While cars may enjoy relatively long lifespans, the same cannot be said for the men and women at the helm of car manufacturers and dealerships. When business performance falters, those at the top often become the first casualties.
This is evident in the recent wave of resignations and dismissals among top officials of various car brands across the country. Their departures are not necessarily due to weakness or incompetence; rather, their efforts to position their brands at the forefront of fierce local competition have simply not been sufficient. This trend is quite unusual in the local automotive industry.
The landscape has changed dramatically with the influx of numerous car brands, particularly the Chinese manufacturers that are gaining dominance in the race for electrification. Many local automotive professionals, who previously held secondary positions under long-established leaders, have suddenly found themselves in the spotlight as heads of these “newbies.”
Unlike their Japanese counterparts, who have historically dominated the local market and enjoyed long tenures, the lifespan of top officials in these new companies is no longer guaranteed to extend beyond their predecessors. The past two years have starkly illustrated this shifting dynamic, with frequent changes in leadership becoming the norm.
The reasons are clear: competition in the local auto market is fierce, and these new entrants are not inclined to wait years for positive results. They demand immediate success, putting immense pressure on their teams to deliver results overnight.
Interestingly, many who have resigned or been let go have quickly found new positions with other emerging brands entering the local market. An industry observer noted that the “musical chairs” phenomenon has become commonplace in the automotive sector over the last two years, contrasting sharply with the past when Japanese executives could expect to remain in their roles for a decade or more. “I can name several top officials who thrived in their positions for years, even retiring from them. Nowadays, you see these leaders moving from one brand to another in a blink, as if changing shirts,” the observer remarked.