The Study Of FAW-VW's Auto Financial Business Development

The government attaches high importance to automotive financial business, which is a roll booster for long-term economic development in China. The government issues several polices and management regulations to encourage it developing, which gives Auto Companies a big opportunity to develop automotive financial business.As the top Auto Company in China, FAW-VW should buildup the competitive ability and profitability through developing Auto Financial business in current intense competition market. Now, FAW-VW's Auto Financial business is in the beginning step, so it needs to be improved in so many ways. Below article deeply researches FAW-VW's Auto financial business development based on current situation, and offers some strategies and advice for the company.Part I: firstly there is an Auto. Financial business conception, Auto financial business is relied on the development of Auto Industry and is financial activities such as capital collection, loan, discount, paper issue and relative insurance and investment activities among Auto research, production, sales, buy, use, and discard. Secondly, this part describes the origin of the financial business and the development mode. Auto. Financial business was founded at the beginning of 20th century. The original model is car loan, and then develops to wholesale financial business for increasing the quality of Auto Financial business. Thirdly, it is why financial business is so essential to manufacture in term of new car and second-hand car sales volume improvement, income and profit origin, and management and control dealers network.Part II: it introduces the foreign Auto Financial business situation. The foreign Auto Financial business is close to perfect and has strong fund. The financial business is through the whole car industry. There are five organizations (banks, auto financial company, auto leasing company, insurance company and the third service company) in the auto financial market. There are five sides for Chinese Auto. Financial business development to use for reference, as law foundation, people credited system, perfect organization system and management experience, Auto Leasing business development, and stable capital collection method.Part III: it is to analysis current FAW-VW dealer financial business. Firstly, GM financial institution and Germany VW financial institution are the two most important and advanced dealer financial institutions in foreign counties. Secondly, it is to introduce the three main dealer financial channel in China including bank financing, Auto Group financial company financing, and Auto Financial Company financing. Now, it is mainly relied on banks, but the financial company would be instead of banks "for long-term. Finally, it is to introduce FAW-VW's dealer financing models, management regulations and to analysis its development situation.Part IV: it is research FAW-VW Auto. Derivative business includes car loan, leasing, and insurance combined with China derivate business. Firstly, it is to analyze Chinese derivative business' characters, disadvantages from developed countries, and future development direction by introducing derivative business development process. Chinese derivate business also will go through the four stages, but there is a big potential to move forward. Now, the product is really simple and cannot satisfy customers' needs. Finally, it is to introduce FAW-VW's derivative business current developing situation, to describes the derivative business platform, analyze the building of the current models and the derivative productions in the two years.Part V: there are still four weak factors to restrict Auto Financing business development as the limit of the law and regulation, the immature auto financing environment, lack comprehending for the demand of the consumer and few professional Auto Financing people. For FAW-VW, it should build Auto. Financing business platform, innovate financial product and develop auto leasing business. This strategy is satisfy for long-term development demand, is benefit current business expansion and is match for FAW-VW's best-positioning strategy principle.