Share's code?

000550

Share's Name?

Jiangling Motors

No.?

2013-035

200550

Jiangling B

Jiangling Motors Corporation, Ltd.

Public Announcement on Resolutions of the Tenth Session of the Seventh Board of Directors

Note: Jiangling Motors Corporation, Ltd. and its Board members undertake that the information disclosed herein is truthful, accurate and complete and contains no false statement, misrepresentation or major omission.

I. Informing of the Meeting

The Board of Directors of Jiangling Motors Corporation, Ltd. (hereinafter referred to as "JMC") sent out a written meeting notice to directors, supervisors, the members of the Executive Committee and relevant persons on September 26, 2013.

II. Time, Place & Form of Holding the Meeting

The tenth session of the seventh Board of Directors was held in the conference centre on the second floor of the Administration Building of JMC on October 9, 2013. The procedure of convening and holding the meeting complied with the stipulation of the relevant laws, regulations and the Articles of Association of JMC.

III. Status of the Directors Attending the Meeting

Eight Directors shall attend this Board meeting and all directors were present.

IV. Resolutions

The directors present at the meeting approved the following resolutions based on their discussion:

I. Temporary Dealer Credit Line Increase

The Board of Directors approved to increase temporary dealer credit line RMB 450 million. The validation period is from October 15, 2013 to June 30, 2014.

There were 8 votes in favor of the proposal, 0 vote against, and 0 abstention.

2. Xiaolan Land Purchase

The Board of Directors approved acquiring the land use right for the 115 Mu Greenfield, located inXiaolan Economic Development Zone,Nanchang City, P.R.C., with a consideration of no more than RMB 24.63 million, and authorized Mr. Wang Xigao, the Chairman of the Company, to sign the relevant land transaction contracts.

There were 8 votes in favor of the proposal, 0 vote against, and 0 abstention.

In accordance with the Investment Agreement signed between the Administrative Committee of Xiaolan Economic Development Zone,Nanchang City, P.R.C.(hereinafter referred to as "Xiaolan Committee") and the Company in April 2008, Xiaolan Committee committed to reserve a land of 1000 mu for the Company's future development, and should grant the Company the land use right at the most favorable land price pursuant to the then valid laws and policies and through legitimate processes. Because the 2000 mu land of the Company's Xiaolan plant has been fully planned, the Company intends to purchase another 115 mu land use right in Xiaolan Economic Development Zone.

3.

The Board of Directors approved the J08 Programwith a total investment of RMB 1233 million (including previously approved program long lead funding of RMB 388 million), and submitted it to the Shareholders' Meeting for approval.

There were 8 votes in favor of the proposal, 0 vote against, and 0 abstention.

J08 is a SUV product to be introduced by JMC from Ford Motor Company. The product will broaden JMC portfolio in SUV segment. Job#1 of the program will be in the first half of 2015. The investment for the program will be spent mostly in relevant tooling purchase and engineering development fee.

4.J08 Vehicle Program Supplier ED&T Cost Payment Agreement Approval

The Board of Directors approved the J08 Vehicle Program Supplier ED&T Cost Payment Agreement between Ford Motor Company ("Ford") and the Company, and authorized Ms. Xiong Chunying, the Executive Vice President of the Company, to sign the Agreement on behalf of the Company. According to the aforesaid Agreement, JMC shall pay US $11.24 million (equal to RMB 70 million) to Ford for the assumed supplier ED&T cost and submit it to the Shareholders' Meeting for approval.

Whereas Ford, representing over 30% of the outstanding shares of the Company, is the second largest shareholder of the Company, the transaction herein constitutes a related party transaction. When voting on the proposal, Director John Lawler and Director Yuan-Ching Chen withdrew from the voting and all the other directors agreed with this proposal.

Please refer to the Public Announcement on the Related Party Transaction of JMC in China Securities, Securities Times and Hong Kong Commercial Daily on October 10, 2013 for details.

5. J17 Engine Localization Program Long Lead Funding Approval

The Board of Directors approved the J17 Engine Localization Program long lead funding of RMB 189 million.

There were 8 votes in favor of the proposal, 0 vote against, and 0 abstention.

J17 engine is a series of diesel engine introduced by JMC from Ford Otosan. JMC plans to cooperate with Ford Otosan to localize the series engines. The long lead funding for the program will be spent mostly in engineering development fee and facility & tooling purchase.

Ford Otosan is a joint venture between Ford and Koç Holding.

6. Director Change Proposal

Ford Motor Company nominated Mr. Manto Wong as a candidate for Directoron the Board of Directors of JMC; Mr. David L. Schoch will not serve as Director on the Board of Directors. The Board of Directors agreed to submit the aforesaid director nomination by Ford Motor Company to the Shareholders' Meeting for approval.

There were 8 votes in favor of the proposal, 0 vote against, and 0 abstention.

Mr. Dave L. Schoch will not hold any post in the Company.

Mr. Manto Wong's Resume:

Mr. Manto Wong, born in 1962, holds a Bachelor's Degree in Computer Engineering and a Master's Degree in Business Administration from the University of Michigan, U.S.A. He presently serves as Vice President and Chief Financial Officer, Ford Motor (China) Ltd. Mr. Manto Wong held various positions including Director of Business Strategy for Asia Pacific of Ford, Chief Financial Officer of Ford's Japanese operations, Chief Financial Officer of JMC, and Manger of U.S. Market Analysis Department of Ford. Mr. Manto Wong does not hold any share of the Company, and in the recently three years, has not ever received any administrative penalties for violation of the applicable securities laws, regulations or rules. Mr. Manto Wong's qualification as a director candidate complied with the relevant requirements of the Company Law of PRC and other applicable laws, regulations or rules.

7. Notice of Holding 2013 Second Special Shareholders' Meeting

The Board of Directors approved the Notice of Holding 2013 Second Special Shareholders' Meeting.

There were 8 votes in favor of the proposal, 0 vote against, and 0 abstention.


V. Opinions from Independent Directors

Independent directors, Mr. Shi Jiansan, Mr. Vincent Pun Fong KWAN and Ms. Wang Xu, expressed their opinions on the abovementioned Director Change Proposal and the Related Party Transaction Proposal as follows:

1. We have been informed of the meeting agenda prior to the meeting.

2. After the review of Mr. Manto Wong's resume, we believed Mr. Manto Wong'squalification as a director candidate complied with the relevant requirements of the laws, regulations and the Articles of Association of JMC and agreed the nomination.

3. We have known details of the relevant agreement and believe by careful review that it's necessary and reasonable that JMC pays the supplier ED&T cost to Ford regarding J08 vehicle program.

Board of Directors

Jiangling Motors Corporation, Ltd.

October 10, 2013

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