Yang Rong team started negotiation process

On November 4th, the cold feeling brought by the first snow in 2009 has not faded yet. However, Wang Chuantao felt a warm sun inside his heart as he got off the airplane.

As the Chief Executive Officer of Zhengdao Automobile Co. which is main body of Yang Rong's automobile-manufacturing plan, Wang Daochuan holds a set of new business model plan. In the ensuing 18-day trip, Wang Chuantoa will lead 15-person elite team to converge with domestic shadow teams and carry out in-depth site visits in more than 10 cities. Wang's working group will contact with the local government and start negotiations with four to five key cities, according to the Economic Observer. Thus after the low-profile shadow team worked for two years, Yang Rong's second automobile-manufacturing program achieved substantial progress.

“The project goes faster than expected and the locations of a series of domestic production bases will be released no later than the end of this year," Yang Rong said during a telephone interview with the Economic Observer.

Five days ago, the Far East Golden Resources Group Ltd. which is a HongKong-listed company belonging to Yang Rong announced that the group suggested that the name should be changed into the Hybrid Kinetic Group Limited. And new Chinese name should be Zhengdao Group Ltd.

Zhengdao was a name that Yang Rong previously set for his automotive business. “A listed company changed its name, which demonstrates group's business development philosophy and direction and determination of our commitment to expand business. The decision reflects that our long-term goal is to achieve internationalization in the commercial arena," Yang Rong explained.

The group's name was changed as soon as the Zhengdao Automobile Co. began to finance the project, which shows that Yang Rong's automobile-manufacturing plan will embrace a forthcoming comprehensive start ranging from capital management to entity development.

　　Domestic negotiations are underway

As the official leader of Yang Rong's auto team, Wang Chuantao is faced with an arduous task. Wang said:" Mr. Yang Rong's large-scale auto plan will start formally." Although it is early winter now, Wang Chuandao said that he had felt the breath of spring. The Economic Observer learned that the fifteen core staff led by Wang Chuantao would become the first batch of senior management and technical members of Yang Rong's auto-manufacturing project. That staffs come from different areas, including engineering, technical and management talents. However, we cannot find personnel who are skilled at financial and capital management.

It is worth mentioning that all of those fifteen people have doctoral degrees and have work experience in General Motors, Ford, Chrysler, BMW and other international automobile companies. They once worked in those big automakers for years. And 90% of them are newcomers who entered the company through

　　Yang Rong's global recruitment

According to the plan Wang Chuandao would meet the core members of domestic shadow team on November 4th and hold a three-day internal meeting.

Subsequently, Wang Chuantao will lead his team with the business plan to take up a in-depth field visit to more than 10 cities and contact with the local government. Wang will negotiate with four to five key cities and then he will go back to the U.S. from China on November 22nd.

Yang Rong told the Economic Observer that Zhengdao Automobile CO. cooperated with the University of Pennsylvania Wharton School to come up with the business plan. It is a new business model specifically designed for China. The key cities include Changchun, Anshan, Hefei, Yantai, and Tianjin and so on. “There should be at least a port city and it is most likely that we will choose between Tianjin and Ningbo," Yang Rong revealed.

It is reported that these cities were chosen by the storm team after repeated visits and negotiations. Wang Chuantao's team will work with relevant government officials formally and approach more details during the negotiations.

As to the issue of human resources, the Chief Technology Officer of Yang Rong's team once revealed that Mr.Yang has conducted two large-scale recruitment activities for global talents. Yang Rong also confirmed that and said that they had received more than 200 resumes, majority of which originated from the open recruitment in Detroit. Now the intetview is ongoing.

Meanwhile, Yang Rong has noted a recent case that a former employee of Ford was accused of "theft of trade secrets". He said:" I stressed the point in the interview that out of the respect to former employer and Zhengdao Automobile Co. new employees are not allowed to bring any materials related to the products made by other companies. You should know that Zhengdao will produce cars which bear new concept and technology."

In Yang Rong's view," the Europe and the United States auto industry will meet new environmental requirements in 2012. From now to 2010 there is not much time left and the road will also be very tortuous. Chinese auto market should be indulged in the good news of 10 million sales. China auto market should keep pace with world level. "

As to the issue of development of domestic project, Yang Rong said that "the development was faster than expected. Zhengdao will reveal where to build a series of domestic production bases no later than the end of 2009. At present the financial, engineering,product-designing and management teams are coming into play. Those arrangements will be announced at a proper time."Yang Rong stressed that Zhengdao has set Chinese market as the target and the products will be specifically designed for the domestic market. He said:" We will mainly target the medium and high-end products made by joint ventures because those products have some common weaknesses in terms of poor fuel efficiency and high emission. We will not only focus on the products produced by domestic automakers. Zhengdao is willing to provide them with the engine and power assembly to improve the products' emission level and fuel efficiency. That's a meaningful thing for China's environmental protection work."

Insiders commented that Yang Rong is like a work that pierce into a flock of sheep and acts as a incentive factor. If Yang's large-scale automobile-manufacturing plan filled with a new business model and concepts finally works well, a competitive participant will emerge in Chinese auto industry.（Translator:Qinghua/Hanxin)

　　See original Chinese report Please click