GM Sells Trucking Fleet

04/25/96

Reuters reported that GM will get rid of another one of its "non-core" businesses when it sells a trucking fleet that transports auto parts from some of its part plants to some of it assembly plants. Most of the trucking fleet's operations are in Michigan, Ohio, and Indiana.

The trucking fleet will be sold to Leaseway Logistics, which is controlled by Roger Penske. Leaseway will operate the fleet as a subsidiary called Automotive Component Carrier Inc. 500 GM drivers and mechanics represented by the United Auto Workers will be shifted to Leaseway.

The sale of the trucking fleet is the latest GM announcement in a series of sales and divestitures that falls in line with GM's attempts to outsource and divest more of its production. Earlier in the month GM announced plans to close an automotive generator plant and to sell four other parts plants.

Outsourcing has become an increasingly contentious issue with the union, as it generally amounts to the loss of union jobs that pay, at minimum, a living wage. Two Delphi division brake plants in Dayton, Ohio went on strike for seventeen days in March because of the automaker's plans to outsource brake components. The strike lasted seventeen days and paralyzed GM's North American production. GM estimates that the strike cost them $900 million in first quarter profits.

Paul Dever -- The Auto Channel