GM To Build Next Generation Small Cars At Lordstown, Ohio Plant

FOR RELEASE: August 14, 2002

GM To Build Next Generation Small Cars At Lordstown, Ohio Plant

Investment To Include Renovations to Assembly and Stamping Facilities

DETROIT - General Motors announced today that its Lordstown, Ohio, manufacturing complex will build the company's next generation small passenger car. The company will invest more than $500 million into the Lordstown complex to renovate the assembly and stamping plants for the new product. Production is scheduled to begin in late 2004.

"GM's investment in Lordstown signifies that GM will continue to aggressively compete in the very important, small car segment," said Gary Cowger, president of GM North America. Among his many positions at GM, Cowger was a plant manager at Lordstown Assembly in the mid 1980's. "GM's next generation small cars are being developed with world-class quality, exciting styling and great value for customers."

With this investment, GM will reconfigure and retool the assembly plant's general assembly area, retool the plant's body shop and construct a new state-of-art paint shop. In addition, GM will refurbish its metal stamping plant at the Lordstown complex.

"This significant investment in GM's Lordstown assembly plant and the metal stamping facility in the Lordstown complex provides job security for loyal, hard working UAW members for years to come," said Richard Shoemaker, UAW vice president and director of the GM Department.

"This important commitment to the UAW members in Local 1112 at the Lordstown assembly plant and UAW Local 1714 members at the Lordstown metal stamping facility also contributes to economic stability in the Mahoning Valley region and the State of Ohio," said UAW Region 2B Director Lloyd Mahaffey.

Specific product information will be announced at a later date.

Lordstown Assembly currently builds the Chevrolet Cavalier and Pontiac Sunfire small cars. Lordstown Metal Center stamps sheet metal parts for Lordstown Assembly and several other assembly plants. The assembly plant currently employs 4,200 hourly and 300 salaried employees. The hourly workforce at the assembly plant is represented by UAW Local 1112. The metal stamping plant currently employs 2360 hourly and 230 salaried employees with hourly employees represented by UAW Local 1714. In the 2001 calendar year, Lordstown Assembly built nearly 324,000 vehicles (approximately 241,000 Chevrolet Cavaliers and 83,000 Pontiac Sunfires).

The Chevrolet Cavalier and Pontiac Sunfire were significantly updated for the 2003 model year. The new Cavalier debuts a sporty new exterior, new safety features like side impact air bags and extends the Ecotec 2.2L L4 engine to all models. New options include OnStar and XM Satellite Radio. The new Sunfire boasts a new stylish aerodynamic appearance, more standard equipment, more standard power and torque and illustrates the way the division is contemporizing Pontiac Excitement for the 21st century.

General Motors , the world's largest vehicle manufacturer, designs, builds and markets cars and trucks worldwide, and has been the global automotive sales leader since 1931. More information on GM can be found at www.gm.com.