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Car services JV hopes to tap big market
By Li Fangfang (China Daily)
Updated: 2005-11-11 06:28
US Cornell Capital Partners and Beijing Jinche Yingang Auto Maintenance Centre announced yesterday in Beijing the establishment of a joint venture focusing on vehicle after-sales servicing.
The new business will be called Beijing Sino-US Jinche Yingang Auto Tech Services Ltd (Sino-US AutoMart).
"The auto after-sales market in China is messy and has not matured. However, it's a big market with approximately 80 million automobiles in China," said Zhang Xiaoyu, chairman of the Society of Automotive Engineers of China.
Sino-US AutoMart has total assets of US$29.45 million, and US$11.78 million of registered capital. The Chinese side will have 67 per cent of the new joint venture, with the US firm holding the remaining 33 per cent. The company has employed more than 1,000 people in China.
Sino-US AutoMart will focus on automobile after-sales services, including repairs and maintenance, insurance, the sale of parts, interior furnishings, care products, tyres and windscreens.
"We have six flagship stores, but want 60 in Beijing by the first quarter of next year. We want to be the nation's largest network for maintenance and sales," said Pang Guisan, president and chairman of the firm.
"We are planning to set up more than 3,000 chain and franchise stores in major cities across China."
He said this last goal would be implemented within five years, with a total expected turnover of 10 billion yuan (US$1.24 billion) a year.
According to Pang, Sino-US AutoMart is the first auto services joint venture since China entered the World Trade Organization.
Sino-US AutoMart believes its high technology from the United States will give it a competitive edge. For example, the company has introduced micro-paint repair technology that can repair bodywork scratches.
"Compared to regular paint in China, micro-paint is totally non-toxic and non-polluting. The whole process takes only 30 minutes, 10 times faster than usual," claimed Pang.
He promised that Sino-US AutoMart would introduce technology that has never appeared in China every month starting next year.
He also disclosed to China Daily that the firm hopes to be listed on the NASDAQ stock exchange in New York in two years' time.
http://www.chinadaily.com.cn/english/doc/2005-11/11/content_493880.htm
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Cornell Capital, Beijing Jinche Yingang set up China auto servicing jv- report
BEIJING (AFX) - US-based Cornell Capital Partners and Beijing Jinche Yingang Auto Maintenance Centre have established a joint venture focusing on vehicle after-sales servicing, the China Daily reported.
The joint venture, named Beijing Sino-US Jinche Yingang Auto Tech Services Ltd (Sino (Xetra: 576550 - news) -US AutoMart), will focus on automobile after-sales services, including repairs and maintenance, insurance, parts sales, care products, interior furnishings, tyres and windscreens, the newspaper said.
Cornell will hold a 33 pct stake in Sino-US AutoMart, and Jinche Yingang will hold 67 pct.
Sino-US AutoMart has registered capital of 11.78 mln usd and total assets of 29.45 mln usd, the newspaper said.
Sino-US AutoMart has six flagship stores, but wants to open 60 in Beijing by the first quarter of next year, the newspaper said, citing the company's president and chairman, Pang Guisan.
'We want to be the nation's largest network for maintenance and sales,' the newspaper quoted Pang as saying. 'We are planning to set up more than 3,000 chain and franchise stores in major cities across China,' he added.
These stores will be opened within five years and are expected to have a total annual turnover of 10 bln yuan, (that's an equivalent of $1.2 billion dollars - koko) the newspaper said, citing Pang.
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