JINZHOU CITY, China, Feb. 3 /PRNewswire-Asia-FirstCall/ -- Wonder Auto Technology Inc. (Nasdaq: WATG; "Wonder Auto"), a leading manufacturer of automotive electrical and suspension parts in China, today announced that one of its subsidiaries-Jinzhou Halla Electrical Equipment Co. Ltd.("Jinzhou Halla"), has won the bid to supply starters to Dongfeng Passenger Vehicle Company ("DFPV"), an affiliate branch of Dongfeng Automotive Co. ,Ltd ('DFAC"). Upon receipt of this acceptance notice, Jinzhou Halla has now become the sole qualified starter supplier to DFPV, which will launch an independent brand passenger vehicle in China by the end of 2010.
According to this agreement, 35 sample starters will be delivered to DFPV for laboratory examination and testing on April 25, 2009, and a small batch of starters will be sent from Jinzhou Halla for road testing in the second half of 2009. The total estimated sales volume to DFPV under this agreement will be approximately $20 million, progressively from 2011 to 2015. According to DFPV, the total estimated amount for this emerging passenger vehicle will be up to 1.8 million units for the period 2011 to 2019.
Dongfeng Automotive Co., Ltd ("DFAC") is one of the top-three national automakers in China, with the famous brand names of "Dongfeng",
"DF-Citroen" and "Yueda-Kia" for its commercial and passenger vehicle products. The emerging passenger vehicle will have a 1.6 L engine, adding to DFAC's low emission vehicle family.
Mr. Qingjie Zhao, chairman and chief executive officer of Wonder Auto commented: "Winning this contract has fully demonstrated our accumulated experience and fame in the low emission vehicle focus, and the outstanding competitiveness of our R&D capability, quality control and cost reduction amongst the tenders. This successful tendering, together with the newly-added contracts from existing customers in 2009, will further strengthen our ability to achieve continuous revenue growth for Wonder Auto for future years."
About Wonder Auto
Based in Jinzhou City, Liaoning, China, Wonder Auto Technology, Inc., through its Chinese subsidiaries, designs, develops, manufactures and sells automotive electrical parts, suspension products and engine accessories. Wonder Auto was ranked second in sales revenue in the China market for automotive alternators and starters in 2007. With respective 5 different series and over 150 models of alternators, 70 models of starters, various suspension and engine related parts, the Company supplies to a wide range of automakers, engine producers and auto parts suppliers both in domestic China and overseas. Wonder Auto's main customers include Beijing Hyundai Motor Company, Shenyang Aerospace Mitsubishi Motors Engine Manufacturing Co., Ltd., Harbin Dongan Automotive Engine Manufacturing Co., Ltd., Tianjin FAW Xiali Automotive Co., Ltd, Shanghai VW and Weifang Diesel Engine. For more information, please log on http://www.watg.cn .
Safe harbor statement
This press release may contain forward-looking information about Wonder Auto Technology, Inc. and its wholly owned subsidiaries which are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology, and include discussions of strategy, statements about industry trends and Wonder Auto Technology, Inc.'s future performance, operations and products. This and other "Risk Factors" are contained in Wonder Auto Technology, Inc.'s public filings with the SEC.
For more information, please contact:
Lydia Zhao
Assistant CFO
Tel: +86-10-8478-5339
Cell: +86-130-2118-4792
Email: lydiaz@watg.cn
Yechon Xie
Investor Relations Manager
Tel: +86-416-266-1186
Cell: +86-137-0006-1685
Email: ycxie@watg.cn
