HUBEI, China, Nov. 29, 2004 (PRIMEZONE) -- China Automotive Systems Inc. (Nasdaq:CAAS) today announced it has been selected as an exclusive supplier for steering pumps for the Spark 1.0 vehicle, manufactured by SAIC GM Wuling Automobile Co. Ltd, which expects to produce 10,000 of this model in 2005.
The pumps will be manufactured by Zhejiang Heglong & Vie Pump Co. Ltd, a joint venture with 51 percent ownership by China Automotive Systems.
The company also announced it has been selected by Dong Feng Liuzhou Motor Co. Ltd. as a supplier of steering pumps for its MPV vehicle.
"These new supplier relationships underscore the company's successful strategy of leveraging its reputation and position within the China Automotive market. We look forward to expanding our steering pump business and additional opportunities within the overall automotive market," said Hanlin Chen, chief executive officer of China Automotive Systems.
Chen noted that these new agreements complement existing supplier relationships for steering pumps with Hafei Motor Co. Ltd for its Lobo vehicle model and SAIC-Chery Automobile Co. Ltd. for its QQ vehicle model.
ABOUT THE COMPANY
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 four Sino-foreign joint ventures.
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. 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 consumer preferences and tastes; and effectiveness of marketing; changes in laws and regulations; fluctuations in costs of production, and other factors as those discussed in the Company's reports filed with the Securities and Exchange Commission from time to time.