China Automotive Systems Achieves Production Milestone with 10 Millionth Steering Unit

WUHAN, Hubei, China, Nov. 22, 2010 /PRNewswire-Asia-FirstCall/ -- China Automotive Systems, Inc. (Nasdaq: CAAS) ("CAAS" or "the Company"), a leading power steering components and systems supplier in China, today announced the achievement of a significant milestone with the production of its 10 millionth power steering unit, at a ceremony held at the Company's Jingzhou Henglong Automotive Parts Co., Ltd. subsidiary.  

Mr. Hanlin Chen, Chairman of China Automotive Systems, noted that this important milestone reflects the Company's market position as the No.1 producer of power steering gears in China, the largest automotive vehicle market in the world.

CAAS began designing and producing steering units in 1993. By the end of 2004, CAAS had produced and sold its first 1 million power steering units. Growth accelerated and accumulated production reached over 5 million power steering units by the end of 2008. Today, CAAS almost doubled this production with its 10 millionth unit.

Among CAAS's over 60 OEM customers are Brilliance Auto, the largest producer of light vehicles, Chery Auto, the largest state-owned car manufacturer, and Beijing Auto, which is among the top 8 automotive groups in China. The Company expanded beyond its domestic brand focus through supplying products to GM-Wuling in 2004, followed by FAW-Volkswagen in 2007 and then Dongfeng Peugeot Citroen in 2008.  In 2009 the Company's quest to become a global supplier began to be realized as Chrysler Group LLC agreed to import CAAS's power steering gears into North America for it flagship Jeep Wrangler brand.    

The Company is aggressively expanding its technology and it entered into technology agreements with Bishop Steering Technology Limited and Nanyang Ind. Co. Ltd., and formed a steering systems research institute with the prestigious Tsinghua University to further develop EPS and Electronic Hydraulic Steering Systems (EHPS) technology.

With an ever expanding product offering and the introduction of the first domestically designed electric power steering systems in China, CAAS is also positioned to take market share away from imported EPS systems. The Company recently announced initial construction of a new facility to expand its EPS capacity from 200,000 units to 1 million units annually by 2013.

"We have successfully emphasized product performance and quality through innovation to meet the evolving needs of our customers and continue to focus on more efficient manufacturing and cost advantages," commented Mr. Chen.  "While achievement of this momentous milestone is gratifying, our goal is to see CAAS continue to grow larger and stronger over the next few years as our products now meet global standards as we become a top tier auto parts provider on a global basis."

About China Automotive Systems, Inc.

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 nine 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 with an annual production capacity of over 2.5 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., BYD Auto Company Limited, 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 discussed in the Company's reports filed with the Securities and Exchange Commission from time to time.

SOURCE China Automotive Systems, Inc.