Autologic wins car distribution contracts

AutoLogic, the automotive logistics services and outsourcing group, is pleased
to announce that its Autocar subsidiary has signed new contracts with Ford Motor
Company (‘Ford’) and Jaguar for the provision of finished vehicle distribution
services within the UK. The new five-year contracts cement the Group’s
relationship with two major customers and will secure significant volumes for
AutoLogic’s UK business for the next five years.

The new five-year contract with Ford meets a significant proportion of its
finished vehicle distribution requirements within the UK. The contract will
commence on 9 August 2002, and will result in the Group distributing over
300,000 new vehicles annually from Ford facilities across the UK.

Under the terms of the contract, Autocar will provide logistics management
services to Ford and the Group’s Ansa subsidiary will be contracted by Autocar
to provide the transporters and workforce required to implement these services.

Autocar will continue with the majority of Ford’s finished vehicle distribution.
In addition, Ford’s own Transport Operations Fleet will be responsible for a
proportion of Ford’s vehicle distribution in the UK for the first time.

Autocar has also secured a five-year exclusive contract with Jaguar for the UK
distribution of the X-Type from its Halewood plant. The contract will also
commence on 9 August 2002.

John Merry, Chief Executive of AutoLogic said: “Concluding this important new
contract with Ford secures the majority of Ford’s business for a five-year
period. With new labour agreements on productivity and improved working
practices in place, the new contract will deliver both an enhanced service to
Ford, with substantial cost savings and efficiencies over the five-year term,
and move Autocar towards a competitive position within the industry.
Furthermore, the award of Jaguar’s Halewood X-Type business strengthens our
existing relationship with a marque that is forecast to expand its market share
significantly in the coming years.

Both contracts will help to underpin the prospects for our UK distribution
services businesses in the current financial year and beyond.”

Roger Putnam, Chairman of Ford of Britain, said: “We are pleased with the
positive outcome that talks between the companies have achieved. The efficiency
improvements and cost saving commitments which underpin the contracts have given
Ford and Jaguar the confidence to enter into a long-term relationship with
Autocar.”