SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549-1004
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report
(Date of earliest event reported) November 21, 1997
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GENERAL MOTORS CORPORATION
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(Exact name of registrant as specified in its charter)
STATE OF DELAWARE 1-143 38-0572515
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(State or other jurisdiction (Commission File Number) (I.R.S. Employer
of incorporation) Identification No.)
100 Renaissance Center, Detroit, Michigan 48243-7301
3044 West Grand Boulevard, Detroit, Michigan 48202-3091
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (313)-556-5000
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ITEM 5. OTHER EVENTS
On November 21, 1997, General Motors' North American Operations announced
that it intends to begin construction of a new engine plant in the Flint area
next spring, and that vehicle production at the Buick City Assembly Center will
cease during the third quarter of 1999.
Pending discussion with government officials and final approval from the
GM Board of Directors, the new engine plant would employ several hundred of the
people working at the Flint V8 plant. GM previously announced the V8 plant would
close in the 1999/2000 time frame. Investment in the new engine plant could
exceed $500 million. The intended engine facility investment will bring GM's
recent commitments in the Flint area to more than $1.5 billion.
The intended allocation of a new engine product to the Flint area is
testament to the hard work and cooperative relations between GM and United Auto
Workers Local 659, which agreed to a new product competitive agreement, said G.
Richard Wagoner, Jr., GM executive vice president and president of North
American Operations.
"We really want to commend the Durant Commission, the State of Michigan,
and local and federal officials for their efforts in helping us to further
invest in the Flint area," Wagoner said.
The decision to idle Buick City Assembly Center is based on marketplace
studies that showed GM could meet its future needs for full-size car production
with two plants. The announcement is being made now since the final decision was
just made, and to end speculation that a future product will be assigned to
Buick City, Wagoner said.
GM anticipates that most of the 2,900 Buick City active hourly employees
will be offered an opportunity to work at other GM facilities at full wage and
benefit levels due to the large number of facilities in the area. Also, a large
number of those employees will be eligible to retire by the time production
ceases at the facility. Those who can't be placed immediately, will qualify for
comprehensive job and income security provided under the UAW-GM national
agreement. Salaried employees will have job opportunities at other locations
both in and outside of the Flint area.
The currently estimated after-tax charges for the idling of the Buick City
Assembly Center and other costs related to the Buick City V6 Powertrain Plant
are as follows:
Buick City Assembly $350 million
Buick City V6 Powertrain 100 million
Total $450 million
The Buick City V6 Powertrain Plant is located on the Buick City Complex
and produces engines utilized by the Buick City Assembly Center. The after-tax
charge is due to the anticipated idling of employees and the associated cost of
the job security programs provided for by agreements between the UAW and GM. The
number of people in the job security programs is projected to grow over the next
eighteen months to a peak of approximately 500 people.
The above after-tax charges are included in the $2 billion to $3 billion
range of after-tax charges for the results of competitiveness studies disclosed
most recently in GM's Quarterly Report on Form 10-Q for the period ended
September 30, 1997.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
GENERAL MOTORS CORPORATION
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(Registrant)
Date November 24, 1997
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By
s/Peter R. Bible
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(Peter R. Bible,
Chief Accounting Officer)
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