UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                               -------------------
                                    FORM 10-K



     [X]  Annual  Report  Pursuant  to  Section  13 or 15(d)  of the  Securities
          Exchange Act of 1934 For the fiscal year ended December 31, 2001.

     [ ]  Transition  Report  Pursuant to Section 13 or 15(d) of the  Securities
          Exchange Act of 1934 For the transition period from     to

                         Commission file number 0-21806
                             -----------------------



                          PLM EQUIPMENT GROWTH FUND VI
             (Exact name of registrant as specified in its charter)


               California                                 94-3135515
     (State or other jurisdiction of                   (I.R.S. Employer
     incorporation or organization)                   Identification No.)

          120 Montgomery Street
      Suite 1350, San Francisco, CA                          94104
          (Address of principal                           (Zip code)
           executive offices)


        Registrant's telephone number, including area code (415) 445-3201
                             -----------------------



Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days. Yes X No

Aggregate market value of voting stock: N/A

An index of exhibits filed with this Form 10-K is located at page 27.

Total number of pages in this report: 198


<PAGE>



                                     PART I

ITEM 1. BUSINESS

(A)  Background

In April 1991,  PLM Financial  Services,  Inc. (FSI or the General  Partner),  a
wholly owned subsidiary of PLM International,  Inc. (PLM International or PLMI),
filed a  Registration  Statement  on Form S-1 with the  Securities  and Exchange
Commission with respect to a proposed offering of 8,750,000 limited  partnership
units  (the  units)  in PLM  Equipment  Growth  Fund  VI, a  California  limited
partnership  (the  Partnership,  the Registrant,  or EGF VI). The  Partnership's
offering became effective on December 23, 1991. FSI, as General Partner,  owns a
5% interest  in the  Partnership.  The  Partnership  engages in the  business of
investing in a diversified  equipment  portfolio  consisting  primarily of used,
long-lived,  low-obsolescence  capital equipment that is easily transportable by
and among prospective users.

The Partnership's primary objectives are:

     (1) to invest in a diversified portfolio of low obsolescence equipment with
long lives and high residual values, at prices that the General Partner believes
to be below inherent values,  and to place the equipment on lease or under other
contractual  arrangements with creditworthy  lessees and operators of equipment.
All  transactions  over $1.0  million  must be approved  by PLM  International's
Credit  Review  Committee  (the  Committee),  which is made up of members of PLM
International's senior management.  In determining a lessee's  creditworthiness,
the Committee considers, among other factors, the lessee's financial statements,
internal and external credit ratings, and letters of credit;

     (2) to generate sufficient net operating cash flow from lease operations to
meet liquidity  requirements  and to generate cash  distributions to the limited
partners  until  such  time  as  the  General  Partner   commences  the  orderly
liquidation of the Partnership  assets,  or unless the Partnership is terminated
earlier upon sale of all Partnership property or by certain other events;

     (3) to create a significant  degree of safety  relative to other  equipment
leasing investments through the purchase of a diversified  equipment  portfolio.
This  diversification  reduces the  exposure to market  fluctuations  in any one
sector. The purchase of used, long-lived,  low-obsolescence equipment, typically
at prices that are substantially  below the cost of new equipment,  also reduces
the  impact  of  economic  depreciation  and  can  create  the  opportunity  for
appreciation  in certain  market  situations,  where supply and demand return to
balance from oversupply conditions; and

     (4) to increase the Partnership's  revenue base by reinvesting a portion of
its operating  cash flow in additional  equipment  during the first six years of
the  Partnership's  operation in order to grow the size of its portfolio.  Since
net income and  distributions  are  affected by a variety of factors,  including
purchase prices, lease rates, and costs and expenses,  growth in the size of the
Partnership's  portfolio  does  not  necessarily  mean  that  in all  cases  the
Partnership's  aggregate  net income and  distributions  will  increase upon the
reinvestment of operating cash flow.

The offering of units of the Partnership  closed on May 24, 1993. As of December
31,  2001,  there  were  7,781,898  units   outstanding.   The  General  Partner
contributed $100 for its 5% general partner interest in the Partnership.

As a result of amendments to the Partnership's Limited Partnership Agreement
made pursuant to a court approved class action settlement, the Partnership may
reinvest its cash flow, surplus cash, and equipment sale proceeds in additional
equipment, consistent with the objectives of the Partnership, until December 31,
2004.


<PAGE>


Table 1, below,  lists the  equipment  and the original cost of equipment in the
Partnership's  portfolio and the Partnership's  proportional  share of equipment
owned by  unconsolidated  special-purpose  entities as of December  31, 2001 (in
thousands of dollars):
<TABLE>
<CAPTION>

                                     TABLE 1

 Units                          Type                                  Manufacturer                        Cost
-------------------------------------------------------------------------------------------------------------------

Owned equipment held for operating leases:

<S>                                                                                                  <C>
  7,289     Marine containers                                 Various                                $     18,896
  2,845     Refrigerated marine containers                    Various                                       6,149
    364     Pressurized tank railcars                         Various                                      10,728
    180     Nonpressurized tank railcars                      Various                                       3,482
    138     Covered hopper railcars                           Various                                       3,003
      1     DC-9-82 Stage III commercial aircraft             McDonnell Douglas                            13,951
      1     Portfolio of aircraft rotables                    Various                                       2,273
    339     Dry piggyback trailers                            Stoughton                                     5,212
                                                                                                     -------------
                Total owned equipment held for operating leases                                      $     63,694 (1)
                                                                                                     =============

Equipment owned by unconsolidated special-purpose entities:

   0.62     737-300 Stage III commercial aircraft             Boeing                                 $     14,802 (2)
   0.40     Equipment on direct finance lease:
              Two DC-9 Stage III commercial aircraft          McDonnell Douglas                             4,807 (3)
   0.53     Product tanker                                    Boelwerf-Temse                               10,476 (2)
                                                                                                     -------------
                Total investments in unconsolidated special-purpose entities                         $     30,085 (1)
                                                                                                     =============

(1)  Includes equipment and investments purchased with the proceeds from capital
     contributions,  undistributed  cash flow from  operations,  and Partnership
     borrowings invested in equipment. Includes costs capitalized, subsequent to
     the  date  of  purchase,   and  equipment  acquisition  fees  paid  to  PLM
     Transportation  Equipment  Corporation  (TEC), or PLM Worldwide  Management
     Services (WMS).

(2)  Jointly owned: EGF VI and an affiliated program.

(3)  Jointly owned: EGF VI and two affiliated programs.
</TABLE>

Equipment is generally  leased under  operating  leases for a term of one to six
years  except for the marine  vessel  which is usually  leased for less than one
year.  Some of the  Partnership's  marine  containers are leased to operators of
utilization-type  leasing pools,  which include  equipment owned by unaffiliated
parties.  In such instances,  revenues received by the Partnership  consist of a
specified  percentage of revenues  generated by leasing the pooled  equipment to
sublessees,  after  deducting  certain direct  operating  expenses of the pooled
equipment.  The remaining  Partnership  marine  containers  are based on a fixed
rate.  Lease revenues for  intermodal  trailers are based on a per-diem lease in
the free running  interchange with the railroads.  Rents for all other equipment
are based on fixed rates.

The  lessees of the  equipment  include  but are not limited to: AAR Allen Group
International,  Aero California  Airline,  American  Airlines,  Capital Leasing,
Cronos Containers,  Domino Sugar Corp.,  Pluna-Lineas Aereas Uruguayas S.A., and
Tosco Refining Company.






                      (This space intentionally left blank)








<PAGE>



(B) Management of Partnership Equipment

The  Partnership  has entered into an equipment  management  agreement  with PLM
Investment  Management,  Inc.  (IMI), a wholly owned  subsidiary of FSI, for the
management  of  the  Partnership's   equipment.   The  Partnership's  management
agreement with IMI is to co-terminate  with the dissolution of the  Partnership,
unless the limited  partners vote to terminate the agreement prior to that date,
or at the  discretion  of the  General  Partner.  IMI has agreed to perform  all
services  necessary to manage the equipment on behalf of the  Partnership and to
perform or contract for the  performance of all  obligations of the lessor under
the Partnership's  leases. In consideration for its services and pursuant to the
partnership agreement,  IMI is entitled to a monthly management fee (see Notes 1
and 2 to the audited financial statements).

(C) Competition

(1) Operating Leases versus Full Payout Leases

Generally the equipment owned or invested in by the Partnership is leased out on
an  operating  lease  basis  wherein  the  rents  received  during  the  initial
noncancelable  term of the lease are  insufficient to recover the  Partnership's
purchase  price of the  equipment.  The short- to mid-term  nature of  operating
leases  generally  commands a higher  rental rate than  longer-term  full payout
leases and offers lessees relative flexibility in their equipment commitment. In
addition, the rental obligation under an operating lease need not be capitalized
on the lessee's balance sheet.

The Partnership  encounters  considerable  competition from lessors that utilize
full payout leases on new equipment,  i.e.,  leases that have terms equal to the
expected  economic  life  of  the  equipment.  While  some  lessees  prefer  the
flexibility offered by a shorter-term  operating lease, other lessees prefer the
rate  advantages  possible with a full payout lease.  Competitors may write full
payout  leases  at  considerably  lower  rates  and for  longer  terms  than the
Partnership offers, or larger competitors with a lower cost of capital may offer
operating leases at lower rates,  which may put the Partnership at a competitive
disadvantage.

(2) Manufacturers and Equipment Lessors

The Partnership competes with equipment manufacturers who offer operating leases
and full payout leases.  Manufacturers may provide  ancillary  services that the
Partnership  cannot offer, such as specialized  maintenance  service  (including
possible substitution of equipment),  training,  warranty services, and trade-in
privileges.

The  Partnership  also  competes  with many  equipment  lessors,  including  ACF
Industries,  Inc.  (Shippers Car Line Division),  GATX Corp.,  General  Electric
Railcar  Services  Corporation,   General  Electric  Capital  Aviation  Services
Corporation,  Xtra Corporation,  and other programs that lease the same types of
equipment.

(D) Demand

The  Partnership  currently  operates  in the five  operating  segments:  marine
container leasing, railcar leasing, aircraft leasing, marine vessel leasing, and
intermodal trailer leasing. Each equipment leasing segment engages in short-term
to  mid-term  operating  leases  to  a  variety  of  customers  except  for  the
Partnership's  investment  in  two  aircraft  on a  direct  finance  lease.  The
Partnership's   equipment  and  investments  are  primarily  used  to  transport
materials and commodities, except for aircraft leased to passenger air carriers.

The following  section describes the international and national markets in which
the Partnership's capital equipment operates:


<PAGE>


(1) Marine Containers

The  Partnership's  portfolio of marine  containers  is composed of two distinct
groups. During the early years of the Partnership's  operation,  the Partnership
acquired  mixed  fleets  of five to seven  year  old  standard  and  specialized
intermodal containers that were leased in revenue-sharing agreements. This older
equipment is now in excess of 12 years of age and is no longer  suitable for use
in international commerce, either due to its specific physical condition, or the
lessees' preferences for newer equipment.  As individual containers are returned
from their  specific  lessees,  they are being  marketed  for sale on an "as is,
where is" basis.  The market for such sales,  although highly dependent upon the
specific location and type of container,  has softened somewhat in the last year
primarily due to the worldwide  recession.  In addition to this overall softness
in residual values, the Partnership has continued to experience reduced residual
values on the sale of refrigerated  containers,  due primarily to  technological
obsolescence associated with this equipment's refrigeration machinery.

More recently,  the Partnership  has acquired new standard dry cargo  containers
and placed  this  equipment  either on mid-term  leases or into  revenue-sharing
agreements.  These investments were at the time opportunistically  driven by the
historically  low  acquisition   prices  then  available  in  the  market.   The
Partnership  was able to acquire these  containers in the $1,500 to $1,600 range
for a standard 20-foot container;  historically, similar equipment had been sold
in the $2,000  range.  During 2001 new  container  prices and market lease rates
have continued to decline.  The primary reason for this decline is the worldwide
recession and attendant  slowdown in exports to the United  States,  mostly from
the Far East. This trend was further  exacerbated by the events of September 11,
2001. Those containers placed on mid-term leases are protected from these market
trends, whereas those containers in revenue-sharing agreements have seen reduced
earnings.

(2) Railcars

(a) Pressurized Tank Cars

Pressurized  tank cars are used to transport  liquefied  petroleum  gas (natural
gas) and  anhydrous  ammonia  (fertilizer).  The US markets  for natural gas are
industrial  applications,  residential use,  electrical  generation,  commercial
applications,  and  transportation.  Natural gas consumption is expected to grow
over the next few years as most new electricity  generation capacity planned for
is expected to be natural gas fired. Within the fertilizer industry, demand is a
function of several  factors,  including  the level of grain  prices,  status of
government  farm subsidy  programs,  amount of farming  acreage and mix of crops
planted,  weather patterns,  farming practices,  and the value of the US dollar.
Population growth and dietary trends also play an indirect role.

On an  industry-wide  basis,  North American  carloadings of the commodity group
that  includes  petroleum and  chemicals  decreased  over 5% in 2001 compared to
2000. Even with this decrease in industry-wide  demand,  the utilization of this
type of railcar within the Partnership  continued to be in the 98% range through
2001.

(b) General-Purpose (Nonpressurized) Tank Cars

These railcars are used to transport bulk liquid  commodities  and chemicals not
requiring pressurization, such as certain petroleum products, liquefied asphalt,
lubricating  oils,  molten sulfur,  vegetable oils, and corn syrup.  The overall
health of the market for these types of  commodities is closely tied to both the
US and  global  economies,  as  reflected  in  movements  in the Gross  Domestic
Product, personal consumption expenditures,  retail sales, and currency exchange
rates.  The  manufacturing,  automobile,  and  housing  sectors  are the largest
consumers of chemicals.  Within North America, 2001 carloadings of the commodity
group that  includes  chemicals  and  petroleum  products fell over 5% from 2000
levels. Utilization of the Partnership's nonpressurized tank cars decreased from
90% at the beginning of 2001 to 85% at year-end.

(c) Covered Hopper (Grain) Cars

Demand for covered hopper railcars,  which are specifically  designed to service
the grain industry,  continued to experience  weakness during 2001;  carloadings
were down 2% compared to 2000 volumes.  The US  agribusiness  industry  serves a
domestic  market  that is  relatively  mature,  the  future  growth  of which is
expected to be consistent but modest.  Most domestic grain rail traffic moves to
food  processors,  poultry  breeders,  and feedlots.  The more  volatile  export
business, which accounts for approximately 30% of total grain shipments,  serves
emerging and developing  nations.  In these  countries,  demand for protein-rich
foods  is  growing  more  rapidly  than  in the  United  States,  due to  higher
population  growth,  a rapid pace of  industrialization,  and rising  disposable
income.  Other factors contributing to the softness in demand for covered hopper
railcars are the large  number of new  railcars  built during the last few years
and the improved  utilization of covered  hoppers by the railroads.  As in 2000,
covered   hopper   railcars  whose  leases  expired  in  2001  were  renewed  at
considerably lower rental rates. Utilization of the Partnership's covered hopper
railcars decreased from 94% at the beginning of 2001 to 54% at year-end.

(3) Aircraft

(a) Commercial Aircraft

Prior to September 11, 2001,  Boeing and Airbus  Industries  predicted  that the
rate of growth in the demand for air transportation services would be relatively
robust  for the next 20  years.  Boeing's  prediction  was that the  demand  for
passenger  services  would grow at an average  rate of about 5% per year and the
demand for cargo  traffic  would grow at about 6% per year during  such  period.
Airbus'  numbers  were  largely  the  same at 5% and 6%,  respectively.  Neither
manufacturer  has  released  new  long-term  predictions;   however,  both  have
confirmed lower production rates as well as substantial reductions in their work
forces. Both manufacturers  experienced significant reductions in the numbers of
new  orders  for the  year  2001  (through  the end of  November),  with  Boeing
reporting  294 (as compared to 611 the previous  year) and Airbus  reporting 352
(as compared to 520 for the previous year).

Current  Market:  It is to be noted that,  even prior to the events on September
11, 2001, the worldwide  airline industry  experienced  negative traffic growth,
which in itself is  unprecedented  in peace  time (it also  happened  during and
after the Gulf War). The tragic events of September 11, 2001 have resulted in an
unprecedented market situation for used commercial aircraft.  The major carriers
in the US have grounded (or are in the process of grounding)  approximately  20%
of their fleets,  causing the imbalance  between  supply and demand for aircraft
seats to be exacerbated.  In short,  the market for used commercial  aircraft is
more  negatively  impacted  than  ever  and is in  un-chartered  territory.  The
Partnership's portfolio of aircraft has been severely impacted.

The  Partnership  owns  40%  of  two  DC-9  aircraft.  These  leases  have  been
renegotiated and the resulting incoming cash flow will be severely reduced.  The
Partnership also owns one MD-82 aircraft, which is on long-term lease to a major
US carrier at above market rates, and 62% of one Boeing 737-300 aircraft,  which
was placed on lease in late 2001.

(b) Rotables

The Partnership  owns a package of aircraft  components,  or rotables,  that are
used for MD-83 aircraft.  Aircraft rotables are replacement spare parts that are
held in inventory by an airline.  The types of rotables  owned and leased by the
Partnership  include  avionics,  replacement  doors,  control  surfaces,  pumps,
valves, and other comparable equipment. The rotable market softened considerably
in 2001 as a result of increased scrapping or parting out of aircraft.

(4) Marine Vessel - Product Tanker

The  Partnership  has  an  investment  in a  product  tanker  that  operates  in
international  markets carrying a variety of commodity-type  cargos.  Demand for
commodity-based  shipping is closely tied to worldwide economic growth patterns,
which can  affect  demand by  causing  changes  in volume on trade  routes.  The
General Partner operates the Partnership's product tanker in the spot chartering
markets, carrying mostly fuel oil and similar petroleum distillates, an approach
that provides the flexibility to adapt to changes in market conditions.

The market for product tankers  improved  throughout most of 2001, with dramatic
improvements experienced in the first and second quarters; followed by softening
in the third and fourth quarters. The Partnership's product tanker has continued
to operate with very little idle time between charters,  but at lower rates than
experienced earlier in the year.

(5) Intermodal (Piggyback) Trailers

Intermodal  trailers  are used to  transport  a variety  of dry goods by rail on
flatcars,  usually for  distances  of over 400 miles.  Over the past five years,
intermodal   trailers  have  continued  to  be  rapidly  displaced  by  domestic
containers  as  the  preferred   method  of  transport  for  such  goods.   This
displacement  occurs because  railroads  offer  approximately  20% lower freight
rates on domestic  containers compared to trailer rates. During 2001, demand for
intermodal  trailers was much more volatile than historic  norms.  Unusually low
demand  occurred  over the  second  half of the year  due to a  rapidly  slowing
economy and low rail freight rates for competing  53-foot  domestic  containers.
Due to the  decline  in demand,  which  occurred  over the latter  half of 2001,
shipments  for  the  year  within  the  intermodal   trailer   market   declined
approximately 10% compared to the prior year. Average  utilization of the entire
US intermodal  fleet rose from 73% in 1998 to 77% in 1999,  and then declined to
75% in 2000 and further declined to a record low of 63% in 2001.

The General  Partner  continued  its  aggressive  marketing  program in a bid to
attract new customers for the  Partnership's  intermodal  trailers  during 2001.
Even with these efforts,  average  utilization of the  Partnership's  intermodal
trailers for the year 2001 dropped 8% to approximately  73%, still 10% above the
national average.

The trend towards using domestic  containers  instead of intermodal  trailers is
expected to accelerate in the future. Overall,  intermodal trailer shipments are
forecast  to  decline  by 10%  to 15% in  2002,  compared  to  2001,  due to the
anticipated  continued weakness of the overall economy.  As such, the nationwide
supply of intermodal trailers is expected to have approximately  25,000 units in
surplus for 2002. For the  Partnership's  intermodal  fleet, the General Partner
will  continue  to seek to expand its  customer  base while  minimizing  trailer
downtime at repair shops and terminals.  Significant efforts will continue to be
undertaken to reduce maintenance costs and cartage costs.

(E) Government Regulations

The use,  maintenance,  and  ownership  of equipment  are  regulated by federal,
state, local, or foreign governmental  authorities.  Such regulations may impose
restrictions and financial burdens on the Partnership's  ownership and operation
of  equipment.  Changes  in  government  regulations,   industry  standards,  or
deregulation  may also  affect  the  ownership,  operation,  and  resale  of the
equipment.  Substantial  portions of the Partnership's  equipment  portfolio are
either registered or operated internationally.  Such equipment may be subject to
adverse  political,  governmental,  or  legal  actions,  including  the  risk of
expropriation  or loss arising from  hostilities.  Certain of the  Partnership's
equipment is subject to extensive  safety and operating  regulations,  which may
require its removal from service or extensive  modification of such equipment to
meet  these  regulations,   at  considerable  cost  to  the  Partnership.   Such
regulations include but are not limited to:

     (1) the United  States (US) Oil Pollution  Act of 1990,  which  established
     liability  for   operators  and  owners  of  marine   vessels  that  create
     environmental  pollution.  This  regulation  has  resulted  in  higher  oil
     pollution  liability  insurance.  The  lessee  of the  equipment  typically
     reimburses the Partnership for these additional costs;

     (2) the Montreal  Protocol on  Substances  that Deplete the Ozone Layer and
     the US Clean Air Act  Amendments  of 1990,  which call for the  control and
     eventual  replacement  of  substances  that  have  been  found  to cause or
     contribute  significantly  to harmful  effects to the  stratospheric  ozone
     layer and which are used extensively as refrigerants in refrigerated marine
     cargo containers; and

     (3) the US Department of Transportation's  Hazardous Materials  Regulations
     regulates  the  classification  and  packaging  requirements  of  hazardous
     materials which apply particularly to the Partnership's tank railcars.  The
     Federal  Railroad  Administration  has mandated that effective July 1, 2000
     all tank railcars must be  re-qualified  every ten years from the last test
     date stenciled on each railcar to insure tank shell  integrity.  Tank shell
     thickness,  weld seams, and weld attachments must be inspected and repaired
     if necessary to re-qualify  the tank railcar for service.  The average cost
     of this  inspection  is $3,600 for  jacketed  tank  railcars and $1,800 for
     non-jacketed  tank  railcars,  not including any  necessary  repairs.  This
     inspection is to be performed at the next scheduled tank test and every ten
     years thereafter. The Partnership currently owns 374 jacketed tank railcars
     and 170  non-jacketed  tank  railcars that will need  re-qualification.  To
     date, a total of 77 tank railcars have been  inspected  with no significant
     defects.

As of  December  31,  2001,  the  Partnership  is in  compliance  with the above
governmental  regulations.  Typically,  costs  related  to  extensive  equipment
modifications to meet government regulations are passed on to the lessee of that
equipment.

ITEM 2. PROPERTIES

The Partnership  neither owns nor leases any properties other than the equipment
it has  purchased  and its  interests in entities that own equipment for leasing
purposes.  As of  December  31,  2001,  the  Partnership  owned a  portfolio  of
transportation  and related  equipment  and  investments  in equipment  owned by
unconsolidated special-purpose entities (USPEs) as described in Item 1, Table 1.
The Partnership acquired equipment with the proceeds of the Partnership offering
of $166.1 million through the third quarter of 1993, with proceeds from the debt
financing of $30.0  million,  and by reinvesting a portion of its operating cash
flow in additional equipment.

The Partnership  maintains its principal office at 120 Montgomery Street,  Suite
1350, San Francisco, California 94104. All office facilities are provided by FSI
without reimbursement by the Partnership.

ITEM 3. LEGAL PROCEEDINGS

Two class action lawsuits which were filed against PLM International and various
of its wholly owned  subsidiaries  in January 1997 in the United States District
Court for the Southern District of Alabama, Southern Division (the court), Civil
Action No.  97-0177-BH-C  (the Koch action),  and June 1997 in the San Francisco
Superior Court, San Francisco,  California,  Case No. 987062 (the Romei action),
were fully resolved during the fourth quarter of 2001.

The named  plaintiffs were individuals who invested in PLM Equipment Growth Fund
IV (Fund IV), PLM Equipment  Growth Fund V (Fund V), the Partnership  (Fund VI),
and PLM  Equipment  Growth & Income  Fund VII  (Fund VII and  collectively,  the
Funds),  each a California  limited  partnership  for which PLMI's  wholly owned
subsidiary,  FSI, acts as the General Partner. The complaints asserted causes of
action  against  all  defendants  for fraud and deceit,  suppression,  negligent
misrepresentation,  negligent and intentional breaches of fiduciary duty, unjust
enrichment,   conversion,   conspiracy,   unfair  and  deceptive  practices  and
violations of state securities law.  Plaintiffs alleged that each defendant owed
plaintiffs  and the class  certain  duties due to their  status as  fiduciaries,
financial  advisors,  agents,  and  control  persons.  Based  on  these  duties,
plaintiffs   asserted  liability  against  defendants  for  improper  sales  and
marketing   practices,   mismanagement   of  the  Funds,   and  concealing  such
mismanagement  from  investors  in  the  Funds.  Plaintiffs  sought  unspecified
compensatory damages, as well as punitive damages.

In February  1999,  the parties to the Koch and Romei actions agreed to monetary
and equitable settlements of the lawsuits, with no admission of liability by any
defendant,  and filed a  Stipulation  of  Settlement  with the court.  The court
preliminarily  approved the settlement in August 2000, and information regarding
the  settlement  was sent to class members in September  2000. A final  fairness
hearing  was held on  November  29,  2000,  and on April 25,  2001,  the federal
magistrate  judge  assigned  to the case  entered  a Report  and  Recommendation
recommending  final  approval of the monetary and equitable  settlements  to the
federal district court judge. On July 24, 2001, the federal district court judge
adopted the Report and  Recommendation,  and entered a final judgment  approving
the settlements.  No appeal has been filed and the time for filing an appeal has
expired.

The monetary  settlement  provides  for a  settlement  and release of all claims
against defendants in exchange for payment for the benefit of the class of up to
$6.6  million,  consisting  of $0.3 million  deposited by PLMI and the remainder
funded by an insurance  policy.  The final settlement amount of $4.9 million (of
which PLMI's share was approximately $0.3 million) was accrued in 1999, paid out
in the fourth quarter of 2001 and was determined based upon the number of claims
filed by class  members,  the amount of attorneys'  fees awarded by the court to
plaintiffs'  attorneys,  and the amount of the administrative  costs incurred in
connection with the settlement.

The equitable  settlement  provides,  among other things, for: (a) the extension
(until  January 1, 2007) of the date by which FSI must complete  liquidation  of
the Funds' equipment,  except for Fund IV, (b) the extension (until December 31,
2004) of the period during which FSI can reinvest the Funds' funds in additional
equipment,  except  for Fund IV, (c) an  increase  of up to 20% in the amount of
front-end fees (including  acquisition and lease  negotiation  fees) that FSI is
entitled  to earn in excess  of the  compensatory  limitations  set forth in the
North American  Securities  Administrator's  Association's  Statement of Policy;
except for Fund IV, (d) a one-time purchase by each of Funds V, VI and VII of up
to 10% of that  partnership's  outstanding  units for 80% of net asset value per
unit as of  September  30,  2000;  and  (e) the  deferral  of a  portion  of the
management fees paid, except for Fund IV, to an affiliate of FSI until, if ever,
certain  performance  thresholds  have  been  met by the  Funds.  The  equitable
settlement  also  provides  for  payment of  additional  attorneys'  fees to the
plaintiffs'  attorneys  from Fund  funds in the  event,  if ever,  that  certain
performance  thresholds have been met by the Funds.  Following a vote of limited
partners  resulting in less than 50% of the limited partners of each of Funds V,
VI and VII voting  against  such  amendments  and after  final  approval  of the
settlement,  each of the Funds'  limited  partnership  agreements was amended to
reflect these changes.  During the fourth quarter of 2001, the respective  Funds
purchased  limited  partnership  units from those  equitable  class  members who
submitted  timely requests for purchase.  Fund VI agreed to purchase  489,344 of
its limited partnership units at a total cost of $2.8 million.

The Partnership,  together with affiliates,  has initiated litigation in various
official  forums in the United  States and India against two  defaulting  Indian
airline  lessees to repossess  Partnership  property and to recover  damages for
failure to pay rent and failure to maintain  such  property in  accordance  with
relevant lease  contracts.  The  Partnership has repossessed all of its property
previously leased to these airlines. In response to the Partnership's collection
efforts,  the airline  lessees filed  counter-claims  against the Partnership in
excess of the  Partnership's  claims  against the airline.  The General  Partner
believes that the airline's  counterclaims are completely without merit, and the
General Partner will vigorously defend against such counterclaims.

During 2001,  an  arbitration  hearing was held between one India lessee and the
Partnership and the  Partnership  was awarded a settlement.  The General Partner
and the lessee are in the process of negotiating the settlement in a manner that
benefits all parties involved. The General Partner did not accrue the settlement
in the  December  31,  2001  financial  statements  because  the  likelihood  of
collection of the settlement is remote. The General Partner will continue to try
to collect the full amount of the settlement.

During 2001, the General Partner decided to minimize its collection efforts from
the  other  India  lessee  in  order  to save  the  Partnership  from  incurring
additional  expenses associated with trying to collect from a lessee that has no
apparent ability to pay.

The  Partnership  is involved as plaintiff  or defendant in various  other legal
actions  incidental  to its  business.  Management  does not believe that any of
these  actions  will be  material  to the  financial  condition  or  results  of
operations of the Partnership.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

No matters were submitted to a vote of the Partnership's limited partners during
the fourth quarter of its fiscal year ended December 31, 2001.







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<PAGE>


                                     PART II

ITEM 5. MARKET FOR THE PARTNERSHIP'S EQUITY AND RELATED UNITHOLDER MATTERS

Pursuant  to the terms of the  partnership  agreement,  the  General  Partner is
entitled to 5% of the cash distributions of the Partnership. The General Partner
is the sole holder of such  interests.  Net income is  allocated  to the General
Partner to the extent necessary to cause the General  Partner's  capital account
to  equal  zero.  The  remaining  interests  in the  profits,  losses,  and cash
distributions  of the Partnership are allocated to the limited  partners.  As of
December  31,  2001,  there were 7,544  limited  partners  holding  units in the
Partnership.

There are several  secondary  markets in which limited  partnership units trade.
Secondary markets are characterized as having few buyers for limited partnership
interests and therefore are viewed as being inefficient vehicles for the sale of
limited partnership units. Presently,  there is no public market for the limited
partnership units and none is likely to develop.

To prevent the units from being considered  publicly traded and thereby to avoid
taxation of the Partnership as an association treated as a corporation under the
Internal  Revenue Code, the limited  partnership  units will not be transferable
without  the  consent  of the  General  Partner,  which may be  withheld  in its
absolute discretion. The General Partner intends to monitor transfers of limited
Partnership  units in an effort to ensure that they do not exceed the percentage
or number permitted by certain safe harbors  promulgated by the Internal Revenue
Service.  A transfer may be  prohibited  if the intended  transferee is not a US
citizen or if the transfer  would cause any portion of the units of a "Qualified
Plan" as defined by the  Employee  Retirement  Income  Security  Act of 1974 and
Individual Retirement Accounts to exceed the allowable limit.

As a result of the  settlement in the Koch and Romei actions (see Note 10 to the
audited  financial  statements),  the Partnership was required to purchase up to
10% of the  Partnership's  limited  partnership  units  for 80% of the net asset
value per unit.  During the fourth quarter 2001, the General Partner,  on behalf
of the  Partnership,  agreed to purchase 489,344 limited  partnership  units for
$2.8 million. The cash for this purchase came from available cash.













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<PAGE>


ITEM 6. SELECTED FINANCIAL DATA

Table 2, below, lists selected financial data for the Partnership:
<TABLE>
<CAPTION>

                                     TABLE 2

                        For the Years Ended December 31,
         (In thousands of dollars, except weighted-average unit amounts)

                                                 2001           2000           1999          1998         1997
                                             -----------------------------------------------------------------------

Operating results:
<S>                                          <C>            <C>             <C>         <C>           <C>
  Total revenues                             $    13,409    $    19,926     $   50,209  $     35,140  $     39,576
  Net gain on disposition of equipment             1,077          2,147         25,951         6,253        10,121
  Loss on revaluation of equipment                    --            374          3,567         4,276            --
  Equity in net income (loss) of uncon-
    solidated special-purpose entities              (935)        (1,904)        (1,003)        6,465         3,336
  Net income (loss)                               (1,006)           412          5,996         1,445         9,232

At year-end:
  Total assets                               $    48,711    $    64,063     $   78,204  $    104,270  $    121,551
  Note payable                                    20,000         30,000         30,000        30,000        30,000
  Total liabilities                               22,232         32,441         33,183        38,022        39,006

Cash distribution                            $     1,372    $    13,794     $   13,806  $     15,226  $     17,384

Cash distribution representing
  a return of capital to the limited
  partners                                   $     1,286    $    13,104     $    7,810  $     13,781  $      8,152

Per weighted-average limited partnership unit:

Net income (loss)                            $     (0.13) 1 $     (0.03) 1  $     0.65 1$       0.08 1$       1.01 1

Cash distribution                            $      0.16    $      1.60     $     1.60  $       1.76  $       2.00

Cash distribution representing
  a return of capital                        $      0.16    $      1.60     $     0.95  $       1.68  $       0.99

(1)  After an increase of loss necessary to cause the General  Partner's capital
     account to equal zero of $0.1 million ($0.02 per  weighted-average  limited
     partnership (LP) unit) in 2001 and $0.7 million ($0.08 per weighted-average
     LP unit) in 2000,  and after  reduction  of income  necessary  to cause the
     General  Partner's capital account to equal zero of $0.4 million ($0.04 per
     weighted-average LP unit) in 1999, $0.7 million ($0.08 per weighted-average
     LP unit) in 1998, and $0.4 million ($0.04 per  weighted-average LP unit) in
     1997.
</TABLE>






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<PAGE>


ITEM 7. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

(A) Introduction

Management's  discussion  and  analysis of  financial  condition  and results of
operations  relates to the financial  statements of PLM Equipment Growth Fund VI
(the Partnership).  The following  discussion and analysis of operations focuses
on the performance of the  Partnership's  equipment in various segments in which
it operates and its effect on the Partnership's overall financial condition.

(B) Results of Operations - Factors Affecting Performance

(1) Re-leasing Activity and Repricing Exposure to Current Economic Conditions

The exposure of the Partnership's  equipment  portfolio to repricing risk occurs
whenever the leases for the equipment expire or are otherwise terminated and the
equipment must be remarketed.  Major factors influencing the current market rate
for  Partnership  equipment  include supply and demand for similar or comparable
types of  transport  capacity,  desirability  of the  equipment  in the  leasing
market,  market  conditions  for the  particular  industry  segment in which the
equipment is to be leased, overall economic conditions,  and various regulations
concerning  the use of the  equipment.  Equipment that is idle or out of service
between the expiration of one lease and the assumption of a subsequent lease can
result in a  reduction  of  contribution  to the  Partnership.  The  Partnership
experienced  re-leasing or repricing activity in 2001 for its railcar,  trailer,
marine vessel, aircraft, and marine container portfolios.

     (a) Railcars:  This equipment experienced  significant re-leasing activity.
Lease  rates in this market are  showing  signs of weakness  and this has led to
lower  utilization and lower  contribution to the Partnership as existing leases
expire and renewal leases are negotiated.

     (b)  Trailers:   The  Partnership's   trailer  portfolio   operates  within
short-line  railroad  systems.  The relatively  short duration of most leases in
these operations exposes the trailers to considerable re-leasing activity.

     (c) Marine  vessel:  The  Partnership's  investment  in an entity  owning a
marine vessel operated in the short-term  leasing  market.  As a result of this,
the  Partnership's  partially  owned marine  vessel was  remarketed  during 2001
exposing it to re-leasing and repricing risk.

     (d) Aircraft:  This  equipment  also  experienced  re-leasing and repricing
activity.  The Partnership's  owned aircraft was re-leased during 2001 at a much
lower rate and the Partnership's  investment in a trust owning two aircraft on a
direct finance lease will also see a decrease in revenues during 2002 due to the
lease being  renegotiated in 2001 at a much lower rate. The Partnership's  other
partially  owned  aircraft on an operating  lease was  re-leased  during 2001 at
approximately the same rate that was in place during 2000.

     (e) Marine  containers:  Some of the  Partnership's  marine  containers are
leased to operators of  utilization-type  leasing pools and, as such, are highly
exposed to repricing activity.

(2) Equipment Liquidations

Liquidation of Partnership owned equipment and of investments in unconsolidated
special-purpose entities (USPEs), unless accompanied by an immediate replacement
of additional equipment earning similar rates (see Reinvestment Risk, below),
represents a reduction in the size of the equipment portfolio and may result in
a reduction of contribution to the Partnership.

During  2001,  the  Partnership  disposed of owned  equipment  that  included an
aircraft, a marine vessel, marine containers,  trailers,  and railcars for total
proceeds of $3.7 million.  The Partnership  also disposed of its interest in two
USPEs that each owned a marine vessel for proceeds of $2.3 million.


<PAGE>


(3) Nonperforming Lessees

Lessees not  performing  under the terms of their  leases,  either by not paying
rent,  not  maintaining  or  operating  the  equipment  in  accordance  with the
conditions of the leases, or other possible departures from the lease terms, can
result  not  only in  reductions  in  contribution,  but also  may  require  the
Partnership  to assume  additional  costs to  protect  its  interests  under the
leases,  such as  repossession  or legal fees. The  Partnership  experienced the
following in 2001:

     (i) Two former India lessees are having financial difficulties. The General
Partner has initiated litigation in various official forums in the United States
and India against the defaulting  Indian airline  lessees to recover damages for
failure to pay rent and failure to maintain  such  property in  accordance  with
relevant  lease  contracts.  The total  amount of $2.2  million  due from  these
lessees  had  been  reserved  for as a bad debt  and was  written  off as it was
determined to be uncollectible based on the financial status of the lessees. The
Partnership  has repossessed  its property  previously  leased to these airlines
(see Note 10 to the audited financial statements).

     (ii)Trans  World  Airlines  (TWA),  a former  lessee,  filed for bankruptcy
protection  under Chapter 11 in January  2001.  Upon the  acquisition  of TWA by
American  Airlines (AA), the General Partner  accepted an offer from AA to lease
the aircraft for 84 months at the current market rate.

(4) Reinvestment Risk

Reinvestment risk occurs when the Partnership cannot generate sufficient surplus
cash after fulfillment of operating obligations and distributions to reinvest in
additional equipment during the reinvestment phase of the Partnership, equipment
is disposed of for less than threshold amounts, proceeds from dispositions, or
surplus cash available for reinvestment cannot be reinvested at the threshold
lease rates, or proceeds from sales or surplus cash available for reinvestment
cannot be deployed in a timely manner.

Pursuant to the equitable  settlement related to the Koch and Romei actions (see
Note  10 to the  audited  financial  statements),  the  Partnership  intends  to
increase  its  equipment  portfolio  by  investing  surplus  cash in  additional
equipment,  after fulfilling  operating  requirements,  until December 31, 2004.
Additionally,  during 2001, the Partnership  paid PLM Financial  Services,  Inc.
(FSI or the General  Partner) $0.8 million in acquisition and lease  negotiation
fees related to equipment  purchased during 1999.  Depreciation and amortization
of $0.3 million,  which  represents the cumulative  effect of  depreciation  and
amortization  that should have been  recorded  from the purchase of equipment in
1999 until the equitable settlement, was recorded during 2001.

Other  nonoperating  funds  for  reinvestment  are  generated  from  the sale of
equipment prior to the Partnership's  planned  liquidation phase, the receipt of
funds  realized from the payment of stipulated  loss values on equipment lost or
disposed of while it was subject to lease  agreements,  or from the  exercise of
purchase options in certain lease  agreements.  Equipment sales generally result
from  evaluations  by the General  Partner that  continued  ownership of certain
equipment is either  inadequate to meet Partnership  performance  goals, or that
market conditions,  market values, and other  considerations  indicate it is the
appropriate time to sell certain equipment.

(5) Equipment Valuation

In accordance with the Financial  Accounting Standards Board (FASB) Statement of
Financial Accounting Standards (SFAS) No. 121, "Accounting for the Impairment of
Long-Lived  Assets and for Long-Lived  Assets to Be Disposed Of" (SFAS No. 121),
the General Partner reviews the carrying values of the  Partnership's  equipment
portfolio at least  quarterly  and  whenever  circumstances  indicated  that the
carrying value of an asset may not be recoverable  due to expected future market
conditions.  If the projected  undiscounted cash flows and the fair market value
of the equipment was less than the carrying  value of the  equipment,  a loss on
revaluation  is  recorded.  During  2001,  a USPE  trust  owning  two  Stage III
commercial  aircraft on a direct finance lease reduced its net investment in the
finance lease receivable due to a series of lease amendments.  The Partnership's
proportionate share of this writedown, which is included in equity in net income
(loss) of the USPE in the  accompanying  statement of income,  was $1.6 million.
Reductions  of $0.4  million  and $3.6  million to the  carrying  value of owned
equipment were required during 2000 and 1999,  respectively.  No revaluations to
owned  equipment were required in 2001 or partially  owned equipment in 2000 and
1999.

In October 2001, the FASB issued SFAS No. 144, "Accounting for the Impairment or
Disposal of Long-Lived Assets" (SFAS No. 144), which replaces SFAS No. 121. SFAS
No. 144 provides updated guidance  concerning the recognition and measurement of
an impairment loss for certain types of long-lived assets,  expands the scope of
a discontinued operation to include a component of an entity, and eliminates the
current  exemption to consolidation  when control over a subsidiary is likely to
be  temporary.  SFAS No. 144 is  effective  for  fiscal  years  beginning  after
December 15, 2001.

The  Partnership  will apply the new rules on accounting  for the  impairment or
disposal of long-lived  assets  beginning in the first quarter of 2002, and they
are not anticipated to have an impact on the Partnership's earnings or financial
position.

(C) Financial Condition - Capital Resources, Liquidity, and Unit Redemption Plan

The General Partner purchased the Partnership's initial equipment portfolio with
capital raised from its initial equity  offering of $166.1 million and permanent
debt  financing of $30.0  million.  No further  capital  contributions  from the
limited  partners are  permitted  under the terms of the  Partnership's  limited
partnership agreement.

The Partnership relies on operating cash flow to meet its operating  obligations
and to make cash distributions.

For the year ended December 31, 2001, the Partnership  generated $8.8 million in
operating cash (net cash provided by operating  activities plus  non-liquidating
cash  distributions  from  USPEs)  to meet its  operating  obligations  and make
distributions of $1.4 million to the partners.

During 2001, the  Partnership  disposed of owned equipment and of investments in
USPE's for aggregate proceeds of $6.0 million.

Pursuant to the equitable  settlement related to the Koch and Romei actions (see
Note 10 to the audited financial  statements),  during 2001 the Partnership paid
FSI $0.8  million in  acquisition  and lease  negotiation  fees related to owned
marine  containers and $0.6 million in acquisition  and lease  negotiation  fees
related to partially owned aircraft purchased during 1999.

Accounts  receivable  decreased  $0.6 million  during 2001. The decrease of $0.6
million was caused by amounts  the  Partnership  owes to the same  lessee  being
offset against receivables due.

Investments  in USPEs  decreased  $5.9 million during 2001. The decrease of $5.9
million was due to a loss of $0.9 million  recorded by the Partnership  from the
USPEs,  cash  distributions  of $3.3  million  from the USPEs,  and  liquidating
distributions from USPEs of $2.3 million resulting from the sale of two entities
owning marine  vessels.  These  decreases were offset in part, by a $0.6 million
additional investment in a USPE made by the Partnership.

Accounts payable  increased $0.1 million during the year ended 2001. An increase
of $1.0  million was due to a debt  prepayment  penalty  accrued at December 31,
2001. A similar accrual was not required at December 31, 2000. This increase was
offset, in part, by a decrease of $0.6 million caused by amounts the Partnership
owed to a lessee being offset against receivables due from the same lessee and a
$0.3 million decrease due to the timing of cash payments.

Due to affiliates  increased $0.1 million  during 2001 due to additional  engine
reserves due to a USPE.

Lessee deposits and reserve for repairs decreased due to the reclassification of
$0.4  million in lessee  deposits  and repair for  reserves to  equipment  sales
proceeds.

The  Partnership  made the  regularly  scheduled  annual  debt  payment of $10.0
million to the lenders of the notes payable on November 13, 2001.

In the fourth quarter 2001, the General  Partner,  on behalf of the Partnership,
signed a commitment  letter to refinance the  Partnership's  note  payable.  The
commitment  is for a $30.0  million term loan  facility  with a maturity date of
five years after funding.  The loan will call for equal quarterly principal plus
interest  payments  over the term of the loan.  The note will bear  interest  at
either the  floating  rate of LIBOR plus 2.5% or the fixed rate of the  lender's
cost of funds,  as defined in the  agreement,  plus 2.5%.  During  January 2002,
$15.0  million  was drawn  under this loan and the  existing  note  payable  was
repaid. The General Partner anticipates that an additional $10.0 million will be
borrowed under this facility in 2002.

The Partnership will incur a prepayment penalty of approximately $1.0 million to
prepay the existing  senior notes payable.  This was accrued in the December 31,
2001 financial statements.

Debt  placement fees increased $0.3 million due to fees paid in 2001 for the new
$30.0  million term loan that will  replace the existing  senior note payable in
2002.

As a result of the  settlement in the Koch and Romei actions (see Note 10 to the
audited  financial  statements),  the  Partnership's  redemption  plan  has been
terminated  and  the  Partnership  was  required  to  purchase  up to 10% of the
Partnership's  limited  partnership  units for 80% of the net asset  valued  per
unit.  During the fourth  quarter 2001,  the General  Partner,  on behalf of the
Partnership,  funded  $2.8  million  to the agent to  purchase  489,344  limited
partnership units. The cash for this purchase came from available cash.

In April 2001,  PLM  International,  Inc.  (PLMI)  entered into a $15.0  million
warehouse facility, which is shared with the Partnership, PLM Equipment Growth &
Income Fund VII, and Professional  Lease  Management  Income Fund I, LLC. During
December  2001,  this  facility was amended to lower the amount  available to be
borrowed to $10.0 million. The facility provides for financing up to 100% of the
cost of the equipment.  Outstanding borrowings by one borrower reduce the amount
available  to  each  of the  other  borrowers  under  the  facility.  Individual
borrowings may be outstanding  for no more than 270 days,  with all advances due
no later than April 12, 2002. Interest accrues either at the prime rate or LIBOR
plus  2.0% at the  borrower's  option  and is set at the time of an  advance  of
funds.  Borrowings by the  Partnership  are  guaranteed  by PLMI.  This facility
expires in April 2002. The General Partner believes it will be able to renew the
warehouse  facility  upon its  expiration  with  terms  similar  to those in the
current facility.

As of March 25, 2002, the Partnership had no borrowings  outstanding  under this
facility and there were no other borrowings  outstanding  under this facility by
any other eligible borrower.

The General  Partner has not  planned any  expenditures,  nor is it aware of any
contingencies  that would  cause it to require  any  additional  capital to that
mentioned above.













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<PAGE>



(D) Results of Operations - Year-to-Year Detailed Comparison

(1)  Comparison  of the  Partnership's  Operating  Results  for the Years  Ended
December 31, 2001 and 2000

(a) Owned Equipment Operations

Lease  revenues  less  direct  expenses  (defined  as repairs  and  maintenance,
equipment operating,  and asset-specific  insurance expenses) on owned equipment
decreased  during the year ended December 31, 2001,  compared to 2000.  Gains or
losses  from the sale of  equipment,  interest  and other  income,  and  certain
expenses such as depreciation and  amortization  and general and  administrative
expenses relating to the operating segments (see Note 5 of the audited financial
statements),  are not  included  in the  owned  equipment  operation  discussion
because  these  expenses are indirect in nature and not a result of  operations,
but the result of owning a portfolio of equipment.  The following table presents
lease revenues less direct expenses by segment (in thousands of dollars):
<TABLE>
<CAPTION>

                                                                      For the Years
                                                                   Ended December 31,
                                                                  2001             2000
                                                                --------------------------
<S>                                                             <C>            <C>
        Marine containers                                       $ 4,587        $  4,686
        Railcars                                                  2,642           3,281
        Aircraft, aircraft engines, and components                1,824           2,722
        Trailers                                                    383           1,415
        Marine vessels                                              179           1,276
</TABLE>

Marine containers: Marine container lease revenues and direct expenses were $4.6
million and $0.1 million,  respectively,  for the year ended  December 31, 2001,
compared to $4.7 million and $20,000, respectively, during 2000. The decrease in
lease  revenues of $0.1 million during the year ended December 31, 2001, was due
to lower marine container utilization compared to 2000.

Railcars:  Railcar lease revenues and direct expenses were $3.8 million and $1.1
million,  respectively,  for the year ended December 31, 2001,  compared to $4.3
million and $1.0 million,  respectively,  during 2000. Lease revenues  decreased
$0.2 million due to lower re-lease rates earned on railcars whose leases expired
during 2001 and  decreased  $0.3  million  due to the  increase in the number of
railcars off-lease during 2001, compared to 2000. An increase in direct expenses
of $0.1 million was due to higher repairs during 2001, compared to 2000.

Aircraft,  aircraft engines, and components:  Aircraft lease revenues and direct
expenses  were  $1.8  million  and  $19,000,  respectively,  for the year  ended
December 31,  2001,  compared to $2.8  million and $0.1  million,  respectively,
during 2000.  Lease  revenues  were lower  primarily due to the reduction of the
lease rate on an MD-82 as part of a new lease agreement.

     Trailers:  Trailer lease revenues and direct expenses were $0.9 million and
$0.5 million,  respectively,  for the year ended December 31, 2001,  compared to
$2.1  million and $0.7  million,  respectively,  during  2000.  The  decrease in
trailer  contribution  of  $1.0  million  was  due  to  the  sale  of 49% of the
Partnership's trailers during 2000.

     Marine vessels:  Marine vessel lease revenues and direct expenses were $0.5
million and $0.3 million,  respectively,  for the year ended  December 31, 2001,
compared to $3.6 million and $2.3 million, respectively,  during 2000. Decreases
in lease revenues of $3.1 million and direct expenses of $2.0 million during the
year ended December 31, 2001,  compared to the same period in 2000,  were due to
the sale of all of the Partnership's wholly owned marine vessels during 2001 and
2000.

(b) Indirect Expenses Related to Owned Equipment Operations

Total  indirect  expenses of $11.3 million for the year ended  December 31, 2001
decreased from $13.4 million for the same period in 2000.  Significant variances
are explained as follows:

     (i) A $2.7 million decrease in depreciation and amortization  expenses from
2000  levels  reflects a  decrease  of $1.8  million  due to the sale of certain
equipment  during  2001 and  2000,  and a $1.2  million  decrease  caused by the
double-declining  balance  method  of  depreciation  which  results  in  greater
depreciation in the first years an asset is owned.

These  decreases  were  offset,  in part,  by an  increase  of $0.2  million  in
depreciation expenses resulting from the transfer of the Partnership's  interest
in an entity  that owned  marine  containers  from the USPE  portfolio  to owned
equipment  during 2000,  and a $0.2  million  increase in  amortization  expense
related to deferred charges.

     (ii) A $0.4 million loss on revaluation of equipment  during the year ended
December 31, 2000 resulted from the reduction of the carrying  value of a Boeing
737-200 commercial  aircraft to its estimated net realizable value. There was no
revaluation of wholly owned equipment required during 2001.

     (iii) A $0.3  million  decrease in  management  fees was due to lower lease
revenues  earned by the  Partnership  during the year ended  December  31,  2001
compared to 2000.

     (iv) A $0.7 million increase in general and administrative  expenses during
the year ended  December  31,  2001 was due to a $1.0  million  debt  prepayment
penalty in 2001. There was no similar penalty in 2000. An additional increase of
$0.2 million was due to higher  professional costs. These increases were offset,
in part, by lower costs of $0.3 million compared to 2001 resulting from the sale
of 49% of the  Partnership's  trailers  during  2000,  and by a decrease of $0.2
million resulting from decreased allocations by the General Partner.

     (v) A $0.7  million  increase  in the  recovery of bad debts was due to the
collection of past due receivables  during the year ended December 31, 2000 that
had been  previously  reserved for as a bad debt. A similar  collection  did not
occur in 2001.

(c) Net Gain on Disposition of Owned Equipment

The net gain on the  disposition of owned  equipment for the year ended December
31, 2001 totaled $1.1 million,  and resulted  from the sale of a Boeing  737-200
commercial aircraft, a marine vessel, trailers,  railcars, and marine containers
with an aggregate net book value of $3.0 million,  for proceeds of $3.7 million.
Included in the net gain on sale of the marine vessel was the unused  portion of
marine  vessel  drydocking  liability  of  $0.3  million.  The  net  gain on the
disposition of owned equipment for the year ended December 31, 2000 totaled $2.1
million,  and  resulted  from the sale of  marine  vessels,  marine  containers,
trailers,  and railcars with an aggregate  net book value of $7.3  million,  for
proceeds of $9.1 million and unused  drydocking  reserves on sold marine vessels
of $0.3 million.

(d)  Equity in Net  Income  (Loss) of  Unconsolidated  Special-Purpose  Entities
(USPEs)

Equity in net income (loss) of USPEs represents the  Partnership's  share of the
net income (loss) generated from the operation of jointly owned assets accounted
for under the equity method of accounting. These entities are single purpose and
have no debt or other  financial  encumbrances.  The  following  table  presents
equity in net income (loss) by equipment type (in thousands of dollars):
<TABLE>
<CAPTION>

                                                              For the Years
                                                            Ended December 31,
                                                          2001              2000
                                                     -----------------------------
<S>                                                    <C>              <C>
        Marine vessels                                 $   1,915        $    (548)
        Aircraft                                          (2,850)          (1,485)
        Other                                                 --              129
                                                      ------------     ------------
         Equity in net loss of USPEs                  $    (935)       $  (1,904)
                                                      ============     ============
</TABLE>

Marine vessels:  During the year ended December 31, 2001, lease revenues of $5.6
million and the gain of $0.7 million from the sale of the Partnership's interest
in two entities that owned marine vessels were offset by  depreciation  expense,
direct expenses, and administrative expenses of $4.4 million. During 2000, lease
revenues of $3.5 million were offset by depreciation  expense,  direct expenses,
and administrative expenses of $4.1 million.

Marine  vessel  lease  revenues  increased  $2.1  million  during the year ended
December 31, 2001 compared to 2000 due to the following:

     (i) Marine  vessel lease  revenues  increased  $1.8 million due to a marine
vessel  switching from a fixed rate lease to a voyage charter lease during 2001.
Under a voyage  charter  lease,  the marine  vessel  earns a higher  lease rate;
however, certain direct expenses that were previously paid by the lessee are now
paid by the owner.

     (ii)Lease  revenues  increased  $0.9 million during the year ended December
31, 2001 due to one marine vessel being on lease the entire year of 2001,  which
was in drydock and  off-lease  for nine weeks  during  2000.  During the drydock
period, the marine vessel did not earn any lease revenues.

     (iii) These increases were offset,  in part, by a $0.7 million  decrease in
lease  revenue  due to the  sale of two  marine  vessels  in 2001 in  which  the
Partnership owned an interest.

Depreciation  expense,  direct expenses,  and administrative  expenses increased
$0.3 million during the year ended December 31, 2001 compared to 2000 due to the
following:

     (i) A $1.0  million  increase in direct  expenses  due to higher  operating
expenses for one marine vessel that was on voyage charter during the year ending
December 31,  2001,  that was on fixed rate lease during part of the same period
of 2000.

     (ii)A $0.2 million increase in direct expenses due to a marine vessel being
on lease  during  the year of 2001 that was in dry dock and  off-lease  for nine
weeks in 2000.

     (iii) A $0.1  million  increase  in  management  fees due to  higher  lease
revenue on partially owned marine vessels.

     (iv) A $0.4 million decrease in depreciation  expense due to a $0.3 million
decrease from the sale of two marine vessels in which the  Partnership  owned an
interest   and  a  $0.2   million   decrease  due  to  the  use  of  the  double
declining-balance method of depreciation,  which results in greater depreciation
in the first years an asset is owned.

     (v) A $0.5 million  decrease in direct expenses  resulting from the sale of
two marine vessels in which the Partnership owned an interest.

Aircraft: As of December 31, 2001 and 2000, the Partnership owned an interest in
two  commercial  aircraft on a direct  finance lease and an interest in a Boeing
737-300 commercial  aircraft.  During the year ended December 31, 2001, revenues
of $1.7  million  were offset by  depreciation  expense,  direct  expenses,  and
administrative  expenses of $4.5 million.  During 2000, revenues of $1.5 million
were offset by depreciation expense, direct expenses and administrative expenses
of $3.0 million.

Lease  revenues  increased  $0.2 million during the year ended December 31, 2001
due to the Boeing  737-300 being  on-lease the full year of 2001.  This aircraft
was off-lease most of 2000.

Depreciation  expense,  direct expenses,  and administrative  expenses increased
$1.5 million during the year ended December 31, 2001 compared to 2000 due to:

     (i) A $1.6 million loss on revaluation was recorded on the trust that owned
two commercial aircraft on a direct finance lease during the year ended December
31,  2001  which  resulted  from  the  reduction  of the  carrying  value of the
Partnership's interest in the trust to its estimated net realizable value. There
were no revaluations to partially owned aircraft required during 2000.

     (ii)A $0.1 million increase in amortization expense due to the amortization
of deferred charges.

     (iii) A $0.1  million  increase  in bad debt  expenses  resulting  from the
collection of an unpaid accounts  receivable  during 2000 that had been reserved
for as a bad debt in a previous  year.  A similar  collection  was not  received
during 2001.

     (iv) A $0.2 million decrease in depreciation  expense due to the use of the
double  declining-balance  method of  depreciation,  which  results  in  greater
depreciation in the first years an asset is owned.

     (v) A $0.2  million  decrease in repairs and  maintenance  was due to fewer
required  repairs  during  the year  ending  2001 for the trust  owning a Boeing
737-300 compared to 2000.

(e) Net Income (Loss)

As a result of the  foregoing,  the  Partnership's  net loss for the year  ended
December  31, 2001 was $1.0  million,  compared to a net income of $0.4  million
during 2000. The Partnership's ability to acquire, operate and liquidate assets,
secure leases,  and re-lease those assets whose leases expire is subject to many
factors. Therefore, the Partnership's performance in the year ended December 31,
2001 is not necessarily indicative of future periods. In the year ended December
31, 2001, the Partnership  distributed $1.3 million to the limited partners,  or
$0.16 per weighted-average limited partnership unit.

(2)  Comparison  of the  Partnership's  Operating  Results  for the Years  Ended
December 31, 2000 and 1999

In September 1999, FSI amended the  corporate-by-laws  of certain USPEs in which
the Partnership,  or any affiliated program,  owns an interest greater than 50%.
The amendment to the corporate-by-laws provided that all decisions regarding the
acquisition  and  disposition  of the  investment  as well as other  significant
business  decisions of that  investment  would be permitted  only upon unanimous
consent  of the  Partnership  and  all  the  affiliated  programs  that  have an
ownership in the investment (the Amendment).  As such,  although the Partnership
may own a majority  interest  in a USPE,  the  Partnership  does not control its
management  and thus the equity method of accounting  was used after adoption of
the  Amendment.  As a result of the  Amendment,  as of September  30, 1999,  all
jointly  owned  equipment in which the  Partnership  owned a majority  interest,
which had been  consolidated,  was  reclassified to investments in USPEs.  Lease
revenues  and  direct   expenses  for  jointly  owned  equipment  in  which  the
Partnership  held a majority  interest  were  reported  under the  consolidation
method of accounting  during the year ended  December 31, 1999 and were included
with the owned  equipment  operations.  For the three months ended  December 31,
1999 and twelve  months  ended  December  31,  2000,  lease  revenues and direct
expenses for these  entities are reported  under the equity method of accounting
and are included with the operations of the USPEs.

(a) Owned Equipment Operations

Lease  revenues  less  direct  expenses  (defined  as repairs  and  maintenance,
equipment operating,  and asset-specific  insurance expenses) on owned equipment
decreased  during the year ended December 31, 2000,  compared to 1999.  Gains or
losses  from the sale of  equipment,  interest  and other  income,  and  certain
expenses such as depreciation and  amortization  and general and  administrative
expenses relating to the operating segments (see Note 5 to the audited financial
statements),  are not  included  in the  owned  equipment  operation  discussion
because  they are  indirect  in nature and not a result of  operations,  but the
result of owning a portfolio of equipment.  The following  table  presents lease
revenues less direct expenses by segment (in thousands of dollars):
<TABLE>
<CAPTION>

                                                                        For the Years
                                                                      Ended December 31,
                                                                    2000             1999
                                                                 ---------------------------
<S>                                                               <C>              <C>
        Marine containers                                         $  4,686         $  2,317
        Railcars                                                     3,281            3,722
        Aircraft, aircraft engines, and components                   2,722            3,649
        Trailers                                                     1,415            2,021
        Marine vessels                                               1,276            3,527
</TABLE>

Marine containers: Marine container lease revenues and direct expenses were $4.7
million  and  $20,000,  respectively,  for the year  ended  December  31,  2000,
compared to $2.3 million and $-0-,  respectively,  during  1999.  An increase in
lease  revenues of $2.2 million  during the year ended December 31, 2000 was due
to the  purchase  and lease of marine  containers  during  the second and fourth
quarters of 1999. In addition,  lease revenues increased $0.2 million due to the
transfer  of marine  containers  owned by a USPE to owned  equipment  during the
third quarter 2000.

     Railcars:  Railcar lease revenues and direct expenses were $4.3 million and
$1.0 million,  respectively,  for the year ended December 31, 2000,  compared to
$4.6  million and $0.8  million,  respectively,  during  1999.  The  decrease in
railcar lease  revenues of $0.3 million was primarily due to the increase in the
number of off-lease railcars during the year ended December 31, 2000 compared to
1999.  The  increase in direct  expenses of $0.2  million  during the year ended
December 31, 2000 was due to higher repair costs compared to 1999.

Aircraft,  aircraft engines, and components:  Aircraft lease revenues and direct
expenses  were $2.8 million and $0.1 million,  respectively,  for the year ended
December 31,  2000,  compared to $4.5  million and $0.8  million,  respectively,
during  1999. A decrease in aircraft  lease  revenues of $1.6 million and direct
expenses  of $0.1  million was due to the sale of a Boeing  767-200ER  Stage III
commercial aircraft during 1999. An additional decrease of $0.1 million in lease
revenues was due to a Boeing  737-200 that was  off-lease  during the year ended
December  31, 2000 but was  on-lease  for one month  1999.  A decrease in direct
expenses of $0.7 million  during the year ended  December  31, 2000,  was due to
repairs to the  off-lease  Boeing  737-200  during  1999 that were not  required
during 2000.

Trailers:  Trailer lease revenues and direct expenses were $2.1 million and $0.7
million,  respectively,  for the year ended December 31, 2000,  compared to $2.8
million and $0.8  million,  respectively,  during  1999.  The  decrease in lease
revenues of $0.7 million and direct expenses of $0.1 million was due to the sale
of 49% of the Partnership's trailer fleet during the year 2000.

Marine  vessels:  Marine  vessel lease  revenues and direct  expenses  were $3.6
million and $2.3 million,  respectively,  for the year ended  December 31, 2000,
compared to $9.8 million and $6.3 million, respectively, during 1999.

The  September  30,  1999  Amendment  that  changed  the  accounting  method  of
majority-held  equipment  from the  consolidation  method of  accounting  to the
equity method of accounting  impacted the reporting of lease revenues and direct
expenses of one marine  vessel.  As a result of the  Amendment,  during the year
ended  December  31,  2000,  lease  revenues  decreased  $3.5 million and direct
expenses decreased $1.9 million compared to 1999.

In addition,  lease revenues  declined $2.4 million and direct expenses declined
$1.1  million as a result of the sale of two of the  Partnership's  wholly owned
marine vessels during 2000 and 1999. Lease revenues  declined an additional $0.3
million due to lower  lease rates  earned on two wholly  owned  marine  vessels.
Direct  expenses also decreased an additional  $0.9 million on the two remaining
wholly owned  marine  vessels due to a decrease in repairs  required  during the
year ended December 31, 2000 compared to 1999.

(b) Indirect Expenses Related to Owned Equipment Operations

Total  indirect  expenses of $13.4 million for the year ended  December 31, 2000
decreased from $26.5 million for the same period in 1999.  Significant variances
are explained as follows:

     (i) A $8.1 million decrease in depreciation and amortization  expenses from
1999 levels  reflects the decrease of  approximately  $3.0 million caused by the
double-declining  balance  method  of  depreciation  which  results  in  greater
depreciation  in the first years an asset is owned,  a decrease of $1.4  million
due to the sale of certain  equipment  during  2000 and 1999,  and a decrease of
$4.8 million as a result of the Amendment  which changed the  accounting  method
used for majority-held  equipment from the consolidation method of accounting to
the equity method of accounting.  These  decreases  were offset,  in part, by an
increase of $1.0 million in depreciation  and  amortization  expenses  resulting
from the purchase of  additional  equipment  during 1999 and an increase of $0.1
million from the transfer of the Partnership's  interest in an entity that owned
marine containers from a USPE portfolio to owned equipment during 2000.

     (ii)Loss  on  revaluation  decreased  $3.2  million  during  the year ended
December 31, 2000 compared to 1999.  During 2000, a loss on  revaluation of $0.4
million  resulted from the reduction of the carrying  value of a Boeing  737-200
commercial  aircraft to its estimated net realizable value.  During 1999, a loss
on revaluation of $3.6 million was recorded for marine vessels.

     (iii)  Provision for bad debts decreased $1.3 million during the year ended
December 31, 2000. The decrease resulted from the General  Partner's  evaluation
of the  collectability  of past  due  accounts  receivable  being  lower by $0.7
million compared to 1999 and the offset of a receivable that had previously been
reserved for as a bad debt offset against $0.6 million due from the  Partnership
to this lessee.

     (iv)A $0.3  million  decrease  in  management  fees was due to lower  lease
revenues  earned by the  Partnership  during the year ended  December  31,  2000
compared to 1999.

     (v) A $0.1 million  decrease in interest expense was due to a lower average
short-term  borrowings  outstanding  during the year  ended  December  31,  2000
compared to 1999.

(c) Net Gain on Disposition of Owned Equipment

The net gain on the  disposition of owned  equipment for the year ended December
31, 2000 totaled $2.1  million,  and resulted  from the sale of marine  vessels,
marine  containers,  trailers,  and railcars with an aggregate net book value of
$7.3  million,  for proceeds of $9.1 million and unused  drydocking  reserves on
sold marine  vessels of $0.3 million.  The net gain on the  disposition of owned
equipment  for the year ended  December  31, 1999  totaled  $26.0  million,  and
resulted from the sale of a marine  vessel,  marine  containers,  trailers,  and
railcars, with an aggregate net book value of $7.9 million, for $9.3 million and
a Boeing 767-200ER Stage III commercial  aircraft with a net book value of $15.6
million for $40.1 million which includes $3.6 million of unused engine reserves.

(d) Minority Interests

Minority  interests  decreased  $7.9 million in the year ended December 31, 2000
compared  to 1999 due to the  September  30,  1999  Amendment  that  changed the
accounting method of majority-held  equipment from the  consolidation  method of
accounting to the equity method of accounting.

(e)  Equity in Net  Income  (Loss) of  Unconsolidated  Special-Purpose  Entities
(USPEs)

Equity in net income (loss) of USPEs represents the  Partnership's  share of the
net income (loss) generated from the operation of jointly-owned assets accounted
for under the equity method of accounting. These entities are single purpose and
have no debt or other  financial  encumbrances.  The  following  table  presents
equity in net income (loss) by equipment type (in thousands of dollars):
<TABLE>
<CAPTION>

                                                                 For the Year
                                                               Ended December 31,
                                                            2000              1999
                                                         -----------------------------
<S>                                                      <C>              <C>
        Mobile offshore drilling unit                    $      85        $     271
        Marine containers                                       44                5
        Marine vessels                                        (548)          (1,029)
        Aircraft                                            (1,485)            (250)
                                                         ------------     ------------
            Equity in net loss of USPEs                  $  (1,904)       $  (1,003)
                                                         ============     ============
</TABLE>

Mobile  offshore  drilling  unit: The  Partnership's  interest in an entity that
owned a mobile  offshore  drilling  unit was sold  during the fourth  quarter of
1999. During the year ended December 31, 2000, additional sales proceeds of $0.1
million were paid to the entity.  During the year ended December 31, 1999, lease
revenues of $1.2  million  were offset by the loss of $0.3 million from the sale
of this entity and depreciation  expense,  direct expenses,  and  administrative
expenses of $0.6 million.

Marine  containers:  As of December 31, 2000, the  Partnership's  interest in an
entity that owned marine  containers had been  transferred to the  Partnership's
owned equipment.  As of December 31, 1999, the Partnership  owned an interest in
an entity that owned marine containers. During the year ended December 31, 2000,
lease  revenues of $0.3  million  were offset by  depreciation  expense,  direct
expenses,  and  administrative  expenses of $0.2 million.  During the year ended
December 31, 1999,  lease  revenues of $0.5 million were offset by  depreciation
expense,  direct expenses, and administrative  expenses of $0.4 million.  Marine
containers  contribution  increased  $39,000  during the year ended December 31,
2000 compared to 1999 due primarily to the  double-declining  balance  method of
depreciation  which results in greater  depreciation in the first years an asset
is owned.

Marine vessels:  During the year ended December 31, 2000, lease revenues of $3.5
million were offset by depreciation expense, direct expenses, and administrative
expenses of $4.1  million.  During  1999,  lease  revenues of $1.6  million were
offset by depreciation expense,  direct expenses, and administrative expenses of
$2.7 million.

An increase in marine  vessel lease  revenues of $1.9  million and  depreciation
expense, direct expenses, and administrative expenses of $1.7 million during the
year ended  December 31, 2000,  was caused by the September  30, 1999  Amendment
that  changed  the  accounting  method  of  majority-held   equipment  from  the
consolidation  method of accounting  to the equity method of accounting  for one
marine vessel. The lease revenues and depreciation expense, direct expenses, and
administrative expenses for the majority-owned marine vessel were reported under
the consolidation  method of accounting under Owned Equipment  Operations during
the first nine months of the year ended December 31, 1999.

Marine  vessel  lease  revenues  decreased  $0.1  million  during the year ended
December 31, 2000 due to one marine vessel earning lower lease revenues due to a
four-week  repositioning  voyage during which the marine vessel did not earn any
lease revenues. In addition,  as a result of the repositioning,  direct expenses
also  decreased  an $0.2  million due to lower  operating  costs during the year
ended December 31, 2000 compared to 1999. The decrease in lease revenues  caused
by the  repositioning was offset by the other marine vessel earning $0.1 million
in  additional  lease  revenues due to earning a higher lease rate during all of
2000 compared to 1999.

Aircraft: As of December 31, 2000 and 1999, the Partnership owned an interest in
two  commercial  aircraft  on a  direct  finance  lease  and  a  Boeing  737-300
commercial  aircraft.  During the year ended December 31, 2000, revenues of $1.5
million were offset by depreciation expense, direct expenses, and administrative
expenses of $3.0 million.  During 1999,  revenues of $0.7 million were offset by
direct expenses and administrative expenses of $1.0 million.

An increase in aircraft lease revenues of $0.9 million and depreciation expense,
direct  expenses,  and  administrative  expenses of $2.0 million during the year
ended  December 31, 2000,  was caused by the September 30, 1999  Amendment  that
changed the accounting method of majority-held  equipment from the consolidation
method of accounting to the equity  method of  accounting  for a Boeing  737-300
commercial   aircraft.   The  depreciation   expense,   direct   expenses,   and
administrative  expenses  for  the  majority  owned  Boeing  737-300  commercial
aircraft were reported under the consolidation  method of accounting under Owned
Equipment Operations during the first nine months of the year ended December 31,
1999.

The  increase in expenses  caused by the  investment  in a trust owning a Boeing
737-300  was  partially  offset  by a $0.1  million  collection  of an  accounts
receivable that had previously  been  written-off as a bad debt. A similar event
did not occur during 1999.

(f) Net Income

As a result of the foregoing,  the  Partnership's  net income for the year ended
December  31, 2000 was $0.4  million,  compared to a net income of $6.0  million
during 1999. The  Partnership's  ability to operate  assets,  liquidate  assets,
secure leases,  and re-lease those assets whose leases expire is subject to many
factors. Therefore, the Partnership's performance in the year ended December 31,
2000 is not necessarily indicative of future periods. In the year ended December
31, 2000, the Partnership  distributed $13.1 million to the limited partners, or
$1.60 per weighted-average limited partnership unit.

(E) Geographic Information

Certain  of the  Partnership's  equipment  operates  in  international  markets.
Although these operations expose the Partnership to certain currency, political,
credit and economic risks,  the General Partner believes these risks are minimal
or has  implemented  strategies  to control the risks.  Currency  risks are at a
minimum because all invoicing,  with the exception of a small number of railcars
operating in Canada,  is conducted in US dollars.  Political risks are minimized
by avoiding  operations in countries that do not have a stable  judicial  system
and established  commercial business laws. Credit support strategies for lessees
range from letters of credit  supported by US banks to cash  deposits.  Although
these credit support mechanisms  generally allow the Partnership to maintain its
lease yield,  there are risks associated with  slow-to-respond  judicial systems
when legal  remedies  are  required to secure  payment or  repossess  equipment.
Economic risks are inherent in all international markets and the General Partner
strives to minimize this risk with market analysis prior to committing equipment
to a  particular  geographic  area.  Refer  to Note 6 to the  audited  financial
statements for  information on the lease  revenues,  net income (loss),  and net
book value of equipment in various geographic regions.

Revenues and net operating  income  (loss) by geographic  region are impacted by
the time period the asset is owned and the useful life ascribed to the asset for
depreciation  purposes.  Net  income  (loss)  from  equipment  is  significantly
impacted  by  depreciation  charges,  which are  greatest  in the early years of
ownership due to the use of the double-declining balance method of depreciation.
The relationships of geographic revenues,  net income (loss), and net book value
of equipment are expected to change  significantly in the future, as assets come
off lease and  decisions  are made  either to  redeploy  the  assets in the most
advantageous geographic location or sell the assets.

The Partnership's owned equipment on lease to US - domiciled lessees consists of
aircraft,  trailers and railcars.  During 2001, US lease revenues  accounted for
27% of the total lease revenues of wholly and jointly owned equipment while this
region reported net income of $0.9 million.

The  Partnership's  owned  equipment  on  lease  to  Canadian-domiciled  lessees
consists of railcars.  During 2001,  Canadian lease revenues accounted for 6% of
the total  lease  revenues  of wholly and jointly  owned  equipment,  while this
region reported net income of $0.5 million.

The  Partnership's  owned  equipment  that was on lease to lessees  domiciled in
Europe  consists of a portfolio  of aircraft  rotables.  Lease  revenues in this
region  accounted for 2% of the total lease revenues of wholly and jointly owned
equipment, while this region reported net income of $0.1 million.

The Partnership's investment in equipment owned by a USPE that was on lease to a
lessee  domiciled  in Iceland  consists of an aircraft.  During 2001,  Icelandic
lease  revenues  accounted  for 6% of the total  lease  revenues  of wholly  and
jointly owned equipment while this region reported net loss of $1.5 million. The
primary reasons for this loss were due to the double-declining balance method of
depreciation  which results in greater  depreciation in the first years an asset
is owned.

The  Partnership's  investment in equipment owned by a USPE on lease to a lessee
domiciled  in South  America  consists  of an  aircraft.  South  American  lease
revenues  accounted  for 1% of the total  lease  revenues  of wholly and jointly
owned equipment while this region reported net loss of $0.1 million. The primary
reasons  for  this  loss  were due to the  double-declining  balance  method  of
depreciation  which results in greater  depreciation in the first years an asset
is owned.

The  Partnership's  owned  equipment  that was on lease to lessees  domiciled in
India  consisted of aircraft.  No lease  revenues  were  reported in this region
while this region  reported net income of $0.2 million.  The primary  reason for
this region  reporting income resulted from a gain of $0.5 million from the sale
of an aircraft.

The  Partnership's  ownership  share in a USPE on  lease to a  Mexican-domiciled
lessee  consisted of two aircraft on a direct finance lease.  No operating lease
revenues  were  reported in this region  while this region  reported net loss of
$1.2  million.  The primary  reason for the net loss was due to the $1.6 million
loss recorded on the  revaluation  of the direct  finance lease to its estimated
carrying value in 2001.

The Partnership's owned equipment and investments in equipment owned by USPEs on
lease to lessees in the rest of the world  consists of marine vessels and marine
containers.  During 2001, lease revenues from these operations accounted for 58%
of the total  lease  revenues  of wholly  and  jointly  owned  equipment,  while
reporting net income from these operations of $3.8 million.

(F) Inflation

Inflation had no significant impact on the Partnership's operations during 2001,
2000, or 1999.

(G) Forward-Looking Information

Except for historical  information contained herein, the discussion in this Form
10-K contains  forward-looking  statements that involve risks and uncertainties,
such as statements of the Partnership's  plans,  objectives,  expectations,  and
intentions.  The cautionary  statements made in this Form 10-K should be read as
being applicable to all related forward-looking  statements wherever they appear
in this Form 10-K. The Partnership's actual results could differ materially from
those discussed here.

(H) Outlook for the Future

The Partnership's operation of a diversified equipment portfolio in a broad base
of markets is  intended  to reduce its  exposure  to  volatility  in  individual
equipment sectors.

The  ability  of the  Partnership  to  realize  acceptable  lease  rates  on its
equipment in the different  equipment  markets is contingent  upon many factors,
such  as  specific  market  conditions  and  economic  activity,   technological
obsolescence, and government or other regulations. The unpredictability of these
factors makes it difficult for the General  Partner to clearly  define trends or
influences that may impact the performance of the Partnership's  equipment.  The
General  Partner  continuously  monitors  both  the  equipment  markets  and the
performance of the Partnership's equipment in these markets. The General Partner
may make an evaluation to reduce the  Partnership's  exposure to those equipment
markets in which it  determines  that it cannot  operate  equipment  and achieve
acceptable  rates of  return.  Alternatively,  the  General  Partner  may make a
determination  to enter those  markets in which it  perceives  opportunities  to
profit from supply and demand instabilities, or other market imperfections.

The  Partnership  intends  to use cash  flow  from  operations  to  satisfy  its
operating   requirements,   pay  principal  and  interest  on  debt,   pay  cash
distributions to the partners,  and acquire additional  equipment until December
31, 2004.  Additionally,  the  Partnership  intends to use its new $30.0 million
term loan  facility to repay the existing  note payable and purchase  additional
equipment.

Factors affecting the Partnership's contribution during the year 2002 and beyond
include:

(i) Railcar  loadings in North America have weakened over the past year.  During
2001,  utilization and lease rates decreased.  Railcar contribution may decrease
in 2002 as existing leases expire and renewal leases are negotiated.

(ii) The cost of new marine  containers  has been at historic  lows for the past
several years which has caused downward pressure on per diem lease rates.

(iii) Marine vessel  freight rates are dependent  upon the overall  condition of
the  international  economy.  Freight rates earned by the  Partnership's  marine
vessel began to decrease  during the later half of 2001.  This trend is expected
to continue during the first half of 2002.

(iv) The airline  industry began to see lower passenger  travel during 2001. The
tragic events on September 11, 2001 worsened the situation.  As a result of this
and general  uncertainty in the airline  industry,  the  Partnership  has had to
renegotiate  leases on its owned  aircraft  and  partially  owned  aircraft on a
direct  finance  lease  during  2001 that will  result in a decrease in revenues
during 2002.

Several other factors may affect the Partnership's  operating performance in the
year 2002 and beyond,  including  changes in the  markets for the  Partnership's
equipment  and changes in the  regulatory  environment  in which that  equipment
operates.

(1) Repricing and Reinvestment Risk

Certain  portions of the  Partnership's  aircraft,  railcar,  marine  container,
marine  vessel,  and trailer  portfolios  will be remarketed in 2002 as existing
leases   expire,    exposing   the   Partnership   to   considerable   repricing
risk/opportunity.  Additionally,  the General Partner may select to sell certain
underperforming  equipment or equipment  whose  continued  operation  may become
prohibitively expensive. In either case, the General Partner intends to re-lease
or sell  equipment at prevailing  market  rates;  however,  the General  Partner
cannot  predict  these future  rates with any  certainty at this time and cannot
accurately assess the effect of such activity on future Partnership performance.
The  proceeds  from the  sold or  liquidated  equipment  will be  redeployed  to
purchase additional equipment, as the Partnership is in its reinvestment phase.

(2) Impact of Government Regulations on Future Operations

The General  Partner  operates the  Partnership's  equipment in accordance  with
current applicable regulations (see Item 1, Section E, Government  Regulations).
However, the continuing implementation of new or modified regulations by some of
the  authorities  mentioned  previously,  or others,  may  adversely  affect the
Partnership's  ability to continue to own or operate equipment in its portfolio.
Additionally,  regulatory  systems  vary  from  country  to  country,  which may
increase the burden to the Partnership of meeting regulatory  compliance for the
same equipment  operated  between  countries.  Ongoing changes in the regulatory
environment, both in the United States and internationally,  cannot be predicted
with any accuracy and preclude the General  Partner from  determining the impact
of such changes on Partnership operations, purchases, or sale of equipment.

The US Department of Transportation's  Hazardous Materials Regulations regulates
the classification and packaging  requirements of hazardous  materials and apply
particularly to Partnership's tank railcars. The Federal Railroad Administration
has mandated that effective July 1, 2000 all tank railcars must be  re-qualified
every ten years from the last test date stenciled on each railcar to insure tank
shell integrity.  Tank shell thickness, weld seams, and weld attachments must be
inspected and repaired if necessary to re-qualify  the tank railcar for service.
The average cost of this  inspection  is $3,600 for jacketed  tank  railcars and
$1,800 for non-jacketed tank railcars, not including any necessary repairs. This
inspection  is to be  performed  at the next  scheduled  tank test and every ten
years thereafter.  The Partnership currently owns 374 jacketed tank railcars and
170 non-jacketed tank railcars that will need  re-qualification.  As of December
31, 2001, a total of 77 tank railcars have been  inspected  with no  significant
defects.

(I) Distribution Levels and Additional Capital Resources

Pursuant to the amended limited  partnership  agreement,  the  Partnership  will
cease to reinvest surplus cash in additional  equipment  beginning on January 1,
2005.  Prior to that date, the General  Partner intends to continue its strategy
of selectively  redeploying equipment to achieve competitive returns, or selling
equipment  that is  underperforming  or whose  operation  becomes  prohibitively
expensive.  During this time,  the  Partnership  will use  operating  cash flow,
proceeds from the sale of equipment,  and additional  debt to meet its operating
obligations,   make  distributions  to  the  partners,  and  acquire  additional
equipment.  In the long term,  changing  market  conditions  and  used-equipment
values may preclude the General Partner from  accurately  determining the impact
of future re-leasing activity and equipment sales on Partnership performance and
liquidity.   Consequently,   the  General   Partner  cannot   establish   future
distribution levels with any certainty at this time.

The Partnership's permanent debt obligation began to mature in November 2001. In
the fourth  quarter 2001,  the General  Partner,  on behalf of the  Partnership,
signed a commitment  letter to refinance the  Partnership's  note  payable.  The
commitment  is for a $30.0  million term loan  facility  with a maturity date of
five years after funding.  The loan will call for equal quarterly principal plus
interest payments over the term of the loan.

The General Partner  believes that sufficient cash flow will be available in the
future  for  repayment  of debt  and to meet  Partnership  operating  cash  flow
requirements.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Partnership's  primary market risk exposure is that of currency  devaluation
risk. During 2001, 73% of the Partnership's total lease revenues from wholly and
jointly owned equipment came from non-United States domiciled  lessees.  Most of
the  Partnership's  leases  require  payment in US currency.  If these  lessees'
currency devalues against the US dollar, the lessees could potentially encounter
difficulty in making the US dollar denominated lease payments.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

The  financial  statements  for the  Partnership  are  listed  in the  Index  to
Financial Statements included in Item 14(a) of this Annual Report on Form 10-K.

ITEM  9.  CHANGES  IN AND  DISAGREEMENTS  WITH  ACCOUNTANTS  ON  ACCOUNTING  AND
          FINANCIAL DISCLOSURE

     (A)  Disagreements with Accountants on Accounting and Financial Disclosures

          None

     (B)  Changes in Accountants

          In September 2001, the General Partner  announced that the Partnership
          had engaged  Deloitte & Touche LLP as the  Partnership's  auditors and
          had dismissed  KPMG LLP. KPMG LLP issued  unqualified  opinions on the
          1999  and  2000  financial  statements.  During  1999,  2000  and  the
          subsequent  interim  period  preceding such  dismissal,  there were no
          disagreements with KPMG LLP on any matter of accounting  principles or
          practices,  financial  statement  disclosure,  or  auditing  scope  or
          procedure.



<PAGE>


                                    PART III

ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF PLM FINANCIAL SERVICES, INC.

As of the date of this annual  report,  the directors and executive  officers of
PLM Financial  Services,  Inc. (and key executive  officers of its subsidiaries)
are as follows:
<TABLE>
<CAPTION>

Name                                     Age     Position
---------------------------------------- ------- ------------------------------------------------------------------


<S>                                      <C>
Gary D. Engle                            52      Director, PLM Financial Services, Inc., PLM Investment
                                                 Management Inc., and PLM Transportation Equipment Corp.

James A. Coyne                           41      Director and Secretary, PLM Financial Services Inc., PLM
                                                 Investment Management, Inc., and PLM Transportation Equipment
                                                 Corp.

Stephen M. Bess                          55      President and Director, PLM Financial Services, Inc., PLM
                                                 Investment Management Inc., and PLM Transportation Equipment
                                                 Corp.
</TABLE>

Gary D. Engle was  appointed  a Director  of PLM  Financial  Services,  Inc.  in
January 2002. He was appointed a director of PLM International, Inc. in February
2001. He is a director and President of MILPI.  Since  November  1997, Mr. Engle
has been Chairman and Chief Executive Officer of Semele Group Inc. ("Semele"), a
publicly traded company.  Mr. Engle is President and Chief Executive  Officer of
Equis  Financial  Group  ("EFG"),  which he  joined  in 1990 as  Executive  Vice
President.  Mr. Engle purchased a controlling  interest in EFG in December 1994.
He is also President of AFG Realty, Inc.

James A. Coyne was appointed a Director and Secretary of PLM Financial  Services
Inc. in April 2001.  He was  appointed a director of PLM  International,  Inc in
February  2001. He is a director,  Vice  President  and Secretary of MILPI.  Mr.
Coyne has been a director, President and Chief Operating Officer of Semele since
1997. Mr. Coyne is Executive Vice  President of Equis  Corporation,  the general
partner of EFG. Mr. Coyne joined EFG in 1989,  remained until 1993, and rejoined
in November 1994.

Stephen M. Bess was appointed a Director of PLM Financial Services, Inc. in July
1997.  Mr. Bess was  appointed  President  of PLM  Financial  Services,  Inc. in
October  2000. He was appointed  President  and Chief  Executive  Officer of PLM
International,  Inc. in October 2000.  Mr. Bess was  appointed  President of PLM
Investment  Management,  Inc.  in August  1989,  having  served  as Senior  Vice
President of PLM Investment  Management,  Inc. beginning in February 1984 and as
Corporate Controller of PLM Financial Services,  Inc. beginning in October 1983.
He served as Corporate  Controller of PLM, Inc.  beginning in December 1982. Mr.
Bess was  Vice  President-Controller  of  Trans  Ocean  Leasing  Corporation,  a
container  leasing  company,  from  November  1978 to November  1982,  and Group
Finance  Manager  with the Field  Operations  Group of  Memorex  Corporation,  a
manufacturer  of computer  peripheral  equipment,  from October 1975 to November
1978.

The directors of PLM Financial Services, Inc. are elected for a one-year term or
until their successors are elected and qualified.  No family relationships exist
between any director or executive officer of PLM Financial  Services,  Inc., PLM
Transportation Equipment Corp., or PLM Investment Management, Inc.

ITEM 11. EXECUTIVE COMPENSATION

The Partnership has no directors, officers, or employees. The Partnership had no
pension,  profit  sharing,  retirement,  or similar benefit plan in effect as of
December 31, 2001.


<PAGE>


ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

     (A) Security Ownership of Certain Beneficial Owners

          The  General  Partner is  generally  entitled  to a 5% interest in the
          profits and losses  (subject to certain  allocations  of income),  and
          distributions.  As of December 31, 2001,  no investor was known by the
          General  Partner  to  beneficially  own  more  than 5% of the  limited
          partnership units of the Partnership.

     (B) Security Ownership of Management

          Neither  the  General  Partner and its  affiliates  nor any  executive
          officer or director of the General  Partner and its  affiliates  owned
          any limited  partnership  units of the  Partnership as of December 31,
          2001.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

     (A) Transactions with Management and Others

          During 2001, the Partnership paid or accrued the following fees to FSI
          or its affiliates:  management fees, $0.6 million;  and administrative
          and data processing  services  performed on behalf of the Partnership,
          $0.4 million.

          During  2001,  the  Partnership's  proportional  share of ownership in
          USPEs  paid or accrued  the  following  fees to FSI or its  affiliates
          (based  on  the  Partnership's   proportional   share  of  ownership):
          management  fees,  $0.3 million;  administrative  and data  processing
          services, $0.2 million.

                                     PART IV

ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K

     (A) 1.   Financial Statements

          The financial statements listed in the accompanying Index to Financial
          Statements are filed as part of this Annual Report on Form 10-K.

         2.   Financial Statements required under Regulation S-X Rule 3-09

          The  following  financial  statements  are filed as  Exhibits  of this
          Annual Report on Form 10-K:

               a. Aero California Trust (A Trust)
               b. Lion Partnership
               c. Boeing 737-200 Trust S/N 24700

     (B) Financial Statement Schedule

          Schedule II Valuation and Qualifying Accounts

          All other  financial  statement  schedules  have been omitted,  as the
          required  information  is not  pertinent to the  registrant  or is not
          material,  or because  the  information  required  is  included in the
          financial statements and notes thereto.

     (C) Reports on Form 8-K

          None.


<PAGE>


     (D) Exhibits

     4.   Limited   Partnership   Agreement  of  Partnership,   incorporated  by
          reference  to the  Partnership's  Registration  Statement  on Form S-1
          (Reg.  No.  33-40093)  which became  effective with the Securities and
          Exchange Commission on December 23, 1991.

     4.1  Second  Amendment  to the Amended  and  Restated  Limited  Partnership
          Agreement dated August 24, 2001.

     10.1 Management   Agreement   between   Partnership   and  PLM   Investment
          Management,  Inc.  incorporated  by  reference  to  the  Partnership's
          Registration  Statement on Form S-1 (Reg. No.  33-40093)  which became
          effective with the Securities and Exchange  Commission on December 23,
          1991.

     10.2 Note Agreement, dated as of August 1, 1993, regarding $30.0 million in
          6.7% senior notes due November 17, 2003,  incorporated by reference to
          the  Partnership's  Annual Report on Form 10-K dated December 31, 1993
          filed with the Securities and Exchange Commission on March 25, 1994.

     10.3 Note Agreement, dated as of December 21, 2001, regarding $30.0 million
          term loan notes due December 21, 2006.

     10.4 Warehousing Credit Agreement dated as of April 13, 2001,  incorporated
          by reference to the Partnership's Form 10-Q dated March 31, 2001 filed
          with the Securities and Exchange Commission on May 9, 2001.

     10.5 First Amendment to Warehousing Credit Agreement,  dated as of December
          21, 2001.

     Financial Statements required under Regulation S-X Rule 3-09:

     99.1 Aero California Trust (A Trust)

     99.2 Lion Partnership

     99.3 Boeing 737-200 Trust S/N 24700



<PAGE>


                                   SIGNATURES

Pursuant to the  requirements of Section 13 or 15(d) of the Securities  Exchange
Act of 1934,  the  Partnership  has duly  caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.

The Partnership has no directors or officers.  The General Partner has signed on
behalf of the Partnership by duly authorized officers.


Dated: March 25, 2002       PLM EQUIPMENT GROWTH FUND VI
                            PARTNERSHIP

                            By:  PLM Financial Services, Inc.
                                 General Partner


                            By:  /s/ Stephen M. Bess
                                 -----------------------------------
                                 Stephen M. Bess
                                 President and Current Chief Accounting Officer


Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following  directors of the  Partnership's  General
Partner on the dates indicated.


Name                                        Capacity             Date




/s/ Gary D. Engle
------------------------------------
Gary D. Engle                               Director, FSI        March 25, 2002




/s/ James A. Coyne
------------------------------------
James A. Coyne                              Director, FSI        March 25, 2002




/s/ Stephen M. Bess
------------------------------------
Stephen M. Bess                             Director, FSI        March 25, 2002



<PAGE>


                          PLM EQUIPMENT GROWTH FUND VI
                             (A Limited Partnership)
                          INDEX TO FINANCIAL STATEMENTS

                                  (Item 14(a))


                                                                        Page

Independent auditors' reports                                            30-31

Balance sheets as of December 31, 2001 and 2000                           32

Statements of operations for the years ended
     December 31, 2001, 2000, and 1999                                    33

Statements of changes in partners' capital for the
     years ended December 31, 2001, 2000, and 1999                        34

Statements of cash flows for the years ended
     December 31, 2001, 2000, and 1999                                    35

Notes to financial statements                                           36-49

Independent auditors' reports on financial statement schedule           50-51

Schedule II Valuation and Qualifying Accounts                             52



<PAGE>










INDEPENDENT AUDITORS' REPORT



The Partners
PLM Equipment Growth Fund VI:


We have audited the  accompanying  balance sheet of PLM Equipment Growth Fund VI
(the  "Partnership"),  as of December 31, 2001,  and the related  statements  of
operations,  changes  in  partners'  capital,  and cash  flows for the year then
ended.  These financial  statements are the  responsibility of the Partnership's
management.  Our  responsibility  is to express  an  opinion on these  financial
statements based on our audit.

We conducted our audit in accordance with auditing standards  generally accepted
in the  United  States of  America.  Those  standards  require  that we plan and
perform the audit to obtain  reasonable  assurance  about  whether the financial
statements are free of material misstatement.  An audit includes examining, on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made by  management,  as well as evaluating  the overall
financial  statement  presentation.   We  believe  that  our  audit  provides  a
reasonable basis for our opinion.

In our  opinion,  such  financial  statements  present  fairly,  in all material
respects, the financial position of the Partnership as of December 31, 2001, and
the  results  of its  operations  and its cash  flows for the year then ended in
conformity with accounting principles generally accepted in the United States of
America.





 /s/ Deloitte & Touche LLP


Certified Public Accountants

Tampa, Florida
March 8, 2002


<PAGE>










INDEPENDENT AUDITORS' REPORT



The Partners
PLM Equipment Growth Fund VI:


We have audited the  accompanying  balance sheet of PLM Equipment Growth Fund VI
("the  Partnership")  as of  December  31, 2000 and the  related  statements  of
operations, changes in partners' capital and cash flows for each of the years in
the two-year period ended December 31, 2000. These financial  statements are the
responsibility of the Partnership's management. Our responsibility is to express
an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the  United  States of  America.  Those  standards  require  that we plan and
perform the audit to obtain  reasonable  assurance  about  whether the financial
statements are free of material misstatement.  An audit includes examining, on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made by  management,  as well as evaluating  the overall
financial  statement  presentation.   We  believe  that  our  audits  provide  a
reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material respects, the financial position of PLM Equipment Growth Fund VI as
of December 31, 2000,  and the results of its  operations and its cash flows for
each of the years in the two-year  period ended  December 31, 2000 in conformity
with accounting principles generally accepted in the United States of America.




/s/ KPMG LLP

SAN FRANCISCO, CALIFORNIA
March 12, 2001


<PAGE>





                          PLM EQUIPMENT GROWTH FUND VI
                             (A Limited Partnership)
                                 BALANCE SHEETS
                                  December 31,
                 (in thousands of dollars, except unit amounts)
<TABLE>
<CAPTION>

                                                                                     2001                 2000
                                                                                 -----------------------------------
ASSETS

<S>                                                                              <C>                  <C>
Equipment held for operating leases                                              $    63,694          $    67,292
Less accumulated depreciation                                                        (40,487)             (36,829)
                                                                                 -----------------------------------
                                                                                      23,207               30,463
Equipment held for sale                                                                   --                1,042
                                                                                 -----------------------------------
  Net equipment                                                                       23,207               31,505

Cash and cash equivalents                                                              8,051                9,226
Restricted cash                                                                          425                   --
Accounts receivable, less allowance for doubtful accounts of
    $380 in 2001 and $402 in 2000                                                      1,394                1,979
Investments in unconsolidated special-purpose entities                                15,202               21,106
Lease negotiation fees to affiliate, less accumulated
    amortization of $310 in 2001 and $178 in 2000                                         75                   56
Debt issuance costs, less accumulated amortization
    of $152 in 2001 and $106 in 2000                                                      --                   46
Debt placement fees to affiliate, less accumulated
    amortization of $148 in 2001 and $104 in 2000                                        280                   44
Prepaid expenses and other assets                                                         77                  101
                                                                                 -----------------------------------

      Total assets                                                               $    48,711          $    64,063
                                                                                 ===================================

LIABILITIES AND PARTNERS' CAPITAL

Liabilities
Accounts payable and accrued expenses                                            $     1,276          $     1,171
Due to affiliates                                                                        926                  821
Lessee deposits and reserve for repairs                                                   30                  449
Note payable                                                                          20,000               30,000
                                                                                 -----------------------------------
  Total liabilities                                                                   22,232               32,441
                                                                                 -----------------------------------

Commitments and contingencies

Partners' capital
Limited partners (limited partnership units of 7,781,898 and
      8,189,465 as of December 31, 2001 and 2000, respectively)                       26,479               31,622
General Partner                                                                           --                   --
                                                                                 -----------------------------------
  Total partners' capital                                                             26,479               31,622
                                                                                 -----------------------------------

      Total liabilities and partners' capital                                    $    48,711          $    64,063
                                                                                 ===================================

</TABLE>








                 See accompanying notes to financial statements.


<PAGE>



                          PLM EQUIPMENT GROWTH FUND VI
                             (A Limited Partnership)
                            STATEMENTS OF OPERATIONS
                        For the Years Ended December 31,
        (In thousands of dollars, except weighted-average unit amounts)
<TABLE>
<CAPTION>


                                                                   2001              2000             1999
                                                               ------------------------------------------------
REVENUES

<S>                                                            <C>               <C>              <C>
Lease revenue                                                  $    11,669       $    17,526      $   23,988
Interest and other income                                              663               253             270
Net gain on disposition of equipment                                 1,077             2,147          25,951
                                                               ------------------------------------------------
  Total revenues                                                    13,409            19,926          50,209
                                                               ------------------------------------------------

EXPENSES

Depreciation and amortization                                        6,234             8,927          17,001
Repairs and maintenance                                              1,550             1,956           4,183
Equipment operating expenses                                           494             2,034           3,974
Insurance expenses                                                     119               195             642
Management fees to affiliate                                           645               963           1,261
Interest expense                                                     1,926             2,029           2,108
General and administrative expenses to affiliates                      440               659             850
Other general and administrative expenses                            2,087             1,193           1,084
Loss on revaluation of equipment                                        --               374           3,567
(Recovery of) provision for bad debts                                  (15)             (720)            591
                                                               ------------------------------------------------
    Total expenses                                                  13,480            17,610          35,261
                                                               ------------------------------------------------

Minority interests                                                      --                --          (7,949)
                                                               ------------------------------------------------

Equity in net loss of unconsolidated
    special-purpose entities                                          (935)           (1,904)         (1,003)
                                                               ------------------------------------------------
      Net income (loss)                                        $    (1,006)      $       412      $    5,996
                                                               ================================================

PARTNERS' SHARE OF NET INCOME (LOSS)

Limited partners                                               $    (1,092)      $      (278)     $    5,305
General Partner                                                         86               690             691
                                                               ------------------------------------------------

Total                                                          $    (1,006)      $       412      $    5,996
                                                               ================================================

Limited partner's net income (loss) per
    weighted-average limited partnership unit                  $     (0.13)      $     (0.03)     $     0.65
                                                               ================================================

Cash distribution                                              $     1,372       $    13,794      $   13,806
                                                               ================================================

Cash distribution per weighted-average
    limited partnership unit                                   $      0.16       $      1.60      $     1.60
                                                               ================================================

</TABLE>








                 See accompanying notes to financial statements.


<PAGE>



                          PLM EQUIPMENT GROWTH FUND VI
                             (A Limited Partnership)
                   STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
              For the Years Ended December 31, 2001, 2000, and 1999
                            (in thousands of dollars)
<TABLE>
<CAPTION>

                                                         Limited            General
                                                         Partners           Partner             Total
                                                      ----------------------------------------------------


<S>                                                   <C>                 <C>               <C>
  Partners' capital as of December 31, 1998           $     52,954        $       --        $     52,954

Net income                                                   5,305               691               5,996

Purchase of limited partnership units                         (123)               --                (123)

Cash distribution                                          (13,115)             (691)            (13,806)
                                                      ----------------------------------------------------

  Partners' capital as of December 31, 1999                 45,021                --              45,021

Net income (loss)                                             (278)              690                 412

Purchase of limited partnership units                          (17)               --                 (17)

Cash distribution                                          (13,104)             (690)            (13,794)
                                                      ----------------------------------------------------

  Partners' capital as of December 31, 2000                 31,622                --              31,622

Net income (loss)                                           (1,092)               86              (1,006)

Purchase of limited partnership units                       (2,765)               --              (2,765)

Cash distribution                                           (1,286)              (86)             (1,372)
                                                      ----------------------------------------------------

  Partners' capital as of December 31, 2001           $     26,479        $       --        $     26,479
                                                      ====================================================

</TABLE>






















                 See accompanying notes to financial statements.


<PAGE>









                                         PLM EQUIPMENT GROWTH FUND VI
                                           (A Limited Partnership)
                                           STATEMENTS OF CASH FLOWS
                                       For the Years Ended December 31,
                                          (in thousands of dollars)
<TABLE>
<CAPTION>

                                                                                   2001          2000           1999
                                                                               -----------------------------------------
OPERATING ACTIVITIES
<S>                                                                            <C>           <C>            <C>
Net income (loss)                                                              $   (1,006)   $       412    $    5,996
Adjustments to reconcile net income (loss)
    to net cash provided by (used in) operating activities:
  Depreciation and amortization                                                     6,234          8,927        17,001
  Loss on revaluation of equipment                                                     --            373         3,567
  Net gain on disposition of equipment                                             (1,077)        (2,147)      (25,951)
  Equity in net loss from unconsolidated special-purpose entities                     935          1,904         1,003
  Changes in operating assets and liabilities:
  Restricted cash                                                                    (425)            --            --
    Accounts receivable, net                                                          588           (578)        3,237
    Prepaid expenses and other assets                                                  24            (43)          (79)
    Accounts payable and accrued expenses                                             145            (49)           85
    Due to affiliates                                                                 105            479           (70)
    Lessee deposits and reserve for repairs                                          (119)            59        (1,232)
    Minority interests                                                                 --             --         1,268
                                                                               -----------------------------------------
      Net cash provided by operating activities                                     5,404          9,337         4,825
                                                                               -----------------------------------------

INVESTING ACTIVITIES
Payments for purchase of equipment and capitalized repairs                             (2)          (955)      (42,883)
Investments in, and equipment purchased and placed in,
   unconsolidated special-purpose entities                                           (632)            --          (147)
Distribution from unconsolidated special-purpose entities                           3,346          2,760         2,318
Distribution from liquidation of unconsolidated special-purpose
    entities                                                                        2,254             88         3,504
Payments of acquisition fees to affiliate                                            (678)            --          (825)
Principal payments received on direct finance lease                                    --             --            60
Payments of lease negotiation fees to affiliate                                      (150)            --           (67)
Proceeds from disposition of equipment                                              3,711          9,138        45,839
                                                                               -----------------------------------------
      Net cash provided by investing activities                                     7,849         11,031         7,799
                                                                               -----------------------------------------

FINANCING ACTIVITIES
Payment of note payable                                                           (10,000)            --            --
Payment of debt placement fees                                                       (280)            --            --
Proceeds from short-term note payable                                                  --            600         4,712
Payments of short-term note payable                                                    --           (600)       (4,712)
Proceeds from short-term loan from affiliate                                           --             --           400
Payment of short-term loan to affiliate                                                --             --          (400)
Cash distribution paid to limited partners                                         (1,286)       (13,104)      (13,115)
Cash distribution paid to General Partner                                             (86)          (690)         (691)
Purchase of limited partnership units                                              (2,776)           (17)         (123)
                                                                               -----------------------------------------
      Net cash used in financing activities                                       (14,428)       (13,811)      (13,929)
                                                                               -----------------------------------------

Net (decrease) increase in cash and cash equivalents                               (1,175)         6,557        (1,305)
Cash and cash equivalents at beginning of year                                      9,226          2,669         3,974
                                                                               -----------------------------------------
Cash and cash equivalents at end of year                                       $    8,051    $     9,226    $    2,669
                                                                               =========================================

SUPPLEMENTAL INFORMATION
Interest paid                                                                  $    1,954    $     2,029    $    2,108
                                                                               =========================================
Noncash transfer of equipment at net book value from
  unconsolidated special-purpose entities                                      $       --    $     1,878    $       --
                                                                               =========================================
</TABLE>

                 See accompanying notes to financial statements.


<PAGE>


                          PLM EQUIPMENT GROWTH FUND VI
                             (A Limited Partnership)
                          NOTES TO FINANCIAL STATEMENTS

1. BASIS OF PRESENTATION

ORGANIZATION

PLM  Equipment   Growth  Fund  VI,  a  California   limited   partnership   (the
Partnership),  was formed on April 17, 1991 to engage in the business of owning,
leasing or  otherwise  investing in primarily  used  transportation  and related
equipment.  PLM Financial  Services,  Inc.  (FSI) is the General  Partner of the
Partnership.  FSI is a wholly owned subsidiary of PLM  International,  Inc. (PLM
International or PLMI).

FSI  manages  the  affairs of the  Partnership.  The cash  distributions  of the
Partnership  are generally  allocated 95% to the limited  partners and 5% to the
General  Partner.  Net income is allocated to the General  Partner to the extent
necessary to cause the General  Partner's capital account to equal zero (see Net
Income (Loss) and Distributions Per Limited Partnership Unit below). The General
Partner is also entitled to receive a  subordinated  incentive fee as defined in
the limited  Partnership  agreement after the limited partners receive a minimum
return on, and a return of, their invested capital.

Pursuant to the equitable  settlement related to the Koch and Romei actions (see
Note 10), the  Partnership  phases have been amended and a one-time  purchase by
the Partnership of up to 10% of the outstanding Partnership units for 80% of net
asset  value per unit has been  approved.  The  amendment  extends the period in
which the Partnership will be able to reinvest its cash flow,  surplus cash, and
equipment  sale  proceeds into  additional  equipment  until  December 31, 2004.
During  that time,  the  General  Partner  may  purchase  additional  equipment,
consistent with the objectives of the  Partnership,  and the amount of front-end
fees that FSI may earn has been increased 20% (including  acquisition  and lease
negotiation fees). The amendment also extends the Partnership's termination date
to December 31, 2011, unless  terminated  earlier upon the sale of all equipment
or by  certain  other  events.  As a result  of the  equitable  settlement,  the
Partnership's  redemption  plan has been  terminated and the General Partner has
agreed to  purchase  489,344  units and, as of December  31,  2001,  has paid or
accrued $2.8 million to the purchasing agent for this purchase.

As of December 31, 2001, the purchasing agent purchased 407,565 units,  which is
reflected  as a  reduction  in  Partnership  units.  The  purchasing  agent also
purchased an additional  54,933 during January 2002. The General Partner expects
the remaining 26,846 units to be purchased during the remainder of 2002.

Under the former  redemption  plan, for the years ended December 31, 2001, 2000,
and 1999, the Partnership had purchased 2; 2,253; and 14,621 limited partnership
units for $22, $17,000, and $0.1 million, respectively.

ESTIMATES

These financial statements have been prepared on the accrual basis of accounting
in accordance with accounting principles generally accepted in the United States
of America.  This requires  management to make  estimates and  assumptions  that
affect the reported amounts of assets and liabilities, disclosures of contingent
assets and liabilities at the date of the financial statements, and the reported
amounts of revenues and expenses  during the reporting  period.  Actual  results
could differ from those estimates.

OPERATIONS

The  equipment of the  Partnership  is managed,  under a  continuing  management
agreement,  by PLM Investment Management,  Inc. (IMI), a wholly owned subsidiary
of FSI. IMI receives a monthly  management fee from the Partnership for managing
the equipment (see Note 2). FSI, in  conjunction  with its  subsidiaries,  sells
equipment to investor  programs and third  parties,  manages  pools of equipment
under  agreements  with  investor  programs,  and is a general  partner of other
programs.



<PAGE>


                          PLM EQUIPMENT GROWTH FUND VI
                             (A Limited Partnership)
                          NOTES TO FINANCIAL STATEMENTS

1. BASIS OF PRESENTATION (continued)

ACCOUNTING FOR LEASES (continued)

The  Partnership's  leasing  operations  generally  consist of operating leases.
Under the operating lease method of accounting,  the leased asset is recorded at
cost and  depreciated  over its  estimated  useful  life.  Rental  payments  are
recorded as revenue over the lease term as earned in accordance  with  Statement
of Financial  Accounting  Standards (SFAS) No. 13, "Accounting for Leases" (SFAS
No. 13). Lease  origination costs are capitalized and amortized over the term of
the lease. Periodically,  the Partnership leases equipment with lease terms that
qualify for direct finance lease classification, as required by SFAS No. 13.

DEPRECIATION AND AMORTIZATION

Depreciation of  transportation  equipment held for operating leases is computed
on the  double-declining  balance method,  taking a full month's depreciation in
the month of  acquisition,  based upon  estimated  useful  lives of 15 years for
railcars and 12 years for all other equipment.  The depreciation  method changes
to straight line when the annual  depreciation  expense using the  straight-line
method  exceeds  that  calculated  by  the   double-declining   balance  method.
Acquisition  fees have been  capitalized  as part of the cost of the  equipment.
Lease  negotiation  fees are amortized  over the initial  equipment  lease term.
Major expenditures that are expected to extend the useful lives or reduce future
operating expenses of equipment are capitalized and amortized over the estimated
remaining life of the equipment. Debt issuance costs and debt placement fees are
amortized  over  the  term of the  loan  using  the  straight-line  method  that
approximates the effective interest method (see Note 7). Major expenditures that
are expected to extend the useful lives or reduce future  operating  expenses of
equipment  are  capitalized  and  amortized  over  the  remaining  life  of  the
equipment.

Pursuant to the equitable  settlement (see Note 10), during 2001 the Partnership
paid additional acquisition and lease negotiation fees of $0.8 million to FSI on
equipment  purchased in 1999.  Depreciation  and  amortization  of $0.3 million,
which represents the cumulative  effect of depreciation  and  amortization  that
should  have been  recorded  from the  purchase of  equipment  in 1999 until the
equitable settlement, was recorded during 2001.

TRANSPORTATION EQUIPMENT

Equipment held for operating leases is stated at cost less any reductions to the
carrying  value as required by SFAS No. 121,  "Accounting  for the Impairment of
Long-Lived  Assets and for Long-Lived  Assets to Be Disposed Of" (SFAS No. 121).
Equipment  held for sale is stated at the lower of the  equipment's  depreciated
cost or fair value,  less cost to sell, and is subject to a pending contract for
sale.

In accordance with SFAS No. 121, the General Partner reviews the carrying values
of the  Partnership's  equipment  portfolio  at  least  quarterly  and  whenever
circumstances  indicate  that  the  carrying  value  of  an  asset  may  not  be
recoverable  due  to  expected  future  market  conditions.   If  the  projected
undiscounted cash flows and the fair market value of the equipment are less than
the carrying value of the equipment,  a loss on revaluation is recorded.  During
2001, a unconsolidated  special-purpose entity (USPE) trust owning two Stage III
commercial  aircraft on a direct finance lease reduced its net investment in the
finance lease receivable due to a series of lease amendments.  The Partnership's
proportionate share of this writedown, which is included in equity in net income
(loss) of the USPE in the  accompanying  statement of income,  was $1.6 million.
Reductions  of $0.4  million  and $3.6  million to the  carrying  value of owned
equipment were required during 2000 and 1999,  respectively.  No revaluations to
owned  equipment were required in 2001 or to partially  owned  equipment in 2000
and 1999.

In October 2001, the Financial  Accounting  Standards Board issued SFAS No. 144,
"Accounting for the Impairment or Disposal of Long-Lived Assets" (SFAS No. 144),
which replaces SFAS No. 121. SFAS No. 144 provides updated  guidance  concerning
the  recognition  and  measurement  of an  impairment  loss for certain types of
long-lived  assets,  expands the scope of a discontinued  operation to include a
component


<PAGE>



                          PLM EQUIPMENT GROWTH FUND VI
                             (A Limited Partnership)
                          NOTES TO FINANCIAL STATEMENTS

1. BASIS OF PRESENTATION (continued)

TRANSPORTATION EQUIPMENT (continued)

of an entity, and eliminates the current exemption to consolidation when control
over a  subsidiary  is likely to be  temporary.  SFAS No. 144 is  effective  for
fiscal years beginning after December 15, 2001.

The  Partnership  will apply the new rules on accounting  for the  impairment or
disposal of long-lived  assets  beginning in the first quarter of 2002, and they
are not anticipated to have an impact on the Partnership's earnings or financial
position.

INVESTMENTS IN UNCONSOLIDATED SPECIAL-PURPOSE ENTITIES

The Partnership has interests in USPEs that own transportation equipment.  These
are  single  purpose  entities  that do not have  any  debt or  other  financial
encumbrances  and are accounted for using the equity method.  As of December 31,
2001 and 2000, the Partnership  owned a majority  interest in two such entities.
Prior to September 30, 1999, the Partnership  controlled the management of these
entities  and thus  they  were  consolidated  into the  Partnership's  financial
statements.  On September 30, 1999, the corporate by-laws of these entities were
changed to require a unanimous vote by all owners on major  business  decisions.
Thus, from September 30, 1999 forward,  the Partnership no longer controlled the
management of these  entities,  and the  accounting  method for the entities was
changed from the consolidation method to the equity method.

The Partnership's investment in USPEs includes acquisition and lease negotiation
fees paid by the Partnership to PLM Transportation  Equipment  Corporation (TEC)
and PLM Worldwide Management Services (WMS). TEC is a wholly owned subsidiary of
FSI and WMS is a wholly owned subsidiary of PLM International. The Partnership's
interests in USPEs are managed by IMI. The Partnership's  equity interest in the
net income (loss) of USPEs is reflected  net of management  fees paid or payable
to IMI and the  amortization of acquisition and lease  negotiation  fees paid to
TEC or WMS.

REPAIRS AND MAINTENANCE

Repairs and maintenance costs related to marine vessels,  railcars, and trailers
are usually the obligation of the Partnership and are charged against operations
as incurred.  Costs  associated with marine vessel  drydocking are estimated and
accrued ratably over the period prior to such drydocking.  If a marine vessel is
sold and there is a balance in the  drydocking  reserve  account for that marine
vessel,  the balance in the reserve  account is included as  additional  gain on
disposition.  Maintenance  costs  of  aircraft  and  marine  containers  are the
obligation  of the  lessee.  To meet the  maintenance  requirements  of  certain
aircraft  airframes  and engines,  reserve  accounts are prefunded by the lessee
over the  period of the lease  based on the number of hours  this  equipment  is
used,  times the estimated rate to repair this equipment.  If repairs exceed the
amount prefunded by the lessee,  the Partnership may have the obligation to fund
and accrue the difference.  If an aircraft is sold and there is a balance in the
reserve account for repairs to that aircraft, the balance in the reserve account
is reclassified as additional gain on disposition. The aircraft reserve accounts
and marine vessel drydocking reserve accounts are included in the balance sheets
as lessee deposits and reserve for repairs.

NET INCOME (LOSS) AND DISTRIBUTIONS PER LIMITED PARTNERSHIP UNIT

Special  allocations  of income  are made to the  General  Partner to the extent
necessary to cause the capital account balance of the General Partner to be zero
as of the  close of such  year.  The  limited  partners'  net  income  (loss) is
allocated among the limited partners based on the number of limited  partnership
units owned by each  limited  partner and on the number of days of the year each
limited partner is in the Partnership.



<PAGE>


                          PLM EQUIPMENT GROWTH FUND VI
                             (A Limited Partnership)
                          NOTES TO FINANCIAL STATEMENTS

1. BASIS OF PRESENTATION (continued)

NET INCOME (LOSS) AND DISTRIBUTIONS PER LIMITED PARTNERSHIP UNIT (continued)

Cash  distributions of the Partnership are allocated 95% to the limited partners
and 5% to the General Partner and may include amounts in excess of net income.

Cash  distributions  are  recorded  when  paid.  Monthly  unitholders  receive a
distribution  check 15 days after the close of the previous month's business and
quarterly  unitholders  receive a distribution  check 45 days after the close of
the quarter.

Cash  distributions to investors in excess of net income are considered a return
of capital.  Cash  distributions to the limited partners of $1.3 million,  $13.1
million, and $7.8 million in 2001, 2000, and 1999, respectively,  were deemed to
be a return of capital.

Cash distributions  related to the fourth quarter 2000 of $1.5 million, and 1999
of  $2.0  million,  were  paid  during  the  first  quarter  of 2001  and  2000,
respectively.  There were no cash  distributions  related to the fourth  quarter
2001 paid during the first quarter of 2002.

NET INCOME (LOSS) PER WEIGHTED-AVERAGE PARTNERSHIP UNIT

Net income (loss) per weighted-average Partnership unit was computed by dividing
net income  (loss)  attributable  to limited  partners  by the  weighted-average
number  of   Partnership   units  deemed   outstanding   during  the  year.  The
weighted-average number of Partnership units deemed outstanding during the years
ended December 31, 2001, 2000, and 1999 was 8,186,114; 8,189,891; and 8,196,209,
respectively.

CASH AND CASH EQUIVALENTS

The Partnership considers highly liquid investments that are readily convertible
to known  amounts of cash with  original  maturities  of three months or less as
cash  equivalents.  The carrying amount of cash  equivalents  approximates  fair
market value due to the short-term nature of the investments.

RESTRICTED CASH

As of December 31, 2001, restricted cash consists of bank accounts or short-term
investments that are primarily  subject to withdrawal  restrictions per loan and
other legally binding agreements.

COMPREHENSIVE INCOME

The  Partnership's  comprehensive  income is equal to net  income  for the years
ended December 31, 2001, 2000, and 1999.

NEW ACCOUNTING STANDARDS

On June 29, 2001, SFAS No. 142, "Goodwill and Other Intangible Assets" (SFAS No.
142), was approved by the FASB. SFAS No. 142 changes the accounting for goodwill
and other intangible assets determined to have an indefinite useful life from an
amortization method to an impairment-only  approach.  Amortization of applicable
intangible assets will cease upon adoption of this statement. The Partnership is
required  to  implement  SFAS  No.  142 on  January  1,  2002 and it has not yet
determined  the  impact,  if any,  this  statement  will  have on its  financial
position or results of operations.

2. GENERAL PARTNER AND TRANSACTIONS WITH AFFILIATES

An officer of FSI contributed $100 of the Partnership's  initial capital.  Under
the equipment management agreement, IMI, subject to certain reductions, receives
a monthly  management fee attributable to either owned equipment or interests in
equipment owned by the USPEs equal to the lesser of (i) the fees


<PAGE>


                          PLM EQUIPMENT GROWTH FUND VI
                             (A Limited Partnership)
                          NOTES TO FINANCIAL STATEMENTS

2. GENERAL PARTNER AND TRANSACTIONS WITH AFFILIATES (continued)

that would be charged by an  independent  third party for similar  services  for
similar  equipment  or  (ii)  the  sum of (a) 5% of  the  gross  lease  revenues
attributable  to equipment  that is subject to operating  leases,  (b) 2% of the
gross  lease  revenues,  as  defined in the  agreement,  that is subject to full
payout  net  leases,  and (c) 7% of the gross  lease  revenues  attributable  to
equipment  for  which IMI  provides  both  management  and  additional  services
relating to the continued  and active  operation of program  equipment,  such as
on-going  marketing and  re-leasing  of  equipment,  hiring or arranging for the
hiring of crew or operating personnel for equipment,  and similar services.  The
Partnership reimbursed FSI $0.4 million, $0.7 million, and $0.9 million in 2001,
2000, and 1999,  respectively,  for data processing and administrative  expenses
directly attributable to the Partnership.

The Partnership's  proportional share of USPEs management fees to affiliate were
$0.3  million  during  2001  and  2000 and $0.2  million  during  1999,  and the
Partnership's  proportional share of administrative and data processing expenses
to affiliate  were $0.2 million,  $46,000,  and $43,000  during 2001,  2000, and
1999,  respectively.  Both of these affiliate expenses reduced the Partnership's
proportional share of the equity interest in income in USPEs.

Debt placement fees were paid to the General Partner in an amount equal to 1% of
the  Partnership's  long-term  borrowings,  less any costs paid to  unaffiliated
parties related to obtaining the borrowing.

The  Partnership and the USPEs paid or accrued  equipment  acquisition and lease
negotiation  fees to FSI in the amount of $1.5 million and $0.4  million  during
2001 and 1999, respectively.  No equipment acquisition or lease negotiation fees
were accrued during 2000.

TEC will also be entitled to receive an equipment  liquidation  fee equal to the
lesser  of (i) 3% of  the  sales  price  of  equipment  sold  on  behalf  of the
Partnership  or (ii) 50% of the  "Competitive  Equipment  Sale  Commission,"  as
defined in the agreement, if certain conditions are met.

The Partnership owned certain equipment in conjunction with affiliated  programs
during 2001, 2000, and 1999 (see Note 4).

The  Partnership  had borrowings  from the General Partner from time to time and
was charged market interest rates effective at the time of the borrowing. During
1999 the  Partnership  borrowed  $0.4 million from the General  Partner for five
days and paid a total of $421 in interest to the General Partner.  There were no
similar borrowings during 2001 or 2000.

The balance due to  affiliates as of December 31, 2001 includes $0.1 million due
to FSI and its affiliates for management fees and $0.8 million due to affiliated
USPEs.  The balance due to  affiliates  as of December  31, 2000  includes  $0.1
million due to FSI and its affiliates  for management  fees and $0.7 million due
to a USPE.

3. EQUIPMENT

The components of owned equipment as of December 31 are as follows (in thousands
of dollars):
<TABLE>
<CAPTION>

         Equipment Held for Operating Leases                2001                2000
------------------------------------------------------  -------------------------------
<S>                                                     <C>                 <C>
Marine containers                                       $   25,045          $   25,566
Rail equipment                                              17,213              17,244
Aircraft, aircraft engines, and components                  16,224              16,224
Trailers                                                     5,212               5,258
Marine vessel                                                   --               3,000
                                                        ---------------------------------
                                                            63,694              67,292
Less accumulated depreciation                              (40,487)            (36,829)
                                                        -------------------------------
                                                            23,207              30,463
Equipment held for sale                                         --               1,042
                                                        ---------------------------------
    Net equipment                                       $   23,207          $   31,505
                                                        =================================
</TABLE>


<PAGE>


                          PLM EQUIPMENT GROWTH FUND VI
                             (A Limited Partnership)
                          NOTES TO FINANCIAL STATEMENTS

3. EQUIPMENT (continued)

Revenues  are earned  under  operating  leases.  A portion of the  Partnership's
marine containers are leased to operators of utilization-type leasing pools that
include  equipment owned by unaffiliated  parties.  In such instances,  revenues
earned  by the  Partnership  consist  of a  specified  percentage  of the  total
revenues generated by leasing the pooled equipment to sublessees after deducting
certain  direct  operating  expenses  of the  pooled  equipment.  The  remaining
Partnership  marine  containers  are based on a fixed rate.  Lease  revenues for
trailers  operating  with  short-line  railroad  systems are based on a per-diem
lease in the free running  railroad  interchange.  Rents for all other equipment
are based on fixed rates.

Equipment held for operating leases is stated at cost less any reductions to the
carrying  value as required by SFAS No. 121.  During 2000,  the General  Partner
reduced the carrying value of the off-lease Boeing 737-200  commercial  aircraft
by $0.4 million to the equipment's  estimated  realizable value. No revaluations
of wholly owned equipment were required in 2001 or 1999.

As of December 31, 2000,  the Boeing  737-200  commercial  aircraft was held for
sale at the lower of the equipment's  depreciated cost or fair value,  less cost
to sell,  and was subject to a pending  contract for sale. No equipment was held
for sale as of December 31, 2001.

As of December 31, 2001, all owned equipment in the Partnership's  portfolio was
on lease except for 118 railcars  with a net book value of $1.2  million.  As of
December 31, 2000,  all owned  equipment in the  Partnership's  portfolio was on
lease except for a Boeing  737-200 Stage II commercial  aircraft and 48 railcars
with a net book value of $1.5 million.

Pursuant to the equitable settlement related to the Koch and Romei actions (see
Note 10), during 2001 the Partnership paid FSI $0.8 million in acquisition and
lease negotiation fees related to marine containers purchased during 1999.

     During 2000 the  Partnership  paid $0.9 million for marine  containers that
were  purchased in 1999 that was included as an accrued  expense on the December
31, 1999 balance sheet. The General Partner also transferred  marine  containers
with an original  equipment  cost of $2.6  million from the  Partnership's  USPE
portfolio to owned equipment.

     During  2001,  the  Partnership  disposed  of a Boeing  737-200  commercial
aircraft  that was held for sale at December 31, 2000, a marine  vessel,  marine
containers,  railcars,  and trailers  with an  aggregate  net book value of $3.0
million,  for proceeds of $3.7 million.  Included in the net gain on sale of the
marine vessel was the unused  portion of marine vessel  drydocking  liability of
$0.3 million.  During 2000, the Partnership  disposed of marine vessels,  marine
containers,  trailers,  and  railcars,  with an aggregate net book value of $7.3
million,  for $9.1  million.  Included  in the 2000 net gain on  disposition  of
assets is the unused portion of marine vessel drydocking of $0.3 million.

     All  wholly  and  jointly  owned  equipment  on lease is  accounted  for as
operating leases,  except for two jointly owned commercial  aircraft on a direct
finance lease. Future minimum rentals under noncancelable operating leases as of
December 31, 2001,  for wholly and jointly  owned  equipment  during each of the
next five years are  approximately  $6.9 million in 2002;  $4.6 million in 2003;
$4.0  million in 2004;  $2.5  million in 2005;  $1.6  million in 2006;  and $1.9
million  thereafter.  Per diem and short-term  rentals consisting of utilization
rate lease payments included in lease revenues amounted to $6.5 million in 2001,
$5.7 million in 2000, and $4.4 million in 1999.

4. INVESTMENTS IN UNCONSOLIDATED SPECIAL-PURPOSE ENTITIES

The  Partnership  owns equipment  jointly with  affiliated  programs.  These are
single  purpose   entities  that  do  not  have  any  debt  or  other  financial
encumbrances.

In September 1999, the General Partner amended the corporate  by-laws of certain
USPEs in which the  Partnership,  or any affiliated  program,  owned an interest
greater  than 50%. The  amendment to the  corporate  by-laws  provided  that all
decisions regarding the acquisition and disposition of the investment as well as
other significant  business decisions of that investment would be permitted only
upon unanimous


<PAGE>


                            EQUIPMENT GROWTH FUND VI
                             (A Limited Partnership)
                         NOTES TO FINANCIAL STATEMENTS


4. INVESTMENTS IN UNCONSOLIDATED SPECIAL-PURPOSE ENTITIES continued)


consent  of the  Partnership  and  all  the  affiliated  programs  that  have an
ownership  in the  investment.  As  such,  although  the  Partnership  may own a
majority interest in a USPE, the Partnership does not control its management and
thus  the  equity  method  of  accounting  will be used  after  adoption  of the
amendment.  Accordingly,  the balance sheets reflect all investments in USPEs on
an equity basis.

The net  investments in USPEs include the following  jointly owned equipment and
related assets and liabilities as of December 31 (in thousands of dollars):
<TABLE>
<CAPTION>

                                                                                  2001             2000
                                                                              ------------------------------

<S>                                                                           <C>               <C>
   62% interest in a trust owning a commercial stage III aircraft             $    9,176        $  10,316
   53% interest in an entity owning a product tanker                               4,679            5,467
   40% interest in a trust owning two commercial stage III aircraft
             on a direct finance lease                                             1,368            3,592
   20% interest in an entity that owned a handymax dry-bulk carrier                   (2)             877
   50% interest in an entity that owned a container feeder vessel                    (19)             854
                                                                              -----------       ----------
       Net investments                                                        $   15,202        $  21,106
                                                                              ===========       ==========
</TABLE>

As  of  December  31,  2001  and  2000,  all  jointly  owned  equipment  in  the
Partnership's USPE portfolio was on lease.

Pursuant to the equitable  settlement related to the Koch and Romei actions (see
Note 10), during 2001 the Partnership increased its investment in a trust owning
a  commercial  stage III  aircraft  by paying  FSI $0.6  million  in  additional
acquisition and lease negotiation fees.

During  2001,  a trust  owning two  commercial  stage III  aircraft  on a direct
finance  lease  in  which  the  Partnership  has an  interest,  reduced  its net
investment in the finance lease receivable due to a series of lease  amendments.
The  Partnership's  proportionate  share of the writedown,  which is included in
equity in net loss of USPEs in the  accompanying  statements of operations,  was
$1.6 million.

During  2001,  the General  Partner  sold the  Partnership's  20% interest in an
entity that owned a handymax dry-bulk carrier marine vessel and its 50% interest
in an entity that owned a container  feeder  marine  vessel.  The  Partnership's
interest in these  entities  was sold for  proceeds of $2.3  million for its net
investment of $1.8 million.  Included in the net gain on sale of these  entities
was the unused portion of marine vessel drydocking liability of $0.2 million.

The  following  summarizes  the  financial  information  for the  USPEs  and the
Partnership's  interest  therein as of and for the years  ended  December 31 (in
thousands of dollars):
<TABLE>
<CAPTION>

                                           2001                          2000                        1999
                                              Net                           Net                         Net
                              Total        Interest         Total        Interest        Total       Interest
                              USPEs           of            USPEs           of           USPEs          of
                                           Partnership                   Partnership                 Partnership
                           --------------------------    --------------------------    --------------------------
<S>                        <C>            <C>            <C>            <C>            <C>          <C>
      Net investments      $   27,038     $   15,202     $   42,176     $   21,106     $   59,692   $   27,736
      Lease revenues           12,939          6,645         10,950          4,628         10,395        3,224
      Net loss                   (184)          (935)        (2,460)        (1,904)          (867)      (1,003)
</TABLE>

5.   OPERATING SEGMENTS

The Partnership operates primarily in five operating segments: aircraft leasing,
marine container leasing,  marine vessel leasing,  trailer leasing,  and railcar
leasing.  Each  equipment  leasing  segment  engages in  short-term  to mid-term
operating leases to a variety of customers.

The General Partner evaluates the performance of each segment based on profit or
loss  from  operations  before  allocation  of  interest  expense,  general  and
administrative  expenses,  and certain other expenses.  The segments are managed
separately due to different business strategies for each operation.



<PAGE>


                          PLM EQUIPMENT GROWTH FUND VI
                             (A Limited Partnership)
                          NOTES TO FINANCIAL STATEMENTS

5. OPERATING SEGMENTS (continued)

The following  tables present a summary of the operating  segments (in thousands
of dollars):
<TABLE>
<CAPTION>

                                                      Marine     Marine
                                           Aircraft  Container   Vessel   Trailer    Railcar     All
     For the Year Ended December 31,       Leasing   Leasing    Leasing   Leasing    Leasing    Other (1)   Total
     2001
     ------------------------------------  --------- ---------  --------  ---------  --------- ---------  -----------
     REVENUES
<S>                                        <C>       <C>        <C>       <C>        <C>       <C>        <C>
       Lease revenue                       $  1,843  $  4,649   $    515  $    872   $  3,790  $     --   $ 11,669
       Interest and other income                 40        --         73        --         10       540        663
       Gain on disposition of equipment         516        57        488         8          8        --      1,077
                                           ------------------------------------------------------------------------
         Total revenues                       2,399     4,706      1,076       880      3,808       540     13,409
                                           ------------------------------------------------------------------------

     COSTS AND EXPENSES
       Operations support                        19        62        336       489      1,148       109      2,163
       Depreciation and amortization          1,448     3,125        102       293      1,072       194      6,234
       Interest expense                          --        --         --        --         --     1,926      1,926
       Management fees to affiliate              76       232         26        44        267        --        645
       General and administrative expenses      257         2         48       149        147     1,924      2,527
       Provision for (recovery of) bad           46         7         --       (13)       (55)       --        (15)
     debts
                                           ------------------------------------------------------------------------
         Total costs and expenses             1,846     3,428        512       962      2,579     4,153     13,480
                                           ------------------------------------------------------------------------
     Equity in net income (loss) of USPEs    (2,850)       --      1,915        --         --        --       (935)
                                           ------------------------------------------------------------------------
     Net income (loss)                     $ (2,297) $  1,278   $  2,479  $    (82)  $  1,229  $ (3,613)  $ (1,006)
                                           ========================================================================

     Total assets as of December 31, 2001  $ 11,565  $ 15,373   $  4,658  $  1,414   $  6,782  $  8,919   $ 48,711
                                           ========================================================================
</TABLE>
<TABLE>
<CAPTION>


                                                      Marine    Marine
                                           Aircraft  Container   Vessel   Trailer    Railcar     All
     For the Year Ended December 31,       Leasing   Leasing    Leasing   Leasing    Leasing    Other (2)      Total
     2000
     ------------------------------------  --------- ---------  --------  ---------  --------- ---------  ----------

     REVENUES
<S>                                        <C>       <C>        <C>       <C>        <C>       <C>        <C>
       Lease revenue                       $  2,778  $  4,706   $  3,625  $  2,130   $  4,287  $     --   $  17,526
       Interest and other income                 --        --         --        --         --       253         253
       Gain (loss) on disposition of             --       (45)       382     1,785         25        --       2,147
     equipment
                                           -------------------------------------------------------------------------
         Total revenues                       2,778     4,661      4,007     3,915      4,312       253      19,926
                                           -------------------------------------------------------------------------

     COSTS AND EXPENSES
       Operations support                        56        20      2,349       715      1,006        39       4,185
       Depreciation and amortization          2,347     3,348      1,348       563      1,280        41       8,927
       Interest expense                          --        --         --        --         --     2,029       2,029
       Management fees to affiliate             157       235        181       121        269        --         963
       General and administrative expenses      337        13         65       461        116       860       1,852
       Loss on revaluation of equipment         374        --         --        --         --        --         374
       Recovery of bad debts                   (655)       --         --        (6)       (59)       --        (720)
                                           -------------------------------------------------------------------------
         Total costs and expenses             2,616     3,616      3,943     1,854      2,612     2,969      17,610
                                           -------------------------------------------------------------------------
     Equity in net income (loss) of USPEs    (1,485)       44       (548)       --         --        85      (1,904)
                                           -------------------------------------------------------------------------
     Net income (loss)                     $ (1,323) $  1,089   $   (484) $  2,061   $  1,700  $ (2,631)  $     412
                                           =========================================================================

     Total assets as of December 31, 2000  $ 18,502  $ 18,015   $  9,078  $  1,725   $  7,782  $  8,961   $  64,063
                                           =========================================================================



(1)  Includes  certain  assets not  identifiable  to a specific  segment such as
     cash, accounts receivable, lease negotiation fees, debt placement fees, and
     prepaid expenses.  Also includes interest income and costs not identifiable
     to  a  particular   segment,   such  as  interest   expense,   and  certain
     amortization, general and administrative, and operations support expenses.

(2)  Includes  certain  assets not  identifiable  to a specific  segment such as
     cash, accounts receivable, lease negotiation fees, debt placement fees, and
     prepaid expenses.  Also includes interest income and costs not identifiable
     to  a  particular   segment,   such  as  interest   expense,   and  certain
     amortization,  general and administrative, and operations support expenses.
     Also  includes  gain on sale from an  investment  in an entity that owned a
     mobile offshore drilling unit.
</TABLE>



<PAGE>


                          PLM EQUIPMENT GROWTH FUND VI
                             (A Limited Partnership)
                          NOTES TO FINANCIAL STATEMENTS

5. OPERATING SEGMENTS (continued)
<TABLE>
<CAPTION>

                                                      Marine     Marine
                                           Aircraft  Container   Vessel   Trailer    Railcar     All
     For the Year Ended December 31, 1999  Leasing   Leasing    Leasing   Leasing    Leasing    Other (3)   Total
     ------------------------------------  --------- ---------  --------  ---------  --------- ---------  ----------

     REVENUES
<S>                                        <C>       <C>        <C>       <C>        <C>       <C>        <C>
       Lease revenue                       $  4,481  $  2,317   $  9,849  $  2,790   $  4,551  $     --   $  23,988
       Interest and other income                 33        --         12        (2)        47       180         270
       Gain (loss) on disposition of         24,414        93      1,670      (195)       (31)       --      25,951
     equipment
                                           -------------------------------------------------------------------------
         Total revenues                      28,928     2,410     11,531     2,593      4,567       180      50,209
                                           -------------------------------------------------------------------------

     COSTS AND EXPENSES
       Operations support                       832        --      6,322       769        829        47       8,799
       Depreciation and amortization          6,970     2,217      5,559       755      1,470        30      17,001
       Interest expense                          15        --         --        --         --     2,093       2,108
       Management fees to affiliate             196       116        481       160        308        --       1,261
       General and administrative expenses      388        11        149       546         73       767       1,934
       Loss on revaluation of equipment          --        --      3,567        --         --        --       3,567
       Provision for bad debts                  485        --         --        22         84        --         591
                                           -------------------------------------------------------------------------
         Total costs and expenses             8,886     2,344     16,078     2,252      2,764     2,937      35,261
                                           -------------------------------------------------------------------------
     Minority interests                      (8,225)       --        276        --         --        --      (7,949)
                                           -------------------------------------------------------------------------
     Equity in net income (loss) of USPEs      (250)        5     (1,029)       --         --       271      (1,003)
                                           -------------------------------------------------------------------------
     Net income (loss)                     $ 11,567  $     71   $ (5,300) $    341   $  1,803  $ (2,486)  $   5,996
                                           =========================================================================

(3)  Includes  interest  income  and  costs  not  identifiable  to a  particular
     segment,  such as interest expense, and certain  amortization,  general and
     administrative,  and operations support expenses. Also includes income from
     an investment in an entity that owned a mobile offshore drilling unit.
</TABLE>

6. GEOGRAPHIC INFORMATION

The   Partnership   owns   certain   equipment   that  is  leased  and  operated
internationally.   A  limited  number  of  the  Partnership's  transactions  are
denominated  in a foreign  currency.  Gains or  losses  resulting  from  foreign
currency  transactions  are  included in the results of  operations  and are not
material.

The Partnership leases or leased its aircraft, railcars, and trailers to lessees
domiciled in seven geographic regions: the United States, South America, Canada,
Mexico,  Europe,  Iceland,  and India.  Marine vessels and marine containers are
leased or were leased to multiple  lessees in  different  regions  that  operate
worldwide.

The  table  below  sets  forth  lease  revenues  by  geographic  region  for the
Partnership's  owned  equipment and investments in USPEs grouped by domiciles of
the lessees as of and for the years ended December 31 (in thousands of dollars):
<TABLE>
<CAPTION>

                                              Owned Equipment                       Investments in USPEs
                                    -------------------------------------   -------------------------------------

             Region                  2001        2000        1999            2001        2000        1999
   ----------------------------  -------------------------------------   -------------------------------------

<S>                               <C>         <C>          <C>            <C>         <C>          <C>
   United States                  $    4,977  $    6,921   $   8,540      $      --   $       --   $      --
   South America                          --          --       1,643             96           --          --
   Canada                              1,150       1,896       1,201             --           --          --
   Europe                                378         378         378             --           --          --
   Iceland                                --          --          --          1,014          865          --
   India                                  --          --          60             --           --          --
   Rest of the world                   5,164       8,331      12,166          5,535        3,763       3,224
                                  -------------------------------------   -------------------------------------
       Lease revenues             $   11,669  $   17,526   $  23,988      $   6,645   $    4,628   $   3,224
                                  =====================================   =====================================
</TABLE>







<PAGE>


                              EQUIPMENT GROWTH FUND
                             (A Limited Partnership)
                          NOTES TO FINANCIAL STATEMENTS

6. GEOGRAPHIC INFORMATION (continued)

The following  table sets forth net income (loss)  information by region for the
owned  equipment and  investments  in USPEs for the years ended  December 31 (in
thousands of dollars):
<TABLE>
<CAPTION>

                                          Owned Equipment                          Investments in USPEs
                                 -------------------------------------   -------------------------------------

             Region                  2001        2000        1999            2001        2000        1999
-------------------------------  -------------------------------------   -------------------------------------

<S>                               <C>         <C>          <C>            <C>         <C>          <C>
   United States                  $      877  $    3,481   $    (312)     $      --   $       --   $    (627)
   South America                          --          --      15,719           (147)          36        (185)
   Canada                                505         873         370             --            7          25
   Mexico                                 --          --          --         (1,159)         614         537
   Europe                                122          57          23             --           --          --
   Iceland                                --          --          --         (1,544)      (2,142)         --
   India                                 195        (487)     (1,839)            --           --          --
   Rest of the world                   1,843       1,109      (4,205)         1,915         (419)       (753)
                                  -------------------------------------   -------------------------------------
      Regional income (loss)           3,542       5,033       9,756           (935)      (1,904)     (1,003)
   Administrative and other           (3,613)     (2,717)     (2,757)            --           --          --
                                  -------------------------------------   -------------------------------------
      Net income (loss)           $      (71) $    2,316   $   6,999      $    (935 ) $   (1,904 ) $  (1,003)
                                  =====================================   =====================================
</TABLE>

The net  book  value  of these  assets  as of  December  31 are as  follows  (in
thousands of dollars):
<TABLE>
<CAPTION>

                                       Owned Equipment                     Investments in USPEs
                                 --------------------------           -----------------------------
             Region                  2001        2000                     2001         2000
   ----------------------------  ------------------------              -------------------------

<S>                              <C>              <C>                  <C>         <C>
   United States                 $    5,915       8,399                $      --   $       --
   South America                         --          --                    9,176           --
   Canada                             1,791       1,876                       --           --
   Mexico                                --          --                    1,368        3,592
   Europe                               958       1,137                       --           --
   Iceland                               --          --                       --       10,316
   India                                 --       1,042                       --           --
   Rest of the world                 14,543      19,051                    4,658        7,198
                                 ------------------------              -------------------------
       Net book value            $   23,207      31,505                $  15,202   $   21,106
                                 ========================              =========================
</TABLE>

7. DEBT

In August 1993, the  Partnership  entered into an agreement to issue a long-term
note  totaling  $30.0  million to two  institutional  investors.  The note bears
interest  at a fixed  rate of 6.7% per annum and had a final  maturity  in 2003.
Interest on the note was payable monthly. The note was scheduled to be repaid in
three principal  payments of $10.0 million on November 17, 2001, 2002, and 2003.
The agreement  required the Partnership to maintain certain financial  covenants
related to fixed-charge  coverage.  Proceeds from the sale of the note were used
to fund  equipment  acquisitions.  The  Partnership's  wholly and jointly  owned
equipment is used as collateral to the note.

The  General  Partner  estimates,  based on recent  transactions,  that the fair
market value of the $20.0 million fixed-rate note is $19.5 million.

In  the  fourth  quarter  of  2001,  the  General  Partner,  on  behalf  of  the
Partnership,  signed a commitment  letter to refinance  the  Partnership's  note
payable.  The  commitment  is for a $30.0  million  term  loan  facility  with a
maturity  date of five  years  after  funding.  The loan  will  call  for  equal
quarterly  principal plus interest  payments over the term of the loan. The note
will bear  interest at the  floating  rate of LIBOR plus 2.5% or a fixed rate of
the  lenders  cost of funds  plus  2.5% at the  option of the  Partnership.  The
Partnership  will  incur a  prepayment  penalty  of $1.0  million  to prepay the
existing senior note payable and a debt placement fee of $0.3 million payable to
the new lender.  These  amounts were accrued in the December 31, 2001  financial
statements.


<PAGE>


                          PLM EQUIPMENT GROWTH FUND VI
                             (A Limited Partnership)
                          NOTES TO FINANCIAL STATEMENTS

7. DEBT (continued)

In  April  2001,  PLM  International  entered  into a  $15.0  million  warehouse
facility,  which is shared with the  Partnership,  PLM Equipment Growth & Income
Fund VII, and Professional  Lease Management Income Fund I, LLC. During December
2001, this facility was amended to lower the amount  available to be borrowed to
$10.0 million. The facility provides for financing up to 100% of the cost of the
equipment. Outstanding borrowings by one borrower reduce the amount available to
each of the other  borrowers  under the facility.  Individual  borrowings may be
outstanding for no more than 270 days, with all advances due no later than April
12, 2002.  Interest  accrues  either at the prime rate or LIBOR plus 2.0% at the
borrower's  option and is set at the time of an advance of funds.  Borrowings by
the Partnership are guaranteed by PLMI. This facility expires in April 2002. The
General  Partner  believes it will be able to renew the warehouse  facility upon
its expiration with terms similar to those in the current facility.

As of December 31, 2001, the  Partnership  had no borrowings  outstanding  under
this facility and there were no other borrowings outstanding under this facility
by any other eligible borrower.

8. CONCENTRATIONS OF CREDIT RISK

No single lessee  accounted for more than 10% of the  consolidated  revenues for
the owned equipment and jointly owned equipment  during 2001, 2000, and 1999. In
1999,  however,  AAR Allen Group  International  purchased a commercial aircraft
from the  Partnership  and the gain  from  the sale  accounted  for 49% of total
consolidated revenues.

As of December 31, 2001 and 2000, the General  Partner  believed the Partnership
had no other  significant  concentrations  of  credit  risk  that  could  have a
material adverse effect on the Partnership.

9. INCOME TAXES

The  Partnership  is not  subject  to  income  taxes,  as any  income or loss is
included  in  the  tax  returns  of the  individual  partners.  Accordingly,  no
provision  for income  taxes has been made in the  financial  statements  of the
Partnership.

As of December 31, 2001, the financial  statement  carrying amount of assets and
liabilities  was  approximately  $27.1 million lower than the federal income tax
basis  of  such  assets  and  liabilities,   primarily  due  to  differences  in
depreciation  methods,  equipment reserves,  provisions for bad debts,  lessees'
prepaid  deposits,  and  the  tax  treatment  of  underwriting  commissions  and
syndication costs.

10. CONTINGENCIES

Two class action lawsuits which were filed against PLM International and various
of its wholly owned  subsidiaries  in January 1997 in the United States District
Court for the Southern District of Alabama, Southern Division (the court), Civil
Action No.  97-0177-BH-C  (the Koch action),  and June 1997 in the San Francisco
Superior Court, San Francisco,  California,  Case No. 987062 (the Romei action),
were fully resolved during the fourth quarter 2001.

The named  plaintiffs were individuals who invested in PLM Equipment Growth Fund
IV (Fund IV), PLM Equipment  Growth Fund V (Fund V), the Partnership  (Fund VI),
and PLM  Equipment  Growth & Income  Fund VII  (Fund VII and  collectively,  the
Funds),  each a California  limited  partnership  for which PLMI's  wholly owned
subsidiary,  FSI, acts as the General Partner. The complaints asserted causes of
action  against  all  defendants  for fraud and deceit,  suppression,  negligent
misrepresentation,  negligent and intentional breaches of fiduciary duty, unjust
enrichment,   conversion,   conspiracy,  unfair  and  deceptive  practices,  and
violations of state securities law.  Plaintiffs alleged that each defendant owed
plaintiffs  and the class  certain  duties due to their  status as  fiduciaries,
financial  advisors,  agents,  and  control  persons.  Based  on  these  duties,
plaintiffs   asserted  liability  against  defendants  for  improper  sales  and
marketing   practices,   mismanagement   of  the  Funds,   and  concealing  such
mismanagement  from  investors  in  the  Funds.  Plaintiffs  sought  unspecified
compensatory damages, as well as punitive damages.



<PAGE>


                          PLM EQUIPMENT GROWTH FUND VI
                             (A Limited Partnership)
                          NOTES TO FINANCIAL STATEMENTS

10. CONTINGENCIES (continued)

In February  1999 the parties to the Koch and Romei  actions  agreed to monetary
and equitable settlements of the lawsuits, with no admission of liability by any
defendant,  and filed a  Stipulation  of  Settlement  with the court.  The court
preliminarily  approved the settlement in August 2000, and information regarding
the  settlement  was sent to class members in September  2000. A final  fairness
hearing  was held on  November  29,  2000,  and on April 25,  2001,  the federal
magistrate  judge  assigned  to the case  entered  a Report  and  Recommendation
recommending  final  approval of the monetary and equitable  settlements  to the
federal district court judge. On July 24, 2001, the federal district court judge
adopted the Report and  Recommendation,  and entered a final judgment  approving
the settlements.  No appeal has been filed and the time for filing an appeal has
expired.

The monetary  settlement  provides  for a  settlement  and release of all claims
against defendants in exchange for payment for the benefit of the class of up to
$6.6  million,  consisting  of $0.3 million  deposited by PLMI and the remainder
funded by an insurance  policy.  The final settlement amount of $4.9 million (of
which PLMI's share was approximately $0.3 million) was accrued in 1999, paid out
in the fourth quarter of 2001 and was determined based upon the number of claims
filed by class  members,  the amount of attorneys'  fees awarded by the court to
plaintiffs'  attorneys,  and the amount of the administrative  costs incurred in
connection with the settlement.

The equitable  settlement  provides,  among other things, for: (a) the extension
(until  January 1, 2007) of the date by which FSI must complete  liquidation  of
the Funds' equipment,  except for Fund IV; (b) the extension (until December 31,
2004) of the period during which FSI can reinvest the Funds' funds in additional
equipment,  except  for Fund IV; (c) an  increase  of up to 20% in the amount of
front-end fees (including  acquisition and lease  negotiation  fees) that FSI is
entitled  to earn in excess  of the  compensatory  limitations  set forth in the
North American  Securities  Administrator's  Association's  Statement of Policy,
except for Fund IV; (d) a one-time  purchase  by each of Funds V, VI, and VII of
up to 10% of that partnership's outstanding units for 80% of net asset value per
unit as of  September  30,  2000;  and  (e) the  deferral  of a  portion  of the
management fees paid, except for Fund IV, to an affiliate of FSI until, if ever,
certain  performance  thresholds  have  been  met by the  Funds.  The  equitable
settlement  also  provides  for  payment of  additional  attorneys'  fees to the
plaintiffs'  attorneys  from Fund  funds in the  event,  if ever,  that  certain
performance  thresholds have been met by the Funds.  Following a vote of limited
partners  resulting in less than 50% of the limited partners of each of Funds V,
VI, and VII voting  against  such  amendments  and after  final  approval of the
settlement,  each of the Funds'  limited  partnership  agreements was amended to
reflect these changes.  During the fourth  quarter of 2001 the respective  Funds
purchased  limited  partnership  units from those  equitable  class  members who
submitted  timely requests for purchase.  Fund VI agreed to purchase  489,344 of
its limited partnership units at a total cost of $2.8 million.

The Partnership,  together with affiliates,  has initiated litigation in various
official  forums in the United  States and India against two  defaulting  Indian
airline  lessees to repossess  Partnership  property and to recover  damages for
failure to pay rent and failure to maintain  such  property in  accordance  with
relevant lease  contracts.  The  Partnership has repossessed all of its property
previously leased to these airlines. In response to the Partnership's collection
efforts,  the airline  lessees filed  counter-claims  against the Partnership in
excess of the  Partnership's  claims  against the airline.  The General  Partner
believes that the airline's  counterclaims are completely without merit, and the
General Partner will vigorously defend against such counterclaims.

During 2001,  an  arbitration  hearing was held between one India lessee and the
Partnership and the  Partnership  was awarded a settlement.  The General Partner
and the lessee are in the process of negotiating the settlement in a manner that
benefits all parties involved. The General Partner did not accrue the settlement
in  the  December  31,  2001  financial  statement  because  the  likelihood  of
collection of the settlement is remote. The General Partner will continue to try
to collect the full amount of the settlement.

During 2001, the General Partner decided to minimize its collection efforts from
the  other  India  lessee  in  order  to save  the  Partnership  from  incurring
additional  expenses associated with trying to collect from a lessee that has no
apparent ability to pay.


<PAGE>


                          PLM EQUIPMENT GROWTH FUND VI
                             (A Limited Partnership)
                          NOTES TO FINANCIAL STATEMENTS

10. CONTINGENCIES (continued)

The  Partnership  is involved as plaintiff  or defendant in various  other legal
actions  incidental  to its  business.  Management  does not believe that any of
these  actions  will be  material  to the  financial  condition  or  results  of
operations of the Partnership.

11.  QUARTERLY RESULTS OF OPERATIONS (unaudited)

The following is a summary of the quarterly  results of operations  for the year
ended December 31, 2001 (in thousands of dollars,  except  weighted-average unit
amounts):
<TABLE>
<CAPTION>

                                March            June            September         December
                                 31,              30,               30,               31,               Total
                          ------------------------------------------------------------------------------------------

Operating results:
<S>                       <C>                  <C>           <C>               <C>                <C>
  Total revenues          $         4,250      $     3,555   $         2,789   $         2,815    $       13,409
  Net income (loss)                   475            1,212            (1,559)           (1,134)           (1,006)

Per weighted-average limited partnership unit:

    Net income (loss)     $          0.05      $      0.15   $         (0.19)  $         (0.14)   $        (0.13)
</TABLE>

The  following  is a list of the major events that  affected  the  Partnership's
performance during 2001:

     (i) In the  first  quarter  of  2001,  the  Partnership  sold a  commercial
aircraft, marine containers, and a trailer for a total gain of $0.5 million;

     (ii)In the second quarter of 2001, the Partnership sold a marine vessel and
marine  containers  for a total gain of $0.5  million  and its  interest  in two
entities owning marine vessels for a total gain of $0.7 million;

     (iii)In the third quarte of 2001, the Partnership accrued $1.1 million
debt prepayment penalty related to the Partnerships note payable; and

     (iv)In the fourth quarter o 2001, the Partnership recorded a $1.6 million
loss on revaluation on the trust that owned two commercial aircraft on a direct
finance lease.

The following is a summary of the quarterly  results of operations  for the year
ended December 31, 2000 (in thousands of dollars,  except  weighted-average unit
amounts):
<TABLE>
<CAPTION>
                                March            June            September         December
                                 31,              30,               30,               31,               Total
                          ------------------------------------------------------------------------------------------

Operating results:
<S>                       <C>                   <C>          <C>               <C>                <C>
  Total revenues          $         4,706       $    4,716   $         6,070   $         4,434    $        19,926
  Net income (loss)                  (612)            (487)              880               631                412

Per weighted-average limited partnership unit:

    Net income (loss)     $         (0.10)      $    (0.08)  $          0.09   $          0.06    $         (0.03)
</TABLE>





<PAGE>



                          PLM EQUIPMENT GROWTH FUND VI
                             (A Limited Partnership)
                          NOTES TO FINANCIAL STATEMENTS

11. QUARTERLY RESULTS OF OPERATIONS (unaudited)

The  following  is a list of the major events that  affected  the  Partnership's
performance during 2000:

     (i) In the third quarter of 2000, the Partnership  sold marine  containers,
trailers,  and a railcar for a total gain of $1.8  million  and  recorded a $0.4
million loss on revaluation to a commercial aircraft; and

     (ii)In the fourth quarter of 2000, the Partnership sold a marine vessel and
marine containers for a total gain of $0.4 million.

12. SUBSEQUENT EVENT

During  January  2002,  the  Partnership  prepaid the $20.0 million note payable
outstanding  on December 31, 2001 and related $1.0 million  prepayment  penalty.
Concurrent with this payment,  the Partnership  borrowed $15.0 million under the
new $30.0  million term loan  facility.  The $15.0  million  facility loan bears
interest at rates  between  4.375% and  4.9375%.  The loans made in January 2002
were based on three and twelve  month LIBOR and will be adjusted to market rates
at the end of the LIBOR term. All loans under this facility are repaid over five
years  with  equal  principal  plus  interest  payments.   The  General  Partner
anticipates  that the Partnership  will borrow an additional $15.0 million under
this facility in 2002 (see Note 7).













                      (This space intentionally left blank)


<PAGE>











INDEPENDENT AUDITORS' REPORT




The Partners
PLM Equipment Growth Fund VI:


We have audited the financial  statements  of PLM Equipment  Growth Fund VI (the
"Partnership")  as of December 31, 2001,  and for the year then ended,  and have
issued our report thereon dated March 8, 2002; such report is included elsewhere
in this Form 10-K. Our audit also included the financial  statement  schedule of
PLM  Equipment  Growth  Fund VI,  listed in Item 14.  This  financial  statement
schedule  is  the   responsibility   of  the   Partnership's   management.   Our
responsibility is to express an opinion based on our audit. In our opinion, such
financial statement schedule, when considered in relation to the basic financial
statements  taken as a whole,  presents  fairly  in all  material  respects  the
information set forth therein.






/s/ Deloitte & Touche LLP


Certified Public Accountants

Tampa, Florida
March 8, 2002











<PAGE>











INDEPENDENT AUDITORS' REPORT




The Partners
PLM Equipment Growth Fund VI:


Under date of March 2, 2001,  we reported on the balance  sheet of PLM Equipment
Growth  Fund  VI  as of  December  31,  2000,  and  the  related  statements  of
operations,  changes in partners' capital,  and cash flows for each of the years
in the two-year  period ended December 31, 2000, as contained in the 2001 annual
report to the partners.  These  financial  statements and our report thereon are
included in the annual report on Form 10-K for the year ended December 31, 2001.
In connection with our audits of the  aforementioned  financial  statements,  we
also audited the related financial  statement  schedule for each of the years in
the two-year ended December 31, 2000. This financial  statement  schedule is the
responsibility of the Partnership's management. Our responsibility is to express
an opinion on this financial statement schedule based on our audits.

In our opinion,  such financial statement schedule,  when considered in relation
to the basic financial  statements  taken as a whole,  presents  fairly,  in all
material  respects,  the  information set forth therein for each of the years in
the two-year period ended December 31, 2000.




/s/ KPMG LLP


SAN FRANCISCO, CALIFORNIA
March 12, 2001






<PAGE>



                          PLM EQUIPMENT GROWTH FUND VI
                             (A Limited Partnership)
                        Valuation and Qualifying Accounts

                  Years Ended December 31, 2001, 2000, and 1999
                            (in thousands of dollars)
<TABLE>
<CAPTION>


                                                                  Additions
                                             Balance at          Charged to                          Balance at
                                            Beginning of          Cost and                            Close of
                                                Year               Expense           Deductions         Year
                                           ----------------    ----------------     --------------  -------------

  Year Ended December 31, 2001
<S>                                        <C>                <C>                   <C>             <C>
       Allowance for Doubtful Accounts     $        402       $          (15)       $        (7)    $      380
                                           ======================================================================

  Year Ended December 31, 2000
       Allowance for Doubtful Accounts     $      2,416       $           --        $    (2,014)    $      402
                                           ======================================================================

  Year Ended December 31, 1999
       Allowance for Doubtful Accounts     $      1,930       $          595        $      (109)    $    2,416
                                           ======================================================================
</TABLE>






<PAGE>


                          PLM EQUIPMENT GROWTH FUND VI

                                INDEX OF EXHIBITS
<TABLE>
<CAPTION>


  Exhibit                                                                                          Page

<S>                                                                                          <C>
    4.      Limited Partnership Agreement of Partnership.                                       *

    4. 1    Second Amendment to the Amended and Restated Limited Partnership                 54-57
            Agreement

   10. 1    Management Agreement between Partnership and                                        *
            PLM Investment Management, Inc.

   10. 2    Note Agreement, dated as of August 1, 1993, regarding                               *
            $30.0 million in 6.7% senior notes due November 17, 2003.

   10. 3    Note Agreement, dated as of December 21, 2001, regarding $30.0 million
            term loan notes due December 21, 2006.                                           58-157

   10. 4    Warehousing Credit Agreement dated as of April 13, 2001.                            *

   10. 5    First Amendment to Warehousing Credit Agreement, dated as of December
            21, 2001.                                                                        158-166

            Financial Statements required under Regulation S-X Rule 3-09:

   99. 1    Aero California Trust (A Trust).                                                 167-176

   99. 2    Lion Partnership.                                                                177-186

   99. 3    Boeing 737-200 Trust S/N 24700.                                                  187-198


--------

* Incorporated by reference. See page 27 of this report.
</TABLE>