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General Motors Europe and Caterpillar Logistics Services enter into a Joint Venture


October 2005
 Filed under: GENERAL MOTORS CORPORATE Car News | GENERAL MOTORS CORPORATE Headlines

Joint management of parts and accessories distribution centers in Germany and Italy will lead to higher performance

Zurich/Switzerland and Peoria/Illinois. General Motors Europe (GME) and Caterpillar Logistics Services, Inc. (Cat Logistics), a wholly owned subsidiary of Caterpillar Inc., have reached a ten-year agreement to form Caterpillar Logistics Supply Chain Services GmbH, a joint venture company. This project is part of GME’s comprehensive restructuring program announced last fall.
Serving as a third party logistics provider, the joint venture will implement Cat Logistics’ industry best practices to deliver aftersales warehouse productivity increases, ultimately having a positive impact on service levels and the financial performance of GME’s supply chain.

The joint venture will be responsible for operations at GME’s parts and accessories distribution facilities in Bochum and Rüsselsheim, Germany, and Rome, Italy. By December 1st, 2005, approximately 100 employees from GME’s Italian warehouse will transition to the joint venture. By February 1st, 2006, another 1,100 employees from GME’s German facilities will follow.

"We are confident that teaming up with Cat Logistics will take our European logistics performance to a new level, providing an even more reliable service to our retailers and customers. The joint venture will make a significant contribution towards improving our overall competitiveness in Europe" said Jonathan Browning, Vice President Sales, Marketing and Aftersales of General Motors Europe. Dave Hoffman, President of Caterpillar Logistics EAME Region said: “Cat Logistics has long been recognized for its ability to provide clients with service parts operational excellence and I am delighted that we have the opportunity to expand our relationship with General Motors Europe through the formation of this joint venture.”

The 150,000 m² Bochum, Germany, facility currently stores over 100,000 different parts and components, and will have responsibility for replenishing 11 European Parts Distribution Centers as well as providing parts to non-European customers. Around 2,500 German, Swiss and Austrian customers will be served from the 120,000 m² facility at Rüsselsheim, Germany. The 15,000 m² parts distribution centre in Rome, Italy will continue to serve the 400 Italian and Greek customers.

About General Motors

General Motors Corp. (NYSE: GM), the world’s largest automaker, has been the global industry sales leader since 1931. Founded in 1908, GM today employs about 317,000 people around the world. It has manufacturing operations in 32 countries and its vehicles are sold in 200 countries. In 2004, GM sold nearly 9 million cars and trucks globally, up 4 percent and the second-highest total in the company’s history.

In Europe, GM sells its Opel, Vauxhall, Saab, Chevrolet, Cadillac, Corvette and Hummer ranges in over 30 markets. It operates 11 production and assembly facilities in eight countries and employs around 60,000 people.

About Caterpillar Logistics Services, Inc.

Caterpillar Logistics Services, Inc. provides world-class supply chain solutions and services to its parent company, Caterpillar Inc., and more than 50 other leading corporations throughout the world. Headquartered in Morton, Illinois, Caterpillar Logistics operates more than 100 offices and facilities in 25 countries on six continents. Caterpillar Logistics provides its full service capabilities to companies in market sectors, which include automotive service parts, industrial service parts, consumer durables, technology and electronics, manufacturing logistics, and aerospace service parts. More information is available at www.catlogistics.com.
About Caterpillar Inc.

For 80 years, Caterpillar Inc. has been building the world's infrastructure and, in partnership with its worldwide dealer network, is driving positive and sustainable change on every continent. With 2004 sales and revenues of $30.25 billion, Caterpillar is a technology leader and the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. More information is available at www.cat.com.

Source: General Motors

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