GM Halts Plan to Build Plant in Iraq

General Motors Corp. said Friday that it suspended participation in a project to build a vehicle assembly plant in Iraq that was scheduled to produce Oldsmobile cars and Chevrolet trucks by as early as next year.

The decision to suspend involvement in the 10-year project near Baghdad was made to comply with President Bush’s order for American businesses not to take part in any Iraqi projects because of Iraq’s invasion of Kuwait this week, GM spokesman Jack Harned said.

GM did not have any financial participation in the assembly plant, for which no ground has been broken. Instead, the Iraqi State Enterprise for Automotive Industry agreed in May, 1989, to pay GM for technical support and a license to build Oldsmobile Ciera cars and Chevrolet S-10 pickup trucks and Blazer sport utility vehicles.