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Non-Tech : GM - General Motors -- Ignore unavailable to you. Want to Upgrade?

To: porcupine --''''> who wrote (170)	1/12/1999 11:02:00 PM
From: porcupine --''''>	Respond to of 543

1998 Record Year for GM Mexico; Sales Surge Over 23% Local sales of the Mexican unit of GENERAL MOTORS CORP rose a strong 23-24% in 1998 over the previous year to a record 175,114 vehicles, company president Troy Clarke said. Clarke told reporters the sales volume was an "all-time record" for GM Mexico. Clarke added that 1998 was a record year for the entire Mexican automobile industry and estimated overall sales growth of 34% for the sector. However, he said GM only expected car sales to increase 4.0-5.0% in 1999 as the economy slows down. Clarke said export growth for GM Mexico was around the same level as for overall sales in 1998. GM Mexico exports half of its product to the United States, Canada and Australia. (Reuters 02:14 PM ET 01/08/99)

To: porcupine --''''> who wrote (170)	1/12/1999 11:24:00 PM
From: porcupine --''''>	Read Replies (1) \| Respond to of 543

Other Shoe Drops - UAW Will Allow GM-Brazil-Type Small Car Plants in U.S. GM, UAW in talks to build leaner small-car plants DETROIT, Dec 31 (Reuters) - General Motors Corp. and the United Auto Workers are discussing plans to build smaller, more efficient plants for assembling small cars in Lansing, Mich., and Lordstown, Ohio, union officials said on Thursday. The plants, which would replace existing facilities, are part of a GM plan called Project Yellowstone to shrink the costs its small-car operations. Much like the Blue Macaw plant under construction in Brazil, they would make vehicles from partially assembled modules shipped by suppliers, allowing for fewer employees and faster build time. "We are presently discussing with General Motors, future production plans for Lordstown, Lansing and other small-car plants," Richard Shoemaker, head of UAW's GM department, said in a statement. GM has two assembly plants in Lansing, building Oldsmobile Aleros and Pontiac Grand Ams. The Lordstown plant assembles Cavaliers and Pontiac Sunfires. Shoemaker, who was involved in talks with GM during two summer strikes that virtually idled the world's largest automaker's North American operations, visited GM's Brazilian operations last month. Mark Hogun, GM's general manager of small-car operations, acknowledged discussions are under way but declined to give details. "We're regularly in conversation with our plants and local unions about future investments, and we're in that process right now in Lansing, Lordstown and other small-car facilities," he said in a statement. "Improvements in cost and quality are essential for us to be competitive in the small-car market, and we're engaged in meaningful dialogue with our local and international UAW leaders on how we cab progress together," Hogun said. He previously led GM's Brazilian operations and developed the Blue Macaw plant, which will begin production next year. At present, the automaker loses about $500 to $600 before tax on each small car it sells, Burnham Securities analyst David Healy said. The new plants could cut costs more than 20 percent and improve productivity as much as 40 percent, analysts said. At an industry conference in August, GM Chairman Jack Smith said the company planned to replace ageing, out-of-date plants with leaner facilities that would operate around the clock and cost about half as much as existing plants. Analysts immediately speculated plants in such cities as Lansing and Lordstown would be jeopardized by the plan. With modular assembly, automakers use parts already bolted together by suppliers instead of having their workers bolting the pieces together at the plant. For example, DaimlerChrysler AG has a Dodge Dakota pickup truck plant in Brazil in which it uses a rolling chassis module built by Dana Corp. , a U.S.-based supplier. The module includes the vehicle's frame, drivetrain, axles, brakes, wheels and other parts in one piece. By pushing assembly out to suppliers, automakers like GM and DaimlerChrysler drive down their costs, analysts said. Part of that would reflect the need for fewer hourly workers, who are represented by the UAW. "Most of the assembly labor would be going into the modules at $15 an hour instead of into final assembly at $50 an hour," Burnham Securities analyst David Healy said. "I'm not sure that the UAW is too thrilled about this thing, but maybe fewer jobs rather than no jobs at all is their point of view," he added. ((--Detroit Newsroom, 313-870-0200))