Press release from Marketwire
Automodular Corporation: Ford Contract Update
Monday, October 21, 2013
Automodular Corporation: Ford Contract Update09:12 EDT Monday, October 21, 2013
AJAX, ONTARIO--(Marketwired - Oct. 21, 2013) - Automodular Corporation (TSX:AM) ("Automodular" or "the Company") reports that it has signed an extension agreement with Ford Motor Company of Canada, Limited ("Ford") that would have the Company continue to provide sub-assembly and sequencing services for its existing commodities until December 23, 2014 on commercial terms similar to those in its current agreement with Ford. As part of the agreement, Ford has provided certain production and price related assurances and will fund Automodular's incremental closure costs related to this extension. Following the expiry of the commercial extension, Automodular expects to close its two remaining automotive operating facilities located in Oakville, Ontario. Automodular continues to search for opportunities in both the wind renewable sector and others to leverage its core manufacturing and project management skills.
In conjunction with the Ford commercial extension, Automodular reports that it has reached agreement on a one-year labour extension agreement for its Oakville-area workers with Unifor (formerly the CAW). The existing labour agreement was set to expire on June 30, 2014. The extension provides for a signing bonus and improvements in severance entitlements.
Automodular Corporation is a supplier of sub-assembly, sequencing and transportation services to the automotive industry - Ford Motor Company's Oakville Assembly Plant. The Company has two operating facilities and employs approximately 525 people.
This press release contains forward-looking statements that involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are market and general economic conditions and the risk factors detailed from time to time in the Company's periodic reports filed with the Canadian securities regulatory authorities and on SEDAR at www.sedar.com . Readers are cautioned not to rely on forward-looking statements. Except as required under continuous disclosure obligations, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Automodular does not provide financial outlooks.
FOR FURTHER INFORMATION PLEASE CONTACT:
Christopher S. Nutt
President and CEO