Lu Guanqiu, founder of Wanxiang Group. [Photo/China Daily]

Manufacturer announces passing of iconic entrepreneur Lu Guanqiu

Lu Guanqiu, the iconic entrepreneur from Zhejiang province who founded China's largest automotive parts company Wanxiang Group, died on Wednesday at the age of 72, the company announced.

He held a 55.78 percent stake in Wanxiang Qianchao, which is the listed arm of Wanxiang Group. The transfer of the stake has not yet been completed.

Wu Xiaobo, a well-known financial columnist in China, said that Lu always had a keen intuition, which is the gift of all entrepreneurs.

His success in managing Wanxiang helped Lu rise high in the nation's rich list. Rupert Hoogewerf, founder and chief researcher of Hurun Rich List, rated Lu as "evergreen" on the list. In the 2017 Hurun Rich List, Lu and his family ranked No 37, with a net wealth of 49 billion yuan ($6.96 billion).

"Lu is the first name that popped into my mind when asked about a model of Zhejiang entrepreneurs, although his wealth has been overtaken by Zong Qinghou from Wahaha and Jack Ma from Alibaba," Hoogewerf said.

"He is industrious, down-to-earth and low-profile. He was the first private company owner who could make his wealth transparent to the public," he added.

Wanxiang was founded in 1969 with 4,000 yuan by Lu and six other local farmers in rural Zhejiang as a maintenance depot for farm machinery. It began focusing on producing universal joints in 1980, which is a key component in automobiles' driving systems.

Today, the company has a 60 percent market share in China's automotive parts sector. With 22 companies in 10 foreign countries, such as the United States and Germany, Wanxiang is a major partner of world-leading carmakers such as General Motors, Ford and Chrysler. One third of the cars in the US have Wanxiang products installed.

As one of the first entrepreneurs to look into the new energy sector, Lu kick-started Wanxiang's deployment in this sector in 1999. Late last year, Wanxiang obtained approval from the National Development and Reform Commission to become a qualified electric vehicle-maker.

According to a company announcement, Wanxiang will invest more than 200 million yuan in building a 10-square-kilometer innovative energy fusion city over the next five to seven years. The facility will host projects related to new energy automotive components, batteries and vehicles.

Lu Weiding, Lu Guanqiu's son, said that the fusion city is not about factories, but rather about establishing an innovation platform.

"Opportunities will be given to market disrupters that can bring together scientists, innovators, startups and investors," he said.