China to Adopt Western Model of Logistics to Cope With Booming Demand

BEIJING, March 10, 2010 - China's car companies are set to turn to a Western outsourced model of
logistics to cope with booming volumes and more demanding consumers.

Domestic carmakers have typically relied on their own captive logistics
arms, and this has also applied to their joint ventures with the principal
Western and Japanese car companies which make up the bulk of car production.
But while efficiency has risen, logistics is a specialist activity which is
not typically a core competence of an OEM.

So China is expected a move towards the model used in the rest of the
world, of employing third party logistics providers (3PLs). At present the
3PLs with the expertise are almost all foreign companies. Even where the
logistics operation is retained by a Chinese OEM, that operation is likely to
selectively seek external customers.

Li Wang, vice president at Toyota Lujie, the logistics venture between an
arm of Chinese domestic carmaker First Auto Works (FAW) and the world's
biggest car company, commented: "Lujie also has to look behind FAW and try to
speed up the co-operation with other carmakers and industry players. The FAW
Group encourages this independence as well."

The modernisation of logistics networks will be the focus of the 7th
Automotive Logistics China conference, to be held in Beijing from 18-20 April
2010.

Bringing together carmakers and logistics service providers of all types,
the conference covers the logistics of car production and delivery within
China, as well as the start (and end) of automotive supply chains which
stretch across the world.

This year Automotive Logistics China has joined the China Federation of
Logistics and Purchasing (CFLP) to organise special sessions on finished
vehicle logistics. They will incorporate the previously-separate meeting
arranged directly by the CFLP. Special delegate rates for China-based
attendees and CFLP members will help facilitate attendance.

Automotive Logistics China is supported by Gold sponsors Geodis Wilson
and United Road, by Global sponsor Wallenius Wilhelmsen, and by Silver
sponsors BLG Logistics, Ceva, Chep, NYK Logistics, Ryder and Union Pacific.

Automotive Logistics is published by Ultima Media Ltd, which provides B2B
information in print, online and at events to the global automotive industry.
www.ultimamedia.com

    Marco Polo Parkside Hotel
    BEIJING 18-20 APRIL 2010
    www.automotivelogisticschina.com

    Contacts:

    Marketing Manager: Elisabeth Quesseveur,
    elisabeth.quesseveur@ultimamedia.com , +44-208-987-0902;

    Conference chairman: Louis Yiakoumi,
    louis.yiakoumi@ultimamedia.com , +44-208-987-0944.

Contacts: Marketing Manager: Elisabeth Quesseveur, elisabeth.quesseveur at ultimamedia.com , +44-208-987-0902; Conference chairman: Louis Yiakoumi, louis.yiakoumi at ultimamedia.com , +44-208-987-0944.