SCOTTSDALE, ARIZONA, (October 13, 2009) – In a joint announcement today, privately owned Russo and Steele Collector Automobile Auctions (“Russo and Steele”) and China Auto Logistics Inc. (“CALI”) (NASDAQ:CALI), said they 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 U.S. 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 3,000 clients throughout the country – I believe the potential for success is very high.”
Mr. 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.”