Guangzhou Automobile Group, one of China’s largest state-owned carmakers, saw its shares plunge the most in more than two years in Monday morning trade after announcing is was recalling thousands of vehicles produced by its joint venture in China, and replacing its chairman .
The Guangzhou-based carmaker, also known as GAC, slumped as much as 14.89 per cent to HK$8.26, its lowest level in more than three months. Its Shanghai-listed shares halted trading in late October, pending the release of information on new placement of shares.
The shares slide came after China’s product quality watchdog said on Friday in a statement that GAC Toyota decided to recall a combined 83,000 Yaris sedans in China over potential air bag problems that may crack and injure occupants.
On Sunday, the group said in a filing to the Hong Kong bourse it would name Zeng Qinghong, 55, who had served as party secretary and general manager of the company, as the company chairman, with the term in office commencing on October 30, 2016. Zeng jointed GAC in 1997 and had also served as deputy chairman of the company since 2005.
He is taking over from Zhang Fangyou, 60, who had resigned after reached retirement age, the company said, after 19 years with the company. Zeng has overseen joint ventures with Italian peer Fiat Chrysler, as well as with Toyota and Honda.
On the same day, the company said net profit for the first nine months of the year more than doubled to 5.61 billion yuan, while revenue gained 81.40 per cent to 34.39 billion yuan from a year earlier.
GAC’s shares have advanced 38.78 per cent this year.