Wang Shirong wonderful solution financial problem in the development of Chery automobile

---General manager of an exclusive interview with Chery Huishang bank auto finance company limited Wang Shirong

In April this year, when Chery automobile company and Huishang bank invested Chery Huishang Bank Auto Finance Company Limited opened officially announced, in front of the company's general manager Wang Shirong and the company is a very bumpy road: the international financial crisis on the impact of the economic environment China deepening; the CBRC 9 foreign capital has been approved or joint venture automobile financial company operation condition; brilliance, Jianghuai, Changan is also actively construct their own brand automobile financial company; as the first domestic independent brand automobile financial company, the China Banking Regulatory Commission on the new Chery Huishang bank auto finance company to give high attention and expectation.

Although the developed countries in Europe and America personal loan purchase a car ratio as high as 80%, but in 2008 the personal loan purchase a car in our country the proportion is only 6%. In addition, Chery is taking the cheap route, various models of the price is not high, Chery financial company to profitability is not easy.

Even under such pressure, up less than 3 months of Wang Shirong didn't disappoint: opened only two months on the issuance of dealers to purchase the vehicle loans 700000000 yuan; individual purchase a car loan business smoothly; no bad or overdue loans credit management system developed independently in normal operation. This paper not only let Chery automobile, Huishang bank very satisfied, also let the other auto finance company sit up and take notice of Chery finance.

Loan business rapidly: not simple

Reporter.Mr. Wang, how do you so rapid development loan business?

　　Wang Shirong.(laugh) but not everybody says so exaggerated, can rapid development loan business major source based on Chery's good. We set up an auto financing company, in 2006 set up specialized to provide financial services for dealers in the sector, according to the risk control model of automobile financial company to operate. After nearly 3 years of operation, forming a large dealer credit data files, accumulated some experience, which lay a good foundation for the rapid development of auto finance company loan.

　　Reporter.The original Chery has preparation early, this is one of the reasons is not Chery can get the first independent brand automobile financial company licenses?

　Wang ShirongShould. At that time to the CBRC for automobile financial license of domestic own brand car factory more than a Chery. The CBRC the most important consideration in the examination and approval is to control risk, the domestic financial institutions, this is a lesson. In the application of the enterprise, Chery is the best foundation, is also the most prepared.

Reporter.As the first independent brand automobile financial company responsible person, you have no pressure?

　　Wang Shirong.Of course there is pressure, and great pressure. In Chinese, auto finance development was not smooth, compared with foreign brands, domestic brands of automobile financial business more difficult. The first is the consumer car loan, foreign brand car prices on average more than 150000 yuan, a car at hundreds of thousands of dollars, hundreds of thousands of yuan of loans, and domestic brand car average price in 100000 yuan of the following. Is also a single business, the same labor, the risks and benefits of our and foreign financial company undertakes clearly disproportionate. Followed by Chery dealers economic strength is relatively weak, the lack of ability to resist risks. Once again, Chery's consumer groups is different from other brands of consumer groups. Therefore, whether in the cost control and risk control, we are faced with tremendous pressure and challenges.

Chery: significant financial

Reporter.What do you think the auto finance company was established by means of Chery?

　　Wang Shirong: established the automobile financial company has very important significance for Chery. First is to improve Chery's cash flow. The original Chery dealer financial support is reflected in the accounts receivable, and now it is all cash transactions. Because the automobile finance company loans, Chery sales accounts receivable decreased rapidly, capital efficiency is greatly improved, the book is also more beautiful. The second is to solve the problem of insufficient funds to their dealers, than the original more happiness. All operations are carried out through the network system, and even the banks do not have to, we call it the "take the money to your desktop". Dealer Manager now every day at work, only need to open the computer to see, on today and how much loan stick out a mile. If need be, just click the mouse, the problem completely solved.

　Reporter.System and bank auto finance company what is the difference?

　Wang Shirong.The basic and the banking system almost, but we are more professional, more efficient service.

　　Reporter:The CBRC, Huishang bank, other automobile financial company, going to start the automobile finance car factory look to you?

　　Wang Shirong.Hui Merchants Bank is our strategic partners, is also one of the sponsors, they certainly hope we develop well. Hui Merchants Bank funded 100000000 yuan, accounting for 20%, its strategic alliance not only to improve the governance structure of our, also brought the advanced financial management experience for the company. By constantly running, our cooperation is becoming more and more smooth.

The China Banking Regulatory Commission as a regulatory department, I think the most concerned about is how to control the risk, whether the prudent operation, internal management system is sound. Therefore, the sound operation is one of the important strategies of our. In addition to the immediate thing, we have more important is to plan for the long term, stable and healthy development of novelty.

As for the peers are more of our concern and attention, only we do well, can give the peer greater confidence.

Chery: the spirit moved

Reporter.You have done a foreign auto financial company executives, and automotive business of foreign banks should have a lot of experience, the opportunity for a better job, why do you choose to come to Wuhu?

　Wang Shirong.To tell you the truth, I was touched by the spirit of Chery. Someone once said, Chinese which could build a car? The group of people in the area really bring their cars out. We are all the children of the Yellow Emperor, not seen with my own eyes Chinese car market by foreign monopoly. I sincerely hope that through our efforts, a meager strength for the rise of national automobile industry.

Reporter: when you close your eyes and think about, you feel more like a banker or entrepreneur?

Wang Shirong: should be a mixture of both. Bankers do this thing never down, because our form is not the same, the risk is not the same. Compared with our bank, was more cautious.

In the course of practical work, we should make friends and dealers, help them to exclude the difficulty and anxiety, sell our car. We are close to the dealers, and distributors for. In this point of view, we are more like entrepreneurs. May say the bank is a department store, we store a little more precise.

Future strategy: stability in innovation

Reporter.At present, what is the Chery emblem silver automobile financial company, the most critical thing?

　　Wang Shirong.The first is to solve the problem of survival, must pay yourself first. Before considering the development, development can not be too fast, too fast will bring many problems. We are not very rich experience, have to fumble ceaselessly in the process of development, gradually accumulate experience.

Foreign auto financial company has a profit schedule in China market, is generally a plan first loss in 3 years, we don't have much time to lose money, Chery also won't take money let us losses. Therefore, our plan is the first year of basic balance, a slight profit, second years from the beginning of a better profit. Under such pressure, we must seek more stable, solid the existing business, speeding up between the company and the bank, customer, employee, and further improve the work flow, risk control and IT system, lay a solid foundation.

　Reporter.The company has set the development target in the future?

　Wang ShirongThe first year: we plan to dealer loans to 1000000000 yuan, the consumer car loan to tens of millions of yuan. We hope to be able to be prudent, especially consumer car loan, we have started a pilot in Anhui, wait until the maturity of the promotion to the nation. Chery sold 500000 annual car, if a loan of 50000 cars by automobile financial company, average every car loan 50000 yuan, it is 2500000000 yuan, this figure is very impressive. We are not aggressive, we must first to play a solid foundation. The foundation, we can also cross brand, hope one day can achieve Chery expects of us -- -- completed half of the profits of Chery company.

    Lee: investment and automobile financial company is strategic considerations

              
 
Invested 100000000 yuan, accounting for 20% of the shares, Huishang bank investment Chery Huishang bank auto finance company for what consideration? Hui Merchants Bank governor Li He recently in an interview with this reporter described the Huishang bank investment strategy.
Lee and: we are out of strategic considerations investment Chery Huishang bank auto finance company. Is a major strategic investment made from financial development. Investment in this, because of the retail business. Along with the Chery car sales 1 years hundreds of thousands of cars, and the corresponding have hundreds of thousands of customers, these customers are our potential clients. Although now just in the Yangtze River Delta city of Nanjing opened the first branch, but one day we will go to the country, and even to the world. We see Chery is for this reason, because the automobile export them in Chinese is the first.
Hui Merchants Bank and Chery not only in Anhui, but also more than the car itself. Chery car sales in the world, so we want to and Chery joint development. Chery car sold to where, our financial services development where, this is a very important part of our retail strategy. There are two important parts in this strategy, one is the development of our two companies can reflect each other, two is our mechanism can be set to more regions. For example, Chery automobile to South America, our financial service follow up in South America, when our bank with the past, our service is with the past. Unlike other big banks, their overseas strategy is comprehensive, but we must be professional, automotive supply chain for a set of financial business, so our characteristics emerged.
In terms of risk control, the CBRC urged banks and automobile cooperation, its reason is worried about the risks. No matter what, after all, the bank has a complete set of system and operating procedures in risk control, this will have on the risk control. But from Chery itself, it also has a set of control risk to dealers and customers the way, both can achieve better effect.
Future development can also put the automobile industry and the automobile finance combine. For example, the car is sold, in the after sale service is also a big market. Banks in the after sale service can do a lot of things, such as hair card. The before stage can do auto sales brand, later stage can do auto after sale service, can go to the 4S store to the consumer with CO branded card, can also use the cash discount to customer service parts concessions, since any equipment renewal car owners can use this card.
In the future will be based on past experience and the special consumer groups, establish a risk model is unique, will be in accordance with the new generation of the Basel agreement on risk assessment requirements for risk control.