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GM TO MAKE FUNDAMENTAL CHANGES

 GM TO MAKE FUNDAMENTAL CHANGES
 DETROIT, Feb. 24 /PRNewswire/ -- General Motors (NYSE: GM) Chairman


Robert C. Stempel today announced fundamental changes in the corporation's operations that will further streamline its North American Operations (NAO) and restore them to profitability.
 "The restructuring and rationalization moves announced today are part of our overall plan to improve our competitiveness and provide a secure future for our employes, while providing a superior return for our shareholders," Stempel said.
 He said the restructuring will build on the strengths of GM's current vehicle manufacturing/engineering platforms and vehicle marketing divisions. The streamlining of NAO will include:
 -- Manufacturing and marketing in the current North American vehicle groups (B-O-C, C-P-C and Truck & Bus) will evolve over a period of time into groups covering car and truck platforms, powertrain, components, and a sales and marketing group consisting of the vehicle divisions, Canada and Mexico vehicle operations, Service Parts Operations and the Service Technology Group.
 -- Formation of a North American Strategy Board to help guide North American Operations during the transition period and to integrate vehicle and marketing unit decisions to optimize performance and accelerate the accomplishment of NAO's 26 operating strategies.
 -- North American Operations will be supported by a cross-group staff support activity including planning, personnel, materials management, public affairs, design and engineering, quality and reliability.
 -- GM's five technical staffs will be consolidated into three, and portions of corporate staffs will be shifted to North American Operations.
 Stempel said the NAO Strategy Board will be chaired by GM President Lloyd E. Reuss and will include William E. Hoglund, executive vice president in charge of the Automotive Components Group and the Power Products and Defense Operations Group; F. Alan Smith, executive vice president in charge of the Operating Staffs and Public Affairs and Marketing Staffs Groups; J.T. Battenberg, vice president and group executive in charge of the B-O-C Group; E. Michael Mutchler, vice president and group executive in charge of the C-P-C Group; Clifford J. Vaughan, vice president and group executive in charge of the Truck & Bus Group; Gary W. Dickinson, vice president and group executive in charge of the Technical Staffs Group; and Richard M. Donnelly, vice president and general manager of the Powertrain Division.
 Accompanying the formation of the NAO Strategy Board, he said, will be the rationalization of the Technical Staffs, the NAO Group Staffs and some Central Office Staffs to support North American Vehicle Operations more effectively and efficiently.
 In that connection, Stempel announced the consolidation of the technical staffs at the GM Technical Center from five into three, and a shift of a portion of these staffs to North American Operations.
 The Current Product Engineering and Advanced Engineering Staffs are combined as the Advanced Engineering Staff. Donald L. Runkle, currently vice president of Advanced Engineering, is appointed vice president of the combined staff. Runkle, along with Charles M. Jordan, vice president in charge of the Design Staff, will continue to report to Dickinson, vice president in charge of the Technical Staffs. Dickinson previously reported to Vice Chairman Robert J. Schultz and will now report directly to Reuss. Environmental Activities Staff and GM Research Laboratories are combined under the name of the Research and Environmental Staff and will be headed by Dr. Robert A. Frosch, currently vice president in charge of the Research Laboratories. Dr. Betsy Ancker-Johnson, vice president of the current Environmental Activities Staff, will go on special assignment pending her retirement effective May 1, 1992. Frosch, who previously reported to Dickinson, now will report to Schultz.
 The change in Dickinson's reporting relationship from Schultz to Reuss "will permit more effective technical resource deployment and integration of design and engineering with our North American manufacturing and marketing efforts," Stempel said. The alignment under Schultz of the new Research and Environmental Staff with the Electronic Data Systems (EDS) and GM Hughes Electronics subsidiaries, he said, will help GM to "maintain a strong external focus which is very important to our environmental responsibilities and our long-range research initiatives."
 In a related change, GM's Corporate Services Activity, which was part of the former Current Engineering and Manufacturing Services Staff, will now report to F. Alan Smith. The activity is headed by William J. O'Keefe and previously reported Dickinson.
 To accelerate the rate of organizational change in North America, Stempel said, Central Office Staffs, the Technical Staffs and North American group staffs will be rationalized and in some cases consolidated to support North American Vehicle Operations more efficiently and effectively.
 He said these actions will occur over a period of time, starting with the consolidation of vehicle group and powertrain planning functions at the NAO level. In line with this move, he said, Mark T. Hogan, currently director of business planning for the Truck & Bus Group, is being named executive director of planning for North American Operations, effective March 1, 1992. Hogan will report directly to Reuss and the North American Operations Strategy Board.
 Furthermore, Stempel said, significant streamlining of GM's plant support activities and business practices will be implemented during 1992.
 Stempel said these restructuring and rationalization moves are only a part of GM's overall efforts to strengthen its competitive position, and that other cost-reduction, productivity-improvement areas include vehicle, model, and component consolidations; design for manufacturability (DFM), and supplier rationalization.
 -0- 2/24/92
 /CONTACT: John F. Mueller of General Motors, 313-556-2028/
 (GM) CO: General Motors Corporation ST: Michigan IN: AUT SU: RCN


JG-SB -- DE019 -- 1809 02/24/92 10:40 EST
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Date:Feb 24, 1992
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