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GM SETTLES PICKUP TRUCK CLASS-ACTION SUITS

 DETROIT, July 19 /PRNewswire/ -- General Motors (NYSE: GM) today issued the following statement regarding the announcement that a settlement has been reached in class-action suits involving GM's 1973 to 1987 full-size pickups. It may be attributed to William J. O'Neill, director of NAO Communications:
 General Motors has agreed to settle the class actions involving the 1973 to 1987 model C/K full-size pickup trucks. Under the settlement, owners will have the opportunity to receive Certificates for $1,000 toward the purchase of any new GMC Truck Division or Chevrolet Motor Division light-duty truck. This settlement will help these loyal GM pickup truck owners to continue to drive GM trucks.
 GM has consistently maintained, and continues to maintain, that the fuel systems in these full-size pickup trucks do not have a safety- related defect. The settlements do not involve any recall or modification of the vehicles. These GM full-size pickup trucks have an excellent safety record over the past 20 years that is superior to smaller pickup trucks and many passenger cars.
 Because of the age of these trucks, it is not possible to accurately estimate how many Certificates will be used. However, the settlement is good for both the truck owners and GM. Truck owners receive substantial value toward the purchase of new GM trucks while GM will only redeem Certificates as new trucks are purchased. Because the settlement costs only arise on the sale of new trucks, we estimate that the settlement will not have a material adverse impact on GM's financial condition.
 The settlements must now be submitted for Court approval. Following final Court approval, owners will be notified how to obtain Certificates.
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 The following is a brief overview of the current status of GM pickup truck litigation at the point a settlement was reached in the class actions:
 -- Thirty-six (36) class actions have been filed.
 -- Of the 36 class actions, twenty-three (23) of the cases are consolidated and are pending in U.S. District Court in Philadelphia. This is referred to as the Multi-District Litigation (MDL).
 -- Of the 36 class actions, thirteen (13) cases are pending in state courts -- California, Kentucky, Georgia (2), Louisiana, Texas (2), Kansas, Missouri, Oklahoma, Tennessee, Alabama and South Carolina.
 -- The settlement covers all owners who purchased vehicles in the United States.
 -- The settlement is being submitted for approval in the U.S. District Court in Philadelphia for 49 states and the District of Columbia and in a Marshall, Texas, state court for approval in Texas.
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 The following describes the procedure under which registered owners of GM's eligible full-size pickup trucks will be notified of the class action settlements and told how to obtain Certificates.
 The procedure to notify owners and issue Certificates is straightforward and administered by the Court. Briefly, here's how it will work:
 -- Following preliminary Court approval of the settlements, General Motors will determine through state registrations the current owners of the eligible full-size pickup trucks.
 -- Once current ownership is determined, Court notices will be mailed to owners informing them about the settlement. These should be in the mail by approximately late August.
 -- After receiving the notices, owners will have 30 days to object or request exclusion from the case.
 -- A final hearing will be held on Oct. 26, 1993, in Philadelphia and on Oct. 27, 1993, in Texas to seek final approval from the Court. Those owners who have not objected or requested exclusion from the class will be notified by mail following the final Court approval and advised how to obtain their Certificates.
 -- The transferable $1,000 Certificates, which may be combined with any other incentive in effect at the time of purchase, will be redeemable on any new GMC Truck Division or Chevrolet Motor Division light-duty truck for a 15-month period.
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 Under terms of the settlement in the class actions involving 1973 to 1987 model C/K full-size pickup trucks, registered owners will have the opportunity to receive Certificates for $1,000 toward the purchase of any new GMC Truck Division or Chevrolet Motor Division light-duty truck. Here is a brief look at how this will work:
 $1,000 Certificates:
 Registered owners of the pickup trucks as of July 16, 1993, will be offered $1,000 Certificates that are transferable with the vehicle.
 -- The Certificates are redeemable by the current owner of the 1973 to 1986 C/K and 1987 to 1991 R/V light-duty pickup truck or chassis cab (the designation of the C/K changed to R/V for the 1987 models and the crew and chassis cabs) for a new Chevrolet or GMC Truck light-duty truck at any authorized Chevrolet or GMC Truck dealer.
 -- The owners do not have to trade in their current vehicle to obtain the $1,000 off the price of a new vehicle.
 -- The Certificates can be used in combination with other GM incentive programs.
 -- The Certificates can only be used by the current owner of the C/K or R/V or family member in the immediate household with proof of current ownership. The owner can designate a relative (parents, siblings, children and spouse) as the recipient of the original Certificate.
 -- The Certificate goes with the truck and cannot be sold without the C/K or R/V truck.
 -- The Certificates are redeemable on sold orders placed within 15 months from Certificate availability.
 $500 Certificates:
 Current owners may also transfer or sell Certificates without the C/K or R/V truck. This provision of the settlement is limited as follows:
 -- The original recipient of the Certificate only can transfer one time without the vehicle.
 -- The non-transferable Certificate cannot be used in combination with any other GM incentive.
 -- The original recipient will be required to return the original $1,000 Certificate with a notarized statement containing the name and address of the person to whom the Certificate will be transferred.
 -- The transferee will be sent a non-transferable Certificate for $500.
 -- The non-transferable Certificate can be used to purchase a new C/K truck only.
 -- The non-transferable $500 Certificate will be issued 14 days after the receipt for a request for transfer.
 -- No transfers to dealers or companies affiliated with dealers.
 Eligible Vehicles:
 Owners of eligible GM full-size pickup trucks as of record July 19, 1993, will be contacted through the mail. Eligible vehicles are:
 Series Model Years Chevrolet Models
 C/K 1973-1986 C10, C20, C30, K10, K20, K30
 R/V 1987 R10, R20, R30, V10, V20, V30
 R/V 1988 R20, R30, V20, V30
 R/V 1989 R2500, R3500, V2500, V3500
 R/V 1990-1991 R3500, V3500
 Series Model Years GMC Models
 C/K 1973-1986 C1500, C2500, C3500, K1500, K2500, K3500
 R/V 1987 R1500, R2500, R3500, V1500, V2500, V3500
 R/V 1988 R2500, R3500, V2500, V3500
 R/V 1989 R2500, R3500, V2500, V3500
 R/V 1990-1991 R3500, V3500
 -0- 7/19/93
 /CONTACT: Bill O'Neill or Ed Lechtzin of General Motors, 313-556-2028/
 (GM)


CO: General Motors Corporation ST: Michigan IN: AUT SU:

KE-DM -- DE027 -- 6498 07/19/93 18:51 EDT
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Date:Jul 19, 1993
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