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UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, DC 20549-1004


FORM 10-Q


|   |  |                                                                                            
|-- |  | -------------------------------------------------------------------------------------------
|þ  |  | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934
|   |  | For the quarterly period ended March 31, 2006                                              
|OR
|  
|o  |  | TRANSITION REPORT PURSUANT TO SECTION 13 OF THE
    SECURITIES EXCHANGE ACT OF 1934        
|   |  | For the transition period
    from           to                                            

Commission file number 1-143


GENERAL MOTORS CORPORATION


(Exact Name of Registrant as Specified in its Charter)


|                                                                   |  |                                         
|------------------------------------------------------------------ |  | ----------------------------------------
|STATE OF DELAWARE                                                  |  | 38-0572515                              
|(State or other jurisdiction of
    Incorporation or Organization) |  | (I.R.S. Employer
    Identification No.)
|                                                                  
|300 Renaissance Center, Detroit, Michigan                          |  | 48265-3000                              
|(Address of Principal Executive Offices)                           |  | (Zip Code)                              

Registrants telephone number, including area code
(313) 556-5000


þ o


12b-2




| |                                                                                                                
| | ---------------------------------------------------------------------------------------------------------------
| | Large accelerated
    filer     þ          Accelerated
    filer     o          Non-accelerated
    filer     o

12b-2 o þ


2 3


Website Access to Companys Reports


10-K, 10-Q, 8-K,










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##### 










GENERAL MOTORS CORPORATION AND SUBSIDIARIES


INDEX


|                                             |  |                                                                                                                                            |      |          |      | 
|-------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------ | ---- | -------- | ---- | 
|                                             |  |                                                                                                                                            |      | Page No.
|                                             |  |                                                                                                                                            |      |         
|Part I  Financial
    Information          
|Item 1.                                      |  | Condensed Consolidated Financial Statements
    (Unaudited)                                                                                |      |          |      | 
|                                             |  | Condensed Consolidated Statements of Income
    for the Three Months Ended March 31, 2006 and 2005                                         |      |          | I-1  | 
|                                             |  | Supplemental Information to the Condensed
    Consolidated Statements of Income for the Three Months Ended
    March 31, 2006 and 2005     |      |          | I-2  | 
|                                             |  | Condensed Consolidated Balance Sheets as of
    March 31, 2006, December 31, 2005, and March 31,
    2005                                  |      |          | I-3  | 
|                                             |  | Supplemental Information to the Condensed
    Consolidated Balance Sheets as of March 31, 2006,
    December 31, 2005, and March 31, 2005  |      |          | I-4  | 
|                                             |  | Condensed Consolidated Statements of Cash
    Flows for the Three Months Ended March 31, 2006 and 2005                                     |      |          | I-5  | 
|                                             |  | Supplemental Information to the Condensed
    Consolidated Statements of Cash Flows for the Three Months Ended
    March 31, 2006 and 2005 |      |          | I-6  | 
|                                             |  | Notes to Condensed Consolidated Financial
    Statements                                                                                   |      |          | I-7  | 
|Item 2.                                      |  | Managements Discussion and Analysis
    of Financial Condition and Results of Operations                                                  |      |          | I-28 | 
|Item 3.                                      |  | Quantitative and Qualitative Disclosures
    About Market Risk                                                                             |      |          | I-57 | 
|Item 4.                                      |  | Controls and Procedures                                                                                                                    |      |          | I-57 | 
|Part II  Other
    Information             
|Item 1.                                      |  | Legal Proceedings                                                                                                                          |      |          | II-1 | 
|Item 1A                                      |  | Risk Factors                                                                                                                               |      |          | II-2 | 
|Item 2(c)                                    |  | Purchases of Equity Securities                                                                                                             |      |          | II-8 | 
|Item 6.                                      |  | Exhibits                                                                                                                                   |      |          | II-8 | 
|Signatures                                   |  |                                                                                                                                            | II-9 |         
|Memorandum of Understanding                 
|UAW-GM-Delphi Special Attrition Program     
|Quarterly Report on Form 10-Q               
|302 Certification of Chief Executive Officer
|302 Certification of Chief Financial Officer
|906 Certification of Chief Executive Officer
|906 Certification of Chief Financial Officer





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PART I


GENERAL MOTORS CORPORATION AND SUBSIDIARIES







|        |                                            
|------- | -------------------------------------------
|Item 1. | Condensed Consolidated Financial Statements




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                                                     |                          |                      | 41,912 |        |      |   | 39,499 |       
|Selling, general, and administrative expenses                                        |                          |                      | 5,532  |        |      |   | 4,889  |       
|Interest expense                                                                     |                          |                      | 4,229  |        |      |   | 3,679  |       
|                                                                                     |                          |                      |        |        |      |  
|                                                                                     | Total costs and expenses |                      |        | 51,673 |      |   |        | 48,067 |  
|                                                                                     |                          |                      |        |        |      |  
|Income (loss) before income taxes, equity income and minority
    interests          |                          |                      | 572    |        |      |   | (2,294 | )     
|Income tax expense (benefit)                                                         |                          |                      | 194    |        |      |   | (972   | )     
|Equity income (loss) and minority interests                                          |                          |                      | 67     |        |      |   | 69     |       
|                                                                                     |                          |                      |        |        |      |  
|                                                                                     | Net income (loss)        |                      | $      | 445    |      |   | $      | (1,253 | )
|                                                                                     |                          |                      |        |        |      |  
|Basic earnings (loss) per share attributable to common stock(Note 9)                 |                          | $                    | 0.79   |        |      | $ | (2.22  | )     
|                                                                                     |                          |                      |        |        |      |  
|Earnings (loss) per share attributable to common stock
    assuming dilution(Note 9) |                          | $                    | 0.78   |        |      | $ | (2.22  | )     
|                                                                                     |                          |                      |        |        |      |  



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##### Table of Contents



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                                             |                                                         |                       | 39,514 |        |      |   | 37,146 |       
|Selling, general, and administrative expenses                                |                                                         |                       | 3,400  |        |      |   | 2,837  |       
|                                                                             |                                                         |                       |        |        |      |  
|                                                                             | Total costs and expenses                                |                       |        | 42,914 |      |   |        | 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 |                                                         |                       | (354   | )      |      |   | (3,452 | )     
|Income tax (benefit)                                                         |                                                         |                       | (105   | )      |      |   | (1,398 | )     
|Equity income (loss) and minority interests                                  |                                                         |                       | 56     |        |      |   | 72     |       
|                                                                             |                                                         |                       |        |        |      |  
|                                                                             | Net income (loss)  Automotive and Other
    Operations |                       | $      | (193   | )    |   | $      | (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                                                           |                                                         |                       | 299    |        |      |   | 426    |       
|Equity income (loss) and minority interests                                  |                                                         |                       | 11     |        |      |   | (3     | )     
|                                                                             |                                                         |                       |        |        |      |  
|                                                                             | Net income  Financing and Insurance Operations         |                       | $      | 638    |      |   | $      | 729    |  
|                                                                             |                                                         |                       |        |        |      |  





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GENERAL MOTORS CORPORATION AND SUBSIDIARIES





CONDENSED CONSOLIDATED BALANCE SHEETS


(Unaudited)


|                                                                        |                                      |                                      |          |                            |              |        |         |           |        |        |         |         |        |        |        | 
|----------------------------------------------------------------------- | ------------------------------------ | ------------------------------------ | -------- | -------------------------- | ------------ | ------ | ------- | --------- | ------ | ------ | ------- | ------- | ------ | ------ | ------ | 
|                                                                        |                                      | March 31,                            |          |                            | December 31, |        |         | March 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) (Note 2)                                  |                                      |                                      | 15,519   |                            |              |        | 14,354  |           |        |        | 13,189  |        
|Assets held for sale                                                    |                                      |                                      |         |                            |              |        | 19,030  |           |        |        |        |        
|Deferred income taxes                                                   |                                      |                                      | 29,160   |                            |              |        | 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 (Note 3)                                        |                                      |                                      | 4,458    |                            |              |        | 4,339   |           |        |        | 4,864   |        
|Other assets                                                            |                                      |                                      | 62,835   |                            |              |        | 58,086  |           |        |        | 60,239  |        
|                                                                        |                                      |                                      |          |                            |              |        |         |           |       
|                                                                        | Total assets                         |                                      | $        | 463,664                    |              |        | $       | 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                                                                |                                      |                                      | 11,731   |                            |              |        | 11,304  |           |        |        | 9,295   |        
|Deferred income taxes                                                   |                                      |                                      | 5,275    |                            |              |        | 4,477   |           |        |        | 6,709   |        
|Accrued expenses and other liabilities                                  |                                      |                                      | 86,496   |                            |              |        | 84,060  |           |        |        | 77,774  |        
|                                                                        |                                      |                                      |          |                            |              |        |         |           |       
|                                                                        | Total liabilities                    |                                      |          | 447,164                    |              |        |         | 460,442   |        |        |         | 442,590 |       
|Minority interests                                                      |                                      |                                      | 1,075    |                            |              |        | 1,039   |           |        |        | 416     |        
|Stockholders equity                                                    |                                      |                                      |          |                            |              |        |         |           |        |        |         |        
|$12/3 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                                                       |                                      |                                      | 2,652    |                            |              |        | 2,361   |           |        |        | 12,526  |        
|                                                                        |                                      |                                      |          |                            |              |        |         |           |       
|                                                                        |                                      |                                      | Subtotal |                            |              | 18,891 |         |           |        | 18,589 |         |         |        | 28,702 |       
|Accumulated foreign currency translation adjustments                    |                                      |                                      | (1,694   | )                          |              |        | (1,722  | )         |        |        | (1,784  | )      
|Net unrealized gains on derivatives                                     |                                      |                                      | 1,109    |                            |              |        | 733     |           |        |        | 612     |        
|Net unrealized gains on securities                                      |                                      |                                      | 956      |                            |              |        | 786     |           |        |        | 535     |        
|Minimum pension liability adjustment                                    |                                      |                                      | (3,837   | )                          |              |        | (3,789  | )         |        |        | (2,974  | )      
|                                                                        |                                      |                                      |          |                            |              |        |         |           |       
|                                                                        |                                      | Accumulated other comprehensive loss |          |                            | (3,466       | )      |         |           | (3,992 | )      |         |         | (3,611 | )     
|                                                                        |                                      |                                      |          |                            |              |        |         |           |       
|                                                                        |                                      |                                      |          | Total stockholders equity |              |        | 15,425  |           |        |        | 14,597  |         |        |        | 25,091 | 
|                                                                        |                                      |                                      |          |                            |              |        |         |           |       
|Total liabilities and stockholders equity                              |                                      | $                                    | 463,664  |                            |              | $      | 476,078 |           |        | $      | 468,097 |        
|                                                                        |                                      |                                      |          |                            |              |        |         |           |       



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES





SUPPLEMENTAL INFORMATION TO THE


CONDENSED CONSOLIDATED BALANCE SHEETS


(Unaudited)


|                                                                        |                                                      |                            |         |         |              |   |         |           |         |   |         |         |         | 
|----------------------------------------------------------------------- | ---------------------------------------------------- | -------------------------- | ------- | ------- | ------------ | - | ------- | --------- | ------- | - | ------- | ------- | ------- | 
|                                                                        |                                                      | March 31,                  |         |         | December 31, |   |         | March 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) (Note 2)                                  |                                                      |                            | 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 (Note 3)                                        |                                                      |                            | 1,851   |         |              |   | 1,862   |           |         |   | 1,550   |        
|Deferred income taxes                                                   |                                                      |                            | 21,034  |         |              |   | 22,849  |           |         |   | 18,093  |        
|Other assets                                                            |                                                      |                            | 41,724  |         |              |   | 41,103  |           |         |   | 40,405  |        
|                                                                        |                                                      |                            |         |         |              |   |         |           |        
|                                                                        | Total Automotive and Other Operations assets         |                            |         | 165,270 |              |   |         | 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                                                            |                                                      |                            | 31,608  |         |              |   | 27,694  |           |         |   | 34,849  |        
|Net receivable from Automotive and Other Operations                     |                                                      |                            | 4,609   |         |              |   | 4,452   |           |         |   | 2,300   |        
|                                                                        |                                                      |                            |         |         |              |   |         |           |        
|                                                                        | Total Financing and Insurance Operations assets      |                            |         | 303,003 |              |   |         | 318,877   |         |   |         | 315,399 |        
|                                                                        |                                                      |                            |         |         |              |   |         |           |        
|Total assets                                                            |                                                      | $                          | 468,273 |         |              | $ | 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                                                        |                                                      |                            | 43,317  |         |              |   | 42,665  |           |         |   | 44,544  |        
|Net payable to Financing and Insurance Operations                       |                                                      |                            | 4,609   |         |              |   | 4,452   |           |         |   | 2,300   |        
|                                                                        |                                                      |                            |         |         |              |   |         |           |        
|                                                                        | Total current liabilities                            |                            |         | 75,747  |              |   |         | 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                                                                |                                                      |                            | 11,576  |         |              |   | 11,214  |           |         |   | 9,204   |        
|Other liabilities and deferred income taxes                             |                                                      |                            | 21,699  |         |              |   | 22,023  |           |         |   | 15,924  |        
|                                                                        |                                                      |                            |         |         |              |   |         |           |        
|                                                                        | Total Automotive and Other Operations liabilities    |                            |         | 171,474 |              |   |         | 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          |         |         | 451,773      |   |         |           | 464,894 |   |         |         | 444,890 | 
|Minority interests                                                      |                                                      |                            | 1,075   |         |              |   | 1,039   |           |         |   | 416     |        
|                                                                        |                                                      | Total stockholders equity |         |         | 15,425       |   |         |           | 14,597  |   |         |         | 25,091  | 
|                                                                        |                                                      |                            |         |         |              |   |         |           |        
|Total liabilities and stockholders equity                              |                                                      | $                          | 468,273 |         |              | $ | 480,530 |           |         | $ | 470,397 |        
|                                                                        |                                                      |                            |         |         |              |   |         |           |        





I-4



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES





CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


(Unaudited)


|                                                             |  |                       |         |   |      |   |         |  
|------------------------------------------------------------ |  | --------------------- | ------- | - | ---- | - | ------- | -
|                                                             |  | Three Months Ended    |        
|                                                             |  | March 31,             |        
|                                                             |  |                       |        
|                                                             |  | 2006                  |         |   | 2005 |  
|                                                             |  |                       |         |   |      |  
|                                                             |  | (Dollars in millions) |        
|Net cash provided by (used in) operating activities          |  | $                     | 790     |   |      | $ | (6,148  | )
|Cash flows from investing activities                         |  |                       |         |   |      |   |         |  
|Expenditures for property                                    |  |                       | (1,376  | ) |      |   | (1,288  | )
|Investments in marketable securities  acquisitions          |  |                       | (5,443  | ) |      |   | (6,178  | )
|Investments in marketable securities  liquidations          |  |                       | 4,969   |   |      |   | 4,567   |  
|Net change in mortgage servicing rights                      |  |                       | (56     | ) |      |   | (104    | )
|Increase (decrease) in finance receivables                   |  |                       | (7,589  | ) |      |   | 1,282   |  
|Proceeds from sales of finance receivables                   |  |                       | 16,220  |   |      |   | 6,475   |  
|Proceeds from sale of business units/equity investments      |  |                       | 9,911   |   |      |   |        |  
|Operating leases  acquisitions                              |  |                       | (4,524  | ) |      |   | (3,672  | )
|Operating leases  liquidations                              |  |                       | 1,625   |   |      |   | 1,439   |  
|Investments in companies, net of cash acquired               |  |                       | (5      | ) |      |   | (75     | )
|Other                                                        |  |                       | (2,402  | ) |      |   | (2,451  | )
|                                                             |  |                       |         |   |      |  
|Net cash provided by (used in) investing activities          |  |                       | 11,330  |   |      |   | (5      | )
|Cash flows from financing activities                         |  |                       |         |   |      |   |         |  
|Net increase (decrease) in loans payable                     |  |                       | (5,900  | ) |      |   | 1,292   |  
|Long-term debt  borrowings                                  |  |                       | 23,824  |   |      |   | 10,545  |  
|Long-term debt  repayments                                  |  |                       | (26,895 | ) |      |   | (16,127 | )
|Cash dividends paid to stockholders                          |  |                       | (141    | ) |      |   | (283    | )
|Other                                                        |  |                       | 1,081   |   |      |   | 1,566   |  
|                                                             |  |                       |         |   |      |  
|Net cash provided by (used in) financing activities          |  |                       | (8,031  | ) |      |   | (3,007  | )
|Effect of exchange rate changes on cash and cash equivalents |  |                       | 53      |   |      |   | (444    | )
|                                                             |  |                       |         |   |      |  
|Net increase (decrease) in cash and cash equivalents         |  |                       | 4,142   |   |      |   | (9,604  | )
|Cash and cash equivalents at beginning of the period         |  |                       | 30,726  |   |      |   | 35,993  |  
|                                                             |  |                       |         |   |      |  
|Cash and cash equivalents at end of the period               |  | $                     | 34,868  |   |      | $ | 26,389  |  
|                                                             |  |                       |         |   |      |  



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES





SUPPLEMENTAL INFORMATION TO THE


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


(Unaudited)


|                                                               |  |                              |        |                       |                         |   |        |      |  |   |         |   |  |   |         |  
|-------------------------------------------------------------- |  | ---------------------------- | ------ | --------------------- | ----------------------- | - | ------ | ---- |  | - | ------- | - |  | - | ------- | -
|                                                               |  | Automotive and Other         |        |                       | Financing and Insurance |  
|                                                               |  |                              |        |                       |                         |  
|                                                               |  | Three Months Ended March 31, |       
|                                                               |  |                              |       
|                                                               |  | 2006                         |        |                       | 2005                    |   |        | 2006 |  |   | 2005    |  
|                                                               |  |                              |        |                       |                         |   |        |      |  |   |         |  
|                                                               |  |                              |        | (Dollars in millions) |                         |   |       
|Net cash provided by (used in) operating activities            |  | $                            | 2,962  |                       |                         | $ | (2,555 | )    |  | $ | (2,172  | ) |  | $ | (3,593  | )
|Cash flows from investing activities                           |  |                              |        |                       |                         |   |        |      |  |   |         |   |  |   |         |  
|Expenditures for property                                      |  |                              | (1,272 | )                     |                         |   | (1,233 | )    |  |   | (104    | ) |  |   | (55     | )
|Investments in marketable securities  acquisitions            |  |                              | (44    | )                     |                         |   | (93    | )    |  |   | (5,399  | ) |  |   | (6,085  | )
|Investments in marketable securities  liquidations            |  |                              | 61     |                       |                         |   | 1,429  |      |  |   | 4,908   |   |  |   | 3,138   |  
|Net change in mortgage servicing rights                        |  |                              |       |                       |                         |   |       |      |  |   | (56     | ) |  |   | (104    | )
|Increase (decrease) in finance receivables                     |  |                              |       |                       |                         |   |       |      |  |   | (7,589  | ) |  |   | 1,282   |  
|Proceeds from sales of finance receivables                     |  |                              |       |                       |                         |   |       |      |  |   | 16,220  |   |  |   | 6,475   |  
|Proceeds from the sale of business units/equity investments    |  |                              | 1,968  |                       |                         |   |       |      |  |   | 7,943   |   |  |   |        |  
|Operating leases  acquisitions                                |  |                              |       |                       |                         |   |       |      |  |   | (4,524  | ) |  |   | (3,672  | )
|Operating leases  liquidations                                |  |                              |       |                       |                         |   |       |      |  |   | 1,625   |   |  |   | 1,439   |  
|Net investing activity with Financing and Insurance Operations |  |                              |       |                       |                         |   | 500    |      |  |   |        |   |  |   |        |  
|Investments in companies, net of cash acquired                 |  |                              | (5     | )                     |                         |   | (75    | )    |  |   |        |   |  |   |        |  
|Other                                                          |  |                              | (1,053 | )                     |                         |   | (374   | )    |  |   | (1,349  | ) |  |   | (2,077  | )
|                                                               |  |                              |        |                       |                         |   |        |      |  |   |         |  
|Net cash provided by (used in) investing activities            |  |                              | (345   | )                     |                         |   | 154    |      |  |   | 11,675  |   |  |   | 341     |  
|Cash flows from financing activities                           |  |                              |        |                       |                         |   |        |      |  |   |         |   |  |   |         |  
|Net increase (decrease) in loans payable                       |  |                              | (361   | )                     |                         |   | 223    |      |  |   | (5,539  | ) |  |   | 1,069   |  
|Long-term debt  borrowings                                    |  |                              | 58     |                       |                         |   | 13     |      |  |   | 23,766  |   |  |   | 10,532  |  
|Long-term debt  repayments                                    |  |                              | (146   | )                     |                         |   |       |      |  |   | (26,749 | ) |  |   | (16,127 | )
|Net financing activity with Automotive & Other                 |  |                              |       |                       |                         |   |       |      |  |   |        |   |  |   | (500    | )
|Cash dividends paid to stockholders                            |  |                              | (141   | )                     |                         |   | (283   | )    |  |   |        |   |  |   |        |  
|Other                                                          |  |                              |       |                       |                         |   |       |      |  |   | 1,081   |   |  |   | 1,566   |  
|                                                               |  |                              |        |                       |                         |   |        |      |  |   |         |  
|Net cash provided by (used in) financing activities            |  |                              | (590   | )                     |                         |   | (47    | )    |  |   | (7,441  | ) |  |   | (3,460  | )
|Effect of exchange rate changes on cash and cash equivalents   |  |                              | 56     |                       |                         |   | (369   | )    |  |   | (3      | ) |  |   | (75     | )
|Net transactions with Automotive/ Financing Operations         |  |                              | 157    |                       |                         |   | (126   | )    |  |   | (157    | ) |  |   | 126     |  
|                                                               |  |                              |        |                       |                         |   |        |      |  |   |         |  
|Net increase (decrease) in cash and cash equivalents           |  |                              | 2,240  |                       |                         |   | (2,943 | )    |  |   | 1,902   |   |  |   | (6,661  | )
|Cash and cash equivalents at beginning of the period           |  |                              | 15,187 |                       |                         |   | 13,148 |      |  |   | 15,539  |   |  |   | 22,845  |  
|                                                               |  |                              |        |                       |                         |   |        |      |  |   |         |  
|Cash and cash equivalents at end of the period                 |  | $                            | 17,427 |                       |                         | $ | 10,205 |      |  | $ | 17,441  |   |  | $ | 16,184  |  
|                                                               |  |                              |        |                       |                         |   |        |      |  |   |         |  





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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES





NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(Unaudited)




|        |                                 
|------- | --------------------------------
|Note 1. | Financial Statement Presentation

10-K










| |   |                                                                                                                                                                                                                                                                               
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | GMs four automotive regions: GM North America (GMNA),
    GM Europe (GME), GM Latin America/Africa/Mid-East
    (GMLAAM), and GM Asia Pacific (GMAP), which constitute
    GM Automotive (GMA); and                                                                          
|
| |  | Other, which includes the elimination of intersegment
    transactions, certain non-segment specific revenues and
    expenditures, including legacy costs related to postretirement
    benefits for certain Delphi and other retirees, and certain
    corporate activities.



Consolidation of GM
Daewoo




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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|        |                                                   
|------- | --------------------------------------------------
|Note 1. | Financial Statement
    Presentation  (continued)



|                             |  |                       |  |           |       | 
|---------------------------- |  | --------------------- |  | --------- | ----- | 
|                             |  | Three Months Ended    | 
|                             |  | March 31,             | 
|                             |  |                       | 
|                             |  | 2006                  |  | 2005      |      
|                             |  |                       |  |           |      
|                             |  | Actual                |  | Pro Forma |      
|                             |  |                       |  |           |      
|                             |  | (Dollars in millions) | 
|Total net sales and revenues |  | $1,618                |  | $         | 1,171 | 

Change in Accounting
Principle




New Accounting
Standards






I-8



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|        |                                                   
|------- | --------------------------------------------------
|Note 1. | Financial Statement
    Presentation  (concluded)

123(R)-3,






45-3, 45-3


D-1




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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|        |            
|------- | -----------
|Note 2. | Inventories



|                                                   |                           |                     |                                     |        |          |        |        |           |        |        |        |        |        |        | 
|-------------------------------------------------- | ------------------------- | ------------------- | ----------------------------------- | ------ | -------- | ------ | ------ | --------- | ------ | ------ | ------ | ------ | ------ | ------ | 
|                                                   |                           | March 31,           |                                     |        | Dec. 31, |        |        | March 31, |       
|                                                   |                           | 2006                |                                     |        | 2005     |        |        | 2005      |       
|                                                   |                           |                     |                                     |        |          |        |        |           |       
|Automotive and Other Operations                    |                           |                     |                                     |        |          |        |        |           |        |        |        |       
|Productive material, work in process, and supplies |                           | $                   | 5,888                               |        |          | $      | 5,471  |           |        | $      | 5,179  |       
|Finished product, service parts, etc.              |                           |                     | 10,465                              |        |          |        | 9,871  |           |        |        | 8,999  |       
|                                                   |                           |                     |                                     |        |          |        |        |           |       
|                                                   | Total inventories at FIFO |                     |                                     | 16,353 |          |        |        | 15,342    |        |        |        | 14,178 |       
|                                                   |                           | Less LIFO allowance |                                     |        | (1,491   | )      |        |           | (1,491 | )      |        |        | (1,442 | )     
|                                                   |                           |                     |                                     |        |          |        |        |           |       
|                                                   |                           |                     | Total inventories (less allowances) |        | $        | 14,862 |        |           | $      | 13,851 |        |        | $      | 12,736 | 
|Financing and Insurance Operations                 |                           |                     |                                     |        |          |        |        |           |        |        |        |       
|Off-lease vehicles                                 |                           |                     | 657                                 |        |          |        | 503    |           |        |        | 453    |       
|                                                   |                           |                     |                                     |        |          |        |        |           |       
|Total consolidated inventories (less allowances)   |                           | $                   | 15,519                              |        |          | $      | 14,354 |           |        | $      | 13,189 |       
|                                                   |                           |                     |                                     |        |          |        |        |           |       



|        |                                        
|------- | ---------------------------------------
|Note 3. | Goodwill and Acquired Intangible Assets



|                                                  |                                          |                                      |   |     |              |  |   |              |    |   |       |       |       | 
|------------------------------------------------- | ---------------------------------------- | ------------------------------------ | - | --- | ------------ |  | - | ------------ | -- | - | ----- | ----- | ----- | 
|                                                  |                                          | Gross Carrying                       |   |     | Accumulated  |  |   | Net Carrying |   
|                                                  |                                          | Amount                               |   |     | Amortization |  |   | Amount       |   
|                                                  |                                          |                                      |   |     |              |  |   |              |   
|March 31, 2006                                    |                                          |                                      |   |     |              |  |   |              |    |   |       |      
|Automotive and Other Operations                   |                                          |                                      |   |     |              |  |   |              |    |   |       |      
|Amortizing intangible assets:                     |                                          |                                      |   |     |              |  |   |              |    |   |       |      
|                                                  | Patents and intellectual property rights |                                      | $ | 510 |              |  | $ | 159          |    |   | $     | 351   |      
|Non-amortizing intangible assets:                 |                                          |                                      |   |     |              |  |   |              |    |   |       |      
|                                                  | Goodwill                                 |                                      |   |     |              |  |   |              |    |   |       | 753   |      
|                                                  | Pension intangible asset                 |                                      |   |     |              |  |   |              |    |   |       | 747   |      
|                                                  |                                          |                                      |   |     |              |  |   |              |   
|                                                  |                                          | Total goodwill and intangible assets |   |     |              |  |   |              |    |   |       | $     | 1,851 | 
|                                                  |                                          |                                      |   |     |              |  |   |              |   
|Financing and Insurance Operations                |                                          |                                      |   |     |              |  |   |              |    |   |       |      
|Amortizing intangible assets:                     |                                          |                                      |   |     |              |  |   |              |    |   |       |      
|                                                  | Customer lists and contracts             |                                      | $ | 117 |              |  | $ | 45           |    |   |       | 72    |      
|                                                  | Trademarks and other                     |                                      |   | 35  |              |  |   | 21           |    |   |       | 14    |      
|                                                  |                                          |                                      |   |     |              |  |   |              |   
|                                                  |                                          | Total                                |   | $   | 152          |  |   | $            | 66 |   |       | $     | 86    | 
|                                                  |                                          |                                      |   |     |              |  |   |              |   
|Non-amortizing intangible assets:                 |                                          |                                      |   |     |              |  |   |              |    |   |       |      
|                                                  | Goodwill                                 |                                      |   |     |              |  |   |              |    |   |       | 2,521 |      
|                                                  |                                          |                                      |   |     |              |  |   |              |   
|                                                  |                                          | Total goodwill and intangible assets |   |     |              |  |   |              |    |   |       |       | 2,607 | 
|                                                  |                                          |                                      |   |     |              |  |   |              |   
|Total consolidated goodwill and intangible assets |                                          |                                      |   |     |              |  |   |              |    | $ | 4,458 |      
|                                                  |                                          |                                      |   |     |              |  |   |              |   

I-10



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|        |                                                          
|------- | ---------------------------------------------------------
|Note 3. | Goodwill and Acquired Intangible
    Assets  (concluded)

|                                                  |                                          |                                      |   |     |              |  |   |              |    |   |       |       |       | 
|------------------------------------------------- | ---------------------------------------- | ------------------------------------ | - | --- | ------------ |  | - | ------------ | -- | - | ----- | ----- | ----- | 
|                                                  |                                          | Gross Carrying                       |   |     | Accumulated  |  |   | Net Carrying |   
|                                                  |                                          | Amount                               |   |     | Amortization |  |   | Amount       |   
|                                                  |                                          |                                      |   |     |              |  |   |              |   
|March 31, 2005                                    |                                          |                                      |   |     |              |  |   |              |    |   |       |      
|Automotive and Other Operations                   |                                          |                                      |   |     |              |  |   |              |    |   |       |      
|Amortizing intangible assets:                     |                                          |                                      |   |     |              |  |   |              |    |   |       |      
|                                                  | Patents and intellectual property rights |                                      | $ | 303 |              |  | $ | 71           |    |   | $     | 232   |      
|Non-amortizing intangible assets:                 |                                          |                                      |   |     |              |  |   |              |    |   |       |      
|                                                  | Goodwill                                 |                                      |   |     |              |  |   |              |    |   |       | 571   |      
|                                                  | Pension intangible asset                 |                                      |   |     |              |  |   |              |    |   |       | 747   |      
|                                                  |                                          |                                      |   |     |              |  |   |              |   
|                                                  |                                          | Total goodwill and intangible assets |   |     |              |  |   |              |    |   |       | $     | 1,550 | 
|                                                  |                                          |                                      |   |     |              |  |   |              |   
|Financing and Insurance Operations                |                                          |                                      |   |     |              |  |   |              |    |   |       |      
|Amortizing intangible assets:                     |                                          |                                      |   |     |              |  |   |              |    |   |       |      
|                                                  | Customer lists and contracts             |                                      | $ | 74  |              |  | $ | 43           |    |   |       | 31    |      
|                                                  | Trademarks and other                     |                                      |   | 40  |              |  |   | 21           |    |   |       | 19    |      
|                                                  |                                          |                                      |   |     |              |  |   |              |   
|                                                  |                                          | Total                                |   | $   | 114          |  |   | $            | 64 |   |       | $     | 50    | 
|                                                  |                                          |                                      |   |     |              |  |   |              |   
|Non-amortizing intangible assets:                 |                                          |                                      |   |     |              |  |   |              |    |   |       |      
|                                                  | Goodwill                                 |                                      |   |     |              |  |   |              |    |   |       | 3,264 |      
|                                                  |                                          |                                      |   |     |              |  |   |              |   
|                                                  |                                          | Total goodwill and intangible assets |   |     |              |  |   |              |    |   |       |       | 3,314 | 
|                                                  |                                          |                                      |   |     |              |  |   |              |   
|Total consolidated goodwill and intangible assets |                                          |                                      |   |     |              |  |   |              |    | $ | 4,864 |      
|                                                  |                                          |                                      |   |     |              |  |   |              |   





|                                                 |  |      |     |   |     |       |     |              |  |   |      |   |  |          |       |   |  |   |       |  
|------------------------------------------------ |  | ---- | --- | - | --- | ----- | --- | ------------ |  | - | ---- | - |  | -------- | ----- | - |  | - | ----- | -
|                                                 |  |      |     |   |     | Total |     |              |  |   |     
|                                                 |  | GMNA |     |   | GME |       |     | Auto & Other |  |   | GMAC |   |  | Total GM |      
|                                                 |  |      |     |   |     |       |     |              |  |   |      |   |  |          |      
|Balance as of December 31, 2005                  |  | $    | 383 |   |     | $     | 374 |              |  | $ | 757  |   |  | $        | 2,446 |   |  | $ | 3,203 |  
|Goodwill acquired during the period              |  |      |    |   |     |       |    |              |  |   |     |   |  |          | 71    |   |  |   | 71    |  
|Other                                            |  |      | (16 | ) |     |       |    |              |  |   | (16  | ) |  |          | (2    | ) |  |   | (18   | )
|Transfer of business unit                        |  |      | (61 | ) |     |       | 61  |              |  |   |     |   |  |          |      |   |  |   |      |  
|Effect of foreign currency translation and other |  |      | 2   |   |     |       | 10  |              |  |   | 12   |   |  |          | 6     |   |  |   | 18    |  
|                                                 |  |      |     |   |     |       |     |              |  |   |      |   |  |          |      
|Balance as of March 31, 2006                     |  | $    | 308 |   |     | $     | 445 |              |  | $ | 753  |   |  | $        | 2,521 |   |  | $ | 3,274 |  
|                                                 |  |      |     |   |     |       |     |              |  |   |      |   |  |          |      
|Balance as of December 31, 2004                  |  | $    | 154 |   |     | $     | 446 |              |  | $ | 600  |   |  | $        | 3,274 |   |  | $ | 3,874 |  
|Goodwill acquired during the period              |  |      |    |   |     |       |    |              |  |   |     |   |  |          | 3     |   |  |   | 3     |  
|Effect of foreign currency translation           |  |      | (3  | ) |     |       | (26 | )            |  |   | (29  | ) |  |          | (13   | ) |  |   | (42   | )
|                                                 |  |      |     |   |     |       |     |              |  |   |      |   |  |          |      
|Balance as of March 31, 2005                     |  | $    | 151 |   |     | $     | 420 |              |  | $ | 571  |   |  | $        | 3,264 |   |  | $ | 3,835 |  
|                                                 |  |      |     |   |     |       |     |              |  |   |      |   |  |          |      

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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|        |                                         
|------- | ----------------------------------------
|Note 4. | Investment in Nonconsolidated Affiliates

GM-Fiat


|                                                            |  |                 |    |  |      |   |    |  
|----------------------------------------------------------- |  | --------------- | -- |  | ---- | - | -- | -
|                                                            |  | Three Months    |   
|                                                            |  | Ended March 31, |   
|                                                            |  |                 |   
|GMs Share Of Nonconsolidated Affiliates Net Income (Loss) |  | 2006            |    |  | 2005 |  
|                                                            |  |                 |    |  |      |  
|Italy                                                       |  |                 | NA |  |      | $ | 21 |  
|Japan                                                       |  | $               | 21 |  |      | $ | 50 |  
|China                                                       |  | $               | 70 |  |      | $ | 33 |  
|Korea                                                       |  |                 | NA |  |      | $ | (8 | )





|        |                           
|------- | --------------------------
|Note 5. | Product Warranty Liability



|                                                        |  |                |        |   |               |   |        |                |  |   |        |  
|------------------------------------------------------- |  | -------------- | ------ | - | ------------- | - | ------ | -------------- |  | - | ------ | -
|                                                        |  | Three Months   |        |   | Twelve Months |   |        | Three Months   | 
|                                                        |  | Ended          |        |   | Ended         |   |        | Ended          | 
|                                                        |  | March 31, 2006 |        |   | Dec. 31, 2005 |   |        | March 31, 2005 | 
|                                                        |  |                |        |   |               |   |        |                | 
|Beginning balance                                       |  | $              | 9,128  |   |               | $ | 9,315  |                |  | $ | 9,133  |  
|Payments                                                |  |                | (1,119 | ) |               |   | (4,696 | )              |  |   | (1,209 | )
|Increase in liability (warranties issued during period) |  |                | 1,090  |   |               |   | 5,159  |                |  |   | 1,221  |  
|Adjustments to liability (pre-existing warranties)      |  |                | (11    | ) |               |   | (381   | )              |  |   | 5      |  
|Effect of foreign currency translation                  |  |                | 46     |   |               |   | (269   | )              |  |   | (110   | )
|                                                        |  |                |        |   |               |   |        |                | 
|Ending balance                                          |  | $              | 9,134  |   |               | $ | 9,128  |                |  | $ | 9,040  |  
|                                                        |  |                |        |   |               |   |        |                | 





|        |                                                    
|------- | ---------------------------------------------------
|Note 6. | Postemployment Benefit Costs (Plant Idling Reserve)



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|        |                                                                      
|------- | ---------------------------------------------------------------------
|Note 6. | Postemployment Benefit Costs (Plant Idling
    Reserve)  (concluded)











|                  |                    |                |       |      |               |   |       |                |   |   |     |     |  
|----------------- | ------------------ | -------------- | ----- | ---- | ------------- | - | ----- | -------------- | - | - | --- | --- | -
|                  |                    | Three Months   |       |      | Twelve Months |   |       | Three Months   |  
|                  |                    | Ended          |       |      | Ended         |   |       | Ended          |  
|                  |                    | March 31, 2006 |       |      | Dec. 31, 2005 |   |       | March 31, 2005 |  
|                  |                    |                |       |      |               |   |       |                |  
|Beginning balance |                    | $              | 2,012 |      |               | $ | 237   |                |   | $ | 237 |    
|                  | Spending           |                |       | (109 | )             |   |       | (91            | ) |   |     | (30 | )
|                  | Interest accretion |                |       | 8    |               |   |       | 12             |   |   |     | 3   |  
|                  | Additions          |                |       |     |               |   |       | 1,891          |   |   |     |    |  
|                  | Adjustments        |                |       | (136 | )             |   |       | (37            | ) |   |     |    |  
|                  |                    |                |       |      |               |   |       |                |  
|Ending balance    |                    | $              | 1,775 |      |               | $ | 2,012 |                |   | $ | 210 |    
|                  |                    |                |       |      |               |   |       |                |  



|        |                                   
|------- | ----------------------------------
|Note 7. | Commitments and Contingent Matters

Commitments




I-13



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|        |                                                     
|------- | ----------------------------------------------------
|Note 7. | Commitments and Contingent
    Matters  (continued)











Contingent Matters






Delphi Bankruptcy




I-14



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|        |                                                     
|------- | ----------------------------------------------------
|Note 7. | Commitments and Contingent
    Matters  (continued)















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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|        |                                                     
|------- | ----------------------------------------------------
|Note 7. | Commitments and Contingent
    Matters  (continued)















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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|        |                                                     
|------- | ----------------------------------------------------
|Note 7. | Commitments and Contingent
    Matters  (concluded)







10-K


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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|        |                            
|------- | ---------------------------
|Note 8. | Comprehensive Income (Loss)



|                                  |       |                 |     |     |      |   |        |        |  
|--------------------------------- | ----- | --------------- | --- | --- | ---- | - | ------ | ------ | -
|                                  |       | Three Months    |    
|                                  |       | Ended March 31, |    
|                                  |       |                 |    
|                                  |       | 2006            |     |     | 2005 |  
|                                  |       |                 |     |     |      |  
|Net income (loss)                 |       | $               | 445 |     |      | $ | (1,253 | )     
|Other comprehensive income (loss) |       |                 | 526 |     |      |   | (726   | )     
|                                  |       |                 |     |     |      |  
|                                  | Total |                 | $   | 971 |      |   | $      | (1,979 | )
|                                  |       |                 |     |     |      |  



|        |                                                       
|------- | ------------------------------------------------------
|Note 9. | Earnings (Loss) Per Share Attributable to Common Stock



|                                  |                                                     |                              |   |        |        |  |           |        |  |  |   |       |  
|--------------------------------- | --------------------------------------------------- | ---------------------------- | - | ------ | ------ |  | --------- | ------ |  |  | - | ----- | -
|                                  |                                                     | $12/3 Par Value Common Stock |  
|                                  |                                                     |                              |  
|                                  |                                                     | Income                       |   |        |        |  | Per Share |       
|                                  |                                                     | (Loss)                       |   |        | Shares |  |           | Amount | 
|                                  |                                                     |                              |   |        |        |  |           |        | 
|Three Months Ended March 31, 2006 |                                                     |                              |   |        |        |  |           |        |  |  |   |      
|Basic EPS                         |                                                     |                              |   |        |        |  |           |        |  |  |   |      
|                                  | Income (loss) attributable to common stock          |                              | $ | 445    |        |  |           | 566    |  |  | $ | 0.79  |  
|Effect of Dilutive Securities     |                                                     |                              |   |        |        |  |           |        |  |  |   |      
|                                  | Assumed exercise of dilutive stock options          |                              |   |       |        |  |           | 3      |  |  |   |      |  
|                                  |                                                     |                              |   |        |        |  |           |        | 
|Diluted EPS                       |                                                     |                              |   |        |        |  |           |        |  |  |   |      
|                                  | Adjusted income (loss) attributable to common stock |                              | $ | 445    |        |  |           | 569    |  |  | $ | 0.78  |  
|                                  |                                                     |                              |   |        |        |  |           |        | 
|Three Months Ended March 31, 2005 |                                                     |                              |   |        |        |  |           |        |  |  |   |      
|Basic EPS                         |                                                     |                              |   |        |        |  |           |        |  |  |   |      
|                                  | Income (loss) attributable to common stock          |                              | $ | (1,253 | )      |  |           | 565    |  |  | $ | (2.22 | )
|Effect of Dilutive Securities     |                                                     |                              |   |        |        |  |           |        |  |  |   |      
|                                  | Assumed exercise of dilutive stock options          |                              |   |       |        |  |           |       |  |  |   |      |  
|                                  |                                                     |                              |   |        |        |  |           |        | 
|Diluted EPS                       |                                                     |                              |   |        |        |  |           |        |  |  |   |      
|                                  | Adjusted income (loss) attributable to common stock |                              | $ | (1,253 | )      |  |           | 565    |  |  | $ | (2.22 | )
|                                  |                                                     |                              |   |        |        |  |           |        | 

2 3


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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|         |                              
|-------- | -----------------------------
|Note 10. | Depreciation and Amortization



|                                  |       |                 |       |       |      |   |       |       | 
|--------------------------------- | ----- | --------------- | ----- | ----- | ---- | - | ----- | ----- | 
|                                  |       | Three Months    |      
|                                  |       | Ended March 31, |      
|                                  |       |                 |      
|                                  |       | 2006            |       |       | 2005 |  
|                                  |       |                 |       |       |      |  
|Depreciation                      |       | $               | 1,114 |       |      | $ | 1,270 |      
|Amortization of special tools     |       |                 | 733   |       |      |   | 816   |      
|Amortization of intangible assets |       |                 | 14    |       |      |   | 10    |      
|                                  |       |                 |       |       |      |  
|                                  | Total |                 | $     | 1,861 |      |   | $     | 2,096 | 
|                                  |       |                 |       |       |      |  



|         |                                           
|-------- | ------------------------------------------
|Note 11. | Pensions and Other Postretirement Benefits

|                                     |  |                       |        |   |                  |   |        |                 |  |   |                 |   |  |      |      |   |      |   |       |      |  |   |       |   |  |   |     |   |  |   |    | 
|------------------------------------ |  | --------------------- | ------ | - | ---------------- | - | ------ | --------------- |  | - | --------------- | - |  | ---- | ---- | - | ---- | - | ----- | ---- |  | - | ----- | - |  | - | --- | - |  | - | -- | 
|                                     |  | U.S. Plans            |        |   | Non-U.S. Plans   |   |        | U.S. Other      |  |   | Non-U.S.        |  
|                                     |  | Pension Benefits      |        |   | Pension Benefits |   |        | Benefits        |  |   | Other Benefits  |  
|                                     |  |                       |        |   |                  |   |        |                 |  |   |                 |  
|                                     |  | Three Months          |        |   | Three Months     |   |        | Three Months    |  |   | Three Months    |  
|                                     |  | Ended March 31,       |        |   | Ended March 31,  |   |        | Ended March 31, |  |   | Ended March 31, |  
|                                     |  |                       |        |   |                  |   |        |                 |  |   |                 |  
|                                     |  | 2006                  |        |   | 2005             |   |        | 2006            |  |   | 2005            |   |  | 2006 |      |   | 2005 |   |       | 2006 |  |   | 2005  |  
|                                     |  |                       |        |   |                  |   |        |                 |  |   |                 |   |  |      |      |   |      |   |       |      |  |   |       |  
|                                     |  | (Dollars in millions) |       
|Components of expense                |  |                       |        |   |                  |   |        |                 |  |   |                 |   |  |      |      |   |      |   |       |      |  |   |       |   |  |   |     |   |  |   |    | 
|Service cost                         |  | $                     | 253    |   |                  | $ | 279    |                 |  | $ | 113             |   |  | $    | 72   |   |      | $ | 176   |      |  | $ | 176   |   |  | $ | 13  |   |  | $ | 12 | 
|Interest cost                        |  |                       | 1,219  |   |                  |   | 1,221  |                 |  |   | 211             |   |  |      | 241  |   |      |   | 1,077 |      |  |   | 1,027 |   |  |   | 47  |   |  |   | 54 | 
|Expected return on plan assets       |  |                       | (2,014 | ) |                  |   | (1,974 | )               |  |   | (174            | ) |  |      | (185 | ) |      |   | (375  | )    |  |   | (421  | ) |  |   |    |   |  |   |   | 
|Amortization of prior service cost   |  |                       | 273    |   |                  |   | 291    |                 |  |   | 25              |   |  |      | 27   |   |      |   | (28   | )    |  |   | (18   | ) |  |   | (20 | ) |  |   | 2  | 
|Recognized net actuarial loss        |  |                       | 406    |   |                  |   | 517    |                 |  |   | 94              |   |  |      | 69   |   |      |   | 619   |      |  |   | 562   |   |  |   | 32  |   |  |   | 22 | 
|Curtailments, settlements, and other |  |                       | 23     |   |                  |   | 91     |                 |  |   | 13              |   |  |      | 59   |   |      |   |      |      |  |   |      |   |  |   |    |   |  |   |   | 
|                                     |  |                       |        |   |                  |   |        |                 |  |   |                 |   |  |      |      |   |      |   |       |      |  |   |       |  
|Net expense                          |  | $                     | 160    |   |                  | $ | 425    |                 |  | $ | 282             |   |  | $    | 283  |   |      | $ | 1,469 |      |  | $ | 1,326 |   |  | $ | 72  |   |  | $ | 90 | 
|                                     |  |                       |        |   |                  |   |        |                 |  |   |                 |   |  |      |      |   |      |   |       |      |  |   |       |  







|         |                                    
|-------- | -----------------------------------
|Note 12. | Restructuring and Other Initiatives



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|         |                                                      
|-------- | -----------------------------------------------------
|Note 12. | Restructuring and Other Initiatives 
    (concluded)











|         |                      
|-------- | ---------------------
|Note 13. | Stock Incentive Plans







| |                 
| | ----------------
| | GMSIP and GMSSOP

2 3


2 3 2 3


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---



##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|         |                                    
|-------- | -----------------------------------
|Note 13. | Stock Incentive Plans  (continued)





|                      |  |              |      |   |              |  |   |     |  |  |      |   |  |  |   | 
|--------------------- |  | ------------ | ---- | - | ------------ |  | - | --- |  |  | ---- | - |  |  | - | 
|                      |  | Three Months |      |   | Three Months | 
|                      |  | Ended        |      |   | Ended        | 
|                      |  | March 31,    |      |   | March 31,    | 
|                      |  | 2006         |      |   | 2005         | 
|                      |  |              |      |   |              | 
|                      |  | GM           |      |   | GM           |  |   | GM  |  |  | GM   |  
|                      |  | SIP          |      |   | SSOP         |  |   | SIP |  |  | SSOP |  
|                      |  |              |      |   |              |  |   |     |  |  |      |  
|Interest rate         |  |              | 4.63 | % |              |  |  |     |  |  | 3.74 | % |  |  |  | 
|Expected life (years) |  |              | 6    |   |              |  |  |     |  |  | 6    |   |  |  |  | 
|Expected volatility   |  |              | 48   | % |              |  |  |     |  |  | 32   | % |  |  |  | 
|Dividend yield        |  |              | 4.78 | % |              |  |  |     |  |  | 5.5  | % |  |  |  | 



|                                       |  |                        |            |           |          |   |           |             |  |           |           |  |  |   |           | 
|-------------------------------------- |  | ---------------------- | ---------- | --------- | -------- | - | --------- | ----------- |  | --------- | --------- |  |  | - | --------- | 
|                                       |  | GMSIP                  |           
|                                       |  | $12/3 Par Value Common |           
|                                       |  |                        |           
|                                       |  |                        |            | Weighted  |          |   |          
|                                       |  |                        |            | Weighted- |          |   | Average   |             |  |          
|                                       |  |                        |            | Average   |          |   | Remaining |             |  | Aggregate |          
|                                       |  | Shares under           |            |           | Exercise |   |           | Contractual |  |           | Intrinsic | 
|                                       |  | Option                 |            |           | Price    |   |           | Term        |  |           | Value     | 
|                                       |  |                        |            |           |          |   |           |             |  |           |           | 
|Options outstanding at January 1, 2006 |  |                        | 84,130,586 |           |          | $ | 53.11     |             |  |           |           |  |  |   |           | 
|Granted                                |  |                        | 2,702,796  |           |          | $ | 20.90     |             |  |           |           |  |  |   |           | 
|Exercised                              |  |                        |            |           |          |   |          |             |  |           |           |  |  |   |           | 
|Terminated                             |  |                        | 2,861,108  |           |          | $ | 42.98     |             |  |           |           |  |  |   |           | 
|                                       |  |                        |            |           |          |   |           |             |  |           |           | 
|Options outstanding at March 31, 2006  |  |                        | 83,972,274 |           |          | $ | 52.39     |             |  |           | 5.3       |  |  | $ | 1,007,661 | 
|                                       |  |                        |            |           |          |   |           |             |  |           |           | 
|Options exercisable at March 31, 2006  |  |                        | 73,660,530 |           |          | $ | 54.61     |             |  |           | 4.8       |  |  |   |          | 
|                                       |  |                        |            |           |          |   |           |             |  |           |           | 

|                                       |  |                        |            |           |          |   |           |             |  |           |           |  |  |  |   | 
|-------------------------------------- |  | ---------------------- | ---------- | --------- | -------- | - | --------- | ----------- |  | --------- | --------- |  |  |  | - | 
|                                       |  | GMSSOP                 |           
|                                       |  | $12/3 Par Value Common |           
|                                       |  |                        |           
|                                       |  |                        |            | Weighted  |          |   |          
|                                       |  |                        |            | Weighted- |          |   | Average   |             |  |          
|                                       |  |                        |            | Average   |          |   | Remaining |             |  | Aggregate |          
|                                       |  | Shares under           |            |           | Exercise |   |           | Contractual |  |           | Intrinsic | 
|                                       |  | Option                 |            |           | Price    |   |           | Term        |  |           | Value     | 
|                                       |  |                        |            |           |          |   |           |             |  |           |           | 
|Options outstanding at January 1, 2006 |  |                        | 27,213,635 |           |          | $ | 55.19     |             |  |           |           |  |  |  |   | 
|Granted                                |  |                        |           |           |          |   |          |             |  |           |           |  |  |  |   | 
|Exercised                              |  |                        |           |           |          |   |          |             |  |           |           |  |  |  |   | 
|Terminated                             |  |                        | 97,651     |           |          | $ | 53.65     |             |  |           |           |  |  |  |   | 
|                                       |  |                        |            |           |          |   |           |             |  |           |           | 
|Options outstanding at March 31, 2006  |  |                        | 27,115,984 |           |          | $ | 55.20     |             |  |           | 5.1       |  |  |  |  | 
|                                       |  |                        |            |           |          |   |           |             |  |           |           | 
|Options exercisable at March 31, 2006  |  |                        | 27,115,984 |           |          | $ | 55.20     |             |  |           | 5.1       |  |  |  |  | 
|                                       |  |                        |            |           |          |   |           |             |  |           |           | 

I-21



---



##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|         |                                    
|-------- | -----------------------------------
|Note 13. | Stock Incentive Plans  (continued)





| |       
| | ------
| | GMLTIP

2 3


2 3




|                        |  |                    |      |  
|----------------------- |  | ------------------ | ---- | -
|                        |  | Three Months Ended
|                        |  | March 31, 2006    
|                        |  |                   
|Expected volatility     |  |                    | 64   | %
|Expected dividends      |  |                    | N/A  |  
|Expected term (years)   |  |                    | 2-3  |  
|Risk-free interest rate |  |                    | 5.26 | %

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---



##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|         |                                    
|-------- | -----------------------------------
|Note 13. | Stock Incentive Plans  (concluded)





| |       
| | ------
| | GMCRSU









| |        
| | -------
| | Summary



|                             |  |        |            |            |            |   |       | 
|---------------------------- |  | ------ | ---------- | ---------- | ---------- | - | ----- | 
|                             |  |        |            | Weighted-  |           
|                             |  |        |            | Average    |           
|                             |  |        |            | Grant-Date |           
|                             |  | Shares |            |            | Fair Value |  
|                             |  |        |            |            |            |  
|Nonvested at January 1, 2006 |  |        | 15,923,106 |            |            | $ | 9.28  | 
|Granted                      |  |        | 2,702,796  |            |            |   | 20.90 | 
|Vested                       |  |        | 8,258,058  |            |            |   | 9.47  | 
|Forfeited                    |  |        | 56,100     |            |            |   | 8.80  | 
|                             |  |        |            |            |            |  
|Nonvested at March 31, 2006  |  |        | 10,311,744 |            |            | $ | 8.54  | 





I-23



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|         |                  
|-------- | -----------------
|Note 14. | Segment Reporting

|                                             |  |                       |         |   |     |   |        |        |  |       |       |  |  |     |        |  |       |   |         |       |  |   |        |   |  |           |         |   |           |   |         |  |  |   |      |   |  |   |         | 
|-------------------------------------------- |  | --------------------- | ------- | - | --- | - | ------ | ------ |  | ----- | ----- |  |  | --- | ------ |  | ----- | - | ------- | ----- |  | - | ------ | - |  | --------- | ------- | - | --------- | - | ------- |  |  | - | ---- | - |  | - | ------- | 
|                                             |  |                       |         |   |     |   |        |        |  | Total |       |  |  |     | Auto & |  |       |   |         | Other |  |   | Total  |  
|                                             |  | GMNA                  |         |   | GME |   |        | GMLAAM |  |       | GMAP  |  |  | GMA |        |  | Other |   |         | Other |  |   | GMAC   |   |  | Financing |         |   | Financing |  
|                                             |  |                       |         |   |     |   |        |        |  |       |       |  |  |     |        |  |       |   |         |       |  |   |        |   |  |           |         |   |           |  
|                                             |  | (Dollars in millions) |        
|For the Three Months Ended March 31, 2006    |  |                       |         |   |     |   |        |        |  |       |       |  |  |     |        |  |       |   |         |       |  |   |        |   |  |           |         |   |           |   |         |  |  |   |      |   |  |   |         | 
|Manufactured products sales and revenues:    |  |                       |         |   |     |   |        |        |  |       |       |  |  |     |        |  |       |   |         |       |  |   |        |   |  |           |         |   |           |   |         |  |  |   |      |   |  |   |         | 
|External customers and other income          |  | $                     | 29,870  |   |     | $ | 7,601  |        |  | $     | 2,962 |  |  | $   | 3,262  |  |       | $ | 43,695  |       |  | $ | (305   | ) |  | $         | 43,390  |   |           | $ | 8,822   |  |  | $ | 33   |   |  | $ | 8,855   | 
|Intersegment                                 |  |                       | (1,339  | ) |     |   | 490    |        |  |       | 178   |  |  |     | 671    |  |       |   |        |       |  |   |       |   |  |           |        |   |           |   |        |  |  |   |     |   |  |   |        | 
|                                             |  |                       |         |   |     |   |        |        |  |       |       |  |  |     |        |  |       |   |         |       |  |   |        |   |  |           |         |   |           |  
|Total manufactured products                  |  | $                     | 28,531  |   |     | $ | 8,091  |        |  | $     | 3,140 |  |  | $   | 3,933  |  |       | $ | 43,695  |       |  | $ | (305   | ) |  | $         | 43,390  |   |           | $ | 8,822   |  |  | $ | 33   |   |  | $ | 8,855   | 
|                                             |  |                       |         |   |     |   |        |        |  |       |       |  |  |     |        |  |       |   |         |       |  |   |        |   |  |           |         |   |           |  
|Interest income(a)                           |  | $                     | 305     |   |     | $ | 107    |        |  | $     | 20    |  |  | $   | 25     |  |       | $ | 457     |       |  | $ | (265   | ) |  | $         | 192     |   |           | $ | 605     |  |  | $ | (154 | ) |  | $ | 451     | 
|Interest expense                             |  |                       | 798     |   |     |   | 153    |        |  |       | 28    |  |  |     | 55     |  |       |   | 1,034   |       |  |   | (350   | ) |  |           | 684     |   |           |   | 3,562   |  |  |   | (17  | ) |  |   | 3,545   | 
|Net income (loss)                            |  |                       | (503    | ) |     |   | 48     |        |  |       | 29    |  |  |     | 453    |  |       |   | 27      |       |  |   | (220   | ) |  |           | (193    | ) |           |   | 637     |  |  |   | 1    |   |  |   | 638     | 
|Segment assets                               |  |                       | 125,737 |   |     |   | 25,942 |        |  |       | 4,740 |  |  |     | 10,944 |  |       |   | 167,363 |       |  |   | (2,093 | ) |  |           | 165,270 |   |           |   | 303,793 |  |  |   | (790 | ) |  |   | 303,003 | 
|For the Three Months Ended March 31, 2005(b) |  |                       |         |   |     |   |        |        |  |       |       |  |  |     |        |  |       |   |         |       |  |   |        |   |  |           |         |   |           |   |         |  |  |   |      |   |  |   |         | 
|Manufactured products sales and revenues:    |  |                       |         |   |     |   |        |        |  |       |       |  |  |     |        |  |       |   |         |       |  |   |        |   |  |           |         |   |           |   |         |  |  |   |      |   |  |   |         | 
|External customers and other income          |  | $                     | 26,001  |   |     | $ | 7,657  |        |  | $     | 2,134 |  |  | $   | 1,535  |  |       | $ | 37,327  |       |  | $ | (24    | ) |  | $         | 37,303  |   |           | $ | 8,221   |  |  | $ | 249  |   |  | $ | 8,470   | 
|Intersegment                                 |  |                       | (774    | ) |     |   | 451    |        |  |       | 165   |  |  |     | 159    |  |       |   | 1       |       |  |   | (1     | ) |  |           |        |   |           |   |        |  |  |   |     |   |  |   |        | 
|                                             |  |                       |         |   |     |   |        |        |  |       |       |  |  |     |        |  |       |   |         |       |  |   |        |   |  |           |         |   |           |  
|Total manufactured products                  |  | $                     | 25,227  |   |     | $ | 8,108  |        |  | $     | 2,299 |  |  | $   | 1,694  |  |       | $ | 37,328  |       |  | $ | (25    | ) |  | $         | 37,303  |   |           | $ | 8,221   |  |  | $ | 249  |   |  | $ | 8,470   | 
|                                             |  |                       |         |   |     |   |        |        |  |       |       |  |  |     |        |  |       |   |         |       |  |   |        |   |  |           |         |   |           |  
|Interest income(a)                           |  | $                     | 292     |   |     | $ | 95     |        |  | $     | 19    |  |  | $   | 3      |  |       | $ | 409     |       |  | $ | (200   | ) |  | $         | 209     |   |           | $ | 477     |  |  | $ | (94  | ) |  | $ | 383     | 
|Interest expense                             |  |                       | 755     |   |     |   | 114    |        |  |       | 24    |  |  |     | 7      |  |       |   | 900     |       |  |   | (215   | ) |  |           | 685     |   |           |   | 3,001   |  |  |   | (7   | ) |  |   | 2,994   | 
|Net income (loss)                            |  |                       | (1,737  | ) |     |   | (514   | )      |  |       | 31    |  |  |     | 70     |  |       |   | (2,150  | )     |  |   | 168    |   |  |           | (1,982  | ) |           |   | 728     |  |  |   | 1    |   |  |   | 729     | 
|Segment assets                               |  |                       | 124,730 |   |     |   | 25,372 |        |  |       | 4,469 |  |  |     | 4,963  |  |       |   | 159,534 |       |  |   | (4,536 | ) |  |           | 154,998 |   |           |   | 315,252 |  |  |   | 147  |   |  |   | 315,399 | 






|    |                                                                                                                                                                                                                                                                                                                                        
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Interest income is included in net sales and revenues from
    external customers.                                                                                                                                                                                                                                                     
|   
|(b) | 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,
    $33 million of net income and $59 million of segment
    assets from GMNA to GME.

Note 15. Subsequent Events




| |                                           
| | ------------------------------------------
| | Sale of Equity Stake in Isuzu Motors, Ltd.





| |                              
| | -----------------------------
| | Sale of Regional Home Builder



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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Note 15. Subsequent Events  (continued)






| |                                       
| | --------------------------------------
| | Sale of a Controlling Interest in GMAC





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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Note 15. Subsequent Events  (continued)




|                                                                        |                                          |                       |         |         | 
|----------------------------------------------------------------------- | ---------------------------------------- | --------------------- | ------- | ------- | 
|                                                                        |                                          | March 31, 2006        |        
|                                                                        |                                          |                       |        
|                                                                        |                                          | (Dollars in millions) |        
|ASSETS                                                                  |                                          |                       |         |        
|Cash and cash equivalents                                               |                                          | $                     | 13,807  |        
|Marketable securities                                                   |                                          |                       | 18,269  |        
|                                                                        |                                          |                       |        
|                                                                        | Total cash and marketable securities     |                       |         | 32,076  | 
|Finance receivables  net                                               |                                          |                       | 173,375 |        
|Loans held for sale                                                     |                                          |                       | 18,171  |        
|Accounts and notes receivable (less allowances)                         |                                          |                       | 10,261  |        
|Inventories (less allowances)                                           |                                          |                       | 657     |        
|Net equipment on operating leases  (less accumulated
    depreciation) |                                          |                       | 17,541  |        
|Property  net                                                          |                                          |                       | 1,783   |        
|Intangible assets  net                                                 |                                          |                       | 2,607   |        
|Other assets                                                            |                                          |                       | 16,749  |        
|                                                                        |                                          |                       |        
|                                                                        | Total assets                             |                       | $       | 273,220 | 
|                                                                        |                                          |                       |        
|LIABILITIES                                                             |                                          |                       |         |        
|Accounts payable (principally trade)                                    |                                          | $                     | 2,513   |        
|Notes and loans payable                                                 |                                          |                       | 226,035 |        
|Deferred income taxes                                                   |                                          |                       | 1,904   |        
|Accrued expenses and other liabilities                                  |                                          |                       | 26,089  |        
|                                                                        |                                          |                       |        
|Total liabilities                                                       |                                          |                       | 256,541 |        
|Minority interests                                                      |                                          |                       | 46      |        
|                                                                        |                                          |                       |        
|                                                                        | Total liabilities and minority interests |                       | $       | 256,587 | 
|                                                                        |                                          |                       |        







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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Note 15. Subsequent Events  (concluded)










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GENERAL MOTORS CORPORATION AND SUBSIDIARIES







|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|Item 2. | Managements Discussion and Analysis of Financial
    Condition and Results of Operations

Basis of presentation


10-K, 10-Q






| |   |                                                    
| | - | ---------------------------------------------------
| |  | Automotive and Other Operations (Auto & Other); and
|
| |  | Financing and Insurance Operations (FIO).          





| |   |                                                                                                                                                                                                                                                                                                    
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | GMs four automotive regions: GM North America (GMNA),
    GM Europe (GME), GM Latin
    America/Africa/Mid-East
    (GMLAAM), and GM Asia Pacific (GMAP), which constitute
    GM Automotive (GMA); and                                                                                           
|
| |  | Other, which includes the elimination of intersegment
    transactions, certain non-segment specific revenues and
    expenditures, including legacy costs related to postretirement
    benefits for certain Delphi Corporation (Delphi) and other
    retirees, and certain corporate activities.







Overview






| |                  
| | -----------------
| | Financial Results



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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


Financial
Results  (continued)








| |                                               
| | ----------------------------------------------
| | Automotive Operations  Improved Profitability

I-33




| |                          
| | -------------------------
| | Sale of Suzuki Investment





| |                                     
| | ------------------------------------
| | UAW Health Care Settlement Agreement





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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


Financial
Results  (continued)




2 3










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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


Financial
Results  (continued)








Strategy




UAW-GM-Delphi IUE-CWA IUE-CWA




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GENERAL MOTORS CORPORATION AND SUBSIDIARIES




| |                                
| | -------------------------------
| | Financial Results  (concluded)



Strategy  (concluded)










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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


Results of Operations


|                                    |                              |                       |   |        |   |  |   |        |   
|----------------------------------- | ---------------------------- | --------------------- | - | ------ | - |  | - | ------ | --
|                                    |                              | Three Months Ended   
|                                    |                              | March 31,            
|                                    |                              |                      
|Consolidated Results                |                              | 2006                  |   | 2005  
|                                    |                              |                       |   |       
|                                    |                              | (Dollars in millions)
|Consolidated:                       |                              |                       |   |        |   |  |   |       
|                                    | Total net sales and revenues |                       | $ | 52,245 |   |  | $ | 45,773 |   
|                                    | Net income (loss)            |                       | $ | 445    |   |  | $ | (1,253 | ) 
|                                    | Net margin                   |                       |   | 0.9    | % |  |   | (2.7   | )%
|Automotive and Other Operations:    |                              |                       |   |        |   |  |   |       
|                                    | Total net sales and revenues |                       | $ | 43,390 |   |  | $ | 37,303 |   
|                                    | Net income (loss)            |                       | $ | (193   | ) |  | $ | (1,982 | ) 
|Financing and Insurance Operations: |                              |                       |   |        |   |  |   |       
|                                    | Total revenues               |                       | $ | 8,855  |   |  | $ | 8,470  |   
|                                    | Net income                   |                       | $ | 638    |   |  | $ | 729    |   









| |   |                                                 
| | - | ------------------------------------------------
| |  | Consolidated net income of $445 million;        
|
| |  | Improved results at GMNA;                       
|
| |  | Profitability at all other automotive regions;  
|
| |  | Continued profitability at GMAC; and            
|
| |  | Strengthened liquidity position at Auto & Other.

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GENERAL MOTORS CORPORATION AND SUBSIDIARIES




Results of Operations (concluded)




GM Automotive and Other Operations Financial Review


|                                 |                                   |                       |   |        |      |  |   |        |        |  
|-------------------------------- | --------------------------------- | --------------------- | - | ------ | ---- |  | - | ------ | ------ | -
|                                 |                                   | Three Months Ended    |  
|                                 |                                   | March 31,             |  
|                                 |                                   |                       |  
|                                 |                                   | 2006                  |   |        | 2005 | 
|                                 |                                   |                       |   |        |      | 
|                                 |                                   | (Dollars in millions) |  
|Auto & Other:                    |                                   |                       |   |        |      |  |   |       
|                                 | Total net sales and revenues      |                       | $ | 43,390 |      |  | $ | 37,303 |       
|                                 | Net income (loss)                 |                       | $ | (193   | )    |  | $ | (1,982 | )     
|GMA net income (loss) by region: |                                   |                       |   |        |      |  |   |       
|                                 | GMNA                              |                       | $ | (503   | )    |  | $ | (1,737 | )     
|                                 | GME                               |                       |   | 48     |      |  |   | (514   | )     
|                                 | GMLAAM                            |                       |   | 29     |      |  |   | 31     |       
|                                 | GMAP                              |                       |   | 453    |      |  |   | 70     |       
|                                 |                                   |                       |   |        |      | 
|                                 |                                   | Net income (loss)     |   | $      | 27   |  |   | $      | (2,150 | )
|                                 | Net margin                        |                       |   | 0.1    | %    |  |   | (5.8   | )%    
|                                 | GM global automotive market share |                       |   | 13.2   | %    |  |   | 13.3   | %     
|Other Operations:                |                                   |                       |   |        |      |  |   |       
|                                 | Net income (loss)                 |                       | $ | (220   | )    |  | $ | 168    |       





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GENERAL MOTORS CORPORATION AND SUBSIDIARIES




GM Automotive and Other Operations Financial Review
(continued)


GM Automotive Regional Results




| |                 
| | ----------------
| | GM North America

|                   |                                |                       |   |        |       |  |   |        |       | 
|------------------ | ------------------------------ | --------------------- | - | ------ | ----- |  | - | ------ | ----- | 
|                   |                                | Three Months Ended    |  
|                   |                                | March 31,             |  
|                   |                                |                       |  
|                   |                                | 2006                  |   |        | 2005  | 
|                   |                                |                       |   |        |       | 
|                   |                                | (Dollars in millions) |  
|GMNA:              |                                |                       |   |        |       |  |   |       
|                   | Total net sales and revenues   |                       | $ | 28,531 |       |  | $ | 25,227 |      
|                   | Net income (loss)              |                       | $ | (503   | )     |  | $ | (1,737 | )    
|                   | Net margin                     |                       |   | (1.8   | )%    |  |   | (6.9   | )%   
|                   |                                | (Volume in thousands)
|                  
|Production volume  |                                |                       |   |        |       |  |   |       
|                   | Cars                           |                       |   | 496    |       |  |   | 470    |      
|                   | Trucks                         |                       |   | 759    |       |  |   | 712    |      
|                   |                                |                       |   |        |       | 
|                   |                                | Total GMNA            |   |        | 1,255 |  |   |        | 1,182 | 
|Vehicle unit sales |                                |                       |   |        |       |  |   |       
|                   | Industry  North America       |                       |   | 4,758  |       |  |   | 4,688  |      
|                   | GM as a percentage of industry |                       |   | 23.7   | %     |  |   | 25.2   | %    
|                   | Industry  U.S.                |                       |   | 4,050  |       |  |   | 4,001  |      
|                   | GM as a percentage of industry |                       |   | 23.8   | %     |  |   | 25.4   | %    
|                   | GM cars                        |                       |   | 20.7   | %     |  |   | 23.3   | %    
|                   | GM trucks                      |                       |   | 26.4   | %     |  |   | 27.1   | %    











| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Increased production volumes, which contributed approximately
    $460 million to quarterly results; and                                                                                                                                                                                                                                                                                                                                                                                                                                
|
| |  | Favorable pricing, the result of GMs pricing initiatives
    with less reliance on incentives, as well as higher demand for
    recently launched vehicles such as the Chevrolet Tahoe,
    GMC Yukon, and Cadillac Escalade, contributed approximately
    $450 million to the improvement. These improvements were
    the primary drivers of the increased GMNA net margins in the
    first quarter of 2006 compared to the first quarter of 2005, as
    expenses were relatively flat other than those items mentioned
    below.

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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


GM Automotive and Other Operations Financial Review
(continued)


GM North America
(concluded)






| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | After-tax charges of $41 million, compared to
    $140 million for the first quarter 2005. The first quarter
    2006 charges include costs related to separations of salaried
    employees, components of an hourly attrition program related to
    retroactive lump sum payments, partially offset by favorable
    adjustments for higher than anticipated headcount reductions
    associated with previously announced GMNA plant closing
    activities.





| |          
| | ---------
| | GM Europe

|                                 |                                |                       |      |       |   |  |      |       |   
|-------------------------------- | ------------------------------ | --------------------- | ---- | ----- | - |  | ---- | ----- | --
|                                 |                                | Three Months Ended   
|                                 |                                | March 31,            
|                                 |                                |                      
|                                 |                                | 2006                  |      | 2005 
|                                 |                                |                       |      |      
|                                 |                                | (Dollars in millions)
|GME:                             |                                |                       |      |       |   |  |      |      
|                                 | Total net sales and revenues   |                       | $    | 8,091 |   |  | $    | 8,108 |   
|                                 | Net income (loss)              |                       | $    | 48    |   |  | $    | (514  | ) 
|                                 | Net margin                     |                       |      | 0.6   | % |  |      | (6.3  | )%
|                                 |                                | (Volume in thousands)
|                                
|Production volume                |                                |                       | 494  |       |   |  | 502  |      
|Vehicle unit sales               |                                |                       |      |       |   |  |      |      
|                                 | Industry                       |                       |      | 5,522 |   |  |      | 5,283 |   
|                                 | GM as a percentage of industry |                       |      | 9.5   | % |  |      | 9.7   | % 
|GM market share  Germany        |                                |                       | 10.0 | %     |   |  | 10.9 | %    
|GM market share  United Kingdom |                                |                       | 14.5 | %     |   |  | 14.9 | %    







| |   |                                                                                                                                                                                                                      
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Pricing improvements of approximately $50 million,
    primarily driven by the successful launch of the new
    Zafira; and                                                                                          
|
| |  | Material cost reductions and favorable structural cost savings
    attributable to continued progress in restructuring efforts
    largely in manufacturing, resulting in approximately
    $100 million improvement.



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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


GM Automotive and Other Operations Financial Review
(continued)




| |                                 
| | --------------------------------
| | GM Latin America/Africa/Mid-East

|                         |                                |                       |      |       |   |  |      |       |  
|------------------------ | ------------------------------ | --------------------- | ---- | ----- | - |  | ---- | ----- | -
|                         |                                | Three Months Ended   
|                         |                                | March 31,            
|                         |                                |                      
|                         |                                | 2006                  |      | 2005 
|                         |                                |                       |      |      
|                         |                                | (Dollars in millions)
|GMLAAM:                  |                                |                       |      |       |   |  |      |      
|                         | Total net sales and revenues   |                       | $    | 3,140 |   |  | $    | 2,299 |  
|                         | Net income (loss)              |                       | $    | 29    |   |  | $    | 31    |  
|                         | Net margin                     |                       |      | 0.9   | % |  |      | 1.3   | %
|                         |                                | (Volume in thousands)
|                        
|Production volume        |                                |                       | 194  |       |   |  | 185  |      
|Vehicle unit sales       |                                |                       |      |       |   |  |      |      
|                         | Industry                       |                       |      | 1,361 |   |  |      | 1,189 |  
|                         | GM as a percentage of industry |                       |      | 16.9  | % |  |      | 15.4  | %
|GM market share  Brazil |                                |                       | 21.4 | %     |   |  | 19.0 | %    







| |                
| | ---------------
| | GM Asia Pacific

|                            |                                |                       |      |       |   |  |      |       |  
|--------------------------- | ------------------------------ | --------------------- | ---- | ----- | - |  | ---- | ----- | -
|                            |                                | Three Months Ended   
|                            |                                | March 31,            
|                            |                                |                      
|                            |                                | 2006                  |      | 2005 
|                            |                                |                       |      |      
|                            |                                | (Dollars in millions)
|GMAP:                       |                                |                       |      |       |   |  |      |      
|                            | Total net sales and revenues   |                       | $    | 3,933 |   |  | $    | 1,694 |  
|                            | Net income (loss)              |                       | $    | 453   |   |  | $    | 70    |  
|                            | Net margin                     |                       |      | 11.5  | % |  |      | 4.1   | %
|                            |                                | (Volume in thousands)
|                           
|Production volume           |                                |                       | 468  |       |   |  | 335  |      
|Vehicle unit sales          |                                |                       |      |       |   |  |      |      
|                            | Industry                       |                       |      | 5,076 |   |  |      | 4,659 |  
|                            | GM as a percentage of industry |                       |      | 6.4   | % |  |      | 5.0   | %
|GM market share  Australia |                                |                       | 16.5 | %     |   |  | 18.4 | %    
|GM market share  China     |                                |                       | 13.5 | %     |   |  | 10.2 | %    

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GENERAL MOTORS CORPORATION AND SUBSIDIARIES




GM Automotive and Other Operations Financial Review
(concluded)




GM Asia Pacific
(concluded)








| |   |                                                                                                                                        
| | - | ---------------------------------------------------------------------------------------------------------------------------------------
| |  | A gain of $372 million, after tax, from the sale of
    approximately 85% of GMs investment in Suzuki, discussed
    above; and       
|
| |  | Improved results at GM Daewoo and GMs joint ventures
    in China, partially offset by unfavorable results at Holden and
    Thailand.



Other Operations


|                  |                                             |                       |   |      |   |  |   |     |  
|----------------- | ------------------------------------------- | --------------------- | - | ---- | - |  | - | --- | -
|                  |                                             | Three Months Ended   
|                  |                                             | March 31,            
|                  |                                             |                      
|                  |                                             | 2006                  |   | 2005
|                  |                                             |                       |   |     
|                  |                                             | (Dollars in millions)
|Other Operations: |                                             |                       |   |      |   |  |   |    
|                  | Total net sales, revenues, and eliminations |                       | $ | (305 | ) |  | $ | (25 | )
|                  | Net income (loss)                           |                       | $ | (220 | ) |  | $ | 168 |  





GMAC Financial Review




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GENERAL MOTORS CORPORATION AND SUBSIDIARIES




GMAC Financial Review (concluded)




|                     |            |                    |     |     |      |   |     |     | 
|-------------------- | ---------- | ------------------ | --- | --- | ---- | - | --- | --- | 
|                     |            | Three Months Ended |    
|                     |            | March 31,          |    
|                     |            |                    |    
|                     |            | 2006               |     |     | 2005 |  
|                     |            |                    |     |     |      |  
|                     |            | (In millions)      |    
|Financing operations |            | $                  | 270 |     |      | $ | 216 |    
|Mortgage operations  |            |                    | 238 |     |      |   | 418 |    
|Insurance operations |            |                    | 129 |     |      |   | 94  |    
|                     |            |                    |     |     |      |  
|                     | Net income |                    | $   | 637 |      |   | $   | 728 | 
|                     |            |                    |     |     |      |  







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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


Key Factors Affecting Future Results






| |                                                 
| | ------------------------------------------------
| | GM North America Restructuring Plan 
    Update





| |   |                                                    
| | - | ---------------------------------------------------
| |  | Product Excellence                                 
|
| |  | Revitalize Sales and Marketing Strategy            
|
| |  | Accelerate Cost Reductions and Quality Improvements
|
| |  | Address Health Care Burden                         





| |                                                                                                           
| | ----------------------------------------------------------------------------------------------------------
| | Accelerate Cost Reductions and Quality Improvements:
    UAW-GM-Delphi Special Attrition Program Agreement





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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


Key Factors Affecting Future Results 
(continued)




| |                                                               
| | --------------------------------------------------------------
| | GM North America Restructuring Plan 
    Update  (concluded)







| |                                         
| | ----------------------------------------
| | Expected Cost Reduction in North America

10-K.






| |   |                                                                   
| | - | ------------------------------------------------------------------
| |  | October 2005  UAW Health Care Settlement Agreement               
|
| |  | November 2005  GMNA Capacity Reductions                          
|
| |  | February 2006  Salaried Retiree Health Care Revisions            
|
| |  | March 2006  Salaried Retiree Pension Plan Revisions              
|
| |  | March 2006  GM-UAW-Delphi Special Attrition Program
    Agreement





| |                  
| | -----------------
| | Delphi Bankruptcy



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


Key Factors Affecting Future Results 
(continued)




| |                                
| | -------------------------------
| | Delphi Bankruptcy  (continued)















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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


Key Factors Affecting Future Results 
(continued)




| |                                
| | -------------------------------
| | Delphi Bankruptcy  (continued)















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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


Key Factors Affecting Future Results 
(continued)




| |                                
| | -------------------------------
| | Delphi Bankruptcy  (concluded)







10-K




| |                                        
| | ---------------------------------------
| | GMAC  Sale of 51% Controlling Interest



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


Key Factors Affecting Future Results 
(continued)




| |                                                          
| | ---------------------------------------------------------
| | GMAC  Sale of 51% Controlling
    Interest  (continued)







| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Strong long term Services Agreement between GM and
    GMAC  As part of the transaction, GM and GMAC will
    enter into a number of agreements that will require that GMAC
    continue to allocate capital to automotive financing consistent
    with historical practices, thereby continuing to provide
    critical financing support to a significant share of GMs
    global sales. While GMAC will retain the right to make
    individual credit decisions, GMAC will commit to fund a broad
    spectrum of customers and dealers consistent with historical
    practice in the relevant jurisdiction. Subject to GMACs
    fulfillment of certain conditions, GM will grant GMAC
    exclusivity for 10 years for U.S., Canadian and
    international GM-sponsored consumer and wholesale marketing
    incentives, with the exception of Saturn branded products.
|
| |  | Improved Liquidity  Significant upfront sales
    proceeds to bolster GM liquidity, strengthening GMs
    balance sheet and funding the turnaround plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|
| |  | Enhanced shareholder value through a stronger GMAC 
    GM will retain an 49% equity investment interest in GMAC, and
    will be able to continue to participate in GMACs strong
    profitability levels.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|
| |  | Expected de-linkage of GMACs credit rating from
    GM  GM expects the introduction of a new controlling
    investor for GMAC, new capital at GMAC, and significantly
    reduced intercompany exposures to GM will provide GMAC with a
    solid foundation to improve its current credit rating, and
    de-link the GMAC credit ratings from GM.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             







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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES




Key Factors Affecting Future Results 
(concluded)




| |                                                          
| | ---------------------------------------------------------
| | GMAC  Sale of 51% Controlling
    Interest  (concluded)









| |               
| | --------------
| | Investigations







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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


Liquidity and Capital Resources


Automotive and Other Operations




| |                    
| | -------------------
| | Available Liquidity



|                                        |                     |                       |      |      |               |   |      |              |  |   |      |      | 
|--------------------------------------- | ------------------- | --------------------- | ---- | ---- | ------------- | - | ---- | ------------ |  | - | ---- | ---- | 
|                                        |                     | Mar. 31, 2006         |      |      | Dec. 31, 2005 |   |      | Mar 31, 2005 | 
|                                        |                     |                       |      |      |               |   |      |              | 
|                                        |                     | (Dollars in billions) |     
|Cash and cash equivalents               |                     | $                     | 17.4 |      |               | $ | 15.2 |              |  | $ | 10.2 |     
|Other marketable securities             |                     |                       | 1.4  |      |               |   | 1.4  |              |  |   | 5.4  |     
|Readily-available assets of VEBA trusts |                     |                       | 2.8  |      |               |   | 3.8  |              |  |   | 4.2  |     
|                                        |                     |                       |      |      |               |   |      |              | 
|                                        | Available Liquidity |                       | $    | 21.6 |               |   | $    | 20.4         |  |   | $    | 19.8 | 









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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES




Automotive and Other
Operations  (continued)




Available
Liquidity  (continued)


10-K.








| |          
| | ---------
| | Cash Flow









| |     
| | ----
| | Debt







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GENERAL MOTORS CORPORATION AND SUBSIDIARIES




Automotive and Other
Operations  (concluded)




Available
Liquidity  (concluded)






| |              
| | -------------
| | Net Liquidity



Financing and Insurance Operations








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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


Status of Debt Ratings




|              |  |             |  |                  |  |        |  |           |  |           |  |         
|------------- |  | ----------- |  | ---------------- |  | ------ |  | --------- |  | --------- |  | --------
|              |  | Senior Debt |  | Commercial Paper
|              |  |             |  |                 
|Rating Agency |  | GM          |  | GMAC             |  | ResCap |  | GM        |  | GMAC      |  | ResCap  
|              |  |             |  |                  |  |        |  |           |  |           |  |         
|DBRS          |  | B(High)     |  | BBB(Low)         |  | BBB    |  | R-3(Mid)  |  | R-2(Low)  |  | R-2(Mid)
|Fitch         |  | B           |  | BB               |  | BBB-   |  | Withdrawn |  | B         |  | F3      
|Moodys       |  | B3          |  | Ba1              |  | Baa3   |  | Not Prime |  | Not Prime |  | P3      
|S&P           |  | B           |  | BB               |  | BBB-   |  | B-3       |  | B-1       |  | A-3     
|              |  |             |  |                  |  |        |  |           |  |           |  |         

|              |  |                       |  |                               |  |                              
|------------- |  | --------------------- |  | ----------------------------- |  | -----------------------------
|              |  | Outlook              
|              |  |                      
|Rating Agency |  | GM                    |  | GMAC                          |  | ResCap                       
|              |  |                       |  |                               |  |                              
|DBRS          |  | Negative              |  | Developing                    |  | Developing                   
|Fitch         |  | Rating Watch Negative |  | Positive                      |  | Positive                     
|Moodys       |  | Negative              |  | Review for Possible Downgrade |  | Review for Possible Downgrade
|S&P           |  | Rating Watch Negative |  | Developing                    |  | Developing                   
|              |  |                       |  |                               |  |                              





P-3




B-3


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GENERAL MOTORS CORPORATION AND SUBSIDIARIES




Status of Debt Ratings  (concluded)




Line of Credit Between GM and GMAC




Off-Balance Sheet Arrangements








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GENERAL MOTORS CORPORATION AND SUBSIDIARIES




Off-Balance Sheet
Arrangements  (concluded)




|                                                                         |                                 |           |       |         |          |   |       |           |  |   |       |         | 
|------------------------------------------------------------------------ | ------------------------------- | --------- | ----- | ------- | -------- | - | ----- | --------- |  | - | ----- | ------- | 
|                                                                         |                                 | March 31, |       |         | Dec. 31, |   |       | March 31, | 
|                                                                         |                                 | 2006      |       |         | 2005     |   |       | 2005      | 
|                                                                         |                                 |           |       |         |          |   |       |           | 
|Automotive and Other Operations
    Assets leased under operating leases |                                 | $         | 2,288 |         |          | $ | 2,430 |           |  | $ | 2,469 |        
|Trade receivables sold(1)                                                |                                 |           | 737   |         |          |   | 708   |           |  |   | 1,153 |        
|                                                                         |                                 |           |       |         |          |   |       |           | 
|                                                                         | Total                           |           | $     | 3,025   |          |   | $     | 3,138     |  |   | $     | 3,622   | 
|                                                                         |                                 |           |       |         |          |   |       |           | 
|Financing and Insurance Operations
    Receivables sold or securitized:  |                                 |           |       |         |          |   |       |           |  |   |       |        
|                                                                         |  Mortgage loans                |           | $     | 90,207  |          |   | $     | 99,084    |  |   | $     | 81,496  | 
|                                                                         |  Retail finance receivables    |           |       | 8,212   |          |   |       | 6,014     |  |   |       | 4,777   | 
|                                                                         |  Wholesale finance receivables |           |       | 21,326  |          |   |       | 21,421    |  |   |       | 24,507  | 
|                                                                         |                                 |           |       |         |          |   |       |           | 
|                                                                         | Total                           |           | $     | 119,745 |          |   | $     | 126,519   |  |   | $     | 110,780 | 
|                                                                         |                                 |           |       |         |          |   |       |           | 






|    |                                                                                                                                                                                                    
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | In addition, trade receivables sold to GMAC were
    $595 million, $525 million and $558 million for
    the periods ended March 31, 2006, December 31, 2005,
    and March 31, 2005, respectively.

Book Value Per Share


2 3




2 3


Dividends


2 3


2 3 2 3 2 3


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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


Employment And Payrolls


|                                                                                          |                 |      |     |     |      |  |     |     | 
|----------------------------------------------------------------------------------------- | --------------- | ---- | --- | --- | ---- |  | --- | --- | 
|Worldwide employment for GM and its wholly-owned subsidiaries at March 31, (in thousands) |                 | 2006 |     |     | 2005 | 
|                                                                                          |                 |      |     |     |      | 
|GMNA                                                                                      |                 |      | 169 |     |      |  | 179 |    
|GME(1)                                                                                    |                 |      | 64  |     |      |  | 58  |    
|GMLAAM                                                                                    |                 |      | 31  |     |      |  | 30  |    
|GMAP(2)                                                                                   |                 |      | 32  |     |      |  | 15  |    
|GMAC                                                                                      |                 |      | 31  |     |      |  | 34  |    
|Other                                                                                     |                 |      | 2   |     |      |  | 5   |    
|                                                                                          |                 |      |     |     |      | 
|                                                                                          | Total employees |      |     | 329 |      |  |     | 321 | 
|                                                                                          |                 |      |     |     |      | 

|                                   |  |              |  |     
|---------------------------------- |  | ------------ |  | ----
|                                   |  | Three Months
|                                   |  | Ended       
|                                   |  | March 31,   
|                                   |  |             
|                                   |  | 2006         |  | 2005
|                                   |  |              |  |     
|Worldwide payrolls  (in billions) |  | $5.3         |  | $5.3
|                                   |  |              |  |     






|    |                                                                                                                             
|--- | ----------------------------------------------------------------------------------------------------------------------------
|(1) | Approximately 7,000 employees were added in the fourth quarter
    of 2005 from a former powertrain joint venture with Fiat.
|   
|(2) | Approximately 13,000 employees were added as a result of the
    GM Daewoo consolidation in the third quarter of 2005.      

Critical Accounting Estimates


10-K.




10-K.


New Accounting Standards




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GENERAL MOTORS CORPORATION AND SUBSIDIARIES




New Accounting Standards  (continued)


















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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES




New Accounting Standards  (concluded)




Forward-Looking Statements


10-K 10-Q 8-K, 10-Q 8-K, 10-K, 10-Q 8-K.




| |   |                                                                                                                                                                                                                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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 resolution of the appeal of the court approval of the health
    care settlement agreement;                                                                                                                                                                                                             
|
| |  | 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 the Corporation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 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;                                                                                                                                        

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GENERAL MOTORS CORPORATION AND SUBSIDIARIES




Forward-Looking Statements  (continued)




| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Negotiations and bankruptcy court actions with respect to
    Delphis obligations to GM, negotiations with respect to
    GMs obligations under the benefit guarantees to Delphi
    employees, and GMs ability to recover any indemnity claims
    against Delphi;                                                                                                                                                                 
|
| |  | Labor strikes or work stoppages at GM or at key suppliers such
    as Delphi;                                                                                                                                                                                                                                                                                                                                                          
|
| |  | Additional credit rating downgrades and the effects thereof;                                                                                                                                                                                                                                                                                                                                                                           
|
| |  | The effect of a potential sale or other extraordinary
    transaction involving GMAC 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 our mortgage subsidiaries operate, and
    changes in our 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.                                                                                                                                                                                                                                                                                           

10-K, 10-Q 8-K.




| |   |                                                                                                                                                                                                                                                                                                                           
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The ability of GM to complete a transaction regarding a
    controlling interest in GMAC while maintaining a significant
    stake in GMAC, securing separate credit ratings and low cost
    funding to sustain growth for GMAC and ResCap, and maintaining
    the mutually beneficial relationship between GMAC and GM;
|
| |  | Significant changes in the competitive environment and the
    effect of competition in the Corporations markets,
    including on the Corporations pricing policies;                                                                                                                                                   
|
| |  | Our ability to maintain adequate financing sources;                                                                                                                                                                                                                                                                       
|
| |  | Our ability to maintain 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 us;                                                                                                                                                                                                                     
|
| |  | Changes in the residual value of off-lease vehicles;                                                                                                                                                                                                                                                                      
|
| |  | Changes in U.S. government-sponsored mortgage programs or
    disruptions in the markets in which our mortgage subsidiaries
    operate;                                                                                                                                                                                  
|
| |  | Changes in our contractual servicing rights;                                                                                                                                                                                                                                                                              
|
| |  | Costs and risks associated with litigation;                                                                                                                                                                                                                                                                               
|
| |  | Changes in our 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;                                                                                                                                                                                                                                                                                         

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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES




Forward-Looking Statements  (concluded)




| |   |                                                                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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.










|        |                                                               
|------- | --------------------------------------------------------------
|Item 3. | Quantitative And Qualitative Disclosures About Market
    Risk

10-K









|        |                        
|------- | -----------------------
|Item 4. | Controls and Procedures



13a-15(e) 15d-15(e)) 13a-15 15d-15,






| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (A) | A material weakness was identified related to our design and
    maintenance of adequate controls over the preparation, review,
    presentation and disclosure of amounts included in our
    previously-reported condensed consolidated statements of cash
    flows for certain prior periods, which resulted in misstatements
    therein and our previous restatements thereof. Cash outflows
    related to certain mortgage loan originations and purchases were
    not appropriately classified as either operating cash flows or
    investing cash flows consistent with our original description as
    loans held for sale or loans held for investment. In addition,
    proceeds from sales and repayments related to certain mortgage
    loans, which initially were classified as mortgage loans held
    for investment and subsequently transferred to mortgage loans
    held for sale, were reported as operating cash flows instead of
    investing cash flows in our condensed consolidated statements of
    cash flows, as required by Statement of Financial Accounting
    Standards No. 102 Statement of Cash Flows 
    Exemption of Certain Enterprises and Classification of Cash
    Flows from Certain Securities Acquired for Resale. Finally,
    certain non-cash proceeds and transfers were not appropriately
    presented in the condensed consolidated statements of cash flows.



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GENERAL MOTORS CORPORATION AND SUBSIDIARIES




Controls and Procedures  (concluded)




| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (B) | As discussed in GMs Annual Report on
    Form 10-K for the
    year ended December 31, 2005, GM management remediated a
    material weakness in control procedures used to account for
    GMs portfolio of vehicles on operating lease with daily
    rental car entities.                                                                                                                                                                                                                                                                                                                    
|
| | (C) | GM management also identified a significant deficiency in
    internal controls related to accounting for complex contracts.
    This deficiency was identified as a result of certain contracts
    being accounted for incorrectly and without appropriate
    consideration of the economic substance of the contracts. GM
    management is in the process of remediating this significant
    deficiency by implementing a delegation of authority for
    approval of the accounting for complex contracts that requires
    formal review and approval by experienced accounting personnel.



Limitations on the Effectiveness of Controls






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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES





PART II







|        |                  
|------- | -----------------
|Item 1. | Legal Proceedings

Stockholder and Bondholder Class Actions


In re
General Motors ERISA Litigation,


In re
General Motors Securities Litigation Folksam
Asset Management v. General Motors, et a Galliani v. General Motors, et. al In re General Motors
Securities Litigation Stein v. Bowles,
et al.; Rosen, et al. v. General Motors Corp.,
et al; Gluckstern v. Wagoner, et al.; Orr v. Wagoner, et al.


Zielezienski, et al. v. General Motors,
et al.


Canadian Export Antitrust Class Actions


In re New
Market Vehicle Canadian Export Antitrust Litigation Cases,


Health Care Litigation


UAW,
et al. v. General Motors Corporation,


Coolant System Product Litigation


Kenneth Stewart v. General Motors of Canada Limited and
General Motors Corporation, Donald Goodridge v. General Motors of
Canada Limited and General Motors Corporation Dominique
Gauthier v. General Motors of Canada Limited


II-1



---



##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


Legal Proceedings  (concluded)


In Gutzler v. General Motors Corporation 4.3-liter 3.8-liter


Environmental Matters











|         |             
|-------- | ------------
|Item 1A. | Risk Factors

10-K, 10-K. 10-K




| |                                                                                                                                                                                                             
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Financial difficulties, labor stoppages or work slowdowns
    at key suppliers, including Delphi, could result in a disruption
    in our operations and have a material adverse effect on our
    business.





II-2



---



##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES




Risk Factors  (continued)






| |                                                                                                                 
| | ----------------------------------------------------------------------------------------------------------------
| | Delphi may seek to reject or compromise its obligations to
    us through its Chapter 11 bankruptcy proceedings.







| |                                                                                                           
| | ----------------------------------------------------------------------------------------------------------
| | Continued failure to achieve profitability may cause some
    or all of our deferred tax assets to expire.



II-3



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES




Risk Factors  (continued)






| |                                                                                                                                                                                                                                                                                                                  
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Restrictions in our labor agreements, including the JOBS
    bank provisions in the UAW agreement, could limit our ability to
    pursue or achieve cost savings through restructuring
    initiatives, and labor strikes, work stoppages or similar
    difficulties could significantly disrupt our operations.











| |                                                                                                                                                                                                                                                                                                                                                                                                                   
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We have reached an agreement to sell a controlling
    interest in GMAC . There is a risk that this transaction may not
    be completed, or if it is completed, that it may not delink
    GMACs credit rating from GMs credit rating or
    maintain ResCaps investment grade credit rating. In
    addition, this transaction, if completed, would reduce our
    interest in GMACs earnings going forward.







| |   |                                                                                                                                      
| | - | -------------------------------------------------------------------------------------------------------------------------------------
| |  | GMACs access to capital may be seriously constrained, as
    most unsecured funding sources may decline, including bank
    funding;

II-4



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


Risk Factors  (concluded)




| |   |                                                                                                                                                                                   
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The cost of funds related to borrowings that are secured by
    assets may increase, leading to a reduction in liquidity for
    certain asset classes;                           
|
| |  | It may be increasingly difficult to securitize assets, resulting
    in reduced capacity to support overall automotive originations;                                              
|
| |  | Uncompetitive funding costs may result in a lower return on
    capital and significantly lower earnings and dividends; and                                                       
|
| |  | GMAC may need to consider divesting certain businesses in order
    to maintain adequate liquidity to fund new originations or
    otherwise preserve the value of its businesses.





| |                                                                                                                                                                                                                     
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our pension and OPEB expenses are affected by factors
    outside our control, including the performance of plan assets,
    interest rates, actuarial data and experience, and changes in
    laws and regulations.







Other Risk Factors


10-K, 10-K. 10-K


Risks related to GM and its automotive business




| |   |                                                                                                                                                                                                                                       
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Our ability to achieve structural and material cost reductions
    and to realize production efficiencies for our automotive
    operations is critical to our ability to achieve our turnaround
    plan and return to profitability.

II-5



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES




Risks related to GM and its automotive
business  (concluded)




| |   |                                                                                                                                                                                                                                                                                                                                
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | We have guaranteed a significant amount of Delphis
    financial obligations to its unionized workers. If Delphi fails
    to satisfy these obligations, we would be obligated to pay some
    of these obligations.                                                                                                          
|
| |  | Our health-care cost burden is one of our biggest competitive
    challenges, and if we do not make progress on structurally
    fixing this issue, it will continue to be a long-term threat to
    GM.                                                                                                                       
|
| |  | Our extensive pension and OPEB obligations to retirees are a
    competitive disadvantage for us.                                                                                                                                                                                                                              
|
| |  | We have recently experienced a series of credit rating actions
    that have downgraded our credit ratings to historically low
    levels. Further reduction of our credit ratings, or failure to
    restore our credit ratings to higher levels, could have a
    material adverse effect on our business.                   
|
| |  | Our liquidity position could be negatively affected by a variety
    of factors, which in turn could have a material adverse effect
    on our business.                                                                                                                                                                       
|
| |  | GMs recent restatement of its prior financial statements
    could negatively impact its rights and obligations under certain
    contracts to which it is a party, including its
    $5.6 billion standby credit facility, which could under
    certain circumstances materially adversely affect GMs
    future liquidity.
|
| |  | The government is currently investigating certain of our
    accounting practices. The final outcome of these investigations
    could require us to restate prior financial results.                                                                                                                                          
|
| |  | We operate in a highly competitive industry that has excess
    manufacturing capacity.                                                                                                                                                                                                                                        
|
| |  | The bankruptcy or insolvency of a major competitor could result
    in further competitive disadvantages for us in relation to that
    competitor.                                                                                                                                                                            
|
| |  | Shortages and increases in the price of fuel can result in
    diminished profitability due to shifts in consumer vehicle
    demand.                                                                                                                                                                                          
|
| |  | A decline in consumer demand for our higher margin vehicles
    could result in diminished profitability.                                                                                                                                                                                                                      
|
| |  | Our indebtedness and other obligations of our automotive
    operations are significant and could materially adversely affect
    our business.                                                                                                                                                                                
|
| |  | Our pension and OPEB expenses are affected by factors outside
    our control, including the performance of plan assets, interest
    rates, actuarial data and experience, and changes in laws and
    regulations.                                                                                                           
|
| |  | The pace of introduction and market acceptance of new vehicles
    is important to our success.                                                                                                                                                                                                                                
|
| |  | Economic and industry conditions constantly change and could
    have a material adverse effect on our business and results of
    operations.                                                                                                                                                                                 
|
| |  | Changes in existing, or the adoption of new, laws, regulations
    or policies of governmental organizations may have a significant
    negative impact on how we do business.                                                                                                                                                 
|
| |  | Our businesses outside the United States expose us to additional
    risks that may cause our revenues and profitability to decline.                                                                                                                                                                                           
|
| |  | A failure of or interruption in the communications and
    information systems on which we rely to conduct our operations
    could adversely affect our business.                                                                                                                                                             
|
| |  | We could be materially adversely affected by changes in currency
    exchange rates, commodity prices, equity prices and interest
    rates.                                                                                                                                                                                   
|
| |  | We are subject to significant risks of litigation.                                                                                                                                                                                                                                                                             

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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


Risks related to GMs finance, mortgage and insurance
businesses




| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Our finance, mortgage and insurance businesses require
    substantial capital, and if we are unable to maintain adequate
    financing sources, our business, results of operations and
    financial condition will suffer and jeopardize our ability to
    continue operations.                                                                                                                                                                                                                      
|
| |  | We are exposed to credit risk which could affect the business,
    results of operations and financial condition of our finance,
    mortgage and insurance operations.                                                                                                                                                                                                                                                                                                                                  
|
| |  | Our earnings may decrease because of increases or decreases in
    interest rates.                                                                                                                                                                                                                                                                                                                                                                                                                       
|
| |  | Our hedging strategies may not be successful in mitigating our
    risks associated with changes in interest rates.                                                                                                                                                                                                                                                                                                                                                                                      
|
| |  | ResCaps ability to pay dividends and to prepay
    subordinated debt obligations to GMAC is restricted by
    contractual arrangements.                                                                                                                                                                                                                                                                                                                                                                 
|
| |  | We use estimates and assumptions in determining the fair value
    of certain of our assets, in determining our allowance for
    credit losses, in determining lease residual values and in
    determining our reserves for insurance losses and loss
    adjustment expenses. If our estimates or assumptions prove to be
    incorrect, the business, results of operations and financial
    condition of our finance, mortgage and insurance operations
    could be materially adversely affected.
|
| |  | General business and economic conditions of the industries and
    geographic areas in which we operate affect the business,
    results of operations and financial condition of our finance,
    mortgage and insurance operations.                                                                                                                                                                                                                                                                    
|
| |  | Our business, results of operations and financial condition may
    be materially adversely affected by decreases in the residual
    value of off-lease vehicles.                                                                                                                                                                                                                                                                                                                                       
|
| |  | Fluctuations in valuation of investment securities or
    significant fluctuations in investment market prices could
    negatively affect revenues.                                                                                                                                                                                                                                                                                                                                                     
|
| |  | Changes in existing U.S. government-sponsored mortgage
    programs, or disruptions in the secondary markets in the United
    States or in other countries in which our mortgage subsidiaries
    operate, could materially adversely affect the business, results
    of operations and financial condition of our mortgage business.                                                                                                                                                                  
|
| |  | GMAC may be required to repurchase contracts and provide
    indemnification if GMAC breaches representations and warranties
    from its securitization and whole loan transactions, which could
    harm our business, results of operations and financial condition.                                                                                                                                                                                                                                  
|
| |  | Significant indemnification payments or contract, lease or loan
    repurchase activity of retail contracts or leases or mortgage
    loans could harm our business, results of operations and
    financial condition.                                                                                                                                                                                                                                                                                  
|
| |  | A loss of contractual servicing rights could have a material
    adverse effect on our operations.                                                                                                                                                                                                                                                                                                                                                                                                       
|
| |  | The regulatory environment in which GMAC operates could have a
    material adverse effect on its business.                                                                                                                                                                                                                                                                                                                                                                                              





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|           |                               
|---------- | ------------------------------
|Item 2(c). | Purchases of Equity Securities

2 3









|        |         
|------- | --------
|Item 6. | Exhibits

|        |    |              |  |                                                                                                                                                              
|------- | -- | ------------ |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |             
|Number  |    | Exhibit Name
|        |    |             
|        | 10 | .1           |  | Memorandum of Understanding dated October 29, 2005 between
    the International Union, UAW and General Motors Corporation                                   
|        | 10 | .2           |  | UAW-GM-Delphi Special Attrition Program dated March 22,
    2006 among the International Union, UAW, General Motors
    Corporation and Delphi Corporation   
|        | 13 |              |  | General Motors Acceptance Corporation Quarterly Report on
    Form 10-Q, File No. 000-03754, for the quarterly period
    ended March 31, 2006               
|        | 31 | .1           |  | Section 302 Certification of the Chief Executive Officer                                                                                                     
|        | 31 | .2           |  | Section 302 Certification of the Chief Financial Officer                                                                                                     
|        | 32 | .1           |  | Certification of the Chief Executive Officer Pursuant to
    18 U.S.C. Section 1350, As Adopted Pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002
|        | 32 | .2           |  | Certification of the Chief Financial Officer Pursuant to
    18 U.S.C. Section 1350, As Adopted Pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002



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GENERAL MOTORS CORPORATION AND SUBSIDIARIES





SIGNATURES






| |                           
| | --------------------------
| | GENERAL MOTORS CORPORATION
| |                           
| | (Registrant)              





| |     |                   
| | --- | ------------------
| | By: | /s/ PETER R. BIBLE

| |                                           
| | ------------------------------------------
| |                                           
| | (Peter R. Bible, Chief Accounting Officer)

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