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China Auto Logistics Inc.: As January Auto Sales in China Surpassed the U.S. for the First Time, China Auto Logistics Continued


Published on 2009-02-10 05:55:51, Last Modified on 2009-02-10 05:57:22 - Market Wire
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TIANJIN CITY, CHINA--(Marketwire - February 10, 2009) - China Auto Logistics Inc. (OTCBB: [ CALG ]) (the "Company"), one of China's leading automobile importers, a top provider of one-stop auto logistics and dealer financing and the originator of two leading automobile websites, reported today that it has expanded its domestic automobile website to two additional rapidly growing cities, Wuxi and Zhengzhou, as the climate in 2009 for automobile sales in China has continued to be very robust despite the worldwide economic slowdown.

As widely reported, the Company noted that January sales of automobiles in China were more than 790,000 units, up roughly 43% over sales of automobiles in the first month of 2008. As this growth occurred, as also widely reported, U.S. sales slipped approximately 37% to 656,976 units in January and, consequently, China auto sales for the month exceeded those in the U.S. for the first time.

Operating in this strong China environment, the Company continued the expansion of its [ www.1365car.com ] website for buyers and dealers of domestic automobiles which it began in late 2008 with the establishment of six linked websites in key cities throughout China.

Mr. Tong Shiping, CEO and President of the Company, stated, "Our growth plans correctly forecasted continuing strength in the Chinese automobile market, which has now been further buttressed by the well publicized steps taken by the Chinese government to ensure continuing growth in this sector of the economy."

He added, "The strength in the market is further reflected in the sales advances seen by such manufacturers as Hyundai, which saw more than a 10% month over month (December to January) increase in China sales as the year began and, at the luxury import high end, by Mercedes, which has seen China become its largest market and sold 2,700 automobiles here in January, up about 64% over 2008 January sales."

"Further," Mr. Shiping said, "China Automobile Industry Research projects that with estimated full year sales of nearly 10 million cars in 2009, China should surpass the U.S. and achieve the number one auto sales position in the world."

Initial Successes in Wuxi and Zhengzhou

Following the successful extension of [ www.1365car.com ] to six key cities in China in 2008, the Company said it is seeing early success in the further expansion of its website thus far this year to Wuxi, a thriving city in the southeastern Jiansu province (often referred to because of its massive development as "Little Shanghai"), and Zhengzhou, the capital and a key transportation hub in the central province of Henan.

In Zhengzhou, with its population of more than 7.5 million, there are currently 120 4S shops (automobile dealers) where the Company expects to initially garner roughly 30 new clients. With approximately 12,000 hits now occurring each day on [ www.1365car.com ], the Company reported it sold more than 30 automobiles within 20 days of the website's launch and anticipates initial revenues will be generated by next month.

Wuxi, which generated more than $64 billion GDP in 2008, making it the sixth strongest economic base in China, currently has 45 4S dealers, expected to grow to more than 100 in three years, of which the Company expects 40 new clients initially. Following a strong launch tied to the "First Wuxi Automobile Purchase Carnival" in a joint effort with Automobile Times, a Wuxi TV station, hits per day have exceeded 15,000 and revenues are expected to commence in March 2009.

Mr. Shiping commented, "We expect to announce the names of other new cities added to our linked network shortly, and following a very brief pause to digest this rapid growth, plan to add a number of new cities in the second half of the year to achieve our goal of national consumer and dealer coverage."

Company Description

Founded in 1995, with profitable sales in 2007 of approximately $152 million, China Auto Logistics Inc. has grown to become one of the top importers and sellers of luxury vehicles in China. Imported luxury automobiles, accounting for more than 10% of all Chinese automobile sales revenues, are the fastest growing segment of the still young Chinese automobile industry, now the second largest in the world. The Company has grown sales and profits by becoming one of China's top logistical servicing and financing companies for automobile importers. Additionally, it is a leader in providing accurate pricing and other automobile-related information with its two web portals, [ www.at188.com ], aimed at the import market, and [ www.1365car.tj.cn ], which it is expanding throughout China to reach the much larger market of domestically manufactured automobile purchasers and dealers. Following completion of a successful reverse merger on November 10, 2008, the Company is trading as a fully reporting company in the U.S. with the stock symbol CALG.OB. For additional information, please visit [ www.chinaautologisticsinc.com ].

Information Regarding Forward-Looking Statements

Except for historical information contained herein, the statements in this press release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, product demand, market competition, and risks inherent in our operations. These and other risks are described in our filings with the U.S. Securities and Exchange Commission.

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