GM Reports Preliminary Second Quarter Financial Results



    
    DETROIT, Aug. 1 /CNW/ --
    

    
     -- Adjusted net loss of $6.3 billion, reported net loss of $15.5 billion
     -- Results impacted by $9.1 billion of predominantly non-cash special
        items
     -- Sales records set in three of four regions
     -- Q2 liquidity position of $21 billion, plus credit lines of additional
        $5 billion
    



    
                                               Second Quarter
                                         2008     2007(*)  '08 O/(U)'07
    

    
     Revenue (bils.):                   $38.2     $46.7     $(8.5)
     Adjusted automotive
      earnings before tax (bils.):      $(4.0)    $1.0      $(5.0)
     Reported automotive earnings
      before tax (bils.):               $(9.1)    $0.8      $(9.9)
     Adjusted net income (bils.):       $(6.3)    $1.3      $(7.6)
     Reported net income (bils.):       $(15.5)   $0.8     $(16.3)
     Reported earnings per
      share (diluted):                  $(27.33)  $1.37   $(28.70)
     Adjusted operating cash
      flow (bils):                      $(3.6)    $1.1      $(4.7)
     (*) 2007 figures reflect continuing operations
    
    General Motors (NYSE:   GM) today announced its financial results for the
second quarter of 2008, which include significant charges and special items.
The reported net loss was $15.5 billion or $27.33 per share for the second
quarter, including these charges and special items, compared with net income
from continuing operations of $784 million or $1.37 per share in the second
quarter of 2007.  On an adjusted basis, GM posted a net loss of $6.3 billion
or $11.21 per share, compared with net income from continuing operations of
$1.3 billion or $2.29 per share in the same period last year.
    GM previously announced that it anticipated a significant second quarter
loss, driven in large part by costs associated with the American Axle and
local U.S. strikes, and charges related to the successful U.S. hourly
attrition program, actions to reduce North American truck capacity, Delphi and
other matters. The operating and liquidity actions announced on July 15
contemplated weak second quarter results and a continued unfavorable U.S.
environment.  The company has outlined a strong cadence of product,
powertrain, capacity and liquidity actions over the past 60 days, to realign
the business with current U.S. economic and auto market conditions, and
position the company for profitable global growth.
    Some of those actions include cessation of production at four truck
plants, shift reductions at two truck plants, the addition of shifts at two
car plants, announcement of the new Chevrolet global small car program and
next generation Chevrolet Aveo compact car, introduction of a high-efficiency
4-cylinder engine for U.S. application, salaried headcount reductions and
compensation actions, deferral of certain payments to the UAW VEBA, suspension
of the dividend on common stock, reductions in sales and marketing budgets,
the strategic review of the Hummer brand and production funding approval for
the Chevrolet Volt extended range electric vehicle.
    "As our recent product, capacity and liquidity actions clearly
demonstrate, we are reacting rapidly to the challenges facing the U.S. economy
and auto market, and we continue to take the aggressive steps necessary to
transform our U.S. operations," said GM Chairman and CEO Rick Wagoner.  "We
have the right plan for GM, driven by great products, building strong brands,
fuel-economy technology leadership and taking full advantage of global growth
opportunities."
    GM's second quarter results were primarily driven by several factors:
significant losses in GM North America (GMNA) due to continuing U.S. industry
volume declines and shifts in vehicle mix, the long strike at American Axle
and large lease-related charges; a number of special charges associated with
GM's ongoing restructuring actions; continued losses at GMAC Financial
Services (GMAC) and updated estimates regarding recoveries and expectations of
assumed benefit obligations in the Delphi bankruptcy.
    GM recorded $9.1 billion of special items, predominantly non-cash in
nature for the current quarter or near-term periods, which include:

    
    -- $3.3 billion relating to the 2008 GMNA hourly special attrition program
    -- $2.8 billion adjustment to the Delphi reserve
    -- $1.1 billion GMNA restructuring and capacity related costs
    -- $1.3 billion impairment of GM's equity interest in GMAC
    -- $340 million Canadian Auto Workers contract-related accounting charges
    -- $197 million related to settlement of the strike at American Axle
    
    Details on these and all other special items are in the financial
highlights section of this release.
    In addition, the GMNA adjusted net income results reflect a $1.6 billion
charge related to lower residual values for off-lease vehicles.  The total
impact of declining residual values in GM's second quarter earnings was $2.0
billion, including impairments of lease assets at both GMAC and GM.
    Revenue for the second quarter was $38.2 billion, down from $46.7 billion
in the year-ago quarter, which is more than accounted for by the decline in
GMNA revenues.  Combined revenues for the GM Europe (GME), GM Asia Pacific
(GMAP) and GM Latin America, Africa and Middle East (GMLAAM) regions were
$20.8 billion, up $1.7 billion over the same period 2007.
    GM reports its automotive operations and regional results on an earnings-
before-tax basis, with taxes reported on a total corporate basis.
    
    GM Automotive Operations
    
    The second quarter adjusted automotive loss of $4.0 billion ($9.1 billion
reported) reflects the losses in GMNA driven largely by volume declines
including the impact of the American Axle and local strikes as well as
adjustments to lease vehicle residual reserves.  In addition, GMAP results
were negatively impacted by adjustments relating to hedge accounting.  The
losses were partially offset by exceptionally strong performance in the GMLAAM
region and continued profitability in GME.  The loss compares with adjusted
automotive earnings from continuing operations of $1 billion in the second
quarter of 2007 (reported earnings of $803 million).
    GM sold 2.29 million vehicles worldwide in the second quarter, down 5
percent year over year. Sales in GMNA were down 20 percent, or 236,000 units
versus the year-ago period, while sales outside of North America grew by 10
percent or 116,000 units.  A record 65 percent of GM unit sales for the second
quarter were outside the United States.  Global market share was 12.3 percent,
down 0.9 percent due to weakness in North America.


    
                                      GMNA
    

    
                                                    Second Quarter
                                            2008       2007    '08 O/(U)'07
    Revenue (bils.)                            $19.8      $29.7        $(9.9)
    Adjusted Earnings Before Tax         $(4.4) bil.   $92 mil.   $(4.5) bil.
    Reported Earnings Before Tax         $(9.3) bil. $(88) mil.   $(9.2) bil.
    GM Market Share                           20.2 %     22.7 %    (2.5) p.p.
    
    GMNA revenue for the second quarter was $19.8 billion, down from $29.7
billion in the year-ago period.  The decline was largely attributable to a
markedly weaker U.S. auto market and lost production due to the work stoppage
at American Axle, and at several GM facilities in May and June.  Although
volume overall was down 20 percent, some of GM's most recently launched cars
and crossovers continue to sell especially well, including the Chevrolet
Malibu and Cadillac CTS, up 113 percent and 33 percent, respectively, over the
year-ago period.
    GMNA adjusted results reflect significantly lower volume resulting from
overall industry deterioration, continued dealer stock reductions, the
negative impact of industry segment shifts, model/option mix and an increase
to lease vehicle residual reserves related to declining residual values.  The
results also reflect favorable structural and net material cost performance
and pension/OPEB/manufacturing savings.


    
                                     GME
                                                      Second Quarter
                                               2008     2007    '08 O/(U) '07
    

    
    Revenue (bils.)                           $10.6     $9.5         $1.1
    Adjusted Earnings Before Tax (mils.)        $99     $345        $(246)
    Reported Earnings Before Tax (mils.)        $20     $315        $(295)
    GM Market Share                            9.4 %    9.4 %       0 p.p.
    
    GME achieved record second-quarter sales of 590,000 units, driven by 48
percent sales growth in Russia and exceptional performance of the Chevrolet
brand, which saw a 19 percent increase in sales to 137,000 units and record
market share of 2.2 percent in the second quarter.  Material and structural
cost performance improved during the quarter.  However, unfavorable exchange
rates and an economic slowdown in key markets including Spain, Italy and the
U.K. had a significant impact on earnings.


    
                                       GMLAAM
                                                   Second Quarter
                                               2008     2007    '08 O/(U) '07
    Revenue (bils.)                            $5.1     $4.3          $.8
    Adjusted Earnings Before Tax (mils.)       $445     $296         $149
    Reported Earnings Before Tax (mils.)       $445     $296         $149
    GM Market Share                           17.5 %   16.8 %    0.7 p.p.
    
    Improved mix, net pricing and material cost performance along with strong
sales performance in key markets helped GMLAAM to improve its year-over-year
earnings before tax by over 50 percent, to $445 million. Volume for the region
was up nearly 18 percent over 2007, and quarterly sales records were set in
Brazil, Chile, Egypt and North Africa.


    
                                      GMAP
    

    
                                                       Second Quarter
                                                2008     2007   '08 O/(U) '07
    Revenue (bils.)                             $5.2     $5.3        $(.1)
    Adjusted Earnings Before Tax (mils.)        $(65)    $294       $(359)
    Reported Earnings Before Tax (mils.)       $(163)    $280       $(443)
    GM Market Share                               7 %    6.7 %    0.3 p.p.
    
    The second quarter earnings for GMAP reflect a $285 million pretax
accounting charge related to adjusting prior FAS133 hedge accounting,
partially offset by gains in India and Thailand, and improved operating
performance at Australia's Holden.
    
    GMAC
    
    On a standalone basis, GMAC reported a net loss of $2.5 billion for the
second quarter 2008.  Affecting results were continuing large losses at
Residential Capital, LLC (ResCap) related to asset sales, valuation
adjustments and loan loss provisions, as well as a $716 million pre-tax
impairment of lease assets in the automotive finance business as a result of
lower used vehicle prices, particularly for SUVs.  These items were partially
offset by profitable results in the insurance and international auto finance
businesses.  GM reported an adjusted loss of $1.2 billion for the quarter
attributable to GMAC, as a result of its 49 percent equity interest.
    Following a first quarter impairment against its investment in GMAC, GM
conducted further analysis in the second quarter to determine if additional
impairments were required based on current fair value estimates.  Factors
considered include continued deterioration in the mortgage and consumer credit
markets and a more challenging North American automotive financing
environment.  As a result, GM recorded impairment charges totaling $1.3
billion against its common and preferred equity interests in GMAC.
    
    Cash and Liquidity
    
    Reflecting the non-cash nature of many of the charges recorded in GM's
reported second-quarter results, cash, marketable securities, and readily-
available assets of the Voluntary Employees' Beneficiary Association (VEBA)
trust totaled $21.0 billion on June 30, 2008, down from $23.9 billion on March
31, 2008.   The change in liquidity reflects negative adjusted operating cash
flow of $3.6 billion in the second quarter 2008, driven primarily by weaker
results in GMNA.  As of June 30, including undrawn, committed U.S. credit
facilities of approximately $5 billion, GM has access to approximately $26
billion in liquidity.  In July, GM provided notice to draw $1 billion under
its secured revolving loan facility.
    As announced on July 15, GM is taking operating and related actions to
improve cash flow by approximately $10 billion through the end of 2009. In
addition, the company has outlined plans to raise approximately $5 billion
through capital markets activities and asset sales(See related news release).
GM is confident that these initiatives, along with its current cash position
and $4-5 billion of committed U.S. credit lines, will provide the company with
ample liquidity to meet its operational needs through 2009.
    Results for the second quarter of 2008 are preliminary and may be revised
prior to the filing of GM's quarterly Form 10-Q in August.
    
    Forward Looking Statements
    
    In these and following presentations and in related comments by General
Motors management, we will use words like "expect," "anticipate," "estimate,"
"forecast," "objective," "plan," "goal," "project," "outlook," "targets," and
similar expressions to identify forward looking statements that represent our
current judgments about possible future events.  We believe these judgments
are reasonable, but actual results may differ materially due to a variety of
important factors.
    Among other items, such factors include: our ability to realize
production efficiencies, to reduce costs and implement capital expenditures at
levels and times planned by management; market acceptance of our products;
shortages of and price increases for fuel; declines in the residual values of
used and off- lease vehicles; significant changes in the competitive
environment and the effect of competition on our markets, including on our
pricing policies; our ability to maintain adequate liquidity and financing
sources and an appropriate level of debt; the final results of investigations
and inquiries by the SEC; court approval of the settlement agreement with the
UAW and UAW retirees related to the 2007 national agreement; negotiations and
bankruptcy court actions with respect to obligations owed to us by Delphi
Corporation, a key supplier; possible downgrades for GMAC or ResCap by rating
agencies; developments in the residential mortgage market, especially the
nonprime sector; and changes in general economic conditions such as price
increases or shortages of fuel, steel, or other raw materials.
    GM's most recent annual report on Form 10-K and quarterly report on Form
10-Q and current reports on Form 8-K (which are incorporated by reference)
provide additional information about these factors, which we may revise or
supplement in future reports to the SEC on Form 10-Q or 8-K.


    
                          General Motors Corporation
    

    
                       Use of Non-GAAP Financial Measures
    

    
        This press release, the accompanying tables and the charts for
     securities analysts include the following financial measures, which are
     not prepared in accordance with Accounting Principles Generally Accepted
     in the United States of America (GAAP): (1) adjusted net income; (2)
     adjusted earnings before tax; (3) managerial cash flow; and (4) GM North
     America vehicle revenue per unit. Each of these financial measures
     excludes the effect of certain items and therefore are considered non-
     GAAP financial measures. This press release and the charts for securities
     analysts also contain a reconciliation of each presented non-GAAP
     financial measure to its most comparable GAAP financial measure.
    

    
        Management believes these non-GAAP financial measures provide
     meaningful supplemental information regarding GM's operating results
     because they exclude amounts that GM management does not consider part of
     operating results when assessing and measuring the operational and
     financial performance of the organization. In addition, GM has
     historically reported similar non-GAAP financial measures and believes
     that inclusion of these non-GAAP financial measures provides consistency
     and comparability with past earnings releases. GM management believes
     these measures allow it to readily view operating trends, perform
     analytical comparisons, benchmark performance among geographic regions
     and assess whether the GM North American structural cost turnaround plan
     is on target. Also, GM management uses adjusted net income and adjusted
     earnings before tax for forecasting purposes and in determining our
     future capital investment allocations. Accordingly, GM believes these
     non-GAAP financial measures are useful to investors in allowing for
     greater transparency of supplemental information used by management in
     its financial and operational decision-making.
    

    
        While GM believes that these non-GAAP financial measures provide
     useful supplemental information, there are limitations associated with
     the use of these non-GAAP financial measures. These non-GAAP financial
     measures are not prepared in accordance with GAAP, do not reflect a
     comprehensive system of accounting and may not be comparable to similarly
     titled measures of other companies due to potential differences in the
     method of calculation between companies. Costs such as the special
     attrition programs and restructuring charges that are excluded from GM's
     non-GAAP financial measures can have a material impact on net earnings.
     As a result, these non-GAAP financial measures have limitations and
     should not be considered in isolation from, or as a substitute for, net
     earnings, cash flow from operations, or other measures of performance or
     liquidity prepared in accordance with GAAP. GM compensates for these
     limitations by using these non-GAAP financial measures as supplements to
     GAAP financial measures and by reviewing the reconciliations of the non-
     GAAP financial measures to their most comparable GAAP financial measures.
     Investors are encouraged to review the reconciliations of these non-GAAP
     financial measures to their most comparable GAAP financial measures that
     are included elsewhere in this press release.
    

    
     Adjusted Net Income and Adjusted Earnings Before Tax
    

    
        Adjusted net income excludes charges for certain tax related items,
     gains and losses on the sale of business units and business interests,
     charges associated with accounting changes, restructuring, plant closure
     and impairment charges, charges associated with Delphi Corporation
      (Delphi) and special attrition program charges.
    

    
        Adjusted earnings before tax begins with adjusted net income and is
     adjusted to remove any remaining tax expense or benefit.
    



    
                           General Motors Corporation
    

    
                 Use of Non-GAAP Financial Measures (Continued)
    

    
     The following is a discussion of each adjustment to net income or loss
     determined in accordance with GAAP to arrive at adjusted net income and
     adjusted earnings before tax, as applicable:
    

    
     -  Tax charges. Charges associated with establishing valuation allowances
        on GM's deferred tax assets are excluded from adjusted net income. In
        addition, other tax related items may be periodically excluded from
        adjusted net income as these charges are incurred and specifically
        identified in that period. Management believes the exclusion of these
        tax charges from adjusted net income is useful because management does
        not consider these charges part of GM's core earnings in evaluating
        the performance of the business and excludes these costs when
        evaluating the performance of the Corporation, its business units and
        its management team and when making decisions to allocate resources
        among GM's business units.
    

    
     -  Gains and losses on the sale of business units and business interests.
        The gains and losses on the sale of business units and business
        interests are excluded from adjusted net income and adjusted earnings
        before tax. While GM is involved in sales of its business units and
        business interests from time to time and may have significant gains or
        losses from such sales in the future, such events have historically
        occurred sporadically. Management excludes the gains and losses
        associated with these events when it evaluates the Corporation's
        operations and for internal reporting and forecasting purposes and for
        allocation of additional resources.
    

    
     -  Changes in accounting. Our non-GAAP financial measures exclude charges
        associated with changes in accounting. Management believes the
        exclusion of changes in accounting from adjusted net income and
        adjusted earnings before tax is useful because management does not
        consider these non-recurring charges part of GM's core earnings.
        Accordingly, management excludes such costs when evaluating the
        performance of the Corporation, its business units and its management
        teams and when making decisions to allocate resources among GM's
        business units.
    

    
     -  Restructuring, plant closure charges and impairments. Our non-GAAP
        financial measures exclude exit costs and related charges, primarily
        consisting of severance costs, lease abandonment costs, product
        specific asset impairments, any subsequent changes in estimates
        related to exit activities and goodwill and other asset impairment
        charges. Management believes the exclusion of restructuring and
        impairment charges from adjusted net income and adjusted earnings
        before tax is useful because management does not consider these costs
        part of GM's core earnings in evaluating GM's operational managers and
        the exclusion permits investors to evaluate the performance of our
        management the same way management does. Additionally, management
        excludes restructuring and impairment charges in determining the
        allocation of resources, such as capital investments, among the
        Corporation's business units and as part of its forecasting and
        budgeting.
    

    
     -  Delphi charges. Our non-GAAP financial measures exclude the estimated
        charges associated with the benefit guarantees and comprehensive
        settlement agreements entered into with Delphi in connection with the
        restructuring of Delphi's operations. Management does not consider
        these costs as part of its core earnings for purposes of evaluating
        the performance of the business, and excludes such costs when
        evaluating the performance of the Corporation, its business units and
        its management teams and when making decisions to allocate resources
        among GM's business units.
    

    
     -  Special attrition program charges. Our non-GAAP financial measures
        exclude the estimated charges associated with: (1) the 2008 special
        attrition program agreements between GM and the International Union,
        United Automobile, Aerospace and Agricultural Workers of America (UAW)
        and GM and the International Union of Electronic, Electrical,
        Salaried, Machine and Furniture Workers (IUE) (collectively, 2008
        Special Attrition Programs); and (2) the 2006 special attrition
        program agreement among GM, the UAW and Delphi (2006 Special Attrition
        Program). Management believes it is useful in evaluating the
        performance of GM, its management teams and its business units during
        a particular time period to exclude charges associated with special
        attrition programs. Accordingly, management does not consider these
        costs as part of its core earnings, and excludes such costs when
        evaluating the performance of the Corporation, its business units and
        its management teams and when making decisions to allocate resources
        among GM's business units.
    



    
                           General Motors Corporation
    

    
                 Use of Non-GAAP Financial Measures (Concluded)
    

    
     Managerial Cash Flow
    

    
        GM also reports non-GAAP managerial automotive operating cash flow in
     its earnings releases and charts for securities analysts. Management
     believes that providing managerial automotive operating cash flow
     furnishes it and investors with useful information by representing the
     cash flow generated or consumed by its automotive operations, including
     cash consumed by automotive capital expenditures and equity investments
     in companies related to our core business and cash generated by sales of
     automotive operating assets and equity investments in companies related
     to GM's core business, before funding non-operating-related obligations
     including debt maturities, dividends and other non-operating items.
     Management uses this non-GAAP financial measure to assess its automotive
     cash flow when evaluating the performance of GM, its business units and
     its management teams and when making decisions to allocate resources
     among GM's business units.
    

    
     GM North America Vehicle Revenue per Unit
    

    
        GM's charts for securities analysts also include the use of a non-GAAP
     measure of revenue per vehicle. Management uses revenue per vehicle to
     track operating efficiency and to facilitate comparisons between periods
     and between manufacturers, and believes that it provides valuable
     information to investors who are interested in identifying trends and
     comparing different companies. Revenue per vehicle includes certain
     vehicle sales to other GM regions that are excluded from GAAP reporting,
     and excludes non-vehicle sales such as service parts and operations and
     OnStar service, and other income that GM does not derive from the sale of
     vehicles, such as fees on the GM credit card. Also, while they are not
     treated as sales under GAAP reporting because of GM's repurchase
     obligations, management includes sales to daily car rental companies in
     revenue per vehicle.
    

    
     Change in Presentation
    

    
        Prior period results have been reclassified for the retroactive effect
     of discontinued operations. Certain reclassifications have been made to
     the comparative 2007 financial information to conform to the current
     period presentation.
    



    
                           General Motors Corporation
                              List of Special Items
                                      2008
    

    
                 (Dollars in millions except per share amounts)
                                   (Unaudited)
    

    
                                     Second Quarter 2008   Year to Date 2008
                                     -------------------   -----------------
                                       Earnings     EPS     Earnings     EPS
     REPORTED
     Net Loss - Basic and Diluted (*)    $(15,471) $(27.33)   $(18,722) $(33.07)
    

    
     ADJUSTMENTS
     Pre-Tax Adjustments:
      Restructuring and 2008 Special
        Attrition Programs (A)           $4,551               $4,875
      Delphi (B)                          2,753                3,484
      Impairment charges related to
        investment in GMAC LLC (C)        1,334                2,786
      Canadian Auto Workers labor
        contract (D)                        340                  340
      American Axle (E)                     197                  197
      Gain on sale of investment (F)        (50)                 (50)
                                       --------             --------
                                          9,125               11,632
                                       --------             --------
     Tax related:
      Valuation allowance on net
        deferred tax assets (G)              --                  394
                                       --------             --------
    

    
     Total Adjustments                   $9,125   $16.12     $12,026   $21.24
                                       ========  =======    ========  =======
    

    
     ADJUSTED
     Adjusted Loss - Basic and
        Diluted (*)                       $(6,346) $(11.21)    $(6,696) $(11.83)
                                       ========  =======    ========  =======
    


    
     (*) See average shares outstanding.
    



    
                           General Motors Corporation
                              List of Special Items
                                      2008
    

    
                                   (Unaudited)
    

    
     (A) Relates to various restructuring initiatives and the 2008 Special
        Attrition Programs. Charges recorded by region are as follows:
    

    
        GMNA: Second quarter charges of $3.3 billion were recorded for the
        2008 Special Attrition Programs, including: (1) a $2.4 billion
        curtailment loss on the U.S. hourly pension plan due to a reduction
        in the expected aggregate years of future service as a result of
        employees accepting the voluntary program; (2) $633 million for
        special termination benefits and retirement incentive payments
        paid from the overfunded U.S. hourly pension plan; and (3) $312
        million for cash payments to separating employees or those taking
        preretirement leave. We have recorded year to date charges of
        $3.5 billion for preretirement and retirement pension and benefit
        incentives and cash buyouts for employees leaving under the 2008
        Special Attrition Programs.
    

    
        During the second quarter, we also recorded charges of $1.1 billion
        for additional wage and benefit costs related to the recently
        announced capacity actions and plant idlings in the U.S. and Canada.
    

    
        GME: Second quarter charges of $79 million and year to date charges
        of $202 million were recognized for separation programs, primarily in
        Belgium, France, Germany and Sweden.
    

    
        GMAP: Second quarter and year to date charges of $98 million were
        recorded for the closure of the Family II engine plant at GM Holden,
        Ltd. (GM Holden), which was announced in June 2008.
    

    
     (B) Second quarter charges of $2.8 billion and year to date charges of
        $3.5 billion were recorded for increased liabilities under our Delphi
        Benefit Guarantee Agreements, primarily due to expectations of
        increased obligations and updated estimates reflecting the nature,
        value and timing of our recoveries upon Delphi's emergence from
        bankruptcy.
    

    
     (C) Second quarter charges of $1.3 billion and year to date charges of
        $2.8 billion to record impairments of our investment in Common and
        Preferred Membership Interests of GMAC LLC.
    

    
     (D) Relates to a change in the  estimate  of the  amortization  period
        for  pension  prior service  costs  related  to our hourly  defined
        benefit  pension  plan in Canada.  In  conjunction  with our 2008
        Canadian Auto Workers (CAW) labor agreement,  we  determined  that
        the three  year  contractual  life of the labor  agreement is a
        better  reflection of the period of future  economic benefit
        received  from  pension  plan  amendments  for  our  collectively
        bargained  hourly  pension  plans.  We recorded a second quarter
        charge of $340 million for additional  pension  expense  related
        to the  unamortized prior service costs from prior CAW labor
        contracts.
    

    
     (E) Relates to our agreement to provide upfront support to American
        Axle to end the work stoppage that affected approximately 30 GM
        plants in North America. Our support partially funds American Axle's
        costs associated with UAW employee buyouts, early retirements
        and buydowns.
    

    
     (F) Relates to a second quarter gain of $50 million on the sale of our
        common equity interest in Electro-Motive Diesel, Inc.
    

    
     (G) Relates to a first quarter net charge for a valuation allowance
        on GM's net deferred tax assets in Spain and the United Kingdom.
    



    
                           General Motors Corporation
                              List of Special Items
                                      2007
    

    
                 (Dollars in millions except per share amounts)
                                   (Unaudited)
    

    
                                     Second Quarter 2008   Year to Date 2008
                                     -------------------   -----------------
                                       Earnings     EPS     Earnings     EPS
     REPORTED
     Income from continuing
       operations                          $784    $1.38        $742    $1.31
     Income from discontinued
       operations                           107     0.19         211     0.37
                                       --------  -------    --------  -------
     Net Income - Basic (*)                  $891    $1.57       $953     $1.68
                                       ========  =======    ========  =======
     Net Income - Diluted (*)                        $1.56                $1.67
                                                 =======              =======
    

    
     ADJUSTMENTS
     Pre-Tax Adjustments:
      Delphi (A)                           $575                 $575
      Restructuring/Special
        attrition program (B)               130                  208
      Product specific asset
        impairments (C)                     100                  108
      Plant closures (D)                     (6)                 (47)
                                       --------             --------
                                            799                  844
                                       --------             --------
     Tax Related Adjustments:
      Income tax impact of pre-tax
        adjustments                        (279)                (292)
                                       --------             --------
    

    
     Total Adjustments - Continuing
      Operations                           $520    $0.92        $552    $0.98
                                       ========  =======    ========  =======
    

    
     ADJUSTED
     Income from continuing
      operations                         $1,304    $2.30      $1,294    $2.29
     Income from discontinued
      operations                            107     0.19         211     0.37
                                       --------  -------    --------  -------
     Adjusted Income - Basic (*)           $1,411    $2.49      $1,505    $2.66
                                       ========  =======    ========  =======
     Adjusted Income - Diluted (*)                   $2.48                $2.64
                                                 =======              =======
    


    
     (*)  See average shares outstanding
    



    
                           General Motors Corporation
                              List of Special Items
                                      2007
    

    
                                   (Unaudited)
    

    
     (A) GM, Delphi and the UAW entered into a Memorandum of Understanding
        (MOU) in June 2007. During the second quarter of 2007, GM recorded
        a charge of $575 million to increase our estimated liability under
        our Delphi Benefit Guarantee Agreements and to establish liabilities
        for certain commitments in connection with the Delphi reorganization
        plan outlined in the MOU.
    

    
     (B) Relates to various restructuring initiatives and the 2006 Special
        Attrition Program. Charges recorded by region are as follows:
    

    
        GMNA: Second quarter charges of $97 million and year to date net
        adjustments of $95 million were recorded for our plant closing
        reserves. Also includes first quarter curtailment gains of $14
        million and second quarter and year to date favorable adjustments
        of $6 million and $10 million, respectively, under the 2006 Special
        Attrition Program.
    

    
        GME: Second quarter charges of $30 million and year to date charges
        of $87 million were recorded for separation programs, primarily in
        Germany and Sweden.
    

    
        GMAP: Second quarter charges of $9 million and year to date charges
        of $50 million were recorded for voluntary separation programs at
        one of GM Holden's Australian facilities as a result of increased
        plant efficiency.
    

    
     (C) Relates to second quarter charges of $100 million and year to date
        charges of $108 million for product specific asset impairments.
        Charges recorded by region are as follows:
    

    
        GMNA:  Charges of $95 million were  recognized  during the second
        quarter for product specific  asset impairments.
    

    
        GMAP: Second quarter charges of $5 million and year to date charges
        of $13 million for product specific asset impairments at GM Holden,
        which were triggered by reductions in the production forecast.
    

    
     (D) Relates to a first quarter curtailment gain of $38 million and year
        to date favorable reserve adjustments of $9 million at GMNA related
        to the closure of two former component plants.
    



    
                           General Motors Corporation
                       Summary Corporate Financial Results
    

    
                 (Dollars in millions except per share amounts)
                                   (Unaudited)
    

    
                                          Second Quarter      Year to Date
                                       -------------------  -----------------
                                          2008      2007       2008      2007
                                       --------- ---------  --------- --------
     REPORTED
     Total net sales and revenue        $38,156   $46,677    $80,645  $89,904
     Income (loss) from continuing
       operations                      $(15,471)     $784   $(18,722)    $742
     Income from discontinued
       operations                           $--      $107        $--     $211
     Net income (loss)                 $(15,471)     $891   $(18,722)    $953
     Net margin from continuing
       operations (*)                       (40.7)%     1.7%     (23.2)%    0.8%
    

    
     Earnings (loss) per share -
      basic
       Continuing operations            $(27.33)    $1.38    $(33.07)   $1.31
       Income from discontinued
        operations                           --      0.19         --     0.37
                                       --------  --------   --------  -------
       Net income (loss)                $(27.33)    $1.57    $(33.07)   $1.68
                                       ========  ========   ========  =======
     Earnings (loss) per share -
      diluted
       Continuing operations            $(27.33)    $1.37    $(33.07)   $1.30
       Income from discontinued
        operations                           --      0.19         --     0.37
                                       --------  --------   --------  -------
       Net income (loss)                $(27.33)    $1.56    $(33.07)   $1.67
                                       ========  ========   ========  =======
    

    
     ADJUSTED
     Total net sales and revenue        $38,156   $46,677    $80,645  $89,904
     Income (loss) from continuing
      operations                        $(6,346)   $1,304    $(6,696)  $1,294
     Income from discontinued
      operations                            $--      $107        $--     $211
     Net income (loss)                  $(6,346)   $1,411    $(6,696)  $1,505
     Net margin from continuing
      operations (*)                        (16.7)%     2.8%      (8.3)%    1.4%
    

    
     Earnings (loss) per share -
      basic
       Income (loss) from continuing
        operations                      $(11.21)    $2.30    $(11.83)   $2.29
       Income from discontinued
        operations                           --      0.19         --     0.37
                                       --------  --------   --------  -------
       Net income (loss)                $(11.21)    $2.49    $(11.83)   $2.66
                                       ========  ========   ========  =======
     Earnings (loss) per share -
      diluted
       Income (loss) from continuing
        operations                      $(11.21)    $2.29    $(11.83)   $2.27
       Income from discontinued
        operations                           --      0.19         --     0.37
                                       --------  --------   --------  -------
       Net income (loss)                $(11.21)    $2.48    $(11.83)   $2.64
                                       ========  ========   ========  =======
    

    
                See reconciliation of adjusted financial results.
    


    
      (*) Calculated as Income (loss) from continuing operations / Total
        net sales and revenue.
    



    
                           General Motors Corporation
                       Summary Corporate Financial Results
    

    
                                   (Unaudited)
    

    
                                          Second Quarter      Year to Date
                                       -------------------  -----------------
                                          2008      2007       2008      2007
                                       --------- ---------  --------- --------
     GM common stock average shares
      outstanding:                                     (Millions)
                                       ---------------------------------------
     Reported (GAAP):
      Basic shares                          566       566        566       566
      Diluted shares                        566       569        566       569
     Adjusted (Non-GAAP):
      Basic shares                          566       566        566       566
      Diluted shares                        566       569        566       569
    

    
     Cash dividends per share of
      common stock                        $0.25     $0.25      $0.50     $0.50
    


    
     Automotive cash & marketable securities and
      readily-available assets in VEBA at June 30:               (Billions)
                                                            ------------------
      Automotive cash & marketable
        securities                                             $20.5     $23.6
      Readily-available assets in
        VEBA                                                     0.5       3.6
                                                           ---------   -------
     Total automotive cash & marketable securities and
      readily-available assets in VEBA                         $21.0     $27.2
                                                           =========   =======
    


    
     Automotive Operations:                            (Millions)
                                       ---------------------------------------
       Depreciation and impairment       $1,179    $1,219     $2,405    $2,464
      Amortization and impairment of
        special tools                       827       850      1,599     1,570
       Amortization of intangible
        assets                               20        18         40        35
                                       --------  --------   --------   -------
       Total                             $2,026    $2,087     $4,044    $4,069
                                       ========  ========   ========   =======
    



    
                           General Motors Corporation
                       Summary Corporate Financial Results
    

    
                              (Dollars in millions)
                                   (Unaudited)
    

    
                                 Second Quarter
                                  2008 and 2007
    

    
                              Reported       Special Items      Adjusted
                          ----------------  ---------------   --------------
                             2008   2007      2008    2007      2008   2007
                          -------- -------  ------- -------  -------- ------
     Net sales and
      revenue:
      GMNA                $19,820  $29,663      $--    $--   $19,820  $29,663
      GME                  10,579    9,512       --     --    10,579    9,512
      GMLAAM                5,109    4,333       --     --     5,109    4,333
      GMAP                  5,158    5,287       --     --     5,158    5,287
      Auto Elimination
      (a)                  (2,993)  (3,012)      --     --    (2,993)  (3,012)
                           -------  -------   ------ ------   -------  -------
      Total GMA            37,673   45,783       --     --    37,673   45,783
      Corporate & Other        --       --       --     --        --       --
                          -------  -------   ------ ------   -------  -------
      Total Auto & Other   37,673   45,783       --     --    37,673   45,783
                          -------  -------   ------ ------   -------  -------
      GMAC                     --       --       --     --        --       --
      Other Financing         483      894       --     --       483      894
                          -------  -------   ------ ------   -------  -------
      Total Financing         483      894       --     --       483      894
                          -------  -------   ------ ------   -------  -------
    

    
     Total                $38,156  $46,677      $--    $--   $38,156  $46,677
                          =======  =======   ====== ======   =======  =======
    

    
     Income (loss) from continuing
      operations before income taxes,
      other equity income and minority
      interests:
      GMNA                $(9,334)    $(98)  $4,911   $180   $(4,423)     $82
      GME                      12      312       79     30        91      342
      GMLAAM                  442      295       --     --       442      295
      GMAP                   (359)     282       98     14      (261)     296
      Auto Elimination
      (a)                     (14)      (1)      --     --       (14)      (1)
                          -------  -------   ------ ------   -------  -------
      Total GMA            (9,253)     790    5,088    224    (4,165)   1,014
      Corporate & Other
      (a)                  (3,499)    (579)   2,703    575      (796)      (4)
                          -------  -------   ------ ------   -------  -------
      Total Auto & Other  (12,752)     211    7,791    799    (4,961)   1,010
                          -------  -------   ------ ------   -------  -------
      GMAC                 (2,551)     154    1,334     --    (1,217)     154
      Other Financing
      (a)                     (55)      86       --     --       (55)      86
                          -------  -------   ------ ------   -------  -------
      Total Financing      (2,606)     240    1,334     --    (1,272)     240
                          -------  -------   ------ ------   -------  -------
    

    
     Total               $(15,358)    $451   $9,125   $799   $(6,233)  $1,250
                          =======  =======   ====== ======   =======  =======
    

    
                                  See footnotes.
    



    
                           General Motors Corporation
                       Summary Corporate Financial Results
    

    
                              (Dollars in millions)
                                   (Unaudited)
    

    
                                 Second Quarter
                                  2008 and 2007
    

    
                               Reported       Special Items      Adjusted
                           ----------------  ---------------   --------------
                              2008   2007      2008    2007      2008   2007
                           -------- -------  ------- -------  -------- ------
     Equity income (loss),
      net of tax:
      GMNA                    $(6)     $27      $--    $--       $(6)     $27
      GME                      21       12       --     --        21       12
      GMLAAM                    9        8       --     --         9        8
      GMAP                    104      122       --     --       104      122
      Auto Elimination         --        1       --     --        --        1
                          -------  -------   ------ ------   -------  -------
      Total GMA               128      170       --     --       128      170
      Corporate & Other        --       --       --     --        --       --
                          -------  -------   ------ ------   -------  -------
      Total Auto & Other      128      170       --     --       128      170
                          -------  -------   ------ ------   -------  -------
      GMAC                     --       --       --     --        --       --
      Other Financing          --       --       --     --        --       --
                          -------  -------   ------ ------   -------  -------
      Total Financing          --       --       --     --        --       --
                          -------  -------   ------ ------   -------  -------
    

    
     Total                   $128     $170      $--    $--      $128     $170
                          =======  =======   ====== ======   =======  =======
    

    
     Minority interests, net of tax:
      GMNA                    $(6)    $(17)     $--    $--       $(6)    $(17)
      GME                     (13)      (9)      --     --       (13)      (9)
      GMLAAM                   (6)      (7)      --     --        (6)      (7)
      GMAP                     92     (124)      --     --        92     (124)
      Auto Elimination         --       --       --     --        --       --
                          -------  -------   ------ ------   -------  -------
      Total GMA                67     (157)      --     --        67     (157)
      Corporate & Other        (1)      --       --     --        (1)      --
                          -------  -------   ------ ------   -------  -------
      Total Auto & Other       66     (157)      --     --        66     (157)
                          -------  -------   ------ ------   -------  -------
      GMAC                     --       --       --     --        --       --
      Other Financing           1       --       --     --         1       --
                          -------  -------   ------ ------   -------  -------
      Total Financing           1       --       --     --         1       --
                          -------  -------   ------ ------   -------  -------
    

    
     Total                    $67    $(157)     $--    $--       $67    $(157)
                          =======  =======   ====== ======   =======  =======
    

    
                                 See footnotes.
    



    
                           General Motors Corporation
                       Summary Corporate Financial Results
    

    
                              (Dollars in millions)
                                   (Unaudited)
    

    
                                 Second Quarter
                                  2008 and 2007
    

    
                              Reported       Special Items      Adjusted
                          ----------------  ---------------   --------------
                             2008   2007      2008    2007      2008   2007
                          -------- -------  ------- -------  -------- ------
     Pre-tax earnings
      (loss): (*)
      GMNA                $(9,346)    $(88)  $4,911   $180   $(4,435)     $92
      GME                      20      315       79     30        99      345
      GMLAAM                  445      296       --     --       445      296
      GMAP                   (163)     280       98     14       (65)     294
      Auto Elimination
      (a)                     (14)      --       --     --       (14)      --
                          -------  -------  ------- ------   -------  -------
      Total GMA            (9,058)     803    5,088    224    (3,970)   1,027
      Corporate & Other
      (a)                  (3,500)    (579)   2,703    575      (797)      (4)
                           -------  -------  ------- ------   -------  -------
      Total Auto & Other  (12,558)     224    7,791    799    (4,767)   1,023
                          -------  -------  ------- -------- -------  -------
      GMAC                 (2,551)     154    1,334     --    (1,217)     154
      Other Financing
      (a)                     (54)      86       --     --       (54)      86
                          -------  -------  ------- ------   -------  -------
       Total Financing     (2,605)     240    1,334     --    (1,271)     240
                          -------  -------  ------- ------   -------  -------
    

    
     Total               $(15,163)    $464   $9,125   $799   $(6,038)  $1,263
                          =======  =======  ======= ======   =======  =======
    

    
     Income tax expense
      (benefit):
       Corporate & Other   $1,045    $(364)     $--   $279    $1,045     $(85)
       Other Financing
     (a)                     (737)      44       --     --      (737)      44
                          -------  -------  ------- ------   -------  -------
     Total                   $308    $(320)     $--   $279      $308     $(41)
                          =======  =======  ======= ======   =======  =======
    

    
                                 See footnotes.
    


    
     (*) Defined here as Income (loss) from continuing operations before
       income taxes and after equity income and minority interests.
    



    
                           General Motors Corporation
                       Summary Corporate Financial Results
    

    
                              (Dollars in millions)
                                   (Unaudited)
    

    
                                  Year to Date
                                  2008 and 2007
    

    
                              Reported       Special Items      Adjusted
                          ----------------  ---------------   --------------
                             2008   2007      2008    2007      2008   2007
                          -------- -------  ------- -------  -------- ------
     Net sales and
      revenue:
      GMNA                $44,363  $57,720      $--    $--   $44,363  $57,720
      GME                  20,488   17,983       --     --    20,488   17,983
      GMLAAM                9,872    7,910       --     --     9,872    7,910
      GMAP                 10,454    9,695       --     --    10,454    9,695
      Auto Elimination
      (a)                  (5,560)  (5,234)      --     --    (5,560)  (5,234)
                           -------  -------  ------- ------   -------  -------
      Total GMA            79,617   88,074       --     --    79,617   88,074
      Corporate & Other        --       --       --     --        --       --
                          -------  -------  ------- ------   -------  -------
      Total Auto & Other   79,617   88,074       --     --    79,617   88,074
                          -------  -------  ------- ------   -------  -------
      GMAC                     --       --       --     --        --       --
      Other Financing       1,028    1,830       --     --     1,028    1,830
                          -------  -------  ------- ------   -------  -------
      Total Financing       1,028    1,830       --     --     1,028    1,830
                          -------  -------  ------- ------   -------  -------
    

    
     Total                $80,645  $89,904      $--    $--   $80,645  $89,904
                          =======  =======  ======= ======   =======  =======
    

    
     Income (loss) from continuing
      operations before income taxes,
      other equity income and minority
      interests:
      GMNA               $(10,129)   $(309)  $5,112   $119   $(5,017)   $(190)
      GME                      81      314      202     87       283      401
      GMLAAM                  960      550       --     --       960      550
      GMAP                   (157)     376       98     63       (59)     439
      Auto Elimination
      (a)                     (12)      (8)      --     --       (12)      (8)
                          -------  -------  ------- ------   -------  -------
      Total GMA            (9,257)     923    5,412    269    (3,845)   1,192
      Corporate & Other
      (a)                  (4,528)    (789)   3,434    575    (1,094)    (214)
                          -------  -------  ------- ------   -------  -------
      Total Auto & Other  (13,785)     134    8,846    844    (4,939)     978
                          -------  -------  ------- ------   -------  -------
      GMAC                 (4,279)      20    2,786     --    (1,493)      20
      Other Financing
      (a)                      49      140       --     --        49      140
                          -------  -------  ------- ------   -------  -------
      Total Financing      (4,230)     160    2,786     --    (1,444)     160
                          -------  -------  ------- ------   -------  -------
     Total               $(18,015)    $294  $11,632   $844   $(6,383)  $1,138
                           =======  =======  ======= ======   =======  =======
    

    
                                 See footnotes.
    



    
                           General Motors Corporation
                       Summary Corporate Financial Results
    

    
                              (Dollars in millions)
                                   (Unaudited)
    

    
                                  Year to Date
                                  2008 and 2007
    

    
                              Reported       Special Items      Adjusted
                          ----------------  ---------------   --------------
                             2008   2007      2008    2007      2008   2007
                          -------- -------  ------- -------  -------- ------
     Equity income (loss), net of tax:
      GMNA                   $(26)     $40      $--    $--      $(26)     $40
      GME                      34       20       --     --        34       20
      GMLAAM                   14       14       --     --        14       14
      GMAP                    238      249       --     --       238      249
      Auto Elimination         --        1       --     --        --        1
                          -------  -------  ------- ------   -------  -------
      Total GMA               260      324       --     --       260      324
      Corporate & Other        --        2       --     --        --        2
                          -------  -------  ------- ------   -------  -------
      Total Auto & Other      260      326       --     --       260      326
                          -------  -------  ------- ------   -------  -------
      GMAC                     --       --       --     --        --       --
      Other Financing          --       --       --     --        --       --
                          -------  -------  ------- ------   -------  -------
      Total Financing          --       --       --     --        --       --
                          -------  -------  ------- ------   -------  -------
    

    
     Total                   $260     $326      $--    $--      $260     $326
                          =======  =======  ======= ======   =======  =======
    

    
     Minority interests, net of tax:
      GMNA                    $(3)    $(27)     $--    $--       $(3)    $(27)
      GME                     (20)     (15)      --     --       (20)     (15)
      GMLAAM                  (12)     (14)      --     --       (12)     (14)
      GMAP                     42     (202)      --     --        42     (202)
      Auto Elimination         --       --       --     --        --       --
                          -------  -------  ------- ------   -------  -------
      Total GMA                 7     (258)      --     --         7     (258)
      Corporate & Other        (1)      (1)      --     --        (1)      (1)
                          -------  -------  ------- ------   -------  -------
      Total Auto & Other        6     (259)      --     --         6     (259)
                          -------  -------  ------- ------   -------  -------
      GMAC                     --       --       --     --        --       --
      Other Financing         (12)      --       --     --       (12)      --
                          -------  -------  ------- ------   -------  -------
      Total Financing         (12)      --       --     --       (12)      --
                          -------  -------  ------- ------   -------  -------
    

    
     Total                    $(6)   $(259)     $--    $--       $(6)   $(259)
                          =======  =======  ======= ======   =======  =======
    

    
                                 See footnotes.
    



    
                           General Motors Corporation
                       Summary Corporate Financial Results
    

    
                              (Dollars in millions)
                                   (Unaudited)
    

    
                                  Year to Date
                                  2008 and 2007
    

    
                              Reported       Special Items      Adjusted
                          ----------------  ---------------   --------------
                             2008   2007      2008    2007      2008   2007
                          -------- -------  ------- -------  -------- ------
     Pre-tax earnings
      (loss): (*)
      GMNA               $(10,158)   $(296)  $5,112   $119   $(5,046)   $(177)
      GME                      95      319      202     87       297      406
      GMLAAM                  962      550       --     --       962      550
      GMAP                    123      423       98     63       221      486
      Auto Elimination
      (a)                     (12)      (7)      --     --       (12)      (7)
                          -------  -------  ------- ------   -------  -------
      Total GMA            (8,990)     989    5,412    269    (3,578)   1,258
      Corporate & Other
      (a)                  (4,529)    (788)   3,434    575    (1,095)    (213)
                          -------  -------  ------- ------   -------  -------
      Total Auto & Other  (13,519)     201    8,846    844    (4,673)   1,045
                          -------  -------  ------- ------   -------  -------
      GMAC                 (4,279)      20    2,786     --    (1,493)      20
      Other Financing
      (a)                      37      140       --     --        37      140
                          -------  -------  ------- ------   -------  -------
       Total Financing     (4,242)     160    2,786     --    (1,456)     160
                          -------  -------  ------- ------   -------  -------
    

    
     Total               $(17,761)    $361  $11,632   $844   $(6,129)  $1,205
                          =======  =======  ======= ======   =======  =======
    

    
     Income tax expense
      (benefit):
       Corporate & Other   $1,690    $(431)   $(394)  $292    $1,296    $(139)
       Other Financing
     (a)                     (729)      50       --     --      (729)      50
                          -------  -------  ------- ------   -------  -------
     Total                   $961    $(381)   $(394)  $292      $567     $(89)
                          =======  =======  ======= ======   =======  =======
    

    
                                 See footnotes.
    


    
     (*) Defined here as Income (loss) from continuing operations before
       income taxes and after equity income and minority interests.
    



    
                           General Motors Corporation
                       Summary Corporate Financial Results
    

    
                              (Dollars in billions)
                                   (Unaudited)
    

    
                                         Second Quarter      Year to Date
                                      -------------------  -----------------
                                         2008      2007       2008      2007
                                      --------- ---------  --------- --------
     Automotive & Other Adjusted
      Operating Cash Flow:
      Total Auto & Other pre-tax
        earnings (loss)(*)                $(12.6)     $0.2     $(13.5)     $0.2
      Depreciation and amortization        2.0       2.1        4.0       4.1
      Capital expenditures                (2.2)     (1.7)      (4.1)     (2.9)
      Change in receivables,
        payables and inventory             0.6       0.2       (1.5)      0.2
      Pension/OPEB expense (net of
        payments)                          2.7      (0.5)       2.0      (1.0)
      VEBA                                  --      (1.0)        --      (1.0)
      Accrued expenses and other           5.9       1.8        5.9       1.8
                                        ------    ------     ------    ------
      Total Auto & Other Adjusted
        Operating Cash Flow              $(3.6)     $1.1      $(7.2)     $1.4
                                        ======    ======     ======    ======
    


    
     (*) Defined here as Income (loss) from continuing operations before
       income taxes and after equity income and minority interests.
    



    
                           General Motors Corporation
                              Operating Statistics
    

    
                                   (Unaudited)
    

    
                                         Second Quarter      Year to Date
                                      -------------------  -----------------
                                         2008      2007       2008      2007
                                      --------- ---------  --------- --------
     Worldwide Production Volume:               (Units in thousands)
                                                --------------------
       GMNA - Cars                         382       402        742       801
       GMNA - Trucks                       452       740        977     1,404
                                        ------    ------     ------    ------
        Total GMNA                         834     1,142      1,719     2,205
       GME                                 495       464        988       975
       GMLAAM                              276       233        519       455
       GMAP (*)                              619       571      1,231     1,115
                                        ------    ------     ------    ------
       Total Worldwide  (*)(*)               2,224     2,410      4,457     4,750
                                        ======    ======     ======    ======
    

    
     Vehicle Unit Deliveries:
       Chevrolet - Cars                    206       218        388       405
       Chevrolet - Trucks                  278       376        577       737
       Pontiac                              80        96        153       175
       GMC                                  93       131        197       241
       Buick                                33        47         71        90
       Saturn                               54        69        102       126
       Cadillac                             42        51         89        98
       Other                                13        26         28        51
                                        ------    ------     ------    ------
        Total United States                799     1,014      1,605     1,923
       Canada, Mexico and Other            165       186        306       333
                                        ------    ------     ------    ------
        Total GMNA                         964     1,200      1,911     2,256
       GME                                 590       575      1,161     1,129
       GMLAAM                              346       294        670       564
       GMAP (*)                              387       338        798       726
                                        ------    ------     ------    ------
       Total Worldwide (*)(*)                2,287     2,407      4,540     4,675
                                        ======    ======     ======    ======
    

    
     Market Share:
       United States - Cars               17.1%     19.4%      18.0%     19.4%
       United States - Trucks             24.3%     26.0%      24.6%     25.7%
        Total United States               20.4%     22.8%      21.3%     22.8%
       Total GMNA                         20.2%     22.7%      20.9%     22.6%
       Total GME                           9.4%      9.4%       9.5%      9.5%
       Total GMLAAM                       17.5%     16.8%      17.5%     16.6%
       Total GMAP (*)                        7.0%      6.7%       7.0%      6.9%
       Total Worldwide                    12.3%     13.2%      12.4%     13.1%
    

    
     U.S. Retail/Fleet Mix:
       % Fleet Sales - Cars               23.9%     33.2%      28.5%     34.8%
       % Fleet Sales - Trucks             23.0%     22.3%      22.4%     20.4%
       Total Vehicles                     23.4%     26.7%      25.0%     26.1%
    

    
     GMNA Capacity Utilization (*)(*)(*)        71.0%     94.9%      73.6%     91.5%
    


    
      (*) GMAP production and sales volume includes SAIC-GM Wuling
        Automobile Co. Ltd. (SGMW) joint venture vehicles. We own 34%
        of SGMW and under the joint venture agreement have significant
        rights as a member as well as the contractual right to report
        SGMW sales in China as part of our global market share.
     (*)(*) Total Worldwide may include rounding differences.
     (*)(*)(*) Two shift rated, annualized.
    



    
                           General Motors Corporation
                              Operating Statistics
    

    
                                   (Unaudited)
    

    
                                          Second Quarter       Year to Date
                                         2008      2007       2008      2007
                                      --------- ---------  --------- -------
    

    
     GMAC's share of GM retail sales
     Total consumer volume (retail
      and lease) as % of retail
      (North America only)                  43%       45%        46%       45%
     SmartLease/SmartBuy as % of
      retail (U.S. only)                    14%       16%        17%       16%
    

    
     Worldwide Employment at June 30:                          (Thousands)
                                                             ----------------
      United States - Hourly (b)                                 72        83
      United States - Salaried (b)                               32        33
                                                             ------    ------
        Total United States                                     104       116
      Canada, Mexico and Other                                   29        30
                                                             ------    ------
      GMNA                                                      133       146
      GME                                                        57        59
      GMLAAM                                                     36        33
      GMAP                                                       35        33
      Other                                                       2         3
                                                             ------    ------
       Total GM                                                 263       274
                                                             ======    ======
    

    
                                                      (Billions)
                                          ------------------------------------
     Worldwide Payroll                    $4.2      $4.4       $8.5      $9.0
    


    
     Footnotes:
    

    
     (a) Auto Eliminations, Corporate & Other and Other Financing include
        inter-company eliminations.
    

    
     (b) Includes approximately 2,000 hourly and 1,100 salary employees of
        Allison Transmission at June 30, 2007.
    



    
                   GENERAL MOTORS CORPORATION AND SUBSIDIARIES
    

    
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    

    
                 (Dollars in millions, except per share amounts)
                                   (Unaudited)
    

    
                                       Three Months Ended   Six Months Ended
                                           June 30,            June 30,
                                       ------------------  -------------------
                                          2008      2007      2008      2007
                                       --------- --------  --------- ---------
     Net sales and revenue
      Automotive sales                  $37,673   $45,783   $79,617   $88,074
      Financial services and insurance
       revenue                              483       894     1,028     1,830
                                       --------  --------  --------  --------
     Total net sales and revenue         38,156    46,677    80,645    89,904
                                       --------  --------  --------  --------
     Costs and expenses
      Automotive cost of sales           43,546    41,666    81,698    80,395
      Selling, general and
       administrative expense             3,754     3,293     7,453     6,604
      Financial services and insurance
       expense                              579       811     1,075     1,694
      Other expenses                      2,753       575     3,484       575
                                       --------  --------  --------  --------
     Total costs and expenses            50,632    46,345    93,710    89,268
                                        --------  --------  --------  --------
      Operating income (loss)           (12,476)      332   (13,065)      636
     Equity in income (loss) of GMAC LLC (1,930)      118    (3,542)      (65)
     Automotive and other interest
      expense                              (721)     (681)   (1,495)   (1,480)
     Automotive interest income and
      other non-operating income (loss),
      net                                  (231)      682        87     1,203
                                       --------  --------  --------  --------
     Income (loss) from continuing
      operations before income taxes,
      equity income and minority
      interests                         (15,358)      451   (18,015)      294
     Income tax expense (benefit)           308      (320)      961      (381)
     Equity income, net of tax              128       170       260       326
     Minority interests, net of tax          67      (157)       (6)     (259)
                                       --------  --------  --------  --------
      Income (loss) from continuing
       operations                       (15,471)      784   (18,722)      742
      Income from discontinued
       operations, net of tax                --       107        --       211
                                       --------  --------  --------  --------
     Net income (loss)                 $(15,471)     $891  $(18,722)     $953
                                       ========  ========  ========  ========
    

    
     Basic earnings (loss) per share:
      Continuing operations             $(27.33)    $1.38   $(33.07)    $1.31
      Discontinued operations                --      0.19        --      0.37
                                       --------  --------  --------  --------
     Total                              $(27.33)    $1.57   $(33.07)    $1.68
                                       ========  ========  ========  ========
    

    
     Weighted average common shares
      outstanding, basic (millions)         566       566       566       566
                                       ========  ========  ========  ========
    

    
     Diluted earnings (loss) per share:
      Continuing operations             $(27.33)    $1.37   $(33.07)    $1.30
      Discontinued operations                --      0.19        --      0.37
                                       --------  --------  --------  --------
     Total                              $(27.33)    $1.56   $(33.07)    $1.67
                                       ========  ========  ========  ========
    

    
    Weighted average common shares
     outstanding, diluted (millions)        566       569       566       569
                                       ========  ========  ========  ========
    

    
     Cash dividends per share             $0.25     $0.25     $0.50     $0.50
                                       ========  ========  ========  ========
    



    
                   GENERAL MOTORS CORPORATION AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS
    

    
                              (Dollars in millions)
                                   (Unaudited)
    

    
                                               June 30,  December 31, June 30,
                                                 2008       2007       2007
                                               --------- ----------- --------
                                        ASSETS
     Current Assets
     Cash and cash equivalents                  $ 19,356  $ 24,549   $ 22,040
     Marketable securities                         1,150     2,139      1,573
                                                --------  --------   --------
      Total cash and marketable securities        20,506    26,688     23,613
     Accounts and notes receivable, net            8,946     9,659     10,233
     Inventories                                  17,744    14,939     15,073
     Assets held for sale                             --        --        683
     Equipment on operating leases, net            4,669     5,283      5,889
     Other current assets and deferred income
      taxes                                        3,576     3,566     12,471
                                                --------  --------   --------
      Total current assets                        55,441    60,135     67,962
     Financing and Insurance Operations Assets
     Cash and cash equivalents                       198       268        258
     Investments in securities                       214       215        192
     Equipment on operating leases, net            3,804     6,712      9,145
     Equity in net assets of GMAC LLC              3,454     7,079      7,555
     Other assets                                  2,807     2,715      2,819
                                                --------  --------   --------
      Total Financing and Insurance Operations
       assets                                     10,477    16,989     19,969
     Non-Current Assets
     Equity in net assets of nonconsolidated
      affiliates                                   2,367     1,919      2,000
     Property, net                                44,038    43,017     41,404
     Goodwill and intangible assets, net           1,070     1,066        973
     Deferred income taxes                         1,014     2,116     32,449
     Prepaid pension                              17,991    20,175     18,305
     Other assets                                  3,648     3,466      3,577
                                                --------  --------   --------
      Total non-current assets                    70,128    71,759     98,708
                                                --------  --------   --------
     Total Assets                               $136,046  $148,883   $186,639
                                                ========  ========   ========
    

    
                      LIABILITIES AND STOCKHOLDERS' DEFICIT
     Current Liabilities
     Accounts payable (principally trade)       $ 30,097  $ 29,439   $ 30,742
     Short-term borrowings and current portion
      of long-term debt                            8,008     6,047      5,150
     Liabilities related to assets held for sale     --         --        526
     Accrued expenses                             37,373    34,822     34,621
                                                --------  --------   --------
      Total current liabilities                   75,478    70,308     71,039
     Financing and Insurance Operations
     Liabilities
     Debt                                          2,753     4,908      7,133
     Other liabilities and deferred income taxes     884       905        855
                                                --------  --------   --------
      Total Financing and Insurance Operations
       liabilities                                 3,637     5,813      7,988
     Non-Current Liabilities
     Long-term debt                               32,450    33,384     34,134
     Postretirement benefits other than pensions  47,476    47,375     48,353
     Pensions                                     11,774    11,381     11,654
     Other liabilities and deferred income taxes  20,825    16,102     15,972
                                                --------  --------   --------
      Total non-current liabilities              112,525   108,242    110,113
                                                --------  --------   --------
        Total liabilities                        191,640   184,363    189,140
     Commitments and contingencies
     Minority interests                            1,376     1,614      1,268
     Stockholders' Deficit
     Preferred stock, no par value, 6,000,000
     shares authorized, no shares issued and
     outstanding                                      --        --         --
     Common stock, $1 2/3 par value
      (2,000,000,000 shares authorized,
      756,637,541 and 566,162,598 shares
      issued and outstanding as of June 30,
      2008, respectively, 756,637,541 and
      566,059,249 shares issued and
      outstanding as of December 31, 2007,
      respectively, and 756,637,541 and
      565,864,695 shares issued and
      outstanding as of June 30, 2007,
      respectively)                                  944       943        943
      Capital surplus (principally additional
       paid-in capital)                           15,335    15,319     15,255
      Accumulated deficit                        (58,470)  (39,392)       577
      Accumulated other comprehensive loss       (14,779)  (13,964)   (20,544)
                                                --------  --------   --------
       Total stockholders' deficit               (56,970)  (37,094)    (3,769)
                                                --------  --------   --------
      Total Liabilities, Minority Interests and
       Stockholders' Deficit                    $136,046  $148,883   $186,639
                                                ========  ========   ========

    




For further information:

For further information: Renee Rashid-Merem, +1-313-665-3128,
renee.rashid-merem@gm.com, or Randy Arickx, +1-313-667-0006,
randy.c.arickx@gm.com, both of General Motors Corporation

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