GM To Terminate Saturn L Production In Wilmington

TORONTO March 9, 2994; Dow Jones reported that Automodular Corp. has been advised that General Motors Corp. is terminating Saturn L vehicle production in Wilmington, Del., effective at the end of the third quarter.

In a press release, the company said it provides sequencing and subassembly services for the Saturn L assembly plant from its Wilmington facility.

Separately, Automodular said it has received notice that General Motors of Canada won't extend its purchase order for commodities sequenced by Automodular for the Oshawa, Ont. car plants from its Squires Beach Road facility in Pickering, Ont. Automodular's current order for these commodities expires in June.

The company estimates the loss of this business in Canada and Delaware will reduce 2004 sales by C$10 million and 2004 net income by about C$500,000.

Two new vehicles have been announced for the Wilmington facility to begin production in 2005 and 2006. Automodular said it is, or will be, bidding for sequencing and subassembly contracts for these new vehicles. However, it noted that success on these programs won't contribute to sales or earnings in 2004.

Automodular has bids outstanding for subassembly and sequencing services for General Motors of Canada's Oshawa car and truck plants for 2004 implementation. Success on some or all of these bids could offset the reductions from the other moves, the company said.

Automodular is an auto-parts supplier.