Financial Stratigies Research For GF Company

With the rapid growth of China’s economy, the continuous upgrading of the consumption structure, the purchasing power is increasing, China’s car market has become the world’s largest and most potential market. Especially recently, Chinese has be the biggest new car sales market in the world, the huge auto sales market, attracts many domestic and foreign automobile manufacturers to pay more attention and increase the investment in China. At the same time, tense competition is coming. Consumers have more choices, and became more and more rational, so each car brand often use lower price to occupy market share. Therefore, new car sales prices and profits are in decreasing trend. However, the automobile retail industry is a capital intensive industry. Car dealers need to invest a lot of money in the construction for the new stores, the new stock cars and spare parts also need a lot of money. Dealers also need cash for daily operations. At present, the domestic automobile dealers are relatively small; mainly use bank loans to call cars. In recent years, the central bank had raised deposit and lending rates for several times, financing costs rising makes the car dealers have to improve management, expand market, enhance the financial management capacity, extend the product value services and integration of market and other ways to get more profit, in order to get more funds, strengthen market competitiveness. This time, how to customize their own suitable, effective financing strategy has become an important subject in front of dealers.According to the GF company, this single car dealers to carry out investigation and study, then base on a series of related domestic and foreign literature research, and analysis GF financial data. First, the car dealer industry is a high possession of funds industry, so that in most car dealers operating funds are financing, especially obtained from bank financing channels. Therefore, a good financing strategy for GF company has become an important index. However, many domestic car dealers, including GF, just pay attention to new car sales and after sale service which benefit directly to dealer, the management does not have the deep understanding for financing strategy, have not conduct basic research for financing strategies. So often have problems with shortage of funds, the dealer turnover became slower, then dealers cash flow broken, and then lead the bankruptcy for the company. Therefore, uses SWOT method to analysis, make financing strategy for GF company, and explore suitable for a certain type of car dealers, to formulate the method suitable for this type of dealer development financing strategy, in order to improve the development of automobile industry of the whole flow passage. GF companies which in the automobile industry chain is important, plays a vital role in the premise, need to guard against operational risks, in-depth analysis of enterprise management condition, according to the resource and operation situation of their own, formulates the reasonable financing strategy, scientific arrangement of assets and liabilities rate, it is very important now.