TRW, Linamar cancel engine joint venture

CLEVELAND (July 2, 1999) — Automotive parts suppliers TRW Inc. and Linamar Corp. canceled their proposed venture to make cylinder heads and other engine parts after TRW decided it wants to sell its engine-components business.

In May, TRW said it plans to sell four auto-parts units to reduce debt. The Cleveland-based company needs to raise money to pay for the $6.5 billion US acquisition of London-based LucasVarity Plc.

Linamar, based in Guelph, Ont., supplies precision-machined parts, assemblies, and castings for automakers. The company had 1998 sales of $1 billion US and 7500 employees.

In March, Linamar and TRW signed a letter of intent to form a joint venture to supply machined and assembled engine components and modules, including the cylinder head, crankcase, crankshaft, camshaft, and connecting rod. The 50/50 joint venture was to have been located in Guelph.