HUBEI PROVINCE, China, March 22, 2011 /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 that its subsidiary, Wuhan Jielong Power Steering Co. Ltd., is receiving growing interest in its electric power steering ("EPS") systems in the large Chinese automotive market. For 2010, sales of the Company's EPS products reached approximately 40,000 units and CAAS expects its EPS sales will reach 150,000 units for 2011.
The Company designed and produced the first domestic EPS products in China. First shipments began in September 2009 to Suzuki with Changan Automobile Company ("Changan") also becoming a customer in mid-2010. Recent customers for the Company's EPS products are Dongnan Motor, FAW Haima Automobile and Great Wall Motors.
The Company also formed a joint venture ("JV") in early 2010 with the Beijing Hainachuan Auto Parts Co. Ltd. subsidiary of Beijing Automobile Industrial Holdings ("Beijing Auto") to design, develop and manufacture both hydraulic and electric power steering systems. A new production facility for the JV is being completed with a design capacity for 300,000 units of hydraulic and 200,000 units of electric power steering systems plus parts.
Further, as previously announced, CAAS is building a new 120,000 square meter production plant in Wuhan to supplement the Jinzhou plant's annual EPS production capacity of 200,000 units.
Mr. Hanlin Chen, Chairman of China Automotive Systems, commented, "The increasing acceptance of our EPS products is another milestone in our path to become a leader in the large global steering market and demonstrates our growing R&D capabilities. EPS technology is environmentally safer and more fuel efficient than standard hydraulic units and we believe it will be a growth driver over the next few years. "
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 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 four 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. 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, dated March 25, 2010, filed with the Securities and Exchange Commission, and in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission. These potential risks and uncertainties include, among other things, the outcome and results of the Company's review, the risk that the final conclusion of the review could result in a determination that the effect of the issues under review are materially greater or lesser than the Company currently believes to be the case, the risk that these matters could adversely affect the Company's ability to make timely filings with the Securities and Exchange Commission, additional issues that may arise in connection with the ongoing review, risks of damage to the Company's business and reputation arising from these matters, potential claims or proceedings relating to such matters, including stockholder, employee and customer litigation and/or claims and action by the SEC and/or other governmental agencies, and the additional risk factors described in our filings 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.
SOURCE China Automotive Systems, Inc.