As the most profitable Automotive Group independent brands, GAC Motor profitability has always been a great concern. On Chengdu motor show, GAC Motor General Manager Woo Sung disclosed that from this January, GAC Motor began to profit and its profits reached 155 million Yuan in first half year. "GAC Motor is expected to realize maximum profits in 2015, the same level with the joint venture.” Woo Sung has always stressed that since the GAC Motor has alway been the Group's top priority since the establishment and GAC has never stopped investment on GAC Motor .
According to Woo Sung, " the first phase investment of GAC Motor factory is 2 billion, with 200,000 production capacity, and the second phase investment is more than 1 billion, with a total capacity of 300,000. Plus the GAC Research Institute investment, more than 5 billion, the investment on GAC Motor has accumulated more than 10 billion yuan by now.”
"Compared to the joint venture, our investment is less than their 60%. "Woo Sung said, “due to the the global tender, GAC Motor establishes a" 33 "rule, that is, Finance Department, Purchasing Department and Business Dpt. Mutually check and balance each other so as to reduce the cost.”
”With the restorative growth and development of GAC, GAC will also increase investment in independent brands.” He also disclosed, "the next five years’ investment will reach 17 billion yuan.”
As sales increase, GAC Motor's profitability is also rising. Woo Sung said,”while GAC Motor has been profitable this year, but in order to achieve the rolling development, current profits are all invested into research and development as well as marketing and internet development.”
But in his view, GAC Motor is now ready to develop new models of products, and the massive profits is expected to reach around 2015.
"GAC Motor's massive profits in fact mean that profits level cannot be less than foreign brands, so that we can compete in the international market. " Woo Sung said.
