BEIJING, March 3, 2014 /PRNewswire/ -- Lentuo International Inc. (NYSE: LAS) ("Lentuo" or the "Company"), a leading non-state-owned automobile retailer headquartered in Beijing, today announced that it has signed an agreement ("the Agreement") with Sohu Auto, a leading online auto information provider in China and a business unit of Sohu.com Inc. (NASDAQ: SOHU), to create a fully integrated online-to-offline ("O2O") platform for pre-owned cars in China. Sohu Auto will act as online marketing partner for this platform. The platform will greatly expand Lentuo's ability to reach a larger group of car buyers and allow it to meet the growing demand from younger Chinese who increasingly shop for cars on the internet.
Under the terms of the Agreement, Lentuo will act as the exclusive after-sales service provider for pre-owned cars certified by Sohu as long as Lentuo meets Sohu's quality standards.
On the physical side of the platform, and as a first step, Lentuo announced on February 18, 2014 that it will convert an existing new car showroom in South Beijing into a fully integrated pre-owned flagship store for mid-to-high end cars that will privilege customer experience, reliability and extensive choice. The flagship store will employ state-of-the-art technological equipment and rely on Sohu's IT systems to ensure the highest level of service quality and productivity.
The online side of the platform will leverage Sohu Auto's technological know-how and extensive IT resources to continuously enhance the O2O platform and build big data analytical tools which will allow a comprehensive and highly focused leverage of its expansive user base. The two parties plan to expand the platform to the rest of the country in the future.
Mr. Hetong Guo, Founder and Chairman of Lentuo International commented, "We are excited to team up with Sohu Auto to build a fully integrated online-to-offline platform for pre-owned cars in China."
"While sales of pre-owned cars in China have been growing faster than sales of new cars over the recent years, the market is extremely fragmented, suffers from a lack of professional and ethical standards, and makes scant use of advanced technological equipment."
"This new platform will provide a one-stop shop and high quality customer experience in a hassle-free and highly professional environment. In addition to a streamlined information gathering and transacting process, customers will benefit from reliable certification as well as modern technical facilities and services, financing, and insurance."
"Our efforts to build a pre-owned car business over the past two years have taught us a lot. We know the demand is there and will continue to grow rapidly. We understand customer behavior in this segment and we have become fully aware of the trend towards greater use of the internet to obtain information and conduct transactions. The proven quality of our technical services, relying on sophisticated equipment, our experience in providing financing,our loyal customer base, and our investment in a state-of-the-art dedicated center will provide a strong physical foundation for this platform."
"Sohu's strong track record in building online businesses, its established presence in the automobile online sector, its substantial user base, and its nationwide reach and recognized brand will ensure the technological success of the platform, attract an online audience of potential buyers and sellers, and gradually contribute to the scalability of this business."
Mr. Guo concluded: "With the market still in its very early stages and a solid partnership with Sohu Auto, we are confident in our ability to substantially expand our pre-owned car business and advance our overall strategy."
About Lentuo International Inc.
Lentuo is a leading non-state-owned automobile retailer headquartered in Beijing. Lentuo operates 12 franchise dealerships, 10 automobile showrooms, one automobile repair shop and one car leasing company.
About Sohu Auto
Sohu Auto is a business unit of Sohu.com in (NASDAQ: SOHU), China's premier online media brand. Sohu Auto operates two of the most influential websites dedicated to the Chinese auto market, auto.sohu.com, an online destination for automobile consumers and 2sc.sohu.com, an online information platform which can provide accurate pre-owned cars information for dealers and individuals.
Safe Harbor Statement
This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Actor 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "target," "going forward," "outlook" and similar statements. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company's control, which may cause the Company's actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
For more information, please contact:
Ms. Jiangyu Luo
Acting CFO
Lentuo International Inc.
Email: luojiangyu@lentuo.net
Christensen
Mr. Christian Arnell
Telephone:+86-10-5900-1548 in Beijing
Email: carnell@christensenir.com
Ms. Linda Bergkamp
Phone: +1-480-614-3004 (U.S.A.)
Email: lbergkamp@christensenir.com