China Automotive Systems Wins Multi-Year Contract With SAIC-GM-Wuling
WUHAN, China, May 2, 2013
WUHAN, China, May 2, 2013 /PRNewswire-FirstCall/ -- China Automotive Systems,
Inc. ("CAAS" or the "Company") (NASDAQ: CAAS), a leading power steering
components and systems supplier in China, today announced that its subsidiary,
Jingzhou Henglong Automotive Parts Co., Ltd., has entered into a multi-year
agreement to supply the SAIC-GM-Wuling ("SGMW") joint venture withits
high-quality rack and pinion power steering systems.
China Automotive Systems has commenced shipments, and the steering units are
intended to be primarily installed in SGMW's Wuling Hongguang brand, which is
the best selling multi-purpose vehicle ("MPV") in China. Based on current
order rates, total steering systems to be shipped by the Company to SGMW could
approximate 350,000 units for the 2013 year. No other terms of the agreement
GM reported record sales at SGMW of over 1.4 million total vehicles in 2012,
representing a 12.4% year-over-year sales volume increase. The SGMW joint
venture was founded in 2002 and it consists of two Chinese domestic partners,
SAIC Motor Corporation Limited and Liuzhou Wuling Motors Co Limited, and one
foreign partner, General Motors ("GM China"). SGMW is one of the leading
designers and manufacturers of minivans, pick-up trucks and MPVs as well as
one of the important participants in passenger cars in China.
"As the dominant leader in steering products for the Chinese OEM local brands,
this major contract win marks another key milestone in the execution of our
strategy to diversify our customer base and penetrate into the Sino-foreign
joint venture vehicle manufacturing segment. SGMC joins FAW Volkswagen and
Dongfeng Peugot Citroen as our customers in this sector, which provides
additional verification of our superior research and development program,
stringent quality control and world-class production capability," commented
Mr. Hanlin Chen, Chairman of China Automotive Systems.
"According to the China Association of Automobile Manufacturers, sales of MPV
vehicles climbed by 50% to over 300,000 units in the first quarter of 2013. We
are capturing more market share in one of the fastest growing vehicle segments
in China and we are pleased to be supporting SGMW's robust growth," Mr. Chen
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 ten 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 3.8 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
North America. For more information, please visit: http://www.caasauto.com.
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 the Company's estimates and assumptions
only as of the date of this press release. The Company's actual results may
differ materially from the results described in or anticipated by these
forward-looking statements due to certain risks and uncertainties, including
those described under the heading "Risk Factors" in the Company's Annual
Report on Form 10-K as filed with the Securities and Exchange Commission on
March 27, 2013, and in documents subsequently filed by the Company from time
to time. The Company expressly disclaims 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 more information, please contact:
Chief Financial Officer
China Automotive Systems, Inc.
SOURCE China Automotive Systems, Inc.
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