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LucasVarity Automotive to Build New Plant in Mexico

27 April 1999

LucasVarity Automotive to Build New Plant in Mexico

    QUERETARO, Mexico, April 27 -- LucasVarity Automotive today
conducted "laying of the first stone" ceremonies for a new $8 million, 157,000
sq. ft. manufacturing facility.
    Construction is expected to be completed by Oct. 1, 1999, when the company
will begin to transfer production from an existing facility in Queretaro to
the new location.  Situated on 13 acres in an industrial park about 15 minutes
from the current facility, the new plant can be expanded to 230,000 sq. ft.
    The new facility marks another important stage in the expansion of
LucasVarity Automotive's operations in Mexico.  In 1985, it established a
joint venture, Frenos y Mecanismos, to produce calipers, drum brakes and disc
brakes assembles.  In 1997, it acquired the 60 percent of Frenos y Mecanismos
it did not already own from part of the DESC Group, a large Mexican company.
    At the time of the purchase, the 40,000 sq. ft. Queretaro facility
employed 54 people, compared with 120 people now.  At full production, the new
facility is expected to employ about 360 workers.
    The plant's customer base will expand from General Motors, DaimlerChrysler
and Kia to include Ford, Honda, Nissan, Cami, and the Auto Alliance.
Production will be for both domestic and export markets.  The company plans to
operate both plants simultaneously for a period of up to eight months to
ensure a smooth transition and to allow for the hiring and training of new
workers.
    "From a small plant, the new Queretaro facility will become one of our
larger braking facilities," said Steve Lunn, LucasVarity Automotive's chief
operating officer.  "This investment reflects our confidence in the Mexican
workforce and our commitment to servicing our customers in emerging markets
throughout the world."
    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, manufacturers and
supplies advance technology systems, products and services in the world
automotive and aerospace industries.