WUHAN, China, March 6, 2019 /PRNewswire/ -- China Automotive Systems, Inc. (Nasdaq: CAAS) ("CAAS" or the "Company"), a leading power steering components and systems supplier in China, today announced it has won a major exclusive supply contract from China's leading automaker Great Wall Motor Company Limited ("Great Wall").
Great Wall has announced its plan to launch a new independent flagship all-electric small vehicle brand, the ORA. With the roll-out of new vehicle brand, Great Wall will upgrade the steering systems in its new models from traditional hydraulic power steering to electric power steering ("EPS"). CAAS' EPS products will be installed in Great Wall's model ORA R150 and total shipments are expected to reach 150,000 units in 2019.
Mr. Qizhou Wu, Chief Executive Officer of CAAS, commented, "With annual sales consistently over one million units, Great Wall has been the undisputed champion of sports utility vehicles in China for years. Their move to small urban electric vehicles speaks volumes of the market opportunities. Being lighter weight with improved maneuverability on different road conditions, EPS is a natural fit for electric vehicles. Since the establishment of the joint venture with our Japanese partner KYB, the mass production of our EPS products has accelerated in late 2018. With this milestone contract, we are looking to regain growth momentum and solidify our market position in the EPS space."
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 eight 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 6 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 Group LLC in 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 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 filed with the Securities and Exchange Commission on March 29, 2018, and in documents subsequently filed by the Company from time to time 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.
For further information, please contact:
Chief Financial Officer
China Automotive Systems, Inc.
SOURCE China Automotive Systems, Inc.