BEIJING, April 17, 2014 /PRNewswire/ -- Lentuo International Inc. (NYSE: LAS) ("Lentuo" or the "Company"), a leading non-state-owned automobile retailer headquartered in Beijing, today announced it has launched a quality certification program to support its growing Certified pre-owned car business and improve confidence and transparency in the pre-owned car industry.
Effective today all of the Company's mid- to high-end pre-owned cars will receive a complete technical inspection and analysis to ensure they have no significant frame or internal damage, are in excellent working order and meet or exceed generally accepted standards for a particular make and model. Only those cars that successfully pass this inspection will be offered for sale. This will provide much needed price transparency, increase buyer confidence and make financial institutions more comfortable in financing purchases and managing credit risk.
These cars, labeled Lentuo Certified Quality will be sold through the O2O platform announced by the Company on March 3, 2014, which will incorporate the Company's flagship showroom in Beijing and additional pre-owned dealerships to be opened as the Company expands geographically.
Lentuo expects various substantial synergistic effects resulting from the build-up of this dedicated pre-owned car business. Among others, revenues from repair and maintenance should expand as the Company will offer discounts to buyers of its certified pre-owned cars.
Financing for pre-owned cars in China has been constrained by the lack of pricing transparency and quality standards, somewhat slowing down the expansion of this much needed market. With its reputation for quality, advanced technological equipment and the launch of this rigorous certification program, Lentuo has gained the strategic support of China Orient Tiantong Capital Management Ltd., a subsidiary of China Orient Asset Management Corp, a major state-owned financial asset management company. China Orient Tiantong will leverage its institutional power and substantial funding capabilities to help Lentuo provide adequate financing to the certified pre-owned car buyers.
"With the launch of this program, the O2O platform, and the strategic financial support of China Orient Tiantong, we now have in place the key elements necessary to build a robust pre-owned car business that we expect to grow beyond Beijing over time," said Lentuo founder and chairman, Mr. Hetong Guo.
Mr. Guo continued: "Our program, with its certified expert inspection and industry-leading warranties, will help, we believe, to greatly increase the level of confidence in our pre-owned cars and make the pricing of these cars far more transparent. This should help us drive our sales of pre-owned cars to a higher level, especially once the O2O platform is operational. We also expect additional benefits as a result of the synergistic effect with our after-sale services."
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 shops and one car leasing company.
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 Act of 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
Phone: +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
