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GM To Sell Chassis Business

September 4, 1998 GMT

DETROIT (AP) _ General Motors Corp. has agreed to sell its commercial truck and motorhome chassis business to United City Body Co. of Indiana, but the sale will not include GM’s Detroit chassis plant and workers.

Terms of the deal were not disclosed Thursday.

GM still plans to close the Detroit plant later this year, but it will not consolidate those operations at its Flint truck assembly plant as it had announced earlier.

To offset the loss of the chassis work in Flint, GM said it would expand that plant’s capacity to build pickups. Spokesman Dan Flores said the plant will assemble the new generation of 1-ton, heavy-duty Chevrolet Silverado and GMC Sierra pickups.

It was unknown yet whether additional workers would be hired at the plant, Flores said. The plant now builds the current generation of full-size pickups in regular, extended-cab and four-door crew-cab models, as well as commercial cab-chassis trucks

Workers at the Detroit plant will be offered jobs at other GM plants, and some may be offered early retirement packages, GM said. No layoffs are planned.

The 360 hourly workers are represented by the United Auto Workers.

The sale of the business to Union City Body is expected to be completed by the end of the year.

Union City has been involved in the vehicle industry for 100 years and once made bodies for Auburn, Cord and Duesenberg. The company employs about 500 workers at plants in Union City; Columbus, Ga.; and Amory, Miss.; and at a service center in Kansas City, Mo.