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LucasVarity Contract to Supply Brakes for Chrysler SUVs

21 April 1998

LucasVarity Wins Major Contract to Supply Braking Systems For Chrysler's Sport Utility Vehicles

    LONDON, April 21 -- LucasVarity announced today that its
Light Vehicle Braking Systems division has won a major contract with Chrysler
Corporation to partner in the development and supply of a customized
braking system for future Chrysler sport utility vehicles.
    The brake system will feature for the first time on a Chrysler model LVBS'
innovative Girvac brake booster and master cylinder, which will also appear in
North America on future Honda and Ford models.  It will also include
performance-enhanced callipers and drum brakes.  The estimated annual value of
the contract is $50 million.
    LVBS and Chrysler will apply Chrysler's Extended Enterprise concept of
customer-supplier relationships, in which design, engineering and testing are
rationalized to speed the development process and reduce development costs.
    Victor Rice, Chief Executive of LucasVarity, said, "Following the
announcement three weeks ago of LVBS' major contract award with GM to supply
brakes for certain future passenger cars, this award represents another
significant achievement in our growth strategy.  It also demonstrates the
synergistic benefits of emerging the braking businesses of the former Lucas
Industries and former Varity Corporation; this award combines Lucas' actuation
and Colette front callipers with Varity Kelsey-Hayes' recently designed rotor
and rear drum brakes."
    Steve Lunn, Managing Director of Light Vehicle Braking Systems, said,
"This contract underscores our ability to design, develop and supply
leading-edge braking solutions.  Particularly gratifying is the fact that the
contract provides for our braking systems to be fitted in considerable volumes
in a robust segment of the vehicle market and was won against stiff
competition."
    Headquartered in Livonia, Michigan, Light Vehicle Braking Systems
supplies braking systems and components to more than 140 vehicle
manufacturers throughout the world.
    LucasVarity plc designs, manufactures and supplies advanced
technology systems, products and services in the world's automotive and
aerospace industries.

SOURCE  LucasVarity plc