Press Release

GM Powertrain Group Announces Contract for New Transmissions with BMW

09/20/96

BMW First to Use New GM Transmission Family

PONTIAC, Mich., Sept. 18 -- General Motors Corporation's
GM Powertrain Group announced today it has signed a
multi-year agreement with BMW AG to supply BMW with the all-new
Hydra-matic 5L40-E five-speed and 4L40-E four-speed automatic
transmissions for a wide range of future BMW vehicle applications.

GM has supplied Hydra-matic automatic transmissions to BMW since
1991. Currently, the Hydra-matic 4L30-E is used in BMW's 3- and
5-series cars and the Z3 roadster. GM Powertrain's Strasbourg, France
plant builds the Hydra-matic 4L30-E and will produce the new 5L40-E
and 4L40-E, as well.

"We are pleased to be able to continue our association with BMW and
are looking forward to working with its product development experts to
successfully integrate these two new transmissions into BMW's product
lineup," said William J. Boskey, director, International Sales,
Marketing, and Joint Ventures for GM Powertrain.

The Hydra-matic 5L40-E and 4L40-E automatic transmissions were
introduced at the 1995 Internationale Automobil-Ausstellung (IAA) in
Frankfurt. The two transmissions, with a maximum engine torque of
approximately 380 Nm, can be used in passenger car or light truck
applications, for either rear-wheel or all-wheel drive
configurations. Advanced electronic controls and light weight ensure
excellent fuel economy.

The Hydra-matic 5L40-E is GM's first five-speed automatic
transmission. The five speeds provide improvements in performance,
ability to climb grades, fuel efficiency, lower emissions, and lower
noise levels at cruising speeds. Both the 5L40-E and 4L40-E offer GM
Powertrain's new Electronically Controlled Capacity Clutch in the
torque converter for improved fuel efficiency and shift smoothness,
along with "fill-for-life" transmission fluid for ease of maintenance.

GM Powertrain is the world's largest manufacturer of engines,
automatic transmissions, castings and related components. Based in
Pontiac, Michigan, USA, the GM Powertrain Group operates 27 plants and
eight engineering centers in the United States, Canada, Mexico and
France, and employs nearly 57,000 people. GM Powertrain has a global
focus on serving customers within GM and throughout the world, from
North and South America, to Europe, Asia, and Australia. Product and
process teams work together to create the best powertrain products and
services.