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.August 18, 2004
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This Week:

• Ford Shelby GR-1 Concept Displays Performance Art

• Chrysler Adds Even More Horsepower to HEMI® with New 2005 Chrysler 300C SRT-8

• Lexus Debuts Vintage-Inspired Pebble Beach Edition SC Retractable Hardtop Convertible

• Nissan Announces Most Powerful V6 Pickup

• MINI XXL - MINI stretch limo makes world debut in Athens

• GM China, SAIC and Shanghai GM Complete Restructuring of Jinbei

• Flexible Manufacturing Comes To Life At Chicago Assembly With Three New Vehicles

• Mazda Motor Europe Records Best July In History

• Middlebrook, LaNeve Lead New GM Sales & Marketing Posts

• Renault launches new Twingo range in September

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GM China, SAIC and Shanghai GM Complete Restructuring of Jinbei
 

Shanghai, China - General Motors China, Shanghai Automotive Industry Corporation Group (SAIC) and Shanghai GM announced today they have received final Chinese government approval for restructuring the former Jinbei GM Automotive Co. Ltd. (Jinbei GM). The new Shanghai GM (Shenyang) Norsom Motors Co. Ltd. will resume production in September and the manufacturing of the Buick GL8 executive wagon will be moved from Shanghai to the facility based in Shenyang, Liaoning Province. The three stakeholders signed an agreement in March 2004 to restructure the joint venture, of which Shanghai GM holds a 50 percent stake and GM China and SAIC each holds 25 percent. Shanghai GM, GM and SAIC's flagship joint venture based in Shanghai, will be responsible for daily management of the USD230 million joint venture with a designed annual capacity of 50,000 vehicles.

"The successful completion of the restructuring will turn a new leaf in the development of Shanghai GM Norsom which is an integral part of GM's strategy in China. It reflects GM's commitment to strengthening our operations in the world's fastest growing vehicle market," said Phil Murtaugh, Chairman and CEO of the GM China Group. "The restructuring has received strong support from the Shenyang and Liaoning governments and we look forward to continuing our contribution to the local economy."

"The restructuring also serves as an important extension of our strategic partnership in China with SAIC. The new shareholding structure allows us to combine Shanghai GM Norsom's well-trained staff, quality facilities and advanced production systems with Shanghai GM's best practices in such areas as product planning, marketing and distribution. This will further increase the operational efficiency of GM's China operations."

Chris Gubbey, Executive Vice President of Shanghai GM, said: "Transferring production of the Buick GL8 to Shanghai GM Norsom will free up capacity at Shanghai GM. This will allow us to capture more market opportunities by introducing more new products in new market segments."

The Buick GL8 was the first domestically produced executive wagon in China. It remains one of the most popular products in its segment since its launch in 2000. Through the end of July 2004, more than 16,700 units have been sold this year. The Buick GL8 will continue to be marketed and distributed by Shanghai GM through its current dealer network.

Production of the Chevrolet Blazer sports utility vehicle has discontinued at the former Jinbei GM since the signing of the restructuring agreement.

Shanghai GM is a 50-50 joint venture that produces and markets vehicles, engines and transmissions. Established in 1997, it currently manufactures the Buick Regal upper-medium sedan, Buick Excelle lower-medium sedan, Buick Sail small car and Buick GL8 executive wagon. In the first seven months this year Shanghai GM registered a year-on-year increase in sales of 79.3 percent to 160,982 units. General Motors, the world's largest vehicle manufacturer, designs, builds and markets cars and trucks worldwide, and has been the global automotive sales leader since 1931. GM employs 325,000 people around the world, including more than 11,000 in China. It operates six joint ventures and two wholly owned foreign enterprises in China. GM today has manufacturing operations in 32 countries and its vehicles are sold in 192 countries.

(August 10, 2004)