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China Automotive Systems Receives Orders From Dongfeng Peugeot Citroen on New Car Model

2008-10-14 21:16 1272


- Total Two Car Models Now Supplied by CAAS -

WUHAN, Hubei, China, Oct. 14 /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 received orders from Dongfeng Peugeot Citroen Automobile Company Ltd. ("DPCA") for power steering gears for the Dongfeng Elysee.

Henglong started development of three new power steering gears for DPCA in 2005. These three models are Peugeot 206, Elysee R23 and Picasso N68. Subsequently, all models have passed the French UTAC safety test, road tests and inspections. In July 2008, Henglong won the supply contract on Peugeot 206 and had begun commercial production.

Mr. Qizhou Wu, Chief Executive Officer of China Automotive Systems, stated, "After winning the supply contract on Peugeot 206 model in July, we are on track to enter the Elysee model. We are excited to establish ourselves as a key component supplier to DPCA, another important European manufacturer in China, and they are now 100% replacing imported power steering gears on both models with our products. The acceptance of these new advanced power steering gears is further evidence of our ability to meet global standards for critical safety-related products and help OEMs to reduce key components costs. In addition to supplying to our Chinese customers, we are targeting other

sino-foreign joint ventures and markets outside China as growth vehicles."

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 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 .

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 .

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

Grayling Global

Tel: +1-646-284-9409

Email: ktheiss@hfgcg.com

Stacey Dimakakos

Financial Media Relations

Grayling Global

Tel: +1-646-284-9417

Email: sdimakakos@hfgcg.com

Source: China Automotive Systems, Inc.
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Keywords: Auto
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