Wang previously was BAIC's president. Han Yonggui, the automaker's vice president, has been appointed acting president.

Chinese media speculate that Wang has been demoted. As co-president, he will be responsible for only BAIC's overseas investments and activities.

According to the Shanghai-based China Business News, Wang's responsibilities were diminished because BAIC is not happy with the slow development of a mid-sized sedan for the company's new brand.

That sedan will be derived from the old Saab 9-5's architecture, which Wang purchased for $200 million (1.3 billion yuan) in 2009 along with rights to Saab's engine and transmission technologies.

The new sedan is supposed to debut later this year.

In 2008, Wang joined BAIC after a stint as Shanghai Automotive Industry Corp.'s vice president of product development.

Before that, he was chief engineer for Delphi Energy and Engine Management Systems in Beijing.

Wang graduated from Cornell University in the United States with a Ph.D. degree in 1985.

BAIC is China's fifth largest domestic automaker, according to J.D. Power. Last year, its group sales totaled 1.4 million vehicles. The company has joint ventures with Mercedes-Benz and Hyundai Motor Co.