omniture

China Automotive Systems Wins Dongfeng Peugeot Citroen Contract

2008-07-07 16:03 1227


WUHAN, Hubei, China July 7 /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 signed a supply agreement with Dongfeng Peugeot Citroen Automobile Co. Ltd. (“DPCA”).

Beginning from July, Henglong will ship 3000 units of power steering gears per month to DPCA for its Dongfeng Peugeot 206 model. DPCA and Henglong are also in the process of finalizing commercial orders for two other models -- Dongfeng Elysee R23 and Dongfeng Picasso N68.

Mr. Qizhou Wu, Chief Executive Officer of China Automotive Systems, stated, "After winning the FAW Volkswagen contract last year, we are excited to enter another European automakers’ auto parts purchasing system in China. After an almost three-year evaluation, Peugeot has approved the performance and quality of our products to be installed in their flagship vehicles in China. We will continue to focus on broadening our product offerings and maintaining

high-quality standards to win key contracts from major automakers in China.”

According to China Association of Automobile Manufacturers, Dongfeng Peugeot Citroen Automobile Co. Ltd. produced over 213,000 vehicles and sold 207,000 vehicles in 2007. Peugeot was consistently ranked in a top 10 sedan 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 Co. Limited, established in 1992, is a joint venture between Dongfeng Motor Corporation and French automaker, PSA Peugeot Citroen. Headquartered in Wuhan, Hubei, Dongfeng Peugeot is now the one of the largest automobile manufacturers in China. In 2007, the Company’s sales volume has reached 207,000 vehicles. The Company recently announced to increase both production and sales in 2008 to reach a record 280,000 vehicles, including 150,000 Citroen cars and 130,000 Peugeot 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 a new Wuhan plant, 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

Grayling Global

Tel: +1-646-284-9409

Email: ktheiss@hfgcg.com

Source: China Automotive Systems
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Keywords: Auto
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