GM Buys Part Of Lutz Founded Company - Cunnigham Motors

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GM Invests In Cunningham Motor Co.

NEW YORK - General Motors Corp. and Cunningham Motor Co. today announced that GM has acquired a minority equity stake in Cunningham, a virtual car company seeking to develop a world class grand touring car.

"GM is excited to be an investor (About $2 million Bucks Worth) in Cunningham and we look forward to helping the company develop a successful business plan to make the dream of a virtual car company a reality,” said GM Vice Chairman and Chief Financial Officer John Devine.

Cunningham Motor was created to develop and produce a grand touring car that would compete with Ferrari, Aston Martin and other world class touring cars in North America and Europe. The company was founded in January 2000 by Briggs Cunningham III and Robert A. Lutz, who joined GM as vice chairman of product development last August and was recently named to the additional post of chairman of GM North America.

Under a governance framework approved by GM’s Board of Directors, Lutz will not participate in transactions between the two companies but will continue to be a member of the Cunningham Board of Directors. Additionally, GM will appoint a member to the Cunningham Board. The C7 concept car was unveiled to the public in January 2001 at the North American International Auto show in Detroit.

“Cunningham Motor Company is pleased and gratified to have GM as an investor in the company’s efforts to develop the first true American grand touring car since Briggs Swift Cunningham last did so in 1953,” said Jack McCormack CMC president and chief executive officer.

As a virtual car company, Cunningham’s business plan calls for outside suppliers to be responsible for the design, engineering, and production of its vehicles. Roush Industries of Livonia, Mich. has been selected to develop and integrate the C7. Cunningham intends to build and sell about 600 C7 Grand Touring cars per year with a sticker price of $250,000. General Motors , the world’s largest vehicle manufacturer, designs, builds and markets cars and trucks worldwide. In 2000, GM earned $5 billion on sales of $183.3 billion, excluding special items. It employs about 363,000 people globally. More information on General Motors can be found at www.gm.com.