BEIJING, Aug. 22, 2012 /PRNewswire-Asia/ -- Lentuo International Inc. (NYSE: LAS, "Lentuo" or the "Company"), a leading non-state-owned automobile retailer in Beijing, today announced that the Company has signed a general framework agreement with First Automobile Finance Co., Ltd. ("FAF"), a subsidiary of FAW Group. Under this agreement, FAF and Lentuo will share resources and cooperate in providing customer financing, auto insurance as well as other financial services. The company also signed two comprehensive cooperation agreements with FAW Auto Finance Co., Ltd. ("FAW-AF"), a wholly owned subsidiary of FAF, and Saneguard Auto Insurance Co., Ltd. ("Sanegard"), a subsidiary of FAF. These agreements cover a range of services which will enable Lentuo to expand its service offering, improve its competitive position and strengthen its brand. Lentuo is the first automobile retailer in China to sign such an agreement with FAW-AF.
FAW-AF will help finance Lentuo's 4S dealership network expansion in China. FAW-AF will also provide corporate credit to support Lentuo's vehicle purchasing and consumer credit and lease financing to Lentuo's customers.
Sanegard and Lentuo will cooperate in offering auto insurance, auto warranties and extended warranties to Lentuo's customers. Sanegard will provide Lentuo with highly professional insurance services on underwriting, claims payment and processing, and risk control.
"We are extremely pleased with this vote of confidence from FAW Group that results from years of working together on many projects," said Mr. Hetong Guo, Founder and Chairman of Lentuo International. "These agreements deepen our strategic partnership with FAW Group and validate our development strategy in Beijing and a growing number of other cities. Forging strategic relationships with industry leaders like FAW-AF and Sanegard shows our commitment to further diversifying our business, increasing customer loyalty, and strengthening our brand. FAW-AF's credit will provide strong financial support to our dealership expansion as we enter new markets while capital markets remain uncertain. Our auto insurance, extended warranty and other after-sales services will greatly benefit from Sanegard's extensive experience and highly professional insurance services. By leveraging these strong relationships and building upon our expansion strategy, we are positioning the Company for continued growth well into the future."About Lentuo International Inc. Lentuo is a leading non-state-owned automobile retailer operating 11 franchise dealerships, 10 automobile showrooms, one automobile repair shop, and one car leasing company in Beijing and a growing number of other cities in China. About First Automobile Finance Co.
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