Exclusive interview with GAF superintendent

　　When people consciously or unconsciously said that China's automotive production and sales ranked first in the world, we should think about the long-term problems which have posed troubles for China's auto industry.

　　Now the capacity of China's auto industry totals up to more than 15 million units. In the year of 2009, the sales exceeded 13 million units. However, the exports volume was only 370,700 units, only about one fortieth of the total domestic production. In this aspect, China is left far behind with the United States, Germany, Japan and even South Korea. So can China achieve breakthroughs as to automobile exports? Do we have the right path to choose?

　　In the past ten years, there were a number of mergers and acquisitions in the world's auto industry. For Chinese automakers, there were overseas mergers and acquisitions and introduction of technologies or facilities. Of course, there was introduction of technologies and capital as well as establishment of plants. Are China's automobile manufacturers able to march towards the international market? How can they do that?

　　Nearly 20 years ago, when China's car sales reached 1 million units for the first time, situation of more than 100 entire vehicles manufacturers in China’s auto industry was called as scattered, chaotic and poor. However, after China’s car sales broke through 10 million units, there are still more than 100 entire vehicles manufacturers in China. So, why situation of scattered, chaotic and poor still exists currently? Whether China can find the solution or not in the future?

　　A series of major problems not only need to be analyzed by industry people, but also need to be analyzed by macro-economic experts. A series of major problems not only need to be discussed by Chinese scholars, but also need to be considered by global auto experts. That is the reason why China plans to hold Global Automotive Forum, which has global vision. From September 16 to September 17, 2010, Global Automotive Forum will be held in Chengdu by Automotive Industry Promotion Committee of China International Trade Promotion Committee and Chengdu Municipal People's Government. Theme of the Global Automotive Forum is shaping the future of an industry in transition.

　　This week, a superintendent at the organizing committee of Global Automotive Forum received an exclusive interview by International Business Daily.

　　Discussing the auto industry development standing on the global economy

　　International Business Daily: During a hundred-year history involves global auto industry, there were many famous forums, however, it is the first time we see a forum entitled Global Automotive Forum, then globalization of the forum is reflected in what areas?

　　Superintendent: It is indeed as you said, so far, the global auto industry has not such a platform. Considering that China is now the world's fastest growing car market, Chinese elements play a significant role in holding such a forum.

　　Specifically, globalization of the Global Automotive Forum can be divided into two aspects. First, this year's forum was organized for the first time, there must be well targeted. According to the problems facing the automotive industry, theme of the Forum has such a characteristic, that is, automotive industry is key to national industry, so we must stand on a high degree perspective of national economy even global economy to discuss it.

　　Second, we also see the global automotive industry trends. In addition to the automotive industry issues, relationship between industry chain and suppliers, brands. Of course, we have specific topic. The development of the emerging market is exerting an enormous effect on constitution of global auto industry and pattern of new formation.

　　We can notice industry transfer through Beijing Auto Show, and manufacturing industry is transferring to emerging markets especially China, which is well-recognized fact and a major event for the global automotive industry. Without China, rise of many other emerging markets also have great effect on formation of global auto industry new pattern. If we see it standing on global economy, it is necessary to be discussed.

　　In addition, with resource constraints, European cars tend to be smaller, so whether small cars will be the development trend of global auto industry or not? It is a big issue for all auto manufactures and global auto industry. Consequently, we are trying to relate to the strategic direction of global auto industry. Theme of the Global Automotive Forum will change every year, but this year we strive to select some of the more major issues for participants to analyze.

　　Meanwhile, the development of automobile industry has also brought some problems, resulting in a lot of problems between cars and society, cars and cities. We do not want to see conflict between cars and society, and we expect cars are be in harmony with society. Problems emerging in the process of development should be dealt with the viewpoint of development. So, speaking from the automotive industry, our views are very clear. Yu the Great subdues the flood by emphasizing on guidance rather than intercepting, and we hope that give China a longer development phase, which also complies with the scientific concept of development.

　　Guests from domestic and international economic, financial and automotive sectors

　　International Business Daily: Theme of the Global Automotive Forum is very prominent, then if the requirement for speeches or guests is higher? What kinds of people will Global Automotive Forum invite to express their views?

　　Superintendent: Forum participants consist of three parts. First are macro-economists. Second are the automotive industry people. Third are financial institutions that are related to automotive industry. You can see, the forum is not limited to the automotive industry. In my opinion, there are a lot of good forums in China, and their themes are different, but our theme will be different from all o them and will emphasize on differentiation.

　　Economists of course will express opinions through views of macro-economy. Although the automotive industry is very important, it is only a part of the national economy. We should not overestimate importance of it as well as not underestimate it, because healthy development of the auto industry is inseparable from impact of the macroeconomic environment. Contribution of Global Automotive Forum to auto industry is to provide auto industry with some constructive ideas from the macroeconomic environment.

　　The development of automobile industry is closely linked to national economy. Mergers and acquisitions in auto industry are directly related to investment banks, so we have to jump out of auto industry and discuss auto industry from finance industry.

　　It is imperative for China's auto industry to know rules of global auto industry in the process of going out. Therefore, capital market is very important, for instance, when a foreign company plans to sell assets, they will first resort to investment banks in accordance with a very standard procedure. China must know these rules before goes out, and get accustomed to such international environment as soon as possible. To survive, Chinese auto manufacturers must be international auto giants, which can not be changed by man's will, so Chinese auto manufacturers must go out.

　　International Business Daily: Could you tell us some guests of the Global Automotive Forum?

　　Superintendent: There are prominent guests from macroeconomic field, including the WTO Deputy Director-General Rufus Yerxa, U.S. chief negotiator Charlene Barshefsky when China's accession to WTO, 2004 Nobel Laureate in Economics and Fed consultant Plymouth Scott, and U.S. Economic Strategy Institute President Clyde Prestowitz.

　　In addition, senior executives from China Investment Corp., Bank of America and UBS, U.S. well-known automobile columnist and Pulitzer Prize winner Paul Ingrassia will attend the forum. Senior executives from global auto giants such as Mitsubishi Motors President Osamu Masuko, Toyota Motor Vice President Katsuaki Watanabe, General Motors Vice President Kevin E. Wale, and presidents of domestic large-scale auto manufacturers will also attend.

　　Global Automotive Forum will promote development of the international automobile trade

　　International Business Daily: As a leader of the organizing committee, can you point out the most fundamental motive to hold such a forum?

　　Superintendent: Many people have asked me why I want to hold such a forum. In my opinion, as an industry organization, we need to take responsibility of promoting the development of the international automobile trade. To create an exchange platform for domestic and foreign auto manufacturers, will also encourage Chinese auto manufacturers really go out.

　　Atmosphere provided by Global Automotive Forum will also help Chinese auto manufacturers have access to international environment and be able to feel the pressure. Despite a small success, we should not be complacent. China’s auto industry is a part of global auto industry, except in China, we have to go out. Of course, there are many other factors to consider, and we can use previous ways to consider again.

　　After all, it is a Global Automotive Forum and China’s auto industry is just one part of it and one aspect to be discussed in it. For Chinese auto manufacturers, to hold such a forum in China by us, there is a unique position to understand what is happening in global auto industry and the future of global industry. Global Automotive Forum offers us a chance to discuss the above issues.

　　In addition to holding such major international forum, next year we intend to hold Sino-Arab Automobile Forum and Sino-Europe Automotive Forum. Establishing a bilateral automotive industry exchange platform aims at promoting China's automobile industry to the world, and help Chinese auto manufacturers have intellectual preparation to understand the market.

　　International Business Daily: To hold such a large forum, I believe there are many difficulties and the pressure will certainly be great, so if there is a strong sense of responsibility and mission that pushing you to do this?

　　Leader: Human effort that counts! We have responsibility to tell everyone that to become truly strong and competitive auto manufacturers, they must become globally competitive enterprises. Because auto is a globalized and an open industry, so Chinese auto manufacturers must go out and participate in international competition in order to grow up. Otherwise, you can say I am an own brand in China, so everyone should support, however, after you go out after, we are all the same and we are all on the same competition platform, hence it is necessary for Chinese auto manufacturers to have global awareness.

　　International Business Daily: Will Global Automotive Forum be held every year? Have you considered something for next year's forum?

　　Leader: Location and time of next year's forum are being discussed now.

　　（Translator：Qinghua/Wade&Hanxin）