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Issue 9，2014

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JAC INTERNATIONAL Issue 9 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: 230022 Tel: +86 5512296885 Fax: + 86 5512296097 Email: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 10th of the month for publication

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NEWS AND EVENTS

JAC Released its First Mini SUV S3, Opening a Young Life Style of Drive, So Easy

JAC S3 (Mini SUV) monthly sales volume has made a breakthrough 10,000 units

JAC IEV First Batch Exported to the USA

JAC WORLDWIDE

JAC Passenger Car Exhibited in Iran Mashhad Auto Show

JAC North Africa 4S Shop Grand Opening

JAC Celebrates its First Birthday in Ukraine

MEDIA VIEW

New Base of JAC Navistar Diesel Engines Put into Production

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JAC NEWS & EVENTS

On August 27th, JAC first mini SUV S3 was officially launched into the market which is a easy-driven SUV for urban young customers and was born from JAC newest second passenger car platform. JAC S3 completely displays the requirements of urban young people that is easy, convenient and economic, which inspires a „Drive, so easy‟ life style for young people.

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The exterior design of S3 is dynamic and the overall dimensions are 4325×1765×1660 mm (L×W×H) and the wheelbase is 2560mm. The front face of S3 has adopted the bottle-mouth design and blended electroplating decoration. The headlamps sculpt is very fashion and practical-high and low light partition design combined with halogen light source and LED daytime running lamps.

In terms of interior trim, the whole is mostly black with orange wrapped. The layout of center console is easy to control and its silver decoration strip makes the visual effect further enhanced. And the steering wheel is wrapped with leather and is equipped with multi-function button to adjust multimedia and cruise control system.

Individually tailored to young customers, let’s have fun with S3

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Loving show, loving play, loving freedom and loving save money are the requirements of contemporary young people for car living. JAC S3 has made good preparation for young customers in terms of model, specification, operation and others.

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JAC S3‟s cool exterior gives the most satisfaction to young people who love show off. Origin from JAC Italy R&D center masters‟ design, S3 was born to have unique characteristic like bottle mouth front face, streamline body and daytime driving lamps. The other character of the contemporary young people is loving play, and S3‟s powerful dynamic could make you play high. 1.5VVT engine with6MT and CVT auto transmission makes the Max.power reach 83Kw and the Max. torque reach 146N.m, which make young people more free and easy on the road.

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When most of people think SUV is hard to control, JAC S3 has brought a revolution to freedom- loving young people. ESP (Electronic Stability Control) system, EPAS (Electronic Power Advanced Steering), HAS (Hill-start Assist Control) and other advanced equipments make young people enjoy the driving pleasure of SUV. To satisfy the low carbon and environmental-friendly life style, the fuel consumption per hundred kilometers is 5.9L and 200,000 kilometers warranty during 5 years.

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What's the good car? To rational and high taste contemporary young people, easy-driving and intelligent should be put in the first place. With the launching of JAC S3, a „Drive, so easy‟life style has been opened for young people because of S3‟s low price, high specification and low energy consumption. JAC will further perfect its service system and enhance its brand experience to let young people enjoy the truly driving pleasure.

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JAC the newest car model –S3 (mini SUV) has became a hot selling model in Chinese automobile market. The creative internet launching conference attracted more than 2 million people to join in and sold a record of 900 units in single day. Just 27 days after launching into market, JAC S3 sales volume has made a breakthrough 12,127 units and became an excellent dark horse of Chinese automobile market.

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In Chinese automobile market, 10,000 units sales volume per month is a landmark of success, which means this car model has been completely satisfied with the demand of customers in terms of its brand image, quality and performance. Therefore, this is of great significance to S3.

It is reported that JAC has made a detailed investigation to 100 ages of 25-30 young people in the beginning of product R&D. And after S3 debuted in front of the public, JAC collected the feedback of young people in many ways and timely made targeted adjustments. In dynamic system, S3 equipped with 1.5VVT engine and 6MT, CVT ATM, and Maximum power is 83Kw and Maximum Torque is 146Nm with EPS, EPAS, HAS and other intelligent equipments.

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The segment market of mini SUV has the fierce competition and few of models can reach 10000 units monthly sales volume. The hot-selling of S3 first set up the „Drive, so easy ‟value benchmarking in mini SUV market and successfully lead the trend of consumption in this segment market.

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By virtue of its fashionable sculpt, excellent quality, perfect service system and reasonable price, JAC S3 achieved a breakthrough of 10,000 units in the first month sales which is to be expected. JAC will strengthen its advantages and launch more new products to overseas and domestic customers.

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Now, „Green and environmental-friendly‟ hasbecome the central theme of global development and energy-saving and emission reduction electric vehicles are very popular amongyoung people. On 3rd September, JAC hld the delivery ceremony of first batch IEV (Electric vehicle) to the USA, starting its green journey to America. It‟s reported that the order marks JAC IEV has already officially entered North America developed countries, creating the precedent of Chinese pure electric vehicles mass launching into overseas developed markets and bringing new choice to America customers for green and low carbon driving.

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Exquisitely preparing, JAC makes the layout of American market

America is the second largest auto market in the world as well as the largest electric vehicle market which has the fiercest competition among global electric vehicle auto manufactures. At the end of 2012, GTA and JAC began the cooperation of bringing JAC IEV into the USA market. After one year business negotiation, technical improvement and production adaption, GTA and JAC signed the framework agreement of 2000 units J3 IEV exported to the USA in August 2014.

The exported JAC IEV are based on the platform of JAC fourth generation electric vehicle which can satisfy America customers total requirements through power system and car body lightening and motor controller software, battery, charging system and EPS special parts technical improvement. It also has passed and reached Federal Motor Vehicle Safety Standard FMVSS500.

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JAC IEV has got comprehensive improvements of driver module, battery unit energy, driving range, operating performance and other key indexes. What‟s more, the whole vehicle uses the latest lightweight design and the construction of vehicle has been completely optimized. According to the report, this model adopts the integrity center of mass concentrate powertrain assembly design which effectively reduces the vibration and noise; and the battery pack makes maximal use of physical space with high safety and replaceable.

Bringing ‘Green Tornado ’to the USA

JAC officially started the layout of new-energy vehicles during the “Eleven-fifth” period, after the research and practice, it chose the pure electric and plug-in hybrid as the technology road and produced the first-generation IEV electric vehicles. After the research and improvement of four generation electric vehicles, JAC has created the largest scale of pure-electric vehicles demonstration operation, keeping the top position in China new-energy vehicles industry for four years with the accumulative sales of over 6000 units and the single driving mileage of over 100,000 units. Currently, JAC has created the most mature and the largest scale new energy vehicles industry system, bringing real benefits to the customers, sweeping “green tornado”.

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And right now, the ‟green tornado‟ is blowing towards the USA. It is learnt that JAC partner in the USA is GreenTech Automotive (hereinafter called GTA). GTA is a company who is devoted to the development, production and sales of the environmental friendly automobiles with reasonable price, and its main marketsarein the developed countries such as the USA, European countries. In 2013, GTA Corporation became the electric vehicles supplier of United States Department of Defense. The sales network of GTA has covered the developed countries of the USA and west Europe and the customers include governments, post offices, large playgrounds and large companies. Although this is the first time that GTA cooperated with China automobile enterprise, JAC high requirement for the quality, performance and specification of the products gave confidence to GTA. ‟JAC manufacturing ability and products quality are the acknowledged well known, and we believe that the cooperation between JAC and GTA in the USA will win the trust and favors of American customers. „said GTA board chairman Wang Xiaolin.

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There are two strategic lines in JAC global layout: one line is the geographic line, the first direction is to take the roundabout to west Europe from east Europe, Middle East Europe and South Europe, and the second direction is to take the roundabout to North America from South America, Middle South America and finally enter the global market, while the other line is to start from the simple products business to the establishment of KD plant, and joint venture, and to start from the output of products, technology to the output of management and capital. JAC exporting electric vehicles to the USA is an important measure that JAC orderly promotes its global business along the strategic line and also a step forward with milestone significance. „To share with more global users of JAC new-energy vehicles achievements, to let them enjoy the energy saving environmental friendly transportation and the green life brought by technology innovation.‟ Vice-general manager of JAC as well as General Manager of JAC InternationalShe Cairong expressed that “JAC will stick to the development road with efficiency, quality, technology, characteristics and scale, and provide better products and service to the global users based on JAC superior export experience and perfect overseas network system. ”

Related links:http://europe.chinadaily.com.cn/business/2014-09/03/content_18540078.htm

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JAC WORLDWIDE

Mashhad (Arabic: Ma had, English: The place of Martyrdom) is the second largest city of Iran and the capital of Khorasan Province, one of the holy city of Shia muslims. It locates in the Northeast and also the famous tourist resort of Iran.

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From September 2 to 6, 2014, Iran Mashhad Auto Show was held in the conference center of Mashhad. As the second largest Iran auto show, it attracted 112 auto manufactures and spare parts supplies from Iran and overseas including JAC, Chery, Lifan, Chang'an, MG, Greatwall and others 12 Chinese home-growth brands. Chinese independent auto manufactures have becoming the focus of this auto show and JAC has attracted great concerns for its largest scale and propaganda.

In this auto show, JAC exhibited four car models – J5, J5MT and S5 (two models). And J5 MT is painted with golden color, outstanding, attracting numerous of visitors to watch and inquiry. What‟s more, S5 has been highly recommended in the auto show and it is expected to launch before the end of the year. We believe that JAC will be more competitive with the launching of S5 and JAC brand image also will be enhanced in Iran.

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On 13th September 2014, JAC general manager Xiang Xinchu and the vice general manager of JAC International Zhang Peng led JAC delegation to visit Algeria Blida and attended the opening ceremony of JAC light truck first 4S shop in North Africa. This 4s shop is located at the side of highway and is invested 12 million us dollar, covering 4000 square meters. It is a great achievement of JAC light duty truck in Algeria market for 15 years‟ continuous cultivation and the brand image of JAC will be greatly enhanced in Algeria.

At that day, the Turkish ambassador in Algeria, government official, mainstream media and distributor sales representative witnessed this grand ceremony together. Mr. Xiang Xinchu delivered a warm speech and held the press conference with Emin Auto CEO and announced the preparation of JAC Plant in Algeria.

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The famous Algeria television made an exclusive interview with the CEO of EMIN AUTO and local popular auto magazines reported this event. The cooperation between EMIN AUTO and JAC have undergone 15 years, and the market volume of JAC light duty trucks in Algeria has reached approximately 30,000 units through EMIN AUTO nationwide 48 networks, becoming the Top commercial vehicle brand. JAC HFC 1040 light truck has become the star product to each Algeria family.

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JAC will further enrich the product lines and N-series light trucks are launching into market in batches which also win the high praise from the terminal customers. Then, JAC high-end mini truck and wide-body trucks will bring into Algeria in succession and take test.

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One year ago, on September 18, 2013, the name of JAC first time appeared in Ukraine market. Now, JAC celebrates its first birthday in Ukraine.

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Time flies, in a short one year, JAC distributor in Ukraine has always adhered the principle of „Putting customer first‟ to carry out various works and never slack. Elaborate planning each promotional activity and providing intimate service, which all mark the business philosophy of „customer-oriented‟. Each solid step and each little progress of JAC brand in Ukraine are still vivid in our mind.

On September 18th 2013, all series JAC passenger car (J2, New J3, J5, J6 and S5) officially launched into Ukraine. Ukraine Bogdan Group CEO, Bogdan-Autotrade general manger and JAC Motors vice-general manager attended the launching ceremony. There are 22 sales networks and 70 units sales volume in just half of one month, entering into Top 40 of Ukraine auto sales.

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On December 17th 2013, in the modern plant of Bogdan Group in Ukraine Cherkassy State, JAC with its Ukraine partner witnessed the first J5 roll off the CKD assembly line. JAC Motors general manager Xiang Xinchu , the vice general manager of JAC International Zhang Peng and Bogdan Group CEO attended this off-line ceremony.

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On March 1st 2014, under the great help of distributors, „Go Brazil Goal‟ S5 World Cup propaganda started from Ukraine.

In April 2014, Ukraine distributor won the honor of „JAC 2013 Best KD Plant‟

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It is worth mentioning that JAC has achieved 5000 units‟ sales volume in Ukraine market by September 2014, especially in May, JAC successfully entered into terminal sales Top 25 and covered 2% market share.

Rely on exquisite technology process and reliable outstanding quality, JAC not only wins the trust from distributors but also gain the praise from terminal customers. We believe that JAC will continue to make progress and achieve more brilliant accomplishments.

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JAC, Happy Birthday!

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MEDIA VIEW

New Base of JAC Navistar Diesel Engines Put into Production

On September 25th, Anhui Jianghuai Navistar Diesel Engine Co. Ltd. held the ceremony for completion of new production base as well as for the off line of the first MaxxForce engin. Completion of the new base means that JAC Navistar MaxxForce brand series products have entered the mass production phase, and also it has provided the strong guarantee for the introduction of JAC and MaxxForce brand following products to the market.

JAC Chairman Anjin, Navistar Chairman, Chairman of Anhui Jianghuai Navistar Diesel Engine Co. Ltd. and members of board of directors together attended the ceremony.

Anjin expressed that the off line of world advanced MaxxForce engines means that Navistar has the world top class engine manufacturing base, which is under the efforts of all the relevant parts and laid the solid foundation for mutual parts further cooperation in the future.

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JAC Navistar has the annual production capacity of 200,00 units diesel, and the current mass products include the three series diesel engines of JAC 2.8L��4DA1��,MaxxForce 3.2L and MaxxForce 4.8L,besides, JAC 2.7L and MaxxForce 7.2L diesel engines will be put into production in the near future. In the future, JAC Navistar will also consider bringing in the diesel engines covering 9.3L to 13L, becoming the diesel engine manufacturer with products covering 2.7L to 13L.

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Sincere Cooperation Creates World First Class Power Base

2 years after JAC Navistar Company was established, JAC and Navistar tried their best to ensure the new base smoothly put into production, and meanwhile achieve complete integration of China and foreign managers with different culture background.

Navistar Chairman said that I am very glad to celebrate the important milestone moment with my partner JAC. The efforts our both parts made to bring the most advanced clean engine technologies to China has ensured the joint venture strong, successful and sustainable development. We hope that we can contribute more to the application of China clean energy and the continued improvement of engine efficiency when we pursue more development chances.

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In order to create the international most advanced engine production base, both cooperated parts have devoted a lot of human resources and materials. Within two years, they have completed a lot of work including the plan and establishment of production line, products adaptation development, staff training, products tests to sales service and spare parts supply. Right now, JAC Navistar has formed the supply system with 160 spare parts enterprises, and the establishment of sales service systems has also been started, achieving the operation of production, sales and service.

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Chairman of Anhui Jianghuai Navistar Diesel Engine Co. Ltd. expressed that during the past two years, we have developed joint venture team to make the products adapt to Chinese customers‟ needs and establish the advanced manufacturing plant, which has laid the foundation of JAC and Navistar further cooperation. The plant represents an important milestone and witnesses the achievement we have made by joint efforts.

The new engine production base has covered 136,000 square meters with the construction area of 93,000 square meters, including offices, research & development center and 200,000 units‟ soft production lines, and now there are more than 700 workers. Moreover, six high precise soft engines production lines including CNC (Computerized Numerical Control) machining center, automatic assembly line, automatic painting line and high precise measuring equipment make JAC Navistar become the world leading diesel engine manufacturing base.

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It is worth mentioning that except for the industry leading automatic machining equipment such as Germany CNC machining center and German horning; the key procedure has adopted Italy closed loop control machining, and any processing parts with the flaw cannot enter next procedure. After the strict checks at all level s, and finally passing the cool engine and heat engine tests, the engine can roll off the line.

JAC Navistar Engine New Base doesn‟t only have high-level manufacturing system, but is also a green manufacturing base. The plant design use ground source heat pump air conditioning system, which can help the energy consumption 30% lower than the central air-conditioning, besides, machining coolant filters system and pollutants, waste purification treatment system can reduce the influence of production to the environment to the lowest level.

Leading Technology Forms Diesel Engine Power Market New Layout

The off line of MaxxForce power products marks that China new generation medium and light diesel engine power is coming.

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The first off-line MaxxForce 3.2L diesel engine is the new generation light diesel power products Navistar developed with many years technology accumulation and rich research experience. The engine model is 4 cylinder 16 valves structure with the maximum power of 118kw/3000rpm,the maximum rated power of 450N.m/1500-2200rpm and the lowest fuel consumption under the full load is 200g/kW.All the index of the engine keeps the leading positon in the world.

MaxxForce 3.2L diesel engine applies the ultra-low friction coefficient valve system, leading DAVNT double shaft variable turbocharged, cross intake and exhaust technology, grading combustion technology with 1800 bar High pressure common rail fuel injection system helps the engine reach 310N.m high torque when the engine is 1000 rp,.MaxxForce brings stronger power and energy saving experience to the users in power, fuel economy and reliability.

Because of the light design cylinder block and cylinder head, the complete weight of MaxxForce 3.2L engine is only 315kg, effectively improving transport efficiency and reducing the complete vehicles‟ fuel consumption. High efficient electric control system EGR can not only satisfy National IV emission standard, but also can be upgraded to Euro V and Eero VI.

It is worth mention that the double-shaft variable turbocharger technology used in the engine can improve the transient response of the engine in the whole operating range, greatly improving the engine power, economy

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and emission performance, and meanwhile increase the engine reliability. MaxxForce diesel engine represents the latest achievement the current light diesel engine has made.

MaxxForce 4.8L diesel engines have the highest torque and the lowest fuel consumption.The lifetime of this engine can reach 500,000 kilometers. It is an economic and reliable products .The series engine is 4 cylinder 16 valves.Its maximum power rates is 140kW/2200rpm, and the highest torque is 720N.m/1200-1600rpm with the lowest fuel consumption rate in full load of 194g/kW.h, fully meeting the power demands of light trucks, medium trucks and coaches.Advanced SCR (After-treatment system) can upgrade to National IV emission standard.