WUHAN, Hubei, China, Feb. 28 /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 passed Dongfeng Peugeot Citroen Automobile Company Ltd ("DPCA") safety test and road test for its power steering gears and started preparing its initial shipment of model Dongfeng Peugeot 206 to DPCA.
Since March 2005, Henglong has developed 3 power steering gears for DPCA: Dongfeng Peugeot 206, Dongfeng Citroen Elysee and Dongfeng Citroen new Xsara Picasso. The power steering gears for the Dongfeng Peugeot 206 have already passed the French UTAC safety test. Trial production will begin in March 2008, and commercial production is expected to commence in May 2008. The Dongfeng Citroen Elysee and Dongfeng Citroen new Xsara Picasso steering gears are currently undergoing inspections. We expect to receive commercial orders for the Dongfeng Citroen Elysee power steering gears by June 2008 and for the Dongfeng Citroen new Xsara Picasso power steering gears beginning in October 2008.
Mr. Qizhou Wu, Chief Executive Officer of China Automotive Systems, stated, "After winning a FAW Volkswagen contract last May, we are excited to move closer towards another important European automakers’ auto parts purchasing system in China. As a key safety-related component of vehicles, our products have been approved by one of the highest standards in the world. We are very proud that our engineering team and R&D team have proved our power steering systems to consistently perform well in severe weather, temperature and road conditions. We look forward to forging a long-term relationship with DPCA."
According to the China Association of Automobile Manufacturers, Dongfeng Peugeot Citroen Automobile Company Ltd. produced over 213,000 passenger cars and sold 207,000 passenger cars in 2007. DPCA was consistently ranked as a top 10 passenger car producer in China since 2005.
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
Dongfeng Peugeot Citroen Automobile Co. Ltd.
Dongfeng Peugeot Citroen Automobile Company Limited, established in 1992, is a joint venture between Dongfeng Motor Corporation and French automaker, PSA Peugeot Citroen. Headquartered in Wuhan, Hubei, DPCA is now the one of the largest automobile manufacturers in China. In 2007, the Company’s sales volume has reached 207,000 passenger cars. The Company recently announced to increase both production and sales volume in 2008 to reach a record 280,000 vehicles, including 150,000 Dongfeng Citroen brand cars and 130,000 Dongfeng Peugeot brand cars. The 2008 figures would represent an increase of 31% in unit production and an increase of 35% in unit sales on a year-over-year basis. The Company also announced the plan to increase that production capacity to 450,000 vehicles a year after construction of the second plant in Wuhan, with annual capacity of 150,000 vehicles, to be completed in 2009. For more information, please visit http://www.dpca.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
The Global Consulting Group
Tel: +1-646-284-9409
Email: ktheiss@hfgcg.com
Stacey Dimakakos
Financial Media Relations
The Global Consulting Group
Tel: +1-646-284-9417
Email: sdimakakos@hfgcg.com
