小阿艺
To： Mr Step，CEO of Mountain Car Company
From：Mercy，manager of Ascendas Car Company
Subject: proposal on setting up a joint venture
Date: 2010-5-29
Introduction of Ascendas Car Company
Dear Mr Step, our company is a listed company established in 2000, located in Shenzhen which is one of the most economically advanced cities in china. We are specialized in producing environment-friendly and energy-saving cars, catering for the environmental protection awareness of modern people and this is exactly what many big car companies lack but we have. Now we have 800 employees and make about 2.5 million dollars per year. Our cars are exported to several countries such as France, Germany, Canada, USA etc. From the year 2004 to 2009, the number of cars sold is growing every year from 2.48 million to 2.88 million and it’s estimated to reach 3 million this year. 50% of our consumers are the25-40 year olds who have a large purchasing power. It is no exaggeration to say that our company has a promised future.
Necessity and importance of forming a joint venture
Your company--- Mountain Car Company has been seeking a partner in China to establish a joint venture to further expand your market share. Our company is a good choice to fulfill the requirements. Your company has a large number of employees of 2000 people, makes over 5 billion euros per annum, costs 2 billion a year in advertising and has 250 locations on 5 continents. Yet your cars are mostly traditional engines which produce gaseous pollutants. This is an area in which we can cooperate.
Since our company has a history of 10 years to manufacture environment-friendly and energy-saving cars, we are now experienced in this respect. We can provide you the gas-electric hybrid technology at the same time you give us financial support to develop new technology. This is to your benefit. In this world of energy crisis and environmental pollution, developing clean or relatively clean cars is the focus of many car companies. Our experience in this area can help you avoid detours and help you immediately on the way to produce clean cars.
Our cooperation will make us learn from each other’s strong points to offset respective weaknesses, finally benefiting both sides. Your turnover may rise from 5 to 6 billion euros per year and your locations may increase from 250 to nearly 300.
Details of our cooperation
I propose 5 years of cooperation and we build an extension to our company as the site of our joint venture so that cost can be less than building a new production
base. You can use our technology and cheap labor power on the condition that you provide 60% of the registered capital. We are mainly responsible for facilities, instruments, factory building and land-use right. You mainly provide funds. This is convenient and beneficial for you because your company has higher turnover thus more working capital and our side is more familiar with situations in China.
Prospect forecasting
Combining our strong points, I believe we can make innovations in car industry and manufacture cars of high performance and high technology. Our cars can be both fast and environment-friendly. We can also make our cars more attractive in appearance to appeal to more consumers.
I am very confident that your company makes the wisest choice in choosing our company as your partner and that our cooperation of forming a joint venture will undoubtedly bring enormous economic benefits to your company as well as our company. It’s really a win-win situation. Looking forward to your reply.
Yours sincerely
Mercy
