JAC INTERNATIONAL. Issue 11 September, Editor-in-Chief Lisa Min Managing Editor Grace Wang. Executive Editor The JAC Marketing Dept.

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1 1 Issue 11,2014

2 JAC INTERNATIONAL Issue 11 September, 2014 Editor-in-Chief Lisa Min Managing Editor Grace Wang Executive Editor The JAC Marketing Dept. Staff JAC International Company No.176, Dongliu Road, Hefei, China P.C: Tel: Fax: jacmarketing@163.com Available in-house Free of Charge This information contained in this document is for reference only, and is subject to change or withdrawal according to specific customer requirements and condition. Copy Right 2013 Anhui Jianghuai Automobile Co., ltd All Rights Reserved Reproduction in whole or in part Without written permission is prohibited Contributions and Feedback An informative and inspiring JAC International Magazine need your continual contributions and feedback. Pleases feel free to submit your company s news& events, achievement in your markets and your successful experience, photos and your comments, to the editors at lisa.min@jac.com.cn. If your contribution includes except from other sources, please indicate. The deadline for submissions is the 10 th of the month for publication 2

3 NEWS AND EVENTS CONTENTS The Annual Production Capacity of 150,000 units, JAC An Chi New Production Base was Completed JAC Mini MPV M3 Rolled off the Production Line JAC High-end Mini-truck X Series Launched into the Market Mr. An Jin Attended Asia Pacific Auto Summit and Delivered the Keynote Speech JAC Exhibits in 2014 Macao Auto Show JAC WORLDWIDE JAC Held the High-end Mini Truck Release Conference in Laos MEDIA VIEW JAC Held Delivery Ceremony of 5239 Heavy-duty Trucks Exported to Venezuela 3

4 JAC NEWS & EVENTS On October 28th, 2014, JAC new An Chi Automobile Base was officially put into operation. Meanwhile, two new production X200 (high-end mini truck) and M3 (mini MPV) rolled off the production line successfully, which presents the deep exploration of JAC in the area of commercial vehicle and passenger car. The total investment of 1.36 billion RMB, occupied area of 56 hectares and covering four automobile manufacturing processes, JAC new An Chi automobile base was completed on schedule which is on behalf of the domestic first-class level. After putting into operation, this new production base will shape the scale of annual production capacity 150,000 units and annual output value of 12 billion RMB, which also represents the current automobile manufacturing process new standard with the advantages of high-effective, intelligent and environmental-friendly. The pressing workshop adopts the international advanced high speed hydraulic press line, the largest stamping press reaches 2000T and no-load reaches 7.5 s/stroke, surpassing the industry level; The welding workshop owns min truck and mini bus two production lines and 26 units automatic intelligent wielding robot; The painting workshop uses the world s highest level water-based B1B2 exemption in coating 4

5 technology, green, environmental-friendly and energy conservation; The assembly workshop adopts the car-based production process arrangement and intelligent logistics distribution to ensure the quality of vehicle assembly. Common development commercial vehicle & passenger car JAC commercial vehicle has a very important position in the industry. The annual sales of light-duty truck is more than 200,000 units and has been maintained Top position of exportation for 14 consecutive years. And JAC high-end light duty truck has a wide range of market reputation and brand public praise. The launching of X200 greatly enriches the range of JAC light truck series. In domestic mini truck market, high energy consumption, high emission and high pollution and low performance, low equipment and low price mini trucks are common in the market. However, X200 is a green and high-end mini cargo light truck which can greatly enhance the driving experience of urban high-end logistics and comply with the policy guidance of national energy conservation and emissions reduction. Through customer tests, sample vehicle exhibition and sales, X200 gets a good reflection from market. 5

6 X200 adopts the design of ultralow cab, rear small two ply tyre, ultralow cargo platform and integrated cargo tank with the advantages of good space utilization, high load-and-unload efficiency and energy-efficient. The chassis uses domestic initiative frame-type, rectangle-type bending beams structure and the bearing capacity increases 15% compared with the same kind of traditional frame type beams. Equipped with front wheel car-based ventilated disc brakes and rear wheel drum brakes, excellent braking performance and stability. Using stable mature powertrain matching, powerful and reliable. 6

7 JAC passenger car as an up-rising star has gradually established the completed products series of MPV, SUV and sedan and double brands operation model. Since 2002, JAC MPV has achieved 500,000 units market holdings and maintained the top 3 position in Chinese MPV market with the reputation of the expert of MPV manufacturing. Currently, JAC MPV production line has developed different production series for all kinds of customers: M5 for business, M1 for family and M3 for both business and family. M3 has a fashionable sculpt, simple and practical, extra- larger space and overall size which occupy the advantage position among the same class vehicles. Take a fully consideration of manned space, cargo space, use-cost, dynamic and comfort degree. Two model engines: 1.6VVT gasoline engine and 2.0L gasoline engine with mature and reliable 5MT gearbox. It has excellent fuel economy and stable operation and 1.6L diesel engine model has been planned. 7

8 X200 and M3 are two new production stars of JAC, which will further enhance the competitiveness of JAC and has positive and profound effects on achieving one million annual sales volumes. 8

9 Since 2014 Beijing Auto Show, JAC first mini MPV M3 has got wide attention and aroused great hope from media and customers. Recently, JAC M3 officially rolled off the production line in Anhui Meng Cheng, and handed over one hundred units vehicles to the government of Meng Cheng at a time. M3 is a MPV both suitable for business and family using, and there are lots anticipated highlights of no matter of its sculpt, space, comfortable and safety. Inheriting the concept of classic design, gorgeous and business sense JAC M3 is a completed new product on the basis of MPV series and a good partner of small and middle enterprises. In terms of modeling, M3 has inherited the classic design of JAC MPV family. And its front face adopts classic three segment model design and the profile line has the same strain M5; meanwhile, integrated with current popular elements: blackened headlights and the wing shape chrome plated adornment make the body of vehicle more gorgeous and harmonious. The unique signal door design ensures the convenience as well as the beauty of whole car body. The interior trim is concise and orderly: piano lacquer, chromium plating and silver spray lacquer and other decoration; meanwhile, the layout is the same with the most of MPV, and gear up raising and concentrated decoration of 9

10 control button to ensure the excellent controls. Spacious and free space Since JAC MPV releasing on the market, its larger and flexible space has become one of powerful characteristic to impress and attract customers. And M3 as another masterwork of JAC, it also owns some obviously advantages. The oversize of M3 has reaches 4645*1740*1900mm and 2810mm extra-long wheelbase. The large size creates spacious interior room and middle, rear row knee space. Besides, the advantage of M3 space reflects on the flexible seats and space combination. The middle independent seats own hidden slid track which can move front and rear independently; foldable and side-fixing rear seats can connect rear row and middle row into one part to achieve maximum space; easy-assembling methods for customer s convenience and improving the efficiency of cargo transportation. 7 seats and 9 combination methods, 4340L extra-large cargo space to satisfy family travel, business reception and cargo transportation and other demands. Intelligent technology, humanized driving experience Based on JAC dozens of years MPV manufacturing experience and excellent gene of the second generation passenger car platform, the dynamic performance, economical efficiency and comfortable of S3 have surpassed the same-class MPV. M3 is equipped with 2.0L and 1.6VVT two model engines, excellent dynamic performance; Reliable 5 block vertical transmission, high transmission efficiency and easy operation; HPS ( Hydraulic Power Steering) brings easily steering and accurate operation; adopting a series of optimize measures such as whole vehicle lightweight design, continuously optimizing of drag coefficient, low rolling resistance tires and optimized power transmission. Ensure S3 sufficient power while improving the whole vehicle s fuel consumption rate. Besides, rich humanized equipments, independently controlling of front and rear air condition, front electric power window, ergonomic seat, remote key, three adjustable steering wheel, high quality in-car entertainment system, trip computer and other advanced equipments have completely changed the boring driving experience of MPV. Each passenger can enjoy a happy travel and sweet caress 10

11 On October 28th, JAC held M3 off ceremony as well as high-end mini-truck X series products launch ceremony in Mengcheng production base, Anhui. The smooth holding of the ceremony marks that high-end mini-truck with international leading technology has officially entered the end market. The new product successful off-line does not only make JAC light-duty trucks richer, but also demonstrates strong products research strength of JAC light-duty trucks. The total investment of JAC Mengcheng new base was 1 biliion yuan with completely new mini-truck development and production platform. The high-end mini-truck off the line is equipped with mature diesel power, and also the representative of the main models produced in JAC light-duty truck Wanbei production base. In the future, JAC high-end mini-truck X series will bring the gasoline power version into the market, forming the products portfolio covering different power, diverse levels of cabs and different wheelbases. JAC Mini-truck Leads Value New Experience of City Short Distance Logistics Vehicles As the new model keeping pace with the world leading technology, JAC high-end mini-truck X series has an eye to the adaptability of the city logistic environment, and lead the completely new value experience of city short distance logistics vehicles, providing higher-end and more efficient car choices for the end customers. JAC vice General Manager as well as General Manager of JAC International She Cairong expressed: we are glad to introduce this high-end mini-truck to the media and customers, JAC high-end mini-truck conformed to mini commercial vehicles high-end development trend. It is a strategic product incorporating JAC light-duty truck core technology resources, and representing world leading level among the same class cars. This product does not only provide high quality products choices for China customers, but also sells simultaneously in the overseas market. Jointly developed by JAC Italy, Japan and China design team, high-end mini-truck X series is decent. Its driving cab uses the low drag coefficient streamline design and the no-load height is 2 meters with the characteristic of low height and big width. Besides, it has more broadened driving view, and can fully meet the height limit demand of city roads and viaduct. In the interior, the main control panel of JAC high-end mini-truck X series is titled to the driving seat and all the touch bottoms are conveniently within your reach; 11

12 moreover, the combined driving panel is legible and the air-conditioning adopts the newest parallel flow evaporator technology, compared with the traditional laminated evaporator, its performance has increased 10%. Furthermore, JAC high-end mini-truck X series have demonstrated more specific and outstanding commercial core value, achieving more efficient operation experience. Combined with JAC research on city logistics characteristics, JAC high-end mini-truck X series has innovatively brought in the front large wheel and rear small wheel design, comprehensively reducing the height of the cargo, which is nearly 30% lower than the ordinary light-duty trucks;in the loading capacity, the cargo capacity is 8.4M3 in full load with the largest weight of 2300KG, compared with other competitors, the chassis weight is 20% lighter, and the bearing longitudinal strength has increased by more than 15%. Safe and High Efficient High-end Mini-truck X Series Helps JAC Become Mini Trucks Quality Pioneer The off line of JAC high-end mini-truck X series has marked mini trucks in China achieved new breakthrough in the security and power, filling the gap of mini trucks in the high-end segment market in China. In the security, the main cab frame of JAC high-end mini-truck X series uses high strength alloy steel and A column additional strength constructure. After the security test system tests, top pressure test, its overall structure strength has reached international mini trucks leading level. In the power, the first release model of JAC high-end mini-truck X series will be equipped with JAC mature 4DA1 diesel engine. With Bosch second high pressure common rail injection technology, this front projector pressure of the mini truck can reach 1600bar achieving more complete combustion, and the maximum power rate can reach 120kw and the maximum torque output is 380nM. JAC high-end mini-truck X series equipped with this engine can be powerful and more durable. 12

13 On November 7th 2014, the fourth China (Macao) Asia Pacific Auto Summit-The independent brand new energy automobile commercial forum was held in Macao grandly. Dongfeng Automobile, GAC GROUP, Chana Auto and JAC Motors as the Chinese independent brand excellent representatives were invited to participate in this auto show. And JAC board chairman Mr. An Jin delivered the keynote speech of Developing the civilian new energy vehicles and realizing the dream of a powerful Chinese auto industry. First, Mr. An Jin gave a brief introduction of the great achievements and breakthrough of JAC new energy vehicles and elaborated the major problems of Chinese new energy vehicle commercial exploration in terms of cost control, technological breakthrough, development environment and business model innovation. Then, Mr. An Jin gave some suggestion of how to speed the process of new energy vehicle commercialization such as developing civilian route and speeding market application standard and supporting system construction. 13

14 Since 2014, the Chinese government has paid a high attention to pushing new energy vehicle industry development. As one of the Chinese new energy vehicle leader, JAC has accumulative sold more than 6000 units pure-electrical vehicles and 60% market share is for private customers, and the accumulated mileage nearly 100 million kilometers and the highest range of more than kilometers of one vehicle. JAC also has achieved great accomplishments in the field of electrical bus and light-duty truck. From sedan, bus to light-duty truck, JAC has formed a clustering advantage of full completed pure-electrical auto product lines. And JAC has created a mature and commercialized new energy vehicle auto industry system and the new energy vehicle will also become the main force of JAC further development. 14

15 On November 7, 2014, the fourth China (Macao Auto Show) was grandly held in Macao Venetian gold convention and exhibition center. JAC with its all series products: passenger car, light-duty truck, heavy-duty truck 8 models took part in this auto show. The rich product lines and excellent vehicles attract numerous of visitors. With the cheering of JAC exclusive models, JAC booth was crowded with interested customers and media. Accompanied by the board chairman of JAC Mr. An Jin, Mr Ho, vice President of the Chinese people's political consultative conference came to JAC booth and gave high praise and recognition to JAC products. 15

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17 This Macao Auto Show attracts many countries including more than 90 auto brands to participate. And the scale of exhibition reaches 62,000 square meters, becoming a displaying channel of JAC Motors to Asian auto markets. 17

18 JAC WORLDWIDE On November 5th 2014, JAC held the high-end mini truck release conference in Vientiane the capital city of Laos. With the witness of local main media, distributors and customers, the general manager of JAC International and the general distributor of JAC in Laos together unveiled the image of high-end mini truck JAC high-end mini truck is the latest product of JAC in domestic which released in this press conference and also will be the representative of JAC brands in Laos and help to enhance the image of JAC in Laos. Local 2 mainstream TV media and 5 famous newspapers gave a living report. JAC products will be hot-selling in Laos market again. 18

19 The general manager of JAC International Mr. She Cairong expressed the brand concept of JAC Integrity& Quality to local media, distributors and representatives of customers. In 2015, JAC will provide more high quality and reasonable price products to Laos markets and become the leading benchmark of JAC auto brands in Laos. 19

20 MEDIA VIEW On November 17th, according to the purchasing requirement from Ministry of Transport of Venezuela, JAC exported 200 units of heavy-duty trucks which is the first batch of China largest heavy-duty trucks order-jac 5239 heavy-duty trucks order from Venezuela started its delivery in, marking that JAC has made a great breakthrough in the exports scale and speed with historic meaning. 20

21 Reliable quality wins 5239 exports order South America market is one of the JAC important markets. Since entering Venezuela in 2006, JAC has won favorable comments and recognition from the local customers, as well as batch purchase from Ministr of Oil of Venezuela, and large transportation company and so on. In order to further meet the increasing demands of the local market, as well as to provide valuable products to the customers by decreasing the costs, JAC started the establishment of KD plant with the local partner in 2012, and till now, the KD plant has accumulatively assembled and sold all kinds of commercial vehicles more than 6000 units and the capacity of the plant has increased to units per year with the assembly ability of pick-up, light-duty trucks and heavy-duty trucks. JAC KD plant in Venezuela has brought more than 600 direct and indirect employment chances to the local market and strongly promoted the local economic development. In 2013, the sales of JAC light-duty trucks in Venezuela has passed GM light-duty trucks to become the best-selling commercial vehicle brand among Chinese commercial vehicles brands, and even the best-selling commercial vehicle brand among the global commercial vehicles brands. 21

22 In November 2011, Venezuela president announced the establishment of national logistics Management Company, and planned to buy vehicles to enhance the economic development in Venezuela with China Venezuela funds, thus the purchasing of Venezuela heavy-duty trucks entered the preparation phase. With advanced research and development, design and test center, leading manufacturing platform, global resources guarantee system and JAC brand reputation in South America market, JAC won the recognition from Venezuela government. Moreover, after 5 months negotiation, JAC signed the 5239 heavy-duty trucks purchasing contract with Ministry of Transport of Venezuela,, CORPOVEX S.A. in July this year. 22

23 Energy-saving and powerful, JAC creates value for customers After the signing the contract, JAC internal departments has carefully researched and discussed on the local laws and regulations, as well as the contract requirements, and JAC has carried on large amounts of adaptability, reliability tests and homologation tests, as well the strict control of the products quality until the delivered products fully met the demands of Venezuela customers. 23

24 The first 200 units heavy-duty trucks delivered in the ceremony include dumper, tractor and tank truck. Through high quality products delivery, JAC will surely provide convenience to Venezuela people, make active contribution to the improvement of Venezuela transportation condition, and let Venezuela customers enjoy the high quality life brought by JAC said by JAC vice president as well as general manager of JAC International. 24

25 Recently, with forwarding design conception, first-class commercial vehicles manufacturing equipment and craft, advanced test and quality management system, JAC heavy-duty trucks have made new quality benchmark for China heavy-duty trucks in the reliability, stability, security, energy-saving and comfortablity. As commercial vehicles are means of production, customers attached great importance to the costs. Reducing the vehicles using costs, especially the fuel consumption costs will create more value for the customers, and that is what JAC heavy-duty trucks have always paid attention to, so JAC heavy-duty trucks use high efficient energy saving engine with powerful power, high torque, and meanwhile, JAC has optimized the heavy-duty trucks chassis system based on the complete match of engine performance and the vehicles to make its economy and power stand at the industry leading position, besides, JAC has largely reduced wind age to effectively reduce the oil consumption. 25