CGA Sales Revenue to Reach 50 Billion

　　Editor's Note: On September 16, 2010, the curtain of Global Automotive Forum rises in the city of Chengdu. The theme of the meeting is "Shaping the future of an industry in transition".This year's discussions at the Forum will cover the key issues and challenges shaping the future of the auto industry as it goes through a critical era of transition - including the impact of China's auto industry emergence and the center of world auto industry shifting.

　　During the meeting, Jin Zhenjun, President and Executive Director of China Grand Automotive Group accepted an exclusive interview with SOHU AUTO.

　　SOHU AUTO: first, we want to ask that as the only one chief of the dealer

　　Groups, what’ your evaluation of this forum and what have you learnt from it?

　　Jin: it is a very meaningful thing that I can stand here today to represent the whole China dealers and service providers. In the past, China automobile industry attached more importance to manufacturing and vehicles. But if we take a look at the development of the entire industry,

　　It is the service providers that directly in contact with the customers. Even though the products are very excellent, the consumer’s experience and understanding will not be very good if there lacks a good after-service market. We think firstly the OEM is very important, then the

　　Services should also keep up to be a greater supporting power and

　　Provide better services.

　　Today, we can represent the whole China dealers and service providers to attend the meeting, it can also be said to be a turning point of China auto industry. Compared to the United States or other countries, the position of dealer service is definitely different from that of China. I personally feel that the participation is a great honor.

　　SOHU AUTO: it shows the rising of Chinese car dealers and the gradual change in status?

　　Jin: Yes, it shows the industry is paying more attention to dealers, which is more important.

　　SOHU AUTO: This is a global forum and also the first one in the automotive sector of such high-level. CGA is also a company with a global vision that has introduced a lot of international management concepts, which is quite rare among dealers. Can you introduce them for us?

　　Jin: when we started to design the company, what we saw was not the achievement of 10 billion Yuan3 years ago but the managements of the large global distributors. As a national organizational structure,

　　Our company should be quite unique in management platform, needed personnel, business model as well as financial support. Our KPI system, personnel allocation, around three-tier management structure is a kind of our initial concept designed by our two major shareholders – Xinjiang CGA Group and the United States TPG (TPG Capital). We were intended to build the largest and best in international auto service provider in China from the very beginning. We have quite different starting point. We are to do a very specialized business. Our personnel are all with international management experience. At the same time, many of our regional leaders and core team have rich experience. These two different talent pools can be integrated into the enterprise, making it international. It is a great honor that we can build a local company to an International corporation in China.

　　SOHU AUTO: as I know, you company is a very ambitious one that hope to enter the world Fortune 500. And till now, how far do you think you are away with the target?

　　Jin: to enter the world Fortune 500 is not an easy task. We need support from our joint venture partners, customers and clients. First, we need to give our OEMs good support and help, which are the biggest clients. The consumers rank the second place. Only With customers’ satisfaction, we have the opportunity to develop. If we have done a good job in these two fields, we can nationally achieve our goal. Although we have the vision, we have strict requirements. We are not just pursuing the size. We are conscientiously working every day to create a good business; therefore, finally, we can enter the world Fortune 500.

　　SOHU AUTO: You mentioned just now that you have developed to 300 billion Yuan from100 billion three years ago?

　　Jin: last year 300 billion Yuan. This year it should be close to 500 billion.

　　SOHU AUTO: I want to ask a question, the public have a cognitive of CGA that you rely on the acquisition of distributors in various regions around the country, and finally integrate together through international operations and management. They are very familiar with the situation on the ground while will you be acclimatized as a foreign investment company?

　　Jin: We have thought about this actually. When we first began to design some of our large enterprise organizations, we have three types of managements; the first layer is the headquarters, mainly in charge of the strategic business model of large enterprise. The second layer is the region's management based on a large framework and market requirements in the areas. In the second layer, we can do some works more flexibility, which can play a role you just mentioned.

　　SOHU AUTO: act according to circumstances?

　　Jin: Yes, requirements of consumers in varied regions are different, but generally speaking, 70% to 80% is the same. As this issue with the OEMs, OEMs certainly are providing the same commodity, but how to promote these products, and introduce different policies, which cars to sell are all dependent on the regional circumstances.

　　SOHU AUTO: just now you mentioned that you are now developing network national. Besides, this year, you can achieve 50 billion. As you are directly facing the terminal users and own such a huge base, do you still wish to do other more things?

　　Jin: We believe in the opportunity, because our customer base represents the highest level in China. It should be said like this, about10% of China .we can understand their demands best. So we may co-promote the products with the banks. Or if there are some new services related to the auto industry, we can support the banks in these issues.

　　SOHU AUTO: any specific plan?

　　Jin: we are just thinking. Maybe till next year there will be specific plans.

　　SOHU AUTO: maybe you just do want to disclose it. There are great opportunities. OEMs do not have this opportunity.

　　Jin: just wait.

　　SOHU AUTO: we just have such thoughts.

　　Jin: of course we can cooperate with you.

　　SOHU AUTO: the last question, just now you mentioned that in the foreign countries, the status of dealer groups and their relations with OEMs are different. But now in China, the dealers are separated. The industry are discussing the appearance of companies like you CGA. There are talks that relationship between dealers and OEMs will change. When do you think is going to happen?

　　Kim Jin Jun: This change needs more communication and understanding from both sides because it will definitely benefit both. The OEMs want very good, strong service providers to develop business and increase market share. Our dealers and service providers are to give excellent supports to them. Whatever, OEMs are occupying the dominance of the industry. Actually, there should be no fictions. We two partial can work together to do business and enhance our two industries. With more communication and cooperation in the future, naturally there would be no problem. The United States and Europe has been about 10 years ahead of us. Therefore, now the large OEMs are relying on large dealers to win market.

　　SOHU AUTO: Thank you.

　　(Translator: Yalong/Jessie)