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GM REPORTS TO ANNUAL SHAREHOLDERS MEETING

 OKLAHOMA CITY, May 21 /PRNewswire/ -- A revitalized General Motors (NYSE: GM), focused on a new vision and new values of total customer satisfaction, will maintain its preeminence in the global automobile industry, GM's chief executive officer and president told shareholders at their annual meeting here today.
 "GM's business begins and ends with the customer," John F. Smith,
Jr. declared. "A big part of customer satisfaction is quality. ...and we have closed the quality gap, producing vehicles that can compete with the Japanese or any other manufacturers in the world."
 John G. Smale, GM chairman, presided at the business meeting, while Smith and executives of four of the company's business sectors presented "state of the business" reports. Following the meeting, shareholders toured GM's Oklahoma City assembly plant, which has been recognized as the highest quality car assembly plant in North America.
 "Improved quality -- along with value pricing -- is helping our company make gains in market share," Smith told shareholders. "For the month of April, the Chevrolet Cavalier was the best selling car in the U.S. ...For the last 30 days, GM's passenger-car market share was 37.3 percent -- the best since last July."
 With retail sales of passenger cars up more than 17 percent and trucks up 31 percent, he said GM has scheduled overtime at several assembly plants to meet the demand.
 Declaring that GM is "determined not to miss any sales in the hot truck market," Smith said that, pending ratification by the union, a third shift may be added at the Oshawa, Ontario, plant which produces full-size pickups. Also, production of the Suburban will be increased in Janesville, Wisconsin, and a plant in Pontiac, Michigan, will extend production of current compact four-door sport-utility vehicles while a plant in Moraine, Ohio, is being tooled up to produce the new model.
 To improve its ability to bring new trucks to market faster and at lower cost, he announced that GM is working on a project to consolidate truck engineering and vehicle development operations in a new, innovative development in Pontiac. He said GM's truck development teams are currently spread throughout nine leased facilities.
 "In cooperation with a developer and local government, we are looking at revamping former manufacturing facilities to house these development teams under one roof. This will have major advantages for us in the future. We are also looking at developing land adjacent to the consolidated facility, which would benefit the surrounding community, as well."
 Smith told shareholders that General Motors continues to improve its financial position and is "well on the way" to its 1993 goal of bringing North American Operations (NAO) to a break-even point, before interest, taxes, and special charges.
 Noting that GM vehicle sales are "building momentum," he said "we're looking forward to a good 1993 ...and a steady stream of new products."
 They will include a new Cadillac DeVille with the Northstar power train system, the Oldsmobile Aurora, new Chevrolet Lumina and Monte Carlo models to continue Chevrolet's plan of new products every six months, new Chevrolet S-10 and GMC Truck Sonoma compact pickup trucks, new Chevrolet Blazer and GMC Jimmy sport-utility vehicles, and new Blazer and Yukon four-door, full-size utility vehicles.
 Passenger car engineering will also be strengthened, he said. "Key knowledge and technical resources are being brought together at the NAO Technical Center in Warren, Mich. ...Every new NAO vehicle will begin its life in this Launch Center."
 But the GM president cautioned that the company faces many challenges this year.
 "The new administration in Washington has brought change to government policies and priorities," he said. "However, we have been pleased with the willingness of the Clinton administration to listen to the views of the auto industry. We are actively working together on a number of important issues."
 Noting that GM faces labor contract negotiations this year, Smith said "we have an open, constructive dialogue with the UAW, but negotiations will not be easy."
 Cost of health care is a major challenge for GM, he said. The expense of health care for GM employees, retirees and dependents has increased 367 percent since 1980.
 "Compared to foreign-owned automobile assembly operations in this country -- the so-called 'transplants' -- health-care expenses put GM at a disadvantage of nearly $1,400 per vehicle. The transplants have a young work force and virtually no retirees."
 "We are working with other companies and the government to seek national solutions to this problem," he said. "But realistically, we have to take responsibility for most of the solution ourselves, and work with our employes and the unions that represent them to find a way to deal with this huge challenge."
 Smith also told shareholders that GM will "leverage and integrate its worldwide resources to develop vehicles that can serve many markets. Products like our new front-wheel-drive van have been conceived for both the European and North American markets."
 William E. Hoglund, executive vice president, said North American Operations are "focusing our resources on those fundamental changes that will make NAO competitive over the long term." Priorities are developing core products, aligning the organizational structure, implementing immediate quality and cost improvements, implementing common systems and processes, and improving relationships with unions.
 Hoglund said GM is "building a single-minded focus and a team that lives and breathes the right values to make the vision of total customer satisfaction a reality."
 "That means literally rebuilding the corporation and creating a new culture," he declared. "Where responsibility used to be diffused, it is being focused. Where our structure used to be inefficient, it is becoming lean. Where our systems and processes used to be diverse, they are becoming common. Where our responsiveness used to be slow, it is becoming fast. Where our goals used to be 'wishes' or 'best efforts,' they are now 'commitments.'"
 Louis R. Hughes, executive vice president, reporting on GM's international automotive operations, said GM Europe has been Europe's most profitable car manufacturer for the past four years, and set consecutive passenger car sales records in each of the last eight years.
 "Our attention is totally directed to winning in the future," he said. "Sales and manufacturing of our successful European products will be extended, while global component integration, coupled with lean manufacturing and overall cost containment, should position us to preserve profitability despite market downturns."
 Hughes said GM has aggressive strategies for booming markets of Asia and the Pacific, and for regional integration in Latin America where trade restrictions are easing.
 Lester M. Alberthal, Jr., chairman, president, and chief executive officer of Electronic Data Systems (EDS) said the GM subsidiary has 38 strategic business units serving over 8,000 customers worldwide.
 "Information technology is the key enabler that fuels globalization," he said. "The global information highways and networks that are being created around the world are going to change the ways companies do business, the ways they interact, and the ways they communicate in the global marketplace. In the future, EDS customers will utilize these global information highways to improve their capabilities."
 C. Michael Armstrong, chairman and chief executive officer of GM Hughes Electronics Corporation (GMHE), said this subsidiary "brings communication, information, and security to a world changing faster than we ever thought possible." Its business sectors are defense electronics, automotive electronics, telecommunications and space, and commercial technologies.
 GMHE's future products, he said, will include a 150-channel television service broadcasting directly from a satellite to home subscribers and advanced electronic systems to enhance performance and safety of future automobiles.
 -0- 5/21/93
 /CONTACT: Jack Harned of GM Corporate Communications, 313-556-2028/
 (GM)


CO: General Motors Corporation ST: Oklahoma, Michigan IN: AUT SU:

JG -- DE009 -- 1154 05/21/93 11:05 EDT
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