Russo and Steele Collector Automobile Auctions (“Russo and Steele”) and China Auto Logistics Inc. (“CALI”) have signed a memorandum of understanding for a joint venture to develop the Russo and Steele Collector Automobile Auction business in China.
In connection with the planned joint venture, Russo and Steele expects to coordinate auction events with CALI in China and work together with CALI to develop marketing programs to reach potential consumers. CALI expects to advertise the Russo and Steele name to prospective clients, as well as assist with the development of Russo and Steele online auction technology. The companies said their memorandum of understanding is subject to executing a Definitive Agreement.
Drew Alcazar, owner of Russo and Steele, stated, “As our company celebrates its tenth anniversary, this is a very exciting step for us — bringing one of the premier US auctions of the world’s finest collectible automobiles to China, which is now the largest automobile market in the world. There are numerous enthusiasts there with a passion for collector cars and working with China Auto Logistics — one of the top sellers in China of high end luxury imports — with more than 3000 clients throughout the country — I believe the potential for success is very high.”
Tong Shiping, president and CEO of China Auto Logistics, stated, “We believe this will be a win-win situation for both companies. Russo and Steele has a well deserved reputation for conducting the ‘top’ auto auction events in the U.S. and we believe their marketing expertise will be very helpful to us in broadening the reach of our business as well as in helping to make what would be the first high end collectible auctions in China a great success. Recently, they also have begun to utilize the Internet for adding new bidders and participants via a LIVE online auction process. Together with our knowledge of the market, this is an area where the technology we are utilizing in building new web-based auto-related services in China should prove helpful.”
About Russo and Steele Collector Automobile Auctions
Russo and Steele Collector Automobiles is one of the nation’s premier collector car auctions; specializing in the world’s finest European sports cars, American muscle cars, hot rods and customs. Its two auctions each year attract clients all over the globe not only because of its reputation for stellar collector automobiles, but also unique auction experiences unattainable at any other collector car auction in the world. Its auction events take place with its signature auction in Scottsdale, Arizona every January, and Monterey, California in August. For additional information please visit www.russoandsteele.com or call 602.252.2697.
Description of China Auto Logistics Inc.
With 2008 sales of approximately $190 million, China Auto Logistics Inc. (OTCBB: CALI) is one of China’s top sellers of luxury imported cars as well as one of the country’s leading developers of websites for buyers and sellers of imported and domestic automobiles. It is also China’s leading “one stop” provider of logistical services and financing to imported car dealers nationwide. The Company has made the strategic decision to de-emphasize imported auto unit sales in favor of expanding its new, highly profitable domestic auto websites which are accessible through its national website, www.at160.com, launched in May, 2009. Its subscription and advertising based www.at188.com is the number one site for imported car dealers and consumers. Already contributing significantly to profits, the Company believes further expansion of its websites, including the addition of new web-based auto-related services, will drive future growth. For additional information: www.chinaautologisticsinc.com.