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April 17, 2014 /PRNewswire/ -- Lentuo International Inc. (NYSE: LAS) ("Lentuo" or the "Company"), a leading non-state-owned automobile retailer headquartered in
Beijing, today announced it has launched a quality certification program to support its growing Certified pre-owned car business and improve confidence and transparency in the pre-owned car industry.
Effective today all of the Company's mid- to high-end pre-owned cars will receive a complete technical inspection and analysis to ensure they have no significant frame or internal damage, are in excellent working order and meet or exceed generally accepted standards for a particular make and model. Only those cars that successfully pass this inspection will be offered for sale. This will provide much needed price transparency, increase buyer confidence and make financial institutions more comfortable in financing purchases and managing credit risk.
These cars, labeled Lentuo Certified Quality will be sold through the O2O platform announced by the Company on
March 3, 2014, which will incorporate the Company's flagship showroom in
Beijing and additional pre-owned dealerships to be opened as the Company expands geographically.
Lentuo expects various substantial synergistic effects resulting from the build–up of this dedicated pre-owned car business. Among others, revenues from repair and maintenance should expand as the Company will offer discounts to buyers of its certified pre-owned cars.
Financing for pre-owned cars in
China has been constrained by the lack of pricing transparency and quality standards, somewhat slowing down the expansion of this much needed market. With its reputation for quality, advanced technological equipment and the launch of this rigorous certification program, Lentuo has gained the strategic support of China Orient Tiantong Capital Management Ltd., a subsidiary of China Orient Asset Management Corp, a major state-owned financial asset management company. China Orient Tiantong will leverage its institutional power and substantial funding capabilities to help Lentuo provide adequate financing to the certified pre-owned car buyers.
"With the launch of this program, the O2O platform, and the strategic financial support of China Orient Tiantong, we now have in place the key elements necessary to build a robust pre-owned car business that we expect to grow beyond
Beijing over time," said Lentuo founder and chairman, Mr. Hetong Guo.
Mr. Guo continued: "Our program, with its certified expert inspection and industry-leading warranties, will help, we believe, to greatly increase the level of confidence in our pre-owned cars and make the pricing of these cars far more transparent. This should help us drive our sales of pre-owned cars to a higher level, especially once the O2O platform is operational. We also expect additional benefits as a result of the synergistic effect with our after-sale services."