An Investigation On The Financial Service Program For Jiang Huai Automobile Product-Gerfa

Nowadays, with the sustained economic growth, the requirement for commercial vehicle in Chinese market has been increasingly enlarged. A series of heavy truck products come into the automobile market and become one of the hotspots. Among these products of heavy trucks, the "Gerfa" is such a brand new generation completely developed by Jiang Huai Automobile Company and has established its own trademark. In the manufacturing of "Gerfa", combined techniques from the European Daimler-Chrysler Company and the Korean Hyundai Company were fully employed, which make the product high-qualified and reputable. Since its first launch in April 2005, the "Gerfa" has been granted "the Up-and-coming heavy truck product award", "the most potential new heavy truck award" and "the annual best market brand award for heavy truck" by numerous media and authoritative organizations. However, due to some characteristics of the product itself, a few difficulties still exist in the sale of "Gerfa". For example, the main clients of the product are manufacturers who are comparatively stable and creditable, but the relative high price of heavy truck plus the noninstallment payment may result in the hesitation of buyers to purchase this product. Therefore, with the increasing sale of heavy truck products in Jiang Huai Automobile Company, more and more clients began to call for different financial ways of payment for the product."Automobile finance" brings a bran-new idea of integrating the automobile industry with the financial service. A complete manufacturing financial service chain forms by providing a series of specific financing products and services toward consumers, providers, manufacturers, and franchisers. Effective financial management can not only stimulate the sale of products, protect companies' channel of distribution, but also enhance the enterprise's ability of making profits.Based on the above statements, the researcher designed the current topic, "An Investigation on the financial service program for Jiang Huai Automobile product—Gerfa"Stand at a micro-subjective point of view, i.e., the Jiang Huai Automobile Company, the current study tried to link the current situation of the real company with the macro-development of Chinese heavy truck manufacturers; employ relevant theories in automobile service, and refer to relatively mature experiences from both domestic and oversea successful automobile financial service companies. Based on market research and data analysis, the author attempted to combine a theoretical framework from literature review with the empirical study, and creatively establish a set of competent financial service programs which are suitable for heavy truck manufacturers.The thesis contains six chapters. In the first chapter, an introduction of the Jiang Huai Automobile Company and the characteristics of the heavy truck "Gerfa" were presented; a few problems in the product distribution were also identified. The second chapter is basically a literature review on theories about the automobile financial service, which mainly focused on the conception, developmental features and function of automobile financial service. In the third chapter, models used in current domestic and oversea automobile financial service companies were introduced which served as a theoretical basis for the later proposed strategies in automobile financial service in Jiang Huai Company.The fourth, fifth and sixth chapters constitute the pivotal part of this thesis. In the forth chapter, based on the characteristics of "Gerfa" and successful experiences of other domestic and oversea automobile companies, the researcher established the objectives and rules for a future financial service program. In the fifth chapter, a preliminary financial service program was structured, including the establishment of relevant institutions, the design of processing flow as well as pertinent precautions, possible problems in the real program operation and their corresponding solution, the improvement of program efficiency and the mid- and long- term layout. The sixth chapter was about the realization of the program, which consisted of the financial analysis and resources of the program, supportive condition analysis and the business extension. Some suggestions on the necessary improvement of auxiliary measures were discussed.