Building a World Brand BAIC GAC Focused Commercial Vehicle Development in 2010

On January 25, 2010, China Economic Net “Cheng Yuanhui's Living Room” invited Executive Vice President of China Machinery Industry Federation, Chairman of China Automotive Engineering Society and Honorary Chairman of China Automotive Industry Association Zhang Xiaoyu; Party Secretary and Chairman of Beiqi Holding Company Xu Heyi, Chairman of Beijing Automotive Investment Co., Ltd. and Zeng Qinghong, General Manager of Guangzhou Automobile Group Co., Ltd. The three guests conducted in-depth discussions on how to look at the achievements and deficiencies of the Chinese auto market in the past year and the next steps of the Chinese auto industry. According to the guests, commercial vehicles have become the key targets for the development of Beiqi and Guangzhou Automobile companies this year. It is even more necessary for China's commercial vehicle brands to go global.

Zeng Qinghong, general manager of Guangzhou Automobile Group Co., Ltd., said that in the national revitalization plan and merger and reorganization, it is necessary to give play to the advantages of both parties. GAC's resource reorganization in 2009 includes the acquisition of Hino and Changfeng. Many people speculate that it is not the Guangdong provincial government and the Hunan provincial government. What agreement has been reached is actually a kind of market behavior. It can be said that it relies on economic laws to restructure. The government did do the same and companies understand it. This is a very good thing for China's auto industry.

Zeng Qinghong stressed that reviewing international experience, how can there be success in success? The phenomenon of marriage and divorce has also led to the reflection of our business. Why reorganization? Who let us reorganize? This is a question worth considering. Especially in a very open province such as Guangdong, the government does not give any pressure to the company. There is no mandatory requirement to do much. If the company is healthy and sustainable, this is the most important thing. Therefore, Guangzhou Automobile has not been looking for quantity, only hope how to maximize the benefits, maximize the tax, complement each other.

Zeng Qinghong pointed out that GAC has developed relatively smoothly over the past few years and has basically maintained steady growth. With regard to adjusting the structure of enterprises and products, the development layout of passenger cars, commercial vehicles and parts and components has been completed. GAC Group reorganized and merged several companies last year, including Fiat in Hangzhou, Hino in Shanghai, Hino in Shenyang, Changfeng, and parts and components. He stressed that the reason for the reorganization was the demand for strategic cooperation in the development of GAC, rather than revolving around doing "big". If companies do not follow economic laws and market operations, they may be very unfavorable to the development of the company. Therefore, GAC has been following this principle to carry out mergers and reorganizations. In addition, GAC will also focus on the development of commercial vehicles this year.

Zeng Qinghong finally stated that by 2010, GAC had been setting up factories, R&D centers, and design for exactly five years. GAC Group hopes to achieve a capacity of 2 million units in the new “12th Five-Year Plan”. According to the current development, the output value can reach 380 billion, the profit can reach 25 billion, and the tax revenue can reach 30-35 billion.

Xu Heyi, chairman of Beijing Automotive Investment Co., Ltd., spoke of the company’s development goals for 2010, saying that BAIC must focus on developing its own brands, new energy vehicles and key components.

Xu He emphasized that in the field of commercial vehicles, Beiqi Foton has become the number one commercial vehicle in China, and it will soon become an international market, turning the Futian brand into an influential Chinese commercial vehicle brand in the world. In the field of passenger cars, Beijing Automotive started later, the next step is to develop its own brand of passenger cars; in the area of new energy vehicles , Beijing New Energy Vehicle has already gone ahead of the domestic provinces and cities, and Beiqi should increase further. The output of new energy vehicles will focus on the research and development of hybrid and pure electric vehicles. Another focus of Beiqi will be on key components, focusing on powertrains and automotive electronics.

Finally, Zhang Xiaoji, executive vice president of the China Federation of Machinery Industry, chairman of the China Association of Automotive Engineers and honorary chairman of the China Association of Automobile Manufacturers, concisely sums up as follows: Bigness depends on the market, and strengthening depends on ourselves. If the policies of the past were to be big, the policies in the future will mainly be stronger. For a long time in the past, we must first meet the needs of the national economy. First, we must maintain growth. This year we call for steady growth. In the long run, the Chinese auto industry needs its own efforts.

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