|ZURICH - General Motors Corp. (GM) and Arthur Andersen
announced today a $100 million agreement for Arthur Andersen to provide finance and
accounting transactions processing including billing, accounts payable, disbursements,
accounts receivable and various accounting activity for GM's European operations. The
service agreement is an extension of a $250 million agreement announced last November
under which Arthur Andersen will provide similar financial transaction processing services
as well as U.S. payroll for GM's operations in North America. The combined contract value
of the 10-year service agreements is $350 million.
Under the European agreement, Arthur
Andersen will develop and operate a world-class Financial Shared Services center in
Barcelona, Spain that will handle over $85 billion annually in financial transactions
processing for GM's operations in 17 European countries. This is on top of the $250
billion in financial transactions Arthur Andersen will handle annually for GM's operations
in North America through a new financial shared services center that it will develop and
operate in Tempe, Arizona.
"The expansion of the North American agreement to include Europe will enable us to
help GM in their quest to achieve and maintain best-in-class financial operations on a
global basis," said Tom White, Arthur Andersen's global managing partner for Business
Process Outsourcing - Finance Operations.
"With this European agreement and new Financial Shared Services center in
Barcelona, Arthur Andersen will combine ist world-class finance and accounting expertise
and leverage today's leading technology applications to help multinational companies like
GM achieve greater operational efficiency and cost savings, while giving them more
opportunity to focus their attention and resources on their core business to create
further competitive advantage," said Nicolas Job, Arthur Andersen's managing partner
for Business Process Outsourcing - Finance Operations in Europe.
"The benefits that this agreement offers GM in Europe will be the envy of many
companies looking for ways to reduce costs in today's fiercely competitive
marketplace," said Alejo Catalan, Director of Shared Financial Services for GM
Europe. "The fact that we can find innovative ways to restructure our business while
at the same time minimizing the impact on our workforce makes this an excellent business
(May 11, 2000)