Gasgoo.com (Shanghai June 1) - SAIC Motor's decision to enter the stock market has been approved by its major shareholders, dfdaily.com reported today. The decision, which was made by a provisional conference of majority shareholders, agreed to set the value of SAIC's stock at 16.53 yuan ($2.554).
Additionally, SAIC will incorporate its independent autopart, service trade and new energy vehicles divisions. SAIC Motor CEO Hu Maoyuan said that this restructuring complies with the country's business reform policies, allowing enterprise to exercise greater control over their services. SAIC hopes that by undergoing this reform it will be better able to satisfy customer demands and manage subsidiary businesses.
From SAIC's global experience, Mr. Hu believes that the path to long-term profits is greater research and better service. To this aim, Mr. Hu believes his company has a lot of space to develop. Raising one example, he points out that SAIC's trade service division only accounts for 7 percent of the manufacturer's profits, which although is the highest of all domestic manufacturers, is well below the average global ratio of 10 percent.
