Media roundtable hosted by Mike Devereux, President of GM Middle East

These topics included:

• Update on the US "Congress" hearings related to the request for loan by the US owned car manufacturers and next steps for GM
• Set the record straight that bankruptcy is not an option for GM
• Explain how the global financial crisis is affecting the auto industry and the importance of this industry for the US Economy
• Explain that the bailout is a loan and why we need to borrow money from the government
• Explain how GM has been in the process of building a winning auto company for the long term.
• Explain the implications that the financial crisis has had on GM business in the Middle East
• Outline the strategy GMME has been implementing to support consumer confidence

Update on Government Assistance (loan) to the Auto Industry:

On Thursday, November 20, 2008, the U.S. Congress announced that in order to support the automakers request for assistance, they need more detailed information on how the companies will restructure the industry for success and long-term viability. They have asked the companies to submit a detailed plan by December 2. The plan will be reviewed and additional hearings will be held - with the intent to vote on legislation during the week of December 8. The Congress is treating this legislation with priority due to the severe risk a fallen U.S. auto industry poses to the already fragile U.S. economy.

GM Statement on Congressional Call for Automakers Plans:

We appreciate the Congress' recognition of the auto industry's vital contribution to the nation's economic strength and national security. We intend to deliver a plan to Congress that shows them a viable General Motors. We agree completely that there must be accountability to U.S. taxpayers for government support that enables automakers to continue their restructuring and to ensure a stronger, more competitive auto industry. We will continue to work vigorously with the Congress and the Administration during the next few weeks to address their concerns and to arrive at a solution that provides immediate aid to the auto industry.

Bankruptcy Speculation:

Bankruptcy reorganization is not an option for General Motors because it would create more problems than it solves. Unlike other industries such as airlines, we do not believe that bankruptcy would effectively address our immediate need for liquidity, and we are concerned that it could cause serious and long-lasting harm to our vehicles sales. As a result, we do not think it would benefit our customers, investors or the millions of employees and retirees who depend on GM's continued success.

Effect of the global financial crisis on the auto industry:

• We are facing unprecedented challenges - worst global financial credit crisis in more than 70 years.
- Tightening of consumer credit and historically low consumer confidence have paralyzed consumer spending.
- Entire US auto industry has been hit hard by the credit crisis, not just GM.
- US economic conditions have spilled over into global financial markets.

• The U.S. auto industry has been hard hit by the credit crisis.
- Carmakers can't get credit to complete their restructurings and put new advanced technology vehicles into production.
- Customers can't get credit for new cars and other purchases, and consumer confidence has fallen to an all-time low.
- Suppliers are losing business and can't get credit to keep them afloat until the industry recovers.
- Dealers can't get credit to finance inventory and other routine business needs.

• General Motors Importance in the US auto industry.
- General Motors directly employs approximately 96,000 people in the United States.
- We have 6,500 dealers across the country, who employ another 340,000.
- Last year, we purchased more than $30bn of goods and services from more than 2,000 suppliers in 46 states.
- Our pension program covers nearly 475,000 retirees and spouses, and our health benefits extend to about one million Americans.
- We have about one million registered stockholders.

Government loan to the US auto industry - It is a loan, not a bailout:

• GM is not alone in this crisis.
• The U.S. credit freeze and closed capital markets are resulting in a severe liquidity squeeze, at a time when manufacturers' cash flow from operations are devastated by plummeting consumer demand.
• No other U.S. industry generates more employment, annual economic output, exports, R&D investment, or retail business than the U.S. auto industry. Proof points:
- 10% of all U.S. jobs are connected to the auto industry.
- Almost 4% of the U.S. GDP is auto related.
- Directly employs nearly a quarter of a million people.
- Supports another 5 million Americans at dealerships, parts suppliers and service providers.
- Has invested nearly a quarter of a trillion dollars in U.S. over last two decades, including $10bn alone last year.
- Spends $12bn annually in R&D in U.S., which exceeds aerospace, medical equipment and communications industries.
- Purchased $156bn in U.S. auto parts supporting jobs in all 50 states and is the largest purchaser of U.S. steel, aluminum, iron, copper, plastics, rubber and electronic and computer chips.
- Provides healthcare benefits to two million Americans and supports nearly 800,000 retirees and spouses with pension benefits.

GM has been in the process of building a winning auto company for the long term. These efforts are threatened by a severe downturn in sales and a sharp drop in revenue caused by a widespread economic and credit crisis:

- GM is focused on building sustainable success, not short-term results.
- New GM vehicles such as the Saturn Aura, Cadillac CTS, Chevy Malibu and Buick Enclave are getting great reviews from the experts and enthusiastic support from customers.
- GM is committed to leading in the development of advanced propulsion technology, including breakthrough technologies like the Chevy Volt extended-range electric car.
- At the same time GM has been creating these award-winning vehicles, the company has been taking tough action to cut costs. In fact, since 2005, GM has reduced structural cost in North America by over $9bn. And more recently, GM has outlined plans to enhance its liquidity position by $20bn through 2009.
- GM has been streamlining its U.S. operations.
- In response to the recent economic crisis, GM is further tightening its belt. The company recently took additional actions to reduce salaried employment costs by 30%, eliminate raises and discretionary bonus for executive and management employees, and suspend the 401k match for salaried employees.

Middle East is a very important market to GM:

• GM recognizes that markets outside the U.S., like the Middle East are extremely important for the future growth of the company.
• Over 60% of GM's sales come from markets outside the U.S.
• Our business has almost tripled over the last several years here in the Middle East.
• While some markets may be slowing down, GM is optimistic in the long term growth potential in the Middle East.
• GM remains committed to the region, and we will continue to support the market with great new products.
• We have had an aggressive product strategy this year, with new entries like the CTS, Aveo5 and Terrain.
• We have even more new products scheduled for the balance of the year and 2009, like the new CTS-V, Escalade Platinum, GMC Sierra Denali, H3T, Chevrolet Traverse, Malibu, Camaro and Cruze.
• We know the key to future growth in all markets around the world is great vehicles, and we remain committed to bringing new products to key growth markets around the world, including the Middle East.
• We also continue to be committed to the region with the investment in the Middle East such as:
- Parts Distribution of more than $73m.
- Customer focused programs like the Roadside Assistance, Bumper to Bumper Warranties, Customer Communications Center.
- Saudization and training programs with the Saudi Technical & Vocational Training Corporation costing GM and dealers around $9m.
- We continue to pursue the sponsorship of an advanced technician training center in the Philippines in order to provide GM dealer network across the region with badly needed qualified service technicians.

GMME strategy to support consumer confidence:

• Like all sectors, car sales have been affected by consumer confidence in the Middle East as well.
• We have some of the best offers in the markets anyway due to seasonality, eg Haj and new model year entry.
• 2009 MY cars arriving as per schedule.
- Some US plants working overtime to meet our demand.
• Good showroom traffic.
• Our dealers working internally and with financial institutions to address financing issues customers are facing.
• Key launches in December during the Abu Dhabi auto show: plans unchanged.