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Lucas Body Systems Wins $16 Million Contract From Calsonic

11 November 1997

Lucas Body Systems Wins $16 Million Contract From Calsonic

    BURNLEY, England, Nov. 11 -- Lucas Body Systems, a business
of LucasVarity's Electrical and Electronic Systems Division, has won a
$16 million (10m pounds) contract to supply Calsonic, Pontypool, Wales, the
leading Japanese supplier of heating components, with semi-automatic controls
for use in automotive heating, ventilation and air conditioning (HVAC)
equipment to be supplied to a major European vehicle manufacturer.  The order,
worth over $16 million (10m pounds) in total to LucasVarity, builds on the
company's business gains of the past two years, and will be supplied out of
the Lucas Body Systems plant in Burnley, England.
    Commenting on the order, David Chew, general manager of Lucas Body
Systems, Burnley, said, "We've devoted a lot of time to developing our
expertise in producing HVAC controls here in the U.K., and to developing our
collaboration with Calsonic. This order demonstrates the success of this
working relationship and the effort we have put in to developing the European
market over recent years."  "While this new contract will not create
additional jobs, it does come as a welcome boost for our existing workforce,
and will be accommodated by our present facilities," he added.
    The order, due to commence production in mid-1999, is for a new semi-
automatic air conditioning panel, the first automatic unit that Lucas Body
Systems will have supplied in Europe.  Lucas Body Systems HVAC expertise and
production capabilities have until recently been based exclusively in the
U.S., where Lucas Body Systems is the largest independent HVAC controls
producer, supplying major U.S.-based vehicle manufacturers including Chrysler
and Toyota.  Over the past two years, the company has concentrated on
exploiting this experience to develop and transfer much of the expertise and
production capability to the U.K. to supply the European market.  Lucas Body
Systems' collaboration with Calsonic began in 1994 with the aim of maximizing
the expertise of both companies to exploit the potential presented by the
developing European HVAC market.
    As part of this new contract, Lucas Automotive Electronics ---                                                                  another
business of LucasVarity's Electrical and Electronic Systems Division ---                                                                        will
supply printed circuit boards from their plant at College Road in Birmingham,
England.
    Lucas Body Systems designs and manufactures driver interface controls for
vehicle manufacturers worldwide.  The business is part of LucasVarity's
Electrical and Electronic Systems Division, a world class supplier of advanced
electronic controls, wiring and body electrical systems to the world's
automotive industry.
    LucasVarity designs, manufactures and supplies advanced technology
systems, products and services in the world's automotive, diesel engine,
aftermarket and aerospace industries.

    Note:  An exchange rate of $1.6 was used to convert pounds to dollars.

SOURCE  Lucas Body Systems