GM Posts Another Strong Productivity Gain in Harbour Report

Manufacturing Productivity Improves 5.2 Percent in 2004; 25 Percent in Last Six Years GM Takes Four of Top Five Spots in Assembly Plant Category; 8 Plants Lead Segments GM Metal Stamping Operations Rank as Industry’s Best for Pieces per Hour

DETROIT - General Motors posted a 5.2 percent overall improvement in its North American manufacturing productivity in the past year, according to The Harbour Report North America 2004. GM's overall productivity has improved 25 percent over the past six years, significantly narrowing the gap with the industry leaders.

GM assembly plants improved productivity by 5 percent last year, while leading eight of the study's 14 categories and taking four out of the top five individual spots in the overall assembly plant rankings.

GM's metal stamping operations improved productivity by 5.6 percent and, for the first time, were the industry leader in pieces per hour (pph), a key productivity measure for metal stamping. GM's engine operations maintained leadership among the domestic automakers with a productivity improvement of 5.2 percent.

"We're very pleased with the consistent progress we continue to see in our manufacturing productivity," said Guy Briggs, group vice president for manufacturing and labor relations. "However, significant cost issues, like out-of-control health-care expenses, will not allow us to rest on these accomplishments."

Briggs said GM must continue making productivity improvements to ensure the company's long-term competitiveness. "Union leadership, management and our

employees are working hard together to make General Motors the best. As we continue implementing our manufacturing strategies and developing new products that are easier to build. Improving our productivity and efficiency allows the company to stay competitive and invest in new vehicles, which keeps our plants running and our people working."

UAW Vice President Richard Shoemaker, director of the union's GM Department, also praised the report's results. "UAW members can certainly be credited with another year of continued productivity improvements at GM. These productivity improvements, as well as similar improvements in quality, health and safety and other key areas, highlight the important role of UAW members in GM's overall success story."

Briggs said GM's productivity improvements were directly tied to GM's commitment to lead the industry in quality. "Building higher quality cars and trucks allows our manufacturing operations to run more efficiently by eliminating all forms of waste and significantly reducing non-scheduled overtime, which hinders productivity."

Some of GM's productivity highlights in The Harbour Report include:

At 35.20 total labor hours per vehicle (including assembly, stamping, engine and transmission manufacturing), GM improved its overall manufacturing productivity by 5.2 percent. GM's vehicle assembly plants improved productivity by 5 percent to 23.61 hours per vehicle. The industry average is 24.06 hours per vehicle. GM's metal stamping operations improved productivity by 5.6 percent to 3.57 labor hours per vehicle For the first time ever, GM's metal stamping operations led the industry in the pieces per hour productivity measure with 750 pph, a 6 percent improvement over last year. GM's engine manufacturing operations improved by 5.2 percent to 3.84 hours per engine. GM's transmission operations improved by 6.5 percent to 4.18 hours per transmission. GM has four of the top five most productive assembly plants in North America. Oshawa #1, Ontario, Canada, (Chevrolet Impala and Monte Carlo) was ranked No. 2 at 16.40 hours per vehicle. Oshawa #2, Ontario, Canada, (Buick Regal and Century, Pontiac Grand Prix) was ranked No. 3 at 17.03 hours per vehicle. Lansing M, Mich., (Chevrolet Malibu and Pontiac Grand Am) was ranked No. 4 at 17.96 hours per vehicle. Lansing C, Mich., (Pontiac Grand Am) was ranked No. 5 at 18.09 hours per vehicle. GM assembly plants led in eight of 14 North American assembly plant segments: Lansing Grand River, Mich., was the most-productive luxury car plant at 26.67 hours per vehicle. Lansing M, Mich., (Chevrolet Malibu and Pontiac Grand Am) was the industry's most-productive compact car plant at 17.96 hours per vehicle. Moraine, Ohio, (Chevrolet TrailBlazer, GMC Envoy) was the most-productive midsize SUV plant at 21.36 hours per vehicle. Arlington, Texas, (Cadillac Escalade, Chevrolet Tahoe and Suburban, GMC Yukon, GMC Yukon XL) was the most productive full-size SUV plant at 22.71 hours per vehicle. Oshawa Truck, Ontario, Canada (Chevy Silverado, GMC Sierra) was the most-productive full-size pickup plant at 19.88 hours per vehicle. Doraville, Ga., (Chevrolet Venture, Pontiac Montana) was the most-productive minivan plant at 23.61 hours per vehicle. Wentzville, Mo., (Chevrolet Express, GMC Savana) was the most-productive large van plant at 26.40 hours per vehicle. Toluca, Mexico (Chevrolet and GMC medium-duty commercial cab-chassis trucks) was the most-productive medium-duty commercial truck plant at 48.76 hours per vehicle. GM's Toledo, Ohio, transmission plant was the industry's most- productive transmission plant in North America at 3.11 hours per transmission, a 3.5 percent improvement over last year's performance. GM's Romulus, Mich., engine plant was once again the most- productive 8-cylinder engine plant in North America at 3.49 hours per engine, a 3.6 percent improvement over last year. GM's Flint (Engine North), Mich., engine plant was the most-productive 6-cylinder overhead value plant in North America at 3.65 hours per engine, a 4.3 percent improvement over last year. GM's stamping plants dominated in the pieces per hour measure with Parma, Ohio, (1298 pph); Lansing , Mich., (1083 pph), and Grand Rapids, Mich., (842 pph) finishing in the first, second and third spots in this category. General Motors Corp. , the world's largest vehicle manufacturer, employs