SORL to Exclusively Supply Brake Cylinders to SGMW's Hongguang S Vehicle
ZHEJIANG, China--Nov. 19, 2013: SORL Auto Parts, Inc. (SORL) ("SORL" or the "Company"), a leading manufacturer and distributor of automotive brake systems as well as other key safety-related auto parts in China, announced today that SORL entered into a supply agreement to exclusively supply the Company's Clutch Master Cylinders and Clutch Cylinders to SAIC-GM-Wuling ("SGMW") for its Wuling Hongguang S vehicles. Based on current order rates, the initial contract is expected to contribute approximately $7.0 million in sales over the next two years.
SGMW's Wuling Hongguang brand is the best selling Multi-Purpose Vehicle ("MPV") in China. As an important upgrade to the original Hongguang model, the Wuling Hongguang S is manufactured in accordance with General Motors Global Manufacturing System. No other terms of the supply agreement were disclosed.
Ms. Jinrui Yu, SORL's Chief Operating Officer, commented, "The new Wuling Hongguang S vehicles are manufactured based on the advanced global manufacture and technology standards of GM. As the exclusive supplier for brake clutches, this agreement with a major OEM further recognizes the high performance and quality of our products."
Based in Liuzhou, China, SGMW is a joint venture between SAIC Motor, GM China and Liuzhou Wuling Motors specializing in the manufacture, sales and services of commercial and passenger vehicles. The Company employs approximately 20,000 workers and sold approximately 1.4 million vehicles in 2012. SGMW exports to South America, Middle East, Africa and other regions.