
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, October 5, 1994                   TAG: 9410050087
SECTION: BUSINESS                    PAGE: B7   EDITION: METRO 
SOURCE: Associated Press
DATELINE: DETROIT                                 LENGTH: Medium

GM REORGANIZING IN EFFICIENCY BID AUTOMAKER CONSOLIDATING DIVISIONS

General Motors Corp. is reorganizing its carmaking units, combining money-losing midsize-car operations with its large-car division and putting Saturn Corp. under the umbrella of an expanded small-car group.

The changes announced Tuesday are ``evolutionary steps'' aimed at improving the company's ability to develop new products and streamline operations, said G. Richard Wagoner, president of North American operations.

The two new units will be known as the Small Car Group and the Midsize and Luxury Car Group. Each will be able to take advantage of common parts, processes and systems.

Since 1992, GM's car development operations for the United States, Canada and Mexico have been divided among Saturn and three major divisions: Cadillac-Luxury Car; Lansing Automotive, for small cars; and Midsize Car.

The midsize unit was responsible for several vehicles that failed to captivate buyers. They include the Chevrolet Caprice, GM's pointy-nosed minivans, and sedans such as the Oldsmobile Cutlass Supreme, Buick Regal and Chevrolet Lumina.

Saturn, created as a free-standing subsidiary that was new from the ground up, has been a marketing and sales success but has yet to make a profit for GM. Saturn President Richard LeFauve will continue in that job and also head the new Small Car Group.

``Saturn will remain a separate subsidiary of General Motors, with its own unique labor agreement, organizational structure, marketing approach and the freedom to continue to innovate in those areas,'' LeFauve said.

by CNB