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GM to Merge Engine Units: General Motors...

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From Times Staff and Wire Reports

GM to Merge Engine Units: General Motors Corp., which has been racing to cut costs more quickly than it loses sales in the slumping U.S. auto industry, said it would consolidate its two engine operations in a newly formed GM Engine division. GM President Robert C. Stempel said Richard Donnelley, formerly a GM product manager, will serve as general manager of the division, which will include engine operations at the Chevrolet-Pontiac-GM of Canada and Buick-Oldsmobile-Cadillac groups. The two engine divisions employ 20,000 people and make 19 engines. Formation of the division is another step after a 1984 reorganization in which five engine groups were merged into two, Stempel said.

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