-- Contract Signed with R&B --
WUHAN, Hubei, China, Dec. 10 /Xinhua-PRNewswire-FirstCall/ -- China Automotive Systems, Inc. (Nasdaq: CAAS), a leading power steering components and systems supplier in China, today announced it has entered into its first aftermarket supply contract in the United States with R&B, a major aftermarket supplier.
With this agreement and the first shipment of power steering products, China Automotive Systems has officially entered the U.S. auto parts aftermarket. R&B conducted a strict selection process in China before entering into the agreement with China Automotive Systems. Since May 2006, both companies' engineering teams collaborated closely on the design and development of two power steering models. One model is intended as a replacement power steering product for the Volvo S40 automobile. Other terms of the contract were not disclosed.
Mr. Qizhou Wu, Chief Executive Officer of China Automotive Systems, stated, "This is an important step for China Automotive Systems. As a provider of a key safety-related component, we are very proud that we have passed the strict testing and all evaluation processes by a major U.S. aftermarket supplier. We are confident that our products quality, reliability and favorable cost advantages will continue to attract more customers in North America."
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 R&B
Since 1918, R&B is a leading supplier of "Hard-to-Find" automotive replacement parts, automotive hardware, brake products, and household hardware to the automotive aftermarket and general merchandise markets. R&B's automotive parts and hardware are marketed under more than thirty proprietary brand names, through its Motormite(R), Dorman(R), Allparts, Scan-Tech(R), and Pik-A-Nut(R) businesses. R&B's international distribution channels include traditional wholesalers, retailers, special markets such as parts manufacturers, specialty rebuilders, and general merchandisers. As a solutions driven supplier to all market segments, R&B distinguishes itself with results-oriented customer focus, new product development, and innovative merchandising. For more information, please log on http://www.dormanproducts.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, and financial performance and condition. 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
The Global Consulting Group
Tel: +1-646-284-9409
Email: ktheiss@hfgcg.com
Stacy Dimakakos
Financial Media Relations
The Global Consulting Group
Tel: +1-646-284-9417
Email: sdimakakos@hfgcg.com
