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GENERAL MOTORS AND ASC INCORPORATED REACH AGREEMENT ON JOINT VENTURE

 LANSING, Mich., Dec. 2 /PRNewswire/ -- General Motors (NYSE: GM) and ASC Incorporated announced today the establishment of a joint venture company to assemble Chevrolet Cavalier and Pontiac Sunbird convertibles in Lansing during the 1995 model year, according to Thomas J. Davis, vice president of General Motors and general manager of Lansing Automotive Division (LAD), and Heinz C. Prechter, chairman and CEO of ASC.
 The joint venture operations will be located at the GM Lansing Automotive Division's Lansing Craft Centre. ASC currently performs convertible conversions on Chevrolet Cavaliers and Pontiac Sunbirds at a facility in North Jackson, Ohio.
 Under the terms of the agreement, GM and ASC will each have 50 percent owner equity of the new company. The new organization will be governed by a board of directors to be selected from GM and ASC. Davis will be chairman of the board and Prechter will serve as president and CEO.
 According to Davis, "ASC and LAD have had a long-standing business relationship which has allowed the two companies to pursue this alliance. This is a win-win situation that will allow ASC to combine its leadership role in the convertible business with GM's skilled and available work force and assembly capability at the Lansing Craft Centre. This is a creative arrangement to improve the efficiencies of both operations."
 Prechter said, "This new company will optimize the utilization of existing technology, facilities and human and capital resources of General Motors and ASC Incorporated to produce high quality specialty vehicles."
 Commenting on the announcement, Gov. John Engler said, "Michigan is once again on the cutting edge. This announcement adds to the evidence that Michigan's economic recovery is real and growing. Innovation and creativity mean jobs for our state -- so that Michigan's business climate is second to none."
 The key management team for the joint venture has been selected from both companies. Gregory A. Bryen, vice president, finance operations, ASC, is named managing director and chief operating officer of the new company and Thomas Wanagat, manager of finance for the North American Truck Platform's Flint Manufacturing plant, is named chief financial officer. Both Bryen and Wanagat will report to the board of directors.
 "This new company will allow for the utilization of the Craft Centre, with the opportunity for skilled teams from both ASC and UAW Local 1618 to work together," said Stan Pewoski, chairman of UAW Local 1618. The new organization will be comprised of approximately 180 people from both GM and ASC which includes UAW Local 1618 Craft Centre and ASC's North Jackson employees.
 "This new alliance illustrates one of GM's key sourcing initiatives of strategically insourcing work where it makes good business sense to do so," said Alan G. Perriton, executive director, car platforms, Worldwide Purchasing. "In this case, the strengths of GM and ASC will combine to improve quality, add more value to the end product and increase customer satisfaction."
 The LAD Lansing Craft Centre has been under review in line with GM's North American Operations' capacity requirements to determine its long- term capacity utilization since December 1992 when plans to mass produce an electric vehicle were canceled. Joint venture assembly operations could begin as early as February 1995.
 -0- 12/2/93
 /CONTACT: Linda McGill of General Motors, 517-377-2211; or Bruce Clements of ASC, 313-246-0373/
 (GM)


CO: General Motors Corporation; ASC Incorporated ST: Michigan, Ohio IN: AUT SU: JVN

DC -- DE004 -- 9747 12/02/93 11:04 EST
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Publication:PR Newswire
Date:Dec 2, 1993
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