creating Changan Automobile with One Hand

The relationship between Yin Jiaxu and Changan Automobile dates back to 1996 at the earliest. In August of that year, Yin Jiaxu, then deputy director of Southwest Ordnance Bureau, was transferred to Changan Automobile to assist in the work, and was appointed as the executive deputy general manager in Changan Automobile; At that time, Changan Automobile was already in a quagmire.

In 1994, Changan Machinery Factory, which produces automobiles, and Jiangling Machinery Factory, which produces engines, were integrated into Changan Automobile. However, at the beginning of its establishment, due to the differences in corporate culture and management mechanism, the two companies failed to form a joint force after integration and suffered losses year after year. In July 1998, Yin Jiaxu officially became the fourth general manager of Changan Automobile.

Yin Jiaxu has publicly stated that when he went to Changan Automobile to take up his post, Changan Automobile was already in great difficulty, and the sales volume of mini-cars dropped from the first in the country to the fourth, with an annual output of only 60,000 to 70,000 vehicles, making it difficult for enterprises to operate. After taking over Changan Automobile for many years, Yin Jiaxu once said in an interview with the media that in the first month of taking over Changan Automobile, the company’s account was only 2 million yuan; In less than two months, other enterprises came to collect debts, with debts as high as $30 million. When clearing the accounts, they found that there were more than 60 million false VAT invoices. According to public information, the cumulative loss of Changan Automobile at that time exceeded 1.4 billion yuan, and the loss in 1998 alone exceeded 300 million yuan.

After taking office, Yin Jiaxu put forward the "three three seven" development plan of Changan Automobile, and at the same time implemented five major projects such as "new products, fine products, cost, marketing and talents". The implementation of a series of measures made the product structure of Changan Automobile change obviously; In the late 1990s, Changan Automobile launched Changan Star, Changan Snow Tiger SC6370 multi-function bus and other models.

The industry believes that Yin Jiaxu’s iron-and-blood rectification and iron-fisted measures really helped Changan Automobile get out of the crisis. In July, 1999, Yin Jiaxu smashed cars and bodies with quality problems in public.

According to public information, one year after Yin Jiaxu took office, Changan Automobile returned to the position of the first mini-car sales, and turned losses into profits in one and a half years; In 2005, the 3 millionth Changan Star of Changan Automobile rolled off the assembly line, and Changan Automobile set a domestic bicycle production record; In 2006, Changan Automobile’s annual sales volume exceeded 530,000 vehicles, and its sales revenue exceeded 25 billion yuan, ranking among the four major automobile groups in China. So far, Changan Automobile has completely got rid of the survival crisis. Since then, Yin Jiaxu has also made every effort to promote the development of Changan Automobile’s own brand and strive for self-development.

Changan Ford joint venture company was established, but the difference between Changan and Suzuki was buried.

After Changan Automobile resumed its normal operation, Yin Jiaxu began to seek joint venture and cooperation, and planned to set up a joint venture with Ford Motor Company, which wanted to build a factory in China at that time.

At that time, Changan Automobile and Suzuki Automobile had already cooperated to form Changan Suzuki Joint Venture Company, but Suzuki Automobile did not expand the scale of cooperation with Changan Automobile to provide advanced models because it was not optimistic about the China market. However, the joint venture between Changan Automobile and Ford Motor Company attracted the opposition of Suzuki Motor Company. It is worth noting that when Changan Automobile went public, it signed an agreement with Suzuki Motor as a strategic investor, and Suzuki Motor required that any major decision of Changan Automobile should be approved by Suzuki Motor.

Although there are clear agreement requirements, it is difficult to promote the joint venture and cooperation between Changan Automobile and Ford Motor Company. However, Yin Jiaxu once said, "If Changan Automobile wants to develop, it must have a joint venture with Ford Motor." In the end, the joint venture project of Changan Ford took shape. Changan Ford was formally established in 2001, and the factory was completed and put into operation 14 months later. However, due to the conflict between Yin Jiaxu and Suzuki, Changan Automobile and Suzuki lost their mutual trust, which also laid a "lightning spot" for their subsequent contradictions.

On the one hand, due to the upgrading of consumption in the domestic automobile market and the intensification of competition, the advantages of Changan Suzuki cars are lost; On the other hand, Changan Suzuki’s new car was introduced slowly. In 2017, Changan Suzuki’s annual sales volume was 86,000 units, down nearly 30% year-on-year, and the loss exceeded 80 million yuan. In 2018, Changan Automobile acquired 40% equity and 10% equity of Changan Suzuki held by Japanese Suzuki and Suzuki China respectively in 1 yuan RMB cash, and Changan Automobile realized 100% shareholding in Changan Suzuki, and Suzuki Automobile officially withdrew from the China market.

Voting against the acquisition of Volvo and promoting the listing of Southern Auto failed.

In 2006, Changan Automobile and Volvo reached a cooperation, and Volvo cars were localized in Changan Ford. The production models mainly included S80L and S40 models. At that time, Ford Motor, Volvo’s parent company, formed a good cooperative relationship with Changan Automobile, so when Ford Motor wanted to sell Volvo, Changan Automobile and its parent company, Bingzhuang Group, were the first consideration.

But at that time, Yin Jiaxu voted against Changan Automobile’s acquisition of Volvo; He once said in an interview with the media, "Ford cars are not doing well, and where are we better than Ford cars?" We don’t have a better solution to transform Volvo. " Finally, Geely Automobile successfully acquired Volvo. Although the OEM cooperation between Changan Ford and Volvo lasted until 2018, the S40 model was discontinued in advance in 2012.

In the early years, Yin Jiaxu had another identity. In 2005, China Ordnance Equipment Group Corporation (China Nanfang Industrial Group) reorganized and set up a joint-stock company and went public overseas. The parent company of Changan Group, Nanfang Industrial Group, bundled 14 enterprises including Changan Group and Hebei Changan to form Nanfang Automobile Holding Co., Ltd., and planned to go public overseas.

With the formation of South Auto, Yin Jiaxu became the president of South Auto. In 2006, Yin Jiaxu said many times that China Southern Automobile is preparing to go public overseas as a whole, targeting Hong Kong and the United States. However, the promotion was unsuccessful. In 2009, Changan Department made it clear that Southern Automobile would not be listed. In fact, during the period of promoting the listing of Southern Automobile, Yin Jiaxu stepped down as the chairman of Changan Automobile, and his position was taken over by Xu Liuping, and Changan Automobile gradually entered the "post-Yin Jiaxu" era.

In 2010, Yin Jiaxu was transferred to China Ordnance Industry Group Co., Ltd. as Party Secretary and Deputy General Manager; In 2013, he became the party secretary and chairman of China Ordnance Industry Group Co., Ltd. until he retired in 2018. When he retired, Yin Jiaxu said, "I mainly asked for early retirement, and said that I don’t pay much attention to cars now, especially enterprises that have worked in the past. I think people should constantly learn to say goodbye to yesterday."

On April 4 this year, the website of the State Supervision Commission of the Central Commission for Discipline Inspection showed that Yin Jiaxu, the former party secretary and chairman of China Ordnance Industry Group Co., Ltd., was suspected of serious violation of the law and was currently undergoing disciplinary review and supervision investigation by the State Supervision Commission of the Central Commission for Discipline Inspection; On September 30th, the website of the State Supervision Commission of the Central Commission for Discipline Inspection reported that Yin Jiaxu, former Party Secretary and Chairman of China Ordnance Industry Group Co., Ltd., was expelled from the Party for "serious violation of discipline and law".

Beijing News Shell Finance Reporter Wang Linlin Editor Song Yuting proofreads Chen Yuyan.