press release

CHEVRON TO RESTRUCTURE U.S.
GASOLINE MARKETING

SAN FRANCISCO, Dec. 6, 1995 -- Chevron will restructure its U.S. gasoline marketing business, combining regional offices, consolidating support functions and re-focusing the organization on service and sales growth, the company said today.

"We believe these changes will position us to sustain our strong market position and grow our sales as well," said Dave Smith, Chevron's U.S. vice president of marketing for petroleum products.

"The gasoline business has probably never been more competitive. The successful players will be those who organize around customer needs and devote all their energy and creativity to meeting those needs," he said.

The changes reflect the "customer-driven" strategy of Chevron U.S.A. Products Co., which oversees Chevron's U.S. gasoline business and its six U.S. fuels refineries while also managing both U.S. and international trading and marketing of oil, jet fuel, lubricants and other petroleum products.

Chevron's U.S. gasoline business involves about 8,000 branded service stations in 25 states in the Southeast, Sun Belt and West. The restructuring, to be complete by summer, 1996, will create a new organization, Retail Marketing. Day-to-day station operations won't change during restructuring, so retail customers shouldn't notice the transition.

Discussing the changes, Smith pointed also to Chevron's recent agreement with McDonald's to develop a network of shared locations in 12 western and southwestern states, where both companies have a strong market presence.

"We've had a great response," said Smith. "We've already got 14 locations up and running, and our reorganization includes specific changes to drive this program. It's probably our best example of linking new priorities with a better structure to meet customer needs as well as preferences."

The restructuring will create some new jobs, relocate others and eliminate about 130 positions, reducing to about 1,900 (a 5 percent downsizing) the non-service station work force needed to manage and support the U.S. gasoline business. (Another 4,200 work in company operated service stations.)

Houston and Atlanta offices responsible for the former Central and Southern gasoline marketing "regions" will combine to form a new Eastern Sales Center based in Atlanta; while San Ramon, Calif., and La Habra, Calif., offices handling the former Northwest and Southwest "regions" will form a Western Sales Center based in La Habra. Headquarters and specialized support for gasoline marketing will remain based in the San Francisco Bay Area.

Operations, business services and station development functions once managed at the regional level will be consolidated and managed on a nationwide basis. Specialized groups at the San Francisco headquarters will emphasize Chevron brand strategy and development, convenience-store marketing and jobber relations.

The restructuring won't significantly affect Chevron's lubricants, asphalt, jet fuel, aviation gasoline or diesel businesses, or the Concord, Calif., credit card organization. The Hawaiian retail gasoline marketing organization will continue as a combined sales and distribution unit.

Chevron Retail Marketing is a unit of Chevron U.S.A. Products, a subsidiary of San Francisco-based Chevron Corporation, an international energy company.

Updated: December 1995