WUHAN, China, Feb. 17 /PRNewswire-Asia/ -- China Automotive Systems, Inc. (Nasdaq: CAAS), a leading power steering components and systems supplier in China, today announced that its subsidiary, Wuhu Henglong Auto Steering Systems ("WHAS"), won two awards from China’s leading independent domestic auto maker, Chery Automobile Co., Ltd. ("Chery Auto"). At the recent Annual Suppliers Meeting, Chery Auto hosted over 500 domestic and foreign suppliers. Chery Auto honored WHAS as "Best Core Supplier" and "Best Auto Component Supplier" at this ceremony.
China Automotive Systems supplied approximately 75% of the power steering units used by Chery Auto in 2008. Sales to Chery Auto represented approximately 16% of China Automotive Systems’ total revenues.
WHAS is based in Wuhu, Anhui Province where Chery Auto’s headquarters is based. In 2005, China Automotive Systems and Chery Auto formed the joint venture, WHAS, to focus on the large-scale production of high-quality power steering products. These awards reflect WHAS’s superior product quality, stringent cost control, and strong production management. Since its inception, WHAS is mostly committed to satisfy Chery Auto’s rising need for advanced power steering systems for its 10 different models of Chery vehicles.
Mr. Qizhou Wu, Chief Executive Officer of China Automotive Systems, stated, "We are pleased to receive the Best Auto Component Supplier award this year along with being recognized as a Best Core Supplier again from China’s leading automotive brand. These awards recognize our solid OEM relationships and our superior product quality, and we are proud that our products continue to be recognized by our domestic customers as they are proactively upgrading their quality standards for both Chinese market and exports. We look forward to continuing our development of state-of-the-art power steering units as we expand our presence in both the Chinese and global markets.”
Chery Auto has produced over 1 million car units and in 2008, it was the leader among the independent domestic brands for: (1) total units sold in the China market, (2) the most units exported and (3) it was the largest supplier of small-displacement vehicles in China. Chery Auto forecasts that it expects to manufacture approximately 400,000 automobiles in 2009, up from 356,000 units in 2008. Thanks to the recent government auto industry stimulus and rising small car demand, Chery Auto led China OEM unit sales and sold approximately 35,000 cars in January 2009, a new Company record high sales for a single month. Chery also recently launched its A5 BSG hybrid model which is China’s first BSG “Belt Driven Starter Generator” hybrid vehicle as well as Chery’s first new energy car model. The A5 BSG comes into the market like a “green” blockbuster, which signals that Chery is one step ahead of others on new energy products. BSG is a hybrid technology which is able to shut off the engine temporarily when the vehicle is stopped. Chery has also been awarded the first prize by the National Science & Technology Awards Conference for its Energy Saving and Environment Protection Auto Technology Platform Construction Project, which includes the A5 BSG. For the 3rd time since 2006, Chery was chosen as one of the “Most Admirable Chinese” companies jointly by Fortune Magazine, a world’s leading business & financial magazine, and Hay Group, one of the largest consulting groups with worldwide reputation. Additionally, Chery has been selected as one of the “Top 20 Chinese Companies with Global Competitiveness” from the latest research conducted by Roland-Berger, a global well-know strategic management company.
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.
For further information, please contact:
Jie Li
Chief Financial Officer
China Automotive Systems
Email: jieli@chl.com.cn
Kevin Theiss
Investor Relations
Grayling
Tel: +1-646-284-9409
Email: ktheiss@hfgcg.com
