Inspiration point Shenlong Fukang.docVIP

 PAGE \* MERGEFORMAT 7 Inspiration point Shenlong Fukang Known to develop ‘first brand in China Jia Jiao’ in DPCA has gone through a decade. For more than 100 million of this investment in Sino-French joint venture, can be described as moving forward with difficulty. From the last century in the late eighties, a series of project, study, negotiation and repeatedly, after a few years and experienced a ‘89 ‘political troubles and the hardships of the Gulf War 91, in September 1992, the first one ‘Beverly’ car was finally off the assembly line, the central leadership personally heard the briefing. At that time, Dragon and SAIC Volkswagen, FAW Volkswagen, and as three small, to become China’s national car industry hopes. However, the young dragon has committed three major mistakes: First, the scale of investment and market demand off shoot, Tandaqiuquan to carry a heavy debt burden. At that time the overall demand for domestic cars is not the case, launched dragon one the 30 million units of production scale, a building 15 million units. In fact, 10 years, the dragon has a total production of less than 30 million units, was in 2001, sales are not to 5.4 million. The resulting equipment, plant and a large number of idle capacity. At that time, the French side to the delay in funding in place, the initial investment capital comes from bank loans. Several billions of bank debt and interest burden and Wuhan Shenlong company became well-known large losses, this issue until 99 years in coordination with the Government, through the debt-equity swap means the problem was solved, China Orient Asset Management Corporation has therefore become God Long’s third-largest shareholder. On the contrary, listed in 1998 in Guangzhou Honda, registered 10 million investment 20 billion in 2001 alone to achieve net profit of 20 billion, by rolling the development of a great success. The Dongfeng company’s other projects - the good functioning of Nissan Fengshen, to some extent have