---

Autoline Detroit: GM CFO Looks to Suppliers for Further Cost Cutting

3 May 1999

Autoline Detroit: GM CFO Looks to Suppliers for Further Cost Cutting

    DETROIT, April 30 -- On the television program "Autoline
Detroit" Michael Losh, the Chief Financial Officer of General Motors, said the
corporation is looking for further cost reductions from supplier companies.
"That continues to be where we should get half of our cost improvement," Losh
said.  He added that the company still needs better manufacturing efficiency,
and said it's making strong improvements in warranty cost reduction and lower
Information Technology costs.
    Losh anticipates that GM will face tough negotiations with the United Auto
Workers union on this year's contract, but hinted that GM will not take a
strike this summer.  "We'll come through that with a continuity of
production," he said.
    As far as GM's plan to build small, modular assembly plants goes, he said
that "Yellowstone" is a word that GM no longer uses.  But he warned that
unless GM gets commitments from the UAW to increase efficiency, it will not
make investments in new plants.
    Losh said that Wall Street analysts have increased their earnings
expectations for GM this year thanks to an additional 250,000 trucks it will
sell in North America.  Moreover, the corporation will have a full year's
worth of production of Astra cars in Europe, and it will add sales volume with
its Zafira minivan.
    "Autoline Detroit," hosted by John McElroy, airs Sundays at 10:30 a.m. on
Detroit Public Television.  Videotapes are available at
http://www.theautolink.com.  Underwriters of "Autoline Detroit" are Visteon
Automotive Systems and General Electric.  It is produced and distributed by
Blue Sky Productions.