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Ford Awards Contract to New Minority Supplier For Chassis

24 November 1998

Ford Awards Contract to New Minority Supplier For Chassis in Renaissance Zone, Creating 120 Jobs
    DEARBORN, Mich., Nov. 24 -- Ford Motor Company led
the way in helping to form a new minority-controlled joint venture that will
assemble recreational vehicle chassis in the Renaissance Zone in Detroit,
initially creating up to 120 jobs.
    Ford awarded a contract to TruMack Assembly to assemble a complete chassis
-- frame, suspension, motor, transmission, and wheels and tires -- from
components supplied by Ford and other companies.  The joint venture will ship
the chassis to motorhome manufacturers in Indiana, Ohio, Pennsylvania,
California, other states and Canada.
    TruMack Assembly is a joint venture between Trumark Inc., a Lansing,
Mich.-based minority-owned supplier of automotive stampings and assemblies and
distributor of steel, and Mackie Automotive Systems, an Oshawa, Canada-based
company that is the leading international supplier of "Tier Zero" sequencing,
subassembly and logistical support systems for the automotive industry.
    The contract reaffirms Ford's strong commitment to projects in the state-
designated Renaissance Zone that will increase jobs and initiate development
for Detroit.  It also reflects the strength of Ford's industry-leading
minority supplier development program and the dedicated teamwork of the two
joint venture companies.
    "This deal has several benefits," said Carlos Mazzorin, Ford Group Vice
President of Purchasing and Ford of Mexico, "added jobs, increased investment,
more job training, and a stronger minority supplier.  It also reflects Ford's
commitment to Detroit and Michigan.  With additional potential work, nearly
350 jobs could eventually be created."
    The chassis had been made by Industries Metalicas Monterrey S.A. (IMMSA)
in Monterrey, Mexico.  The transportation cost advantage of locating the
business nearer to the product's final manufacturing destination and
opportunities related to participation in the Renaissance Zone drove the
decision to create this business partnership in Detroit.  IMMSA will continue
making the chassis until TruMack begins operations.  Ford and IMMSA are
discussing other potential business.
    A 210,000-square-foot building will be constructed on a 32-acre site on
Lynch Road to house assembly of the chassis.  Ford Motor Land Development
Corporation is negotiating to buy the land and will oversee development.  The
facility is expected to be operating late next year.
    "We successfully met the challenge posed by formidable competitors and we
brought this project to Detroit through the collective effort and support of
the City of Detroit, the Detroit Economic Growth Corporation and the Michigan
Jobs Commission," said Michael Guthrie, president of TruMack.  "This venture
is the culmination of true public-private and OEM partnership and we all
benefit."
    "Community involvement and investment are integral components of our
corporate mission" said Carlton Guthrie, chairman of TruMack.  "We will
continue the activities for which Trumark and the Guthries are known in the
Lansing area and we pledge that TruMack will bring the same leadership to our
new community."
    "By bringing this new rolling chassis assembly capability to Detroit, we
are in a great position to show the world that this community remains a leader
in manufacturing processes," said F. Alan Smith, chairman of Mackie.  "As the
motorhome chassis market continues to expand, Ford will have the right product
to meet the many diversified needs of motorhome builders."
    The state is providing about $8 million in Michigan Economic Growth
Authority credits.  The City of Detroit is considering more than $1 million in
tax abatements.
    The Super Duty F-Series chassis will support Class A motorhomes with three
gross vehicle weight ratings: 15,700, 18,000 and 20,500 pounds.  Class A motor
homes are the largest of recreational vehicles.  Ford holds nearly half of the
market for motorhome chassis.  Ford also makes chassis for smaller
recreational vehicles -- Class C motorhomes -- built on van cutaway chassis.
The Ford Econoline van cutaway is the leading chassis for Class C
applications.
    At the start of production, about 100 of the employees will be hourly and
20 salaried.  They will receive assessment and training from Focus: HOPE and
other providers.
    This is the fourth program Ford has helped lead within a year to attract
business to Detroit, adding more than 350 new jobs.  In December, Ford chose
Renaissance Global Logistics (RGL) to assemble vehicle kits for overseas
markets.  RGL is owned by the O-J Group, a minority-owned transportation
company.  In addition, Lear Corp. and Bing Manufacturing Inc. formed a
minority-owned joint venture -- Detroit Automotive Interiors -- to make seats
for the Explorer.  Last week, TRW Inc. and Mexican Industries announced a
joint venture to make side impact air bags for several future Ford vehicles.