This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Lentuo International Provides Full Year 2013 Guidance And Announces Opening Of Its Flagship FAW-Volkswagen Store

Stocks in this article: LAS

BEIJING, July 24, 2013 /PRNewswire/ -- Lentuo International Inc. (NYSE: LAS) ("Lentuo" or the "Company"), a leading non-state-owned automobile retailer headquartered in Beijing, today announced that its flagship FAW-Volkswagen ("FAW-VW") store in Beijing was officially opened during a ceremony held last week. The flagship store had been undergoing trial-operations since May, 2013.

Located in Wangsiying township near Beijing's East Fourth Ring Road, the flagship FAW-VW store is adjacent to a large, heavily trafficked shopping mall and entertainment center as well as an exclusive housing community which will increase Lentuo's visibility and attract new customers. The dealership offers customers the latest model FAW-VW vehicles and provides the highest standard in automobile repair and maintenance services. The flagship store will also offer a full suite of value-added after sales services, including vehicle financing, auto insurance, car leasing, auto accessories, spare parts as well as a pre-owned car business.

The flagship store covers an area of 14,000 square meters and contains a three-story building with a 7,000 square meter showroom able to showcase 22 cars. The repair and maintenance service center has 56 separate workstations that are able to service up to 200 vehicles per day. The flagship store is expected to sell more than 3,000 vehicles annually and contribute vehicle sales of approximately RMB500 million annually.

"The opening of this flagship store represents a major milestone for Lentuo and another momentous step forward in our longstanding relationship with FAW-VW. Lentuo began selling FAW-VW vehicles in 1997 and has since deepened its relationship with FAW-VW by opening 4 FAW-VW dealerships so far, including the flagship store which is the largest FAW-VW dealership in China. As we move forward, we will continue strengthen our relationship with FAW-VW as we leverage the financial resources and support provided by First Automobile Finance, a subsidiary of FAW Group, for our network expansion following the comprehensive cooperation agreement we signed in August 2012," commented Mr. Hetong Guo, Founder and Chairman of Lentuo International.

"We have grown steadily over the past few years, doubling the number of dealerships to 12 since we listed on the NYSE in 2010. With the Company operating more efficiently and growing steadily, we expect to regain profitability in the second quarter of 2013, and realize no less than $10 million in net income for the full year 2013. With the recent investment of RMB300 million from our JV partner, Itochu, we have ample cash flow, and we are confident in our ability to deliver on our growth strategy."

About Lentuo International Inc.

Lentuo is a leading non-state-owned automobile retailer headquartered in Beijing. Lentuo operates 12 franchise dealerships, 10 automobile showrooms, one automobile repair shops and one car leasing company.

About FAW Group

FAW Group is a global leader in the vehicle manufacturing industry with a 50-year history of innovation. Founded in 1953, FAW employs 118,000 people around the world and sells products in over 70 countries. As China's state-owned automotive corporation, the company's total assets are valued at RMB131,491 billion. FAW is a diversified maker of quality light, medium, and heavy-duty trucks, automobiles, municipal buses and luxury tourist coaches, custom bus chassis, and mini-vehicles with total sales in excess of 7 million vehicles worldwide. FAW maintains the lead market position within China while continuing to expand into new international markets, executing a carefully planned strategy to build a comprehensive global organization.

About First Automobile Finance Co.

First Automobile Finance Co., Ltd. is a nonbanking financial institution that belongs to First Automobile Works (FAW). It is dedicated to developing automobile financing business into a pillar segment of FAW.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,399.67 +19.26 0.12%
S&P 500 1,904.01 +17.25 0.91%
NASDAQ 4,316.0740 +57.6360 1.35%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs