WUHAN, Hubei, China, Sept. 2 /Xinhua-PRNewswire-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”), has signed a supply agreement with ChangAn Auto Co. Ltd. (“ChangAn Auto”).
Beginning in February 2007, Henglong started developing prototype power steering systems for ChangAn Auto. After more than a year of development and testing, Henglong has successfully developed 4 different models of hydraulic power steering systems and one model of Electronic Power Steering for ChangAn Auto. Henglong is now a power steering system supplier to ChangAn Auto’s CV6 model. It is estimated that Henglong will ship steering gears for the other 3 models in late 2008. Total shipments to ChangAn Auto for 2008 will be approximately 30,000 total units.
Mr. Qizhou Wu, Chief Executive Officer of China Automotive Systems, stated, "We view the ChangAn win as an important milestone as ChangAn Group is one of the largest auto manufacturing groups in China with a number of successful joint ventures with global auto makers. We see this as a good opportunity for us to break into another well established network.”
According to the China Association of Automobile Manufacturers, ChangAn Auto Co. Ltd. produced and sold around 50,000 sedans and 250,000 SUVs in 2007. ChangAn Group has been consistently ranked as a top 5 automaker in China for many years.
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., Donfeng 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 .
About ChangAn Auto Co. Ltd.
Founded in 1862 and headquartered in Chongqing, the only municipality in west China directly under the central government’s control, ChangAn Auto Co. Ltd. is one of the most renowned carmakers in China producing a full line of vehicles ranging from passenger cars, SUVs, light duty trucks, mini-van, coach buses and other commercial vehicles. ChangAn Auto’s annual total production capacity is 1 million vehicle units and 1.1 million engine units. ChangAn has established joint ventures with international auto makers Ford, Mazda and Suzuki in China. The joint ventures are ChangAn Suzuki Auto Corp. founded in 1993, ChangAn Ford Auto Corp. founded in 2001 and ChangAn Ford Nanjing Corp. founded in 2004. For more information, please visit http://www.changan.com.cn .
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
