BEIJING, June 19, 2014 /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 joined the China Automobile Dealers Association's ("CADA") newly launched Xing Certified Pre-Owned Car Alliance ("Xing Alliance").
This move, said Lentuo, is projected to generate incremental 2014 company revenue of approximately US$40 million.
This new revenue, said LAS chairman and CEO Mr. Hetong Guo, is expected to arise as a result of the Xing Alliance increasing the level of confidence in pre-owned cars, which, in turn, will enhance growth of Lentuo's recently formed certified pre-owned car business and increase its 2014 pre-owned sales by about 800 cars.
Lentuo is the only publicly listed company among the first nine to join the Xing Alliance, which is expected to provide the first pre-owned quality certification standard in China. The Xing Alliance will oversee the nationwide rollout of CADA's pre-owned car technical inspection and analysis procedures. All Xing Alliance 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 CADA standards for a particular make and model. Only those cars which successfully pass these standards will receive Xing Alliance Certification."We are honored to be among the first nine companies invited to join the Xing Alliance," added Mr. Guo. "We believe our membership will help us to further leverage our solid reputation for quality and reliability in the pre-owned auto market. As this market develops, we expect our association with the Xing Alliance to produce accelerating revenue for our own pre-owned car business." According to recent data from CADA, pre-owned car sales in China are expected to grow from 10 million cars in 2015 to 20 million in 2020. 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 shop and one car leasing company. Website: http://lentuo.investorroom.com/ Safe Harbor Statement This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "target," "going forward," "outlook" and similar statements. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company's control, which may cause the Company's actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.