"China Business News": On the morning of March 5, Premier Wen Jiabao of the State Council made a report on the work of the government to the Fifth Session of the Tenth National People's Congress, which mentioned that it was necessary to support enterprises "going out." Earlier, it was reported that Wanxiang Group intends to acquire some of the assets of Delphi Group, a component manufacturer in the United States, and Ford’s parts and components business. What is the current progress?
Lu Guanqiu: Wanxiang “goes out†earlier, and the purpose of “going out†is that we believe this is conducive to the development of enterprises and the optimal allocation of resources. With regard to the acquisition of Delphi, everything is still under discussion. The acquisition of GM's Delphi company is mainly because it can provide us with the required technology, but now the negotiations are not over.
“China Businessâ€: According to our understanding, the overseas investment rate you have acquired has now reached 100%. How is this achieved?
Lu Guanqiu: We have acquired 18 companies overseas. Some of these companies have already returned more than 100% of their investment. Why is universal development so fast? The reason is simple. First of all, because of the exchange rate, the renminbi is currently appreciated; followed by technology, technology patents after mergers and acquisitions are in our hands. With these two items, profits are generated. At present, Wanxiang’s acquisitions are mainly in the United States, and in Europe, the products are mainly sold to Russia.
"China Business": Do you think the future of China's auto industry will be more "going out"? Is the timing of "going out" right now?
Lu Guanqiu: Now is the best time for Chinese companies to “go globalâ€. Not only because of state support, but also in line with business development needs. I believe that more and more auto parts companies and auto companies will "go global" and participate in the integration of international resources.
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