ASC Evaluating Niche-Vehicle Assembly Operations in North America

* Company Looks to Expand Low-Volume Production Capabilities

LAS VEGAS, Oct. 31 -- ASC Incorporated, a full-service specialty-vehicle development partner for automotive manufacturers, today announced its intention to expand its low-volume production capabilities and stated it is currently evaluating complete niche-vehicle assembly options in the U.S. and Mexico.

"With the continued 'nichification' of the North American automotive market, there is a growing need for efficient, low-volume assembly operations capable of producing complete vehicles in volumes of as low as 5,000 to 10,000 units per year," said ASC president and chief executive officer Paul Wilbur, speaking at a press conference here at the 2005 Specialty Equipment Market Association (SEMA) show. "Our vision is to create a highly flexible, low- volume assembly operation with a total capacity of approximately 50,000 vehicles per year and capable of producing three to five different specialty vehicle models at once, for various automakers."

Unlike those of independent European vehicle assemblers, ASC's business model is not based on providing extra, "over-flow" capacity to automakers, according to Wilbur. Instead, it is based on providing automakers a total, cost-effective solution for bringing low-volume niche vehicles to life for their customers -- something typically not economically feasible in any current or planned North American assembly plants.

"ASC's experience in working with General Motors Corp. on the Chevrolet SSR roadster-pickup has proven that specialty vehicles can be effectively created in low volumes using ASC's unique 'humanation' production system, which stresses human ingenuity and low-investment tooling over costly robots, conveyor systems and other high tech," said Wilbur. Although ASC does not perform final assembly of the SSR, more than 90 percent of the total vehicle content is managed by ASC, including sub-assembly of 42 major vehicle systems.

While Wilbur did not disclose which assembly-plant locations in North America ASC is evaluating, he did note that the company is evaluating both new, "green-field" facilities as well as existing and/or idled facilities, and that the search so far has centered on Kentucky, Michigan and Virginia. He also noted that ASC is currently talking to four different automakers about the possible production in the plant. The company hopes to have a site selected in 2006, he said.

"Our experience with the SSR has proven to us that niche vehicles can be successful in low volumes if the business model is structured properly," continued Wilbur.

ASC's overall production for the SSR since its volume launch in the fall of 2004 has been 22,433 vehicle-units, 12 percent above ASC's 10,000 vehicle- units per-year program goal, said Wilbur. He also noted that SSR retail sales in the U.S. over the past 12 reported months, October 2004 through September 2005, are up 3 percent -- 9,151 units vs. 8,903 units for the prior 12-month period.

"In addition to our work on the SSR," said Wilbur, "recent requests of ASC from OEMs to help them create specialty vehicle strategies, recent independent studies detailing the strategic value of specialty vehicles to OEMs plus the success of other ASC programs such as the new Toyota Camry Solara program and the new Dodge Viper coupe give us tremendous confidence in ASC's business model for low-volume vehicles. The time is ripe for us to contemplate taking this next step in low-volume production."

The heart of ASC's low-volume business model is a highly flexible, low- investment production system. For instance, ASC's plant in Lansing, Mich., where the SSR sub-assemblies are produced, uses just six robots and employs laser-guided carts operating with 12-volt batteries to move work-in-process inventory, rather than high-tech, costly conveyor systems. The strategic use of these types of flexible methods -- from product design though engineering through production -- allows ASC to help any OEM client bring to life and produce specialty vehicles at a fraction of the cost of traditional ways of doing business, according to Wilbur.

ASC's unique capabilities, Wilbur also noted, include a world-class design organization, including five design centers; a much-strengthened engineering presence, complemented by the recent addition of new vice chairman Chris Theodore; and a flexible, low-investment manufacturing model that's production-tested and available to be applied on a larger and wider scale.

ASC's award-winning programs include vehicle development and sub-assembly of the Chevrolet SSR (winner of a "Gold" award in the 2004 IDEA industrial design awards competition sponsored by Business Week); convertible systems for the Toyota Camry Solara and Mitsubishi Eclipse; and numerous appearance programs and body packages for such products as the Dodge SRT-4, Dodge Viper and Chrysler Group SRT-8 models. Founded in 1965 and headquartered in Southgate, Mich., the company employs more than 1,000 car nuts at ten facilities in the U.S., and is on the Web at http://www.ascglobal.com/ .