On May 29, 2012, China Automotive Systems, Inc. (the "Company) announced that on May 25, 2012 it redeemed all of its outstanding senior convertible notes, which were held by Lehman Brothers Commercial Corporation Asia Limited (In Liquidation). The negotiated total redemption price was US$32.4 million, which includes all principal, accrued and unpaid interest and the make-whole amounts as of the date of redemption.

The five-year senior convertible notes were issued in February 2008 with an original total principal amount of $35 million, a scheduled maturity date of February 15, 2013 and a conversion price per share of $7.0822. In April of 2009, the Company redeemed $5 million of the principal amount of the convertible notes. On March 1, 2011, upon the conversion of $6.4 million of the principal amount of the convertible notes, 907,708 common shares were issued at a conversion price of $7.0822 per share. The remaining total principal amount of the senior convertible notes was US$23.6 million. As a result of the redemption of the senior convertible notes, the total share count on a fully diluted basis will be reduced by 3.3 million shares.

A press release from the Company announcing the early redemption of the senior convertible notes is attached as Exhibit 99.1 to this Current Report on Form 8-K.

Item 9.01    Financial Statements and Exhibits

       (d)   Exhibits

Exhibit No   Description
99.1         Press Release of China Automotive Systems, Inc., dated May 29, 2012.