The son of the Chairman of the Board of Directors of City Auto stopped being CEO

The Board of Directors of City Auto Joint Stock Company has approved Mr. Tran Lam’s resignation as General Director. Accordingly, Mr. Lam stopped being CEO of City Auto from January 3. He is the son of City Auto Chairman of the Board of Directors Tran Ngoc Dan.

Thus, Mr. Tran Lam only held the role of CEO of this auto distributor for exactly one month (appointed on December 3, 2024). Replacing Mr. Lam in this executive position is Deputy General Director Tran Quang Tri.

The change in senior personnel at City Auto took place a few days after TNG Investment and Trading Joint Stock Company was sanctioned for letting the father be the Chairman of the Board of Directors and the son the CEO role.

Current law stipulates that for public companies, the Director or General Director must meet the criteria of not being a person related to the family of the business manager, controller of the company and the parent company. TNG was fined 25 million VND for this error. At the same time, the company had to dismiss Mr. Nguyen Duc Manh – son of Chairman of the Board of Directors Nguyen Van Thoi – as General Director.

Established in March 2009, City Auto is the official authorized dealer of the Ford and Hyundai brands with nearly 25 years of operation in the industry. Chairman of the Board of Directors Tran Ngoc Dan is currently the largest shareholder, owning 9.23% of City Auto’s capital, while his son – Tran Lam holds 8.4% of the capital.

In the first 9 months of 2024, City Auto achieved revenue of more than 5,400 billion VND, an increase of 10% over the same period last year. After deducting expenses, this car distributor net profit was 13 billion VND, down 65% and only completed 15% of the year’s target. This business has just successfully acquired Volkswagen’s 3S dealership – VW Tan Thuan (HCMC), owning 99% of the charter capital here.