Share's code:

Share's code

000550

Share's Name

Jiangling Motors

No.

2015-006

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.

1. Brief Introduction

The Board of Directors of Jiangling Motors Corporation, Ltd. (hereinafter referred to as "JMC" or the "Company") hold a paper meeting within February 4, 2015 to February 10, 2015 to approve the Global Cargo Modular Cab Engineering Services Agreementamong Ford Motor Company, Ford Otomotiv Sanayi A.S., the Company and JMC Heavy Duty Vehicle Corporation, Ltd. ("JMCH"), and authorizes Executive Vice President Xiong Chunying and JMCH General Manager Liao Zanping to sign this Contract on behalf of the Company and JMCH respectively. According to the abovementioned Engineering Services Agreement, the Company shall pay engineering service fees of no more than US$ 41.2 million to Ford Otosan for its support in the initial stage of the Global Cargo Modular Cab program.

Nine Directors shall attend this Board meeting and all of them were present.

Whereas Ford, representing 32%of the outstanding shares of the Company, is the second largest shareholder of the Company, and Ford Otosan is a corporation controlled by Ford and Koç Holding, the transaction herein constitutes a related party transaction.

When voting on the proposal, Director John Lawler, Director Manto Wong, and Director Yuan-Ching Chen withdrew from the voting and all the other Directors agreed with this proposal.

2. Brief Summary of the Related Parties

(1) Company Name: Ford Motor Company

Headquarter Location: Detroit, U.S.A.

Chairman: William Clay Ford, Jr.

Capital: US$ 40,000,000

EnterpriseType: 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.

(2) Company Name: Ford Otomotiv Sanayi A.S.

Registered Address: Istanbul of Turkey

Chairman: Yıldırım Ali KOÇ

Registered Capital: 350,910,000 TL

Enterprise Type: Foreign Corporation

Ownership Structure: Ford holds 41% equity of Ford Otosan, Koc Holding holds 41% and the public shareholders hold 18%.

Business Scope: production and sales of auto & components

3. Main Contents of the Global Cargo Modular Cab ("GCMC")Engineering Services Agreement

i. Ford Otosan shall provide Services for the Global Cargo Modular Cab program in accordance with the Agreement.

ii. The Common engineering and jointly funded Unique engineering costs incurred will be equally shared between the Parties. Other than jointly funded Unique engineering, any other Unique engineering costs unique to a Party or Parties will be solely funded and borne by such Party or Parties. Immediately upon registration of this Agreement by JMC, JMC shall pay its' share for the engineering costs and Non-PD Costs incurred by the Parties for years 2012, 2013 and 2014 of 15.8 million USD. The 2015 engineering cost estimated at 25.4 million USD will be paid on a quarterly basis afterward.

iii. Foreground Technical Information in technology developed in the course of the GCMC Program with joint funding from Ford, Ford Otosan and JMC shall be the joint intellectual property owned equally by the funding Parties. Any Party elects to solely fund the development of Unique Components for GCMC Products in the course of the GCMC Program, that Party shall be the sole owner of Intellectual Property defining those Unique Components.

iv. This Agreement shall come into effect on the date of signature and will expire on December 1, 2015

4. Pricing Policy of the Related Party Transaction

Pricing principle: price established through contract.

5. Purpose and Impact of the Related Party Transaction on JMC

Purpose of the related party transaction is to join the development of new global cab so as to develop and introduce the vehicle product for JMCH smoothly.

6. The total amount of the related party transactions taken place between the Company and Ford from January 1, 2015 to January 31, 2015 is about RMB 97.68 million; about RMB 2.29 million between the Company and Ford Otosan.

7. Opinions from Independent Directors

Independent Directors, Ms. Wang Xu, Mr. Lu Song and Ms. Wang Kun expressed their opinions on the Global Cargo Modular Cab Engineering Services Agreementamong Ford, Ford Otosan, the Companyand JMCH as follows:

(1) We have been informed of the meeting agenda prior to the meeting;

(2) We have known details of the relevant contracts and believe by careful review that the engineering services provided by Ford Otosan are necessary and the pricing is reasonable.

8. Documents for Reference

1. Resolution of the Board of Directors of Jiangling Motors Corporation, Ltd.;

2. Opinions from Independent Directors on the aforesaid related party transaction.

Board of Directors

Jiangling Motors Corporation, Ltd.

February 12, 2015

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