The Company believes acquisitions will be a significant driver to grow its business in the future. We plan to purchase franchises to expand our business portfolio and generate attractive returns for the Company and its shareholders. We will continue to seek strong acquisition targets and are pursuing additional acquisition opportunities in geographies other than Tianjin as well. We remain confident that we are on track to fulfill our mid-term expansion plan of adding 10 dealerships to our growing national operations.Lentuo opened a new FAW-Volkswagen dealership in the central area of eastern Beijing last week and expects to generate sales from this dealership beginning this week. We expect the dealership to generate revenue within the range of RMB 180 million to RMB 200 million ($27.5 million to $30.5 million) for the year 2011. As we observe increasing demand for premium passenger vehicles to be a long-term trend among China’s growing number of affluent households, we expect a limited impact on the premium car segment of our business from Beijing’s new quota system. In addition, the prime location of the new dealership in Beijing will be a key competitive advantage for us in this market--both in terms of repair and maintenance services and new car sales.
Lentuo International Inc. Announces First Quarter 2011 Financial Results
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