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GM AND TRANSPORTATION SYSTEMS, INC. ENTER INTO JOINT VENTURE

 ANDERSON, Ind., Nov. 23 /PRNewswire/ -- General Motors Corporation (NYSE: GM) and Transportation Systems, Inc. (TSI) announced today a preliminary agreement to enter into a joint venture to purchase businesses which are currently part of GM's Delco Remy Division. The joint venture will form a new company, Delco Remy America, to operate the business which includes heavy-duty starting motors and generators, light-duty starting motors, certain remanufacturing operations, plus a powder metal forge operation. General Motors will retain 20 percent equity in the joint venture.
 TSI has been organized by a group of investors led by Citicorp Venture Capital; MascoTech, Inc., a publicly owned automotive components company; and Harold K. Sperlich, former president of Chrysler Corporation, who will be chairman of the joint venture.
 "Our objective with TSI is to acquire and grow companies in the American automotive components market. We are dedicated to providing the resources and leadership necessary to ensure that these strong businesses reach their full potential," stated Sperlich.
 The Delco Remy manufacturing facilities included in this transaction are plants 3 and 17 in Anderson, and plant 25 in Meridian, Miss. All hourly and salaried employees, including management personnel, that are related to these businesses, will be employed by Delco Remy America. The UAW will continue to represent the hourly employees.
 "The search for an outside business partner to accelerate the growth of these businesses was announced and begun last year," stated Robert D. Wight, Delco Remy general manager. "Delco Remy Division, part of GM's Automotive Components Group Worldwide, will continue, as planned, to operate and grow its other core businesses in the global marketplace. These include: batteries, ignition, sensors, solenoids, light-duty generators, and electric vehicle propulsion systems."
 This announcement marks the fifth and sixth lines of business divested by GM Automotive Components Group Worldwide since last December.
 -0- 11/23/93
 /CONTACT: David Hines or Karen Collins of Delco Remy, 317-646-3367/
 (GM)


CO: General Motors Corporation; Transportation Systems, Inc.; Delco
 Remy Division ST: Indiana, Michigan IN: AUT SU: JVN


SB-DC -- DE011 -- 7216 11/23/93 11:06 EST
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Publication:PR Newswire
Date:Nov 23, 1993
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