FORD-TO-FREIGHTLINER SALE GETS GO-AHEAD NEW MANUFACTURING SITES ANNOUNCED FOR PRODUCTS PURCHASED FROM FORD PORTLAND, Ore., June 24 /PRNewswire-AsiaNet/ -- The historic transfer of Ford Motor Company's (NYSE: F) heavy truck business to Freightliner Corporation can now proceed following notification that the Hart-Scott-Rodino Act waiting period has expired, according to Freightliner President and CEO James L. Hebe. Approval for the acquisition was also obtained in Canada. The first steps being taken to successfully implement the transfer include determining new manufacturing sites for the products purchased from Ford, tendering new contracts to Ford Heavy Truck dealers, and offering jobs to interested Ford heavy truck employees. The two companies signed definitive agreements in May that enable Freightliner to buy Ford's technology, unique tooling, and assembly equipment for Ford's heavy trucks. The transaction includes the Louisville/AeroMax (HN80) trucks, Ford's service parts business, and all remaining tooling for the predecessor Ford L-Series trucks and the Ford Cargo truck. Teams from Ford and Freightliner have spent the last three months planning for the transfer. "Elements of the plan are already being shared with employees, dealers, customers, and suppliers of both Ford and Freightliner to ensure a smooth and seamless transfer from one company to the other," said Hebe. "We will move in phases starting now and conclude the transfer in March 1998." Ford Truck Vehicle Center Vice President Jim Donaldson said, "Now that we are able to proceed with the sale, we will be looking to ensure that the transfer to Freightliner progresses as quickly as possible and with a minimum of disruption to all the parties affected." Ontario Plant Gets Ford HN80 Products Freightliner's St. Thomas, Ontario, truck manufacturing facility will be dedicated solely to the production of the HN80 series, Hebe announced. Manufacture of the HN80 products at Ford's Kentucky Truck Plant in Louisville, Kentucky will cease in December, and plans are now being finalized to transfer assembly equipment from there to St. Thomas, where HN80 production is expected to commence during the first quarter of 1998. The St. Thomas Plant was built in 1991 and currently produces Freightliner's FLD series. St. Thomas' FLD production will be transferred to Freightliner's other plants. The new corporate office for the HN80 products will be located in Cleveland, Ohio. The offices will include sales, marketing and custom engineering for the yet-to-be-named product line, and are expected to house approximately 100 employees. An announcement of the company name is planned for July. Freightliner expects to commence production of the Ford Cargo truck early next year. Assembly equipment for the low cab-over Class 6-8 truck will be installed at Freightliner's manufacturing plant in Mt. Holly, N.C. Freightliner plans to distribute the Cargo in the U.S., Canada and Mexico through select Ford and Freightliner dealers. Freightliner's Mt. Holly plant currently produces Freightliner's Business Class medium-duty product line. "We've considered these site selections and production adjustments to be critical steps in the transition," said Hebe. "We are totally confident we can support the HN80 and Cargo products at the sites chosen well into the future." Ford, Freightliner Talk to Dealers Hebe said that dealers are being contacted by Ford and Freightliner to explain logistics of the transition and that Freightliner will soon offer new contracts to Ford Heavy Duty Truck dealers. The company is also looking to enlist the services of experienced Ford employees. "A number of Ford heavy truck employees have indicated an interest in joining the new organization Freightliner is establishing in support of the products acquired from Ford," said Hebe. "We expect to make offers to them in the near future." Donaldson said Ford expects to maintain employment at its Kentucky Truck Plant at present levels, using the open capacity to manufacture other products after the sale to Freightliner is completed. It is the largest truck plant in North America, with hourly employment of 3,900. In addition to heavy trucks, the plant builds medium trucks -- the F-250, F-350 and F-Super Duty pickups. Freightliner Corporation, headquartered in Portland, Oregon, is the leading heavy truck manufacturer in North America. Freightliner produces and markets Class 3-8 trucks and is a member of the Daimler-Benz AG group, the world's largest commercial vehicle manufacturer. FREIGHTLINER CORPORATION FACTS CORPORATE OVERVIEW: * Founded in 1942 by Leland James, then-president of Consolidated Freightways * Became wholly owned subsidiary of Mercedes-Benz AG in 1981 * Headquartered in Portland, Ore. * Has held largest share of heavy-duty truck market since 1992 * Leading U.S. exporter of heavy-duty trucks. Exports are to more than 23 countries. Current markets include: Mexico, Central and South America, South Africa, Middle East, Australia, and Asia. * Chairman, Chief Executive Officer and President: James L. Hebe PRODUCTS: During 1995-96, Freightliner undertook an aggressive expansion of its products and broadened its markets. Segments include: * An extensive line of custom-built, heavy- and medium- duty commercial trucks (Class 5-8) * American LaFrance custom fire trucks * Custom-built chassis products (Class 3-6) for these markets: - school bus - delivery walk-in vans (e.g. Federal Express, U.S. Postal Service, UPS) - motor home - shuttle bus * Military transport and specialty vehicles PRODUCTION VOLUME: * 1996 - 77,148 units (combined Class 3-8) * In 1992, when Freightliner earned the heavy-truck market lead, it produced 36,000 units * Approximately 280 units a day are produced. REVENUES: * $5 billion in 1996, equivalent to 1995 revenues; a 30 percent increase over 1994 * Approximately 53% of revenues are generated from Class 8 truck sales. MARKET SHARE: * 1996, Class 8: 29.4%, up from 26.3% in 1995 * 1996, Class 6/7: 10.6%, up 65.6% over 1995 * 1996, Class 3-5: 10.0%, (Freightliner entered this market in mid-1995.) EMPLOYMENT: * Approximately 10,000 employees in North America PLANTS: * Truck assembly plants located in: 1) Cleveland, N.C. 2) Mt. Holly, N.C. 3) Gaffney, S.C. 4) Portland, Ore. 5) St. Thomas, Ontario, Canada 6) East London, South Africa 7) Tianguistenco, Mexico 8) Melbourne, Australia 9) Jeddah, Saudi Arabia 10) Nazareth, Israel * Custom fire truck plant in Cleveland, N.C. * Two parts manufacturing plants located in: 1) Portland, Ore. 2) Gastonia, N.C. * International joint ventures include: China: Agreement with Shanghai Zehai and Shanghai Xijie will make Freightliner first U.S. truck manufacturer to build heavy-duty trucks in China. Plant scheduled for completion in mid 1998. PARTS DISTRIBUTION: * Seven parts distribution centers support Freightliner's North American dealer network. Locations: 1) Chicago 5) Mississauga, Ontario, Canada 2) Atlanta 6) Calgary, Alberta, Canada 3) Bridgeport, N.J. 7) San Luis, Potosi, Mexico 4) Reno, Nev. DEALER NETWORK: Established an independent network of dealers to market, distribute and service its products. More than 250 U.S. outlets; 48 in Canada. CONTACT: Debi Nicholson, Freightliner Corporation, 503-735-8535, or fax, 503-735-8006.