WUHAN, China, Nov. 21, 2019 /PRNewswire/ -- China Automotive Systems, Inc. (Nasdaq: CAAS) ("CAAS" or the "Company"), a leading power steering components and systems supplier in China, today announced its Henglong Brazil subsidiary has been nominated as a one of three CHASSIS finalist for South America's 2018 Best Supplier by Fiat Chrysler Automobiles N.V. (FCA).
CAAS started its operations in Brazil in 2012 through a joint venture with a local company. Over the years, CAAS has won contracts and grown its shipments to the region's largest OEM producer, FCA South America. In 2019, the sale of J436 series products through semi-knocked-down (SKD) kits is approaching 10,000 units per month. A new product under development to supply FCA's JEEP models will begin mass production starting in October 2020 with expected annual demand of 400,000 units, considering expected new demand plus the current volume.
In appreciation of CAAS' commitment and performance in the 2018 calendar year, FCA also nominated CAAS as a CHASSIS Supplier of the Year award finalist.
For the European market, CAAS' sample products have successfully passed FCA's Preliminary Design Review (PDR) evaluation for its Italian-made Fiat 520 eAWD PHEV model. Shipment of this new product to Europe is expected to start by the end of 2019.
Mr. Qizhou Wu, Chief Executive Officer of CAAS, commented, "We are excited to see not only more and more global OEMs are recognizing our superior product quality and on-time delivery, but also our ten plus years relationship with FCA has blossomed into a broader scope partnership in many geographic markets. South America is a new growth market for us as its car ownerships are increasing and middle-class populations are expanding. In 2021 and beyond, we are targeting to sell 400,000 units of our steering products to Fiat and Jeep in the South American market annually. With our current production and new business, we have become the dominant supplier of mechanical steering gears to Fiat Chrysler in South America."
About China Automotive Systems, Inc.
Based in Hubei Province, the 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 eight Sino-foreign joint ventures. The Company offers a full range of steering system parts for passenger automobiles and commercial vehicles. The Company currently offers four separate series of power steering with an annual production capacity of over 6 million sets of steering gears, columns and steering hoses. Its customer base is comprised of leading auto manufacturers, such as China FAW Group, Corp., Dongfeng Auto Group Co., Ltd., BYD Auto Company Limited, Beiqi Foton Motor Co., Ltd. and Chery Automobile Co., Ltd. in China, and Chrysler Group LLC in North America. For more information, please visit: http://www.caasauto.com.
Forward-Looking Statements
This press release contains statements that are "forward-looking statements" as defined under the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent our estimates and assumptions only as of the date of this press release. These forward-looking statements include statements regarding the qualitative and quantitative effects of the accounting errors, the periods involved, the nature of the Company's review and any anticipated conclusions of the Company or its management and other statements that are not historical facts. Our actual results may differ materially from the results described in or anticipated by our forward-looking statements due to certain risks and uncertainties. As a result, the Company's actual results could differ materially from those contained in these forward-looking statements due to a number of factors, including those described under the heading "Risk Factors" in the Company's Form 10-K annual report filed with the Securities and Exchange Commission on March 28, 2019, and in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission. We expressly disclaim any duty to provide updates to any forward-looking statements made in this press release, whether as a result of new information, future events or otherwise.
For further information, please contact:
Jie Li
Chief Financial Officer
China Automotive Systems, Inc.
Email: jieli@chl.com.cn
Kevin Theiss
Awaken Advisors
+1-212-521-4050
kevin@awakenlab.com
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