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LucasVarity Reorganises Automotive Activities to Improve Customer Focus

5 August 1998

LucasVarity Reorganises Automotive Activities to Improve Customer Focus

    LONDON, Aug. 5 -- Since its creation in 1996, LucasVarity has
made major progress in securing operational improvements, reducing its cost
base and winning new business.  However, achievement of LucasVarity's Vision
depends on sustained, long-term sales growth and the company has been
conducting a review of its strategic options to accomplish this.  From that
review it has concluded that automotive and aerospace will remain its core
business sectors and that its existing automotive operations should be
restructured into a more focused organisation.  This reorganisation will
enable an improved response to the demands of its customers for systems
solutions on a global basis.
    Effective immediately, John Plant is promoted to the position of
President, LucasVarity Automotive.  This new business unit will bring together
the activities of the divisions serving automotive markets -- Light Vehicle
Braking Systems, Aftermarket Operations, Diesel Systems and Electrical and
Electronic Systems -- enabling them to be managed on a more integrated and
coherent basis.  John Plant, who formerly was Managing Director of the
Electrical and Electronic Systems division, will be based in Detroit, Michigan
and will report to Tony Gilroy, Chief Operating Officer of LucasVarity.
    The future of the Heavy Vehicle Braking Systems business is the subject of
a separate announcement, also made today.
    LucasVarity's commitment to the automotive sector is reinforced by the
appointment of Steve Lunn as Deputy President and Chief Operating Officer,
LucasVarity Automotive, responsible to John Plant.  In this key role Steve
Lunn, formerly Managing Director of Light Vehicle Braking Systems, will have
particular responsibility for assuring the competitiveness of LucasVarity
Automotive in its worldwide markets through the development and consistent
delivery of world-class operating performance.
    The creation of LucasVarity Automotive and the new roles for John Plant
and Steve Lunn will necessitate a restructuring and realignment of management
responsibilities for the Group's electrical and electronic systems and light
vehicle braking systems businesses.  These will be announced shortly, together
with additional senior executive appointments in LucasVarity Automotive.  The
organisational structures of Aftermarket Operations and Diesel Systems will
continue unchanged for the immediate future with John Anthony and Dominique
Chauvin, their respective managing directors, reporting to John Plant.
    To reinforce further LucasVarity's commitment to develop its automotive
and aerospace interests, Tony Gilroy is appointed Chairman of LucasVarity
Automotive and Lucas Aerospace with immediate effect.  Concurrently, Ken
Maciver, previously Managing Director, is appointed President, Lucas
Aerospace.
    Victor Rice, Chief Executive, said "LucasVarity is in excellent shape.
Our first quarter results again confirmed that we are delivering on all our
promises.  The creation of LucasVarity Automotive signals the start of the
next stage of our development as a world-class, customer-driven, global
corporation and is a major step towards achievement of the LucasVarity
Vision."
    LucasVarity plc designs, manufactures and supplies advanced technology
systems, products and services in the world.s automotive and aerospace
industries.