HUBEI, China, Jan. 14, 2005 (PRIMEZONE) -- China Automotive Systems Inc. (Nasdaq:CAAS) today announced it has signed a technology licensing agreement with Korea Delphi Automotive Systems Corporation to manufacture and export its M150/M200 model automotive steering systems. These systems will be utilized in GM Daewoo Auto & Technology Company's Matiz vehicle.
The systems, which will be produced under Korea Delphi's quality control and supervision systems, will be manufactured by Jingzhou Henglong Automobile Parts Manufacture Co., Ltd, a subsidiary of China Automotive Systems.
"This licensing agreement reflects the company's ongoing strategy of leveraging its reputation and position within the Chinese automotive market to attract the attention of global organizations like Korea Delphi. We look forward to expanding our steering systems business and a long-term relationship with this highly respected automotive organization," said Hanlin Chen, chief executive officer of China Automotive Systems.
"The selection of China Automotive to license our technology and produce these sophisticated steering systems was based on its high quality manufacturing capabilities and the company's solid management team. We look forward to additional future cooperative opportunities," said Jee Ki Cheol, president of Korea Delphi.
Andy Yiuwong Tse, senior vice president of China Automotive and general manager of Jingzhou Henglong Automobile, said, "This agreement is a historical moment and provides a solid foundation for China Automotive's strategic focus on expanding its international market presence."
China Automotive recently announced it was selected as an exclusive supplier for steering pumps for the Spark 1.0 vehicle manufactured by SAIC GM Wuling Automobile Co. and by Dong Feng Liuzhou Motor Co. Ltd. as a supplier of steering pumps for its MPV vehicle.
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.