A Study On Construction Of Automobile Professional Financial Service Institutions Of Self-own Brand Automobile Companies In China

Along with the rapid economic growth and automobile production, automobile sales increase rapidly. China is entering an "automobile society". The self-own automobile brand has also made a breakthrough in recent years. Brands competitiveness embodies in not only the product level, but also the field of automobile service. Automobile financial services play an important role in brands competitiveness. The quality of automobile financial service of self-own automobile brand has a direct impact on the development of own-brand automobile. Automobile professional financial services institutions controlled by China Automobile Group are the automobile financial companies and automobile finance companies in two forms. The major automobile finance companies that have established in China are foreign companies or joint venture companies. They all belong to automobile giants and serve for foreign brands or joint venture brand at present. The automobile manufacture groups owned by our country, which have automobile financial companies, such as first Automobile Group of Changchun, Shanghai Automobile Group and other car manufacture Groups can provide financial service by automobile financial companies and commercial banks. But some automobile manufacturers still have not their own automobile professional financial services institutions, such as Chery, Geely, Hafei, Huachen, Chang'an Automobile Manufacture Groups, relying mainly on commercial banks to provide automobile financial services. There are still some problems in the development of self -own brand automobile professional financial services institutions, such as automobile manufacturer still not strong enough; the short of money to develop the automobile professional financial services institutions, more professional talents needed in financial services fields, the level of financial risk management needed to be raised.This paper uses financial ecological theory to analyze the emergence of the automobile finance companies impact on Chinese financial ecological; Uses profit pool theory to analyze the profit distribution changes of Chinese automotive industry value chain and point out that the automobile financial services will be an important source of profit in automotive industry value chain in China. This paper discusses the automobile finance companies have integrated effect in the automotive industry value chain in detail, and then discusses the necessary of the development of the Group professional financial services institutions by Chinese self-own automobile brand groups.Compared with automobile finance companies and automobile financial companies, this paper elaborated automobile financial companies have some advantages on the law's scope of business, but do no help to expand automobile financial service for automobile financial companies' business across the whole automobile industry value chain in future.This paper uses real-option-theory ideas and methods to analyze and design the development of automobile financial services professional organization's strategic investment decision. Compared with banks and insurance companies, this paper analyzes advantages and disadvantages existing in professional financial services institutions of self-own automobile brand, and gives some constructive suggestions on how to choose a strategic partner for professional financial services institutions of self-own automobile brand.This paper uses "financing of the Pecking Order" and "trade-off " theory to analyze the financing strategy policies of professional financial services institutions of self-own automobile brand in China, and introduces that professional financial services institutions of self-own automobile brand can use innovation tools to finance. This paper theoretically analyzes that the government can increase enterprise value of self-own automobile brand companies through the provision of low-interest or interest-free loans from commercial banks and policy bank through encouragement policies, and can provide appropriate tax relief or tax deferred to help self-own brand professional financial services institutions. This paper gives the detailed analysis of the impact on enterprise value by mezzanine finance. It should be an important yardstick that whether Mezzanine Finance increase the value of enterprises.This paper discusses that financial services professional institutions of self-own automobile brand should keep the control of brand, property rights, market-dominated areas of control in strategic cooperation. Based on characters of state-own automobile companies of self-own brand, inspiration from the British "golden shares" in the process of restructuring state-owned enterprises, this paper gives the design of "automobile industry strategic control share".Based on situation of the development of automobile financial services of Chinese self-own automobile brands, this paper gives some suggestions to formulate corresponding system in industrial policies, to support self-own brand automobile groups and their professional financial services institutions in whole.