China Automotive Systems, Inc. (Nasdaq: CAAS), a leading power steering components and systems supplier in China, today announced that its subsidiary, Jingzhou Henglong Automotive Parts Co. ("Henglong"), has signed a supply agreement with ChangAn Auto Co. Ltd. ("ChangAn Auto").
Beginning in February 2007, Henglong started developing prototype power steering systems for ChangAn Auto. After more than a year of development and testing, Henglong has successfully developed 4 different models of hydraulic power steering systems and one model of Electronic Power Steering for ChangAn Auto. Henglong is now a power steering system supplier to ChangAn Auto’s CV6 model. It is estimated that Henglong will ship steering gears for the other 3 models in late 2008. Total shipments to ChangAn Auto for 2008 will be approximately 30,000 total units.
Mr. Qizhou Wu, Chief Executive Officer of China Automotive Systems, stated, "We view the ChangAn win as an important milestone as ChangAn Group is one of the largest auto manufacturing groups in China with a number of successful joint ventures with global auto makers. We see this as a good opportunity for us to break into another well established network."
