Top Biz News
Fugitive Yang sets out his vision for the future
By Li Fangfang (China Daily)
Updated: 2010-01-11 08:00
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However, Yang's ambitious plan, as well his individual social status, may arouse suspicions in some quarters.
Yang has been famous for his capital management activities. When he operated the Rover project for Brilliance in 2001, he successfully maneuvered 1 billion yuan capital to finance 33 billion yuan.
"This time, I will also use the small capital to finance huge funds," said Yang.
However, Wang Xiaolin, once Yang's partner for starting his vehicle project in the US, said he didn't think Yang could finance $10 billion with a relatively few million dollars.
Jia Xinguang, a senior auto analyst based in Beijing, agreed with Wang.
"I don't believe that Yang's plan is practicable," he said.
"Where is the giant market for 4 million vehicles from one automaker?" asked Jia. "Even if he can sell 3 million cars in China, it's impossible for Yang to reach his target in the stagnant US market."
Zhang Lidong, an auto commentator, said that "nobody can ignore Yang's success at Brilliance in years past. But at that time, there was the opportunity to succeed for car producers. However, in such a current fierce competitive domestic auto market, how to sell the cars is key to winning."
Zhang believes finding the right place to sell new branded vehicles in the intensive auto market, is harder than establishing a new plant.
Another commentator, Cheng Yuan, said that he thought Yang's plan was a "castle in the air".
"He doesn't have a deep understanding of China's auto market nowadays because he has been away for a long time. He has to realize one point: China is no more in need of production capacity," he said.
Cheng also questioned why people would buy a Zhengdao car over the many other brand and model choices that exist in the China market which have been accepted and are now familiar with Chinese consumers.
"I cannot believe that Yang can exclusively produce new energy cars with the most advanced technology in the world. All the auto conglomerates are trying to do that," he said.
Jia also raised doubts about Yang's "third-generation engine technology" which it is claimed will fuel a car for 300 kilometers with one liter of gasoline. "It's impossible for Yang to improve the technology by such a big step when the ideal energy consumption of 50 kilometers per liter gasoline is still in the test phase right now," he said.
Most of the economical cars in China now consume 8 to 10 liters of petrol for a 100 kilometer drive.
Yang himself admitted there were no certainties.
"I know there is a huge risk this time in restarting my business in China's auto industry," he said. "If I meet any failure, I will end my career."
According to a survey conducted by ifeng.com, the portal of Hong Kong's Phoenix satellite television station, 55 percent of respondents believe that Yang's plan is possible, but will encounter many difficulties, while 45 percent think Yang's green car empire ambitions are unrealistic.
However, 64 percent of the respondents said that if Yang could launch his car with third generation engine technology in 2012, they would buy it for its fuel efficiency.
His plan aside, whether Yang will return to China is not publicly known.
When Yang fled China to Los Angels in 2002, he was a fugitive whose arrest the Chinese government has approved.
"The case involving Yang is not yet over, and Yang is still on the wanted list. If he returns to China, he would lose his freedom and go to prison," said Zhao Xueqiang, a lawyer in Beijing.
Zhao added that if 52-year-old Yang was really eager to start his business in China, "he should surrender himself to justice and cooperate with the procuratorial bodies to finish the Brilliance dispute with the Liaoning government first."
