Study Of Saic-Gm-Wuling Joint Venture For Chinese-Chinese-Foreign Cooperation Model

The"Chinese-Chinese-foreign cooperation"refers to the tripartite cooperation style in which contains two Chinese enterprises and one foreign capital cooperate. The name firstly formed from a special cooperation model between China Unicom Corporation and foreign capital. On June 4. 2002,Saic Gm Wuling automobile limited liability company licensed to operate, which symbolizes the first example of the Chinese-Chinese-foreign cooperation pattern in our country's automotive industry. The original state-owned major stockholder of Saic Gm Wuling automobile limited liability company transferred the majority of the stockholder's rights to another state-owned company through the way of free state -asset-transfers, then the foreign capital entered through the way of increasing the capital to expand the stocks to become the second major stockholder. Thus it formed the joint adventure in which has two strong external companies cooperate with the original holding shareholder. The article studies the"Chinese-Chinese-foreign cooperation"model of capital project of Saic Gm Wuling automobile limited liability company, which has the difference with that of China Unicom Corporation. Obviously, What the Chinese-Chinese-foreign cooperation pattern that this article studies is formed by the way of M&A to stocks or property, so the stockholder's rights and the stocks are the targets, in contrast, the model of China Unicom Corporation formed by the way of"Green field Investment". The two models have the significant difference in aspect of capital operation. Obviously, the model of"Chinese-Chinese-foreign cooperation"this article defines belongs to category of M&A.In the past 4 years, the Saic Gm Wuling automobile limited liability company has generated great improvement in it's management after it's turning into a joint venture, and the production output and marketing achievement had break the record repeatedly, and maintained the growth of over 30% in 4 consecutive years, and grew from the third place to the first in the market share. It only used four years time initially to achieve the tripartite's ten -year development targets: to be the leadership nationally and competitive internationally in the small vehicle development. All these made Saic Gm Wuling automobile limited liability company developed rapidly in the Chinese mini vehicle market and become the successful model among the same type enterprises. All these achievements demonstrate the superiority of tripartite cooperation.Targeting the study to Saic Gm Wuling automobile limited liability company joint capital project, the contribution and the innovation of this article reflect in the following several aspects:Firstly, for the first time it defined and has studied"The Chinese-Chinese-foreign cooperation"which is the first example in our country's automobile field from the pattern of the foreign capital merger and acquisition.Secondly, it has studied the impact and the development to our country automobile industrial policy given by the joint capital project of Saic Gm Wuling automobile limited liability company.Thirdly, it has studied the reference given by the development of Saic Gm Wuling automobile limited liability company to the same type enterprises after it became a joint venture.Fourthly, through the model of the Saic Gm Wuling automobile limited liability company's joint capital project, it has studied the suitable condition for using"Chinese-Chinese-foreign cooperation", and expanded the pattern and model of the foreign capital cooperation.Fifthly, has studied the synergy effect theory through the model of the Saic Gm Wuling automobile limited liability company's joint capital project. Above all, Saic Gm Wuling automobile limited liability company's joint capital project of"Chinese-Chinese-foreign cooperation"has been produced under the background of our country's special industrial policy. Its appearance has broken the limit of the old industrial policy, and enormously promoted union, reorganization and adjustment of industrial structure in our country's automobile industry. And because of its distinctive quality, Saic Gm Wuling automobile limited liability company's Chinese-Chinese-foreign cooperation already became a new pattern of M&A. Meanwhile the Saic Gm Wuling automobile limited liability company's Chinese-Chinese-foreign cooperation project has also provided a valuable model to the cooperation between Chinese Enterprise and the foreign enterprises ever since.