20.8.2001
GM Europe Management and Employee Representatives Agree on Principles in Information and Consultation Process

General Motors Europe management and employee representatives reached a common understanding of important principles with respect to the company's "Olympia" Turnaround program.

Constructive talks in today's Steering Committee meeting of GME's European Employee Forum (EEF) led to the following results:

Both sides support the objectives of the "Olympia" turnaround program, as well as instituting actions leading to company profitability and sustainable growth, leading to a successful future of the employees. This includes cost savings objectives and capacity reductions.

Management and Employee Representatives have agreed that necessary capacity adjustments will be implemented without a site closure.

Both parties will work together to find mutually satisfactory alternatives such as JVs, engineering, administration, and work consolidations in order to gain efficiencies in the company's operations.

Necessary employment level adjustments will be handled in socially responsible ways, such as early retirement programs and separation programs. These measures will enable the company to avoid forced redundancies while implementing the necessary restructuring.

Carl-Peter Forster, Chairman and Managing Director of Adam Opel AG, stated: "I am particularly pleased that Management and Employee Representatives agree on the necessary objectives and specifically on instituting actions that support our company's turnaround and contribute to a successful future of the employees. Combined with the many initiatives to revitalize the Opel brand, grow sales and increase revenues, we have made excellent progress towards strengthening the Opel, Vauxhall and Saab
brands. Bringing them to leadership positions in the European automotive industry is our common priority."

On behalf of the employee representatives, Klaus Franz, co-Chairman of the EEF and Chairman of the Adam Opel AG general works council, and Dr. Thomas Klebe, Representative of the European Metalworkers Federation, said: "We support the Turnaround objectives, including the necessary capacity reductions, as well as the many growth initiatives that are an important part of Olympia. Many of them have been demanded by us in the past: a significant product offensive or the capturing of new
business opportunities, for example. Today's agreement allows to quickly find specific intelligent solutions on both a national and European level."

"We are pleased that our open approach in the information and consultation process has led to very positive results. We are committed to continue in that same spirit throughout the implementation of the "Olympia" initiatives discussed today," added Cheri L. Alexander, GME Vice President for Personnel, and also co-Chairman of the EEF.