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The 2007 Shanghai International Auto Show is in full swing. During the period, SAIC Chairman Hu Maoyuan, Deputy Chairman Chen Hong, President Shen Jianhua, Vice President and Shanghai Automotive Shuanglong representative director Murphy and other senior executives, for the first time collectively “appeared†to face the media. The hot issue was answered. SAIC also rushed to extend its olive branch to Nanjing Auto on the day before the opening of the Shanghai car and expressed its willingness to negotiate with Nanjing Auto.
No overseas listing plan
Reporter: Can you tell us about SAIC's overseas layout plan? Is there any overseas listing plan?
Chen Hong: Now the market we face first is the domestic market, and further improve the layout of the domestic market.
As for the overseas layout, we will give full play to the role of Ssangyong Motor Co., Ltd. and further improve the layout of our overseas marketing network, laying a good foundation for further breakthroughs in overseas markets. There are no plans for overseas listing.
Reporter: How will SAIC and Shanghai Automotive be positioned in the future? Will the company's parts and components assets be listed after it has been consolidated?
Shen Jianhua: SAIC Group wants to develop into a comprehensive industrial investment and operation company. As a listed public company, SAIC Motor will use its entire vehicle business as its core, and simultaneously develop parts and auto finance businesses closely related to vehicle development, and develop into an auto manufacturing company with core competitiveness and international operating capabilities.
Reporter: Will SAIC shares be withdrawn?
Shen Jianhua: We will further integrate SAIC and SAIC. SAIC will directly control SAIC Motor and directly manage the parts and services business. At present, SAIC Motor’s state-owned shares have been transferred to SAIC and have been approved by the State-owned Assets Supervision and Administration Commission of the State Council. At the same time, the work concerning the spare parts business and service trade business is also underway.
Ssangyong announced that it will not strike this year
Reporter: How does SAIC view the Korean Ssangyong strike?
Murphy: In the communication with the Ssangyong Trade Union, SAIC adopted a strategy that both sides hope to achieve a win-win strategy. This strategy is also very effective in the use of Ssangyong, and has achieved relatively good results. From the final terms agreed between us and the union in 2006, it is generally beneficial to the company and laid the foundation for Ssangyong’s long-term development in the future.
In the year of 2006, Ssangyong made great efforts, and its operating profit has turned to profitability. At the Seoul Motor Show in South Korea two weeks ago, the Chairman of the Ssangyong Trade Union announced that it would not organize a strike this year.
NAC responds to SAIC in a low-key manner:
"Cooperation has been very good"
The latest progress has been made in the interaction of Shanghai Auto Shanghai Nanjing Automobile Co., Ltd. which is concerned by all parties. After SAIC executives took the initiative to express their willingness to unite Nanhua on the 19th, the first response from Nanjing Auto indicated that the cooperation between the two parties “has been very goodâ€.
"I believe we and Nanqi can properly handle this matter." SAIC Motors is rushing to extend an olive branch to Nanjing Auto on the day before the opening of Shanghai Auto. SAIC Chairman Hu Maoyuan, accompanied by deputy chairman Chen Hong, president Shen Jianhua, vice president and representative director of SAIC Ssangyong, pointed out to reporters: “Shangqi is very willing to carry out friendly negotiations with Nanjing Auto.â€
Hu Maoyuan told reporters that both companies have a state-owned share component and should become the basis for joint ventures. “We have quite a lot of state-owned components after all and we should be more efficient. The relevant departments of the state, many old leaders of the automotive industry, and the general staff of our two major companies all hope to take a joint and efficient approach.â€
Hu Maoyuan also quoted on the spot "this is the same root, worry about what is too fast" to describe the necessity of cooperation. "I as a legal representative of SAIC Group very seriously told everyone that we want to unite."
A person in charge of the Nanjing Automobile Propaganda Department told this reporter that he had already known Hu Maoyuan’s speech at the first time. “We have been working very well with SAIC,†said the person in charge. “Our joint venture is developing healthily and Nanjing Automobile will continue to cooperate with all parties in the future.†However, he did not disclose whether the two sides would jointly initiate negotiations. .
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