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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/