Tower Automotive Reaches Tentative Agreements with Unions

Agreements with UAW, USW are subject to union ratification and Bankruptcy Court approval

NOVI, Mich., July 19 -- Tower Automotive today announced tentative contract agreements with the United Auto Workers union (UAW) and the United Steelworkers union (USW) covering approximately 2,100 Tower employees. The agreements are subject to ratification by both unions' affected memberships, and they also must be approved by the U.S. Bankruptcy Court overseeing Tower's Chapter 11 case. Details of the agreements will be released after the ratification process is completed.

"These agreements are a major step toward assuring Tower's future as a profitable, competitive automotive supplier," said Kathleen Ligocki, president and chief executive officer of Tower. "While the issues addressed in the negotiations were challenging, all parties worked hard to achieve a negotiated settlement that provides cost savings critical to Tower's reorganization plan. These agreements with the United Auto Workers and the United Steelworkers of America demonstrate the commitment of our active union membership to Tower's future and complement agreements already reached with our Milwaukee unions and retirees. Assuming these agreements are ratified by the union memberships and approved by the Bankruptcy Court, we will be one major step closer to the completion of our reorganization plan and our emergence from Chapter 11 later this year. I want to thank our Tower colleagues for all their hard work and dedication that have been so important to our reorganization process."

Bill Pumphrey, Tower's president of North American Operations, welcomed the tentative agreements as a key step in finalizing Tower's post-bankruptcy manufacturing structure. "Achieving settlements with the UAW and USW means that our labor costs going forward are clearly defined. This is an important factor in serving our current customers and planning for new business, and it also assures our customers that we will be able to meet their needs by delivering quality products on time, now and in the future."

About Tower Automotive

Tower Automotive, Inc. is a global designer and producer of vehicle structural components and assemblies used by every major automotive original equipment manufacturer, including BMW, DaimlerChrysler, Fiat, Ford, GM, Honda, Hyundai/Kia, Nissan, Toyota, Volkswagen and Volvo. Products include body structures and assemblies, lower vehicle frames and structures, chassis modules and systems, and suspension components. Additional company information is available at http://www.towerautomotive.com/ .