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China Automotive Systems Passes New Road Test

Jingzhou Henglong Automotive Parts, a subsidiary of power steering components and systems supplier China Automotive Systems, has passed Dongfeng Peugeot Citroen Automobile Company's safety test and road test for its power steering gears and started preparing its initial shipment of model Dongfeng Peugeot 206 to DPCA.

According to the China Association of Automobile Manufacturers, Dongfeng Peugeot Citroen Automobile Company produced over 213,000 passenger cars and sold 207,000 passenger cars in 2007. DPCA was consistently ranked as a top 10 passenger car producer in China since 2005.

Qizhou Wu, CEO of China Automotive Systems, stated in a press release, "After winning a FAW Volkswagen contract last May, we are excited to move closer towards another important European automakers' auto parts purchasing system in China. As a key safety-related component of vehicles, our products have been approved by one of the highest standards in the world. We are very proud that our engineering team and R&D team have proved our power steering systems to consistently perform well in severe weather, temperature and road conditions. We look forward to forging a long-term relationship with DPCA."

Since March 2005, Henglong has developed three power steering gears for DPCA: Dongfeng Peugeot 206, Dongfeng Citroen Elysee and Dongfeng Citroen new Xsara Picasso. The power steering gears for the Dongfeng Peugeot 206
have already passed the French UTAC safety test. Trial production will begin in March 2008, and commercial production is expected to commence in May 2008.

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