BEIJING – Lentuo International Inc., a leading non-state-owned automobile retailer in Beijing and a NYSE public listed company, announced on October 22 that it has signed a joint venture agreement with an unnamed Fortune Global 500 company based in Asia.
Under the terms of the agreement, the two companies will jointly operate Beijing Lentuo Autong Automobile Trading Co., Ltd. to expand sales and services in the high-end car segment in China. The agreement will be effective upon government approval.
The JV will focus on the expansion of the JV’s high-end 4S dealerships across China, starting with the new South Beijing Audi 4S dealership that Lentuo announced on July 23, 2012. The JV will scale up its higher margin repair and maintenance services.
Lentuo’s JV partner will invest ¥300 million ($47.62 million) and take a 40 percent stake in the JV. With extensive experience in operating and investing in high-end car dealerships across Asia, the JV partner will also act as a strategic investor to help strengthen the JV’s management and business operations over the long run.
Lentuo, founded in 1994, operates 11 franchise dealerships, 10 automobile showrooms, one automobile repair shop and one car leasing company in Beijing and a number of other cities in China. In December 2010, it became China’s first automobile retailer to be listed on the New York Stock Exchange.