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LucasVarity to Close Cincinnati Facility

29 January 1999

LucasVarity to Close Cincinnati Facility

    LIVONIA, Mich., Jan. 29 -- The Automotive Division of
LucasVarity plc today announced plans to close by early next year
a braking plant in Cincinnati, Ohio.  Employees were informed of the plans
earlier this week.
    The Cincinnati plant produces braking components, including drum brakes
and boosters primarily for Ford, Honda and Nissan.  It employs about 230
people.
    Production will be phased out during 1999, beginning in May and concluding
by early next year.  Affected employees will receive severance payments and
outplacement services to help them secure new positions elsewhere.
    The company will shift the production of components made in Cincinnati to
sister facilities in Mt. Vernon, Ohio, Koblenz, Germany, and Queretaro,
Mexico.  The rationalization is aimed at optimizing the company's global
manufacturing capacity.
    In 1998, production of heavy vehicle braking components at Cincinnati was
transferred to the former Heavy Vehicle Braking Systems division of
LucasVarity.  That division, headquartered in Dayton, Ohio, has since been
sold to Meritor Automotive Inc.  The sale is expected to close soon.
    LucasVarity Automotive is headquartered in Livonia, Mich., and produces
braking, electrical and electronic systems, diesel systems and aftermarket
replacement parts for the global automotive industry.
    It is a division of LucasVarity plc, which designs, manufactures and
supplies advanced technology systems, products and services in the world's
automotive and aerospace industries.