The Investment Analysis And Risk Control On Jeep Project Of Guangzhou Plant In GAC FIAT

The past 30 years of reform and opening have witnessed the rapid development of Chinese economy.The automobile industry has become an important pillar industry of national economy,and both of the production and sales volumes in China have exceeded 20 million units.However,automobile companies are facing fierce competition because of various automobile brands and types as well as uneven vehicle prices and qualities.Also,the clients’ consumption concepts are becoming more and more mature.Thus,increasing investment to develop new products and expand factory capacities has been a winning measure for automobile companies.However,increasing investment can also lead to bankruptcy.Therefore,in order to reduce project investment risks and avoid failure in investment,it is necessary for automobile companies to analyze investment projects.This study analyzes the GAC FIAT Jeep Guangzhou project based on environmental,technical and financial aspects by using project investment theories and methods and finally reaches a conclusion that the project investment is practicable and reasonable.Meanwhile,the study points out the risks in the project and puts forward the corresponding control measures.The body of the study includes 5 chapters.The first chapter introduces the background and meaning of the study,literature review,the study idea and method,and the research contents and frame.The second chapter introduces some related theories and these theories are the support of the following part.The third chapter analyzes the project’s environment,market competition and project technology.The forth chapter analyzes from financial dimension and reaches a conclusion that the project possesses fine economic benefits.The fifth chapter analyzes potential risks of the project and puts forward the corresponding control measures.The study expects to provide a significant support for the successful implementation of the GAC FIAT Guangzhou project and provide a reference for the same or similar companies when they study on similar investment projects.