GM Reports Preliminary Q1 Financial Results

* Reported Net Loss $323 Million, About $1 Billion Improvement From 2005  * Record Quarterly Revenue of $52.2 Billion  * $567 Million GMNA Improvement Despite $484 Million Health-Care Charge  * Automotive Liquidity Stronger at $21.6 Billion  DETROIT, April 20 /PRNewswire/ -- General Motors Corp. (NYSE: GM) today reported significantly improved financial results for the first quarter of 2006, with operations from every automotive region in the world contributing to the turnaround efforts.  "The first quarter represented an important milestone in GM and GM North America's turnaround," said GM Chairman and Chief Executive Officer Rick Wagoner.  "Not only did we see significant improvement in the financial results of all our automotive units, we also announced numerous additional actions to improve our North American competitiveness and liquidity.  And, we made significant progress in implementing those and previously announced initiatives, such as the UAW health-care agreement and the North American capacity plan.  "We're pleased to see the significant progress in our first-quarter results and in the implementation of all four elements of our North American turnaround plan," Wagoner continued.  "And we remain focused on accelerating our return to profitability and cash generation."  GM reported a preliminary net loss of $323 million, or $0.57 per share, in the first quarter of 2006, including special items.  This was more than accounted for by the inclusion of a $681 million after-tax charge, or $1.20 per share, related to the recently approved health-care settlement agreement for U.S. hourly retirees.  These first-quarter results represent a significant improvement from the year-ago loss of $1.3 billion, or $2.22 per share. Reported revenue rose 14.1 percent to a record $52.2 billion in the first quarter of 2006.  Excluding special items but including the effect of the $681 million health-care charge ($1 billion pretax), GM reported a preliminary adjusted loss of $529 million, or $0.94 per share in the first quarter of 2006.  In the year-ago quarter, GM reported an adjusted loss before special items of $988 million, or $1.75 per share.  The reported results for the first quarter of 2006 include special items totaling a favorable $206 million after tax, or $0.37 per diluted share. These results include a gain of $317 million, or $0.56 per share, from the sale of most of GM's stake in Suzuki, partially offset by restructuring charges totaling $111 million, or $0.19 per share, at GM North America (GMNA), GM Europe (GME) and GM Latin America/Africa/Middle East (GMLAAM).  Additional details on the special items are included in the "Highlights" section of this press release.  GM's results for the first quarter of 2006 are preliminary and may be revised prior to the filing of GM's first quarter report on Form 10-Q in early May, depending on factors such as the final determination of the accounting treatment for the retiree health-care settlement agreement.  Health Care Agreement to Reduce Liability by $15 billion  The unprecedented health-care settlement between GM and its largest labor union, the United Auto Workers, was approved by the U.S. District Court on March 31, 2006.  "The health-care agreement is expected to result in an immediate 25-percent reduction in GM's hourly retiree health-care liability, or about $15 billion," Wagoner said.  "The court approval is an important milestone, enabling us to implement this on the schedule we had anticipated."  As part of the agreement, GM will make contributions to a new independent Defined Contribution Voluntary Employees' Beneficiary Association (DC VEBA) of $1 billion in each of 2006, 2007, and 2011.  GM will also make supplemental contributions to the DC VEBA related to events like profit-sharing payments and increases in the value of GM stock.  Because the settlement received final court approval on March 31, the first $1 billion DC VEBA contribution is being recorded in the first quarter of 2006 even though the cost savings will not be realized until the second half of the year.  Beginning July 1, the pretax savings associated with the health-care agreement will be approximately $750 million per quarter through 2011.  According to the accounting treatment that GM believes is appropriate under U.S. Generally Accepted Accounting Principles, the obligation to make the contributions would be recognized in each of the three periods in which they become due and payable.  Other possible accounting treatments include recognizing the present value of all three payments as expense on March 31, 2006, which would significantly increase the amount of the first-quarter charge and eliminate any future charges.  GM is currently in discussions with the U.S. Securities and Exchange Commission to determine the final accounting treatment and expects the issue to be resolved before it files its Form 10-Q.  GM financial results described throughout the remainder of this release exclude special items unless otherwise noted (see "Highlights").  GM Automotive Operations  GM's automotive operations reported an adjusted loss of $721 million in 2006, including the health-care charge, halving the year-ago adjusted loss of $1.5 billion.  All of the company's automotive units reported progress in the quarter, with three out of the four units posting profitable results.  Global automotive sales rose 4.4 percent to 2.2 million units as strong sales in GM's Asia Pacific and Latin American regions were partially offset by declines in the United States and Canada.  Global market share was down slightly to 13.2 percent from 13.3 percent a year ago.  GM North America Shows Improvement  GM North America reported an adjusted loss of $946 million in the first quarter of 2006, including $484 million of the retiree health-care settlement charge.  This compares to an adjusted loss of $1.5 billion a year ago.  Higher production volumes, improved mix and better net pricing contributed $1.1 billion of improvement to GMNA operating earnings, offset in part by the health-care charge.  Revenue per unit sold in GMNA was significantly higher in the quarter versus a year ago, mostly attributable to better pricing and richer mix.  U.S. dealer inventories ended the quarter at 1,169,000 vehicles, down 74,000 units from the year-ago period, and well positioned for the spring selling season.  GM recently increased its structural cost reduction target in North America by more than $1 billion, to $7.5 billion on a running rate basis by the end of 2006, excluding the cost of the three $1 billion DC VEBA contributions in 2006, 2007 and 2011.  Approximately $4 billion of this reduction will be cash savings.  GM also continues to focus on achieving the previously reported $1 billion target of material cost savings in 2006, which is under pressure due to high raw material and commodity prices.  GM remains committed to revitalizing its product portfolio through an aggressive product spending program.  In 2006, GM expects capital spending to total approximately $8.7 billion.  This represents an increase of approximately $800 million over 2005 levels.  "We are very pleased with the market's reaction to our launch products," Wagoner said.  "In the first three months of the year, our new products accounted for about 30 percent of our total sales -- more than double where we were a couple of years ago.  We're especially encouraged by the early sales of the Chevrolet Tahoe, GMC Yukon, and Cadillac Escalade.  And we're pleased with the reaction last week to the new Saturn Sky and Aura at the New York Auto Show."  GM is revitalizing its sales and marketing strategy by focusing on the strength of its products, emphasizing their great value and features in relation to the competition.  GM is focused on improving the mix and quality of its share by reducing incentives and the volume of sales to daily rental car companies.  While this may result in short-term declines in sales and market share, it also is expected to result in improved retail sales and financial performance over time.  "Despite even higher incentives by many of our competitors, we think our new product-focused marketing strategy is the right one, and early results are in line with our expectations," Wagoner said.  GM Europe Posts Profitable Quarter  GM Europe reported adjusted earnings of $88 million in the first quarter of 2006, a significant improvement from the year-ago loss of $92 million, reflecting improved pricing, continued progress in reducing structural and material costs, better mix and lower warranty and policy costs.  In addition, Saab showed significant financial improvement and sold more than 34,000 vehicles worldwide, an all-time first-quarter record.  "Our European turnaround plan moved into high gear in the first quarter," Wagoner said.  "Looking forward, we'll continue to focus on that, as well as growing our multi-brand strategy in Europe and on important vehicle launches. The Cadillac BLS is arriving in dealerships now, followed by the Chevrolet Epica in June and the Opel Corsa and Chevrolet Captiva in the third quarter."  GM Asia Pacific Reports Improved Results  GM Asia Pacific (GMAP) reported adjusted earnings of $81 million in the first quarter of 2006, up from $70 million a year ago, reflecting improved sales volumes in China and higher sales volumes from GM Daewoo.  "Asia Pacific continues to be a very positive story for GM," Wagoner said. "GM vehicle sales in China were up 76 percent during the quarter, and our steady commitment to expanding our product line-up continues to pay dividends. Likewise, our investment in GM Daewoo continues to pay returns, with domestic sales and export shipments rising 60 percent in the first quarter."  GM Latin America/Africa/Middle East  GM Latin America/Africa/Middle East reported adjusted earnings of $56 million in the first quarter of 2006, up from $31 million in the same period last year.  This reflects a significant improvement in Brazil.  "GM continues to set sales and market share records in the Latin America/Africa/Middle East region," Wagoner said.  "In the first quarter, LAAM achieved an all-time first quarter sales record of 230,100 units, up 26 percent from the year-ago period.  Of the 11 major markets in the region, four set all-time quarterly GM sales records and another four set first-quarter sales records."  GMAC  General Motors Acceptance Corporation (GMAC) earned $605 million in the first quarter of 2006, compared to $728 million in the year-ago period, reflecting improved earnings from financing operations and insurance, offset by lower mortgage earnings.  "GMAC continued to post strong earnings despite lower credit ratings and higher borrowing costs," Wagoner said.  "The agreement that we announced earlier this month to sell a 51-percent controlling interest in GMAC to a consortium of investors led by Cerberus Capital Management is expected to close later this year.  Once implemented, the new ownership structure should strengthen GMAC's ability to support GM's automotive operations, improve GMAC's access to cost-effective funding and provide $14 billion in liquidity to GM over the next three years."  GMAC had cash reserve balances at March 31, 2006 of approximately $22.1 billion, including $17.3 billion in cash and cash equivalents and $4.8 billion in marketable securities.  This compares with cash balances of approximately $20 billion at Dec. 31, 2005.  GMAC's financing operations reported earnings of $270 million in the first quarter of 2006, compared to $216 million a year ago.  The increase is largely due to the effect of lower consumer credit provisions, primarily as a result of automotive whole loan activity and favorable international credit performance.  ResCap earnings were $197 million in the first quarter 2006, down from the $351 million earned in the year-ago period.  While revenues were strong from higher asset levels, results were negatively affected by lower net margins resulting from both pricing pressures and higher funding costs.  In addition, gains on sales of loans were down due to a significant gain in the year-ago quarter from the sale of a portfolio of distressed mortgage loans.  Mortgage originations were $41.6 billion for the latest quarter, representing an increase from the $36.4 billion in the year-ago period.  GMAC completed the sale of approximately 78 percent of its equity in GMAC Commercial Mortgage on March 23, 2006, for approximately $1.5 billion in cash. At the closing, GMAC Commercial Mortgage, now named CapMark Financial Group Inc., also repaid to GMAC approximately $7.3 billion in intercompany loans, bringing the total cash proceeds from the transaction to $8.8 billion.  GMAC earnings related to Commercial Mortgage were $9 million, representing operating income of $50 million and a loss on sale of $41 million, after closing costs.  GMAC's insurance operations generated net income of $129 million in the first quarter of 2006, up from $94 million in the same period a year ago primarily reflecting the impact of strong underwriting results.  In addition, first quarter results also benefited from the strategic acquisition of MEEMIC Insurance Co., a personal lines business that offers automobile and homeowners insurance in the Midwest.  Cash and Liquidity  Cash, marketable securities, and readily-available assets of the Voluntary Employees' Beneficiary Association (VEBA) trust totaled $21.6 billion at March 31, 2006, up from $20.4 billion on Dec. 31, 2005 and $19.8 billion on March 31, 2005.  GM withdrew approximately $2 billion from the VEBA trust in the first quarter of 2006, including $1 billion from the short-term VEBA.  Liquidity remains a key focus of the corporation.  GM sold most of its 20-percent stake in Suzuki during the first quarter, generating approximately $2 billion in cash.  Also, GM recently announced the sale of its stake in Isuzu which generated approximately $300 million in proceeds in the second quarter of 2006.  In February, GM reduced its common stock dividend by 50 percent, which is expected to save approximately $565 million annually. Finally, the planned sale of 51-percent of GMAC is expected to provide GM with up-front cash proceeds of about $10 billion and significant ongoing cash flow from retained assets and GMAC distributions over time.  Outlook  GM has made significant progress to turn around its North American operations, including the UAW retiree health-care agreement, the manufacturing capacity actions, the changes to GM's U.S. salaried retiree health-care benefits and salaried pension plan benefits and the hourly accelerated attrition program.  "While we are encouraged by the speed and scale of the changes we're implementing, there is clearly more work to be done," Wagoner said.  "Our next key priority is to reach a consensual agreement with Delphi and its unions that makes sense for all of the parties.  The agreement we recently reached with the UAW on the attrition program is a significant step in achieving this objective, but there is more important work to do."  Forward-Looking Statements  In this press release and in related comments by General Motors' and General Motors Acceptance Corporation's management, the use of the words "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.  Other than statements of historical fact, all statements in this press release and in related comments, including without limitation, statements about future events and financial performance, are forward-looking statements that involve certain risks and uncertainties.  While these statements represent our current judgment on possible future events, and we believe that when we made these judgments they were reasonable, these statements are not guarantees of any events or financial results, and GM's actual results may differ materially due to numerous important factors that may be revised or supplemented in subsequent reports on SEC Forms 10-Q and 8-K.  Such factors include, among others, the following: the ability of GM to realize production efficiencies, to achieve reductions in costs as a result of the turnaround restructuring, health care cost reductions and an accelerated attrition program and to implement capital expenditures at levels and times planned by management; the pace of product introductions; market acceptance of the Corporation's new products; significant changes in the competitive environment and the effect of competition in the Corporation's markets, including on GM's pricing policies; our ability to maintain adequate liquidity and financing sources and an appropriate level of debt; restrictions on GMAC's and ResCap's ability to pay dividends and prepay subordinated debt obligations to us; 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; changes in our 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; changes in relations with unions and employees/retirees and the legal interpretations of the agreements with those unions with regard to employees/retirees; 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; additional credit rating downgrades and the effects thereof; our ability to complete the sale of a 51-percent controlling interest in GMAC and the effect of that sale on the results of GM's and GMAC's operations and liquidity; other factors affecting financing and insurance operating segments' results of operations and financial condition such as credit ratings, adequate access to the market, changes in the residual value of off-lease vehicles, changes in U.S. government-sponsored mortgage programs or disruptions in the markets in which its mortgage subsidiaries operate, and changes in its contractual servicing rights; shortages of and price increases for fuel; and changes in economic conditions, commodity prices, currency exchange rates or political stability in the markets in which we operate.  In addition, GMAC's actual results may differ materially due to numerous important factors that are described in GMAC's most recent report on SEC Form 10-K, which may be revised or supplemented in subsequent reports on SEC Forms 10-Q and 8-K.  Such factors include, among others, the following: the ability of GM to complete the sale of a 51-percent controlling interest in GMAC; significant changes in the competitive environment and the effect of competition in GMAC's and GM's markets, including on GMAC's and GM's pricing policies; GMAC's ability to maintain adequate financing sources and an appropriate level of debt; the profitability and financial condition of GM, including changes in production or sales of GM vehicles, risks based on GM's contingent benefit guarantees and the possibility of labor strikes or work stoppages at GM or at key suppliers such as Delphi; funding obligations under GM and its subsidiaries' qualified U.S. defined benefits pension plans; restrictions on ResCap's ability 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; costs and risks associated with litigation; changes in GMAC's accounting assumptions that may require or that result from changes in the accounting rules or their application, which could result in an impact on earnings; changes in the credit ratings of GMAC or GM; the threat of natural calamities; changes in economic conditions, currency exchange rates or political stability in the markets in which we operate; and changes in the existing, or the adoption of new, laws, regulations, policies or other activities of governments, agencies and similar organizations.  Investors are cautioned not to place undue reliance on forward-looking statements.  GM undertakes no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events or other such factors that affect the subject of these statements, except where expressly required by law.                               General Motors Corporation                                Non-GAAP Disclosure      GM includes the use of non-GAAP adjusted net income (loss) in its      earnings releases and charts for securities analysts.  GM management      evaluates its business and makes certain operating decisions (e.g.,      budgeting, forecasting, employee compensation, asset management      and resource allocation) using adjusted net income.  Management      believes that because this measure provides it with useful      supplemental information for evaluating and operating the business,      investors would find it beneficial to have the opportunity to view      the business in the same manner. Adjusted net income is a measure      that focuses on the Corporation's core business operations and      facilitates comparison of those businesses from period to      period on a consistent basis.  Management also believes it is      appropriate in evaluating the Corporation's operations to exclude      restructuring charges and any gain or losses from one-time items      because these costs vary in size and frequency among the four      geographic regions, since inclusion of these events would make      results less comparable between periods and between regions.      GM also includes the use of 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      our core business, before funding non-operating-related obligations      including debt maturities, dividends and other non-operating items.      GM's earnings releases and charts for securities analysts also      include the use of non-GAAP measures of revenue per vehicle and      the GM North American structural cost reduction target.  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 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 or the GM credit card.  Management also      includes sales to daily car rental companies in revenue per vehicle,      although they are excluded from GAAP reporting because of GM's      repurchase obligations.  GM North America's structural cost      reduction target excludes the cost of the three $1 billion DC VEBA      contributions in 2006, 2007, and 2011.  Management uses this measure      to track the structural cost reduction target on a running rate      basis since a significant portion of the benefit of the health-care      Settlement Agreement related to hourly employees is anticipated to      extend well beyond the periods in which the expense related to the      contributions will be incurred.  Management believes that this      measure is useful to investors as it allows them to evaluate the      ongoing effects of GM's structural cost reduction initiatives.      Non-GAAP measures should not be considered as a substitute for      measures of financial performance prepared in accordance with GAAP.      Investors and potential investors are encouraged to review the      reconciliation of non-GAAP financial measures contained within the      attached press release with their most directly comparable GAAP      financial results.                            General Motors Corporation                         List of Special Items - After Tax                  (Dollars in millions except per share amounts)                                    (Unaudited)                                              Three Months Ended                                                 March 31, 2006                                              ------------------                                                  Net     $1-2/3                                                Income      EPS                                                ------    -----      REPORTED      --------      Net (loss)                               $(323)     $(0.57)      ADJUSTMENTS      -----------      Restructuring (A)                          111        0.19      Sale of Suzuki investment (B)             (317)      (0.56)                                                 ---        ----      Subtotal                                  (206)      (0.37)      ADJUSTED      --------                                   ---        ----      Adjusted income                          $(529)     $(0.94)                                                 ===        ====      (A) Relates to various restructuring initiatives, as follows (all          amounts after tax):          o  Estimated charges of $65 million related to separations of             salaried employees at GMNA.          o  Curtailment charges associated with modifications to the             U.S. Retirement Program for Salaried Employees announced in             the first quarter of 2006.  GMNA and Other Operations             recognized charges of $12 million and $3 million respectively             associated with these modifications.          o  A favorable adjustment of $88 million for higher than             anticipated headcount reductions associated with previously             announced GMNA plant idling activities,          o  A charge of $52 million for certain components of the hourly             attrition program related to retroactive lump-sum payments,             recognized at GMNA.          o  Other restructuring charges of $40 million and $27 million,             recognized at GME and GMLAAM, respectively.      (B) Relates to the sale of 92.36 million shares of GM's investment          in Suzuki for approximately $2.0 billion in cash, reducing GM's          equity stake in Suzuki from 20.4% to approximately 3.7% (16.3          million shares). The after-tax gain of $317 million was          recognized at GMAP.                            General Motors Corporation                         List of Special Items - After Tax                  (Dollars in millions except per share amounts)                                    (Unaudited)                                              Three Months Ended                                                 March 31, 2005                                              ------------------                                                  Net     $1-2/3                                                Income      EPS                                                ------    -----      REPORTED      --------      Net (loss)                             $(1,253)     $(2.22)      ADJUSTMENTS      -----------      Salaried Attrition Program (A)             148        0.26      Plant and Facility Impairments (B)          84        0.15      GME Restructuring Charge (C)               422        0.75      Tax Items (D)                             (389)      (0.69)                                                 ---        ----      Subtotal                                   265        0.47      ADJUSTED      --------                                   ---        ----      Adjusted (loss)                          $(988)     $(1.75)                                                 ===        ====      (A) Salaried Attrition Program relates to voluntary early retirement          and other separation programs in the U.S. in the first quarter          of 2005.      (B) Plant and Facility Impairments relates to the write-down to          fair market value of various plant assets in connection with          the discontinuance of production at the Lansing assembly plant          during the second quarter of 2005.      (C) In the fourth quarter of 2004, GM Europe announced a          restructuring plan targeting a reduction in annual structural          costs of an estimated $600 million by 2006.  A total reduction          of 12,000 employees, including 10,000 in Germany, from          2005-2007 through separation programs, early retirements, and          selected outsourcing initiatives is expected.  The after-tax          separation cost of $422 million in the first quarter of 2005          covers approximately 5,650 people, of whom 4,900 are in          Germany.      (D) Tax Items relate to tax benefits (including the Medicare Part D          benefit in the U.S.), in excess of GM's previously communicated          annual effective tax rate of 15%, which do not vary with the          level of pre-tax income.  Adjusted loss reflects an effective          tax rate of 15%.                            General Motors Corporation                        Summary Corporate Financial Results                                    (Unaudited)                                                 First Quarter                                                 --------------                                                2006         2005                                                ----         ----      (Dollars in millions except per share amounts)      Total net sales and       revenues                              $52,245       $45,773       Adjusted                              $51,706       $45,773      Net income (loss)                        $(323)      $(1,253)       Adjusted                                $(529)        $(988)      Net margin       (Net income /Total net sales         and revenues)                          (0.6)%        (2.7%)       Adjusted                                 (1.0)%        (2.2%)      Earnings (losses) per share - basic       $1-2/3 par value                       $(0.57)       $(2.22)      Earnings (losses) per share - diluted       $1-2/3 par value                       $(0.57)       $(2.22)      Earnings (losses) per share - adjusted       diluted       $1-2/3 par value                       $(0.94)       $(1.75)      GM $1-2/3 par value average       shares outstanding (Mil's)       Basic shares                              566           565       Diluted shares                            566           565      Cash dividends per share       of common stocks       GM $1-2/3 par value                     $0.25         $0.50      See reconciliation of adjusted financial results.                            General Motors Corporation                        Summary Corporate Financial Results                                    (Unaudited)                                                 First Quarter                                                 --------------                                                2006         2005                                                ----         ----      Book value per share of       common stocks at March 31       GM $1-2/3 par value                    $26.02        $44.37      Auto & Other total cash & marketable       securities at March 31 ($Bil's)         $18.8         $15.6       Readily-available assets in VEBA          2.8           4.2                                                ----          ----      Total Auto & Other cash &       marketable securities plus       readily-available assets in VEBA        $21.6         $19.8                                                ====          ====      Auto & Other Operations ($Mil's)       Depreciation                           $1,114        $1,270       Amortization of special         tools                                   733           816       Amortization of intangible         assets                                   14            10                                               -----         -----         Total                                $1,861        $2,096                                               =====         =====      GM's share of nonconsolidated       affiliates' net income (loss)       ($Mil's)       Italy *                                    NA           $21       Japan                                     $21           $50       China                                     $70           $33       South Korea #                              NA           $(8)      *   During the second quarter of 2005, GM and Fiat S.p.A. completed          the liquidation and termination of all joint ventures between          them in existence at that time.  As a result, GM regained          complete ownership of all assets it originally contributed to          each joint venture.      #   Effective for the third quarter 2005, the results of GM Daewoo's          operations are consolidated by GM.                            General Motors Corporation                        Summary Corporate Financial Results                                    (Unaudited)                                  First Quarter                                  2006 and 2005                                 --------------      (Dollars in millions) Reported      Special Items      Adjusted                            --------      -------------      --------                         2006     2005    2006     2005   2006     2005                         ----     ----    ----     ----   ----     ----      Total net sales       and revenues      GMNA(1)          $28,531  $25,227    $ -     $ -  $28,531   $25,227      GME(1)             8,091    8,108      -       -    8,091     8,108      GMLAAM             3,140    2,299      -       -    3,140     2,299      GMAP               3,933    1,694   (539)      -    3,394     1,694                        ------   ------    ---      --   ------    ------       Total GMA        43,695   37,328   (539)      -   43,156    37,328      Other(2)            (305)     (25)     -       -     (305)      (25)                        ------   ------    ---      --   ------    ------      Total Auto &       Other            43,390   37,303   (539)      -   42,851    37,303                        ------   ------    ---      --   ------    ------      GMAC               8,822    8,221      -       -    8,822     8,221      Other Financing(2)    33      249      -       -       33       249                         -----    -----     --      --    -----     -----       Total FIO         8,855    8,470      -       -    8,855     8,470                        ------   ------    ---      --   ------    ------      Total net sales       and revenues    $52,245  $45,773  $(539)    $ -  $51,706   $45,773                        ======   ======    ===      ==   ======    ======      Income (loss)       before income       taxes, equity       income and       minority interests      GMNA             $(1,364) $(2,212)   $64    $357  $(1,300)  $(1,855)      GME                   75     (860)    63     671      138      (189)      GMLAAM                80       55     27       -      107        55      GMAP                 579      (23)  (575)      -        4       (23)                           ---    -----    ---   -----    -----     -----       Total GMA          (630)  (3,040)  (421)  1,028   (1,051)   (2,012)      Other               (827)    (412)     4      13     (823)     (399)                           ---    -----    ---   -----    -----     -----       Total Auto &         Other          (1,457)  (3,452)  (417)  1,041   (1,874)   (2,411)                         -----    -----    ---   -----    -----     -----      GMAC                 924    1,160      -       -      924     1,160      Other Financing        2       (2)     -       -        2        (2)                           ---    -----     --      --      ---     -----       Total FIO           926    1,158      -       -      926     1,158                           ---    -----    ---   -----      ---     -----      Total income (loss)       before income taxes,       equity income and       minority       interests         $(531) $(2,294) $(417) $1,041    $(948)  $(1,253)                           ===    =====    ===   =====      ===     =====      See footnotes.                            General Motors Corporation                        Summary Corporate Financial Results                                    (Unaudited)                                   First Quarter                                   2006 and 2005                                   -------------      (Dollars in millions) Reported      Special Items      Adjusted                            --------      -------------      --------                         2006     2005    2006     2005   2006     2005                         ----     ----    ----     ----   ----     ----      Net income (loss)      GMNA(1)            $(987) $(1,737)   $41    $224    $(946)  $(1,513)      GME(1)                48     (514)    40     422       88       (92)      GMLAAM                29       31     27       -       56        31      GMAP                 398       70   (317)      -       81        70                           ---    -----    ---     ---      ---     -----       Total GMA          (512)  (2,150)  (209)    646     (721)   (1,504)      Other               (417)     168      3    (381)    (414)     (213)                           ---    -----    ---     ---    -----     -----       Total Auto &         Other            (929)  (1,982)  (206)    265   (1,135)   (1,717)                           ---    -----    ---     ---    -----     -----      GMAC                 605      728      -       -      605       728      Other Financing        1        1      -       -        1         1                           ---      ---     --      --      ---       ---       Total FIO           606      729      -       -      606       729                           ---    -----    ---     ---      ---       ---      Net income (loss)  $(323) $(1,253) $(206)   $265    $(529)    $(988)                           ===    =====    ===     ===      ===       ===      Income tax expense       (benefit)      GMNA               $(379)   $(506)   $23    $133    $(356)    $(373)      GME                   29     (333)    23     249       52       (84)      GMLAAM                50       25      -       -       50        25      GMAP                 237      (10)  (258)      -      (21)      (10)                           ---      ---    ---     ---      ---       ---       Total GMA           (63)    (824)  (212)    382     (275)     (442)      Other               (409)    (574)     1     394     (408)     (180)                           ---    -----    ---     ---      ---       ---       Total Auto &         Other            (472)  (1,398)  (211)    776     (683)     (622)                           ---    -----    ---     ---      ---       ---      GMAC                 330      429      -       -      330       429      Other Financing        1       (3)     -       -        1        (3)                           ---      ---     --      --      ---       ---       Total FIO           331      426      -       -      331       426                           ---      ---    ---     ---      ---       ---      Income tax expense       (benefit)         $(141)   $(972) $(211)   $776    $(352)    $(196)                           ===      ===    ===     ===      ===       ===      See footnotes.                            General Motors Corporation                        Summary Corporate Financial Results                                    (Unaudited)                                   First Quarter                                   2006 and 2005                                   --------------      (Dollars in millions) Reported      Special Items      Adjusted                            --------      -------------      --------                         2006     2005    2006     2005   2006     2005                         ----     ----    ----     ----   ----     ----      Effective tax rate      Total GM Corp.        27%      42%    51%     75%      37%       16%      GMNA                  28%      23%    36%     37%      27%       20%      GME                   39%      39%    37%     37%      38%       44%      GMAC                  36%      37%     -       -       36%       37%      Equity income (loss)       and minority interests      GMNA                 $(2)    $(31)   $ -     $ -      $(2)     $(31)      GME                    2       13      -       -        2        13      GMLAAM                (1)       1      -       -       (1)        1      GMAP                  56       83      -       -       56        83                            --       --     --      --       --        --      Total GMA            $55      $66    $ -     $ -      $55       $66                            ==       ==     ==      ==       ==        ==                            General Motors Corporation                               Operating Statistics                                                 First Quarter                                                ----------------                                                2006        2005                                                ----        ----      (Units in thousands)      Worldwide Production Volume       GMNA - Cars                               496         470       GMNA - Trucks                             759         712                                               -----       -----       Total GMNA                              1,255       1,182       GME                                       494         502       GMLAAM                                    194         185       GMAP                                      468         335                                               -----       -----         Total Worldwide                       2,411       2,204                                               =====       =====      Vehicle Unit Deliveries       Chevrolet - Cars                          195         218       Chevrolet - Trucks                        376         397       Pontiac                                    99         100       GMC                                       105         123       Buick                                      62          61       Oldsmobile                                  -           1       Saturn                                     47          48       Cadillac                                   51          50       Other                                      28          17                                               -----       -----         Total United States                     963       1,015       Canada, Mexico, and Other                 163         167                                               -----       -----         Total GMNA                            1,126       1,182       GME                                       522         514       GMLAAM                                    230         183       GMAP                                      323         231                                               -----       -----         Total Worldwide                       2,201       2,110                                               =====       =====      Market Share       United States - Cars                     20.7%       23.3%       United States - Trucks                   26.4%       27.1%         Total United States                    23.8%       25.4%       Total North America                      23.7%       25.2%       Total Europe                              9.5%        9.7%       Total LAAM                               16.9%       15.4%       Asia Pacific                              6.4%        5.0%         Total Worldwide                        13.2%       13.3%      U.S. Retail/Fleet Mix       % Fleet Sales - Cars                     41.6%       39.5%       % Fleet Sales - Trucks                   22.4%       18.1%         Total Vehicles                         30.0%       26.9%      GMNA Capacity Utilization       (2 shift rated)                          98.8%       87.6%                            General Motors Corporation                               Operating Statistics                                                 First Quarter                                                ----------------                                                2006        2005                                                ----        ----      GMAC's Worldwide Cost of       Borrowing (3)                            5.41%       4.30%      GMAC Period End Debt Spreads Over       U.S. Treasuries        2 Year                                   445 bp      350 bp        5 Year                                   449 bp      465 bp       10 Year                                   474 bp      460 bp      GMAC Cash Reserve Balance ($Bil's)(4)    $22.1       $18.5      GMAC Automotive Finance Operations       Consumer Credit (North America)       Net charge-offs as a % of         managed receivables                    1.14%       0.96%       Retail contracts 30 days         delinquent - % of average number         of contracts outstanding (5)           2.34%       2.09%       Share of GM retail sales (U.S. only)       Total consumer volume (retail         and lease) as % of retail sales          45%         54%       SmartLease as % of retail sales            22%         17%       Off-lease vehicle         remarketing (U.S. only)       Sales proceeds on scheduled lease         terminations (36-month) per vehicle $13,579     $13,724       Off-lease vehicles         terminated (units in 000s)               69          72      ResCap       Originations ($ Bil's)                  $41.6       $36.4       Mortgage servicing rights, net ($Bil's)  $4.5        $3.7      GMAC Insurance Operations ($Mil's)       Combined ratio (6)                       91.3%       93.8%       Premiums/revenue written               $1,101      $1,118       Investment portfolio market value      $7,900      $7,322       After-tax net unrealized capital gains   $622        $463      Worldwide Employment       at March 31 (in 000's)       United States Hourly                      102         109       United States Salary                       36          39                                                 ---         ---         Total United States                     138         148       Canada, Mexico, and Other                  31          31                                                 ---         ---       GMNA                                      169         179       GME (7)                                    64          58       GMLAAM                                     31          30       GMAP (8)                                   32          15       GMAC                                       31          34       Other                                       2           5                                                 ---         ---         Total                                   329         321                                                 ===         ===      Worldwide Payrolls ($Bil's)               $5.3        $5.3      See footnotes.                            General Motors Corporation      Footnotes:      ---------      (1) Effective January 1, 2006, four powertrain entities were          transferred from GMNA to GME for management reporting.          Accordingly, first quarter 2005 amounts have been revised for          comparability by reclassifying $151 million of revenue and          $33 million of net income from GMNA to GME.      (2) Other Operations and Other Financing include intercompany          eliminations.      (3) Calculated by dividing total interest expense (excluding mark          to market adjustments) by total debt.      (4) Balance at March 31, 2006 comprises $17.3 billion of cash and          cash equivalents and $4.8 billion in marketable securities          with maturities greater than 90 days.  Balance at March 31, 2005          comprises $16.1 billion of cash and cash equivalents and          $2.4 billion in marketable securities with maturities greater than          90 days.      (5) Excludes accounts in bankruptcy.      (6) Calculated as the sum of all reported losses and expenses          (excluding interest and income tax expense) divided by the          total of premiums and service revenues earned and other income.      (7) Approximately 7,000 employees were added in the fourth quarter          of 2005 from a former powertrain joint venture with Fiat.      (8) Approximately 13,000 employees were added as a result of the          GM Daewoo consolidation in the third quarter of 2005.                    GENERAL MOTORS CORPORATION AND SUBSIDIARIES                    CONDENSED CONSOLIDATED STATEMENTS OF INCOME                                    (Unaudited)                                                          Three Months Ended                                                               March 31,                                                          ------------------                                                            2006        2005                                                          --------    --------                                                        (dollars in millions                                                      except per share amounts)       Total net sales and revenues                       $52,245     $45,773                                                           ------     -------       Cost of sales and other expenses                    43,013      39,499       Selling, general, and administrative expenses        5,534       4,889       Interest expense                                     4,229       3,679                                                           ------      ------         Total costs and expenses                          52,776      48,067                                                           ------      ------       Income (loss) before income taxes, equity         income and minority interests                       (531)     (2,294)       Income tax expense (benefit)                          (141)       (972)       Equity income (loss) and minority interests             67          69                                                           ------      ------       Net income (loss)                                   $ (323)    $(1,253)                                                           ======      ======       Basic earnings (loss) per share attributable to         common stock                                     $ (0.57)    $ (2.22)                                                           ======      ======       Earnings (loss) per share attributable to         common stock assuming dilution                   $ (0.57)    $ (2.22)                                                           ======      ======                    GENERAL MOTORS CORPORATION AND SUBSIDIARIES              SUPPLEMENTAL INFORMATION TO THE CONDENSED CONSOLIDATED                               STATEMENTS OF INCOME                                    (Unaudited)                                                          Three Months Ended                                                               March 31,                                                          ------------------                                                            2006        2005                                                          --------    --------                                                         (dollars in millions)       AUTOMOTIVE AND OTHER OPERATIONS       Total net sales and revenues                        $43,390     $37,303                                                           -------     -------       Cost of sales and other expenses                     40,615      37,146       Selling, general, and administrative expenses         3,402       2,837                                                           -------     -------         Total costs and expenses                           44,017      39,983       Interest expense                                        684         685       Net expense from transactions with Financing         and Insurance Operations                              146          87                                                           -------     -------       Income (loss) before income taxes, equity         income, and minority interests                     (1,457)     (3,452)       Income tax (benefit)                                   (472)     (1,398)       Equity income (loss) and minority interests              56          72                                                           -------     -------       Net income (loss) -- Automotive and Other         Operations                                        $  (929)    $(1,982)                                                           =======     =======       FINANCING AND INSURANCE OPERATIONS       Total revenues                                      $ 8,855     $ 8,470                                                           -------     -------       Interest expense                                      3,545       2,994       Depreciation and amortization expense                 1,511       1,398       Operating and other expenses                          2,287       2,089       Provisions for financing and insurance losses           732         918                                                           -------     -------         Total costs and expenses                            8,075       7,399       Net income from transactions with Automotive         and Other Operations                                 (146)        (87)                                                           -------     -------       Income before income taxes, equity income, and         minority interests                                    926       1,158       Income tax expense                                      331         426       Equity income (loss) and minority interests              11          (3)                                                           -------     -------         Net income -- Financing and Insurance           Operations                                       $  606      $  729                                                            ======      ======                    GENERAL MOTORS CORPORATION AND SUBSIDIARIES                       CONDENSED CONSOLIDATED BALANCE SHEETS                                    (Unaudited)                                               Mar. 31,   Dec. 31,    Mar. 31,                                                2006       2005         2005                                              --------   --------     --------                                                    (dollars in millions)                      ASSETS       Cash and cash equivalents               $34,868   $ 30,726      $26,389       Marketable securities                    19,839     19,726       26,256                                               -------   --------      -------         Total cash and marketable           securities                           54,707     50,452       52,645       Finance receivables -- net              180,161    180,793      190,646       Loans held for sale                      18,171     21,865       22,569       Accounts and notes receivable (less         allowances)                            16,801     15,578       18,001       Inventories (less allowances)            15,519     14,354       13,189       Assets held for sale                          -     19,030            -       Deferred income taxes                    29,495     29,889       26,967       Net equipment on operating leases --         (less accumulated depreciation)        39,787     38,187       34,371       Equity in net assets of         nonconsolidated affiliates              1,830      3,291        6,500       Property -- net                          40,235     40,214       38,106       Intangible assets -- net                  4,458      4,339        4,864       Other assets                             62,835     58,086       60,239                                               -------    -------      -------         Total assets                         $463,999   $476,078     $468,097                                               =======    =======      =======       LIABILITIES AND STOCKHOLDERS' EQUITY       Accounts payable (principally trade)    $30,210   $ 29,913      $28,519       Notes and loans payable                 277,007    285,750      291,831       Liabilities related to assets held         for sale                                    -     10,941            -       Postretirement benefits other than         pensions                               36,445     33,997       28,462       Pensions                                 11,723     11,304        9,295       Deferred income taxes                     5,275      4,477        6,709       Accrued expenses and other         liabilities                            87,544     84,060       77,774                                               -------   --------      -------         Total liabilities                     448,204    460,442      442,590       Minority interests                        1,075      1,039          416       Stockholders' equity       $1-2/3 par value common stock         (outstanding, 565,559,329;         565,518,106; and 565,470,511 shares)      943        943          942       Capital surplus (principally         additional paid-in capital)            15,296     15,285       15,234       Retained earnings                         1,884      2,361       12,526                                               -------   --------      -------       Subtotal                                 18,123     18,589       28,702       Accumulated foreign currency         translation adjustments                (1,639)    (1,722)      (1,784)       Net unrealized gains (losses) on         derivatives                             1,109        733          612       Net unrealized gains on securities          956        786          535       Minimum pension liability adjustment     (3,829)    (3,789)      (2,974)                                               -------   --------      -------         Accumulated other comprehensive           loss                                 (3,403)    (3,992)      (3,611)                                               -------   --------      -------           Total stockholders' equity           14,720     14,597       25,091                                               -------   --------      -------       Total liabilities and stockholders'         equity                               $463,999   $476,078     $468,097                                               =======    =======      =======                    GENERAL MOTORS CORPORATION AND SUBSIDIARIES              SUPPLEMENTAL INFORMATION TO THE CONDENSED CONSOLIDATED                                  BALANCE SHEETS                                    (Unaudited)                                               Mar. 31,   Dec. 31,    Mar. 31,                                                2006       2005         2005                                              --------   --------     --------                                                    (dollars in millions)                      ASSETS       Automotive and Other Operations       Cash and cash equivalents               $17,427    $15,187      $10,205       Marketable securities                     1,396      1,416        5,447                                               -------    -------      -------         Total cash and marketable           securities                           18,823     16,603       15,652       Accounts and notes receivable (less         allowances)                             9,440      7,758        6,493       Inventories (less allowances)            14,862     13,851       12,736       Net equipment on operating leases --         (less accumulated depreciation)         7,217      6,993        6,329       Deferred income taxes and other         current assets                         10,032      8,877       10,975                                               -------    -------      -------       Total current assets                     60,374     54,082       52,185       Equity in net assets of         nonconsolidated affiliates              1,830      3,291        6,500       Property -- net                          38,457     38,466       36,265       Intangible assets -- net                  1,851      1,862        1,550       Deferred income taxes                    21,401     22,849       18,093       Other assets                             41,724     41,103       40,405                                               -------    -------      -------         Total Automotive and Other           Operations assets                   165,637    161,653      154,998       Financing and Insurance Operations       Cash and cash equivalents                17,441     15,539       16,184       Investments in securities                18,443     18,310       20,809       Finance receivables -- net              180,161    180,793      190,646       Loans held for sale                      18,171     21,865       22,569       Assets held for sale                          -     19,030            -       Net equipment on operating leases         (less accumulated depreciation)        32,570     31,194       28,042       Other assets                             31,576     27,694       34,849       Net receivable from Automotive and         Other Operations                        4,609      4,452        2,300                                               -------    -------      -------         Total Financing and Insurance           Operations assets                   302,971    318,877      315,399                                               -------    -------      -------       Total assets                           $468,608   $480,530     $470,397                                               =======    =======      =======       LIABILITIES AND STOCKHOLDERS' EQUITY       Automotive and Other Operations       Accounts payable (principally trade)    $26,614    $26,182      $24,168       Loans payable                             1,207      1,519        2,446       Accrued expenses                         44,350     42,665       44,544       Net payable to Financing and         Insurance Operations                    4,609      4,452        2,300                                               -------    -------      -------         Total current liabilities              76,780     74,818       73,458       Long-term debt                           31,021     31,014       29,879       Postretirement benefits other than         pensions                               31,431     28,990       23,754       Pensions                                 11,568     11,214        9,204       Other liabilities and deferred         income taxes                           21,714     22,023       15,924                                               -------    -------      -------         Total Automotive and Other           Operations liabilities              172,514    168,059      152,219       Financing and Insurance Operations       Accounts payable                          3,596      3,731        4,351       Liabilities related to assets held         for sale                                    -     10,941            -       Debt                                    244,779    253,217      259,506       Other liabilities and deferred         income taxes                           31,924     28,946       28,814                                               -------    -------      -------         Total Financing and Insurance           Operations liabilities              280,299    296,835      292,671                                               -------    -------      -------          Total liabilities                    452,813    464,894      444,890       Minority interests                        1,075      1,039          416          Total stockholders' equity            14,720     14,597       25,091                                               -------    -------      -------       Total liabilities and stockholders'         equity                               $468,608   $480,530     $470,397                                               =======    =======      =======      SOURCE  General Motors Corporation  CONTACT: Toni Simonetti, +1-212-418-6380, Mobile: +1-917-822-3392, or Jerry Dubrowski,  +1-212-418-6261, Mobile: +1-917-544-4885, both of General Motors Corporation -0- Apr/20/2006 11:30 GMT    
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