GM To Build Next Generation Pontiac Grand Am At Orion, Mich. Plant

October 2, 2002

$300 Million Investment To Renovate Orion Assembly

Detroit - General Motors announced today that its Orion Township, Mich. assembly plant will build the company's next generation Pontiac Grand Am passenger car. The company will invest approximately $300 million into Orion Assembly to renovate the facility for production of the new products. Production is currently scheduled to begin in the second half of the 2004 calendar year.

With the investment, GM will renovate and retool the plant's general assembly area, body shop and paint shop. Based on current plans, GM is not forecasting any significant plant downtime as it prepares the facility for the new models.

"GM's investment in Orion Assembly is more proof the company is moving to reenergize and strengthen its passenger car portfolio," said Gary Cowger, president of GM North America. "GM's next generation Pontiac Grand Am will offer customers world-class quality, bold design and vehicle performance consistent with the exciting, dynamic appeal we will instill in all new Pontiacs to come."

Prior to the launch of the all-new Grand Am, Orion Assembly plans to reinstate its second shift of production. GM transitioned the plant to one shift of production in April 2002 to align the plant's production output with market demand for its current products. The specific timing of reinstating the second shift has not yet been determined.

"UAW members at the Orion assembly plant are proud to make the Pontiac Grand Am and this significant upgrade throughout the facility underscores the commitment of the UAW and GM to build world-class quality cars and trucks right here in Michigan - the heart of the auto industry," said Richard Shoemaker, UAW vice president and director of the GM Department.

"GM's investment in the Orion assembly plant means that people will be brought back to work, and job security will be extended for UAW members for years to come," Shoemaker added.

Specific product information on the next generation Pontiac Grand Am will be released at a later date.

Grand Am is Pontiac's best selling vehicle, consistently ranked as one of the top 10 selling automobiles as a result of its combination of bold athletic design, spirited driving performance and all-around responsive driving experience. In fact, the Grand Am has been ranked in the top 10 in the U.S. for 14 of the last 15 model years. In the 2001 model year, Pontiac dealers in the U.S. sold 182,193 Grand Ams.

Orion Assembly currently builds the Pontiac Bonneville, Oldsmobile Aurora and the Buick Park Avenue. In the 2001 calendar year, Orion Assembly built 150,662 units.

Orion Assembly currently employs approximately 2,000 hourly and 170 salaried employees. The hourly employees are represented by UAW Local 5960.