Lentuo International, a Beijing based automobile retailer has acquired a 60% stake of a Honda dealership in Tianjin,China for RMB16m ($2.5m), effective 1 July 2011.
The dealership sold 1,500 vehicles and serviced 14,000 vehicles in 2010 and the company expects the dealership to contribute RMB150m ($23.2m) in revenues to Lentuo for the year ending 31 December 2011.
In addition, the company has opened its new FAW-Volkswagen dealership on Guangqumenwai Street, Beijing, in June and expects the new dealership to sell 800 cars and generate revenues of RMB180m to RMB200m ($27.5m to $30.5m) in 2011.
The company has also started construction on its FAW-Volkswagen dealership in Beijing in June 2011, which will showcase the latest Volkswagen products and offer a full range of maintenance and repair services.
The construction of the FAW-Volkswagen dealership in Beijing is expected to be completed during the fourth quarter of 2011.
Lentuo founder and chairman Hetong Guo said the company is making solid progress on its expansion strategy.
"The Tianjin Honda dealership acquisition increases the geographic reach of the Lentuo brand, establishing our market presence in one of China's largest and fastest-growing cities," Guo said.
"We are also excited to deepen our relationship with Volkswagen though the recently opened Guangqumenwai Street dealership and our flagship store under-construction in Beijing.
"These accomplishments, combined with our additional potential acquisitions in 2011, position the company for another year of strong financial performance."
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