GM Investing $225 Million in Tennessee Plant in Preparation For Future Vehicle Production

SPRING HILL, Tenn. – General Motors today announced it plans to invest approximately $225 million in its Spring Hill manufacturing complex to renovate the plant’s paint shop in preparation for future vehicle production. The investment is contingent on GM securing incentives from the state of Tennessee.

Based on the strong performance of the Spring Hill team, General Motors’ pending investment affirms the company’s commitment to its Tennessee operations.

“GM’s planned $225 million investment in Spring Hill is proof that this facility remains an important part of GM’s North American manufacturing plans,” said Tim Lee, GM vice president for Manufacturing and Labor Relations. “This project is instrumental to GM’s efforts to strengthen its core manufacturing capabilities in the United States and also demonstrates the value GM places on working together with our UAW partners to improve our manufacturing operations.”

GM’s Spring Hill manufacturing complex built its first vehicle on July 30, 1990. Since then, the complex has built and shipped more than 3.4 million vehicles. It currently builds the Saturn ION passenger car and Saturn VUE compact SUV. Production of the ION and VUE will be discontinued in late March 2007.

With the investment, the plant will be idled for several months for renovations, beginning in April 2007. The company is finalizing the timing of when the hourly workforce will be called back to work and when production will resume at Spring Hill.

The Spring Hill assembly plant employs approximately 3,500 UAW-represented team members and 230 salaried team members. UAW Local 1853 represents hourly employees throughout the complex.

General Motors Corp. , the world’s largest automaker, has been the global industry sales leader for 75 years. Founded in 1908, GM today employs about 318,000 people around the world. With global headquarters in Detroit, GM manufactures its cars and trucks in 33 countries. In 2005, 9.17 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM operates one of the world’s leading finance companies, GMAC Financial Services, which offers automotive, residential and commercial financing and insurance. GM’s OnStar subsidiary is the industry leader in vehicle safety, security and information services. More information on GM can be found at www.gm.com.