WUHAN, China, Feb. 17 /PRNewswire-Asia-FirstCall/ -- 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
SOURCE China Automotive Systems, Inc.