Automodular Corporation: Oshawa and Delaware News
Toronto - March 9, 2004
Automodular Corporation ("Automodular") reports that General Motors Corporation has announced the termination of Saturn L vehicle production in Wilmington, Delaware effective at the end of the third quarter. Automodular provides sequencing and sub-assembly services for the Saturn L assembly plant from its Wilmington, Delaware facility.
Separately, Automodular has received notice that General Motors of Canada will not extend its purchase order for commodities currently sequenced by Automodular for the Oshawa car plants from its Squires Beach Road facility in Pickering, Ontario. Automodular's current purchase order for these commodities expires in June 2004.
Management estimates the loss of the foregoing business in Canada and Delaware will reduce consolidated operating results for 2004 by $10 million sales and $0.5 million net income.
Two new vehicles have been announced for the Wilmington facility to begin production in 2005 and 2006. Automodular is or will be bidding for sequencing and sub-assembly contracts for these new vehicles; however success on these programs will not contribute to sales or earnings in 2004.
Automodular has bids outstanding for sub-assembly and sequencing services for General Motors of Canada's Oshawa car and truck plants for 2004 implementation. Success on some or all of these bids could offset the reductions described above.
Automodular Corporation is a supplier of sub-assembly, sequencing, transportation and logistics services to seven General Motors plants in Oshawa, Michigan and Delaware. The company has eight plants and employs over 1,000 people.
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