At the beginning, the Second Automobile Company settled in Shiyan. The Second Automobile Company had 27 professional factories with hundreds of thousands of construction workers, which was the most important industrial project in China at that time. Therefore, once the Second Automobile Company settled in Shiyan, Shiyan quickly became the third provincial city in Hubei Province. The traffic in Shiyan is far less than Xiangyang, and there is not much flat land to build a big factory. Therefore, No.2 Automobile Company decided Xiangyang as the production base and put the passenger car project in Xiangyang.