Guangzhou Automobile invested 500millon

　　Before its first independent brand model Chuan Qi launched, Guangzhou Automobile has finished the long-wait auto finance business project.

　　July 13th, approved by China Banking Regulatory Commission, the opening ceremony of Guangzhou Automobile Agricole Auto Finance Limited was held at the Ritz-Carlton luxury hotel.

　　Executive Vice Mayor of Guangzhou City Wu Yimin, president of Guangzhou Automobile Zhang Fangyou, general manager Zeng Qinghong, France Credit Agricole Personal Finance (hereinafter referred to as Credit Agricole) Philip Dumont were all at present.

　　This is the first auto finance company in Guangdong Province, and also the second auto group in Guangdong has announced to enter the car loan market after BYD in June announced the establishment of an auto financing company.

　　Previously, there have had already for many years auto finance companies of international brands business such as Shanghai GM, Volkswagen and Toyota. This time, domestic manufacturer launched a “financial revolution “seems to

　　Show a trend of confrontation.

　　The brewing of the project

　　　It is understood that the Guangzhou Automobile Agricole 50:50 joint venture established by the French Credit Agricole and Guangzhou Automobile Group, with a registered capital of 500 million Yuan.

　　Established in 1951, French Credit Agricole is a wholly owned subsidiary of French agricultural credit group, engaging in consumer credit. Besides, it is also a leading international consumer credit agency. In 2009, the total assets of French Credit Agricole reached 75.8 billion Euros.

　　It is reported that Guangzhou Automobile Agricole auto finance company will focus on providing loans for consumer personal purchases, car dealers purchase vehicles and business equipments as well as for auto leasing.

　　At present, Guangzhou Automobile Agricole has appointed Wang Dan as the chairman, and Adam as General Manager. Majored in the accounting, graduated from Zhongshan University School of Management Accounting and Auditing Department, Wang Dan has rich experiences since she has ever the post of Deputy Director of Auditing division and the Minister of Accounting department,

　　“Since the contract has been signed in 2009, the preparation was finished just in one year. And we then will focus on risk management; internal control and auto consume credit.”Wang Dan said. In the first five-year planning, the company offer automotive financial services only for Guangzhou Automotive Group. And then will gradually consider provide financial support for terminal consumptions and the OEMs.

　　In accordance with the planning, Guangzhou Automobile Agricole’s business will be gradually extended to the provinces, municipalities and autonomous regions. Meanwhile, Guangzhou Automobile Agricole will also accumulate experienced rapidly and further enrich the product line as well as improve the business model, risk control and internal management systems.

　　“China has become the world’s largest auto market, which is a opportunity for Guangzhou Automobile Agricole.”General Manager Zeng Qinghong said in the ceremony.

　　The guidance of the policy

　　Early in 2007, Guangzhou Auto has already had the idea to establish an auto financing company. “At that time, it mainly resulted from the consideration to improve automobile industrial chain.” Zeng Qinghong said.

　　　In fact, in addition to Guangzhou Automobile and BYD, domestic car enterprises such as the Brilliance, Changan and JAC have also planned to form auto finance company in the near future. The direct cause of this wave is the adjustments of the government policies. February 18 this year, the CBRC issued a new car finance management measures, making large modifications and adjustments about the auto financing company’ s access, risk management, business scope and contents.

　　Under previous policy, regulators hoped to take commercial banks as mainstay to promote “bank-enterprise cooperation” consumer credit model. But in fact, over the past few years, with the exception of few banks, most commercial banks seemed not interested in auto loan business, which caused the failure of the “bank-enterprise cooperation” model. On the other hand, most domestic automakers who were interested had difficulties in financing and acquired approval.

　　In the international market, as a mature industry, auto finance business has been an integral part of the chain in the auto industry and its operating performance lies in the high end of the whole industrial chain. In China, consumer auto credit has just started. Auto financial services provided by auto finance companies are being gradually accepted by the market.

　　In 2009, Guangzhou Auto Group sold out 640,000 vehicles and sales revenue reached 50.3 billion Yuan.

　　Previously, Guangzhou Automobile Group also planned to launch self-owned brand model Chuanqi with the first output of at least 100,000 units. With all vehicles, parts, and auto consumption credit, if the auto insurance business is improved, industrial chain of Guangzhou Automobile will be more completed.

　　(translator: yalong/Jessie)

　　See original Chinese report Please click:

　　http://auto.sohu.com/20100716/n273546301.shtml