PROPERTY, PLANT AND EQUIPMENT

9 Months Ended

Sep. 30, 2012

PROPERTY, PLANT AND EQUIPMENT [Abstract]

NOTE 6 - PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment are summarized as follows (in thousands):

	September 30, 2012			December 31, 2011

Buildings and improvements	$	20,420		$	21,649
Machinery and equipment		52,325			39,566
Office furniture and equipment		485			415
Leasehold improvements		36			37
Vehicles		798			745
		74,064			62, 412
Less - accumulated depreciation
and amortization		(17, 410	)		(15,459	)
	$	56,654		$	46,953

Four pieces of land were acquired from the acquisition of Jonway auto in 2011, all land in the People's Republic of China is government owned and cannot be sold to any individual or company. However, the government grants the user a "land use right" (the Right) to use the land. The Company has the right to use the land for 50 years and amortized the Right on a straight-line basis over the period of 50 years. Intangible assets consist of the following:

	September 30, 2012			December 31, 2011

Land use right	$	10,433		$	10,518
Software		97			92
		10,530			10,610
Less: accumulated amortization		(722	)		(535	)
	$	9,808		$	10,075

Depreciation and amortization expense was $4.1 and $4.0 million for the nine months and $1.8 and $2 million for the three months ended September 30, 2012 and 2011, respectively.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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