WUHAN, Hubei, China, Dec. 8 /PRNewswire-Asia-FirstCall/ -- China Automotive Systems, Inc. (Nasdaq: CAAS), a leading power steering components and systems supplier in China, today announced that its subsidiary, Jingzhou Henglong Automotive Parts Co. ("Henglong"), conducted a ceremony to celebrate the first shipment of its power steering gears to the Dongfeng Peugeot Citroen Automobile Company Ltd. ("DPCA") for use in DPCA-manufactured cars.
In addition to Mr. Hanlin Chen, Chairman of CAAS and other senior management of the Company, the Mayor of Jingzhou City, where Henglong is based, the Purchasing Director of DPCA, an officer of PSA Global Procurement in Shanghai, and French automotive engineers attended the ribbon-cutting ceremony. Following the ceremony, all guests visited the production plant, testing center and R & D facility.
Mr. Hanlin Chen, Chairman, stated, "This first shipment represents a milestone in our drive to become a leading supplier of power steering systems and gears to the world's automotive leaders. Following our successes with DPCA, we also received our first purchase order with a global automotive manufacturer headquartered in North America."
"Our advanced power steering gears being shipped to DPCA are replacing products currently being imported into China. Our gears and systems have achieved global quality standards for these critical safety-related products, and we have a cost advantage which will benefit DPCA by using our products," Mr. Chen concluded.
The Purchasing Manager of DPCA and officers from PSA Global Procurement congratulated Henglong for meeting the stringent global quality standards which led to winning the DPCA contract. They also stated they look forward to continuing to work closely with CAAS as it is on its way to becoming a supplier to PSA Global in the future.
Henglong's manager reviewed how the company started development of three new power steering gears for DPCA in 2005. These three models were designed for the Peugeot 206, Elysee R23 and Picasso N68. Subsequently, all models passed the French UTAC safety test, road tests and inspections. In 2008, Henglong won commercial supply contracts for the Peugeot 206 and Elysee R23, and is continuing to work on orders for the Picasso N68 model.
About Dongfeng Peugeot Citroen Automobile Co. Ltd.
Dongfeng Peugeot Citroen Automobile Company Limited, established in 1992, is a joint venture between Dongfeng Motor Corporation and French automaker, PSA Peugeot Citroen. Headquartered in Wuhan, Hubei, DPCA is now the one of the largest automobile manufacturers in China. In 2007, the Company's sales volume had reached 207,000 passenger cars. The Company announced the plan to increase production capacity after construction of the second plant in Wuhan. For more information, please visit http://www.dpca.com.cn .
About CAAS
Based in Hubei Province, People's Republic of China, China Automotive Systems, Inc. is a leading supplier of power steering components and systems to the Chinese automotive industry, operating through seven Sino-foreign joint ventures. The Company offers a full range of steering system parts for passenger automobiles and commercial vehicles. The Company currently offers 4 separate series of power steering and 307 models of power steering with an annual production capacity of 1.1 million sets, steering columns, steering oil pumps and steering hoses. Its customer base is comprised of leading Chinese auto manufacturers such as China FAW Group, Corp., Dongfeng Auto Group Co., Ltd., Brilliance China Automotive Holdings Ltd., Beiqi Foton Motor Co., Ltd. and Chery Automobile Co., Ltd., etc. For more information, please visit: http://www.caasauto.com
Safe Harbor Statement
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations or beliefs, including, but not limited to, statements concerning the Company's operations, financial performance and condition, and the impact of acquisitions on its financial performance. For this purpose, statements that are not statements of historical fact may be deemed to be forward-looking statements. The Company cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, among others, the impact of competitive products, pricing and new technology; changes in demand for the Company's products; changes in consumer preferences and tastes; and effectiveness of marketing; changes in laws and regulations; fluctuations in costs of production, delays and cost overruns related to developing and opening new production facilities; and other factors as those discussed in the Company's reports filed with the Securities and Exchange Commission from time to time.
For further information, please contact:
Jie Li
Chief Financial Officer
China Automotive Systems
Email: jieli@chl.com.cn
Kevin Theiss
Investor Relations
Grayling Global
Tel: +1-646-284-9409
Email: ktheiss@hfgcg.com
Stacey Dimakakos
Financial Media Relations
Grayling Global
Tel: +1-646-284-9417
Email: sdimakakos@hfgcg.com
