WUHAN, Hubei, China, May 18 /Xinhua-PRNewswire/ -- China Automotive
Systems, Inc. (Nasdaq: CAAS), a leading power steering components and systems
supplier in China, today announced its subsidiary, Jingzhou Henglong
Automotive Parts Co., has entered into an agreement with FAW Volkswagen to
supply its high quality power steering systems.
The agreement will commence immediately, with a term of one year and an
option to extend for a further two years. The power steering systems will be
installed in Volkswagen's Jetta and Audi vehicles in China. The first
commercial shipment will be delivered by China Automotive Systems on May 21st
2007. Other terms of the contract were not disclosed.
With this supply agreement, China Automotive Systems has entered into
Volkswagen's global sourcing system. According to the China Association of
Automobile Manufacturers, two key Volkswagen joint ventures in China, FAW
Volkswagen and Shanghai Volkswagen, collectively produced and sold more than
680,000 passenger cars in China in 2006. FAW Volkswagen, the number one
passenger car producer in China, experienced a robust 40% year over year unit
sales growth in 2006. In the first quarter of 2007, FAW Volkswagen's
production and sales unit growth accelerated to 55% up from same period in
2006.
"This agreement represents a major step towards our goal of becoming the
number one producer in the power steering market in China. After a decade long
effort of improving our product R&D, quality control, production scale and
after-sale customer services, we have finally become a tier one supplier to
one of the largest global automakers. We are very excited about this
opportunity to provide reliable and dependable support to Volkswagen's rapid
growth in China. As China's passenger vehicle OEM market continues to grow, we
remain focused on expanding our market share and strengthening our
relationships with major OEMs, like Volkswagen, by providing high quality and
competitively priced products. In addition, we continue to improve product
quality and ramp up production capacity to prepare for potential opportunities
outside of China," said Mr. Hanlin Chen, Chairman and Chief Executive Officer
of China Automotive Systems.
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 800,000 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. 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 consumer
preferences and tastes; and effectiveness of marketing; changes in laws and
regulations; fluctuations in costs of production, 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:
Christopher Chu
Investor Relations
The Global Consulting Group
Tel: +1-646-284-9426
Email: cchu@hfgcg.com
Stacey Dimakakos
Financial Media Relations
The Global Consulting Group
Tel: +1-646-284-9417
Email: sdimakakos@hfgcg.com
