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Ford Selects Tupy and SinterCast for New Engine Programme

    STOCKHOLM, Sweden--July 2, 2001--Ford Motor Company:

-- First ever CGI engine to be produced in high volume (more than 100,000 engines per year)
-- Engines to be supplied to Jaguar, PSA, Land Rover and Ford
-- Production start in 2003

    Ford Motor Company has awarded Tupy Fundicoes of Brazil, one of the world's leading iron foundries, and the high-tech Swedish company SinterCast, the production contract for the compacted graphite iron (CGI) cylinder block of its new V6 diesel engine. The state-of-the-art 2.7 litre V6 engine will be the first ever volume engine produced with a compacted graphite iron cylinder block. The use of compacted graphite iron has allowed Ford to achieve aggressive targets for engine performance, size, weight and cost that could not simultaneously be met by traditional engine materials, such as aluminium or alloyed grey cast iron. The engine satisfies Euro IV (2005) emissions requirements and, assisted by the stronger CGI engine material, has the potential to be equally compliant with Euro V (2008) legislation.
    Scheduled for production start during 2003, the new V6 engine will become the range-topping powerplant in the combined Ford-PSA (Peugeot- Citroen Group) global diesel engine strategy. With target applications including Jaguar, PSA, Land Rover and Ford vehicles, high volumes will be achieved during the first full production year, 2004. The selection of Tupy, SinterCast and compacted graphite iron for this flagship programme is particularly significant in the light of Ford's stated ambition, together with PSA, to become the largest diesel engine manufacturer in the world.
    Mr. Mario Egerland, President and C.E.O. of Tupy said, "The Ford decision is of great significance for Tupy. It confirms our belief in compacted graphite iron as a key engine construction material for the future and acknowledges and rewards our strategy to become the CGI foundry for the worldwide automotive industry. With this production programme leading the way, we anticipate considerable growth both within the Ford-PSA alliance and with other car and truck manufacturers in Europe, America and Asia. Tupy Fundicoes is committed to leading this trend toward CGI".
    Mr. Bertil Hagman, President & CEO of SinterCast said, "Following years of technical achievements, and successful low-volume production, this first volume production order signals the beginning of a new era for SinterCast, compacted graphite iron, and the world foundry and automotive industries. The selection of SinterCast CGI confirms the industry confidence in our process control technology for the reliable volume production of high quality CGI, and rewards our long-standing role as the CGI technology development partner to the industry. This important decision from Ford verifies that the entire CGI manufacturing process, including machining, satisfies mass production requirements and economics".