BEIJING, October 14, 2014 /PRNewswire/ — Lentuo International Inc. (NYSE: LAS) (“Lentuo” or “the Company”), a leading non-state-owned automobile retailer headquartered in Beijing, today announced that its BMW dealership (“the dealership”) in Gaobeidian, Hebei Province has been officially registered with the Gaobeidian Administration for Industry and Commerce.
This will be the first premium dealership in Gaobeidian, allowing customers to purchase premium cars, and get them serviced, in Gaobeidian rather than travel to surrounding cities such as Baoding, Beijing and Shijiazhuang as they previously had to. Gaobeidian is a small but economically prosperous city located just south of Beijing in the Beijing–Tianjin–Hebei economic triangle. Marketing research by both BMW and the Company indicates substantial demand for premium cars in and around the city.
The dealership, which should officially open during the third quarter of 2015, is expected to sell 250 new premium cars and contribute about RMB125 million in revenue in 2015. The Company believes that the dealership will break-even by the end of 2015. Once stabilized, the dealership is expected to sell about 900 new premium cars and contribute over RMB400 million in revenue annually.
“We are extremely excited to begin building a long and fruitful relationship with BMW as we work to quickly develop Gaobeidian’s first premium-car dealership,” commented Mr. Hetong Guo, Founder and Chairman of Lentuo International. “Lentuo’s new BMW dealership will allow customers to locally purchase and repair premium cars rather than travel long distances to surrounding cities. Its location within the Beijing–Tianjin–Hebei economic triangle will also allow us to increase the brand visibility of our premium-car business and build upon the reputation for quality we have built in Beijing.”
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.
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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:
Lentuo Investor Relations
Mr. Christian Arnell
Telephone +86 10 5900 1548
Ms. Linda Bergkamp
Phone: +1-480-614-3004 (U.S.A.)