Press Release

GM Powertrain Group Opens European Tech Center

09/17/96

GM Powertrain Opens European Technical Center



STRASBOURG, France, Sept. 13 -- General Motors
Corporation's GM Powertrain Group today officially opened
its new European Technical Center here for designing, developing, and
testing hydra-matic automatic transmissions for the worldwide
marketplace.

The 100 million FF ($20 million U.S.) facility was dedicated today
during ceremonies attended by nearly 100 GM Powertrain customers, GM
executives, and local and regional government officials.

"The European Technical Center represents the cornerstone of our
strategy in Europe, and enhances our capability to design, develop and
support powertrain solutions worldwide," said E. Michael Mutchler,
vice president and group executive of GM Powertrain. "This center
further demonstrates our commitment to growing and supporting our
customer base outside of our traditional North American borders."

The 8,300 square meter facility will employ approximately 200 design
and engineering specialists with European backgrounds, according to
David W. Hughes, chief engineer of GM Powertrain's International
Transmission Team. "We have to be where our customers are if we want
to meet their requirements effectively," Hughes said. "Our people must
speak the customer's language and understand each customer's specific
needs."

Hughes noted that the European Technical Center is strategic to GM
Powertrain's ability to meet future demand for automatic transmissions
in Europe and other parts of the world. "The potential European demand
for automatic transmissions should double to about 25 percent of the
market by the year 2005," Hughes said.

In addition to developing specific European focused products,
Strasbourg engineers will also conduct application and calibration
work to mate Hydra-matic transmissions developed in the United States
with a wide variety of global engines, vehicles, and cooling systems.

Ned S. McClurg, GM Powertrain's vice president of Engineering
Operations, noted that placing the new technical center in Strasbourg
creates several advantages.

"It is close to virtually every major city and automaker in
Europe. And, since we already develop and produce automatic
transmission systems next door at the GM Powertrain Strasbourg
Transmission Plant, we are building on a well-established and proven
technical base. The new technical center strengthens our position,
allowing us to work even more closely with our customers," McClurg
said.

Features of the European Technical Center include a full design
studio, eight dynamometers, test laboratories dedicated to reducing
noise and vibration, and an electronic controls facility that will be
used for programming and simulating real-world situations. In
addition, a competitive assessment center will allow the simultaneous
examination of as many as 15 competitive automatic transmissions to
identify best products and processes and to improve upon them.

"There will be a strong emphasis on communications between this
facility and other GM facilities around the world," McClurg said. "We
will be relying on high-speed data communications, video conferencing,
and other technologies designed to bring people and information
together in rapid fashion. This will enable the European Technical
Center to combine the input of GM's international resources with an
understanding of local and regional requirements and expectations and
-- more importantly -- the ability to respond to them quickly and
efficiently."

The GM Powertrain Group, headquartered in Pontiac, Michigan, U.S.A.,
is the world's largest manufacturer of engines, automatic
transmissions, castings and components. It operates 26 plants and nine
engineering centers in the United States, Canada, France, and
Mexico. Employment totals approximately 57,000 persons. Annual
worldwide sales are valued at approximately $12 billion.