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AUTO ANALYST AVAILABLE FOR COMMENT ON IMPACT OF GM ANNOUNCEMENT

 AUTO ANALYST AVAILABLE FOR COMMENT ON IMPACT OF GM ANNOUNCEMENT
 NOTE TO EDITORS: The following is a revised McKinsey & Company advisory regarding General Motors. It replaces the McKinsey & Company item transmitted earlier.
 General Motors Corporation (NYSE: GM) today announced a major restructuring plan which will result in plant closings and workforce reductions to offset record losses.
 Despite this gloomy picture, an internationally-known auto industry analyst based here in Cleveland sees little, widespread fallout elsewhere in the economy.
 "I don't think this signals a further, general downturn in the economy that other industries will have to react to," according to Leif Soderberg, an auto analyst with the international consulting firm McKinsey & Company. "I think GM is reacting to its specific situation."
 Soderberg says GM still has the lowest productivity of the Big Three -- 60 percent -- compared with 85 percent for Ford, with Chrysler somewhere in between. GM has cut more than 200,000 jobs between 1985- 1990, while watching sales plummet by 2.3-million each year.
 "Despite recent trends and today's restructuring announcement, I'm more optimistic about the prospects for the Big Three now than five years ago," says Soderberg. "The Big Three are collectively stronger now in terms of their ability to compete."
 Since 1978, Soderberg has been McKinsey's key consultant in auto- related industries: parts and equipment suppliers, vehicle manufacturers, and aftermarket companies. He is available to discuss:
 -- Impact of more workforce reductions on auto and related
 industries
 -- The impact of the continuing recession on the Big Three
 -- Why he is optimistic that the Big Three are on the right track
 towards solving their financial and competitive problems
 -- What he sees as continuing problems of the Big Three
 -- Steps the industry should take to further close the gap
 between American and Japanese automakers
 If you are interested in talking with Soderberg this afternoon, contact Kevin Donahue at Dix & Eaton at 216-241-0405.
 Contact: Kevin Donohue of Dix & Eaton, 216-241-0405, for McKinsey & Company.
 -0- 12/18/91
 /PR Newswire -- Dec. 18/ CO: McKinsey & Company ST: Ohio IN: AUT SU: RCN


DA -- CL019 -- 3592 12/18/91 16:58 EST
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Date:Dec 18, 1991
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