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June 20, 2013 /PRNewswire/ -- Lentuo International Inc. (NYSE: LAS) ("Lentuo" or the "Company"), a leading non-state-owned automobile retailer headquartered in
Beijing, today announced that it has signed a letter of intent ("LOI") with the Hailin Economic and Technological Development Zone in Hailin City,
China to jointly develop the Hailin-Lentuo Auto Mall.
Heilongjiang Province, the Hailin Economic and Technological Development Zone was designated as a national level development zone by the State Council in 2010. It is one of the only three national level Economic and Technological Development Zones in
Heilongjiang Province. Under the terms of the LOI, Hailin City has agreed to provide approximately 266,000 square meters for the auto mall. With the strong support of Hailin City's government and the benefit of its long experience in the car dealership business, the Company is in the process of selecting strategic investors for the project.
The Hailin-Lentuo Auto Mall will include numerous full-service 4S dealerships from some of the world's leading brands with a large inventory of new and pre-owned cars, state-of-the-art showrooms, repair and maintenance service centers, vehicle insurance vendors, leasing services, auto parts, carwash, etc.
"This is another important step in our growth strategy as it will significantly expand our presence outside
Beijing and will give us a leading role in one of the region's newest auto malls. I am thankful to the Hailin government for its trust in our ability to lead this project to success both for the city of Hailin and for Lentuo and its shareholders," commented Mr. Hetong Guo, Founder and Chairman of Lentuo. "Hailin City, with its growing middle class and lack of a dominant dealership, is an ideal example of a strategic city for our expansion program. The auto mall will further expand our geographic reach in
China and support our brand with marketing campaigns focused on
"The concentration of a number of dealerships and ancillary operations, and the centralization of our internal resources in one specially designed and technologically up-to-date environment will allow us to capitalize on economies of scale and effective cost management," concluded Mr. Guo.