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GM AND TOYOTA REACH AGREEMENT TO CONTINUE NUMMI JOINT VENTURE

 /ADVANCE/DETROIT, June 28 /PRNewswire/ -- General Motors (NYSE: GM) and Toyota announced today that they have reached an agreement to continue their joint venture, New United Motor Manufacturing, Inc. (NUMMI) in Fremont, Calif.
 Under the original joint venture agreement, NUMMI was scheduled to cease operations in December, 1996. Under the new agreement, NUMMI will continue in its current form for an indefinite period. NUMMI is subject to an order issued by the Federal Trade Commission (FTC) in 1984 that limits NUMMI's duration to December, 1996. GM, Toyota and NUMMI are petitioning the FTC to vacate this order.
 NUMMI, which produces the Chevrolet Geo Prizm, the Toyota Corolla and the Toyota compact pickup truck, employs 4,250 people at its Fremont operations, and the hourly workforce is represented by the United Auto Workers (UAW).
 According to Mr. Tatsuro Toyoda, Toyota's president, "Toyota is very satisfied with the results to date and has learned a great deal from NUMMI. NUMMI serves as an excellent example of positive cooperation between General Motors and Toyota, and as the only auto plant in California, it provides thousands of good paying jobs in an excellent partnership with the UAW. NUMMI's growing exports of cars and parts, which are expected to reach $400 million this year, and its domestic procurement and payroll of over $1.4 billion, have made a positive impact on the state and national economies."
 Mr. John F. Smith Jr., General Motors' chief executive officer and president, said that "through NUMMI, GM offers the American consumer a very popular, attractive, high-quality vehicle. The NUMMI-produced Prizm is particularly important to the Chevrolet/Geo organization, since it is the only 4-door, 5-passenger car in the Geo product line. The Geo Prizm also has had a very positive impact on GM's efforts to attract younger, non-traditional customers to the GM family. Moreover, the joint venture has enabled GM to experience firsthand the NUMMI lean production system. GM is actually applying the lessons of this system as GM continues to reduce costs and improve the competitiveness of its North American operations."
 Since the FTC order was issued in 1984, the U.S. vehicle market has undergone a fundamental change. Over 2 million units of new capacity have been added in North America. Other American and Japanese companies have entered into joint ventures, which allow those manufacturers to respond better to consumer demand and serve smaller market niches.
 In their petition to the FTC, GM, Toyota and NUMMI state that "it is in the public interest to permit NUMMI to continue beyond 1996. NUMMI has been a model of cooperation between the UAW and management; its operations are among the very best in the country in terms of product quality and productivity; the learning experience for General Motors continues to be important to GM's cost-reduction efforts; and the affiliation is a positive example of cooperation between American and Japanese companies."
 NUMMI has often been held as an example of cooperation between labor and management since its start-up in December, 1984. In 1986, NUMMI was cited at the International Labor Organization (ILO) Conference as a model of good labor/management relations, and in 1990 it was named by Industry Week Magazine of the U.S. as one of America's best plants.
 -0- 6/28/93/1630
 /CONTACT: William O'Neill, 313-968-6132, or Kari Hulsey, 313-968-6126, both of GM; Michael Damer of NUMMI, 510-498-5763; or Tim Andree in U.S., 212-644-4872, or in Japan, Eiji Hirabayashi, 81-3-3817-9931, or Shin Imaeda, 81-3-3817-9935, all of Toyota/
 (GM TOYOY)


CO: General Motors Corp.; Toyota; New United Motor Manufacturing, Inc. ST: Michigan, California IN: AUT SU: JVN

JG-SB -- DE023 -- 6403 06/28/93 16:21 EDT
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Date:Jun 28, 1993
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