Share's code?

000550

Share's Name?

Jiangling Motors

No.?

2013-036

200550

Jiangling B

Jiangling Motors Corporation, Ltd.

Public Announcement on the Related Party Transaction

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.

The J08 Vehicle Program Supplier ED&T Cost Payment Agreement between Ford Motor Company ("Ford") and the Company was approved at the tenth secession of the seventh Board of Directors of Jiangling Motors Corporation, Ltd. ("the Company" or "JMC") on October 9, 2013. Relevant items of the related party transaction are shown as follows.

I. Brief Introduction

Boardof Directors approved the J08 Vehicle Program Supplier ED&T Cost Payment Agreement between Ford Motor Company 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 (equal to RMB 70 million) to Ford for the assumed supplier ED&T cost and submit it to the Shareholders' Meeting for approval.



J08 is a SUV product to be introduced by JMC from Ford Motor Company. The Board of Directors had approved to pay engineering service fees of US$ 41.6 million or RMB 259 million to Ford for the Ford support in the initial stage of the J08 vehicle program on December 21, 2012.



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.

II. Brief Summary of the Related Party

Company Name: Ford Motor Company

Headquarter Location: Detroit, U.S.A.

Chairman: William Clay Ford, Jr.

Enterprise Type: a USA-based listed company

Business Scope: design, manufacturing, assembly and sales of cars, trucks, parts and components, financing, leasing of vehicles and equipment, and insurance business.

III. Main Contents of the J08 Vehicle Program Supplier ED&T Cost Payment Agreement

i. In the J08 vehicle program, Ford needs to contract the suppliers of J08 vehicle program to conduct engineering, design and testing on specific parts in accordance with Ford's requirements (the "ED&T"), so Ford shall make compensation for the ED&T. JMC shall share the supplier ED&T cost accordingly per volume.

ii. JMC shall pay to Ford the supplier ED&T cost in the total amount of USD 11,238 thousand. The abovementioned cost shall be paid to Ford quarterly and paid off before the second quarter of 2015.

IV. Pricing Policy

Pricing of the transaction is based on contracted price.

V. Purpose and Impact of the Related Party Transaction on the Company

According to the Agreement, it is ensured that the J08 program can be launched smoothly.

VI. The total amount of the related party transactions taken place with Ford from January 1, 2013 to September 30, 2013 is about RMB 550 million.

VII. Opinionsfrom Independent Directors

Please refer to the Public Announcement on Resolutions of the Tenth Session of the Seventh Board of Directors of JMC for the opinions from Independent Directors on the aforesaid related party transaction in China Securities, Securities Times and Hong Kong Commercial Daily on October 10, 2013.

VIII. Documents for Reference

(1) The Resolutions of the Board of Director of JMC;

(2) JMC Independent Directors' Opinions.

Board of Directors

Jiangling Motors Corporation, Ltd.

October 10, 2013

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