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US Cornell Capital Partners and Beijing Jinche Yingang Auto Maintenance Center 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 percent of the new joint venture, with the US firm holding the remaining 33 percent. 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.
(China Daily November 11, 2005)
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