KITCHENER, ONTARIO, Apr 7, 2005 (CCNMatthews via COMTEX) -- ThyssenKrupp Budd Canada Inc. (TSX:BUD) today announced that the Company has been awarded a multi-year new business contract from General Motors Corporation.
The company will produce hydroformed chassis frames for a new line of GM sport utility vehicles. The new contract represents the rollover of the Company's current contract with General Motors, the GM 360/370 Program, to the GM 361/371 Program. Production under the new contract is expected to begin for the 2008 model year.
"We are pleased with this new business opportunity," said Michael Balavich, ThyssenKrupp Budd Canada president. "It is gratifying to know that ThyssenKrupp Budd Canada will continue to produce high quality products for a major automotive customer."
ThyssenKrupp Budd Canada currently produces under the GM 360/370 Program hydroformed frames for the Chevrolet Trailblazer and GMC Envoy sport utility vehicles. This contract runs to April 2008.
Given the new General Motors contract and the new CAW labour agreement, together with General Motors recently announced volume reductions in the GM 360/370 Program, management believes that the Company's financial results will not exceed the independent valuator's Base Case financial projections that are set out in the Valuation and Fairness Opinion attached as Appendix "A" to the company's Directors' Circular dated March 4, 2005.
ThyssenKrupp Budd Canada Inc. is an automotive manufacturer specializing in the production of light truck and support utility vehicle frames and chassis components.
This press release contains certain "forward-looking statements" that involve a number of risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
ThyssenKrupp Budd Canada Inc. Winston P. Wong (519) 895-3010
