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Delco Remy International Subsidiary Initiates Plan

19 June 1998

Delco Remy International Subsidiary Initiates Plan to Ensure Employees Not Be Affected During GM Strike

    ANDERSON, Ind., June 18 -- A Delco Remy International, Inc.,
subsidiary, Delco Remy America, Inc., announced today that the
company has initiated a plan to ensure that DRA employees will not be affected
during the current UAW strike at General Motors.  According to DRA Senior Vice
President and General Manager of Automotive Systems Rick Stanley, the plan
will include a mix of voluntary vacation time and temporary redeployment of
employees to assignments in other DRA Anderson plants to reduce overtime from
strong customer demand in the OEM heavy duty business.  "We want to provide
our employees with the security of a stable job by doing everything we can to
find creative alternatives to a layoff," stated Stanley.  "Our employees are
our greatest asset and we plan to support them every way we can."
    Senior Vice President of Human Resources Rod English is charged with
redirecting DRA's employee base to other non-GM related assignments within the
Company.  "We have 1,000+ families directly counting on us for an income.  We
are dedicating ourselves to productive alternatives that will benefit our
other customers and the Anderson community which has been good to us," noted
English.  "During this strike period, we will continue to partner with our
employees to achieve our common goals.  We are optimistic that a settlement
will be reached quickly.  We will continue to assess this situation daily.  If
the strike continues, we will re-evaluate," he added.
    The company will use these initiatives together with its planned two week
summer shutdown in July to adjust its production schedule for the strike
impact.
    A growing percentage of DRA's OEM business is associated with the heavy
duty truck, agricultural, construction and off-road vehicles for a number of
different major OEM companies.  Freightliner, Peterbilt, Navistar, Cummins,
Caterpillar and Detroit Diesel are just a few of the manufacturers using DRA
heavy-duty products.  On a total company basis, sales to GM account for 28% of
sales.
    This latest initiative underscores the DRA corporate motto: "Working
together to win together," which has served as the cornerstone for the
company's business ethic since it was spun off from GM in 1994.
    Delco Remy International designs, manufactures, remanufactures and
distributes electrical, powertrain/drivetrain and related components for
automobiles and light trucks, medium and heavy duty trucks and other heavy
duty vehicles.  The Company's products include starter motors, alternators,
engines, transmissions, traction control systems and fuel systems.  The
Company serves the aftermarket and the original equipment manufacturer market,
principally in North America as well as in Europe, Latin America and
Asia-Pacific.