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GM REACHES AGREEMENT TO SELL AXLE/PROP SHAFT/FORGE BUSINESSES

 SAGINAW, Mich., Sept. 17 /PRNewswire/ -- General Motors (NYSE: GM) today announced it will sell the rear axle, propeller shaft and forging businesses, presently a part of Saginaw Division, to American Axle & Manufacturing, Inc. The plants include a forge and an axle plant in Detroit; a propeller shaft plant in Three Rivers, Mich.; a forge plant in Tonawanda, N.Y.; and, an axle plant in Buffalo, N.Y.
 Saginaw Division, part of GM's Automotive Components Group Worldwide, will continue to operate and grow its steering systems, steering column and front drive axle businesses, according to Donald L. Runkle, GM vice president and general manager of the division.
 American Axle & Manufacturing is being formed by a group of investors to make the asset purchase and to operate the plants. Richard E. Dauch, former Chrysler executive vice president of worldwide manufacturing, will be president and chief executive officer.
 The United Auto Workers and International Association of Machinists will continue to represent the hourly employees as part of the agreement. Salaried employees, including most management employees, will be retained by the new company, Runkle said.
 A transition period, beginning immediately, will lead to the transfer of assets targeted for Dec. 31, 1993.
 /Editor's Note: The following statement is issued by Richard E. Dauch, president and CEO, of American Axle & Manufacturing, Incorporated. He and other AAM officials will not be available for further comment until a later date. In the interim, all questions may be referred to Gerry Holmes, director of public affairs for Saginaw Division, 517-757-4005./
 American Axle & Manufacturing, Incorporated (AAM) was formed to purchase the axle, prop shaft and forge businesses from General Motors and looks forward to a continuing good relationship as its supplier. With the help of our employees, whom we refer to as our associates, we intend to grow the business. We have planned an aggressive program of investment in our associates, equipment and facilities.
 We plan to meet with our new associates in the near future. A corporate headquarters, where we can be contacted, will be established as soon as possible.
 -0- 9/17/93
 /CONTACT: Gerry Holmes of Saginaw Division, 517-757-4005/
 (GM)


CO: Saginaw Division, General Motors Corporation;
 American Axle & Manufacturing, Incorporated ST: Michigan, New York IN: AUT SU: TNM


ML -- DE009 -- 3072 09/17/93 12:00 EDT
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Publication:PR Newswire
Date:Sep 17, 1993
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