Last month, Su Jun's new role as Deputy General Manager of Chery Automobile and General Manager of the iCAR brand was made public.

These high-level changes reflect the broader internal restructuring at Chery New Energy. We have learned exclusively that Su Jun and Zhang Hongyu now head their respective business units, with Zhang Hongyu again taking charge of new energy small vehicles. Their sphere of influence has transcended the "Chery New Energy" label. Concurrently, factories and product lines formerly under Chery New Energy are undergoing significant revisions.

Written by | Lu Yanbo

Edited by | Mao Shiyang

Original content by AutoPixel (ID: autopix)

01.

Leading Distinct Business Units

iCAR stands at the center of this restructuring.

Upon assuming the role of General Manager of the iCAR Business Unit, Su Jun has secured most of the original iCAR brand's products, including the V23 launched late last year and the upcoming V25, anticipated to debut in the first half of this year with a release scheduled for year-end. Initially planned as iCAR 05, the V25 will now adopt a naming convention similar to V23 following the recent adjustments.

Notably, Chery intends to separate iCAR 03 and 03T from the iCAR brand and is in the process of renaming these models, which will subsequently fall under the Chery brand. We previously reported exclusively that Chery is developing an extended-range vehicle based on the iCAR 03T, which is also likely to be reclassified under the Chery brand rather than iCAR.

The iCAR factory will also undergo changes following this product line realignment. Currently, V23 is produced alongside iCAR 03 and 03T at Chery New Energy's factory in Yijiang District, southern Wuhu. We have learned exclusively that Chery is constructing a new factory in Wuhu's Sanshan Economic Development Zone to house iCAR brand products, with V23 expected to transfer to this new facility for production in the second quarter of this year.

Zhang Hongyu has stepped down as General Manager of the iCAR brand business unit and now holds the position of Deputy General Manager of Chery Automobile Co., Ltd. (hereinafter referred to as Chery Automobile) and General Manager of the Domestic Business Unit of the Chery brand, commonly known within the company as the QQ Domestic Business Unit, which is responsible for new energy small vehicles.

Several early products of Chery New Energy Automobile Co., Ltd. (hereinafter referred to as Chery New Energy), including Chery Xiao'anyi, QQ Ice Cream, and Da'anyi, continue to be managed by Zhang Hongyu's business unit. We have learned exclusively that a new Chery Automobile energy vehicle with the internal code T12A will also fall under this business unit's purview.

Founded in 2010, Chery New Energy's primary products before the launch of iCAR were new energy small vehicles. Within Chery's organizational structure, Chery New Energy is a subsidiary of Chery Automobile.

Prior to this restructuring, both Su Jun and Zhang Hongyu held positions at Chery New Energy, with Zhang Hongyu serving as its General Manager. Nowadays, the senior leadership, brands, and business organizational structure of Chery New Energy have been overhauled, with Su Jun and Zhang Hongyu serving in Chery Automobile, suggesting that Chery New Energy may no longer be the business core.

We understand that Chery New Energy will continue to provide core resources such as vehicle manufacturing qualifications to the iCAR and QQ business units. However, while the R&D of the QQ Domestic Business Unit is supported by Chery Automobile, the product system of the iCAR brand business unit remains relatively independent. The two business units will maintain collaboration at the Chery Automobile level but now exhibit minimal overlap in actual business operations and personnel structures.

Yin Tongyue, Chairman of Chery, once described the iCAR brand as Chery's "Special Economic Zone." Following this restructuring, the constraints on this special zone have been further relaxed.

02.

iCAR Gains More Freedom

With iCAR 05 (V25) retained and 03 reassigned, the iCAR brand's identity will become clearer, and its product line more coherent.

iCAR 03 was the inaugural model of Chery's iCAR brand, launched in April 2023 alongside the new brand. Leveraging Chery's strong engineering capabilities, a series of new vehicles for the iCAR brand were already in the pipeline, despite its nascent stage.

At that time, collaboration between Su Jun's team and Chery had yet to commence. Su Jun was best known to the public as the CEO of Zhimi, a prominent company in Xiaomi's ecosystem responsible for popular appliances like Xiaomi air conditioners and air purifiers. In 2023, Su Jun's team, eager to venture into the automotive industry, integrated with Chery New Energy and began overseeing iCAR products, initially serving as the Chief Product Officer of the iCAR brand.

▍Su Jun

Su Jun's team introduced products such as V23 and X25 to Chery New Energy. These new offerings featured unique industrial designs, indirectly facilitating collaboration between Chery and Su Jun's team. However, these products were designed prior to Su Jun's team joining Chery, resulting in a divergence between Su Jun's team's contributions and Chery's plans for iCAR. The two sets of products exhibited differences in positioning, appearance, distribution channels, etc., and did not seem to belong to the same brand.

V23 is primarily targeted at young individuals in first- and second-tier cities, whereas iCAR 03 caters more to family-oriented scenarios in lower-tier cities. Chery New Energy's primary sales products, Xiao'anyi and QQ Ice Cream, are benchmarked against the former "miracle car" Wuling Hongguang MINI EV, with dealer channels concentrated in lower-tier cities. Nowadays, most iCAR stores in core cities like Beijing and Shanghai were established after Su Jun's team integrated into the company.

Following their integration into Chery New Energy, Su Jun's team, in addition to enhancing their own product line, focused on participating in the transformation of Chery New Energy's established product line. For instance, the 03T was modified based on the iCAR 03, albeit as a limited modification, necessitating shared parts between the two models.

iCAR 05 was originally another product planned by Chery but had yet to be released. Su Jun's team redesigned it. A source close to Chery New Energy informed us that the newly designed iCAR 05 is more aesthetically pleasing and aligns better with the iCAR brand identity. This explains why the 03 has been returned to Chery, while the 05 has been integrated into iCAR.

Products are merely one manifestation of the differences between the two teams. Chery is renowned in the automotive industry for its rigorous processes and numerous engineers, earning it the moniker of the "geek" automaker. Since its inception, quality and processes have been Chery's top priorities, with many standards drawing inspiration from German systems. These qualities have since become ingrained in Chery's system and organizational culture.

In contrast, Su Jun's team embodies the opposite approach. In their team, designers often wield more influence than engineers. They strive for exquisite products and are willing to compromise on some of the processes insisted upon by engineers.

Since Su Jun's team's integration, Chery New Energy has been seeking a balance between these two mindsets. Nowadays, with Su Jun and Zhang Hongyu each leading a business unit, responsibilities and operations have been redefined. Both Chery's core executives have returned to their most familiar territories.

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