GM Reports Third Quarter Financial Results



    
    - Record third quarter automotive revenue of $43.1 billion

    - Improved automotive operations on continued strength in emerging markets

    - Ongoing challenges in U.S. mortgage market adversely impact GM income
    from GMAC

    - $39 billion reported loss driven by $39 billion valuation allowance on
    deferred tax assets

    - Improved liquidity position of $30 billion
    

    DETROIT, Nov. 7 /CNW/ -- General Motors Corp. (NYSE:   GM) today announced
its financial results for the third quarter of 2007, marked by record global
sales, further improvement in its core automotive business driven by solid
financial performance in key growth markets around the world and improved
liquidity.
    "We continue to implement the key elements of our North America
turnaround strategy, and these initiatives are driving steady improvement in
our financial results, despite challenging North America market conditions. 
In addition, we are very encouraged by our performance in emerging markets. 
Our record third quarter global sales are strong evidence that our commitment
to great cars and trucks is being embraced by consumers around the globe,"
said Rick Wagoner, GM chairman and chief executive officer.
    The company's improved performance in its automotive operations was more
than offset by special charges of $37.4 billion related largely to a
previously announced valuation allowance against its deferred tax assets, as
well as lower reported GMAC Financial Services income, down $630 million
versus the year-ago quarter as a result of continued pressures in the mortgage
industry.
    GM reported a net loss of $39 billion (including Allison Transmission,
which is classified as a discontinued operation), or $68.85 per diluted share,
for the third quarter of 2007, compared with a reported net loss of $147
million, or $.26 per diluted share, in the year-ago quarter.
    Special items included a net non-cash charge of $38.6 billion due to a
valuation allowance against deferred tax assets related to operations in the
U.S., Canada and Germany as required under SFAS No. 109, Accounting for Income
Taxes.  Also included was a favorable $3.5 billion after-tax gain on the sale
of the Allison Transmission business in August 2007, for which GM received
$5.4 billion in proceeds.  GM also had special charges of $1.6 billion in
pension service costs related to prior labor agreements, $0.4 billion
associated with restructuring actions and $0.4 billion related to an
adjustment to the Delphi reserve.  Details on all of the special charges are
included in the "Highlights" section of this news release.
    Excluding special items, GM had a 2007 third-quarter adjusted net loss of
$1.6 billion, or $2.80 per diluted share, compared to net income of $497
million, or $.88 per diluted share, in the year-ago quarter.  The variance was
driven primarily by a significant decline in net income at GMAC, as well as
increased corporate expense related to legacy cost, foreign exchange and
various 2006 tax benefits, partially offset by improved performance in
automotive operations.
    
    GM Automotive Operations
    
    GM's global automotive operations posted net income of $122 million from
continuing operations on an adjusted basis in the third quarter of 2007
(reported net loss of $40.6 billion), an improvement of $577 million compared
to an adjusted net loss from continuing operations of $455 million (reported
net loss of $401 million) in the same quarter 2006.  Results for GM's
automotive operations, specifically GMNA, exclude Allison Transmission, which
was classified as a discontinued operation as a result of the sale of that
business which was concluded in August 2007.
    GM generated record third quarter automotive revenue of $43.1 billion.
The company also achieved record global third quarter sales of 2.39 million
cars and trucks, up four percent compared to the third quarter 2006, driven by
exceptionally strong demand in emerging markets and improved performance in
developed markets.  GM also set a number of third quarter sales records around
the globe, including a 22 percent increase in GMLAAM, 16 percent increase in
the GMAP region, and 15 percent gain in GME.
    "We continue to see solid progress in the fundamentals of our automotive
business. We're very pleased with our strong sales performance in key markets
outside of North America, and growing retail momentum in the U.S. driven by
products like the all-new Cadillac CTS.  We're also very encouraged by the
early reactions to our all-new Chevrolet Malibu and 2008 Chevrolet Tahoe and
GMC Yukon two-mode hybrids - the world's only full-size hybrid SUVs," said
Wagoner.
    GMNA had an adjusted net loss from continuing operations of $247 million
in the third quarter 2007 (reported net loss from continuing operations of
$38.2 billion, which includes charges of approximately $36.5 billion for a
valuation allowance against its deferred tax assets and $1.3 billion for
pension service costs related to prior labor agreements), compared to an
adjusted net loss of $660 million from continuing operations in the third
quarter 2006 (reported net loss from continuing operations of $667 million).
GMNA's improved adjusted earnings reflect favorable mix, pricing and better
warranty performance, which were partially offset by lower volume and
increased material cost.
    GME posted an adjusted net loss of $90 million in the third quarter
(reported net loss of $2.9 billion, which includes charges of $2.5 billion for
a valuation allowance against deferred tax assets in Germany and restructuring
charges of $262 million), compared to $39 million loss in the third quarter of
2006 (reported net loss of $126 million).  The variance in adjusted net income
reflects the softness of the German market and unfavorable currency exchange,
which was partially offset by improved pricing and higher volume.
    GME achieved record third quarter sales of about 524,000 units, aided by
continued momentum of GME's multi-brand strategy during the period.  Chevrolet
is amongst the fastest growing global vehicle brands in Europe, posting record
third quarter sales of 113,000 vehicles.  GM gained further ground in the
growing Russian market, with sales up by 75 percent over the same quarter
2006, to a record 65,700 vehicles.
    GMAP recorded adjusted net income of $138 million in the third quarter
(reported net income also $138 million), compared with $57 million in the year
ago period (reported net income of $205 million, which included $148 million
in favorable tax-related items).  This favorable earnings performance was
driven largely by strong export growth from GM Daewoo, continued strong sales
and profitability in China, and improved earnings in India and Australia.
    GM achieved 16 percent sales growth in the Asia Pacific region, resulting
in record third quarter sales of 327,500 units.  GM China sold 230,000
vehicles, a 21 percent increase compared with the year ago period.  GM sales
in the region were also aided by the strong performance of GM Daewoo products,
including the Chevrolet Captiva.
    GMLAAM achieved all-time record earnings and quarterly sales in the third
quarter, posting adjusted earnings of $340 million (reported net income also
$340 million), up 86 percent compared with strong earnings in the year ago
period of $183 million (reported net income also $183 million).  The earnings
improvement was driven primarily by volume growth, favorable pricing and
vehicle mix.
    GMLAAM set a third quarter sales record of over 329,000 vehicles, up
almost 22 percent year-over-year.  All-time sales records were achieved in
Brazil, Colombia, Venezuela, Argentina and Egypt.  The successful launch of
the Chevrolet Captiva in South Africa, Venezuela, Colombia and the Middle East
helped drive strong sales in the region.
    
    GMAC
    
    As a standalone company, GMAC Financial Services reported a net loss of
$1.6 billion for the third quarter 2007, compared to a net loss of $173
million in the third quarter 2006.  The reported results for the third quarter
of 2007 included a $455 million goodwill impairment charge at Residential
Capital, LLC (ResCap), while a goodwill impairment charge of $695 million
related to GMAC Commercial Finance was reflected in results for the third
quarter of 2006.
    Results were dominated by the effects of the dislocation in the mortgage
and credit markets on the real estate finance business, which more than offset
the continued strong performance at GMAC's automotive finance, insurance and
other operations.
    GM recognized $757 million of the net loss attributable to GMAC as a
result of its 49 percent equity interest and accrued preferred dividends
(reported net loss of $803 million).
    
    Cash and Liquidity
    
    GM continues to have a strong liquidity position.  Cash, marketable
securities, and readily-available assets of the Voluntary Employees'
Beneficiary Association (VEBA) trust grew to $30 billion as of September 30,
2007, up from $27.2 billion on June 30, 2007.  The balance includes $5.4
billion of net cash proceeds from the completion of the Allison Transmission
transaction in August 2007.
    GM had negative adjusted automotive operating cash flow of $2.5 billion
in the third quarter of 2007, improved from a negative $3.9 billion in the
third quarter 2006.
    
    Forward-looking Statements
    
    In this press release and in related comments by General Motors'
management our use of words like "expect," "anticipate," "estimate,"
"forecast," "initiative," "objective," "plan," "goal," "project," "outlook,"
"priorities," "target," "intend," "evaluate," "pursue," "seek," "may,"
"would," "could," "should," "believe," "potential," "continue," "designed,"
"impact," or the negative of any of those words or similar expressions is
intended to identify forward-looking statements that represent our current
judgment about possible future events. We believe these judgments are
reasonable, but GM's actual results may differ materially due to a variety of
important factors.  Among other items, such factors include:  the ability of
GM to realize production efficiencies, to achieve reductions in costs as a
result of the turnaround restructuring and health care cost reductions and to
implement capital expenditures at levels and times planned by management; the
pace of product introductions; market acceptance of our new products;
significant changes in the competitive environment and the effect of
competition in our markets, including on our pricing policies; our ability to
maintain adequate liquidity and financing sources and an appropriate level of
debt; changes in the existing, or the adoption of new laws, regulations,
policies, or other activities of governments, agencies, and similar
organizations where such actions may affect the production, licensing,
distribution, or sale of our products, the cost thereof or applicable tax
rates; costs and risks associated with litigation; the final results of
investigations and inquiries by the SEC and other governmental agencies;
changes in accounting principles, or their application or interpretation, and
our ability to make estimates and the assumptions underlying the estimates,
including the range of estimates for the Delphi pension benefit guarantees,
which could result in an impact on earnings; negotiations and bankruptcy court
actions with respect to Delphi's obligations to GM, negotiations with respect
to GM's obligations under the pension benefit guarantees to Delphi employees,
and GM's ability to recover any indemnity claims against Delphi; labor strikes
or work stoppages at GM or its key suppliers such as Delphi or financial
difficulties at GM's key suppliers such as Delphi; completion of the final
settlement with the UAW and UAW retirees, including securing class
certification in a form acceptable to GM, the UAW and class counsel;
completion of the final settlement with the UAW and UAW retirees, including
obtaining court approval in a form acceptable to GM, the UAW, and class
counsel; treatment of the terms of the 2006 Settlement Agreement pursuant to
the Retiree MOU in a manner acceptable to GM, the UAW and class counsel; GM's
completion of discussions with the Staff of the SEC regarding accounting
treatment with respect to the New VEBA and the post-retirement medical
benefits for the covered group as set forth in the Retiree MOU, on a basis
reasonably satisfactory to GM; shortages of and price increases for fuel;
factors affecting GMAC's results of operations and financial conditions and
changes in the residential mortgage market, especially in the nonprime sector;
significant changes in the competitive environment and the effect of
competition in GMAC's markets, including on GMAC's pricing policies; GMAC's
ability to maintain adequate financing sources; GMAC's ability to maintain an
appropriate level of debt; restrictions on the ability of GMAC's residential
mortgage subsidiary to pay dividends and prepay subordinated debt obligations
to GMAC; changes in the residual value of off-lease vehicles; changes in U.S.
government-sponsored mortgage programs or disruptions in the markets in which
GMAC's mortgage subsidiaries operate; changes in GMAC's contractual servicing
rights; changes in the credit ratings of GMAC or GM; and changes in economic
conditions, commodity prices, currency exchange rates, or political stability
in the markets in which we or GMAC operate.  The most recent annual reports on
Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K
filed by GM and GMAC provide information about these factors, which may be
revised or supplemented in future reports to the SEC on those forms.



    General Motors Corporation

    Use of Non-GAAP Financial Measures

    
        This press release and the accompanying tables include the
     following non-GAAP financial measures: (a) adjusted net income,
     (b) managerial cash flow and (c) GM North America vehicle revenue per
     unit. Each of these financial measures excludes the impact of certain
     items and therefore has not been calculated in accordance with U.S.
     generally accepted accounting principles (GAAP). This press release
     also contains a reconciliation of each presented non-GAAP measure
     to its most comparable GAAP financial measure.
    

    
        Management believes these non-GAAP financial measures provide
     meaningful supplemental information regarding our operating results
     because they exclude amounts that GM management does not consider
     part of operating results when assessing the performance of the
     organization and measuring the results of GM's performance. In
     addition, GM has historically reported similar non-GAAP financial
     measures. GM believes that inclusion of these non-GAAP financial
     measures provides consistency and comparability with past earnings
     releases. GM management uses these non-GAAP financial measures to
     evaluate GM's performance and believes these measures allow GM
     management 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 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 program 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

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

    
        The following is a discussion of each adjustment to the net income
     (loss) determined in accordance with GAAP to arrive at adjusted net
     income:
    

    
     -- Deferred tax assets and tax-related items.  GM established
        valuation allowances against its deferred tax assets in the
        U.S., Canada and Germany.  The charge associated with
        establishing these valuation allowances is excluded from
        adjusted net income. Other tax related items excluded from
        adjusted net income are: (1) the impact of the reduction in
        corporate income and trade tax rates in Germany; (2) the
        reversal of our deferred tax valuation allowance at GM
        Daewoo; and (3) unusual tax events that may result as GM is
        involved in the sales of its business units and business
        interests from time-to-time.  Management believes the
        exclusion of these valuation allowance charges and tax
        related items 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.
    



    General Motors Corporation

    Use of Non-GAAP Financial Measures (Continued)

    
     -- 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. 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.
    

    
     -- Change in estimate regarding period of economic benefit of
        existing pension prior service cost. Our non-GAAP financial
        measures exclude the charge associated with this change in
        accounting estimate. Management believes the exclusion
        of this change in estimate from adjusted net income is
        useful because management does not consider these non-recurring
        charges part of GM's core earnings. Accordingly, 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.
    

    
     -- Restructuring, impairment and plant closure charges. Our
        non-GAAP financial measures exclude exit costs and related
        charges, primarily consisting of severance costs, lease
        abandonment costs, product impairments and any subsequent
        changes in estimates related to exit activities. Management
        believes the exclusion of restructuring and impairment
        charges from adjusted net income 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 comprehensive settlement
        agreements, consisting of a Global Settlement Agreement
        and a Master Restructuring Agreement, 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 charge associated with the
        special attrition program agreement among the UAW, GM and Delphi.
        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
        the special attrition program because the charge occurs
        irregularly. Accordingly, 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.
    



    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 earnings releases and 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 would provide 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 interest on the GM credit card. Management also
     includes sales to daily car rental companies in revenue per
     vehicle, although they are not treated as sales under GAAP reporting
     because of GM's repurchase obligations.
    



    
                           General Motors Corporation
                             List of Special Items (*)
                 (Dollars in millions except per share amounts)
                                   (Unaudited)
    

    
                                  Three Months Ended      Year to Date
                                  September 30, 2007   September 30, 2007
                                  -------------------  ------------------
                                     Net                  Net
                                   Income     EPS       Income     EPS
                                  --------  ---------  ---------- -------
     REPORTED
     --------
     Loss from
      continuing operations     $ (42,512) $ (75.12) $ (41,770) $ (73.82)
     Income from
      discontinued operations          45       .08        256       .45
     Gain on sale of discontinued
      operations                    3,504      6.19      3,504      6.19
                                   ------    ------     ------     -----
     Net loss                   $ (38,963) $ (68.85) $ (38,010) $ (67.18)
                                   ======    ======     ======     =====
    

    
     ADJUSTMENTS
     -----------
     Valuation on deferred tax
      assets and associated tax
      items (A)                  $ 38,300   $ 67.68   $ 38,300   $ 67.68
     Pension prior service
      cost (B)                      1,561      2.76      1,561      2.76
     Restructuring (C) (*)(*)             387       .68        580      1.03
     Delphi (D) (*)(*)                    350       .62        925      1.63
     Other valuation allowance
      adjustment for YTD Q207
      special items (E)               250       .44          -         -
     Special attrition program (F) (*)(*)  33       .06         10       .03
     Gain on sale of discontinued
      operations (G)               (3,504)    (6.19)    (3,504)    (6.19)
     Product impairments (H) (*)(*)         -         -        104       .18
     Plant closures (I) (*)(*)              -         -        (47)     (.08)
                                   ------     -----     ------     -----
     Total adjustments           $ 37,377   $ 66.05   $ 37,929   $ 67.04
                                   ======     =====     ======     =====
    

    
     ADJUSTED
     --------
     Income (loss) from
      continuing operations      $ (1,631)  $ (2.88)    $ (337)   $ (.59)
     Income from
      discontinued operations          45       .08        256       .45
                                     ====      ====       ====      ====
     Adjusted Loss - Basic       $ (1,586)  $ (2.80)    $  (81)   $ (.14)
                                     ====      ====       ====      ====
     Adjusted Loss - Diluted (*)(*)(*)            $ (2.80)              $ (.14)
                                               ====                 ====
    

    
     (*) Unless separately specified in the narratives that follow, pre-tax
     and after-tax amounts are the same.
    

    
     (*)(*) Year-to-date amounts have been revised, where applicable, to
     exclude the effect of $250 million in tax benefits that were previously
     reflected in the second quarter 2007 year-to-date highlights. The
     revised amounts result due to the valuation allowance recorded on
     deferred tax assets in the U.S., Canada and Germany in the current
     quarter.
    

    (*)(*)(*) See average shares outstanding.



    
                           General Motors Corporation
                             List of Special Items (*)
                                   (Unaudited)
    


    
     (A) Relates to a net charge  during  the  quarter  for a  valuation
         allowance  on certain deferred  tax assets and  associated  tax
         items in the U.S.,  Canada and Germany.  The net charge for the
         quarter  includes the valuation allowance  of $39  billion,  which
         includes  an  adjustment  of $.7 billion  relating to tax benefits
         recorded at loss entities through the third quarter.  Net charges
         of $36.4  billion,  $2.5 billion and $.1 billion were recorded in
         GMNA, GME and GMAC,  respectively,  and a favorable  adjustment of
         $.7 billion was recorded in Corporate and Other.  Additionally,
         GME's  adjustment  includes  a  $.5  billion charge  associated
         with a reduction  in the value of  deferred  tax assets due to a
         reduction in the statutory  corporate income tax and trade tax
         rates in Germany.
    

    
     (B) Relates to a change in the  estimate  of the  amortization
         period for  pension  prior service  cost  for  certain  of  our
         employee   benefit  plans.  In conjunction  with entering into
         the 2007 GM/UAW labor  contract,  GM determined  that the four
         year term of the  labor  contract  better reflects the period of
         future  economic  benefit  received from plan amendments  to
         U.S.   hourly   pension  plans.   Concurrently,   GM evaluated
         the remaining  economic benefit related to the unamortized
         prior  service  cost  remaining  from  prior  labor   contracts
         and determined  the  future  economic  benefit  for those  amounts
         that remained at the end of the third  quarter did not extend
         beyond the third  quarter.  Accordingly,  during  the third
         quarter  2007,  GM recorded  a  charge  of $1.3  billion  in
         GMNA  and $.3  billion  in Corporate and Other to expense the
         remaining  portion of unamortized prior service cost from the
         plan amendments  entered into as part of the 1999 and 2003 labor
         contracts.
    

    (C) Relates to various restructuring initiatives as follows:

    
        - For the three and nine months ended September 30, 2007, charges
        of $125 million and $219 million, respectively, were recognized
        at GMNA relating to adjustments to a plant closing reserve.
        - For the three and nine months ended September 30, 2007, charges
        of $262 million and after-tax charges of $326 million ($349 million
        pre-tax), respectively, were recognized at GME for separation
        programs primarily in Belgium, Germany, and Sweden.
        - After-tax charges of $35 million ($50 million pre-tax) for the
        nine months ended September 30, 2007 were recognized at GMAP
        that relate to separation programs at Australian facilities.
    

    
     (D) During  the  third  quarter,  GM and  Delphi  entered  into
         comprehensive  settlement agreements  consisting of a Global
         Settlement  Agreement (GSA) and a Master  Restructuring  Agreement
         (MRA),  replacing the Memorandum of Understanding  (MOU) that GM
         and Delphi  executed in June 2007.  The GSA  intends to  resolve
         issues  between  GM and  Delphi  that have arisen or may  arise
         in  connection  with  Delphi's  emergence  from bankruptcy
         protection,  and  the  MRA  intends  to  govern  certain
         aspects  of  GM  and  Delphi's  commercial   relationship
         following Delphi's emergence from bankruptcy protection.
    

    
         GM recorded a charge of $575 million during the second quarter upon
         entering into the MOU. The charge consisted of incremental Delphi
         retiree health care costs, reimbursement of labor costs at certain
         Delphi facilities, and reimbursement of certain pension obligations
         for Delphi employees. GM recorded an additional charge of $350
         million during the third quarter upon entering into the GSA and
         MRA. The third quarter charge consists of an adjustment to GM's
         estimated recovery under Delphi's new proposed Plan of
         Reorganization.
    

    
     (E) Relates to adjustments  totaling $250 million  recorded in the
         third quarter to remove the  tax  effect  on  special  items
         at  entities  associated  with deferred  tax asset  valuation
         allowances  in the U.S.,  Canada and Germany that were recorded
         year-to-date  through the second quarter 2007.  Adjustments of
         $41 million  were  recorded  in GMNA  related to restructuring,
         special attrition  program,  product  impairments and plant closure.
         An adjustment of $8 million was recorded at GME related to
         restructuring  in  Germany,  and an  adjustment  of $201
         million  was  recorded  at  Corporate  and Other  related
         to Delphi items.
    

    
     (F) Relates to favorable curtailment adjustments and reserve
         adjustments related to the Special Attrition Program for GMNA.
    

    
     (G) Relates to the gain on the sale of the commercial and military
         operations of our Allison Transmission business, which was
         completed in August 2007. This gain was recorded as discontinued
         operations.
    

    
     (H) Relates  to  charges  recorded  at GMNA of $95  million  and
         after-tax  charges of $9 million ($13 million pre-tax)  recorded
         at GMAP for product specific assets.
    

    
     (I) Relates to curtailment gains and favorable reserve adjustments
         at GMNA related to the closure of two former component plants.
    


    
     (*) Unless separately specified, pre-tax and after-tax amounts are
       the same.
    



    
                           General Motors Corporation
                        List of Special Items - After-Tax
                 (Dollars in millions except per share amounts)
                                   (Unaudited)
    


    
                                     Three Months Ended    Year to Date
                                     September 30, 2006   September 30, 2006
                                         Restated            Restated
                                    ------------------   --------------------
                                       Net                  Net
                                     Income       EPS      Income      EPS
                                     -------    -------    -------   -------
     REPORTED
     --------
     Loss from
      continuing operations         $ (277)   $ (.49)    $(3,278)  $ (5.80)
     Income from
      discontinued operations          130       .23         350       .62
                                      ----      ----      ------      ----
     Net loss                       $ (147)   $ (.26)    $(2,928)  $ (5.18)
                                      ====      ====       =====      ====
    

    
     ADJUSTMENTS
     -----------
    

    
     GMAC commercial finance
      goodwill impairment (A)       $  695    $ 1.23    $    695   $  1.23
     Delphi (B)                        325       .57         325       .57
     Product impairments (C)           112       .20         309       .55
     Restructuring (D)                  87       .16         428       .76
     Special Attrition Program (E)    (105)     (.19)      3,554      6.28
     Tax related items (F)            (148)     (.26)       (148)     (.26)
     GMAC transaction related (G)     (322)     (.57)        368       .65
     Sale of Suzuki investment (H)       -         -        (395)     (.70)
     Sale of Isuzu investment (I)        -         -        (212)     (.37)
                                      ----      ----       -----      ----
     Total adjustments               $ 644    $ 1.14     $ 4,924    $ 8.71
                                      ====      ====       =====      ====
    

    
     ADJUSTED
     --------
     Income from
      continuing operations          $ 367     $ .65     $ 1,646    $ 2.91
     Income from
      discontinued operations          130       .23         350       .62
                                      ----      ----       -----     -----
     Adjusted Income  - Basic (*)      $ 497     $ .88     $ 1,996    $ 3.53
                                      ====      ====       =====      ====
     Adjusted Income  - Diluted  (*)(*)            $ .88                $ 3.52
                                                ====                  ====
    

    
     (*) Adjusted EPS - Basic for the nine months ended September 30, 2006
     has been changed from $3.56 per share to $3.53 per share to reflect
     a revision to the special item related to the gain on sale of our
     Suzuki investment from $372 million, after-tax, to $395 million,
     after-tax.
    

    (*)(*) See average shares outstanding.



    
                           General Motors Corporation
                        List of Special Items - After-Tax
                                   (Unaudited)
    

    
     (A) During the third quarter, GMAC's commercial finance business
         recognized goodwill and other intangible asset impairment charges
         of $695 million after-tax ($839 million pre-tax). The charge was
         the result of a decision made by management to eliminate certain
         low margin product lines in its commercial finance business.
    

    
     (B) During the third quarter of 2006, GM increased its contingent
         liability associated with the restructuring of Delphi's operations
         by $325 million after-tax ($500 million pre-tax), based on data
         available at that time and ongoing discussions with Delphi and
         other stakeholders. GM established a contingent liability in the
         fourth quarter of 2005 and recorded a charge of $3.6 billion
         after-tax ($5.5 billion pre-tax).
    

    
     (C) GMNA recorded impairment charges related to product specific assets
         and the write-down of plant assets in connection with the planned
         stoppage of production at the Doraville, Georgia assembly plant.
    

    
     (D) Charges during the quarter of $87 million were recognized at GME
         primarily related to the elimination of a shift at the Ellesmere
         Port plant in the U.K. In addition to the third quarter charges,
         year-to-date after-tax charges totaling $428 million include:
    

    
        - $182 million recognized at GME, primarily related to the announced
          closure in December 2006 of the GM assembly plant in Azambuja,
          Portugal, which includes amounts for the write-down to fair market
          value of plant assets, employee separation costs, contract
          cancellation charges, other product-related asset impairments
          and separation charges.
        - Estimated charges of $65 million related to separations of
          salaried employees at GMNA.
        - Curtailment  charges associated with modifications to the U.S.
          Retirement Program for Salaried Employees announced in the first
          quarter of 2006. GMNA and Corporate and Other Operations
          recognized charges of $12 million and $3 million, respectively,
          associated with these modifications.
        - A favorable adjustment of $88 million for higher than anticipated
          headcount reductions associated with previously announced GMNA
          plant idling activities.
        - A charge of $52 million for certain components of the hourly
          attrition program related to retroactive lump-sum payments,
          recognized at GMNA.
        - Other  restructuring  charges of $72 million and $43 million
          recognized at GME and GMLAAM, respectively.
    

    
     (E) Favorable adjustments of $105 million after-tax during the third
         quarter and year-to-date to adjust other personnel related accruals
         as a result of the GMNA hourly attrition plan.
    

    
         In addition to the current quarter charge, year-to-date charges
         relate to the results of the GM-UAW-Delphi Special Attrition
         Program, primarily for payments to employees (approximately $1.4
         billion) and for the curtailment charges associated with GM's U.S.
         hourly pension plan as a result of the attrition program
         (approximately $2.9 billion). The charge also includes a favorable
         revision of the accrual taken in the fourth quarter of 2005 for
         the North American plant capacity actions (approximately $.6
         billion).
    

    
     (F) Primarily reflects the reversal of a deferred tax asset valuation
         allowance at GM Daewoo and residual taxes at Suzuki.
    

    
     (G) In the second quarter of 2006, GM recognized impairment losses on
         GMAC to reflect the net assets held for sale at their net realizable
         value as required by SFAS 144. In the third quarter, GM recognized
         a reversal of losses previously recognized due to the fact that an
         impairment charge was recorded by GMAC's commercial finance business.
         Year-to-date after-tax charges of $368 million represent the sum of
         these two adjustments.
    

    
     (H) Relates to the sale of 92.4 million shares of GM's investment in
         Suzuki for approximately $2 billion in cash, reducing GM's equity
         stake to approximately 3.7% (16.3 million shares). The after-tax
         gain of $395 million was recognized at GMAP.
    

    
     (I) Relates to the sale of GM's entire investment in Isuzu Motors,
         Ltd. for an after-tax gain of $212 million. The gain was recognized
         at GMAP.
    



    
                           General Motors Corporation
                       Summary Corporate Financial Results
                 (Dollars in millions except per share amounts)
                                   (Unaudited)
    

    
                                      Third Quarter        Year to Date
                                  --------------------  -----------------
                                   2007      2006       2007     2006
                                           Restated             Restated
                                 -------   --------   -------   --------
     Total net sales and
      revenue                    $ 43,834  $ 48,892  $ 134,225 $ 154,871
      Adjusted                     43,834    48,892    134,225   154,871
     Income (loss) from
      continuing operations     $ (42,512)   $ (277) $ (41,770) $ (3,278)
      Adjusted                     (1,631)      367       (337)    1,646
     Income from
      discontinued operations        $ 45     $ 130      $ 256     $ 350
      Adjusted                         45       130        256       350
    

    
     Net income (loss)          $ (38,963)   $ (147) $ (38,010) $ (2,928)
      Adjusted                     (1,586)      497        (81)    1,996
     Net margin from
      continuing operations (*)       (96.9)%     (.6)%    (31.1)%    (2.1)%
      Adjusted                       (3.7)%      .8%       (.3)%     1.1%
    

    
     Earnings (loss) per share - basic
      Continuing operations      $ (75.12)   $ (.49)  $ (73.82)  $ (5.80)
      Income from discontinued
        operations                    .08       .23        .45       .62
      Gain on sale of discontinued
        operations                   6.19         -       6.19         -
      Net income (loss)            (68.85)     (.26)    (67.18)    (5.18)
    

    
     Earnings (loss) per share - diluted
      Continuing operations      $ (75.12)   $ (.49)  $ (73.82)  $ (5.80)
      Income from discontinued
        operations                    .08       .23        .45       .62
      Gain on sale of discontinued
        operations                   6.19         -       6.19         -
      Net income (loss)            (68.85)     (.26)    (67.18)    (5.18)
    

    
     Earnings (loss) per share -
      adjusted diluted            $ (2.80)    $ .88     $ (.14)   $ 3.52
    

    
     GM $1-2/3 par value average
      shares outstanding (Millions)
      Basic shares                    566       566        566       566
      Diluted shares (*)(*)               566       567        566       567
    

    
     Cash dividends per share
      of common stocks              $ .25     $ .25      $ .75     $ .75
    


    See reconciliation of adjusted financial results.


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

    
     (*)(*) Due to Loss from continuing operations for all periods presented,
     there is no difference between basic and diluted average shares
     outstanding on a reported basis (GAAP). Accordingly, the average
     number of diluted shares outstanding relates to amounts on an
     adjusted basis (non-GAAP) only, which has been adjusted to reflect
     the dilutive impact of stock options and other contracts to issue
     common stock in periods when adjusted net income is positive.
    



    
                           General Motors Corporation
                       Summary Corporate Financial Results
                                   (Unaudited)
    

    
                                        Third Quarter        Year to Date
                                    --------------------  -----------------
                                     2007      2006       2007     2006
                                             Restated             Restated
                                    ------   --------    -------  --------
     Automotive total cash &
      marketable securities
      at September 30 (Billions)   $ 26.4    $ 17.9
     Readily-available assets
      in VEBA                         3.6       2.5
    

    
     Total Automotive cash
      & marketable securities
      plus readily-available        -----      ----
      assets in VEBA               $ 30.0    $ 20.4
                                    =====      ====
    

    
     Automotive Operations
       (Millions)
      Depreciation                $ 1,237   $ 1,060    $ 3,725   $ 3,220
      Amortization of special
       tools                          744       869      2,327     2,712
      Amortization of intangible
       assets                          16        17         51        52
                                    -----     -----      -----     -----
      Total                       $ 1,997   $ 1,946    $ 6,103   $ 5,984
                                    =====     =====      =====     =====
    

    
     GM's share of nonconsolidated
      affiliates' net income (loss)
      (Millions)
      GMAC  (*)                      $ (809)   $    -    $  (874)   $    -
      Shanghai GM and
        SAIC-GM-Wuling                 73        76        306       233
      Other (*)(*)                         42        26        134       198
                                     ----      ----       ----     -----
                                   $ (694)    $ 102     $ (434)    $ 431
                                     ====      ====       ====      ====
    


    
     (*) GMAC's reported results includes a charge for the quarter and
     year-to-date periods related to a goodwill impairment charge of $455
     million. GM's share of this charge totaled $223 million and was
     included in  GM's reported share of GMAC's net losses above.
    

    
     (*)(*) GM sold most of its investment in Suzuki in the first quarter
     of 2006, and consequently now accounts for its remaining investment
     as an equity security, and no longer records income on the equity basis.
    



    
                           General Motors Corporation
                       Summary Corporate Financial Results
                              (Dollars in millions)
                                   (Unaudited)
    

    
                                        Third Quarter
                                        2007 and 2006
                                   ----------------------
    

    
                         Reported         Special Items   Adjusted
                       ------------      --------------- ----------------
                       2007    2006      2007    2006    2007    2006
                              Restated          Restated        Restated
                     -------  --------  ------- -------- -----  --------
    

    
     Net sales
      and revenue
     GMNA            $ 26,607 $ 26,788  $     -$     - $ 26,607 $ 26,788
     GME                8,722    7,444        -      -    8,722    7,444
     GMLAAM             4,944    3,658        -      -    4,944    3,658
     GMAP               5,446    3,847        -      -    5,446    3,847
     Auto Eliminations
      (a)              (2,613)  (2,085)       -      -   (2,613)  (2,085)
                       ------   ------      ---    ---   ------   ------
      Total GMA        43,106   39,652        -      -   43,106   39,652
     Corporate & Other
      (a)                  28      (40)       -      -       28      (40)
                       ------   ------      ---    ---   ------   ------
     Total Auto &
       Other           43,134   39,612        -      -   43,134   39,612
                      -------   ------      ---    ---   ------   ------
     GMAC                   -    9,282        -      -        -    9,282
     Other Financing
      (a)                 700       (2)       -      -      700       (2)
                      -------   ------      ---    ---   ------   ------
      Total Financing     700    9,280        -      -      700    9,280
                      --------  ------      ---    ---   ------   ------
     Total net sales
      and revenue    $ 43,834 $ 48,892  $     -$     - $ 43,834 $ 48,892
                       ======   ======     ====   ====   ======   ======
    

    
     Income (loss) from
      continuing operations
      before income taxes,
      other equity income and
      minority interests
     GMNA            $ (1,760)  $ (927) $ 1,468   $ 11   $ (292)  $ (916)
     GME                 (406)    (197)     262    123     (144)     (74)
     GMLAAM               375      187        -      -      375      187
     GMAP                 168      (10)       -      -      168      (10)
     Auto Eliminations    (26)       5        -      -      (26)       5
                       ------   ------   ------   ----    -----    -----
      Total GMA        (1,649)    (942)   1,730    134       81     (808)
     Corporate & Other   (999)    (678)     601    500     (398)    (178)
                       ------   ------   ------   ----    -----    -----
     Total Auto &
       Other           (2,648)  (1,620)   2,331    634     (317)    (986)
                       ------   ------   ------   ----    -----    -----
     GMAC                (753)      17        -    839     (753)     856
     Other Financing       63      398        -   (392)      63        6
                        ----- --------   -------------  ------- --------
      Total Financing    (690)     415        -    447     (690)     862
                        ----- --------   -------------  ------- --------
     Total income (loss)
      from continuing
      operations before
      income taxes, other
      equity income and
      minority
      interests      $ (3,338) $(1,205) $ 2,331 $1,081  $(1,007)  $ (124)
                        =====    =====    =====  =====    =====      ===
    

    See footnotes.



    
                           General Motors Corporation
                       Summary Corporate Financial Results
                              (Dollars in millions)
                                   (Unaudited)
    

    
                                          Third Quarter
                                          2007 and 2006
                                     ----------------------
    

    
                           Reported         Special Items   Adjusted
                         ------------      --------------- ----------------
                         2007    2006      2007    2006    2007    2006
                                Restated          Restated        Restated
                       -------  --------  ------- -------- -----  --------
    

    
     Income (loss) from
      continuing operations
     GMNA           $ (38,195)  $ (667) $37,948   $  7   $ (247)  $ (660)
     GME               (2,869)    (126)   2,779     87      (90)     (39)
     GMLAAM               340      183        -      -      340      183
     GMAP                 138      205        -   (148)     138       57
     Auto Eliminations
      (a)                 (19)       4        -      -      (19)       4
                      -------   ------  -------  -----    -----     ----
      Total GMA       (40,605)    (401)  40,727    (54)     122     (455)
     Corporate & Other (1,136)     (25)      31    325   (1,105)     300
                      -------   ------  -------  -----    -----     ----
     Total Auto &
       Other          (41,741)    (426)  40,758    271     (983)    (155)
                      -------   ------  -------  -----    -----     ----
     GMAC                (803)    (173)      46    695     (757)     522
     Other Financing       32      322       77   (322)     109        -
                      -------   ------  -------  -----    -----     ----
      Total Financing    (771)     149      123    373     (648)     522
                      -------   ------  -------  -----    -----    -----
     Total income (loss)
      from continuing
      operations      (42,512)    (277)  40,881    644  (1,631)      367
     Income from
      discontinued
      operations           45      130        -      -      45       130
     Sale of
      discontinued
      operations        3,504        -   (3,504)     -       -         -
                      -------   ------  -------  -----  ------     -----
     Net income
      (loss)        $ (38,963)  $ (147) $37,377  $ 644 $ (1,586)   $ 497
                       ======      ===   ======    ===    =====      ===
    

    
     Income tax expense
      (benefit)
     GMNA            $ 36,429   $ (261)$(36,480)   $ 4    $ (51)  $ (257)
     GME                2,471      (63)  (2,517)    36      (46)     (27)
     GMLAAM                34       (5)       -      -       34       (5)
     GMAP                  48     (260)       -    253       48       (7)
     Auto Eliminations     (9)       1        -      -       (9)       1
                       ------   ------   ------   ----    -----     ----
      Total GMA        38,973     (588) (38,997)   293      (24)    (295)
     Corporate & Other    140     (649)     570    175      710     (474)
                       ------   ------    -----   ----    -----     ----
     Total Auto &
      Other            39,113   (1,237) (38,427)   468      686     (769)
                       ------   ------   ------   ----    -----     ----
     GMAC                  50      184      (46)   144        4      328
     Other Financing       23       76      (77)   (70)     (54)       6
                        -----   ------   ------   ----    -----     ----
      Total Financing      73      260     (123)    74      (50)     334
                        -----   ------   ------   ----    -----     ----
     Income tax expense
      (benefit)      $ 39,186   $ (977)$(38,550) $ 542    $ 636   $ (435)
                       ======     ====   ======   ====     ===       ===
    

    See footnotes.



    
                           General Motors Corporation
                       Summary Corporate Financial Results
                              (Dollars in millions)
                                   (Unaudited)
    


    
                                          Third Quarter
                                          2007 and 2006
                                     ----------------------
    

    
                           Reported         Special Items   Adjusted
                         ------------      --------------- ----------------
                         2007    2006      2007    2006    2007    2006
                                Restated          Restated        Restated
                       -------  --------  ------- -------- -----  --------
    

    
     Effective tax rate
     Total GM         (1,174)%      81%  (1,654)%   50%     (63)%    351%
     GMNA             (2,070)%      28%  (2,485)%   36%      17%      28%
     GME                (609)%      32%    (961)%   29%      32%      37%
     GMAC                 (7)%   1,082%     n.m.    17%     (.5)%     38%
    

    
     Equity income (loss)
      and minority interests,
      net of tax
     GMNA                $ (6)    $ (1)   $   -  $   -     $ (6)    $ (1)
     GME                    8        8        -      -        8        8
     GMLAAM                (1)      (9)       -      -       (1)      (9)
     GMAP (*)                18      (45)       -    105       18       60
     Auto Eliminations     (2)       -        -      -       (2)       -
                          ---       --      ---    ---      ---       --
     Total GMA           $ 17    $ (47)   $   -  $ 105     $ 17     $ 58
                           ==      ===       ==    ===       ==       ==
    


    
     (*) We consolidate GM Daewoo, but exclude through minority interest, the
     profits on the 49% of GM Daewoo that we do not own. On a reported basis,
     this minority interest was $68 million for the third quarter of 2007
     compared to $124 million for the third quarter of 2006.
    

    n.m. = not meaningful



    
                           General Motors Corporation
                       Summary Corporate Financial Results
                              (Dollars in millions)
                                   (Unaudited)
    


    
                                          Third Quarter
                                          2007 and 2006
    

    
                           Reported         Special Items   Adjusted
                         ------------      --------------- ----------------
                         2007    2006      2007    2006    2007    2006
                                Restated          Restated        Restated
                       -------  --------  ------- -------- -----  --------
    

    
     Net sales
      and revenue
     GMNA            $ 84,327 $ 88,137  $     -  $   - $ 84,327 $ 88,137
     GME               26,820   24,280        -      -   26,820   24,280
     GMLAAM            12,854   10,652        -      -   12,854   10,652
     GMAP              15,469   11,030        -      -   15,469   11,030
     Auto
      Eliminations (a) (7,848)  (6,303)       -      -   (7,848)  (6,303)
                      -------  -------      ---   ----  -------  -------
      Total GMA       131,622  127,796        -      -  131,622  127,796
     Corporate &
      Other (a)            73     (139)       -      -       73     (139)
                      ------- --------      ---   ----  -------  -------
     Total Auto &
      Other           131,695  127,657        -      -  131,695  127,657
                      ------- --------      ---   ----  -------  -------
     GMAC                   -   27,143        -      -        -   27,143
     Other Financing
      (a)               2,530       71        -      -    2,530       71
                      ------- --------      ---   ----  -------  -------
     Total Financing    2,530   27,214        -      -    2,530   27,214
                      ------- --------      ---   ----  -------  -------
     Total net sales
      and revenue   $ 134,225 $154,871  $     -  $   - $134,225 $154,871
                      =======  =======     ====   ====  =======  =======
    

    
     Income (loss) from
      continuing operations
      before income taxes,
      other equity income and
      minority interests
     GMNA            $ (2,069) $(7,580) $ 1,587 $6,006  $ (482)  $(1,574)
     GME                  (92)    (159)     349    512      257      353
     GMLAAM               925      453        -     43      925      496
     GMAP                 544    1,063       63   (977)     607       86
     Auto Eliminations
      (a)                 (35)      (2)       -      -      (35)      (2)
                      -------   ------  -------  -----  -------  -------
      Total GMA          (727)  (6,225)   1,999  5,584    1,272     (641)
     Corporate &
      Other            (1,787)  (1,615)   1,176    504     (611)  (1,111)
                      -------   ------  -------  -----  -------  -------
     Total Auto &
      Other            (2,514)  (7,840)   3,175  6,088      661   (1,752)
                      -------   ------  -------  -----  -------  -------
     GMAC                (733)   1,875        -    839     (733)   2,714
     Other Financing      203      (29)       -     41      203       12
                      -------   ------  -------  -----  -------  -------
      Total Financing    (530)   1,846        -    880     (530)   2,726
                      -------   ------  -------  -----  -------  -------
     Total income (loss)
      from continuing
      operations before
      income taxes, other
      equity income and
      minority
      interests      $ (3,044) $(5,994) $ 3,175 $6,968    $ 131    $ 974
                         ====    =====    =====  =====     ====    =====
    

    See footnotes.



    
                           General Motors Corporation
                       Summary Corporate Financial Results
                              (Dollars in millions)
                                   (Unaudited)
    

    
                                          Year to Date
                                          2007 and 2006
                                     ----------------------
    

    
                         Reported         Special Items     Adjusted
                       ------------      ---------------  ----------------
                       2007    2006      2007    2006     2007    2006
                              Restated          Restated         Restated
                     -------  --------  ------- --------  -----  --------
    

    
     Income (loss) from
      continuing operations
     GMNA            $(38,416) $(5,018) $38,026 $3,904    $(390) $(1,114)
     GME               (2,647)    (106)   2,835    341      188      235
     GMLAAM               754      362        -     43      754      405
     GMAP                 481    1,073       44   (755)     525      318
     Auto
      Eliminations (a)    (23)      (1)       -      -      (23)      (1)
                       ------   ------   ------  -----   ------    -----
      Total GMA       (39,851)  (3,690)  40,905  3,533    1,054     (157)
     Corporate & Other (1,258)    (333)     405    328     (853)      (5)
                       ------   ------   ------  -----   ------    -----
     Total Auto &
       Other          (41,109)  (4,023)  41,310  3,861      201     (162)
                       ------   ------   ------  -----   ------    -----
     GMAC                (779)   1,109       46    695     (733)   1,804
     Other Financing      118     (364)      77    368      195        4
                       ------   ------   ------  -----   ------    -----
      Total Financing    (661)     745      123  1,063     (538)   1,808
                       ------   ------   ------  -----   ------    -----
     Total income (loss)
      from continuing
      operations      (41,770)  (3,278)  41,433  4,924     (337)   1,646
     Income from
      discontinued
      operations          256      350        -      -      256      350
     Sale of
      discontinued
      operations        3,504        -   (3,504)     -        -        -
                       ------   ------   ------  -----   ------    -----
     Net income
      (loss)        $ (38,010) $(2,928)$ 37,929 $4,924    $ (81) $ 1,996
                        =====   ======   ======  =====    =====    =====
    

    
     Income tax expense
      (benefit)
     GMNA            $ 36,354  $(2,486)$(36,439)$2,102    $ (85)  $ (384)
     GME                2,568      (37)  (2,486)   171       82      134
     GMLAAM               170       80        -      -      170       80
     GMAP                 128       96       19   (117)     147      (21)
     Auto Eliminations    (12)      (1)       -      -      (12)      (1)
                       ------   ------   ------  -----   ------    -----
      Total GMA        39,208   (2,348) (38,906) 2,156      302     (192)
     Corporate & Other   (526)  (1,277)     771    176      245   (1,101)
                       ------   ------   ------  -----   ------    -----
     Total Auto &
       Other           38,682   (3,625) (38,135) 2,332      547   (1,293)
                       ------   ------   ------  -----   ------    -----
     GMAC                  46      767      (46)   144        -      911
     Other Financing       77      335      (77)  (327)       -        8
                       ------   ------   ------  -----   ------    -----
      Total Financing     123    1,102     (123)  (183)       -      919
                       ------   ------   ------  -----   ------    -----
     Income tax expense
      (benefit)      $ 38,805 $ (2,523)$(38,258)$2,149    $ 547   $ (374)
                       ======   ======   ======  =====     ====    =====
    

    See footnotes.



    
                           General Motors Corporation
                       Summary Corporate Financial Results
                              (Dollars in millions)
                                   (Unaudited)
    

    
                                          Year to Date
                                          2007 and 2006
                                     ----------------------
    

    
                           Reported         Special Items   Adjusted
                         ------------      --------------- ----------------
                         2007    2006      2007    2006    2007    2006
                                Restated          Restated        Restated
                       -------  --------  ------- -------- -----  --------
    


    
     Effective tax rate
     Total GM          (1,275)%     42%  (1,205)%   31%     418%     (38)%
     GMNA              (1,757)%     33%  (2,296)%   35%      18%      24%
     GME               (2,791)%     23%    (712)%   33%      32%      38%
     GMAC                  (6)%     41%     n.m.    17%       -       34%
    

    
     Equity income (loss)
      and minority interests,
      net of tax
     GMNA                $  7     $ 76    $   -  $   -     $  7     $ 76
     GME                   13       16        -      -       13       16
     GMLAAM                (1)     (11)       -      -       (1)     (11)
     GMAP (*)                65      106        -    105       65      211
                          ---     ----      ---    ---      ---      ---
     Total GMA           $ 84    $ 187    $   -  $ 105     $ 84    $ 292
                          ===     ====      ===    ===      ===     ====
    


    
     (*) We consolidate GM Daewoo, but exclude, through minority interest, the
     profits on the 49% of GM Daewoo that we do not own. On a reported basis,
     this minority interest was $270 million for the nine months year-to-date
     2007 compared to $173 million for the nine months year-to-date 2006.
    

    n.m. = not meaningful




    
                           General Motors Corporation
                              Operating Statistics
                                   (Unaudited)
    

    
                                       Third Quarter       Year to Date
                                    ------------------  ----------------
                                    2007       2006      2007      2006
     (Units in thousands)          -----     -------    ------    ------
    

    
     Worldwide Production Volume:
      GMNA - Cars                    367        417      1,168    1,375
      GMNA - Trucks                  653        633      2,057    2,167
                                   -----      -----     ------    -----
        Total GMNA                 1,020      1,050      3,225    3,542
      GME                            396        374      1,371    1,363
      GMLAAM                         251        215        706      615
      GMAP (*)                         489        433      1,604    1,387
                                   -----      -----     ------    -----
        Total Worldwide            2,156      2,072      6,906    6,907
                                   =====      =====     ======     ====
    

    
     Vehicle Unit Deliveries:
      Chevrolet - Cars               190        216        595      638
      Chevrolet - Trucks             416        430      1,153    1,240
      Pontiac                        101        118        277      322
      GMC                            140        129        381      363
      Buick                           54         66        144      191
      Saturn                          62         65        188      168
      Cadillac                        57         59        155      170
      Other                           27         34         77       92
                                   -----      -----     ------    -----
        Total United States        1,047      1,117      2,970    3,184
      Canada, Mexico, and Other      159        168        492      514
                                   -----      -----     ------    -----
        Total GMNA                 1,206      1,285      3,462    3,698
      GME                            524        457      1,652    1,529
      GMLAAM                         329        270        894      746
      GMAP (*)                         328        283      1,054      920
                                   -----      -----     ------    -----
        Total Worldwide (*)(*)         2,387      2,295      7,061    6,893
                                   =====      =====      =====    =====
     Market Share:
      United States - Cars          20.4%      21.8%      19.6%    20.8%
      United States - Trucks        29.1%      27.9%      27.0%    27.4%
        Total United States         25.1%      25.1%      23.6%    24.3%
      Total GMNA                    24.3%      24.5%      23.2%    24.0%
      Total GME                      9.5%       9.0%       9.5%     9.2%
      Total GMLAAM                  17.5%      17.1%      17.1%    16.6%
      Total GMAP                     6.5%       6.2%       6.8%     6.4%
        Total Worldwide             13.7%      13.9%      13.3%    13.6%
    

    
     U.S. Retail/Fleet Mix
        % Fleet Sales - Cars        38.1%      33.9%      36.0%    36.1%
        % Fleet Sales - Trucks      21.6%      17.3%      20.8%    21.3%
         Total Vehicles             27.8%      24.0%      26.7%    27.2%
    

    GMNA Capacity Utilization (*)(*)(*)  84.1%      84.1%      89.0%    94.3%


    
     (*)   GMAP production and sales volume includes SAIC-GM Wuling Automobile
         Co. Ltd. joint venture vehicles.
    

    (*)(*)  Total Worldwide may include rounding differences.

    (*)(*)(*) Two shift rated, annualized.



    
                           General Motors Corporation
                              Operating Statistics
                                   (Unaudited)
    

    
                                     Third Quarter        Year to Date
                                  -------------------  --------------------
                                   2007       2006      2007      2006
                                  ------     -------   ------    -------
    

    
     GMAC's Worldwide Cost of
      Borrowing (b)                6.51%       6.31%     6.30%     5.84%
    

    
     GMAC Period End Debt Spreads
      Over U. S. Treasuries
         2 Year                     278 bp      200 bp   278 bp     200 bp
         5 Year                     421 bp      250 bp   421 bp     250 bp
        10 Year                     478 bp      290 bp   478 bp     290 bp
    

    
     GMAC Automotive Finance
      Operations Consumer
        Credit (North America)
      Net charge-offs as a % of
        managed receivables        1.20%       1.19%     1.17%     1.15%
      Retail contracts 30 days
        delinquent - % of average
        number of contracts
        outstanding (c)            2.54%       2.42%     2.33%     2.21%
    

    
     Share of GM retail sales
      (U.S. only)
     Total consumer volume (retail
      and lease) as % of retail      27%         45%      27%       33%
     SmartLease as % of retail       18%         17%      19%       19%
    

    
     Worldwide Employment
      at September 30 (Thousands)
      United States Hourly (d)       78          92
      United States Salary (d)       32          33
                                  -----       -----
        Total United States         110         125
      Canada, Mexico, and Other      29          31
                                  -----       -----
      GMNA                          139         156
      GME                            58          62
      GMLAAM                         34          32
      GMAP                           34          34
      GMAC                            -          31
      Other                           2           3
                                  -----       -----
        Total United States         267         318
                                  =====       =====
    

    
     Worldwide Payrolls
      (Billions)                  $ 4.5       $ 5.9    $ 13.3    $ 16.5
    

    Footnotes:

    
     (a)Auto Eliminations, Corporate & Other and Other Financing include
        intercompany eliminations.
    

    
     (b)Calculated by dividing total interest expense (excluding mark to
        market adjustments) by total debt.
    

    (c)Excludes accounts in bankruptcy.

    
     (d)Approximately 2,400 hourly and 1,100 salary employees are excluded
        from 2007 data due to the sale of Allison Transmission.
    



    GENERAL MOTORS CORPORATION AND SUBSIDIARIES

    
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                 (Dollars in millions, except per share amounts)
                                   (Unaudited)
    

    
                                      Three Months Ended  Nine Months Ended
                                      ------------------  -----------------
                                         September 30,     September 30,
                                      ------------------  -----------------
                                       2007      2006      2007     2006
                                      ------   -------    ------   -------
                                                 (As                (As
                                               restated)          restated)
    Net sales and revenue
     Automotive sales                $43,134   $39,612  $131,695  $127,657
     Financial services and
      insurance revenue                  700     9,280     2,530    27,214
                                     -------   -------  --------  --------
    Total net sales and revenue       43,834    48,892   134,225   154,871
                                     -------   -------  --------  --------
    Costs and expenses
     Automotive cost of sales         41,540    37,184   122,210   124,598
     Selling, general and
      administrative expense           3,601     3,155    10,205     9,740
     Financial services and insurance
      expense                            640     7,596     2,334    23,608
     Other expenses                      350     1,943       925     3,151
                                     -------   -------  --------  --------
    Total costs and expenses          46,131    49,878   135,674   161,097
                                     -------   -------  --------  --------
     Operating loss                   (2,297)     (986)   (1,449)   (6,226)
    Equity in loss of GMAC LLC          (809)       --      (874)       --
    Automotive and other interest
     expense                            (776)     (529)   (2,256)   (1,861)
    Automotive interest income and
     other non-operating income          544       310     1,535     2,093
    
    -------   -------  --------  --------    Loss from continuing operations
    
     before income taxes, other equity
     income and minority interests    (3,338)   (1,205)   (3,044)   (5,994)
    Income tax expense (benefit)      39,186      (977)   38,805    (2,523)
    Equity income (loss) and minority
     interests, net of tax                12       (49)       79       193
                                     -------   -------  --------  --------
     Loss from continuing operations (42,512)     (277)  (41,770)   (3,278)
    Discontinued Operations
     Income from discontinued
     operations, net of tax               45       130       256       350
     Gain on sale of discontinued
     operations, net of tax            3,504        --     3,504        --
                                     -------   -------  --------  --------
     Income from discontinued
      operations                       3,549       130     3,760       350
                                     -------   -------  --------  --------
     Net loss                       $(38,963)    $(147) $(38,010)  $(2,928)
                                     =======   =======  ========  ========
    Basic earnings (loss) per share:
     Continuing operations           $(75.12)    $(.49)  $(73.82)   $(5.80)
     Discontinued operations            6.27       .23      6.64       .62
                                     -------   -------  --------  --------
    Total                            $(68.85)    $(.26)  $(67.18)   $(5.18)
                                     =======   =======  ========  ========
    Weighted average common shares
     outstanding, basic (millions)       566       566       566       566
                                     =======   =======  ========  ========
    Diluted earnings (loss) per share:
     Continuing operations           $(75.12)    $(.49)  $(73.82)   $(5.80)
     Discontinued operations            6.27       .23      6.64       .62
                                     -------   -------  --------- ----------
    Total                            $(68.85)    $(.26)  $(67.18)   $(5.18)
                                     =======   =======  ========  ========
    Weighted average common shares
     outstanding, diluted (millions)     566       566       566       566
                                     =======   =======  ========  ========
    Cash dividends per share            $.25      $.25      $.75      $.75
                                     =======   =======  ========  ========
    



    GENERAL MOTORS CORPORATION AND SUBSIDIARIES

    
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                              (Dollars in millions)
                                   (Unaudited)
    

    
                                   September 30, December 31, September 30,
                                        2007         2006        2006
                                   ------------  ------------ -------------
                                                     (As          (As
                                                   restated     restated)
    

    
                                  ASSETS
     Current Assets
     Cash and cash equivalents         $24,402      $23,774     $17,802
     Marketable securities               1,978          138         107
                                     ---------     --------    --------
     Total cash and marketable
      securities                        26,380       23,912      17,909
     Accounts and notes receivable,
      net                               10,728        8,216       6,855
     Inventories                        15,530       13,921      14,822
     Equipment on operating leases,
      net                                5,572        6,125       6,569
     Deferred income taxes and other
      current assets                     2,204       11,957      10,813
                                     ---------   ----------  ----------
     Total current assets               60,414       64,131      56,968
     Financing and Insurance Operations
      Assets
     Cash and cash equivalents             328          349       3,089
     Assets held for sale                   --           --     282,847
     Equipment on operating leases,
      net                                7,856       11,794      13,325
     Investment in GMAC LLC              6,852        7,523          --
     Other assets                        4,119        2,457       1,827
                                     ---------     --------    --------
     Total Financing and Insurance
      Operations Assets                 19,155       22,123     301,088
     Non-Current Assets
     Property, net                      42,264       41,934      38,959
     Deferred income taxes                 975       33,079      24,972
     Prepaid pension                    18,920       17,366      37,691
     Other assets                        7,772        7,671       8,357
                                     ---------     --------    --------
     Total non-current assets           69,931      100,050     109,979
                                     ---------     --------    --------
     Total Assets                     $149,500     $186,304    $468,035
                                     =========     ========    ========
    

    
           LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
     Current Liabilities
     Accounts payable (principally
      trade)                           $30,514      $26,931     $27,318
     Short-term borrowings and current
      portion of long-term debt          5,263        5,666       1,436
     Accrued expenses                   34,619       35,225      40,235
                                     ---------    ---------   ---------
     Total current liabilities          70,396       67,822      68,989
     Financing and Insurance Operations
      Liabilities
     Liabilities related to assets held
      for sale                              --           --     272,869
     Debt                                5,962        9,438      10,073
     Other liabilities and deferred
      income taxes                       1,666        2,139       2,243
                                     ---------     --------    --------
     Total Financing and Insurance
      Operations Liabilities             7,628       11,577     285,185
     Non-Current Liabilities
     Long-term debt                     34,670       33,067      33,118
     Postretirement benefits other than
      pensions                          48,336       50,409      34,534
     Pensions                           12,214       11,934      15,937
     Other liabilities and deferred
      income taxes                      16,327       15,957      17,714
                                     ---------     --------    --------
     Total non-current liabilities     111,547      111,367     101,303
                                     ---------     --------    --------
     Total liabilities                 189,571      190,766     455,477
     Minority interests                  1,700        1,190       1,210
     Stockholders' Equity (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 565,877,391 shares
      issued and outstanding at
      September 30, 2007, respectively,
      756,637,541 and 565,670,254 shares
      issued and outstanding at
      December 31, 2006,
      respectively, and 756,637,541
      and 565,611,157 shares issued and
      outstanding at September
      30, 2006, respectively)              943          943         943
     Capital surplus (principally
      additional paid-in capital)       15,264       15,336      15,316
     Retained earnings (deficit)       (38,528)         195        (616)
     Accumulated other comprehensive
      loss                             (19,450)     (22,126)     (4,295)
                                       -------      -------     -------
     Total stockholders' equity
      (deficit)                        (41,771)      (5,652)     11,348
                                       -------      -------     -------
     Total Liabilities, Minority
      Interests and Stockholders'
      Equity (Deficit)                $149,500     $186,304    $468,035
                                       =======      =======     =======
    




For further information:

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

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