Press Release

GM Publishes Highlights from Address to Motor Press Guild

10/10/96

GM's Roy Roberts Addresses Motor Press Guild Highlights Pontiac-GMC
Merger, Future GM Division Strategy

LOS ANGELES, Oct. 8 -- While a nation of voters have
riveted their attention to developments of the 1996 presidential
election, inside the U.S. auto industry Motor Press Guild members
listened intently as Roy Roberts, general manager of GM's new
Pontiac-GMC division, recently provided an update on this year's
pivotal merger of two of this century's most prominent vehicle brands.

Speaking to a near-capacity audience at the Motor Press Guild's (MPG)
monthly luncheon on October 1, Roberts presented a broad explanation
of the purpose and plan for the dramatic news of two of General
Motors' divisions combining into one division in his presentation
"Pontiac-GMC Status Report."

"There's no doubt, it's been an interesting -- and often challenging
-- seven months since the Pontiac-GMC merger was announced. My team
and I faced some daunting tasks in constructing this new
organization," Roberts said in his opening.

In explaining the rationale for the two previously separate GM
divisions to combine, Roberts reviewed the evident economies and
overlap that the two brands previously shared. "In the U.S. we already
had 60 percent of our GMC dealers dualed with Pontiac, but we were
asking them to deal with two sets of business systems.

"Our home office staffs are now merged, and for the most part, working
under one roof," he added.

Yet, throughout his remarks Roberts emphasized the clear lines of
brand management that he said will never be obscured in the two
product lines. "If you remember one thing I've said today, I hope it
will be this -- the Pontiac and GMC brands, that is, the products
themselves, will remain separate. You will never see a Jimmy with a
Pontiac-GMC nameplate on the tailgate, or a Grand Prix either."

Roberts also noted the appropriate and complementary product and brand
strategies of the two divisions.  "Pontiac is aimed at youthful,
contemporary people from their early 20s to their 50s. For many, their
Pontiac is their first new vehicle purchase. GMC is aimed at upscale
professionals 30 and up, who are established in their careers and have
owned at least one vehicle before."

While the tone of his remarks was warm and carried his familiar candor
and humor, perhaps most significant in his presentation were his
serious insights about the GMC brand.

"Every division must identify its reason for being. And that was to
get rid of the overlap. If you really knew my product and you knew
Chevrolet's product, historically, the last 10 years the products have
actually been the same."

To accomplish GMC's strategic divergence from the perceived similarity
to Chevrolet vehicles, Roberts pointed to the company's plan to move
progressively more upscale with future exclusive products to the GMC
brand.

"Early next year, we'll introduce two new GMC products that are the
first sign of our new direction, and exclusive to GMC. They're luxury
versions of our Jimmy and Yukon sport-utilities. I can't say more than
that but I promise you'll be impressed when you see them debut on the
auto show circuit."

Roberts also hinted at GMC's future, as early as 1999, carrying
exclusive drivetrains and technology that will not be offered by
Chevrolet. The strategy, he explained, is to keep Chevrolet and GMC
teamed against competitors in the mid- and upscale-level segments,
respectively, rather than competing with each other for the same
buyers.

On the Pontiac side of the new Pontiac-GMC division, Roberts pointed
toward a strategy of continuing a brand image trajectory of bold,
youthful character for the famous "wide track" product line, with his
own humor punctuating the confidence he has in the successful brand
image.

Referring to the Pontiac Firebird's performance character, "As a
matter of fact my wife told me recently -- I said `I'm getting one of
those.' And she said 'you're too old for that product!' And I said
'that's exactly why I'm getting it!'" he said laughing along with the
audience.

The Los Angeles-based Motor Press Guild (MPG) is a non-profit
professional trade association dedicated to promoting education and
information exchange within the motoring press and related automotive
professionals. For further information about membership, monthly
luncheons, events or a membership application telephone: 818-840-6789.