China's First Automotive Finance Company Opens for Business

GMAC-SAIC Joint Venture Creates Industry Standard

SHANGHAI August 17, 2004; China's first automotive financing company, GMAC-SAIC Automotive Finance Company, Ltd. (GMAC-SAIC), opened for business today with the signing of the first consumer financing agreement for the purchase of a Buick Excelle.

The new company is a joint venture between General Motors Acceptance Corporation (GMAC), one of the world's leading financial service providers and a wholly owned subsidiary of General Motors Corp., and Shanghai Automotive Group Finance Co. Ltd. (SAICFC), one of China's foremost finance companies and a subsidiary of Shanghai Automotive Industry Corporation Group (SAIC). The new joint venture represents the latest extension of the successful partnership between GM and SAIC in China.

"The Chinese market is strategically important to GM and offers a very attractive business opportunity to GMAC," William F. Muir, president of GMAC, said at the announcement ceremony in Shanghai. "We are proud to have the first automotive finance company in China. This accomplishment reflects the excellent relationships enjoyed by GM in China and the strong support of our partner, SAIC."

"GMAC is making a long-term commitment to deliver world-class products and services in China, as well as global best practices in lending," Muir said. "Our goal is to make vehicle ownership a reality for a growing number of China's consumers"

GMAC-SAIC will initially focus on providing retail financing for vehicles manufactured by Shanghai GM (SGM), as well as those made by GM's other joint ventures with SAIC. In addition, the new company will support SGM dealers by providing financing for their vehicle inventories.

"The launch of our joint venture follows years of meticulous planning and preparation," said Hu Maoyuan, president of SAIC. "We believe that SAIC's deep knowledge of the Chinese marketplace, together with GMAC's 85 years of experience, will provide the foundation for a very successful business venture."

Christian Weidemann, general manager of GMAC-SAIC Automotive Finance Company, added, "As China gradually moves away from a cash society, more vehicle buyers are seeking financing to support their purchases. GMAC-SAIC will be ready to meet these needs. We see tremendous potential for our joint venture and we are confident in its long-term success."

GMAC-SAIC Automotive Finance Company Limited, which has registered capital of RMB 500 million (US$60 million), has more than 20 employees. A team of executives from GMAC and SAICFC oversees management at the company's headquarters in Shanghai. Field agents work with retailers in key markets nationwide, training their sales forces and supporting the growth of their business.

General Motors Acceptance Corporation (GMAC), a wholly owned subsidiary of General Motors, is one of the world's largest financial services companies, with business lines in automotive finance, commercial and residential mortgages, and insurance. GMAC has operations in 41 countries. Since its inception in 1919, it has extended more than US$1.3 trillion in credit to help finance more than 158 million vehicles worldwide.

Shanghai Automotive Group Finance Co. Ltd. (SAICFC) is a subsidiary of SAIC. SAICFC is one of China's most successful non-bank financial institutions, with registered capital of RMB 1 billion (US$120 million) and total assets of RMB 21.8 billion (US$2.6 billion) as of the end of 2002. SAICFC specializes in providing a range of services, including consumer credit, buyer's credit, financial leasing and entrusted loans. Its automotive financing business now covers all of China via the SAIC Group dealer network.