Yulon Group Sets Up SAVE Alliance to Raise Share in Used-car Market

Taipei, Aug. 4, 2009 (CENS)--The Yulon Group, the largest automobile conglomerate in Taiwan, recently allied with 60 local used-car dealers to form the "SAVE Used-car Certification Alliance," the second-largest used-car sales chain in Taiwan.

Through its sales arm Fortune Motors Co., Ltd., Yulon had already set up the largest used-car sales chain on the island, Sever Your Motors Co., Ltd. (SUM), several years ago.

Senior mangers at Yulon said that SUM and SAVE are expected to generate a "one plus one is greater than three" effect in the domestic used-car market, to handle the strong competition from the used-car business operated by Hotai Motor Co. Ltd., who controls most of the supply of used Toyotas and Lexus.

The SAVE is jointly invested by Sinjang Corp. and China Motor Corp. of Yulon Group and Itochu Group of Japan, with the alliance running a newly developed used-car auction.

The competition in the local used-car market has been rising with new Toyotas' market share having grown to between 30% and 40%, while Toyotas and sister brand Lexus have long been the most wanted in the used-car market.

Sinjang admitted that the SAVE is a strategy to further raise used-car volume being auctioned. Each dealer in the SAVE alliance is required to buy or sell at least two cars per month.