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DELCO CHASSIS STOPS SEARCH FOR BEARING BUSINESS BUYER

 DAYTON, Ohio, Jan. 11 /PRNewswire/ -- Delco Chassis announced today that it has stopped its search for a buyer for its bearings business, which includes plants in Bristol, Conn., and Sandusky, Ohio. Today's announcement follows an earlier-announced phaseout of the bearing operations located in Cadiz, Spain, effective in the 1995 model year. The Bristol and Sandusky operations are major suppliers of bearing-based products to North American automakers.
 George G. Johnston, a General Motors (NYSE: GM) vice president and general manager of the Delco Chassis Division said that the action announced today reflects a new strategic direction which includes retaining the Sandusky facility for the next three years. The plant manufactures integral wheel spindle bearings and speed sensing bearings. In addition, the Division plans to cease operations at the Bristol facility and consolidate some of the plant's production into other GM operations. Bristol produces water pumps, roller clutches, automotive bearings and specialized bearings for the aerospace industry.
 Johnston said the search for a buyer began in mid-1989 for the Bristol plant and continued in August 1992, as a bearings portfolio package with Cadiz and Sandusky. He said that Delco Chassis management had been reassessing the status of the Bristol facility in ligt of the fact that no buyer had been found. Johnson stated, "When it became apparent that no prospective buyer could offer the technical and financial support necessary to sustain this business in Bristol, we had to make the decision to cease operations altogether."
 Johnston credited the employees at the Bristol facility with an outstanding effort during difficult times. "Although the uncertainty made things very difficult, the employees never lost sight of our quality and customer satisfaction goals," he noted. "Every effort will be made to ease the impact of this action on the employees who, through no fault of their own, are faced with difficult career transition choices."
 Although details are incomplete, Johnston said many employees will be offered opportunities to relocate to other GM operations when work is consolidated and continue performing jobs similar to those they have today. Others will be offered employment in other area GM locations. In addition, Delco Chassis plans to offer special separation packages including special retirements for eligible employees.
 Johnston also pledged to take steps to cushion the impact of this decision on the community by working closely with the city of Bristol and with the state of Connecticut on efforts to transition the Bristol facility to other uses. The plant today contains some 1,250,000 square feet of space.
 Johnston stated that discussions with the UAW International have culminated in an understanding that Delco Chassis will retain the operations at Sandusky for the next three years and that management and union will negotiate a competitive local agreement for that facility. Local negotiators are working to implement that understanding.
 -0- 1/11/94
 /CONTACT: Charles W. Kronbach, 513-455-7483, or James Hagedon, 513-455-9371, both of Delco Chassis/
 (GM)


CO: Delco Chassis Division; General Motors Corporation ST: Ohio; Connecticut IN: AUT SU:

KT -- DE015 -- 0974 01/11/94 11:51 EST
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Publication:PR Newswire
Date:Jan 11, 1994
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