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GM To Merge Car, Truck Operations

January 27, 2000

DETROIT (AP) _ General Motors Corp. will merge its North American car and truck operations into engineering groups in a move designed to save money and mirror the blending of passenger vehicle types.

Instead of having separate North American engineering groups for cars and trucks, GM will have one group to handle vehicle engineering and another group to handle manufacturing.

The changes will not cause any layoffs among the 60,500 employed by the Car Group and the 45,000 people working in the Truck Group, although some people might be reassigned or not replaced if their jobs are deemed unnecessary.

``This supports our global product strategy to be fast and flexible to retain customers and attract new ones,″ Ron Zarrella, President of GM North America, said in a statement ``The convergence of North American Engineering and Manufacturing responds to market trends as our product portfolio comprehends all-new crossover vehicles that are emerging between traditional cars, trucks, sport utilities and vans.″

GM spokesman Dan Flores said it was not known who would head the new groups. GM Senior Vice President Donald E. Hackworth runs the Car Group, while GM Group Vice President Thomas J. Davis runs the Truck Group.

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