GMAC is First to Apply for Auto Financing License in China
12 November 2003 - 3:20PM
PR Newswire (US)
GMAC is First to Apply for Auto Financing License in China Joint
venture with local partner envisaged SHANGHAI, China, Nov. 12
/PRNewswire/ -- General Motors Acceptance Corporation (GMAC), one
of the world's leading automotive financial services providers,
today announced its China business has achieved a major milestone
by becoming the first foreign auto financing company to apply for a
license to conduct business in China. GMAC, a wholly owned
subsidiary of General Motors, has agreed to form a joint venture
with the Chinese partner Shanghai Automotive Group Finance Co. Ltd.
(SAICFC). The partners filed their application after the China
Banking Regulatory Commission announced the auto financing
regulations and the implementation guidelines that essentially open
the door for license applications. "As part of GM's commitment to
China's automotive market and consumers, GMAC is eager to bring its
best practices in automotive financing and services to China so as
to benefit Chinese vehicle buyers as well as the overall
development of the auto market," said Richard J.S. Clout, Executive
Vice President of GMAC International Operations. "We see great
market potentials in the auto finance segment in China," said
Clout. "Globally auto manufacturers sell about 70 percent of their
production through auto finance deals while in China it is a meager
15 to 20 percent. We expect auto financing business will grow 60-80
percent in the coming years." GMAC will form with its partner
SAICFC an Automotive Financial Institution with the headquarters of
the new company based in Shanghai. After the approval of the
license the joint venture will start to support the sale of
Shanghai GM (SGM) vehicles -- the joint venture between General
Motors Corp. and Shanghai Automotive Industry Corporation Group
(SAIC) -- throughout their franchised dealer network and offer
wholesale and retail finance products. GMAC and SAICFC will share
their complementary business resources, GMAC's vast experience in
global auto finance and many innovative auto finance products as
well as SAICFC's deep knowledge of the Chinese market and local
business practices. "We are bringing to the market our specialized
automotive financing expertise for more than 75 years. And we are
here to support those customers who are in need of funds to buy
cars -- this fulfills GM's long term commitment to the growth of
China's auto industry," said Clout. "Having commenced our internal
preparations for business in China already in 1998, we are very
glad that the regulations have now been issued and we look forward
to be able to start business in this exciting and dynamic market in
the near future," said Clout. "GM's commitment to China is well
documented through delivering world class products and technology
to China. Now it is time -- and we are eager -- to deliver the best
auto financing practice to China. This joint venture, which
represents the latest extension of the strategic cooperation
between GM and SAIC in China, is well positioned to do just that,"
said Phil Murtaugh, Chairman and CEO of the GM China Group. General
Motors, the world's largest vehicle manufacturer, designs, builds
and markets cars and trucks worldwide. Last year it sold more than
8.5 million vehicles in more than 190 countries and territories
around the world. GM has five joint ventures, two wholly owned
foreign enterprises and nearly 9,000 employees in China. General
Motors Acceptance Corporation, a wholly owned subsidiary of General
Motors, is one of the world's largest financial services companies
with business lines in automotive finance, commercial and
residential mortgages, and insurance. GMAC has operations in 41
countries and, since inception in 1919, has extended more than $1
trillion in credit to help finance more than 150 million vehicles
worldwide. Shanghai Automotive Group Finance Co. Ltd. (SAICFC) is a
subsidiary of Shanghai Automotive Industry Corporation (SAIC
Group). SAICFC is one of China's most successful non-bank financial
institutions with a registered capital of RMB 1 billion and total
assets of RMB 21.8 billion as of end of 2002. SAICFC specializes in
providing consumer credit, buyer's credit and financial leasing as
well as entrusted loans, etc. Its auto financing business has now
covered the entire China via the SAIC Group dealer network.
DATASOURCE: GMAC CONTACT: Rainer Schlitt of GMAC International
Operations, +49-6142-604-568; or Daphne Zheng of GM China,
+86-21-6875-8833, ext. 7631 Web site: http://media.gm.com/
http://www.gm.com/
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