January 24, 2008 Trendsetter For State-Of-The-Art Production Background information, related facts and figures about the Opel plant in Eisenach Rüsselsheim/Eisenach. The Corsa is a prime example of Opel’s success in the supermini segment and the trendsetting production methods employed at the plant in Eisenach. To date, 1,896,970 Corsas have rolled off the assembly lines of this ultra-modern facility. It is home to the production of the three-door sedan variant and the CorsaVan, which is very popular in Southern European countries. In 2007 alone, 181,862 vehicles left the Eisenach plant, 30 percent of which were right-hand drive Vauxhall models bound for the UK market. The Opel Corsa was the most successful supermini in Germany in 2007, with 79,000 registrations. The ten-millionth Corsa is a three-door model with a 1.3 CDTI engine, which requires 4.5 liters of diesel per 100 km, emits just 119 grams CO2/km and is one of the most economical vehicles in its segment. Opel’s success story in Eisenach since 1990 Opel has played an important role in the region’s extremely positive development since 1990. With its commitment in building a new plant after the reunification of Germany, Opel laid the groundwork for a revitalization of the area's rich automobile heritage. On October 5, 1990, two days after the official reunification, the first Opel Vectra left the production lines. Previously, Opel had founded a joint venture with state-owned car factory VEB Automobilwerk Eisenach, but the experience with the highly qualified employees was so good that Opel decided to build a completely new plant. On February 7, 1991, the first stone was laid, and as early as September 23, 1992, the new plant in Eisenach went online. Adam Opel GmbH D-65423 Rüsselsheim http://media.opel.com General Motors Corporation -2- With an investment of over one billion German marks, the company laid the cornerstone for one of the most advanced and productive automobile plants in Europe. Since its opening, the 1750 employees have produced more then 2.2 million vehicles. Exemplary quality from Eisenach plant From 1991 to the present day, around 1.5 billion euros have been invested in the construction and expansion of the plant. The facility has won several awards for its exemplary quality standards and environmental management, as well as the Thuringia Quality Prize in 1999. The plant operates a three-shift system, which begins with the night shift at 10 p.m. on Sunday night and ends with the late shift at 10 p.m. on Friday night. GM GMS: Exemplary production methods The Eisenach plant is one of the most productive facilities in the General Motors group. The fundamentals of lean production were implemented right from the start. General Motors’s Global Manufacturing System – GM GMS for short – was first introduced here. The system, combining strict quality standards with high productivity, is based on five key concepts: Built-in-Quality, Standardization, Continuous Improvement, Short Lead Time and People Involvement. The Opel plant in Eisenach is a global role model for GM and an important training center. Since 1993, more than 15,000 employees have visited the plant and learned about state-of-the-art, sustainable production processes in individual training sessions. In honor of this achievement, the facility and its employees received the GM Chairman’s Honors Award in 2004 for their excellent implementation of GM GMS. Thuringia automotive cluster Other vehicle and vehicle component manufacturers have established themselves in the region over the past years – from mid-size operations to large companies. Catalytic convertor producer Emitec built a plant in Hörselberg, near Eisenach, and many other supplier companies such as Lear, AKTec, EDAG, FER and Automotive Lighting have followed suit. The neighboring region has also benefited, with the Borbet Group building a modern alloy wheel plant in nearby Bad Langensalza. -3- The most important producers and suppliers in Thuringia’s automotive sector are members of the ‘automotive thüringen e.V.’ association. The 105 member companies, including Adam Opel GmbH, employ around 18,000 people and generate a total annual turnover of around 2.5 million euros. Economic significance of Opel plant in the region Today, the region and state are among the most modern and productive automobile/supplier centers in the European economy, while the city of Eisenach and the surrounding district of Wartburg represent one of the most economically strong areas in eastern Germany. In December 2007, the average unemployment level in Germany’s five eastern states was 13.7 percent. In Thuringia it was 11.8 percent. The city of Eisenach however, had an unemployment rate of just 11.1 percent, and only 8.5 percent in the Wartburg district – one of the lowest unemployment rates in the state. In the economic report for the first half of 2007, the Thuringia Ministry of Economics wrote: “The economic sectors with the largest turnovers were motor vehicle and automotive component producers (1.9 billion euros in turnover), the food industry (1.4 billion euros), the metal-goods industry (1.2 billion euros), manufacturers of equipment for electrical power generation (1.15 billion euros) and rubber and plastic goods producers (1.1 billion euros). These five sectors accounted for over half of the industry’s entire turnover in the first half of 2007. Top districts for turnover were the city of Eisenach with 1.22 billion euros, the district of Wartburg with 1.17 billion euros and the district of Gotha with 1.1 billion euros.” Thuringia’s higher education layout The study programs offered at five universities and four universities of applied sciences in Thuringia clearly reflect the importance of the automotive industry. Students can choose from many technical courses such as engineering, electrotechnology, computer sciences and mechatronics. A quarter of students in Thuringia follow an automobile-related course of study. The universities of cooperative education have taken steps to tie their theoretical training even more closely to practical training. The University of Cooperative Education in Eisenach, for example, offers engineering courses with specialization in vehicle system technology or mechatronics and automation. -4- Overview of Opel plant in Eisenach (last updated: December 31, 2007) Ground broken February 7, 1991 Plant opened September 23, 1992 Production 1990 to 1992 15,000 Vectra A Production since 1992 21,719 Astra F 933,039 Corsa B 273,264 Astra G 627,088 Corsa C 240,175 Corsa D Current production 185,000 Corsa D p.a. Plant site 656,538 m2 Developed land 111,944 m2 Investment since 1991 1,500,000,000 euros Employees 1750 including 30 apprentices Average age 42.5 years Hours worked per week 38 hours in three-shift system - ISO 9002 quality seal (1994, 1997) - Quality management standard DIN EN ISO 9001:2000 (2000, 2003) - Environmental certification according to EU Eco Audit regulation ISO 14001 (1997, 2000) - Environmental management standard DIN EN ISO 14001 (1997, 2003, 2005) Environmental certification Management Leo Wiels, Chairman of Management Board Head of Works Council Harald Lieske, Chairman (17 members, four permanent) -5- About General Motors General Motors, or GM for short, is the largest automaker in the world. It was founded by William C. Durant in Detroit/Michigan, USA in 1908. The group’s turnover in 2006 was 207.3 billion US dollars (around 150 billion euros). GM currently produces vehicles in 33 countries on all continents and employs around 280,000 people. The Cadillac, Corvette, Saab, HUMMER, Buick, Pontiac, GMC, Opel, Vauxhall, Holden, Saturn, Chevrolet and GM Daewoo brands are sold in 200 countries. The group’s global market share stands at around 13.5 percent. G. Richard Wagoner Jr. is General Motors’ Chairman and Chief Executive Officer (CEO). About General Motors Europe General Motors Europe (GME) is headquartered in Zurich, Switzerland. It is responsible for the US-based group’s European brands and plants. GME employs around 64,500 people in eleven production locations in eight countries. The Cadillac, Saab, HUMMER, Opel/Vauxhall, Chevrolet and Corvette brands are available in Europe, where GME currently has a market share of 9.5 percent. Total sales in 2007 came to around 2.2 million units. This was 59,300 vehicles more than in the same period of 2006 – an increase of 11.3 percent. Carl-Peter Forster is President of GME. About Adam Opel GmbH Adam Opel founded the famous German company in 1862 in Rüsselsheim. It has built cars since 1899 and has belonged to General Motors since 1929. Its headquarters are still in Rüsselsheim. Opel also has plants in Bochum, Kaiserslautern and Eisenach, and employs around 27,000 people. Opel Managing Director is Hans Demant.