GM To Invest Big Bucks To Build 6 Speed Rear Drive Transmission in Michigan

FOR RELEASE: January 30, 2003

January 30th, 2003

GM To Build 6-Speed Rear-Wheel-Drive Transmission At Willow Run Plant

Ypsilanti, Mich. - General Motors announced today it will invest approximately $300 million in its Willow Run (Mich.) plant to produce a new 6-speed rear-wheel-drive automatic transmission.

This new product program will preserve at least 577 jobs at the plant, which employs approximately 4,000 hourly and 400 salaried employees.

The $300 million investment includes facility renovation, new machinery, equipment and tooling to support new processes. Construction will begin immediately and be complete in late 2005.

Homi Patel, GM vice president and general manager of manufacturing operations for GM Powertrain, announced the investment today at the Willow Run plant. "In keeping with our mission of providing the world's best powertrains, this will be a great product for General Motors. We're looking forward to producing this transmission at the Willow Run site where management, union and employees are working together to make it a great success," said Patel.

"This significant investment in the Willow Run plant will provide greater job security for UAW Local 735 members," said Richard Shoemaker, United Auto Workers vice president and director of the UAW GM Department. "The investment underscores the UAW's and GM's commitment to keep Michigan's auto industry, and Michigan communities, world class and strong."

Both Patel and Shoemaker commended UAW Local 735 and the management team on their continued partnership and thanked the officials of Ypsilanti Township and the state of Michigan for partnering with industry to enhance the plant's continued competitiveness.

The transmission will be used in future GM cars and trucks beginning in 2006.

The GM Powertrain Willow Run transmission plant produces the Hydra-Matic 4L80-E (4-speed rear-wheel-drive) transmission for full-size trucks, sport-utility vehicles and large vans, and the 4T80-E (4-speed front-wheel-drive) for luxury cars. The plant also produces transmission components for several other GM transmission models.

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. GM employs about 350,000 people around the world. More information on GM can be found at www.gm.com.

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