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GENERAL MOTORS COMPANY POISED FOR RESURGENCE, ACCORDING TO NEW CEO

 GENERAL MOTORS COMPANY POISED FOR RESURGENCE, ACCORDING TO NEW CEO
 NEW YORK, Nov. 2 /PRNewswire/ -- With a new organization in place and new management team in position, General Motors (NYSE: GM) is poised for an accelerated resurgence as America's pre-eminent automotive leader, GM's top executive said today.
 John F. "Jack" Smith, Jr., who today was named chief executive officer and president with full responsibility for all GM operations worldwide, told General Motors dealers and employees via satellite that GM has made the tough decisions on product and structure based on what it learned from its success in turning around operations in Europe, but "the job will be tougher in North America."
 Mr. Smith said his plan to return GM's North American Operations (NAO) to profitability had the "unanimous support of the GM board." Implementation of the plan began earlier this year, Mr. Smith said, "but much remains to be done."
 John G. Smale, newly elected non-executive chairman, reiterated the board's "enthusiastic and unqualified support" of Mr. Smith and the new management team. "We are confident this new team is the right leadership to take the reins at this critical juncture, and we are convinced GM is moving into a new era of excellence," Mr. Smale said.
 Mr. Smith told employees and dealers that he looks forward to working with Mr. Smale, who will lead the board in carrying out its responsibilities to the Corporation and its stockholders. He noted that Mr. Smale "will not be an officer of GM, he will not be an employee, and he will not run the company."
 He said he wanted to speak to GM dealers and employees as his first priority because "we need your confidence, and because it's you, more so than any individuals at the top of the corporation, who will make the plan work for this company."
 Mr. Smith also said he wanted to apologize to dealers and employees and their families for any distress that speculative media reports may have caused them.
 "I feel," he said, "that today's announcements will end the speculation and permit all of us to once again focus on what we do best -- build and sell outstanding products for loyal GM customers."
 The essence of the current plan is to consolidate, compress, and redeploy GM's vehicle platform organizations to focus on creating superior customer value at world class levels of efficiency. GM has a number of strengths in North America that will help achieve its objectives, Mr. Smith said, including:
 -- A strong portfolio of products, and a vigorous vehicle program which will continue to launch a steady flow of new high-quality, high-value cars and trucks in the immediate and near future.
 -- Dedicated and loyal employees, salaried and hourly, including a strong technical core, along with production and skilled trades employees who are the most experienced and knowledgeable in the business.
 -- A dealer network which is second to none, and has demonstrated its loyalty and commitment to customers. There are no plans to eliminate any nameplate or distribution network.
 -- A supplier community which, in partnership with Worldwide Purchasing, is rapidly becoming the best in the industry in quality, cost and service.
 -- A relationship with our unions, which after years of mistrust, is finding common ground.
 -- A loyal customer base which wants GM to prosper and win.
 "When NAO wins," Mr. Smith said, "and I assure you it will, GM will win. We recognize the importance of our salaried employees, hourly workers, their unions and union leaders, in achieving our goals. One of my most important objectives is to find, cultivate and maintain common ground with our union leaders as we move forward. We've already had some new beginnings, and we will succeed."
 Mr. Smith said elements of GM's action plan to return the North American Operations to profitability -- quality and warranty, product plans, material cost, production and capacity, and the workforce -- were first steps that have already begun to yield results.
 "But to truly turn this business around," he said, "we need to deal with fundamental issues."
 Mr. Smith said GM's NAO Strategy Board has been working on a number of strategies that include:
 -- Focusing resources on core products that can be profitable leaders in their respective segments. This also applies to automotive components, where resources will be focused on growing, profitable businesses.
 -- Consolidating product development and manufacturing organizations from six to four, to enable superior execution of GM's core products.
 -- Redeploying technical and other resources made available by consolidations for immediate cost and quality improvements. This includes joining GM's engineering resources with Worldwide Purchasing on "creativity teams," replicating successful efforts in Europe.
 -- Strengthening central engineering and operations support activities, to be more efficient in product and process development. Common systems and best practices will be adopted across car and truck platforms.
 -- We are working with our unions on a mix of joint initiatives, which meet our joint objectives of efficiency and job security.
 -- GM and the UAW recently announced a joint study aimed at bringing more production into the Lansing car assembly operation at a world-class efficiency level.
 In closing, Mr. Smith noted that GM had arrived at "the beginning of a new era" and that GM already had "taken action in some vitally important areas, but this will not be an easy process."
 "We understand the success of our efforts rests largely on making our people, our employees -- hourly and salaried, as well as our dealers, suppliers, and others, a part of our plan to win," Mr. Smith said. "You, our employees and dealers, will get better support than ever before, better communications and better leadership.
 "The central message is this: stay focused. We have an opportunity here that we can't let slip by. We can get it done, and you'll be proud of what we can accomplish when we're all working together."
 -0- 11/2/92
 /CONTACT: Bill Winters of General Motors, 212-418-6380/
 (GM) CO: General Motors Corporation ST: New York, Michigan IN: AUT SU:


TS -- NY070 -- 1688 11/02/92 14:42 EST
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Copyright 1992 Gale, Cengage Learning. All rights reserved.

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Date:Nov 2, 1992
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