| China Automotive Systems, Inc., a leading | | | | |
| power steering components and systems | | | | With this supply agreement, CAAS has entered |
| supplier in China, announced that its | | | | into VW's global sourcing system. According |
| subsidiary Jingzhou Henglong Automotive Parts | | | | to the China Association of Automobile |
| Co. has entered into an agreement with FAW | | | | Manufacturers, two key VW joint ventures in |
| Volkswagen to supply sophisticated power | | | | China, FAW VW and Shanghai VW, together |
| steering systems. | | | | produced and sold over 680,000 passenger cars |
| | | | in China in 2006. FAW Volkswagen, the leading |
| The agreement, with a term of one year and an | | | | passenger car producer in China, experienced |
| option to extend for a further two years, | | | | a hearty 40 percent year over year unit sales |
| will start without delay. The power steering | | | | growth last year. In the first quarter of |
| systems will be installed in VW's Jetta and | | | | 2007, FAW Volkswagen's production and sales |
| Audi vehicles in China. The first commercial | | | | unit growth accelerated to 55 percent up from |
| shipment will be delivered by China | | | | same period in 2006. |
| Automotive Systems on May 21st 2007. Other | | | | |
| terms of the contract were not disclosed. | | | | "This agreement represents a major step |
| | | | towards our goal of becoming the number one |
| The VW Jetta, produced since 1980 and has | | | | producer in the power steering market in |
| spanned five generations, is a sedan version | | | | China. After a decade long effort of |
| of Golf. Its name came from the Jet stream, | | | | improving our product R&D, quality control, |
| following the automaker's long tradition of | | | | production scale and after-sale customer |
| naming cars for various winds. The Jetta has | | | | services, we have finally become a tier one |
| proven to be a clever move for VW. This is | | | | supplier to one of the largest global |
| because the car became the best-selling | | | | automakers," said Hanlin Chen, Chairman and |
| European car in Canada and the United States. | | | | Chief Executive Officer of China Automotive |
| To gauge its salability, as of 2005, the | | | | Systems. |
| European automaker sold over 6.6 million | | | | |
| Jettas around the globe. In the United States | | | | Chen added, "We are very excited about this |
| alone, VW sold over 2.2 million units. | | | | opportunity to provide reliable and |
| | | | dependable support to Volkswagen's rapid |
| Over the years, the Jetta has been offered in | | | | growth in China. As China's passenger vehicle |
| two and four-door sedan and five-door station | | | | OEM market continues to grow, we remain |
| wagon variants. Since its original version, | | | | focused on expanding our market share and |
| the Jetta has expanded in both size and | | | | strengthening our relationships with major |
| influence. As a fact, it has etched a | | | | OEMs, like Volkswagen, by providing high |
| milestone in the automotive global arena same | | | | quality and competitively priced products. In |
| with its sibling Beetle. | | | | addition, we continue to improve product |
| | | | quality and ramp up production capacity to |
| The VW Type, popularly known as the Beetle, | | | | prepare for potential opportunities outside |
| was introduced to the market in 1938. The car | | | | of China." |
| is made prominent by its shape as well as | | | | |
| distinct auto parts like the VW Beetle | | | | VW is also expanding its partnership with |
| rainguards. Even though scorned for its queer | | | | other auto giants. Porsche, is reported to be |
| styling, rough ride, noise, and weak power, | | | | contemplating on the possibilities inherent |
| the Beetle has ultimately become the most | | | | in its beefed-up partnership with Volkswagen. |
| produced and the longest automobile for a | | | | And hybrid technology is just one of the many |
| sole design. The car remained a hot seller | | | | options on the table. The possible sharing of |
| even as tough competition involving | | | | technology also means access to a large |
| refinement of the rear--wheel drive | | | | development team where Porsche can offer the |
| conventional subcompacts invaded the realm. | | | | best of hybrid engines. The Cayenne and |
| | | | Panamera are the cars Porsche says it will |
| The German automaker, at present, is | | | | offer as full hybrids, meaning that the |
| concentration on the enhancement of its old | | | | vehicles can travel up to speeds of 20 to 25 |
| product lines. It is also considering new and | | | | miles per hour without kicking on the |
| innovative models to pull more purchasers | | | | gasoline engine. |
| closer. | | | | |