On Dec. 26, 2007, the signing ceremony of the contract for the all-round cooperation between SAIC and Nanjing Auto took place with solemnity in the Great Hall of the People in Beijing, thus raising the curtain for the strategic trans-regional SOE restructuring on the largest scale in the Chinese auto industry. Since the beginning of 2008, following the guideline of being “faster, higher and stronger” that SAIC set to itself, SAIC has taken active steps to align the businesses, integrate the management and blend the corporate cultures of SAIC, Nanjing Auto, Donghua and Shanghai Diesel Engine Company, successfully carried out assets transfer and stock right alteration, and made significant headway in its program for trans-regional and trans-industrial strategic re-structuring.

Resource integration has been accelerated and the pre-set objectives for the year have been attained. One of SAIC’s “three major tasks” this year is to crack the hard nuts of resource integration. To this end, SAIC has made elaborate plans, exercised strong and effective leadership, made coordination between various levels of management, solicited interactive support from all sides and sped up the various activities of business alignment after the integration of SAIC and Nanjing Auto. Thanks to the concerted efforts of all the parties in the past half year or so, the production, business operation and management are going on smoothly and steadily; the business alignment and cooperation are being carried out a step further; the controlling systems and regulations are being set up step by step; the corporate vision introduction and corporate culture blending are being pushed forward most effectively, and the employee training and qualification improvement are being implemented in an all-round way. In the meantime, the first pile has been driven for the construction of Nanjing Tooling Center, which is a three-partner joint venture, including SAIC, Baosteel, etc. Santana Vista has rolled off the production line in the renovated SVW Nanjing Branch shortly after the plant renovation; Donghua Automotive Industrial Company has been officially inaugurated in Nanjing; MGTF sports car, MG 3 SW, which are the fruits of the policy of “all-round cooperation as one family,” have been driven off the line and put onto the market one after another.

The team buildup has been conducted from a strategically advantageous position and the “Hundred-day Integration” has produced a marked effect. Strengthening the cadre team buildup both ideologically and organizationally is a task of first importance, on which depends whether or not the business alignment can be successfully achieved and normal production and business management can be guaranteed after the establishment of cooperative partnership between SAIC and Nanjing Auto and between SAIC and Shanghai Diesel Engine Company. In order to have a full command and deep understanding of the status of the cadre team of the enterprises, leaders of SAIC Group, SAIC related departments, the new Nanjing Auto and the new Donghua Company paid visits to the enterprises under their respective management and made field investigations. They had heart-to-heart talks with the leaders and managers at various levels of the enterprises, and made them focus their attention on enhancing the awareness of overall situation, of risks and of the importance of making innovations. To improve the management of their production and business operation, during the “Hundred-day Integration” and the “Hundred-day Program” activities, MG, Donghua and Shanghai Diesel Engine Company earnestly straightened out their organizational structures, established complete rules and regulations, strengthened job training for employees, organized such training courses as SAIC vision, core values and the managerial mode of “everyone to become a manager”, etc., so that the employees immerge into SAIC’s corporate culture while enhancing their job skills and capabilities.

Ideological work has been carried out in an effective way and the cultural consolidation has promoted the economic development. The strategic restructuring of the enterprises brings about development opportunities to them and also confront them with cultural challenges. The leaders of the new Nanjing Auto carried out meticulous ideological work among the employees to publicize the idea of “cooperation between SAIC and Nanjing Auto as one family”, and also organized exchanges and communications between the SAIC and NA employees, gradually making the SAIC vision and core values well-known to every one of them. Adhering to the principle of “harmony and stability,” the management of new Donghua attached importance to doing ideological work and strengthening cultural blending, thus creating a harmonious environment for the company. During the Spring Festival this year, the company sent to th e employees over 400 consolatory letters on the theme of “creating cohesion, reshaping and bracing up,” and paid over 500 visits to the employee families. During the “Hundred-day Integration”, the leaders of Shanghai Diesel Engine Company took action to incorporate the SAIC culture into its own, changed their way of thinking, strengthened the business management and continuously opened up new market. As a result, both the production and the profit overfulfilled the half-year targets.

With a faster pace, higher requirements and stronger measures, as well as the rich experience it has accumulated in overcoming difficulties of resource integration, SAIC has taken a firm step forward on the road to “integrating the resources worldwide,” and building itself into an automotive conglomerator that has both core competitiveness and the capability for transnational business operation.