WUHAN, China, Feb. 9 /PRNewswire-Asia/ -- China Automotive Systems, Inc. (Nasdaq: CAAS), a leading power steering components and systems supplier in China, today announced that for the year 2008, the Company sold approximately 1.3 million systems and components compared with 1.1 million in 2007. This increase in units sold reflects continued orders from the Company’s major historical customers and new customers won during 2008.
New clients in 2008 include Dongfeng Peugeot Citroen Automobile Company Ltd. for two models with the Company continuing to work for orders for a third model. Additionally, the Company has developed 4 different models of hydraulic power steering systems and one model of Electronic Power Steering for ChangAn Auto Co. Ltd. Also, China Automotive Systems established its first relationship with a major automotive OEM headquartered in North America, and the Company has begun exporting its power steering gears to this customer.
Legacy customers who renewed their agreements with the Company include such well-known Chinese brands as Chery Automobile Co., Brilliance China Automotive Holdings, Zhejiang Geely Holding Co., Ltd., and Xi’an BYD Electric Car Co., Ltd., among others.
Mr. Qizhou Wu, Chief Executive Officer of China Automotive Systems, commented, "Despite the challenging capital market conditions, we still achieved almost 20% growth in sales volume. We clearly outpaced the 6.7% auto market growth in China and continuously gained market share in the slow market. While OEMs in China are increasingly engaging in quality improvements and product upgrades, it is important for them to source high-quality parts with good features and scaleable production. We believe that our volume growth validates that we are well positioned to outgrow our competitors."
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 1.3 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., Dongfeng 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.
