Jointly organized by the State Development and Reform Commission (SDRC), Shanghai Municipal Government and Jiangsu Provincial Government, the cooperation agreement signing ceremony between Shanghai Automotive Industry Corporation (Group) and Nanjing Yuejin Motor Group was held in Beijing. Vice Primer Zeng Peiyan attended the ceremony, had a meeting with all attendants and gave a speech.

Mr. Zeng said that to realize business of large scale by unifying and restructuring some firms is the only way for China to make our automotive industry bigger and stronger. He hoped the two group companies to speed up independent innovation, invest more to research and development, accelerate the production of branded products, and made great efforts in system innovation.

According to the cooperation agreement, Yuejin's automotive business will all blend into the Shanghai group, while Yuejin will hold part of Shanghai Automobile and Donghua Company under the Shanghai group. In future, the two parties will take advantage of each other's strengths and share their resources in finance, R&D, sale, production and purchase, and well coordinate in sales of finished automobile and parts in domestic and overseas markets.

In 2008 the two automobile companies are expected to sale 2 million automobiles, and have a complete product chain, independent brand and products of independent IPR.

According to the agreement, the new Shanghai Automobile Corporation Group will become the largest automobile producer in China of first-class international level. Nanjing Automobile will become an important automobile production base. The two parties all promised on the signing ceremony that they will take the opportunity to make bigger progress in upgrading independent innovation and international competition capacities, so as to make more contribution to the development of Chinese automobile industry.