Investing US $1.5 billion, Making Hi-Quality JAC

On the eve of NPC (National People's Congress) & CPPCC (Chinese People's Political Consultative Conference), Mr. Zuo Yan an, the chairman of JAC GROUP, expressed that JAC would achieve two goals that the annual sales volume reaches 1,600,000 and the annual sales revenue reaches more than US $1.5 billion. Therefore, JAC GROUP will invest the funds involved in R&D, market, products and other aspects.

Expending R&D power in the period of Twelfth Five-Year Strategy

In the period of Twelfth Five-Year Strategy , JAC will make greater efforts to strength R&D ability. Mr. Zuo expressed that the R&D group is going to develop from 2000 to 3000. The main work of overseas R&D centers will put in passenger field.

It is reported that JAC has established five-level R&D system in the period of Eleventh Five-Year Strategy , which make the first-level---national enterprise R&D center as its core. The second-level is "JAC Italy Design Centre" and "JAC Japan Design Centre"; the third-level is national co-established organization of learning, research and production with Shanghai Tongji University, Hefei Technology University, Huazhong Science and Technology University and Tianjin University; the fourth-level is strategic alliance with overseas excellent design companies such as Italy Pennsylvania, England Lotus, Korea VENS, Austria AVL, Germany Hofer and the fifth-level is technical departments of each business unit.

Mr. Zuo expressed that JAC would improve the ability of research & development in the period of Twelfth Five-Year Strategy . Firstly, JAC will make the development process of forward direction become more mature, so as to make the efficiency of resource allocation become more efficient.

Secondly, JAC will bring in several masters in research and development group and also train some technique leaders in the auto field including the experts from Japan and Korea. The elites group will enlarge from 1500 to over 2000.

Thirdly, JAC will continue to increase the investment and form a product R&D ability system possessing comparative advantages. JAC will also further strengthen the functions of the two overseas R&D centers--- JAC Italy R&D Center and JAC Japan R&D Center , and increase the management power in system configuration, functional location, design target, management pattern and other aspects.

Creating Hi-Quality JAC with Three-Level Quality Management Systems as Guarantee

Mr. Zuo expressed that Chinese independent auto brands are facing fierce competition, because joint venture brands have squeezed Chinese independent brands. In order to be more competitive, JAC has attached greater importance to quality during the Twelfth Five-Year Plan .

Mr. Zuo said JAC has its own three-level quality management system to realize Hi-Quality JAC.

The first level is the conscious level. Guide the staffs with right quality concept to improve all workers quality consciousness. During the development, JAC has proposed a slogan, that is, never produce low-quality cars, never involve in price wars, never compete scales with others blindly. In JAC, the staffs who emphasize little on quality are not qualified staffs, while the managers emphasize little on quality are not qualified managers.

The second level is the system and standardization level. Through the measures of Perfect all kinds of management and technology standards, Carry out process standardization management; Standard on-site operation; Consistently promote the system to reach the standard; Improve quality management process , JAC staffs work according to the standardizations strictly.

By now, JAC has obtained the Certificates of IS9001 Quality Management Systems, ISO14001 Environmental Management system, OHSAS18001 Occupation Health Safety Management System. In the year 2006 and 2007, it has passed TS16949 system certification and General Armament Department s Quality Assurance Capability Inspection.

JAC system capability has been further reinforced.

The third level is the quality management tool level. China should accept, absorb and digest the essence of world quality management tool. Mr. Zuo said, JAC sticks to the quality management tools of TQM, SPC, Six Sigma and quality management methods of all workers participation, team improvement and team learning experience lab to improve products quality.

Take 1.3L and 1.5L self-produced small-emission engines as example, why SHC Company (the largest auto distributor in Brazil)will chose JAC as the partner and signed ten-year 620,000 exports agreement in total? Because JAC products have excellent performance and quality, especially JAC self-produced engines, when compared with the index of many world famous engines, JAC engines can stand out.

SHC Company believes that JAC originality is the most excellent among Chinese self auto brands. Mr. Zuo emphasized that JAC eyes on the world s highest standard from products style to craft process and adopts six sigma quality management methods during the production process which is near to zero fault management.

Mr. Zuo believed that improve staffs quality conscious and adopt the quality tools which has been improved to be effective can greatly improve quality management levels. In October last year, JAC stood out above 58 candidates and successfully got National Quality Award -the highest award in the quality area, becoming the first to get the quality award in Chinese self auto enterprises.

JAC has extracted quality culture with JAC characteristics. During the Twelfth Five-Year Plan , JAC will persist in quality JAC and quality efficiency road as well. Create Quality by Brands with Quality superior to scale and take the lead to span from Made in China to Chinese Brands in auto industry. We have the confidence that JAC quality can reach world leading level and realize value orientation in the future , Mr. Zuo said.