Message #6 From:
NewsBot Date: March 2, 2008 07:52:25 AM
China Automotive Systems Passes Dongfeng Peugeot Citroen Road Test
WUHAN, Hubei, China, Feb. 28 /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 passed Dongfeng Peugeot
Citroen Automobile Company Ltd ('DPCA') safety test and road test for its
power steering gears and started preparing its initial shipment of model
Dongfeng Peugeot 206 to DPCA.
Since March 2005, Henglong has developed 3 power steering gears for DPCA:
Dongfeng Peugeot 206, Dongfeng Citroen Elysee and Dongfeng Citroen new Xsara
Picasso. The power steering gears for the Dongfeng Peugeot 206 have already
passed the French UTAC safety test. Trial production will begin in March 2008,
and commercial production is expected to commence in May 2008. The Dongfeng
Citroen Elysee and Dongfeng Citroen new Xsara Picasso steering gears are
currently undergoing inspections. We expect to receive commercial orders for
the Dongfeng Citroen Elysee power steering gears by June 2008 and for the
Dongfeng Citroen new Xsara Picasso power steering gears beginning in October
2008.
Mr. Qizhou Wu, Chief Executive Officer of China Automotive Systems, stated,
'After winning a FAW Volkswagen contract last May, we are excited to move
closer towards another important European automakers' auto parts purchasing
system in China. As a key safety-related component of vehicles, our products
have been approved by one of the highest standards in the world. We are very
proud that our engineering team and R&D team have proved our power steering
systems to consistently perform well in severe weather, temperature and road
conditions. We look forward to forging a long-term relationship with DPCA.'
According to the China Association of Automobile Manufacturers, Dongfeng
Peugeot Citroen Automobile Company Ltd. produced over 213,000 passenger cars
and sold 207,000 passenger cars in 2007. DPCA was consistently ranked as a top
10 passenger car producer in China since 2005.
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 Company Limited, established in 1992,
is a joint venture between Dongfeng Motor Corporation and French automaker,
PSA Peugeot Citroen. Headquartered in Wuhan, Hubei, DPCA is now the one of the
largest automobile manufacturers in China. In 2007, the Company's sales volume
has reached 207,000 passenger cars. The Company recently announced to increase
both production and sales volume in 2008 to reach a record 280,000 vehicles,
including 150,000 Dongfeng Citroen brand cars and 130,000 Dongfeng Peugeot
brand 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 the second plant in Wuhan, 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 The Global Consulting Group Tel: +1-646-284-9409 Email: ktheiss@hfgcg.com
Stacey Dimakakos Financial Media Relations The Global Consulting Group Tel: +1-646-284-9417 Email: sdimakakos@hfgcg.com
