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GM HALTS SALE OF ALLISON TRANSMISSION

 DETROIT, Nov. 18 /PRNewswire/ -- STATEMENT BY WILLIAM E. HOGLUND, GM EXECUTIVE VICE PRESIDENT, AND DR. KLAUS P. BLEYER, CHIEF EXECUTIVE OFFICER, ZF FRIEDRICHSHAFEN AG, REGARDING THE DECISION BY THE U.S. DEPARTMENT OF JUSTICE TO FILE AN ANTI-TRUST LAWSUIT AGAINST GM TO CHALLENGE THE SALE TRANSACTION BETWEEN GM AND ZF FRIEDRICHSHAFEN AG:
 William E. Hoglund, GM Executive Vice President, and Dr. Klaus P. Bleyer, Chief Executive Officer, ZF Friedrichshafen AG, announced today that General Motors (NYSE: GM) has decided not to proceed with the transaction to sell its Allison Transmission Division to ZF Friedrichshafen AG.
 "We are extremely disappointed by the decision of the U.S. Department of Justice to oppose the acquisition of the Allison Transmission Division by ZF. The sale of Allison Transmission to ZF would have been very good for the employees and for the business.
 "Negotiations for this transaction began nearly 18 months ago, involving tens of thousands of documents and hundreds of thousands of hours of research and discussion.
 "In light of this excessively prolonged period of arduous governmental deliberation, GM feels it is in the best interest of Allison Transmission employees and the corporation that we not proceed with the transaction with ZF. In our opinion, the government took a very narrow view of competition in the market and one that does not reflect commercial reality."
 THE FOLLOWING STATEMENT IS BY WILLIAM E. HOGLUND (ONLY):
 "By our decision today to take Allison Transmission off the market, we are enabling the division's employees and management to develop a plan which will make it a successful entity in the marketplace.
 "We are very proud of the Allison Transmission employees and we will continue to do our best to ensure a strong future for them."
 -0- 11/18/93
 /CONTACT: Sheila C. Main of GM News Relations, 313-556-2031/
 (GM)


CO: General Motors Corporation; ZF Friedrichshafen AG; Allison
 Transmission Division ST: Michigan, Indiana IN: AUT SU:


ML -- DE007 -- 5916 11/18/93 09:56 EST
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Publication:PR Newswire
Date:Nov 18, 1993
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