未来协同合作：机遇大于挑战

汽车产业的未来充满挑战与机遇，特别在全球经济一体化的今天，汽车产业的发展面临着诸如环境、油耗、未来能源、安全与交通管理等问题的制约。在此背景下，由政策制定者、行业机构、汽车制造商、供应商和所有汽车行业相关方所构建的汽车行业环境更加凸显出重要性。

2013年10月18日下午，作为2013年全球汽车论坛闭幕式的压轴会议，由中共武汉市委常委、常务副市长贾耀斌，福特汽车公司总裁兼首席执行官Alan Mulally，沃尔沃汽车公司董事长、吉利控股集团创始人兼董事长李书福，大众集团管委会成员、大众汽车集团（中国）总裁兼首席执行官Jochem Heizmann教授、博士，四位政企高层就“我们拥有一个共同的未来”话题进行了思考和分享，为汽车产业协同发展描绘出一个清晰的蓝图。

“今天我们的主办方给我们提出了一个问题，那就是协同合作是不是我们面对可持续发展所拿出的一个答卷。我们的回答是非常斩钉截铁的，是的，这是我们福特的观点。”福特汽车总裁Alan Mulally表示。

福特公司的百年历史，使得Alan Mulally对于协同合作拥有更多的思考。他认为，我们汽车行业在过去几年取得了很大的进展，因为它对于经济的发展有巨大的贡献，对于实现能源的独立性以及安全也是非常重要的，除此之外，它也会给我们的环境可持续发展问题提出一些解决方案。

所以现在我们可以看到，确实的可持续的技术路线图已经是非常清楚了，而且在这个过程当中我们是需要很多的协同以及合作的。首先我们有很大的空间可以进一步去改善，包括柴油机、汽油机在内的传统内燃机，包括高强度的钢、铝合金，以及复合材料等。所以，在材料方面我们就有很多可以改善的。除此之外，还有空气动力学、电子设备等可以改善的地方，以及系统的整合。可能在当中最重要的一个技术就是兼容性。

Alan Mulally表示，在整个过程中，我们事实上要让更多以前我们从来没有合作过的人参与到其中，所以我们非常非常热情地回答主持方给我们提出的问题，更多的协同合作确实是可持续发展的一个解答。

作为这个环节中唯一的中国企业，李书福所领导的吉利集团在收购豪华品牌沃尔沃后，对于协同合作有了更加深层的理解。

“吉利是吉利，沃尔沃是沃尔沃，吉利是大众化的汽车品牌，沃尔沃是豪华汽车品牌，吉利与沃尔沃是兄弟关系，不是父子关系。”沃尔沃汽车公司董事长、吉利控股集团创始人兼董事长李书福表示：“自2010年并购以来，吉利汽车与沃尔沃汽车的合作也有序地推进，2013年2月，吉利控股集团在瑞典哥德堡设立了吉利、沃尔沃联合的一个研发中心，这一研发中心已经于9月投入了运营，我们整合了吉利和沃尔沃优势的研发资源，并且依托哥德堡强大的研发基础，开发全新的中级车模块化架构，从而为吉利汽车和沃尔沃汽车下一代领先的终极车型奠定了扎实的技术基础。”

李书福表示，只要我们在新技术和新车型上不断地努力、不断地探索和实践，坚持沃尔沃汽车在技术上的领先优势，沃尔沃汽车在未来市场竞争当中一定能够获得更加广阔的空间。

随着在中国市场影响力的扩大，大众汽车集团（中国）总裁兼首席执行官Jochem He⁃izman博士表达了相同的看法：“首先是我们面临的未来挑战；其次是我们未来可持续发展的需求；再次是员工的重要性，包括汽车行业的员工对于汽车行业未来的发展，以及中国社会的未来发展都非常关键。”

“中国的环境是充满挑战的，我们的时代也面临着很多不确定性，比如说面临气侯变化、城市化进程、拥堵问题，以及中国大城市严重的空气污染。”Jochem Heizmann认为，中国面临的第一个任务，就是要解决这样的生态问题。而且我们在座所有的人无一例外都需要在环保方面作出应有的贡献。

可持续发展对整个汽车行业来说都是一个挑战。我们要找到一个很好的方法去平衡公民对移动性的需求，同是照顾到环境以及我们的资源总量。

Jochem Heizmann表示，汽车行业未来的发展靠的是三个支柱。节约资源的生产、高效的移动性和智能的系统确保我们的驾驶不打折扣。所以坚信要实现这样的一些目标，中国的汽车行业需要广泛的合作，包括和供应商进行合作，一个清晰稳定的法律框架和环境，并且能广泛地和核心的参与者、合作伙伴建立关系，同时我们员工要有紧密的团队合作精神。最后，我们也需要我们和中国的合资企业通力合作。

中共武汉市委常委、常务副市长贾耀斌表示：“展望未来，汽车技术革命方兴未艾，全新动力技术及商业模式正改变着汽车行业的面貌和竞争格局，全球汽车行业在变革中隐含着无穷的机遇。应对挑战，提出创造性的解决方案，以及政策制定者、行业机构、汽车制造商、供应商和所有相关方之间的紧密合作，是破解发展难题、抢抓机遇、创造汽车行业美好未来的关键所在。”

作为此次举办地东道主，贾耀斌高度肯定了此届论坛所取得的成绩，他说：“从目标、策略、模式等诸多方面把握汽车工业的未来发展之路，形成了诸多富有成果的共识。”贾耀斌表示，论坛高论频出，各分会场花火四溢、精彩纷呈，此次论坛办得非常成功，达到了预期的效果。

Executive Summaryof Global Automotive Forum 2013

With the theme of The Future Development of the Automotive Industry—Target·Strategy·Implementation，the 4th annual session of the Global Automotive Forum（GAF2013）came to asuccessful end on October 18，2013 in Wuhan.In all，over 900 people from 20 countries andregions participated in the event with great enthusiasm.82 distinguished speakers aired theirviews on different topics in 16 sessions，all of which are of great importance to the future of theautomotive industry.Besides，the 2.5 days event also witnessed a closed⁃door meeting，6press conferences，10 official meetings with the local government，a carefully prepared concertmixing the eastern and western music，and dozens of bilateral discussions and exchanges.

GAF2013 was co⁃sponsored by the CCPIT Automotive Committee and the People’s Govern⁃ment of Wuhan，participants included the representatives from the National Development andReform Commission of China，the Ministry of Industry and Information Technology，Ministry ofCommerce，the State Administration of Industry and Commerce，the State Administration ofQuality Supervision，Inspection and Quarantine，China Machinery Industry Federation；govern⁃ment officials from U.S.，Germany，U.K.，Republic of Korea，Brazil，Indonesia andThailand；international big names such as Lord Neil Davidson，a Member of the House of Lordsof U.K.，Gao Xiqing，Vice Chairman and General Manager of China Investment Corp.，Al⁃an Mulally，President and CEO of Ford Motor Company，Fumihiko Ike，Chairman and Repre⁃sentative Director of Honda Motor Co.Ltd.，Dr.Jochem Heizmann，Member of the Board ofManagement of Volkswagen AG，President＆CEO Volkswagen Group China，Suk⁃geun OH，Executive Vice President of Hyundai Motor and Amedeo Felisa，CEO of Ferrari S.P.A.，aswell as the presidents，chairmen，general managers of 20 major Chinese automotive groups andbusinesses.Besides，economists，financial specialists，consultants，scholars and journalistswere also there at the event to conduct face⁃to⁃face interactions with the automotive industry andgovernment agencies.

GAF2013 attracted the attention of media organizations both at home and abroad.In all，hundreds of journalists from 85 domestic and 24 foreign media organizations covered the forum onsite，such as The New York Times，The Wall Street Journal，Forbes，Bloomberg，Reuters，Automotive News，Wards Auto，Autoline，AutoCar，Automobile Industry，Springer-Verlag，LeJournal de l’Automobile，Auto India，as well as the Xinhua News Agency，CCTV，Voice ofChina of China National Radio，China Daily，Phoenix Satellite Television.The TV productionteam from Blue Sky Production in the U.S.and the film production teams from Sirens ofChrome will conduct live recording and rebroadcasting of the event.China Central Televisionplayed an active part again as an in association with partner.Real time，all⁃dimensional and in⁃depth coverage by leading Chinese and foreign media and major websites have made the voices ofthe forum heard by people from different parts of the world，and thus aroused intensive respon⁃ses among people from all walks of life.

GAF2013 has attained new heights in terms of scale，composition of the participants，levelof internationalization，and diversity of activities，especially in terms of the height，depth andbreadth of the topics for discussion.Instead of serving only as a platform for multilateral ex⁃change，GAF2013 has also been a platform for bilateral exchanges，with one⁃on⁃one meetingsbetween auto enterprises，enterprise press conferences addressing the media，meetings betweengovernment officials and top level executives from enterprises.All these have proven that theGAF 2013 is an effective platform for all the stakeholders of the automotive industry.

GAF2013 has received the continuous support from our partners or sponsors such as Deloit⁃te，Bank of America Merrill Lynch，Continental，BMW，WISCO Tailored Blanks，Bridges⁃tone，Bose，Iveco，Magna，Delphi，HCP，Red Bull，5100 Mineral Water，etc.，withsuch a good platform，we have established solid and long⁃term win⁃win relationship with ourpartners.

Thanks to the great support by the whole industry，the relevant municipalities and part⁃ners，Global Automotive Forum，after rapid growth and continuous improvement over the past 4years，has been well established and acknowledged worldwide.The following are the details ofthe executive summary of the Global Automotive Forum 2013.

Session 1：Automotive Dream，Chinese Dream——GAF 2013 Open

The 4 th Annual Global Automotive Forum（GAF2013）was held on Oct.17 th to 18 th，

2013 at the East Lake International Conference Center.More than 900 participants,inclu⁃ding senior government officials,top executives from mainstream auto groups and leading industry experts from home and abroad,gathered to discuss key issues at the core of China’s automotive industry,provoke in⁃depth thought and broach constructive ideas for shaping the future of the automotive industry.

The theme for the GAF2013 is The Future Development of the Automotive Industry—Target·Strategy·Implementation and panelists Will have dialogue and discussions on topics including Urbanization and the automotive industry，Opportunities and challenges outside China，Finan-cing services for furthering the development of the automotive industry,Attracting,retaining and nurturing global talent，An insight into Chinese consumers and etc.helping to introduce per⁃spectives and insights into the global automotive industry and the path for future development.

Mr.Wang Ruixiang,Chairman of China Machinery Industry Federation,expressed that the automotive industry is an important symbol of social development and progress of science and technology.The annual production and sales in 2012 reached 19.27million units and 19.3million units respectively,accounting for a quarter of the global automotive industry.By the end of 2012,the number of cars owned increased to 120 million units,representing 10%of the total global volume.

He also said that while China's automotive industry has made great strides，compared withdeveloped countries in the world，there remains a big disparity due to the lack of domestic inno⁃vation and imperfect supply chain，especially in the technology of core components.Thesesconflict between the market and other sectors including energy consumption pressure，resourcesconsumption，traffic condition and environmental protection prevents us from building a strongindustry with globally recognized brands.

Building a stronger country by developing core industries such as the automotive industry ispart of the Chinese Dream，and is the driving force pushing forward the development of globalautomotive industry.The realization of the dream calls for entering into the foreign auto market，sharing global resources and cooperating with auto enterprises around the world.

According to Mr.Wang Xia，Chairman of CCPIT Automotive Committee，as a symbol ofindustrial civilization，the vehicle is changing our lives and society.Despite its difficulties theautomotive industry has continued to grow and the volume of annual production is the highest inthe world.New problems continue to raise such as issues on safety，energy consumption andenvironmental protection which are being addressed in all countries with an automotive industry，without exception.

He also said that although China’s automotive industry has become the engine for develop⁃ment of the global automotive industry，the enormous challenges and problems should gain glob⁃al attention.The solutions to these problems not only concern the development of China’s auto⁃motive industry but also impact the global automotive industry.

We should not only place more efforts on product technology and marketing，but also re⁃main concerned about the impact on the environment and our well beings.We must be activeparticipants and plan ahead to avoid to heavy urbanization issues such as pollution.

Mr.Cheng Hong，Vice Editor⁃in⁃Chief of CCTV，commented that the Automotive Dreamis a Chinese Dream.The automotive industry is a capital⁃intensive and technology⁃intensive in⁃dustry，which means the scale of auto companies can easily be in the tens of billions yuan.Theautomotive industry has made a great contribution to the growth of related industries promotingthe rapid development of the state economy.China has become the largest producer of vehiclesand globalization and urbanization have become the twin engines for China making the Automo⁃tive Dream the high⁃speed Chinese Dream.

Mr.Ruan Chengfa，Vice Secretary of Hubei Provincial Party Committee and Secretary ofWuhan Municipal Party Committee，gave great affirmation to this year’s forum，“This forumgathers the global elite of automotive industry and the discussions here will surely promote devel⁃opment and innovation in the industry.”He also said，“Wuhan is a city with a dream for astrong automotive industry.From Wuhan Zhongnan Automobile Factory’s being founded in1960’s to the first car of Dongfeng Citroen factory coming out，more than half a century has pas⁃sed and Wuhan has been a large part of the witnessed historical process of China’s automotive in⁃dustry growth，innovation and reform.”

Mr.Ruan Chengfa said we want to focus on the long term.Wuhan has a solid foundationand unique advantages to seize the opportunities within the global automotive industry to realizethe Automotive Dream.”

Session 2：Strategy Is the key，Choice Is the Aim

—Defining Its Future Role in China’s Economy and Global Auto Industry.

The Fourth Annual Global Automotive Forum was opened with the first topic：China's Auto⁃motive Industry：Its Future Role in China’s Economy and the Global Automotive Industry as thekey issue that was brought to the attention of all delegates.

The brain storming session that occurred after the session involved both members of the pan⁃el and audience manners where both sections discussed issues relating to developing a new road⁃map in term of business model innovation for China’s automotive industry.

It has been exactly sixty years since Chairman Mao sat down and wrote the logo for China’sfirst automotive manufacturer，the aptly named First Automotive Works.Since the inception ofFAW and other automakers within China，the automotive industry has experienced a rapid trans⁃formation from being a zero car industry country to being a weak backwater market to developinginto the biggest automotive market in the world，during this period，the Automotive Dream to a⁃rose within China.

2013 marks the 60th anniversary for First Automotive Works as well as the Chinese automo⁃tive industry itself.This year will also see the 30th anniversary of the first Santana sedan assem⁃bled by Shanghai Automobile Industry Corporation，the first joint venture passenger vehicle pro⁃duced in China and also the creation of the first expressway in China.Over the past three dec⁃ades China has shifted from the so called Bicycle Kingdom into the Auto Kingdom with lightingspeed.China now ranks first in the world in terms of annual production and sales from 2009 to2012 successively with the volume of vehicles reaching over 120 million units，becoming thesecond largest auto country in the world.

However，in 2013 the automotive industry is immersed in difficult issues due to the wide⁃range disclosure of product quality and safety risks which were aired during China’s annual Con⁃sumer Day on March 15.Consumers were made aware of the long⁃existing problems in the auto⁃motive sector such as poor quality materials and engineering issues.Unfortunately，all the is⁃sues revealed were just the tip of the iceberg for domestic Chinese brands.

Faced with new development guidelines from the Chinese government，no matter if it’s ajoint venture enterprise or a domestic Chinese automotive company，both are tasked with theneed to redesign their strategy and rethink the following questions：

①How to relocate and do business in the Chinese automotive market？

②What is the role of China in global automotive industry in the long run？

③What is the advantage and disadvantage of China within the global market？

Five senior executives from major automotive groups，including Mr.Zhu Fushou，theGeneral Manager of Dongfeng Motor Corporation，Mr.Zeng Qinghong，President of GuangzhouAutomobile Group，Mr.Amedeo Felisa，CEO of Ferrari S.P.A，Mr.Zhou Langhui，VicePresident of SAIC Motor Corporation and Mr.Fumihiko Ike，Chairman and Representative Di⁃rector of Honda Motor Co.，Ltd.exchanged ideas on the above topics and exchanged opinionswith each other and the audience.

Mr.Zhu Fushou，participating in his third year at GAF，was quoted as saying，“China’sentry into the era of strategy and increased opportunity arouses our sense of mission and responsi⁃bility.Industry experts believe that the automotive industry will usher in a second‘Golden Era’of rapid growth，but I incline towards those who see the issue dialectically，actually，if weseize the opportunity，we can make it，otherwise，we are out.”

Three major issues are set to hinder China’s automotive industry future path of development，these are：

①The strategic stalemate between foreign brands and local brands will not change in theshort term.

②The determination of Chinese enterprises to move towards the internationalizationprocess is irreversible and the road is far from being smooth.

③Furthermore，the contradictions between rigid demand for cars market and sustainabledevelopment of energy，transportation，environmental concerns are high on the agenda for cur⁃rent social issues.

Mr.Zhu Fushou was to keen to emphasize，the correct handling of the above three kindsof issues are how we will handle the relationship between the domestic market and internationalmarkets.Among them，the domestic market is the central market，and the international marketis a strategic choice，“Both of the two sides need to be focused on，but we must grasp themboth.”

Mr.Zeng Qinghong，President of GAC Group，advised on his own self developed theoryof“Three Accelerations and Four Leaps”on what Chinese automakers should do in the period ofstrategic opportunity.Firstly，Mr.Zeng said companies should speed up their own independ⁃ent innovation ability promotion，especially the key components and core technology break⁃throughs.Secondly，companies should speed up the integration and reorganization.Thirdly，companies should accelerate the adjustment of economic structure，especially the industrial lay⁃out adjustment.While the 4 leaps include：Transformation and upgrading from pure manufac⁃ture to increased R＆D，leaping from pure production base to industrial base，leaping from assetmanagement to capital operation，leaping from product management to brand management.

In addition，Ferrari CEO Mr.Amedeo Felisa described the contributions having beenmade by him for constant innovation for vehicle structure and design；Shanghai Automotive In⁃dustry Group Vice President Mr.Zhou Langhui made a deeper analysis of what Chinese compa⁃nies face and need to do to gain further breakthroughs in China’s automotive industry，such asthe contradiction between rapid growth of car ownership and insufficient infrastructure within cit⁃ies，the higher customer demand for product safety，environmental protection，in⁃car intelli⁃gence and vehicle individualization，and the contradiction between cars and environmental con⁃cerns etc.Mr.Fumihiko Ike，Chairman and Representative Director of Honda Motor Co.Ltd.，offered some suggestions on how to take a good advantage of better technology to promotethe sustainable development of the global automotive industry.

Session 3：Helping Automotive Manufacturers Going Out

On the first day of the Global Automotive Forum 2013，distinguished guests from govern⁃ment，financial institutions and various automotive⁃related enterprises from both within Chinaand abroad gathered to discuss the current hot topics of overseas investment and equity coopera⁃tion to look for a new path for the future automotive industry.

Thirty years ago it is clear that there is a huge gap between the Chinese and internationalautomotive companies in terms of concept，technology，management and product levels.China’s automotive industry has pushed ahead with the introduction of overseas capital into themarket which has helped China develop an international automotive market ranked first in termsof annual sales and production.Now，an increasing number of Chinese automotive enterprisesare looking to invest overseas and became the shareholders within multinational auto companies.The question on many CEOs and managers’minds is“to stay in China and strengthen the domes⁃tic market or go international and gain greater sales.”

Government：Support enterprises to Going Out

As the host of this seminar，Mr.Jack Perkowski，founder and Chairman of JFP HoldingsLtd.，shared with us several acquisition cases between SAIC and GM，Geely and Volvo，aswell as Dongfeng and PSA，which put the Chinese automotive company under the spotlight oncemore.There was no doubt that enterprises should pay close attention to market reactions andfeedback，but they should also listen to government voices.

Mr.Chen Lin，the Commercial Counselor for Overseas Investment and Economic Coopera⁃tion Department of the Ministry of Commerce，was invited to share the policies on overseas in⁃vestment；he was quoted as saying：“The Ministry of Commerce is happy to see enterprises in⁃vest overseas and will keep providing favorable support and strong service to those who willing toestablish multinational business，which is also a meaningful step to further open up to the out⁃side world.”

Moreover，Mr.Chen Lin proposed the principle guidelines that the government only con⁃siders capital security，impact on bilateral relations and a third party interest other than corpora⁃tion concerns such as acquisition plan，investment fund，acquisition process and so on，whichwill undoubtedly create favorable external conditions for domestic firms to carry out overseas bus⁃iness activities.

Enterprises：Going out needs clear targets and strategies

Going abroad is an undeniable and important milestone in the development of China’s auto⁃motive industry.Mr.Jack Hsin⁃Fa Wu，President of Dongfeng Yulong Motor Co.，Ltd.，ex⁃pressed his opinion on how to obtain technology and platform needs with lower cost.He com⁃mented：“Auto companies heading into overseas markets have a clear target and strategy.En⁃terprises must sort out what the target and strategy is.No matter whether sales expansion modeor a resource gathering mode，all should be adapted to best suit the company’s needs and re⁃quirements from the global market.

Mr.Wu based his comments on his past experience of managing Chinese enterprises fundswhilst undertaking going out activities on their behalf.Mr.Wu took the microphone and actedas a doctor，prescribing three‘medications’in prescription form for the successful integrationinto global markets.

Mr.Wu's first prescription is capital operation，because without capital it is difficult tooperate and companies may find themselves backed into a corner.The second one is a talent ex⁃change and integration.Harmonious consistent talent cooperation is the key to going out.Thirdone is strengthening the transparency of the enterprise.Only in a competitive environment canenterprises truly become strong.

The President of Asia Pacific of Lear Company，Mr.Jay Kunkel，also agreed：“Goingout needs a clear target and strategy.”Mr.Kunkel went onto say：“First we need to carry outdue diligence activities.Prior to any potential merger and acquisition，we need to do a full in⁃vestigation to know as much as possible about the acquisition target.Post M＆A，we need toplan for a better level of integration such as the technical integration into the mother companyand also combining the two companies strategies into one.”

For Financial Institutions：Going out has become a big trend

Compared with the government and enterprises，financial institutions seem to have greaterinterest in the funds of Chinese enterprises going out to assist in corporate mergers and acquisi⁃tions.They are also more optimistic about it.

Ellis B.Chu，Director，Head of China M＆A of Bank of America Merrill Lynch，USA，made a meticulous observation on China automobile’s Going out making mergers and acquisi⁃tions.He was quoted as saying：“From 2006 and 2007，Chinese enterprises going out becomea big trend.They gradually did not want to cooperate with foreign enterprises only in China orjust develop their market in China.They hoped to develop their sales market all around theworld.This trend has become more and more passionate over the past few years.”

He followed up his remarks by saying：“In the early stages of cooperation between Chineseand Western automotive enterprises，both parties felt very suited to each other，then they en⁃tered into a period of share swapping developing even closer ties.”This is mainly because Chi⁃nese enterprises wanted to verify their own value and prove they are the market leader in China.It shows that the internationalization of Chinese enterprises is still ongoing and their aspirationsto enter the global financial system that funds of Chinese enterprises going out gives global mar⁃kets a signal，eventually it will be more helpful for Chinese enterprises to list in not only IPObut also on different global exchanges.”

Session 4：Urbanization Boosts the Sustainable Development ofthe Automobile

Economists have already predicted the most important two events for human beings in thenear future：one is the rapid urbanization within China；the other is a period of high⁃tech devel⁃opment in the United States.This is enough to prove that the urbanization is important forChina’s future development，but at the same time，the urbanization process comes with a seriesof complex social process，which has brought new opportunities as well as challenges for the au⁃tomotive industry.

As both members of society and the automotive world，several questions are at the forefrontof our daily lives：How do we avoid a repeat of the age⁃old urban diseases that have appearedelsewhere in the world？How to deal with harmonious development as mandated by the govern⁃ment，as well as meeting the requirements as set by industry and society？How to seek the mosteffective methods of sustainable development and how can the automotive industry survive insuch an environment.

Tackling such questions is the main task of the Global Automotive Forum 2013 session enti⁃tled：Urbanization and the Automotive industry：Sustainable Development thematic discussion inthe morning of October 17th.

Mr.Li Zuoqing，Vice Secretary⁃General，city of Wuhan，Mr.Ren Yong，Vice Presi⁃dent of Dongfeng Motor Co.，Ltd.（DFL）and Deputy Managing Director of Dongfeng Nissan，Mr.Wang Ning，General Manager of Iveco China Operation，Mr.James（Jim）Thomas，May⁃or of Hinesville，Georgia of USA，Prof.Peter Wells，Professor of Automobility at Cardiff Bus⁃iness School，U.K.and Mr.Ashvin Chotai，Managing Director，Intelligence Automotive A⁃sia，U.K.had in⁃depth discussions from multiple perspectives and exchanged opinions andviews on sustainable development of cities and the automotive industry.

Urbanization brings a 40 million in the automotive market

Mr.Li Zuoqing remarked that：“The process of urbanization is an important goal forChina’s economic and social development.It is also an important driving force in stimulating do⁃mestic demand.The urbanization of the automotive industry，especially the automotive industryof China has great vitality and broad prospects for development.”

He analyzed：“The future automotive market in China alone is hoping to achieve an annualoutput of 40 million units per year is not boasting，in fact it is relative to the population of 1.3billion and 120 million units of car ownership.There is no doubt that it will provide a huge mar⁃ket for automotive industry with the constant improvement of China’s urbanization and rural infra⁃structure.

Mr.Ren Yong made an accurate analysis regarding the market potential.“Although thespeed of growth of suburban market is faster than that of the big cities，the number of carsowned is still small.Compared to those saturated markets in certain cities where the number ofcars owned by per thousand people stays between 50 and 70，although that has exceeded 100 inBeijing，the suburban market is a promising market with great future potential.

Rational planning and support the future development of automobile

All the attendees are happy about the growth rates in urban automotive markets，at thesame time，automotive brands should make a better plan to adapt to the transition and develop⁃ment of the future automotive industry.

Mayor James Thomas remarked that economic growth is only a small part of the societal de⁃velopment driven by the automotive industry.Rational planning of the automotive industry willbecome the driving force for the human society as a whole.Mayor Thomas was quoted as saying，“We should guarantee all the positive factors，such as good infrastructure for the future develop⁃ment of automotive industry.

Urbanization is becoming a major trend for the future automotive market，hence the needfor long⁃term policies that last for 50 years or longer.These policies should be carefully formula⁃ted and have strict inspection procedures to ensure that the policies are properly implemented atall levels.

According to Mr.Ashvin Chotai，the ratio of urbanization will run up to 25 percent andthe number of urban citizens will reach 800 million，which means 85 percent of the car industrygrowth comes from the small and medium⁃sized cities，whilst only 15 percent of the increasecame from the big cities in the next decade.

Session 5：Vision for 2030—The Popularity of Unmanned CarsWill Be No Longer a Dream

On October 17th，a session was held to discuss the advancement of the car under the titleof Future of Cars and the Automotive Industry：Vision for 2030.Delegates from world famous au⁃tomotive suppliers such as Bosch，Continental，Delphi，Magna and Pinnacle engine businessrepresentatives gathered together to forecast the future development trends within the automotiveindustry.

With the development of Google’s autonomous vehicle resulted in global attention，thistechnology has attracted great attention in the automotive industry，especially as Google is asoftware company rather than hardware or even an automotive focused company.

When talking over the possibilities for automotive technology in 2030，all the participantsmentioned the unmanned vehicle.Mr.Chen Yu Dong，President of Bosch China InvestmentCo.Ltd.was quoted as saying：“Unmanned vehicles are a new but rapidly growing develop⁃ment trend for the future.Currently more than 90%of road traffic incidents were caused bydriver’s error.The ultimate goal of car safety is autonomous driving and to eliminate human in⁃tervention.”

“We can be sure that the cars in 2030 are currently unimaginable.Existing technologycan at least allow us to dream of realizing the automation of driving before 2030.In the futurewe can play games when driving cars，which will be very safe，”Dr.Ralf Cramer said，mem⁃ber of the Executive Board of Continental AG，President and CEO of Continental China.

In order to realize autonomous driving dreams and greater safety performance，major partssuppliers are stepping up the research and development work.“Bosch has received the Germangovernment’s approval for an unmanned test.We’ll continue to develop new products.Sometechnologies and trends from this process will provide more convenience for safe driving，for ex⁃ample products avoiding collision and pedestrian injury will be used in more models，”Mr.Chen Yudong said.Dr.Ralf Cramer revealed that thousands of personnel at Continental Chinaare dedicated to the research of safe driving support systems，with these systems eventuallyforming the important foundation for future unmanned driving vehicles.

Mr.Frank O’Brien，Executive Vice President for Asia at Magna International Inc.wasquoted as saying：“What makes the automotive industry worried is that unmanned driving tech⁃nology not only involves the development of security technology but also is related to the govern⁃ment legal norms.If legal improvement is not synchronous，the application of unmanned driv⁃ing technology will be affected.”Technology is developing very fast，but the regulations areslow，which makes technology limited.I believe we will realize unmanned driving in few years，but will it be allowed by the government？”“What kind of automation will be allowed by govern⁃ment？This is a problem.”

Mr.Jeffrey J.Owens，Chief Technology Officer＆Executive Vice president of Delphli，said：“The trend of future development is automation.In three U.S.states，including Nevad⁃a，self driving car test regulations have been passed.Recently，European governments have al⁃so begun to allow automatic driving vehicle testing on expressway.”The active support of thegovernment is especially helpful in accelerating the application of unmanned technology with e⁃ventual roll out into mass market vehicles.

Electrification and connectivity will become an important trend of future vehicle develop⁃ment besides automation.“There is a long way before we realize the ultimate goal.In my opin⁃ion，the proportion of electric cars sold every year will grow bigger by 2013 despite small num⁃ber at present.Once the crucial technology barrier of increasing the battery density is con⁃quered，less and lighter battery can be produced and mass production can be realized，”saidMr.Chen Yudong.

“Power system is the field where big changes will happen in the future.We believe thatincluding electric cars，bio fuel，and fuel cell，all of these will realize the optimization，”Mr.Frank O’Brien said.

“Speaking of new energy cars，situations are diversified in different countries.In Germa⁃ny，many institutions are carrying out research into new energy vehicles.This work is a bigchallenge and calls for lots of engineers.I know little about China，but I think big cities，suchas Beijing and Shanghai can be pilot markets to popularize electric cars，”said Dr.Ralf Cra⁃mer.

Automotive connectivity technology should be applied in wider range to produce autonomousvehicles to guarantee higher levels of safety.Mr.Jeffrey J.Owens remarked that with the de⁃velopment of electronic technology，the method of information processing can be improved.Bet⁃ter information managing technology will be applied to back up the system possibly comprised of200 computers with remote information processing technology which will be used between carsand infrastructure by 2030 allowing for reduced accidents and eventually a lower death rate onthe roads.

Session 6：Grasp the Opportunity and Cooperate to Win⁃win

—Value⁃added service ushers in automotive aftermarket

In 1985，77 percent of automotive dealers profit came from new car sales；by 1991，thisnumber had dropped to 25 percent over 6 years from 1985.

The enterprises that concentrate on one service will be in face of only one problem which is itsfantastic amazing profits.

—Henry Ford，Funder of Ford Motor Company

Faced with a growth number of car ownership，profits from new vehicle sales have obvious⁃ly become thinner.Faced with big pressure to find a way out and relieving stress，auto dealersare transferring their thoughts into the aftermarket.

Presided over by the iautos network CEO，Ms.Ma Xiaowei，the GAF2013’s brainstorm⁃ing session for the automotive aftermarket was held in the afternoon on October 17th.Mr.PangQinghua，Chairman and General Manager，Pang Da Automobile Trade Co.，Ltd.，Mr.Jo⁃seph Vitale Jr，Global Automotive Sector Leader，Deloittee Touche Tohmatsu Limited.，Mr.Daesung Yoon，Executive Managing Director，Korea Automobile Importers＆Distributors As⁃sociation（KAIDA）and Mr.Patrick Katenkamp，Global COO of Incadea described their planand cognition for the automotive aftermarket from different perspectives.

Automobile dealers are the connection link between automobile enterprises and consumers.Customer service doesn’t only start from the distributors；it is also put into practice by dealers.Mr.Pang Qinghua said：“After ten years extreme growth，dealers are now at a crossroads.Tosurvive dealers have to face a stark reality.They should be motivated to innovate their currentservice levels and auto makers should strengthen their brands.

As distributors，we should have motivation to make a brand of customer service.That is tosay we should sell the cars and customer service separately when approaching customers at thesame time，which is an outstanding feature of the market nowadays.Pang Da Group has re⁃searched its own eight value⁃added services since 2012.These eight services include：strongaccessories range，light⁃maintenance schedules，second⁃hand vehicles，roadside assistance，warranty and so on.

After⁃sales service has become the vital part of the value chain for cars sales with thedealer’s gradual growth from the innovation of service brand to independent innovation of value⁃added services.For the dealers the essence of the automotive aftermarket is realizing value⁃add⁃ed service.Dealers should no longer depend on the rebate from manufacturers to boost profits；they can maximize profits based on their own service offerings.

Mr.Joseph Vitale Jr.introduced the concept that only the service industry has limitlessprofit space in the automotive industry，especially as new cars already have low profit margins.In the most important research on experiences of being served，a 1 percent increase in the morethan expected experience will promote buying desire by 37 percent.That is why 76 percent com⁃panies express that the key point of car sales profits is still the service.

Thesis 1：Win⁃win cooperation.Both automobile distributors and makers should payclose attention to the automotive aftermarket.Mr.Daesung Yoon，Executive Managing Direc⁃tor of Korea Automobile Importers＆Distributors Association（KAIDA），shared his understand⁃ing of Korean and Chinese automotive aftermarket with the participants.

The automotive aftermarket is playing a more and more important role within the automotiveindustry，mostly attributed to its strong profit ability.Meanwhile，lots of auto brands are shift⁃ing their focus to the aftermarket，which also affects the sales volume and structure of the auto⁃motive market to some extent.

The automotive aftermarket is undergoing an important historic period where both challengesand opportunities coexist.Mr.Daesung Yoon took the Korean automotive market as an exampleto describe the features of advanced automotive aftermarket.He remarked that the Korean auto⁃motive aftermarket is based on OEM orders rather than the dealer and is more diversified.Ow⁃ing to the rapid replacement of vehicles，consumers prefer new cars to second⁃hand vehicles，which makes for a comparatively small second⁃hand vehicle market.Moreover，market demandfor IT products is an expanding attribute to the development of information markets which is thenew trend for the aftermarket.In a word，service and products should be market⁃oriented andmeeting the requirements of younger consumers so as to make them better understand the automo⁃tive industry.

Thesis 2：Seizing opportunities.Ecommerce is gradually changing consumer’s consump⁃tion habits and way of life.Mr.Patrick Katenkamp cited an example to explain how IT influ⁃ences the development of the automotive industry.According to a study into sales channelschoice，consumers generally spend lots of their time on the Internet to collect information abouttheir prospective buys but only a few minutes in the showroom.We found that online content hasdoubled year after year，which has urged us to make good use of IT software，and create moreinformation in a bid to better manage customer relationship，optimize enterprise resources andprotect intellectual property.

Ecommerce is changing the traditional marketing channel as well as people’s consumptionhabits and concepts via its proprietary edge.As part of services，ecommerce is playing a moreand more important role in the automotive aftermarket.

Session 7：Overseas Competition Makes China a Powerful Forcein the Automotive Industry，Chinese Enterprises Need to IntegrateGlobal Resources to Become Globally Strong

In 2009，China had became the world’s largest vehicle consumption market；however，theinfluence of Chinese enterprise have is still extremely weak on the global market due to the smallvolume of exports from China.It has therefore become strategically important and imminent forChinese automotive manufacturers to clear the obstacles and participate head to head in the glob⁃al market.

Key questions needed to be asked before a road map can be developed and put into action：In which areas do Chinese companies have a sustainable global competitive advantage？What’sthe new mode and strategy for Chinese automotive enterprises when entering global markets？Howto build up risk management mechanisms？The questions above regarding overseas competitionrequest solutions from industrial elites attending the Global Automotive Forum 2013.Judgingfrom the development trend of Chinese automotive enterprises and global economy，being cau⁃tiously optimistic has become the common attitude towards global market raised by the partici⁃pants at this year’s Global Automotive Forum.

A session entitled：Chinese automotive companies：Opportunities and challenges outsideChina was held in the afternoon on Oct.17th.Mr.Miu Xuezhong，Vice Chairman and Gen⁃eral Manager of GAC GONOW，Mr.Wang Dazong，Chairman of Phoenix Capital ManagementInc.and Chairman of U.S.China Automotive Exchange，Ms.Lori Blaker，President andCEO of TTi Global and Mr.Bill Russo，Founder and President of Synergistics Limited and aSenior Advisor with Booz＆Company came together to discuss the issues on overseas competi⁃tion.

Going out is the mission of Chinese enterprises

The consensus has become that participating in overseas competition is the necessary pathfor Chinese automotive manufacturers that are undergoing the transition from a‘car country’toan‘automotive leader’. “This should be our mission，”said by Mr.Miu Xuezhong，Vice Chairman and GeneralManager of GAC GONOW，a Chinese domestic brand.It is undeniable that China has becomethe largest vehicle producer.However，there is a long way beyond powerful nation.

The ratio of automotive exports is a critical indicator for judging a country’s automotive in⁃dustry.Developed countries including European countries，America，Japan and Korea，havean export proportion ranging from 50%to 80%.Even Brazil，for example，exports 20%of itstotal automotive produce，India exports 13%.China’s automotive exports breached 1 million forthe first time in 2012，accounting for just 5%of total sales that year.

Mr.Wang Dazong explained the necessity of going abroad from another dimension and putforward his thoughts that it has been 13 years since the going out strategy was raised by the cen⁃tral government.According to the statistics released by the Ministry of Commerce，overseas in⁃vestment has reached 90 billion dollars.However，as the second largest economy，our accumu⁃lated investment is comparatively small accounting for only 2.2%of the total foreign investment.Judging from the overall investment，we are still at the primary stage of internationalization aswell as lack of successful investment cases.

Mr.Bill Russo remarked that the automotive industry is too fragmented in China，whencompared to the U.S.market，which is comparatively concentrated in a“Motor City”.Thereare also a lot of self⁃styled“Motor Cities”within China which are actually the manufacturing ba⁃ses，located in different cities and counties all over the nation，further fragmenting the automo⁃tive industry into tiny pieces.Furthermore，internal competition between Chinese self⁃devel⁃oped brands is very fierce and the competitive level should be upgraded.

The integration of global resources

“As a brand with only decades’history，we should apply a competitive differentiationstrategy in competing with global brands with hundreds years history.”Mr.Miu Xuezhong wenton to express that self⁃developed brand ought to undertake the mission of building a powerful na⁃tion by improving the automotive industry.Secondly，persistence is required during the proce⁃dure entering into overseas markets.We should never withdraw easily and gain valuable experi⁃ence from the barriers that are put before us.Lastly，we should also use a clear strategy and ex⁃ploit markets of developing countries before entering into some developed countries to gain expe⁃rience and understanding.(www.xing528.com)

Mr.Wang Dazong expressed his opinions in common that before going out，enterprisesshould firstly have a clear understanding of what they hope to achieve along with their aims.Secondly，comprehensive management mechanisms should be established and local talent shouldbe recruited to improve the localization regardless of skin color or nationality.Thirdly，makegood use of overseas talents，which are the most valuable human resources especially when itcomes to understanding the demand and requirements in your local market.Finally，coopera⁃ting with a solid partner in the intended market is critical for succeeding no matter where you arein the world.

Mr.Bill Russo also commented that automakers ought to spare no effort to improve theirproduct quality；he went on to express that auto manufacturers should be clear with their brandvalue and positioning.Most of the automakers are unhappy to find low price as the only uniqueselling point of their product when compared with other brands.Chinese automakers are actuallystruggling in the brand positioning without knowing the true value of their product and how to at⁃tract consumers through branding efforts.

Actually，the Chinese brands are doing good job in recent years on the down side；howev⁃er，foreign automotive brands are doing even better，attracting more consumers from native autobrands and putting up great hurdles for Chinese automotive brands.Therefore，self⁃developedbrand should gain a foothold at domestic market at first，and then compete overseas.

Ms.Lori Blaker commented that the training course carried out by his company is an im⁃portant program to cultivate leaders for Chinese enterprises to enter certain markets，such as themid⁃east.Service can be optimized and standardized afterwards，which is bound to improve theproduct capacity and quality as well as serve the local consumers.

Session 8：Financial Innovation：Financing Services for Furthe⁃ring the Development of the Automotive Industry

Experts from the financial sector shared the meaning of cross industry integration for tradi⁃tional automotive industry together in the GAF2013’s sub forum，Financial Innovation：Finan-cing services for furthering the development of the automotive industry.Dr.Patrick P.Steine⁃mann，Managing Director，Co⁃Head Asia Industrial Investment Banking of Bank of AmericaMerrill Lynch moderated the plenary session.

The automotive industry has always been a capital and technology intensive industry.Funds of course play a key role in supporting both enterprise investment and consumption de⁃mand.

Over the course of the past decade，the investment boom was supported by state⁃ownedbanks providing loans to local government and state⁃owned enterprises，which contrasts againstoverseas capital which has gone to wholly owned foreign operations within China.It will be thetrend in the future that automotive industry seeks financial support through highly mature auto⁃mobile finance organizations.

Lord Davidson，Opposition Spokesman in Respect of HM Treasury（Ministry of Finance）Matters in the House of Lords as well as Shadow Advocate General in the United Kingdom said：“With new ideas coming to the traditional automotive industry from the development of the IT in⁃dustry，it is expected that we will have autonomous cars in the future.Previously the automo⁃tive industry maintained a gradual development model，now it begins to step into the stage of de⁃velopment by leaps and bounds with the introduction of new technologies from other industries.”

Compared with China，the U.K′.S domestic market is not big，but U.K.is a leader in thedevelopment and innovation of technology as well as boasting an advanced financial field，whichitself has considerable significance for the China’s automotive industry.

CEO of VW China Financing Company，Mr.Joern Kurzrock，on his Chinese“practicalexperience”made a detailed account of the rapid development of the Chinese domestic automo⁃tive financial market and a sustainable growth of 30%to 40%for several years with a variety offinancial products for consumers.

Chairman of JFP Holdings，Mr.Jack Perkowski recalled his previous work experience atthe Wall Street during the 1970’s and 1980’s：“In the early 1990’s of China the finance marketsgradually opened and Shanghai and Shenzhen stock markets were established.Four major state⁃owned banks began to increase lending to small and medium enterprises.The car industry had ahigh demand for capital，which gave rise to the rapid development of automotive industry and anincrease in new products research.”

“As a consumption product with long life cycle，the automobile is in need of financialservice in different aspects including dealer financing，consumer credit，second⁃hand cars，au⁃to insurance and so on，”said Mr.Albert Zsolt Farkas，General Manager of JAC Credit.

Mr.Rock Shi，Executive Director and member of Investment Committee，Bohai IndustrialInvestment Fund Management Co.，Ltd.，was quoted as saying，“The Chinese automotivemarket possesses unique characteristics when compared with other worldwide markets.Twoyears ago，many investors were not optimistic about the China’s automotive industry at the DubaiInvestment Summit，believing that China’s automotive industry will maintain a relatively lowgrowth rate over the next 5 to 10 years.However，the market boom unbelievably attributed toits complicated and changeable economic environment.To understand the China’s automotivemarket，you need to localize and implement a strong financial business plan.

The panel guests reached consensus on several issues as follows：The appreciation of RMBwill increase the pace for Chinese enterprises to participate in overseas investment；auto finan⁃cial market within China possesses a huge potential market that is yet to be fully opened，thechange of consumption culture will help to boost the auto financial market.International venturecapital and private equity companies，who are optimistic about the Chinese market，are likelyto enter the domestic market that long for capital and profit.The state⁃owned banks and com⁃mercial banks are the main force in the automotive finance sector at present.However，an autofinance based on enterprises and distributors is bound to be established in the near future.

Session 9：Methods for Chinese Domestic Brands to BrightenTheir Future

The development of China’s automotive industry for 60 years is a implementation of buildinga powerful nation by Chinese self⁃developed brand.

The revolution has not yet succeeded.Work hard，comrades！

—Sun Yat-Sen

With the maturation of self⁃developed brands and the expansion of business scale，competi⁃tion has grown fierce in the domestic Chinese automotive market.Problems exist in severalfields for Chinese automakers in terms of R＆D，branding，service levels，market position andstrategy.Enhancing competitiveness is of great importance not only for the survival and develop⁃ment of Chinese auto brands，but also for the operation of the national economy.

The plenary roundtable of the Global Automotive Forum 2013 was held in the morning ofOctober 18th was hosted by Mr.Li Jie，Vice Director of Marketing Management Department ofFirst Automobile Works.Panelists including Mr.Wang Xigao，Chairman of JMC Group，Mr.Guo Qian，Chairman and CEO of Qoros Auto Co.，Ltd.，Mr.Yuan Hongming，GeneralManager and Deputy Secretary of the Party Committee of Shaanxi Automobile Holding Group andMr.Xu Sitao，Chief Representative of Economist Group China，exchanged ideas regardingChinese self⁃developed brands and brought forward constructive suggestions from both the paneland the audience.

China has become the largest automobile producer and consumer in the world after 10⁃yearexplosive growth with the total production and sales likely reaching over 20 million units.Self⁃developed brands continue to be in a weak position as whole，foreign brands began turning tothe third and fourth⁃tier and continue to bring in increasingly cheaper products which is directlythreatening the survival of self⁃developed brands.Panelists delivered suggestions on how to stemthe flow and hopefully reverse the process of falling market share.

Self⁃development and cooperation

Speaker：Mr.Wang Xigao，Chairman of JMC Group Enterprises

In order to absorb advanced technology introduced from developed countries via diversifiedmethods，such as imitation and improvement，cultivating the ability of self⁃development and in⁃novation.Attention should be paid to the critical step of improvement rather than imitationthrough copying，so as to find out a development way suitable for both the home market and in⁃ternational market.Mr.Wang Xigao took the JMC Group’s history to describe the difficultiesthe company once experienced but eventually overcame.JMC Group started from tiny workshopand developed into a giant enterprise with 3000 researchers and designers experienced a strenu⁃ous growth pattern which saw it move from being an imitator and then becoming an independentcar company with a product range of solid，self⁃designed vehicles.

Recruiting an international team

Speaker：Mr.Guo Qian，Chairman and CEO of Qoros Auto Co.，Ltd.

The Chinese automotive industry is far beyond internationalization according to Mr.GuoQian，who pointed out the way to narrow the gap between Chinese and global automotive indus⁃try to achieve the goal of internationalization.He went on to express that the China’s automotiveindustry has to undergo four steps.The first step is to master a core technology，for examplebody assembling and transmission development.The second step is to establish integrationmechanisms.The third step is to transfer the technologies into the platform.The forth step is tobuild up brand recognition.As for Qoros Auto，they continually move to recruit an internationalteam comprised by industrial elites and accomplish the goal of internationalization directly.Mr.Guo Qian commented that their Qoros brand vehicle passed the E⁃NCAP with stricter regulationreceived a five stars result，ranking first.

Existence rationality

Speaker：Mr.Yuan Hongming，General Manager and Deputy Secretary of theParty Committee of Shaanxi Automobile Holding Group

Compared to passenger vehicle，commercial vehicles have left the Chinese market and areactively competing with global brands head to head in various international markets such as Afri⁃ca，the Middle East，and Central Asia etc.Whilst passenger cars are purely individual con⁃sumption，commercial vehicles create value for the buyers through their daily work；they addvalue to the company.That explains what Mr.Yuan Hongming stressed that it is reasonable forheavy trucks to gain market share in international markets whilst China’s passenger cars lag farbehind.The free market is the sole criterion for testing the claims of manufacturers.It is inter⁃esting to note that passenger cars are stuck behind all foreign brands yet Chinese commercial ve⁃hicle are performing well in overseas markets.

New energy and the introduction of smart cars are significantly important for the commercialvehicle market.‘Smart’heavy truck differs from passenger cars by focus on the procedure of au⁃tonomous cars and meeting the requirement of customers，which also develop the whole vehicleassembling sector and component sector.Commercial vehicles are produced by solely by order，which makes for a smaller enterprise scale when compared with the passenger car market.Mr.Yuan called for uniting and reducing internal friction among commercial vehicle producers whichwould lead to a greater market.

Within the current economic environment，investment accounts for half of Chinese GDP

Speaker：Mr.Xu Sitao，Chief Representative of Economist Group China

To realize China’s automotive dream，we ultimately need to rely upon the development ofthe Chinese Dream.In the trend of future economy，independent brands should“deleverage”ifthey want to be internationalized.Four thousand billion does promote the economy of China in ashort term but bringing negative effects in the long term.Investment accounts for 35%to 40%of the Korean GDP.Only deleveraging can solve the problem which is how China makes invest⁃ment account for 35%to 40%from 50%in 5 to 10 years.

In 2013，development of the economy mainly depended on investment.At the APCEmeeting Chairman Xi Jinping declared that GDP is not everything for China.China should real⁃ize 5%to 6%growth of mid⁃term economy rather than the blind pursuit of GDP or it will lead tothe financial crisis which affected South Korea and other‘Asian Tiger Countries’in 1997.

Although a coincident solution on improving self⁃developed brands has not been concluded，panelists reached an agreement that enterprises ought to overcome difficulties themselves by self⁃development，joint venture activities，introducing global talent and further research，and alsoincreasing their competitiveness in the aftermarket.

Session 10：Breakthrough and Innovation⁃Promoting the New En⁃ergy Automobile Development Scheme

On October 18th，2013，in a session entitled：New Energy Vehicles：Accelerating Pro⁃gress，experts from the new energy field shared ideas such as technology routes，future pros⁃pects and challenges on the road ahead.

China has firmly put into practice the strategy of new energy automobile so as to alleviatethe pressure on already tight energy supplies and environment concerns，as well as promotingthe transformation and upgrading of the automotive industry and cultivating a new economicgrowth point.Recently，however，a new range of issues has arisen that has made the automo⁃tive industry，related enterprises and relevant departments confused on the future developmentof new energy automobiles.It is extremely urgent to break the deadlock and find a suitable wayforward.

Mr.Paul Ingrassia，Pulitzer Prize winner and Managing Editor of Reuters，made a com⁃prehensive comparison between the Toyota Prius and the Nissan Leaf，as well as Tesla’s electricvehicle from his own perspective and experience：“New energy automobiles can solve the con⁃tradiction between human traffic and energy and it has strong prospects for future development，”Mr.Paul Ingrassia said.

Ms.Alysha Webb，the President of Alysha Webb Production，introduced the develop⁃ment of electric vehicles in California，USA，which has so far seen the introduction of new en⁃ergy vehicles from major automotive manufactures including Toyota，Nissan，Honda，GM，Ford and other transnational automobile giants.“At present，America has built 6，800 char⁃ging stations，with new energy automobile accounting for 1%in the market，meanwhile thesales and registration quantity are also rising，”Ms.Alysha Webb said.

According to Ms.Alysha Webb，California is strict regards to energy saving and environ⁃mental protection in the United States.It makes mandatory requirements on zero emission at thecorresponding time point through legislation，“From the construction of charging infrastructure，battery recycling regulations to new energy vehicle subsidy，the government of California active⁃ly promotes the development of new energy automobiles through various acts and regulations，”Ms.Alysha Webb said.

The development of new energy automobiles in the United States has also encountered manyproblems and shortcomings，for example：the public expressed greater concern about part of theCalifornia’s companies’reliance on governmental financial support；people have expressed doubton whether the new energy automobile enterprises can continue on their path of sustainable de⁃velopment；and some have expressed dissatisfaction with the slow pace of construction of the re⁃quired support infrastructure.

Dr.Charles Kung，Vice General Manager of Coretronic Corporation，analyzed that in⁃complete infrastructure，high⁃price products and range anxiety are the three most concentratedproblems in hindering the development of new energy automobiles in the market.“We can startfrom the system scheme to solve these problems，encourage and attempt various new energy so⁃lutions，”said by Dr.Charles Kung.

In the view of Dr.Charles Kung，the Chinese government has made many beneficial at⁃tempts and initiatives to promote new energy automobiles，such as the project of“Ten Cities–Thousand Vehicles”.“This policy has brought great inspiration to Taiwan，and Taiwan is alsoconsidering introducing some policies such as encouraging increased use of public vehicles asnew energy resources，”Dr.Charles Kung said.“In addition，in Europe and Japan，the su⁃per light weight automobiles are beginning to gain traction.Low⁃speed electric tricycles havebeen accepted by consumers in the markets in Shandong，Henan and other provinces in China.We can also consider introducing the ultra lightweight car to China.”

Promoting the new energy automobile is a tedious，progressive and collaborative task.Many guests participating in the parallel session generally recognized that the government’s policysupport，enterprises’diversification strategy choice，commercialization of infrastructure andconsumers’increasing environmental protection concepts are indispensable elements，which alto⁃gether support the future development of the new energy automobiles.

Session 11：Consuming Diversification VS.New Marketing Plan

In today’s Chinese automotive market，the most rapidly changing aspect is that consumershave more and more power to effect the direction of the development of automotive industry as awhole.The product development strategy and marketing philosophy is now extremely consumer⁃centric，which will led to the success or failure of automobile companies in the Chinese market.So，how can manufacturers move to understand the Chinese consumers and innovate entirely forthem？

On October 18th 2013，a plenary session with the title of An Insight into Chinese Consumerswas held at the Global Automotive Forum 2013 with the goal of helping others to understand Chi⁃nese consumption philosophy and consumer behaviors.

Currently，the consumer trend within the China’s automotive industry is extremely clear；the consumer is willing to pay more money for an unique product.Whilst Chinese automotivemarket development has been slower than more advanced nations，from 2008 onwards，the salesincrease within the Chinese luxury car and SUV segment is more than the whole automotive mar⁃ket，with an annual growth rate reaching 32%and 70%respectively.From this we can see thatChina has already become the distribution center of luxury automotive brands.Luxury automo⁃tive companies from all over the world are working hard to improve their market share in the Chi⁃nese market.Chinese consumers have become increasingly savvy with their car purchases andwill choose product from different brands according to their own special demands.With this inmind，from product development to marking plans，what kind of strategy should be put intoplace to capture Chinese market share based on rapidly changing of consumer requirements？

Dr.Daniel Kirchert，Managing Director of Infiniti China，thought that there were manyopportunities remaining in the Chinese automotive market as the competition patterns have notyet settled down，after all who knows what a consumer will demand tomorrow，or the day after.In the luxury automobile field，Dr.Kirchert emphasized four key points regarding today’s Chi⁃nese luxury consumer：①Younger consumers；②Personality focused；③Luxury oriented；④Globalized mindset.According to the above four points，Dr.Kirchert suggested that manufac⁃turers should focus on the following areas in their product management and marketing：personali⁃ty，innovation，brightness，inter⁃connection if they are to succeed.

Previously it was seen that Chinese consumers opted for just the basic life necessities，butnow people consume for different reasons and aims.Younger consumers have more diversifieddemands，so how can we maximize and explore consumer potential？Vice General Manager Mr.Wei Wenqing from DPCA believed that precision and regionalization are becoming the key wordsat present in marketing fields.

At first，the age structure of consumers has changed considerably，with more and youngerconsumers taking the reins whilst third⁃tier cities have also increasingly become the main mar⁃ket.Second time purchases are also increasingly rapid，and have already occupied roughly 25percent of all sales.Mr.Wei indicated that with this change marketing people will have tomove their strategies from targeting first time buyers to second time buyers who are increasinglyyounger and increasingly savvy towards their purchases.

Another expert forecasted that the Chinese market is more and more important，and it willreplace America to be the biggest global economic entity within the next decade.At that time，Chinese automotive consumers will have an increasingly higher education level，a greater in⁃come，more high pressure etc.Smarter consumers will not just follow international brands，andthis give the local brands a greater chance.

Vice President of BAIC，Mr.Liang Guofeng emphasized that domestic brand automobiles，no matter what kind of change happened in the market，the first thing is doing our job well；making cars，with every process to make sure that every model is engrained with high qualitystandards.This is our basic requirement in the era of new media time and rapidly changing con⁃sumer trends where opinions and news travel faster than ever before.

Chinese consumers are now pursuing vehicles that will boost their self⁃enjoyment，conven⁃ience and certain uniqueness in their vehicle choice.Manufacturers should move to focus onthese new consumer traits and act upon them accordingly with speed.

A popular saying in 2013 is that the purchaser needs only spend six seconds when decidingon a brand，after that they will look for an alternative.It is because consumers have too muchchoice when they choose a product and have less time，so a non⁃planed purchase will happen.With this situation，the marketing plans of automotive companies should be more precise.Therefore，Autohome CEO，Mr.James Qin believed that in an age of new media，manufactur⁃ers should move to base their marketing plans on current data whilst developing new marketingstrategies to improve old strategies and develop new marketing modes to bring to automobile com⁃panies the change and challenge that is required by consumers.

Session 12：Cultivating Global Talents

In the 21st century the resource that companies lack the most is talent.At the Global Auto⁃motive Forum 2013，industry experts on the talent issue came together in Wuhan to discuss thegreatest issue companies facing in 2013.Mr.Zhou Liang，Board Director and General Manag⁃er of Nanjing Iveco Automobile Company Limited，Mr.Jay Kunkel，President of Asia PacificRegion for Lear Co.，Ms.Mary Thornton，Director of Human Resources for General MotorsChina and Ms.Vanessa Moriel，MD Asia＆Founder，Human Capital Partners（HCP）came to⁃gether to discuss the topic on how to attract，recruit，train and retain talent within their owncompanies.

What is the definition of international talent？Mr.Zhou Liang expressed that it’s a“personwith broad international vision and rich professional knowledge”.Such talents just meet theneeds of the automotive industry of China，even the Chinese economy today.

Pay more attention to education

Mr.Zhou Liang，the only Chinese executive on the panel，pointed out the key element forcultivating talent.He commented that the key reason for China lacking international talents isthat the education system of China limits the emergence and development of talents to a certainextent.He went on to explain：“China’s education system needs a thorough reform，allowingfor the cultivation of talent from babies and training them to have international vision，the edu⁃cation system must cultivate talents in accordance with international standards.”

Mr.Zhou Liang went on to express that open attitudes should be adopted as well as a moreopen environment on cultivating talents and attracting international talents from the country，government，enterprises and from the talent themselves.Mr.Zhou Liang hopes that peoplewho are interested in the development of the automotive industry can open their arms to acceptinternational positions，local talents should cultivate management ability and language throughinternational practice and gain broad understandings of internationalization to make themselvesbecome internationalized talents；meanwhile，overseas talent can also enter China，as long asthe enterprises can formulate a strategy of internationalization，all kinds of talents who are famil⁃iar with Chinese culture，language and proficient in Chinese laws and regulations can play a roleon a global stage.

Solve the two problems of cultivating and communication

Mr.Jay Kunkel，who has worked for three international manufacturing enterprises withinChina，has profound experience in developing talents.Mr.Kunkel also believes that the fun⁃damental level of education plays a very important role in talent development.“I have carriedout a survey，in general，only a few engineering graduates are able to start a competent engi⁃neering work，only 10 percent can take to it directly，”Mr.Jay Kunkel said.He commentedthat enterprises must pay attention to training young workers.

Another loss comes from the brain drain which directly affects an enterprise bottom line.“The management department and human resources department should work together to solve theproblem by communicating directly with employees，understanding their ideas as well as develo⁃ping the working skills that they need on a personal basis.

General“eight core abilities”to retain talent

As a Human Resources Department director，Ms.Mary Thornton from General Motors，the world’s largest automobile company，was quoted as saying，“The only prerequisite of crea⁃ting and selling the world’s best car is to retain the best talents.”GM developed its own eightcore essential abilities for enterprise leaders to solve how to retain the talents.

GM’s eight principles starts with honesty；the second is the ability to adapt to the uncertainsituations；the third is the development of local talent；the fourth is the ability to innovate；thefifth is the management ability；the sixth is the organization ability；the seventh is the strategicacuity；the eighth is the ability to control the vision and goals.

Ms.Mary Thornton hopes that leaders of GM should have these eight capabilities.This isalso what should be mastered by the Chinese enterprises and entrepreneurs，she was quoted assaying：“We are faced with many challenges；these are eight essential abilities which are in or⁃der to meet the consumers’satisfaction and to deal with these challenges.”

Allow for fuzziness with employees

When talking about the method of culturing and retaining talent within the company，Ms.Mary Thornton specifically raised the theory of allowing a certain amount of ambiguity and uncer⁃tainty，Ms.Thornton cited one example，“A 50⁃year⁃old employees will have very rich occu⁃pational experiences.To allow some uncertainty exists，it is of great significance to explore thistype of employees’potential.”

Ms.Vanessa Moriel，Managing Director and Founder of Human Capital Partners（HCP），is dealing with vagueness and uncertainty problems every day.China develops rapidly with di⁃versified problems in different cities.In the view of different situations，we should recommenddifferent types of talents to serve different enterprises.Chinese enterprises are searching for thebest talent around the world.As long as they are equipped with technology ability，fuzziness inother aspects should be accepted as well as a flexible salary system.

Session 13：Design Is the Perfect Combination of Aestheticsand Idealism

On 18th October，a number of specialists in the automobile design industry from variousparts of the world shared their views in exterior designs，subject styles，design DNA，brandbuilding and brand power upgrading which are valuable to the development of the China’s auto⁃motive industry.

Global consumers have compared Japanese and Korean automobile manufacturers with theChinese manufacturers and they have commented on the advantages of the manufacturers whichwill have great influence on booming Asian automobile brands in the future.In the 1990s，Ko⁃rean cars still depended on the overseas technologies and designs.Once it had transitioned intoits own independent style languages，they made significant progress.

Mr.James Hope，Design Director of Chery reviewed the growth of the Korean car brandsand said that in the 1980s，the Korean cars started to have its voice and style in North Americawith its first Hyundai Pony model.

Mr.Xuan Qiwu，President of IAT Automobile Technology Co.，Ltd.previously servedat Mitsubishi in his early years and he remembered that in the early 1990s，the Korean Hyundaihad borrowed many technologies from Mitsubishi.At that time，he did not feel the Korean carswere good；however，he discovered that the Korean cars had made great progress when he re⁃turned to China to start a career in 2004.

Statistics show that Korea has at least 200，000 auto designers，and in comparison，Chinahas fewer automobile designers of which many designers are too young，lack patience and neces⁃sary professional growth processes.

Mr.Xuan Qiwu said 10 years ago，it was easy to carry out automobile design，as the au⁃tomobile manufacturers can directly approach design companies where they requested reverse en⁃gineering of an existing car.In recent years，Chinese manufacturers have started to developtheir own products and they have become more demanding of the uniqueness of their car design.

The participants at the meeting think that the configuration of Korean cars is more reasona⁃ble and Hyundai can still operate two brands even if it has acquired Kia.Compared with the Ko⁃rean automotive industry，the Chinese automotive industry has too many brands which are looseand cannot form a concentrated design language.It is a warning to the industry that the Chinesecar brands lack significant features.

Mr.Suk⁃geun Oh，Executive Vice President of Hyundai Motor Company（in charge ofHyundai’s design center）has described the rapid growth of Hyundai Automobile with his own ex⁃perience that the production scale of Hyundai Automobile was between 200，000 cars and 300，000 cars per year 30 years ago when he joined this company and its production and sale of carslast year exceeded 1.1 million cars.The continually developed product lines and family DNAhas higher requirements for Hyundai car design，he said.

Mr.Suk⁃geun Oh said what he“feels about terracotta armies：the Chinese people couldmanufacture such vivid sculptures 2，000 years ago and I have full confidence in the automobiledesign of China in the future.”

The design and development of cars are a collective creative process as it requires coordina⁃tion of various factors，to include the fashion impulses and traditional classics.It needs tomaintain the overall family style and new blood to the DNA.This is negative⁃and⁃negative crea⁃tive process.

Session 14：Investment in ASEAN Needs Both Opportunitiesand Patience

ASEAN countries have been drowned by China，Japan，South Korea，and India.Howev⁃er，in the last 15 years，ASEAN economic development has been strong，improvement of infra⁃structural facilities，urban development and income growth have provided strong support to itsnumber of cars on hand and benign growth.From the view of development，the ASEAN regionhas increased its demand of cars by 45%last year and 42%in production，and the productionand sales have exceeded the quantity of 2 million.In the future，the ASEAN countries are ex⁃pected to become a large consumer market and will establish a freer and more equal trading plat⁃form.

It has become an urgent matter that the ASEAN countries must face as to how these China⁃ASEAN countries free trade zone will operate，whether the Chinese cars and European cars willbreak the monopoly that Japanese car brands currently enjoy，and what roles the governments ofASEAN countries will play.On 18th October，the Global Automotive Forum 2013 discussedASEAN countries.Mr.Madani Mohamed Sahari，CEO of Malaysian Automotive Institute，Ir.Soerjono，Director of Ministry of Industry，Directorate General of Leading Industry Based onTechnology，Directorate for Land Transportation Equipment Industry in Indonesia，Mr.YeapSwee Chuan，Chairman，CEO and President of Thai AAPICO Hi⁃tech Public Co.and Mr.Armin Keller，Executive Director of ASEAN Sales Operations，Volkswagen AG came togetherto express their views and conduct deeper discussion regarding the change of car competition inthe ASEAN countries.

Ir.Soerjono stated that the Indonesian automotive market sells 1.2 million cars per yearand currently imports 120，000 vehicles per year，with most of vehicles being imported from Ja⁃pan whilst the market in Thailand is more concentrated.Mr.Yeap Swee Chuan stated that theJapanese automobiles have basically controlled 90%of the import car market in Thailand and ithas created much pressure and competition for other car companies to enter this area.

Mr.Yeap Swee Chuan further stated that Thailand is a potential car market but it is noteasy to enter this market.Many global brands will spend 10 to 20 years to enter the Thai marketand a great initial investment is required.How can the Japanese take the control of this market？Mr.Yeap Swee Chuanbelieved that this is a historical issue because the Japanese car manufac⁃turers such as Toyota and Honda have spent much in the initial investment which brought themthe low cost of operation in the long term.

Mr.Armin Keller stated，“Japan has built a large network in the ASEAN countries be⁃cause it entered the market 40 to 50 years ago and has consolidated everything”.Facing a largepotential market，the European brands such Volkswagen and the Chinese brands with great ad⁃vantage are also seeking their opportunities.

According to Mr.Armin Keller，as the largest auto manufacturer in Europe and China，Volkswagen has invested in the markets in Indonesia and Thailand in small scale and this invest⁃ment will increase with the expansion of market as Volkswagen will set up its manufacturing fa⁃cilities in the ASEAN countries to reach the production scale of 3 million units.Mr.ArminKeller said that“Volkswagen will speed up its investment in the next 4 to 5 years to achieve therapid growth.We wish to achieve a success in this region although we have entered this marketrather late”.

Volkswagen has the courage to challenge the Japanese car manufacturers due to its influenceas a European brand and its strong technology and high quality levels.To China，it has becomea challenge for the automobile manufacturers to take a piece of the ASEAN market.Mr.YeapSwee Chuan frankly said：“the Chinese brands have their advantages compared with the otherbrands but China cannot build a strong brand because it is too powerful，too impatient，too fastand too uneasy.”

Mr.Armin Keller has also expressed his idea and suggestions：it is very important to finda local partner.In addition，the investment should not be too large at the beginning，as itshould be slow，not too fast and impatient.

Session 15：When Will China Have World⁃class Auto Parts Sup⁃pliers？

—“Challenges and opportunities：Building world class components suppliers with com⁃plete supply chain capabilities”

Can China create its own world⁃standard suppliers？My answer is yes.When？It is not aneasy question to answer as long as‘when？’is concerned.

As the forum continues to talk over the challenges and opportunities for Chinese auto partsmanufacturers in the global market，representatives of automotive parts manufacturers from vari⁃ous parts of China and abroad came together to discuss as how to create the best and world⁃classsuppliers in the global supply line.Mr.Tom Tan Yuesheng，Vice President of BorgWarnerand President of China Region and Vice President of BorgWarner Drive train Systems Group hasexpressed his best wishes for the Chinese automobile development and has pointed the currentweaknesses of the automotive parts industry.

China has become the largest manufacturer and consumer of automobiles in the world forfour consecutive years but we are not the strongest automobile manufacturer and consumer in theglobal markets.Everybody should know that we are weak in auto parts.Mr.David Wu，Exec⁃utive Vice President of Shenzhen Hangsheng Electronics Co.，Ltd.pointed out that our ances⁃tor Mr.Liang Qichao once said：“strong youths lead to a strong country”，and we also believethat strong auto parts industry will make the China’s automotive industry strong.

In the newly released list of the top 100 auto parts suppliers in 2013，Japan has 29，USAhas 25 and Germany has 20 which cover 74 manufacturers in the world.Added with 4 in SouthKorea，the total is 78.Only one Chinese company has been listed as one of them but it isranked at 92.This shows that the China’s automotive industry is still weak，particularly in theareas of core and key technologies；China still relies too much on overseas companies for keycomponents.

Mr.Tom Tan Yuesheng believes that the world⁃class auto parts suppliers have three fea⁃tures：the first feature is that they play an important role in the market supply chain；the secondfeature is that they own high technologies；and the third feature is that they are strong financiallywhich protects them from being knocked out as with the last global financial crisis.

Mr.Tan shared his ideas on how to create automotive parts suppliers in China and said thatwe should have a great insight and be creative in order to attract talents from the global market.He also pointed out that as all global brands currently are doing well in the Chinese market，Chinese companies can directly be involved in the auto parts supply systems of Ford，Volkswa⁃gen and GM etc.，which is an advantage for them to create the world⁃standard auto parts suppli⁃ers that can be a short cut into the industry.

As one of the industries key automotive parts suppliers，Hangsheng has devoted its effortsin exploration and has concluded that Chinese auto parts suppliers currently are challenged bytechnology.It is necessary for them to invest at the initial stage and their investment in technol⁃ogy this year covered 8.5%of the total revenue.They estimated that the investment in tech⁃nology would reach 10%of the total revenue in the next year.Mr.Wu said that the auto partssuppliers must depend on themselves in creating the core technology system and brands.Cur⁃rently the number of R＆D employees in Hangsheng has reached 600 people，which covers 20%of its head count.

In addition to its huge investment in R＆D，Hangsheng has also attracted talent who havestudied abroad to join its R＆D team in order to integrate the global resources.Hangsheng cur⁃rently boasts 15 overseas Chinese who have returned to China to assist in the R＆D work in theauxiliary system and the new⁃energy system.Mr.Wu said：“We have also cooperated with In⁃tel to establish our creative center and we have been cooperating with our upstream IC chip man⁃ufacturers to resolve technical problems by working with high⁃end parts suppliers.”Hangshenghas entered the systems of a number of multinational companies，to include Nissan，Volkswa⁃gen，Honda，PSA and etc.

Mr.Li Fan，Vice General Secretary of Zhejiang Association of Automobile Manufacturersthinks that the development of the Chinese auto parts development needs an unified system andthe auto parts manufacturers and OEMs should have proper coordination，Mr.Li was quoted assaying：“We are now building our database of best auto parts suppliers and are actively establis⁃hing Zhejiang Automobile Engineer Association in the hope of uniting the automobile manufac⁃turers and auto parts manufacturers.”

Wilson Ni，Visiting Professor of Tsinghua University，President of ASIMCO Internationalwho moderated the session，said that the automobile manufacturers are very noisy and have at⁃tracted much attention.However，the auto parts manufacturers seem to have been ignored bythe media and the governmental departments.

China has become the largest market of complete cars and vehicles but it is still far from aworld⁃class of global auto parts supplier.If no entity moves to unify the industry then it will bedifficult for China to establish a strong automotive industry.

Session 16：The Future Opportunity Is Greater Than the Chal⁃lenge and the Coordinated Cooperation Has Become a Common View

The automotive industry faces various challenges and also opportunities，particularly todaywhen the world has undergone true global economic integration.The development of the car in⁃dustry now faces various limits，such as environment，oil consumption，future energy，safetyand traffic control.Under such circumstances，policy designers，industrial institutes，automanufacturers，suppliers and all automotive related industries have exhibited their skills in de⁃veloping under difficult conditions.

On October 18，2013，a number of senior officers shared their ideas and have designed ablueprint for development of the automobile industry in the future at the closing ceremony of theGlobal Automobile Forum 2013.Those people included Mr.Jia Yaobin，Executive Vice Mayorof Wuhan Municipal Government，Mr.Alan Mulally，President and CEO of Ford Motor Com⁃pany，Mr.Li Shufu，Chairman of Volvo Car Corporation，Founder and Chairman of GeelyHolding Group and Prof.Dr.Jochem Heizmann，Member of the Board of Management ofVolkswagen AG，President＆CEO Volkswagen Group China.

“Today our host has proposed a question whether we are able to present an answer regard⁃ing the sustainable growth in this cooperation.Our answer is firm that we can do it and this isthe idea of Ford，”Mr.Alan Mulally，CEO of Ford，said.

Ford is a company with a history exceeding 100 years which has allowed Mr.Alan Mulallyto have more consideration regarding the coordinated cooperation opportunities.He believes thatour automotive industry has gained great progress in the past few years and has contributed great⁃ly to economic development within China，which is very important to the realization of energy in⁃dependence and safety of energy supplies.In addition，it has also created some solutions tosustainable growth with a focus on environmental issues.

We can see now that the confirmed sustainable technical route is very clear and we needmuch more coordination and cooperation in this area.Firstly we have large space for further im⁃provement including the internal combustion diesel engines and gasoline engines，high strengthsteel，aluminum alloys and composite materials.Therefore，we have much to improve in thematerial area；in addition，there are improvements for aerodynamics，electronic devices andsystem integration.One of the key technologies is compatibility.

Mr.Alan Mulally stated that we really want more people to participate in this process andwe are very willing to answer all questions from our host.Enhanced cooperation is an answer tothe coordinated cooperation for sustainable growth.

As the only Chinese enterprise in this session，Mr.Li Shufu has deepened understandingof the coordinated cooperation after his Geely Group acquired the Volvo brand.

Mr.Li was keen to stress that Geely is Geely and Volvo is Volvo as Geely is a brand for themasses whilst Volvo is a luxury car brand.Geely and Volvo are like brothers instead of having afather and son relationship.Mr.Li Shufu went on to say：“Since the acquisition in 2010，Geely and Volvo have madeprogress in cooperating in step⁃by⁃step process.In February 2013，Geely Holdings Co.set up a R＆D center in Sweden which started operating in September.Wehave integrated the best R＆D resources for Geely and Volvo by depending on the strong R＆Dbasis，developed a brand⁃new medium⁃class module structure，which has set a solid foundationfor developing the next generation of Geely and Volvo car models.

Mr.Li Shufu stated that as long as Geely continues to work hard on the new technology andnew car models，to explore and practice and maintain our leading position of the Volvo cars intechnology，the Volvo cars will gain greater opportunities of development in the market in thefuture.

With the expanding influence of the China market，Prof.Dr.Haizmann，CEO of Volk⁃swagen Automobile（China）expressed the same view：“Firstly we are facing the future chal⁃lenge，secondly we have demand for sustainable growth in the future and thirdly the employeesare very important to us，including all employees in the automotive industry who are very impor⁃tant to the future development of automobiles and the Chinese society.”“The conditions withinChina are full of challenge and we are facing various uncertain things，such as climate changes，urbanization process，traffic jams and air pollutions.”Prof.Dr.Haizmann thinks that the firsttask for China is to solve the ecological problem.All people present are obliged to contribute toenvironmental protection.

Sustainable growth is a challenge for the whole automotive industry and we need to find away to balance the dynamic needs，to consider the environment and our resources.

Prof.Dr.Haizmann stated that the three columns of the automotive industry in the futurefor development include energy preservation，highly efficient dynamics and smart systems to en⁃sure that our driving habits are in line with urban needs.To achieve these goals，the Chineseautomotive industry should become more cooperative and have a deeper cooperation with suppli⁃ers.It needs a clear and stable legal framework in which we can establish a partnership with allparticipants and partners.Our employees should work together and we also need thorough coop⁃eration with the joint ventures in China.

Mr.Jia Yaobin，Executive Vice Mayor said that with a view to the future，the automotivetechnology revolution has boomed and the new model of technology and business is changing theoutlook and form of competition.The global automotive industry has extensive opportunities.Facing the challenge and proposing solutions，the policy makers，industrial institutes，automanufacturers and suppliers and various related parties should enhance cooperation in variousfields which is key to solve the problem of growth，seize opportunities and create a future for theautomotive industry.

As the host of this forum，Mr.Jia Yaobin has a positive attitude towards the achievementsmade in this forum and he said that we have discussed the future growth regarding the automotiveindustry in the future from our goals，strategies and modes and have reached constructive andfruitful common views.Mr.Jia said that this forum is successful and has reached the objectiveas it has drawn various ideas，thoughts and views from the participants.