GM’s financial business in China will not only involve Shanghai GM. It hopes that the future service scope of the joint venture finance company can be expanded to other GM joint ventures in China (such as SAIC-GM-Wuling) and GM’s global strategic partners (such as Daewoo, Isuzu, etc.). Suzuki, Fuji Heavy Industries, Fiat, etc.). General Manager of the China Public Relations Department said in an interview with this newspaper last week. General Motors Financial Corporation received approval from the China Banking Regulatory Commission on August 5. However, due to the implementation of some administrative procedures, GM China stated that the company will start business as soon as this month. The focus of the business is on Beijing, Shanghai and Shanghai. The person in charge told the reporter that the initial goal of SAIC General Motors Financial Co., Ltd. is to provide credit services for Shanghai GM's products, but as business development will expand as above. However, she also said that before making any decision to expand the business scope, it must make an in-depth analysis of whether the two companies can make profits. She stated that the new joint venture will start its credit business in the wholesale and retail sector from the very beginning, and the business will be carried out through the Shanghai GM authorized dealer network. Wholesale credit can provide a considerable amount of cash flow for dealers. Once the financial company begins to operate, dealers do not have to invest their own money to purchase the display cars in the showroom. The company will provide loans to dealers for each vehicle. Once the vehicle is sold out, the dealer must return the loan to the credit company. Geographically, the company will focus on Shanghai GM's key markets in Beijing, Shanghai, Guangzhou, and Shenzhen as its financial business, but it will expand its business to some coastal cities in the future, such as Jiangsu, Zhejiang, Shandong, Fujian, and Guangdong. Complementary advantages between Chinese and foreign parties According to the "Administrative Measures for Auto Finance Companies", auto financial institutions are not allowed to establish branches. It is reported that SAIC General Motors Financial Co., Ltd. is headquartered in Shanghai and its business structure will guarantee the coverage of dealers in several key regions. The joint venture company will provide centralized support from the headquarters and local staff. Regarding the division of labor between the GM Financial Services Corporation and SAIC Finance Corporation in the joint venture company, the person did not directly answer, but said that both parties would form complementary advantages. GM believes that GM's extensive experience in global auto financing and SAIC Finance's understanding of the Chinese market and local business operations will potentially provide strong support for SAIC Motor's opening and future operations. The imperfection of the credit system is a difficult problem. The relevant person in charge of GM in China confessed that there are many challenges in operating auto credit and strong local bank competition in China, but the main problem is that there is only one credit bureau in Shanghai that can provide information for customers. . In many other places in China, cars cannot be used as collateral, and other mortgage methods must be sought. Wei Deming, general manager of SAIC General Motors Financial Co., Ltd., believes that in a rapidly developing automobile market, if there is a lack of normal risk management tools, such as a nationwide credit bureau, it will often happen. However, the head of General Motors Financial Corporation believes that their experience in financial services in many countries in Asia and Latin America applies to China. These countries also do not have a credit system, but General Financial Corporation believes it has unique "risk control" technology. Reporter Lu Huimin
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