Thomas G. Klein Resigns as Vice Chairman
26 June 1998
Thomas G. Klein Resigns as Vice Chairman of Automotive Performance Group, Inc.; Klein Engines Repositioned to Help APG Achieve Profitability in 1999
PHOENIX--June 26, 1998--Automotive Performance Group, Inc. (OTCBB: RACG), a full-service owner and operator of high performance automotive businesses, announced today that Thomas G. Klein has resigned as Vice Chairman and a director of APG and as President and CEO of Klein Engines and Competition Components, a wholly owned subsidiary of APG.Klein, 60, will remain a consultant to APG for the next two years. James E. Dunn, 53, COO of APG, has been named President and CEO of Klein Engines.
Beginning in May, 1996, Klein served as President and CEO of Klein Engines - a builder of high performance specialty engines for sprint car, stock car, Indy car, drag racing and marine competition since 1974.
"Tom Klein has been a valuable contributor to Klein Engines and to the development of Automotive Performance Group," said Andrew Evans, Chairman and President of APG. "Thanks to a plan developed by Tom and the other members of the APG board, Klein Engines last week instituted procedures which we believe will help Klein Engines achieve its goal of achieving a break-even level of profitability in the final two quarters of 1998. This is expected to lead to APG profitability in 1999. We very much appreciate Tom Klein's efforts to make APG a success."
Klein was also pleased with his accomplishments and eager to explore new challenges.
"I fully intend to help APG in any capacity I can for as long as I am needed," said Klein, who has built racing engines since 1965. "I expect Klein Engines and APG to do very well in the future, but there are some special projects that I have wanted to pursue for some time, and I realized that I would have to devote the majority of my time to these endeavors."
In repositioning Klein Engines, the company will reduce operations and production volume and focus on utilizing positive brand-name recognition to develop a branded-parts business. Klein will also continue to produce racing powerplants. In June, Klein engines have recorded nearly a dozen sprint car and stock car victories while powering the fastest rookie qualifier in the fastest Indy car race of 1998, the True Value 500K at Texas Motor Speedway.
Additionally, APG will cross-promote Klein Engines with other APG properties, such as Royal Purple Motor Oil, to establish all APG products as the premier products in their categories.
APG is a full-service owner and operator of a variety of high performance automotive businesses including Royal Purple Motor Oil, which produces synthetic oil products favored by many racing teams and manufacturers; and Klein Engines and Competition Components, Inc., a leading manufacturer of high performance engines. In addition, APG owns Team Scandia, which last year became the second team in history and the first in a quarter century to record victories in three major North American racing series in the same year. Team Scandia won the Exxon Superflo 12 Hours of Sebring (Sports Car road racing), the Mopar Parts Nationals at Englishtown, N.J. (NHRA Top Fuel drag racing), and the Las Vegas 500K (IRL Indy car racing) in 1997. APG owns 50 percent of Scandia Bodine Racing, a competitor on the prestigious NASCAR Winston Cup stock car racing circuit. APG also has marketing and personal services agreements with its contracted drivers Jimmy Kite, Cristen Powell and Brett Bodine.
This press release contains statements of a forward-looking nature regarding future events. These statements are only predictions and actual events may differ materially. Please refer to documents that Automotive Performance Group files from time to time with the Securities and Exchange Commission for a discussion of certain factors that could cause actual results to differ materially from those contained in the forward-looking statements