BEIJING, Jan. 28, 2015 /PRNewswire/ -- Lentuo International Inc. (NYSE: LAS) ("Lentuo" or the "Company"), a leading non-state-owned automobile retailer headquartered in Beijing, today announced that it has begun a strategic expansion into the electric vehicle ("EV") and plug-in hybrid EV ("PEV") value-added services as an extension of its after sales business strategy. The Company aims to become an early mover into a new sector that is poised for substantial growth with strong support from the Chinese government.
This strategic expansion will help the Company accelerate growth, improve profitability and further strengthen its brand by leveraging its extensive industry experience to cooperate with internationally respected EV and PEV industry players.
Due to increasing environmental concerns over CO2 emissions, the Chinese government has made it a priority to support the EV industry by enacting several subsidies and incentives. China's General Office of the State Council issued Guidance on Speeding up the Popularization and Application of New Energy Vehicles in 2014 which encouraged private investment in charging stations, removed the 10% purchase tax, and mandated government and party offices across the nation to purchase EVs and PEVs. This along with the government's mandate of 78 EV standards has increased confidence in the industry's future. According to statistics compiled by the Ministry of Industry and Information Technology, over 83,900 EVs and PEVs were produced in China in 2014, nearly four times the amount produced in 2013. EV and PEV production in December 2014 alone exceeded 27,200, a new global monthly production record as China's EV industry enters an explosive stage of growth.
The Company is in active discussions with a German company, that is a highly experienced developer and manufacturer of automobile roof-integrated solar systems, leveraging specialized curved roof surface technology, that are used in a number of models manufactured by a few world-class OEMs. Meanwhile, this company is already integrating its roof systems in smart EV charging stations in China, a market with great growth potential. The German company's controlling shareholder is a market leader and the largest non-state-owned manufacturer and operator of EV and PEV charging stations in China and has already constructed, and is currently managing, charging station networks in some of China's largest urban areas.
Lentuo believes that these discussions will lead to a strategic partnership agreement to enter the EV industry. And, the Company will provide progress updates by way of press releases as appropriate.
About Lentuo International Inc.
Founded in 1994, Lentuo Group ("Lentuo") is a leading Chinese automobile retailer headquartered in Beijing. Through its many subsidiaries, Lentuo operates 4S franchise dealerships, automobile showrooms, automobile repair shops, a car leasing company, automobile financing and a pre-owned car business.
Lentuo dealership brands include FAW Audi, FAW-Volkswagen, Shanghai VW, FAW Toyota, FAW Mazda, Honda, and Chang'an Mazda. Since its establishment, Lentuo has developed relationships with many other well-known domestic and overseas brands as it expands further into the luxury car market. Annual sales for Lentuo's dealership brands consistently rank among the top in Beijing and China. On December 10th, 2010, Lentuo was listed on the New York Stock Exchange as the first and only Chinese auto-dealership group.
Over the past 20 years, Lentuo has received various industry awards from the government, OEMs and industry associations. Lentuo has been recognized as a Famous Trademark by the Beijing Administration for Industry and Commerce (BAIC), a Top 50 Auto Dealer in China, a China Automobile Sales and Service Top Ten Enterprise Group, and has been awarded the Outstanding Contribution Award and Distinguished Contribution Award in the China Automobile Dealers Industry by CADA. It is the only triple A-rated Beijing Automobile Works dealership group in China to have been designated an FAW strategic partner, and awarded FAW Audi Sales Award, FAW Audi No. 1 Customer Satisfaction, FAW–Volkswagen National Sales Champion, FAW-Volkswagen Gold Award for Service Satisfaction, Shanghai Volkswagen 6 Star-Rated Franchise Dealer and FAW Mazda National Sales Champion.
For more information, please visit http://lentuo.investorroom.com/
Safe Harbor Statement
This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "target," "going forward," "outlook" and similar statements. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company's control, which may cause the Company's actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
For more information, please contact:
Ms. Jiangyu Luo
Lentuo International Inc.
Mr. Christian Arnell
Ms. Linda Bergkamp
Phone: +1-480-614-3004 (U.S.A.)
SOURCE Lentuo International Inc.