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, 2000.

     [  ]    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.)

    One Market, Steuart Street Tower
      Suite 800, San Francisco, CA                          94105-1301
          (Address of principal                             (Zip code)
           executive offices)


        Registrant's telephone number, including area code (415) 974-1399
                             -----------------------



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 28.

Total number of pages in this report: 83.


<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,  2000,  there  were  8,189,465  units   outstanding.   The  General  Partner
contributed $100 for its 5% general partner interest in the Partnership.

Beginning  in the  Partnership's  seventh  year of  operation,  which  commenced
January 1, 2000, the General  Partner  stopped  reinvesting  cash flow.  Surplus
funds, if any, less reasonable reserves, will be distributed to the partners. In
the ninth year of  operations of the  Partnership,  which  commences  January 1,
2002, the General  Partner  intends to begin the  dissolution and liquidation of
the  Partnership  in an orderly  fashion,  unless the  Partnership is terminated
earlier upon sale of all of the  equipment  or by certain  other  events.  Under
certain circumstances,  however, the term of the Partnership may be extended. In
no event will the Partnership be extended beyond December 31, 2011.





<PAGE>


Table 1, below,  lists the  equipment  and the original cost of equipment in the
Partnership's  portfolio,  equipment  held for sale,  and the  original  cost of
investments in unconsolidated  special-purpose  entities as of December 31, 2000
(in thousands of dollars):
<TABLE>
<CAPTION>

                                     TABLE 1

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

Owned equipment held for operating leases:

<S>                                                                                                  <C>
  9,383     Marine containers                                 Various                                $     18,973
  2,910     Refrigerated marine containers                    Various                                       6,593
    366     Pressurized tank railcars                         Various                                      10,698
    180     Nonpressurized tank railcars                      Various                                       3,482
    138     Covered hopper railcars                           Various                                       3,064
      1     DC-9-82 Stage III commercial aircraft             McDonnell Douglas                            13,951
      1     Portfolio of aircraft rotables                    Various                                       2,273
      1     Container cargo carrier vessel                    O. C. Staalskibsvaerft A/F                    8,040
    341     Dry piggyback trailers                            Stoughton                                     5,258
                                                                                                     -------------
                Owned equipment held for operating leases                                                  72,332

Owned equipment held for sale:

      1     737-200 Stage II commercial aircraft              Boeing                                        5,406

                                                                                                     -------------
                Total owned equipment                                                                $     77,738(1)
                                                                                                     =============

Investments in unconsolidated special-purpose entities:

   0.62     737-300 Stage III commercial aircraft             Boeing                                 $     14,150(2)
   0.40     Equipment on direct finance lease:
              Two DC-9 Stage III commercial aircraft          McDonnell Douglas                             4,505(3)
   0.53     Product tanker                                    Boelwerf-Temse                               10,476(2)
   0.50     Container cargo feeder vessel                     O. C. Staalskibsvaerft A/F                    4,004(2)
   0.20     Handymax dry bulk carrier marine vessel           Tsuneishi Shipbuilding Co., Ltd               3,553(2)
                                                                                                     -------------
                Total investments in unconsolidated special-purpose entities                         $     36,688(1)
                                                                                                     =============
----------
<FN>
(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.
</FN>
</TABLE>

Equipment is generally  leased under  operating  leases for a term of one to six
years  except for marine  vessels  operating  on voyage  charter or time charter
which are  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.  Lease  revenues  for  trailers  that
operated in rental yards owned by PLM Rental,  Inc.,  were based on a fixed rate
for a specific  period of time,  usually short in duration.  Rents for all other
equipment are based on fixed rates.

The lessees of the  equipment  include but are not limited to: Aero  California,
AAR Allen Group  International,  Domino  Sugar  Corp.,  Islandsflug  HF.,  Tosco
Refining Company,  Terra Nitrogen Corporation,  Trans World Airlines,  and Union
Carbide Corporation.


<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 operates or operated in the following operating segments: marine
vessel leasing, marine container leasing, aircraft leasing, railcar 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 those
aircraft  leased to passenger  air  carriers,  the  Partnership's  equipment and
investments are used to transport materials and commodities, rather than people.

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

(1)  Marine Containers

The Partnership's  portfolio of containers is composed of two distinct groups of
containers.   During  the  early  years  of  the  Partnership's  operation,  the
Partnership  acquired  mixed  fleets  of 5- to 7-  year-old  standard  dry cargo
containers and specialized cargo containers that were leased in  revenue-sharing
agreements. This older equipment is now in excess of twelve years of age, and is
generally 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 continued to be strong over the last several years, as it relates
to standard dry  containers.  In the last year, the  Partnership has experienced
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  have  been  opportunistically  driven  by  the
historically  low  acquisition  prices  recently  available  in the market.  The
Partnership  has been able to acquire  standard  dry 20-foot  containers  in the
$1,500 to $1,600 range per container;  several years ago, similar  equipment was
being sold in the $2,000 range.  The primary  reason for this reduction in price
relates  to  excess  capacity  with  Chinese   manufacturers,   whose  factories
represent,  in the  aggregate,  in  excess  of 90%  of the  worldwide  container
building capacity,  and competitive  pricing decisions being made on their part,
with the apparent support of the Chinese  government,  in a desire to keep their
factories operating.

(2)  Railcars

(a)  Pressurized Tank Cars

Pressurized  tank cars are used to transport  liquefied  petroleum  gas (natural
gas) and anhydrous  ammonia  (fertilizer).  The U.S. markets for natural gas are
industrial  applications  (46% of  estimated  demand in 2000),  residential  use
(21%),   electrical  generation  (15%),   commercial   applications  (15%),  and
transportation  (3%).  Natural gas consumption is expected to grow over the next
few years as most new electrical  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,  the status of government
farm  subsidy  programs,  amount of farming  acreage  and mix of crops  planted,
weather  patterns,  farming  practices,  and  the  value  of  the  U.S.  dollar.
Population growth and dietary trends also play an indirect role.

On an  industry-wide  basis,  North American  carloadings of petroleum  products
increased  3% and  chemical  products  increased  1% in 2000,  compared to 1999.
Consequently,  demand for  pressurized  tank cars remained  relatively  constant
during 2000,  with  utilization of this type of railcar  within the  Partnership
remaining  above 98%.  While  renewals  of existing  leases  continue at similar
rates, some cars continue to be renewed for "winter only" terms of approximately
six months. As a result, many of the Partnership's  pressurized tank cars are up
for renewal in the spring of 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.  This railcar
type  continued  to be in high demand  during  2000.  The overall  health of the
market  for these  types of  commodities  is closely  tied to both the U.S.  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,  carloadings of petroleum products increased 3%
and chemical products increased 1% in 2000, compared to 1999 levels. Utilization
of the Partnership's nonpressurized tank cars remained above 98% during 2000.

(c)  Covered Hopper (Grain) Cars

Demand for covered hopper railcars,  which are specifically  designed to service
the grain  industry,  continued to  experience  weakness  during 2000.  The U.S.
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 feed lots.
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.

Within the United States,  carloadings  of grain  products  decreased 2% in 2000
compared  to 1999.  Other  factors  contributing  to the  softness in demand for
covered  hopper cars is the large  number of new cars built  during the last few
years and the improved  utilization of covered  hoppers by the railroads.  As in
1999,  covered hopper  railcars  whose leases  expired in 2000,  were renewed at
considerably lower rental rates.

(3)  Aircraft

(a)      Commercial Aircraft

Both Boeing and Airbus  Industries have predicted that the rate of growth in the
demand for air transportation services will be relatively robust for the next 20
years.  Boeing has predicted that the demand for passenger services will grow at
an average rate of about 5% per year and the demand for cargo  traffic will grow
at about 6% per year during that period.  Such growth will require a substantial
increase in the number of commercial  aircraft.  According to Boeing,  as of the
end of 1999, the world fleet of jet-powered commercial aircraft included a total
of approximately 13,670 airplanes. That total included 11,994 passenger aircraft
with 50 seats or more and 1,676 freighter aircraft.  Boeing predicts that by the
end of 2019 that  fleet will grow to  approximately  31,755  aircraft  including
28,558 passenger aircraft with 50 seats or more and 3,197 freighter aircraft. To
support this growth,  Boeing  received 502 new aircraft  orders in the first ten
months of 2000 and Airbus received 427.

Airline economics will also require aircraft to be retained in active commercial
service for longer periods than previously  expected.  Consequently,  the market
for environmentally acceptable and economically viable aircraft will continue to
be robust and such aircraft will command  relatively  high residual  values.  In
general,  aircraft values have tended to grow at about 3% per year.  Lease rates
should also grow at similar rates.  However, such rates are subject to variation
depending  on the state of the world  economy and the  resultant  demand for air
transportation services.

The Partnership  owns a 40% interest in two DC-9s and one wholly owned MD-82 all
of which were on lease throughout 2000 at above market rates. It owns 62% of one
B737-300  that was placed on lease in 2000 at market rate.  It also owns one off
lease  B737-200  that is not Stage III  compliant  and was sold during  February
2001.

(b)      Rotables

The Partnership  owns a package of aircraft  components,  or rotables,  that are
used for MD-83s.  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 remained stable in
2000.

(4)  Marine Vessels

The  Partnership  owns or has  investments  in  small to  medium-sized  dry bulk
vessels,  product  tankers,  and  container  vessels,  all of which  operate  in
international markets carrying a variety of commodity-type  cargoes.  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 vessels through a combination of spot
and period  charters,  an approach  that  provides the  flexibility  to adapt to
changes in market conditions.

(a) Container and Container Feeder Vessels

The Partnership  owns a 400 20-foot  equivalent unit container marine vessel and
has an investment in a similar marine vessel,  both of which  performed  poorly.
The market for marine  vessels of this size  continued to be very soft as it had
been in 1999. The market for  significantly  larger container marine vessels did
improve  during  2000,  but  there  was  no  corresponding  improvement  in  the
smaller-sized  marine vessels such as the two that the  Partnership  owns. In an
attempt to improve Partnership returns,  both from a revenue perspective and the
ultimate sale of these  assets,  charters were signed with a Far East lessee and
the  marine  vessels  were  positioned  from the  Atlantic,  where they had been
operating  primarily  on the spot  market,  to the Far East.  This move has been
successful in that the Partnership has seen reliable earning from these charters
and increased sales interest.

(b)  Product Tanker

The Partnership has an investment in a 1975-built 50,000 dead weight ton product
tanker  that   operates  in   international   markets   carrying  a  variety  of
commodity-type cargoes.  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 through a combination  of spot and period  charters,  an approach
that provides the flexibility to adapt to changes in market conditions, carrying
mostly fuel oil and similar petroleum distillates.

The  market  for  product  tankers  improved   throughout  2000,  with  dramatic
improvements  experienced  in the fourth  quarter;  and is  expected to continue
strong  throughout  2001.  The  strength  in the  charter  market for tankers is
generally tied to overall economic  activity,  and in particular,  the upturn in
activity seen in the Far East.

(c)  Dry Bulk Vessel

The  Partnership  has an investment in a small to  medium-sized  dry bulk marine
vessel  that   operates  in   international   markets   carrying  a  variety  of
commodity-type cargoes.  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 marine
vessel  through a  combination  of spot and period  charters,  an approach  that
provides the flexibility to adapt to changes in market conditions.

During 2000,  the market for bulk  carriers  exhibited,  as  expected,  seasonal
strengthening in the late winter, that continued strong through the summer, with
some weakness  throughout the fall. The Partnership's dry bulk marine vessel was
sheltered,  in  part,  from  seasonal  changes  due to a  long-term  contractual
agreement that expired during 2000.

(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  decade,
intermodal  trailers  have  continued  to be  gradually  displaced  by  domestic
containers as the preferred  method of transport for such goods.  This is caused
by  railroads  offering  approximately  15% lower  freight  rates on  containers
compared to  trailers.  During  2000,  demand for  intermodal  trailers was more
volatile than historic  norms.  Slow demand occurred over the second half of the
year due to a slowing economy and continued  customer concerns over rail service
problems  associated  with mergers in the rail  industry.  Due to the decline in
demand,  which occurred over the latter half of 2000, overall,  shipments within
the  intermodal  trailer  market  declined  more than  expected for the year, or
approximately 10% compared to the prior year. Average  utilization of the entire
U.S.  intermodal fleet rose from 73% in 1998 to 77% in 1999 and then declined to
75% in 2000.

The  General  Partner  further  expanded  its  marketing  program to attract new
customers for the Partnership's intermodal trailers during 2000. Even with these
efforts,  average utilization for the Partnership's  intermodal trailers for the
year 2000 dropped 1% to approximately 81%, still above the national average.

The trend towards using domestic  containers  instead of intermodal  trailers is
expected to continue in the future.  Overall,  intermodal  trailer shipments are
forecast to decline by 6% -10% in 2001,  compared to the prior year,  due to the
anticipated  continued weakness of the overall economy.  As such, the nationwide
supply of intermodal trailers is expected to have approximately  10,000 units in
surplus  compared  with  demand  for  2001.  Maintenance  costs  have  increased
approximately  20% due to improper repair methods performed by the railroads and
billed to owners.  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 also 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  to meet these
regulations, at considerable cost to the Partnership. Such regulations include:

     (1) the United States (U.S.) 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 U.S. Department of Transportation's  Aircraft Capacity Act of 1990,
     which limits or  eliminates  the  operation of  commercial  aircraft in the
     United  States  that does not meet  certain  noise,  aging,  and  corrosion
     criteria.  The Partnership has a Stage II aircraft that does not meet Stage
     III requirements. This Stage II aircraft is scheduled to be sold;

     (3) the Montreal  Protocol on  Substances  that Deplete the Ozone Layer and
     the U.S. 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;

     (4) the U.S. 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 a tank railcar for service.  The average cost of
     this  inspection  is $1,800 for  non-jacketed  tank railcars and $3,600 for
     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 315  non-jacketed  tank
     railcars  and 231  jacketed  tank  railcars  of  which  a total  of 29 tank
     railcars have been inspected to date and no defects have been discovered.

As of  December  31,  2000,  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 interest in entities  that own  equipment for leasing
purposes.  As of  December  31,  2000,  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 One Market,  Steuart Street
Tower, Suite 800, San Francisco,  California  94105-1301.  All office facilities
are provided by FSI without reimbursement by the Partnership.

ITEM 3. LEGAL PROCEEDINGS

PLM  International,  (the Company) and various of its wholly owned  subsidiaries
are  defendants  in a class  action  lawsuit  filed in January 1997 and which is
pending  in the  United  States  District  Court for the  Southern  District  of
Alabama,  Southern  Division (Civil Action No.  97-0177-BH-C)  (the court).  The
named  plaintiffs are six individuals who invested in PLM Equipment  Growth Fund
IV, PLM  Equipment  Growth Fund V (Fund V), PLM  Equipment  Growth Fund VI (Fund
VI), and PLM Equipment  Growth & Income Fund VII (Fund VII),  collectively  (the
Funds),  each a California  limited  partnership for which the Company's  wholly
owned  subsidiary,  PLM  Financial  Services,  Inc.  (FSI),  acts as the General
Partner.

The complaint  asserts  causes of action  against all  defendants  for fraud and
deceit,  suppression,  negligent  misrepresentation,  negligent and  intentional
breaches of fiduciary  duty,  unjust  enrichment,  conversion,  and  conspiracy.
Plaintiffs  allege 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  assert  liability  against
defendants  for improper  sales and marketing  practices,  mismanagement  of the
Funds, and concealing such mismanagement from investors in the Funds. Plaintiffs
seek unspecified compensatory damages, as well as punitive damages.

In June 1997, the Company and the affiliates who are also defendants in the Koch
action were named as defendants in another  purported  class action filed in the
San Francisco  Superior Court,  San Francisco,  California,  Case No.987062 (the
Romei  action).  The plaintiff is an investor in Fund V, and filed the complaint
on her own  behalf and on behalf of all class  members  similarly  situated  who
invested in the Funds. The complaint  alleges the same facts and the same causes
of action as in the Koch action, plus additional causes of action against all of
the defendants,  including alleged unfair and deceptive practices and violations
of  state  securities  law.  In July  1997,  defendants  filed a  petition  (the
petition) in federal district court under the Federal Arbitration Act seeking to
compel  arbitration of plaintiff's  claims.  In October 1997, the district court
denied  the  Company'  s  petition,  but in  November  1997,  agreed to hear the
Company's  motion for  reconsideration.  Prior to  reconsidering  its order, the
district court dismissed the petition pending settlement of the Romei action, as
discussed  below.  The state court action  continues  to be stayed  pending such
resolution.

In February 1999 the parties to the Koch and Romei actions  agreed to settle the
lawsuits,  with  no  admission  of  liability  by any  defendant,  and  filed  a
Stipulation  of Settlement  with the court.  The  settlement is divided into two
parts,  a  monetary  settlement  and  an  equitable  settlement.   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.  The final settlement  amount will depend on the number of claims filed
by class members,  the amount of the administrative costs incurred in connection
with the  settlement,  and the amount of attorneys' fees awarded by the court to
plaintiffs'  attorneys.  The Company will pay up to $0.3 million of the monetary
settlement,  with  the  remainder  being  funded  by an  insurance  policy.  For
settlement  purposes,  the monetary  settlement class consists of all investors,
limited partners, assignees, or unit holders who purchased or received by way of
transfer or  assignment  any units in the Funds  between May 23, 1989 and August
30, 2000. The monetary  settlement,  if approved,  will go forward regardless of
whether the equitable settlement is approved or not.

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;  (b) the extension (until December 31, 2004) of the period
during which FSI can reinvest the Funds' funds in additional  equipment;  (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; (d) a one-time repurchase by
each  of  Fund  V,  Fund  VI and  Fund  VII of up to 10% of  that  partnership's
outstanding units for 80% of net asset value per unit; and (e) the deferral of a
portion of the  management  fees paid to an  affiliate  of FSI  until,  if ever,
certain  performance  thresholds  have been met by the  Funds.  Subject to final
court  approval,  these  proposed  changes  would be made as  amendments to each
Fund's limited partnership agreement if less than 50% of the limited partners of
each Fund vote against such amendments.  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. The equitable settlement class consists of all investors,  limited
partners,  assignees  or unit  holders  who on August 30, 2000 held any units in
Fund V, Fund VI, and Fund VII, and their assigns and successors in interest.

The court  preliminarily  approved  the monetary and  equitable  settlements  in
August 2000, and information regarding each of the settlements was sent to class
members in September  2000. The monetary  settlement  remains subject to certain
conditions,  including  final  approval by the court  following a final fairness
hearing.  The  equitable  settlement  remains  subject  to  certain  conditions,
including judicial approval of the proposed amendments and final approval of the
equitable settlement by the court following a final fairness hearing.

A final fairness hearing was held on November 29, 2000 and the parties await the
court's  decision.  The Company continues to believe that the allegations of the
Koch and Romei actions are  completely  without merit and intends to continue to
defend this matter vigorously if the monetary settlement is not consummated.

The Company 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 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, 2000.

















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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,  2000,  there were 7,859  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 generally 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 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  U.S.  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.

The  Partnership  may redeem a certain number of units each year under the terms
of the Partnership's Limited Partnership Agreement, beginning November 24, 1995.
If the number of units made  available  for purchase by limited  partners in any
calendar year exceeds the number that can be purchased  with  reinvestment  plan
proceeds,  then the  Partnership  may,  subject to certain terms and conditions,
redeem up to 2% of the  outstanding  units each year.  The purchase  price to be
offered  by the  Partnership  for  these  units  will  be  equal  to 110% of the
unrecovered  principal  attributable to the units. The unrecovered principal for
any  unit  will  be  equal  to  the  excess  of  (i)  the  capital  contribution
attributable to the unit over (ii) the  distributions  from any source paid with
respect to the units. As of December 31, 2000, the Partnership has repurchased a
cumulative total of 128,782 units at a cost of $1.5 million. The General Partner
has decided that it would not purchase  Partnership units under the terms of the
Partnership's limited partnership agreement during 2001. The General Partner may
purchase  additional  limited  partnership units on behalf of the Partnership in
the future.











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<PAGE>


ITEM 6.    SELECTED FINANCIAL DATA

Table 2, below, lists selected financial data for the Partnership:

                                     TABLE 2

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

                                                          2000           1999          1998          1997         1996
                                                   -------------------------------------------------------------------------

      Operating results:
<S>                                                <C>             <C>            <C>            <C>             <C>
        Total revenues                             $    19,926     $    50,209    $    35,140    $     39,576    $    36,356
        Net gain on disposition of equipment             2,147          25,951          6,253          10,121          7,214
        Loss on revaluation of equipment                   374           3,567          4,276              --             --
        Equity in net income (loss) of uncon-
          solidated special-purpose entities            (1,904)         (1,003)         6,465           3,336          3,700
        Net income                                         412           5,996          1,445           9,232          8,291

      At year-end:
        Total assets                               $    64,063     $    78,204    $   104,270    $    121,551    $   123,441
        Total liabilities                               32,441          33,183         38,022          39,006         41,059
        Note payable                                    30,000          30,000         30,000          30,000         31,286

      Cash distribution                            $    13,794     $    13,806    $    15,226    $     17,384    $    17,467

      Cash distribution representing
        a return of capital to the limited
        partners                                   $    13,104     $     7,810    $    13,781    $      8,152    $     9,176

      Per weighted-average limited partnership unit:

        Net income (loss)                          $     (0.03)(1) $      0.65(1) $      0.08(1) $       1.01(1) $       0.89(1)

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

        Cash distribution representing
          a return of capital                      $      1.60     $      0.95    $      1.68    $       0.99    $       1.11

----------
<FN>
(1) After reduction of income necessary to cause the General  Partner's  capital
account to equal zero of $0.7  million  ($0.08 per  weighted-average  depositary
unit) in 2000,  $0.4 million  ($0.04 per  weighted-average  depositary  unit) in
1999, $0.7 million ($0.08 per  weighted-average  depositary  unit) in 1998, $0.4
million ($0.04 per  weighted-average  depositary unit) in 1997, and $0.5 million
($0.05 per weighted-average depositary unit) in 1996.

</FN>
</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 re-pricing risk occurs
whenever the leases for the equipment expire or are otherwise terminated and the
equipment must be re-marketed. 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 2000 primarily in 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 or operated with
short-line railroad systems and in short-term rental facilities.  The relatively
short  duration  of most  leases in these  operations  exposes  the  trailers to
considerable re-leasing activity.  Contributions from the Partnership's trailers
were  lower  in  2000  when  compared  to  1999  due to the  sale  of 49% of the
Partnership's trailers during 2000.

     (c) Marine vessels:  Certain of the Partnership's marine vessels operate in
the voyage charter market or the time charter  market.  Voyage charters and time
charters  are usually  short in duration and reflect the  short-term  demand and
pricing trends in the marine vessel market. As a result of this,  certain of the
Partnership's  marine  vessels will be  remarketed  during 2001 exposing them to
re-leasing and repricing risk.

     (d) Aircraft:  Two of the  Partnership's  aircraft leases are due to expire
during  2001  exposing  them  to  re-leasing  and  repricing  risk.  One  of the
Partnership's  Stage II commercial aircraft which is scheduled to be sold during
2001, was off lease 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. The increase in marine container contributions in
2000 compared to 1999 was due to equipment  purchases.  Market  conditions  were
relatively constant during 2000.

(2)  Equipment Liquidations

Liquidation  of  Partnership   equipment  and   investments  in   unconsolidated
special-purpose  entities  (USPEs),  represents  a reduction  in the size of the
equipment  portfolio  and may  result  in a  reduction  of  contribution  to the
Partnership.  During the year, the Partnership  disposed of owned equipment that
included marine vessels,  marine  containers,  trailers,  and railcars for total
proceeds of $9.1 million. The Partnership also received additional sale proceeds
of $0.1  million  from the sale of its interest in an entity that owned a mobile
offshore drilling unit during 1999.


<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 2000:

     (i) Two former India lessees are having financial difficulties. The General
Partner has initiated litigation in various official forums in 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.
During 2000,  the total amount of $2.2 million due from these  lessees which had
been previously reserved for as a bad debt, 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.

     (ii)Trans  World  Airlines  (TWA), a current  lessee,  filed for bankruptcy
protection  under Chapter 11 in January  2001.  As of December 31, 2000,  TWA is
current  with  its  lease  payments.  American  Airlines  (AA) has  proposed  an
acquisition  of TWA  that  is  being  reviewed  by  the  United  States  Justice
Department.  Contingent  upon AA's  acquisition of TWA, the General  Partner has
accepted an offer from AA to extend the  existing  leases up to 84 months at the
current market monthly rate.

(4)  Equipment Valuation

In accordance  with  Financial  Accounting  Standards  Board  Statement No. 121,
"Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to
Be  Disposed  Of",  the  General  Partner  reviews  the  carrying  value  of the
Partnership's  equipment portfolio at least quarterly and whenever circumstances
indicate that the carrying  value of an asset may not be recoverable in relation
to  expected  future  market   conditions  for  the  purpose  of  assessing  the
recoverability of the recorded amounts. 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. Reductions of $0.4 million and
$3.6 million to the carrying value of owned  equipment were required during 2000
and 1999,  respectively.  Reductions  of $4.3  million  and $1.0  million to the
carrying value of owned equipment and partially owned  equipment,  respectively,
were required during 1998.

(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's  total  outstanding   indebtedness,
currently  $30.0  million,  can only be increased by a maximum of $5.0  million,
subject to specific covenants in existing debt agreements.

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

For the year ended December 31, 2000, the Partnership generated $12.1 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 $13.8  million to the  partners,  but also used  undistributed
available cash from prior periods and asset sales proceeds of approximately $1.7
million.

Accounts receivable  increased $0.6 million during 2000. The increase was due to
the reduction of the amount in the  allowance  for bad debts.  The reduction was
caused by amounts  the  Partnership  owes to the  lessee  being  offset  against
receivables due from the lessee which had been previously  reserved for as a bad
debt.

Investments  in USPEs  decreased $6.6 million during 2000 due to the transfer of
the Partnership's  interest in an entity that owned marine containers with a net
book  value of $1.9  million  to owned  equipment,  cash  distributions  of $2.8
million to the  Partnership  from the USPEs,  and a $1.9  million  loss that was
recorded from operations from its equity interests in USPEs.

Accounts  payable  decreased  $0.9 million due to the payment of $0.9 million in
2000 for marine  containers that were purchased in 1999 and included as accounts
payable at December 31, 1999.

Due to affiliates  increased $0.5 million during 2000 due to an increase of $0.3
million due to an affiliated USPE for engine reserves and $0.2 million due to an
affiliated USPE for security deposits.

The  Partnership  entered into an agreement to issue a long-term  note  totaling
$30.0  million to two  institutional  investors in August  1993.  The note bears
interest  at a fixed  rate of 6.7% per annum and has a final  maturity  in 2003.
Interest on the note is payable  monthly.  The note is scheduled to be repaid in
three principal  payments of $10.0 million on November 17, 2001, 2002, and 2003.
The Partnership's  wholly and partially owned equipment is used as collateral to
the note.

The Partnership's warehouse facility, which was shared with PLM Equipment Growth
& Income Fund VII,  Professional  Lease  Management  Income Fund I, LLC, and TEC
Acquisub,  Inc., an indirect  wholly owned  subsidiary  of the General  Partner,
expired on September 30, 2000. The General Partner is currently negotiating with
a new lender for a $15.0 million warehouse credit facility with similar terms as
the facility that  expired.  The General  Partner  believes the facility will be
completed during the first half of 2001.

Pursuant to the terms of the limited partnership  agreement,  beginning December
1, 1994, if the number of units made available for purchase by limited  partners
in any calendar year exceeds the number that can be purchased with  reinvestment
plan  proceeds,   then  the  Partnership  may,  subject  to  certain  terms  and
conditions,  redeem up to 2% of the  outstanding  units each year.  The purchase
price to be  offered  for such  units  will be equal to 110% of the  unrecovered
principal  attributed  to the  units.  Unrecovered  principal  is defined as the
excess of the capital contribution attributable to a unit over the distributions
from any source paid with respect to that unit. The General  Partner has decided
that  it  would  not  purchase   Partnership   units  under  the  terms  of  the
Partnership's limited partnership agreement during 2001. The General Partner may
purchase additional units on behalf of the Partnership in the future.

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

In September 1999, PLM Financial  Services,  Inc. (FSI or the General  Partner),
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 nine months
ended September 30, 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.

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

(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,  when  compared to the same
period of 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):

                                                            For the Years
                                                         Ended December 31,
                                                        2000             1999
                                                     ---------------------------
  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

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 the same period of 1999.
An increase in lease revenues of $2.2 million during the year ended December 31,
2000 was due to the purchase of marine  containers  during the second and fourth
quarters of 1999. In addition,  lease revenues increased $0.2 million due to the
transfer  of  the  Partnership's  investment  in an  entity  that  owned  marine
containers from 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 the same  period of 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 when compared to the same period of 1999.  The increase in direct  expenses
of $0.2 million during the year ended December 31, 2000 was due to higher repair
costs when compared to the same period of 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 the same period of 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 that 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 the same period of 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 the same  period of 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 the same period
of 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 when compared to the same period of 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 when compared to the same period of 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 when compared to the same period of 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  receivables  being  lower by $0.7
million when  compared to the same period of 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 when
compared to the same period of 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 when
compared to the same period of 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
when compared to the same period of 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

Net income (loss) generated from the operation of jointly-owned assets accounted
for under the equity method of  accounting  is shown in the  following  table by
equipment type (in thousands of dollars):

                                                        For the Year
                                                     Ended December 31,
                                                   2000               1999
                                                ------------------------------
  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 )
                                                ============      ============

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  when   compared  to  the  same  period  of  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 the same period of 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 when compared to the same period of 1999.  The decrease
in lease revenues caused by the  repositioning,  was off set by the other marine
vessel earning $0.1 million in additional lease revenues due to earning a higher
lease rate during all of 2000 when compared to the same period of 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 the same  period of 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 $2.2 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 the same period of 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 the same period of 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.

(2)  Comparison  of the  Partnership's  Operating  Results  for the Years  Ended
     December 31, 1999 and 1998

(a)  Owned Equipment Operations

In September 1999, the General Partner 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  will be 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 nine months ended  September 30, 1999 and were
included  with the  owned  equipment  operations.  For the  three  months  ended
December 31, 1999,  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.

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, 1999,  when  compared to the year
ended 1998.

The following  table presents lease revenues less direct expenses by segment (in
thousands of dollars):

                                                           For the Years
                                                        Ended December 31,
                                                       1999             1998
                                                    ----------------------------
  Railcars                                          $  3,722         $  3,254
  Aircraft, aircraft engines, and components           3,649            7,907
  Marine vessels                                       3,527            4,640
  Marine containers                                    2,317              911
  Trailers                                             2,021            2,478

Railcars:  Railcar lease revenues and direct expenses were $4.6 million and $0.8
million,  respectively,  for the year ended December 31, 1999,  compared to $4.1
million  and $0.9  million,  respectively,  for the  same  period  of 1998.  The
increase in railcar  lease  revenues  was due to the  purchase of a portfolio of
railcars  during the fourth  quarter of 1998.  These  railcars were on lease the
entire  1999  year  compared  to being on lease for less than two weeks in 1998.
Railcar  contribution  also increased due to lower repairs  required during 1999
when compared to the same period of 1998.

Aircraft,  aircraft engines, and components:  Aircraft lease revenues and direct
expenses  were $4.5 million and $0.8 million,  respectively,  for the year ended
December 31,  1999,  compared to $9.1  million and $1.2  million,  respectively,
during the same period of 1998.  The decrease in aircraft lease revenues of $1.1
million was due to a Boeing  737-200 being  off-lease  during the entire year of
1999  that was  on-lease  for 10 months of 1998.  Additionally,  aircraft  lease
revenues  decreased $3.5 million due to the sale of a Boeing 767-200ER Stage III
commercial  aircraft in June 1999. Direct expenses decreased $0.5 million due to
required  repairs  to the  Boeing  737-200  and  767-200  in 1998  that were not
required in 1999.

Marine  vessels:  Marine  vessel lease  revenues and direct  expenses  were $9.8
million and $6.3 million,  respectively,  for the year ended  December 31, 1999,
compared to $10.7 million and $6.1 million, respectively, during the same period
of 1998.  The purchase of two marine vessels during 1998 and 1999 generated $2.2
million in additional lease revenues. During the end of 1998, two marine vessels
ended their existing lease with a lessee that was paying the Partnership a fixed
lease rate that was 70% above freight market rates in effect at that time.  When
these two vessels went on voyage charter during the year of 1999, lease revenues
decreased $1.1 million due to a decline in the comparative lease rates.

Direct  expenses  from the two marine  vessels  purchased  during  1999 and 1998
increased $1.1 million,  while the existing marine vessels saw a decline of $0.3
million in repairs and maintenance due to fewer required repairs.

The  September 30, 1999  Amendment  which  changed the  accounting  treatment of
majority-held  equipment  from the  consolidation  method of  accounting  to the
equity method of accounting  affected the lease revenues and direct  expenses of
one marine vessel.  Lease revenues for the  Partnership's  majority-held  marine
vessel decreased $2.0 million for the year ended December 31, 1999 when compared
to the same period of 1998.  The decline in lease  revenues of $1.3  million was
caused by a decline in lease rates and the decline of $0.7 million was caused by
the Amendment. Direct expenses for the Partnership's majority-held marine vessel
also decreased $0.6 million due to the Amendment.

Marine containers: Marine container lease revenues and direct expenses were $2.3
million and $-0-,  respectively,  for the year ended December 31, 1999, compared
to $0.9 million and $13,000,  respectively,  during the same period of 1998. The
increase in marine container lease revenues of $1.4 million was primarily due to
the  purchase of a  portfolio  of marine  containers  during 1999 and the fourth
quarter of 1998,  and an increase in marine  container  utilization.  The marine
containers  purchased during 1998 were on-lease the entire year of 1999 compared
to only one month of 1998.

Trailers:  Trailer lease revenues and direct expenses were $2.8 million and $0.8
million,  respectively,  for the year ended December 31, 1999,  compared to $3.3
million and $0.8 million,  respectively,  during the same period of 1998. During
1999,  certain dry  trailers  transitioned  to a new  PLM-affiliated  short-term
rental facility  specializing in this type of trailer causing lease revenues for
this group of trailers to decrease $0.1 million  during the year ended  December
31, 1999 when  compared to the same period of 1998.  In addition,  the number of
trailers owned by the Partnership declined during 1999 and 1998 due to sales and
dispositions.  The  result  of this  declining  fleet  has  been a  decrease  of
approximately $0.4 million in trailer contribution.

(b)  Indirect Expenses Related to Owned Equipment Operations

Total  indirect  expenses of $26.5 million for the year ended  December 31, 1999
decreased from $30.9 million for the same period in 1998.  Significant variances
are explained as follows:

     (i) A $4.1 million decrease in depreciation and amortization  expenses from
1998 levels reflects the decrease of $5.9 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 $2.2  million due to the sale of
certain  equipment  during 1999 and 1998,  and a decrease  of $0.8  million as a
result the  Amendment.  These  decreases  were offset in part, by an increase of
$4.8  million in  depreciation  and  amortization  expenses  resulting  from the
purchase of additional equipment during 1999.

     (ii)Loss on revaluation of marine vessels and marine  containers  decreased
$0.7 million  during the year ended  December 31, 1999 when compared to the same
period of 1998.  During 1999, a loss on revaluation of $3.6 million was recorded
for marine  vessels  compared to $4.1 million  during the same period of 1998. A
loss on  revaluation  of $-0-  during  1999 and  $0.2  million  during  1998 was
recorded for marine containers.

     (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, 1999 when
compared to the same period of 1998.

     (iv)A $0.1  million  decrease in  administrative  expenses was due to lower
costs for professional  services needed to collect past due receivables due from
certain nonperforming lessees.

     (v) A $0.7 million  increase in the  provision  for bad debts  reflects the
General  Partner's  evaluation of the  collectibility  of  receivables  due from
certain lessees.

(c)   Net Gain on Disposition of Owned Equipment

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.  In  addition,  the  Partnership  also sold a
commercial  aircraft  with a net book value of $15.6  million for $40.1  million
which  includes  $3.6  million of unused  engine  reserves.  The net gain on the
disposition of owned equipment for the year ended December 31, 1998 totaled $6.3
million,  and  resulted  from the sale of a  commercial  aircraft,  an  aircraft
engine, marine containers,  trailers,  and railcars,  with an aggregate net book
value of $6.1 million,  for $12.4 million which  included $1.4 million of unused
engine reserves.

(d)  Minority interests

Minority  interests  increased  $7.7  million  in  1999  when  compared  to 1998
primarily  due to the  $24.4  million  gain  on the  sale  of the  Partnership's
aircraft  of which  the  minority's  share of the  gain  was $8.8  million.  The
increase caused by the sale was offset in part, by a decrease of $2.2 million in
the minority's  share of lease  revenues,  and a decrease of $1.1 million in the
minority's share of direct and indirect  expenses during the year ended December
31,  1999  when  compared  to the same  period  of 1998,  as it  relates  to the
minority's percentage of ownership in these interests.


<PAGE>


(e)  Interest and other income

Interest and other income  decreased  $0.5 million in 1999 due to lower  average
cash  balances  available  for  investments  when compared to the same period of
1998.

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

Net income (loss) generated from the operation of jointly-owned assets accounted
for under the equity  method is shown in the following  table by equipment  type
(in thousands of dollars):

                                                           For the Years
                                                        Ended December 31,
                                                      1999             1998
                                                   ----------------------------
  Mobile offshore drilling unit                    $     271       $     243
  Marine containers                                        5             (20)
  Aircraft                                              (250)          7,841
  Marine vessels                                      (1,029)         (1,599)
                                                   ------------    ------------
      Equity in net income (loss) of USPEs         $  (1,003)      $   6,465
                                                   ============    ============

Mobile  offshore  drilling  unit:  During 1999 and as of December 31, 1998,  the
Partnership owned an interest in an entity that owned a mobile offshore drilling
unit.  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.  During the same period of 1998,  lease  revenues of $1.2  million were
offset by depreciation expense,  direct expenses, and administrative expenses of
$1.0 million.  Direct expenses from this equipment decreased $0.3 million during
1999,  when  compared  to the same  period  of 1998,  due to lower  depreciation
expense  caused by the  double-declining  balance  method of  depreciation.  The
double-declining  balance method of depreciation results in greater depreciation
in the first years an asset is owned.

Marine  containers:  As of December 31, 1999 and 1998, the Partnership  owned an
interest  in an entity  that  owns  marine  containers.  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.  During
the same period of 1998,  revenues of $0.1 million  were offset by  depreciation
expense,  direct  expenses,  and  administrative  expenses of $0.1 million.  The
Partnership  purchased the interest in this entity during  September  1998.  The
year  ended  December  31,  1999  represents  a full  year  of  lease  revenues,
depreciation expense, direct expenses, and administrative expenses when compared
to four months of revenues and expenses during the same period of 1998.

Aircraft:  As of December 31,  1999,  the  Partnership  owned an interest in two
commercial  aircraft  on a direct  finance  lease  and an  interest  in a Boeing
737-300 commercial  aircraft.  As of December 31, 1998, the Partnership owned an
interest in two commercial  aircraft on a direct finance lease.  During the year
ended  December 31, 1999,  revenues of $0.7 million were offset by  depreciation
expense,  direct expenses, and administrative  expenses of $1.0 million.  During
the same period of 1998,  revenues of $1.8  million and the gain of $6.9 million
from the sale of an interest in a trust that held four commercial aircraft, were
offset by depreciation expense,  direct expenses, and administrative expenses of
$0.8  million.  The decrease in revenues of $1.0  million  during the year ended
December  31, 1999,  was due to the sale of the  Partnership's  investment  in a
trust owning four commercial aircraft during 1998. The Partnership's  investment
in a trust  owning a Boeing  737-300  during  1999 did not  generate  any  lease
revenues. The increase of $0.2 million in depreciation expense, direct expenses,
and  administrative  expenses  was caused by the  purchase  of an  interest in a
Boeing 737-300 during 1999.

Marine vessels:  As of December 31, 1999, the  Partnership  owned an interest in
entities that own a total of three marine vessels.  As of December 31, 1998, the
Partnership  owned an  interest  in  entities  that  own a total  of two  marine
vessels.  During the year ended December 31, 1999, revenues of $1.6 million were
offset by depreciation expense,  direct expenses, and administrative expenses of
$2.7  million.  During the same period of 1998,  revenues of $1.5  million  were
offset by depreciation expense,  direct expenses, and administrative expenses of
$2.1 million and a loss on the revaluation of a marine vessel of $1.0 million.

The  increase  in  lease  revenues  of $0.1  million  was  primarily  due to the
September  30,  1999  Amendment  which  changed  the  accounting   treatment  of
majority-held  equipment  from the  consolidation  method of  accounting  to the
equity method of accounting  affected the lease revenues and direct  expenses of
one marine  vessel.  The Amendment  that caused lease  revenues to increase $0.4
million for a marine  vessel was offset in part,  by a decrease of $0.2  million
earned on the two other marine vessels due to lower lease rates.

The  increase in  depreciation  expense,  direct  expenses,  and  administrative
expenses of $0.6 million was primarily due to the September 30, 1999  Amendment.
The Amendment caused depreciation expense,  direct expenses,  and administrative
expenses to increase $1.0 million for one marine  vessel.  The increase in these
expenses  was  offset  in  part,   by  a  decrease  of  $0.3  million  from  the
double-declining  balance  method  of  depreciation  which  results  in  greater
depreciation  in the first years an asset is owned.  Repairs and  maintenance to
the marine  vessels also  decreased  $0.1 million during the year ended December
31, 1999,  due to fewer  repairs  required  when  compared to the same period of
1998.

Additionally,  there was no loss on the  revaluation of marine vessels  required
during the year ended December 31, 1999.

(g)  Net Income

As a result of the foregoing,  the  Partnership's  net income for the year ended
December  31,  1999 was $6.0  million,  compared  to net income of $1.4  million
during  the same  period of 1998.  The  Partnership's  ability to  operate,  and
liquidate assets,  secure leases,  and re-lease those assets whose leases expire
is subject to many factors, and the Partnership's  performance in the year ended
December 31, 1999 is not necessarily  indicative of future periods.  In the year
ended  December 31,  1999,  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 U.S. 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 U.S. 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 U.S.- domiciled lessees consists
of aircraft,  trailers and railcars.  During 2000, U.S. lease revenues accounted
for 31% of the total lease  revenues  of wholly and  partially  owned  equipment
while this region  reported net income of $3.5 million  including a gain of $1.8
million from the sale of 49% of the Partnership's trailers.

The  Partnership's  owned  equipment  on  lease  to  Canadian-domiciled  lessees
consists of railcars.  During 2000,  Canadian lease revenues accounted for 9% of
the total lease  revenues of wholly and partially  owned  equipment,  while this
region reported net income of $0.9 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  partially
owned equipment, while this region reported net income of $0.1 million.

The  Partnership's  investment in equipment owned by a USPE on lease to a lessee
domiciled in Iceland  consists of an  aircraft.  During  2000,  Icelandic  lease
revenues  accounted  for 4% of the total lease  revenues of wholly and partially
owned equipment while this region reported net loss of $2.1 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,  repairs and maintenance to the aircraft during 2000, and the aircraft
being off-lease for the first six months of 2000.

The  Partnership's  owned  equipment  that was on lease to lessees  domiciled in
India consists of aircraft. No lease revenues were reported in this region while
this region  reported net loss of $0.5 million.  The primary reason for the loss
was due to the $0.4 million loss recorded on the revaluation of this aircraft to
it's estimated carrying value.

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 2000, lease revenues from these operations accounted for 55%
of the total  lease  revenues of wholly and  partially  owned  equipment,  while
reporting net income from these operations of $0.7 million.

(F)  Inflation

Inflation had no significant impact on the Partnership's operations during 2000,
1999, or 1998.

(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

Since the  Partnership  is in its  holding or  passive  liquidation  phase,  the
General  Partner will be seeking to  selectively  re-lease or sell assets as the
existing leases expire.  Sale decisions will cause the operating  performance of
the Partnership to decline over the remainder of its life.

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.

The  Partnership  intends  to use cash  flow  from  operations  to  satisfy  its
operating  requirements,  pay  principal  and  interest  on  debt,  and pay cash
distributions to the partners.


<PAGE>


Other factors affecting the Partnership's  contribution during the year 2001 and
beyond include:

(i) Railcar  loadings in North  America  have  continued  to be high,  however a
softening in the market has led to lower  utilization and lower  contribution to
the Partnership 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.
Recently,  the cost of marine containers have started to increase which, if this
trend continues, should translate into rising per diem lease rates.

(iii) Marine vessel  bulk-carrier  freight rates are dependent  upon the overall
condition  of the  international  economy.  Three  of the  Partnership's  marine
vessels have leases that will expire  during 2001.  Freight  rates earned by the
Partnership's  other marine  vessel  began to increase  during the later half of
2000 and, in the absence of new additional orders, would be expected to continue
to show improvement and stabilize over the next one to two years.

Several other factors may affect the Partnership's  operating performance in the
year 2001 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 Risk

Certain  portions of the  Partnership's  aircraft,  railcar,  marine  container,
marine  vessel,  and trailer  portfolios  will be remarketed in 2001 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.

(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 U.S. 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.  Under U.S.
Federal Aviation Regulations,  after December 31, 1999, no person may operate an
aircraft to or from any airport in the contiguous  U.S. unless that aircraft has
been shown to comply with Stage III noise levels. The Partnership has a Stage II
aircraft  that does not meet Stage III  requirements.  This Stage II aircraft is
scheduled  to be sold.  Furthermore,  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 a tank railcar for service.
The average cost of this inspection is $1,800 for non-jacketed tank railcars and
$3,600 for 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 315 non-jacketed tank railcars
and 231 jacketed  tank  railcars of which a total of 29 tank  railcars have been
inspected with no reportable defects.

(I)  Distribution Levels

Pursuant  to  the  limited  partnership   agreement,   the  Partnership  stopped
reinvesting in additional  equipment beginning in its seventh year of operation,
which  commenced  on January 1, 2000.  The General  Partner  intends to pursue a
strategy of selectively  re-leasing equipment to achieve competitive returns, or
selling   equipment  that  is   underperforming   or  whose  operation   becomes
prohibitively  expensive,  in the period prior to the final  liquidation  of the
Partnership.  During this time, the Partnership will use operating cash flow and
proceeds from the sale of equipment to meet its operating  obligations  and make
distributions to the partners.  Although the General Partner intends to maintain
a  sustainable  level  of  distributions  prior  to  final  liquidation  of  the
Partnership, actual Partnership performance and other considerations may require
adjustments to then-existing  distribution  levels.  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 General Partner will evaluate the level of distributions the Partnership can
sustain over extended periods of time and,  together with other  considerations,
may  adjust  the  level of  distributions  accordingly.  In the long  term,  the
difficulty in predicting  market  conditions  precludes the General Partner from
accurately  determining the impact of changing market conditions on liquidity or
distribution levels.

The  Partnership's  permanent debt obligation begins to mature in November 2001.
The General Partner  believes that sufficient cash flow will be available in the
future for repayment of debt.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Partnership's  primary market risk exposure is that of currency  devaluation
risk.  During 2000, 69% of the  Partnership's  total lease revenues from wholly-
and  partially-owned  equipment came from non-United  States domiciled  lessees.
Most of the  Partnership's  leases  require  payment  in  United  States  (U.S.)
currency.  If these  lessees  currency  devalues  against the U.S.  dollar,  the
lessees  could  potentially  encounter  difficulty  in  making  the U.S.  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

None.










                      (This space intentionally left blank)


<PAGE>


                                    PART III

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

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

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

Stephen M. Bess     55    President, PLM Financial Services, Inc.,
                          PLM Investment Management, Inc. and
                          PLM Transportation Equipment Corporation,
                          Director of PLM Financial Services, Inc.

Richard K Brock     38    Vice President and Chief Financial Officer,
                          PLM Financial Services, Inc.,
                          PLM Investment Management, Inc. and
                          PLM Transportation Equipment Corporation,
                          Director of PLM Financial Services, Inc.

Susan C. Santo      38    Vice President, Secretary, and General Counsel,
                          PLM Financial Services, Inc.,
                          Director of PLM Financial Services, Inc.

Stephen M. Bess was appointed a Director of PLM Financial Services, Inc. in July
1997.  Mr. Bess has served as President of PLM Investment  Management,  Inc., an
indirect wholly owned subsidiary of PLM International, since August 1989, and as
an executive  officer of certain other of PLM  International's  subsidiaries  or
affiliates since 1982.

Richard K Brock was  appointed a Director  of PLM  Financial  Services,  Inc. in
October 1, 2000. Mr. Brock was appointed as Vice  President and Chief  Financial
Officer of PLM International and PLM Financial  Services,  Inc. in January 2000,
having  served as Acting  Chief  Financial  Officer  since June 1999 and as Vice
President  and  Corporate  Controller  of PLM  International  and PLM  Financial
Services,  Inc.  since June 1997.  Prior to June 1997,  Mr.  Brock  served as an
accounting  manager  beginning in September 1991 and as Director of Planning and
General Accounting beginning in February 1994.

Susan C. Santo was  appointed  a Director of PLM  Financial  Services,  Inc.,  a
subsidiary of PLM International,  in October 1, 2000. Ms. Santo was appointed as
Vice  President,  Secretary,  and General Counsel of PLM  International  and PLM
Financial Services, Inc. in November 1997. She has worked as an attorney for PLM
International  and PLM  Financial  Services,  Inc.  since 1990 and served as its
Senior Attorney from 1994 until her appointment as General Counsel.

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, 2000.


<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),  cash
           available  for  distributions,  and net  disposition  proceeds of the
           Partnership.  As of December 31,  2000,  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,
           2000.

ITEM 13.   CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS


     (A) Transactions with Management and Others

           During 2000,  the  Partnership  paid or accrued the following fees to
           FSI  or  its   affiliates:   management   fees,   $1.0   million  and
           administrative  and data processing  services  performed on behalf of
           the Partnership, $0.7 million.

           During 2000,  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, $46,000.










                      (This space intentionally left blank)



<PAGE>


                                     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. Canadian Air Trust #3
               b. Spear Partnership
               c. Boeing 737-200 Trust S/N 24700

     (B) Financial Statement Schedules

              Schedule II Valuation 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.

     (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.

     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.

     24.   Powers of Attorney.

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

     99.1  Canadian Air Trust #3.

     99.2  Spear 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 22, 2001                      PLM EQUIPMENT GROWTH FUND VI
                                           PARTNERSHIP

                                           By:      PLM Financial Services, Inc.
                                                    General Partner


                                           By:      /s/Stephen M. Bess
                                           -----------------------------------
                                                    Stephen M. Bess
                                                    President and Director


                                           By:      /s/ Richard K Brock
                                           -----------------------------------
                                                    Richard K Brock
                                                    Vice President and
                                                    Chief Financial 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
----                                 --------                  ----

*_______________________
Stephen M. Bess                      Director, FSI             March 22, 2001



*_______________________
Richard K Brock                      Director, FSI             March 22, 2001



*_______________________
Susan C. Santo                       Director, FSI             March 22, 2001


*Susan C. Santo,  by signing her name hereto,  does sign this document on behalf
of the persons  indicated  above pursuant to powers of attorney duly executed by
such persons and filed with the Securities and Exchange Commission.


/s/ Susan C. Santo
--------------------------------
Susan C. Santo
Attorney-in-Fact


<PAGE>


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

                                  (Item 14(a))


                                                                           PAGE
                                                                           ----

Independent auditors' report                                                31

Balance sheets as of December 31, 2000 and 1999                             32

Statements of income for the years ended
     December 31, 2000, 1999, and 1998                                      33

Statements of changes in partners' capital for the
     years ended December 31, 2000, 1999, and 1998                          34

Statements of cash flows for the years ended
     December 31, 2000, 1999, and 1998                                      35

Notes to financial statements                                             36-49

Independent auditors' report on financial statement schedule                50

Schedule II Valuation Accounts                                              51





<PAGE>


                          INDEPENDENT AUDITORS' REPORT



The Partners
PLM Equipment Growth Fund VI:


We have audited the  accompanying  financial  statements of PLM Equipment Growth
Fund VI (the  Partnership),  as listed in the  accompanying  index to  financial
statements.   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 have  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 1999,  and the results of its  operations  and its cash
flows for each of the years in the three-year  period ended December 31, 2000 in
conformity with accounting principles generally accepted in the United States of
America.






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>

                                                                                       2000                 1999
                                                                                  -----------------------------------
 <S>                                                                               <C>                  <C>
 ASSETS

  Equipment held for operating leases                                             $     67,292         $     85,318
  Less accumulated depreciation                                                        (36,829)             (39,250)
                                                                                  -----------------------------------
                                                                                        30,463               46,068
  Equipment held for sale                                                                1,042                   --
                                                                                  -----------------------------------
    Net equipment                                                                       31,505               46,068

  Cash and cash equivalents                                                              9,226                2,669
  Accounts receivable, less allowance for doubtful accounts of
      $402 in 2000 and $2,416 in 1999                                                    1,979                1,397
  Investments in unconsolidated special-purpose entities                                21,106               27,736
  Lease negotiation fees to affiliate, less accumulated
      amortization of $178 in 2000 and $175 in 1999                                         56                  156
  Debt issuance costs, less accumulated amortization
      of $106 in 2000 and $91 in 1999                                                       46                   61
  Debt placement fees to affiliate, less accumulated
      amortization of $104 in 2000 and $89 in 1999                                          44                   59
  Prepaid expenses and other assets                                                        101                   58
                                                                                  -----------------------------------

        Total assets                                                              $     64,063         $     78,204
                                                                                  ===================================

  Liabilities and partners' capital

  Liabilities
  Accounts payable and accrued expenses                                           $      1,171         $      2,106
  Due to affiliates                                                                        821                  342
  Lessee deposits and reserve for repairs                                                  449                  735
  Note payable                                                                          30,000               30,000
                                                                                  -----------------------------------
    Total liabilities                                                                   32,441               33,183
                                                                                  -----------------------------------

  Partners' capital
  Limited partners (limited partnership units of 8,189,465 and
        8,191,718 as of December 31, 2000 and 1999, respectively)                       31,622               45,021
  General Partner                                                                           --                   --
                                                                                  -----------------------------------
    Total partners' capital                                                             31,622               45,021
                                                                                  -----------------------------------

        Total liabilities and partners' capital                                   $     64,063         $     78,204
                                                                                  ===================================
</TABLE>










                 See accompanying notes to financial statements.

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

                                                                     2000             1999             1998
                                                                ------------------------------------------------

<S>                                                             <C>               <C>              <C>
REVENUES

  Lease revenue                                                 $     17,526      $    23,988      $   28,122
  Interest and other income                                              253              270             765
  Net gain on disposition of equipment                                 2,147           25,951           6,253
                                                                ------------------------------------------------
    Total revenues                                                    19,926           50,209          35,140
                                                                ------------------------------------------------

  EXPENSES

  Depreciation and amortization                                        8,927           17,001          21,085
  Repairs and maintenance                                              1,956            4,183           5,114
  Equipment operating expenses                                         2,034            3,974           3,507
  Insurance expense to affiliate                                          --               --            (231)
  Other insurance expenses                                               195              642             605
  Management fees to affiliate                                           963            1,261           1,538
  Interest expense                                                     2,029            2,108           2,061
  General and administrative expenses
      to affiliates                                                      659              850           1,007
  Other general and administrative expenses                            1,193            1,084           1,046
  Loss on revaluation of equipment                                       374            3,567           4,276
  (Recovery of) provision for bad debts                                 (720)             591             (75)
                                                                ------------------------------------------------
      Total expenses                                                  17,610           35,261          39,933
                                                                ------------------------------------------------

  Minority interests                                                      --           (7,949)           (227)

  Equity in net income (loss) of unconsolidated
      special-purpose entities                                        (1,904)          (1,003)          6,465
                                                                ------------------------------------------------
        Net income                                              $        412      $     5,996      $    1,445
                                                                ================================================

  Partners' share of net income (loss)

  Limited partners                                              $       (278)     $     5,305      $      666
  General Partner                                                        690              691             779
                                                                ------------------------------------------------

  Total                                                         $        412      $     5,996      $    1,445
                                                                ================================================

  Limited partner's net income (loss) per
      weighted-average limited partnership unit                 $      (0.03)     $      0.65      $     0.08
                                                                ================================================

  Cash distribution                                             $     13,794      $    13,806      $   15,226
                                                                ================================================

  Cash distribution per weighted-average
      limited partnership unit                                  $       1.60      $      1.60      $     1.76
                                                                ================================================

</TABLE>



                 See accompanying notes to financial statements.

                          PLM EQUIPMENT GROWTH FUND VI
                             (A Limited Partnership)
                   STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
              For the Years Ended December 31, 2000, 1999, and 1998
                            (in thousands of dollars)

<TABLE>
<CAPTION>

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

  <S>                                                  <C>                 <C>                <C>
    Partners' capital as of December 31, 1997          $     67,152        $        --        $    67,152

  Net income                                                    666                779              1,445

  Purchase of limited partnership units                        (417)                --               (417)

  Cash distribution                                         (14,447)              (779)           (15,226)
                                                       -----------------------------------------------------

    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
                                                       =====================================================
</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>


                                                                                   2000          1999           1998
                                                                                -----------------------------------------
<S>                                                                             <C>           <C>           <C>
OPERATING ACTIVITIES
 Net income                                                                     $     412     $   5,996     $    1,445
 Adjustments to reconcile net income
     to net cash provided by (used in) operating activities:
   Depreciation and amortization                                                    8,927        17,001         21,085
   Loss on revaluation of equipment                                                   373         3,567          4,276
   Net gain on disposition of equipment                                            (2,147)      (25,951)        (6,253)
   Equity in net (income) loss from unconsolidated special-purpose
     entities                                                                       1,904         1,003         (6,465)
   Changes in operating assets and liabilities:
     Accounts receivable, net                                                        (578)        3,237         (1,316)
     Prepaid expenses and other assets                                                (43)          (79)            91
     Accounts payable and accrued expenses                                            (49)           85            283
     Due to affiliates                                                                479           (70)          (430)
     Lessee deposits and reserve for repairs                                           59        (1,232)           863
     Minority interests                                                                --         1,268         (2,099)
                                                                                -----------------------------------------
       Net cash provided by operating activities                                    9,337         4,825         11,480
                                                                                -----------------------------------------

 Investing activities
 Payments for purchase of equipment and capitalized repairs                          (955)      (42,883)       (31,739)
 Investments in and equipment purchased and placed in
    unconsolidated special-purpose entities                                            --          (147)        (3,778)
 Distribution from unconsolidated special-purpose entities                          2,760         2,318          3,425
 Distribution from liquidation of unconsolidated special-purpose
     entities                                                                          88         3,504         16,679
 Payments of acquisition fees to affiliate                                             --          (825)        (1,486)
 Payments for equipment acquisition deposits                                           --            --           (668)
 Principal payments received on direct finance lease                                   --            60            102
 Payments of lease negotiation fees to affiliate                                       --           (67)          (330)
 Proceeds from disposition of equipment                                             9,138        45,839         10,936
                                                                                -----------------------------------------
       Net cash provided by (used in) investing activities                         11,031         7,799         (6,859)
                                                                                -----------------------------------------

 Financing activities
 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                                       (13,104)      (13,115)       (14,447)
 Cash distribution paid to General Partner                                           (690)         (691)          (779)
 Purchase of limited partnership units                                                (17)         (123)          (417)
                                                                                -----------------------------------------
       Net cash used in financing activities                                      (13,811)      (13,929)       (15,643)
                                                                                -----------------------------------------

 Net increase (decrease) in cash and cash equivalents                               6,557        (1,305)       (11,022)
 Cash and cash equivalents at beginning of year                                     2,669         3,974         14,996
                                                                                -----------------------------------------
 Cash and cash equivalents at end of year                                       $   9,226     $   2,669     $    3,974
                                                                                =========================================

 Supplemental information
 Interest paid                                                                  $   2,029     $   2,108     $    2,018
                                                                                =========================================
 Noncash transfer of equipment at net book value from
   unconsolidated special-purpose entities                                      $   1,878     $      --     $       --
                                                                                =========================================
</TABLE>


                 See accompanying notes to financial statements.

                          PLM EQUIPMENT GROWTH FUND VI
                             (A Limited Partnership)
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 2000

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).

Beginning in the  Partnership's  seventh year of operations,  which commenced on
January 1, 2000, the General Partner stopped  reinvesting  excess cash.  Surplus
cash, less reasonable reserves,  will be distributed to the Partners.  Beginning
in the  Partnership's  ninth year of operations,  which  commences on January 1,
2002,  the  General  Partner  intends  to begin an  orderly  liquidation  of the
Partnership's  assets.  The  Partnership  will  terminate  on December 31, 2011,
unless terminated earlier upon sale of all equipment or by certain other events.

FSI  manages  the  affairs  of  the  Partnership.   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.  The
General  Partner is also entitled to receive a subordinated  incentive fee after
the  limited  partners  receive a minimum  return  on,  and a return  of,  their
invested capital.

The General  Partner has determined  that it will not adopt a reinvestment  plan
for the  Partnership.  Beginning  November 24, 1995, if the number of units made
available  for  purchase by limited  partners in any  calendar  year exceeds the
number  that  can  be  purchased  with  reinvestment  plan  proceeds,  then  the
Partnership may redeem up to 2% of the outstanding  units each year,  subject to
certain  terms  and  conditions.  The  purchase  price  to  be  offered  by  the
Partnership for these units will be equal to 110% of the  unrecovered  principal
attributable to the units. The unrecovered  principal for any unit will be equal
to the excess of (i) the capital contribution attributable to the unit over (ii)
the distributions  from any source paid with respect to the units. For the years
ended December 31, 2000, 1999, and 1998, the Partnership had repurchased  2,253,
14,621, and 40,925 limited partnership units for $17,000, $0.1 million, and $0.4
million, respectively.

The General  Partner has decided  that it will not  purchase any units under the
redemption  plan in 2001. The General Partner may purchase  additional  units on
behalf of the Partnership in the future.

These financial statements have been prepared on the accrual basis of accounting
in accordance  with  generally  accepted  accounting  principles.  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
transportation  equipment  under  agreements  with investor  programs,  and is a
general partner of other programs.

ACCOUNTING FOR LEASES

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.


<PAGE>


                          PLM EQUIPMENT GROWTH FUND VI
                             (A Limited Partnership)
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 2000

1.   BASIS OF PRESENTATION (CONTINUED)

ACCOUNTING FOR LEASES (CONTINUED)

Rental  payments  are  recorded  as  revenue  over the  lease  term as earned in
accordance with Statement of Financial  Accounting Standards No. 13, "Accounting
for Leases" (SFAS 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 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 is
changed  to  straight   line  when  annual   depreciation   expense   using  the
straight-line  method exceeds that  calculated by the  double-declining  balance
method.   Acquisition  fees  and  certain  other  acquisition  costs  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 (see Note 7).

TRANSPORTATION EQUIPMENT

In accordance with the Financial Accounting Standards Board's Statement No. 121,
"Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to
Be Disposed Of" (SFAS 121),  the General  Partner  reviews the carrying value of
the  Partnership's  equipment at least  quarterly,  and  whenever  circumstances
indicate that the carrying  value of an asset may not be recoverable in relation
to  expected   future   market   conditions,   for  the  purpose  of   assessing
recoverability of the recorded amounts.  If projected  undiscounted  future 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.  Reductions of $0.4
million and $3.6 million to the carrying value of owned  equipment were required
during 2000 and 1999, respectively.  Reductions of $4.3 million and $1.0 million
to the  carrying  value  of  owned  equipment  and  partially  owned  equipment,
respectively, were required during 1998.

Equipment held for operating leases is stated at cost less any reductions to the
carrying value as required by SFAS 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.

INVESTMENTS IN UNCONSOLIDATED SPECIAL-PURPOSE ENTITIES

The Partnership has interests in unconsolidated special-purpose entities (USPEs)
that own  transportation  equipment.  As of  December  31,  2000 and  1999,  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
interest in USPEs are managed by IMI. The Partnership's equity interest


<PAGE>


                          PLM EQUIPMENT GROWTH FUND VI
                             (A Limited Partnership)
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 2000

1.   BASIS OF PRESENTATION (CONTINUED)

INVESTMENTS IN UNCONSOLIDATED SPECIAL-PURPOSE ENTITIES (CONTINUED)

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

Repair and maintenance costs related to marine vessels,  railcars,  and trailers
are usually the obligation of the Partnership and are accrued as incurred. Costs
associated with marine vessel dry-docking are estimated and accrued ratably over
the period prior to such dry-docking.  If a marine vessel is sold and there is a
balance in the dry-docking  reserve account for that marine vessel,  the balance
in the reserve  account is included as additional  sales  proceeds.  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  has the  obligation  to fund  and  accrue  the  difference.  If the
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
sales  proceeds.  The aircraft  reserve  accounts and marine vessel  dry-docking
reserve  accounts  are  included in the  balance  sheet as lessee  deposits  and
reserve for repairs.

NET INCOME (LOSS) AND DISTRIBUTIONS PER LIMITED PARTNERSHIP UNIT

Net income is allocated to the General Partner to the extent  necessary to cause
the General  Partner's  capital account to equal zero. 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.

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 $13.1 million,  $7.8
million, and $13.8 million in 2000, 1999, and 1998, respectively, were deemed to
be a return of capital.

Cash  distributions  related to the fourth quarter of 2000 of $1.4 million,  and
1999 and 1998 of $2.0 million, were paid during the first quarter of 2001, 2000,
and 1999, respectively.

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, 2000, 1999, and 1998 was 8,189,891, 8,196,209, and 8,216,475,
respectively.



<PAGE>


                          PLM EQUIPMENT GROWTH FUND VI
                             (A Limited Partnership)
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 2000

1.   BASIS OF PRESENTATION (CONTINUED)

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.

COMPREHENSIVE INCOME

The  Partnership's  net  income is equal to  comprehensive  income for the years
ended December 31, 2000, 1999, and 1998.

RECLASSIFICATION

Certain  amounts in the 2000  financial  statements  have been  reclassified  to
conform to the 1999 and 1998 presentation.

2.   GENERAL PARTNER AND TRANSACTIONS WITH AFFILIATES

An officer of PLM  Securities  Corp.,  a wholly owned  subsidiary of the General
Partner,  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 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.  Partnership management fees payable were $0.1
million and $0.2  million as of December  31, 2000 and 1999,  respectively.  The
Partnership's  proportional  share of USPE  management  fees of $0.1 million was
payable as of December 31, 2000 and 1999. The Partnership's  proportional  share
of USPE  management  fee expense was $0.3  million  during 2000 and $0.2 million
during 1999 and 1998. The Partnership reimbursed FSI $0.7 million, $0.9 million,
and $1.0 million in 2000, 1999, and 1998, respectively,  for data processing and
administrative   expenses   directly   attributable  to  the  Partnership.   The
Partnership's  proportional  share of USPE data  processing  and  administrative
expenses reimbursed to FSI was $46,000,  $43,000,  and $0.1 million during 2000,
1999, and 1998, respectively

Transportation  Equipment  Indemnity  Company  Ltd.  (TEI),  an affiliate of the
General Partner,  which provided marine  insurance  coverage and other insurance
brokerage  services to the  Partnership  during 1998, was liquidated  during the
first  quarter of 2000.  The  Partnership's  proportional  share of USPE  marine
insurance  coverage  paid to TEI was $7,000  during 1998.  No premiums for owned
equipment or partially  owned  equipment were paid to TEI during 2000,  1999, or
1998.  A  substantial  portion  of any  amount  paid  to TEI  was  then  paid to
third-party  reinsurance  underwriters or placed in risk pools managed by TEI on
behalf of affiliated  programs and PLM  International,  which provide  threshold
coverages  on marine  vessel  loss of hire and hull and  machinery  damage.  All
pooling  arrangement  funds are either  paid out to cover  applicable  losses or
refunded pro rata by TEI.  Also,  during  1998,  the  Partnership  and the USPEs
received a $0.2  million  loss-of-hire  insurance  refund  from TEI due to lower
claims from the insured Partnership and other insured affiliated programs.

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.



<PAGE>


                          PLM EQUIPMENT GROWTH FUND VI
                             (A Limited Partnership)
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 2000

2.   GENERAL PARTNER AND TRANSACTIONS WITH AFFILIATES (CONTINUED)

The  Partnership  and USPEs  paid or  accrued  equipment  acquisition  and lease
negotiation  fees of $0.4  million  and  $1.9  million  during  1999  and  1998,
respectively,   to  FSI,  TEC,  and  WMS.  No  equipment  acquisition  or  lease
negotiation fees were accrued during 2000

The Partnership owned certain equipment in conjunction with affiliated  programs
during 2000, 1999, and 1998 (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 2000 or 1998.

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 affiliated
USPEs.  The balance due to  affiliates  as of December  31, 1999  includes  $0.2
million due to FSI and its affiliates  for management  fees and $0.2 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                2000                1999
  -----------------------------------------------------  --------------------------------
<S>                                                      <C>                 <C>
  Marine containers                                      $    25,566         $    24,691
  Aircraft, aircraft engines and components                   16,224              21,630
  Rail equipment                                              17,244              17,284
  Trailers                                                     5,258              11,713
  Marine vessels                                               3,000              10,000
                                                         ---------------------------------
                                                              67,292              85,318
  Less accumulated depreciation                              (36,829)            (39,250)
                                                         --------------------------------
                                                              30,463              46,068
  Equipment held for sale                                      1,042                  --
                                                         ---------------------------------
      Net equipment                                      $    31,505         $    46,068
                                                         =================================
</TABLE>

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  Partnership's
marine vessels are operating  either on a voyage charter or a time charter which
are usually leased for less than one year. Lease revenues for trailers operating
with  short-line  railroad  systems  are based on a  per-diem  lease in the free
running  railroad  interchange.  Lease  revenues for trailers  that  operated in
rental  yards  owned by PLM  Rental,  Inc.,  were  based  on a fixed  rate for a
specific  period  of  time,  usually  short in  duration.  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 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. During 1999,  reductions
to the carrying value of marine vessels of $3.6 million were required.

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. As of


<PAGE>


                          PLM EQUIPMENT GROWTH FUND VI
                             (A Limited Partnership)
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 2000

3.       EQUIPMENT (CONTINUED)

December 31, 1999,  all owned  equipment in the  Partnership's  portfolio was on
lease or operating  in  PLM-affiliated  short-term  trailer  rental  facilities,
except for a Boeing 737-200 Stage II commercial  aircraft and 20 railcars with a
net book value of $2.0 million.

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  1999,  the  Partnership  purchased  a marine  vessel  for $7.0  million,
including  acquisition fees of $0.3 million paid to FSI for the purchase of this
equipment.  Additionally,  the  Partnership  purchased  a  portfolio  of  marine
containers for $15.1 million of which no fees were paid to FSI. The  Partnership
has reached certain fee limitations,  per the partnership agreement, that can be
paid to FSI.

As of December 31, 2000, a 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 is subject to a pending contract for sale.

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.  During 1999,  the
Partnership  disposed  of a marine  vessel,  marine  containers,  trailers,  and
railcars,  with an aggregate net book value of $7.9  million,  for $9.3 million.
The Partnership also sold its majority  interest in a Boeing 767-200ER Stage III
commercial aircraft with a net book value of $15.6 million for proceeds of $40.1
million which includes $3.6 million of unused engine reserves.

All wholly and partially  owned equipment on lease is accounted for as operating
leases,  except for two partially owned commercial  aircraft on a finance lease.
Future minimum rentals under  noncancelable  operating leases as of December 31,
2000,  for wholly and  partially  owned  equipment  during each of the next five
years are approximately $8.4 million in 2001, $3.0 million in 2002, $1.0 million
in 2003,  $0.6  million  in  2004,  $0.5  million  in  2005,  and  $0.3  million
thereafter. Per diem and short-term rentals consisting of utilization rate lease
payments  included  in lease  revenues  amounted to $5.7  million in 2000,  $4.4
million in 1999, and $4.0 million in 1998.

4.       INVESTMENTS IN UNCONSOLIDATED SPECIAL-PURPOSE ENTITIES

The Partnership owns equipment jointly with affiliated programs.

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  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.  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, were reclassified to investments in USPEs. Accordingly, as of
December 31, 2000 and 1999, the balance sheet reflects all  investments in USPEs
on an equity basis.



<PAGE>


                          PLM EQUIPMENT GROWTH FUND VI
                             (A Limited Partnership)
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 2000

4.   INVESTMENTS IN UNCONSOLIDATED SPECIAL-PURPOSE ENTITIES (CONTINUED)

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>

                                                                                     2000             1999
                                                                                 ------------------------------

<S>  <C>                                                                         <C>              <C>
     62% interest in a trust owning a commercial stage III aircraft              $  10,316        $   12,574
     53% interest in an entity owning a product tanker                               5,467             6,482
     40% interest in a trust owning two commercial stage III aircraft
               on a direct finance lease                                             3,592             4,055
     20% interest in an entity owning a handymax dry bulk carrier                      877             1,065
     50% interest in an entity owning a container feeder vessel                        854             1,178
     25% interest in an entity owning marine containers                                 --             2,211
     Other                                                                              --               171
                                                                                -----------       -----------
         Net investments                                                         $  21,106        $   27,736
                                                                                ===========       ===========
</TABLE>

As of December 31, 2000, all jointly-owned  equipment in the Partnership's  USPE
portfolio was on lease. As of December 31, 1999, all jointly-owned  equipment in
the  Partnership's  USPE  portfolio  was on lease  except  for a Boeing  737-300
commercial aircraft with a net investment value of $12.6 million.

During 2000, the General Partner  transferred the  Partnership's  interest in an
entity that owned marine containers to owned equipment.

During 1999,  the  Partnership  purchased an interest in a trust owning a Boeing
737-300 Stage III commercial  aircraft for $14.0 million  including  acquisition
fees of $0.1 million  that were paid to FSI for the purchase of this  investment
and increased its investment in a trust owning marine containers by $0.1 million
on which no fees were paid to FSI.  The  remaining  interest in these trusts was
purchased by an affiliated program.

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

                                         2000                          1999                         1998
                                               Net                            Net                         Net
                                   Total       Interest of        Total       Interest of      Total      Interest of
                                   USPEs       Partnership        USPEs       Partnership      USPEs      Partnership

                                ---------------------------   ---------------------------   -------------------------
<S>                                <C>           <C>            <C>            <C>             <C>         <C>
            Net investments        $ 42,176      $  21,106      $  59,692      $  27,736       $ 34,801    $  14,200
            Lease revenues           10,950          4,628         10,395          3,224         12,215        3,782
            Net income (loss)        (2,460)        (1,904)          (867)        (1,003)        22,183        6,465
</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
                                December 31, 2000

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, 2000  Leasing   Leasing    Leasing   Leasing    Leasing    Other(1)    Total
     ------------------------------------   --------- ---------  --------  ---------  --------- ---------  ----------
<S>                                        <C>       <C>        <C>       <C>        <C>       <C>        <C>
     REVENUES
       Lease revenue                       $  2,778  $  4,706   $  3,625  $  2,130   $  4,287  $     --   $  17,526
       Interest income and other                 --        --         --        --         --       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
                                           =========================================================================
<FN>
(1) 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 sale proceeds from an investment
in an entity that owned a mobile offshore drilling unit.
</FN>
</TABLE>

<TABLE>
<CAPTION>

                                                      Marine    Marine
                                           Aircraft  Container   Vessel   Trailer    Railcar     All
     For the Year Ended December 31, 1999  Leasing   Leasing    Leasing   Leasing    Leasing    Other(1)    Total
     ------------------------------------  --------- ---------  --------  ---------  --------- ---------  ----------
<S>                                        <C>       <C>        <C>       <C>        <C>       <C>        <C>
     REVENUES
       Lease revenue                       $  4,481  $  2,317   $  9,849  $  2,790   $  4,551  $     --   $  23,988
       Interest income and other                 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                          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
                                           =========================================================================

     Total assets as of December 31, 1999  $ 22,940  $ 21,811   $ 17,353  $  4,208   $  8,870  $  3,022   $  78,204
                                           =========================================================================
<FN>
(1) 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 sale proceeds from an investment
in an entity that owned a mobile offshore drilling unit.
</FN>
</TABLE>







<PAGE>


                          PLM EQUIPMENT GROWTH FUND VI
                             (A Limited Partnership)
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 2000

5.   Operating Segments (continued)

<TABLE>
<CAPTION>

                                                      Marine    Marine
                                           Aircraft  Container   Vessel   Trailer    Railcar     All
     For the Year Ended December 31, 1998  Leasing   Leasing    Leasing   Leasing    Leasing    Other(1)    Total
     ------------------------------------  --------- ---------  --------  ---------  --------- ---------  -----------
<S>                                        <C>       <C>        <C>       <C>        <C>       <C>        <C>
     REVENUES
       Lease revenue                       $  9,098  $    923   $ 10,695  $  3,295   $  4,111  $     --   $ 28,122
       Interest income and other                 20        89         65        10         20       561        765
       Gain (loss) on disposition of          5,594       582         19        51         12        (5)     6,253
       equipment
                                           ------------------------------------------------------------------------
         Total revenues                      14,712     1,594     10,779     3,356      4,143       556     35,140

     COSTS AND EXPENSES
       Operations support                     1,191        12      6,055       817        857        63      8,995
       Depreciation and amortization         11,938       712      6,090     1,040      1,273        32     21,085
       Interest expense                          43        --         --        --         --     2,018      2,061
       Management fee to affiliate              453        46        535       216        288        --      1,538
       General and administrative expenses      420        30        209       604         67       723      2,053
       Loss on revaluation of equipment          --       183      4,093        --         --        --      4,276
       Provision for (recovery of) bad          (83)       --         --        22        (14)       --        (75)
     debts
                                           ------------------------------------------------------------------------
         Total costs and expenses            13,962       983     16,982     2,699      2,471     2,836     39,933
                                           ------------------------------------------------------------------------
     Minority interests                        (469)       --        242        --         --        --       (227)
     Equity in net income (loss) of USPEs     7,841       (20)    (1,599)       --         --       243      6,465
                                           ------------------------------------------------------------------------
                                           ------------------------------------------------------------------------
     Net income (loss)                     $  8,122  $    591   $ (7,560) $    657   $  1,672  $ (2,037)  $  1,445
                                           ========================================================================

     Total assets as of December 31, 1998  $ 34,704  $  9,267   $ 32,957  $  4,824   $ 10,913  $ 11,605   $ 104,270
                                           ========================================================================
<FN>
(1)Includes  interest income and costs not identifiable to a particular segment,
such as interest expense, 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.
</FN>
</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:  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.






                      (This space intentionally left blank)










<PAGE>


                          PLM EQUIPMENT GROWTH FUND VI
                             (A Limited Partnership)
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 2000

6.   Geographic Information (continued)

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                 2000         1999        1998           2000         1999        1998
       ----------------------------  -------------------------------------   -------------------------------------

<S>                                   <C>         <C>         <C>             <C>         <C>         <C>
       United States                  $   6,921   $    8,540  $    9,126      $      --   $       --  $       --
       South America                         --        1,643       5,130             --           --          --
       Canada                             1,896        1,201         988             --           --         986
       Europe                               378          378          --             --           --          --
       Iceland                               --           --          --            865           --          --
       India                                 --           60       1,260             --           --          --
       Rest of the world                  8,331       12,166      11,618          3,763        3,224       2,796
                                      -------------------------------------   -------------------------------------
                                      -------------------------------------   -------------------------------------
           Lease revenues             $  17,526   $   23,988  $   28,122       $  4,628   $    3,224  $    3,782
                                      =====================================   =====================================
</TABLE>

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                 2000         1999        1998           2000         1999        1998
       ----------------------------  -------------------------------------   -------------------------------------

<S>                                   <C>         <C>         <C>             <C>         <C>         <C>
       United States                  $   3,481   $     (312) $   (3,494)     $      --   $     (627) $       --
       South America                         --       15,719         801             36         (185)         --
       Canada                               873          370         324              7           25       7,191
       Mexico                                --           --          --            614          537         651
       Europe                                57           23          --             --           --          --
       Iceland                               --           --          --         (2,142)          --          --
       India                               (487)      (1,839)      4,980             --           --          --
       Rest of the world                  1,109       (4,205)     (5,354)          (419)        (753)     (1,377)
                                      -------------------------------------   -------------------------------------
          Regional income (loss)          5,033        9,756      (2,743)        (1,904)      (1,003)      6,465
       Administrative and other          (2,717)      (2,757)     (2,277)           --           --          --
                                      -------------------------------------   -------------------------------------
          Net income (loss)           $   2,316   $    6,999  $   (5,020)     $  (1,904)  $   (1,003) $    6,465
                                      =====================================   =====================================
</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                 2000         1999        1998           2000         1999        1998
       ----------------------------  -------------------------------------   -------------------------------------

<S>                                  <C>         <C>             <C>          <C>        <C>         <C>
       United States                 $    8,399  $   13,378   $  22,048       $     --   $   12,589  $       --
       South America                         --          --      16,834             --           --          --
       Canada                             1,876       1,873       1,889             --          156         279
       Mexico                                --          --          --          3,592        4,055       4,435
       Europe                             1,137       1,490          --             --           --          --
       Iceland                               --          --          --         10,316           --          --
       India                                 --       1,736       2,084             --           --          --
       Rest of the world                 19,051      27,591      36,647          7,198       10,936       9,486
                                     -------------------------------------   -------------------------------------
                                     -------------------------------------   -------------------------------------
                                         30,463      46,068      79,502         21,106       27,736      14,200
       Equipment held for sale            1,042          --          --             --           --          --
                                     -------------------------------------   -------------------------------------
           Net book value            $   31,505  $   46,068   $  79,502       $ 21,106   $   27,736  $   14,200
                                     =====================================   =====================================
</TABLE>


<PAGE>


                          PLM EQUIPMENT GROWTH FUND VI
                             (A Limited Partnership)
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 2000

7.   NOTE PAYABLE

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 has a final  maturity  in 2003.
Interest on the note is payable  monthly.  The note is scheduled to be repaid in
three principal  payments of $10.0 million on November 17, 2001, 2002, and 2003.
The agreement  requires 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 partially owned
equipment is used as collateral to the note.

The  General  Partner  estimates,  based on recent  transactions,  that the fair
market value of the $30.0 million fixed-rate note is $29.1 million.

The Partnership's warehouse facility, which was shared with PLM Equipment Growth
& Income Fund VII,  Professional  Lease  Management  Income Fund I, LLC, and TEC
Acquisub,  Inc., an indirect  wholly owned  subsidiary  of the General  Partner,
expired on September 30, 2000. The General Partner is currently negotiating with
a new lender for a $15.0 million warehouse credit facility with similar terms as
the facility that  expired.  The General  Partner  believes the facility will be
completed during the first half of 2001.

8.   CONCENTRATIONS OF CREDIT RISK

No single lessee  accounted for more than 10% of the  consolidated  revenues for
the owned equipment and partially owned equipment  during 2000,  1999, and 1998.
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.  In 1998,  Triton Aviation  Services,  Ltd.  purchased a
commercial  aircraft from the  Partnership  and the gain from the sale accounted
for 16% of total consolidated revenues of 1998.

As of December  31,  2000,  1999,  and 1998,  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, 2000, the financial  statement  carrying amount of assets and
liabilities  was  approximately  $34.1 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

PLM  International,  (the Company) and various of its wholly owned  subsidiaries
are  defendants  in a class  action  lawsuit  filed in January 1997 and which is
pending  in the  United  States  District  Court for the  Southern  District  of
Alabama,  Southern  Division (Civil Action No.  97-0177-BH-C)  (the court).  The
named  plaintiffs are six individuals who invested in PLM Equipment  Growth Fund
IV (Fund IV), PLM Equipment Growth Fund V (Fund V), PLM Equipment Growth Fund VI
(Fund VI), and PLM Equipment  Growth & Income Fund VII (Fund VII),  collectively
(the  Funds),  each a California  limited  partnership  for which the  Company's
wholly owned subsidiary, PLM Financial Services, Inc. (FSI), acts as the General
Partner.


<PAGE>


                          PLM EQUIPMENT GROWTH FUND VI
                             (A Limited Partnership)
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 2000

10.      CONTINGENCIES (CONTINUED)

The complaint  asserts  causes of action  against all  defendants  for fraud and
deceit,  suppression,  negligent  misrepresentation,  negligent and  intentional
breaches of fiduciary  duty,  unjust  enrichment,  conversion,  and  conspiracy.
Plaintiffs  allege 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  assert  liability  against
defendants  for improper  sales and marketing  practices,  mismanagement  of the
Funds, and concealing such mismanagement from investors in the Funds. Plaintiffs
seek unspecified compensatory damages, as well as punitive damages.

In June 1997, the Company and the affiliates who are also defendants in the Koch
action were named as defendants in another  purported  class action filed in the
San Francisco  Superior Court,  San Francisco,  California,  Case No.987062 (the
Romei  action).  The plaintiff is an investor in Fund V, and filed the complaint
on her own  behalf and on behalf of all class  members  similarly  situated  who
invested in the Funds. The complaint  alleges the same facts and the same causes
of action as in the Koch action, plus additional causes of action against all of
the defendants,  including alleged unfair and deceptive practices and violations
of  state  securities  law.  In July  1997,  defendants  filed a  petition  (the
petition) in federal district court under the Federal Arbitration Act seeking to
compel  arbitration of plaintiff's  claims.  In October 1997, the district court
denied  the  Company'  s  petition,  but in  November  1997,  agreed to hear the
Company's  motion for  reconsideration.  Prior to  reconsidering  its order, the
district court dismissed the petition pending settlement of the Romei action, as
discussed  below.  The state court action  continues  to be stayed  pending such
resolution.

In February 1999 the parties to the Koch and Romei actions  agreed to settle the
lawsuits,  with  no  admission  of  liability  by any  defendant,  and  filed  a
Stipulation  of Settlement  with the court.  The  settlement is divided into two
parts,  a  monetary  settlement  and  an  equitable  settlement.   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.  The final settlement  amount will depend on the number of claims filed
by class members,  the amount of the administrative costs incurred in connection
with the  settlement,  and the amount of attorneys' fees awarded by the court to
plaintiffs'  attorneys.  The Company will pay up to $0.3 million of the monetary
settlement,  with  the  remainder  being  funded  by an  insurance  policy.  For
settlement  purposes,  the monetary  settlement class consists of all investors,
limited partners, assignees, or unit holders who purchased or received by way of
transfer or  assignment  any units in the Funds  between May 23, 1989 and August
30, 2000. The monetary  settlement,  if approved,  will go forward regardless of
whether the equitable settlement is approved or not.

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,  (b) the extension (until December 31, 2004) of the period
during which FSI can reinvest the Funds' funds in additional  equipment,  (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; (d) a one-time repurchase by
each  of  Fund  V,  Fund  VI and  Fund  VII of up to 10% of  that  partnership's
outstanding units for 80% of net asset value per unit; and (e) the deferral of a
portion of the  management  fees paid to an  affiliate  of FSI  until,  if ever,
certain  performance  thresholds  have been met by the  Funds.  Subject to final
court  approval,  these  proposed  changes  would be made as  amendments to each
Fund's limited partnership agreement if less than 50% of the limited partners of
each Fund vote against such amendments.  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. The equitable settlement class consists of all investors,  limited
partners,  assignees  or unit  holders  who on August 30, 2000 held any units in
Fund V, Fund VI, and Fund VII, and their assigns and successors in interest.



<PAGE>


                          PLM EQUIPMENT GROWTH FUND VI
                             (A Limited Partnership)
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 2000

10.  CONTINGENCIES (CONTINUED)

The court  preliminarily  approved  the monetary and  equitable  settlements  in
August 2000, and information regarding each of the settlements was sent to class
members in September  2000. The monetary  settlement  remains subject to certain
conditions,  including  final  approval by the court  following a final fairness
hearing.  The  equitable  settlement  remains  subject  to  certain  conditions,
including judicial approval of the proposed amendments and final approval of the
equitable settlement by the court following a final fairness hearing.

A final fairness hearing was held on November 29, 2000 and the parties await the
court's  decision.  The Company continues to believe that the allegations of the
Koch and Romei actions are  completely  without merit and intends to continue to
defend this matter vigorously if the monetary settlement is not consummated.

The Company 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 of the Partnership.

11.  QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

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

                                             March             June            September         December
                                              31,               30,               30,               31,              Total
                                        -----------------------------------------------------------------------------------------
<S>                                      <C>             <C>               <C>               <C>               <C>
              Operating results:

                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>

The following is a summary of the quarterly  results of operations for the years
ended December 31, 1999 (in thousands of dollars,  except  weighted-average unit
amounts):
<TABLE>
<CAPTION>

                                            March             June            September         December
                                             31,               30,               30,               31,              Total
                                       -----------------------------------------------------------------------------------------
<S>                                     <C>             <C>               <C>               <C>               <C>
             Operating results:

               Total revenues           $       7,031   $        30,588   $         5,815   $         6,775   $        50,209
               Net income (loss)                 (871)           13,997            (2,269)           (4,861)            5,996

             Per weighted-average limited partnership unit:

                 Net income (loss)      $       (0.13)  $          1.69   $         (0.30)  $         (0.61)  $          0.65

</TABLE>


<PAGE>


                          PLM EQUIPMENT GROWTH FUND VI
                             (A Limited Partnership)
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 2000

12.  SUBSEQUENT EVENTS

Trans World Airlines  (TWA), a current lessee,  filed for bankruptcy  protection
under Chapter 11 in January  2001. As of December 31, 2000,  TWA is current with
its lease  payments.  American  Airlines (AA) has proposed an acquisition of TWA
that is being reviewed by the United States Justice Department.  Contingent upon
AA's  acquisition  of TWA, the General  Partner has accepted an offer from AA to
extend the existing leases up to 84 months at the current market monthly rate.

During February 2001, the Partnership sold a Boeing 737-200 commercial  aircraft
with a net book value of $1.0 million for $1.5  million  which was held for sale
at December 31, 2000.

In  February  2001,  PLM  International,  the  parent  of the  General  Partner,
announced that MILPI Acquisition  Corp.  (MILPI) completed its cash tender offer
for the  outstanding  common  stock of PLM  International.  To date,  MILPI  has
acquired  83%  of  the  common  shares  outstanding.  MILPI  will  complete  its
acquisition of PLM International by effecting a merger of PLM International into
MILPI under  Delaware  law. The merger is expected to be  completed  after MILPI
obtains approval of the merger by PLM International's shareholders pursuant to a
special shareholders' meeting which is expected to be held during the first half
of 2001.













                      (This space intentionally left blank)


<PAGE>



                          Independent Auditors' Report




The Partners
PLM Equipment Growth Fund VI:


Under date of March 12, 2001, we reported on the balance sheets of PLM Equipment
Growth Fund VI as of December 31, 2000 and 1999,  and the related  statements of
income,  changes in partners'  capital,  and cash flows for each of the years in
the  three-year  period ended December 31, 2000, as contained in the 2000 annual
report to  stockholders.  These financial  statements and our report thereon are
included in the annual report on Form 10-K for the year 2000. In connection with
our audits of the  aforementioned  financial  statements,  we also  audited  the
related financial  statement schedule as listed in the accompanying  index. 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.






San Francisco, CA
March 12, 2001






<PAGE>



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

                  Year Ended December 31, 2000, 1999, and 1998
                            (in thousands of dollars)

<TABLE>
<CAPTION>

                                                                  Additions
                                             Balance at          Charged to                          Balance at
                                            Beginning of          Cost and                            Close of
                                                Year               Expense           Deductions         Year
                                           ----------------    ----------------     --------------  -------------
<S>                                        <C>                <C>                   <C>             <C>
  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
                                           ======================================================================

  Year Ended December 31, 1998
       Allowance for Doubtful Accounts     $      2,524       $           --        $      (594)    $    1,930
                                           ======================================================================

</TABLE>



<PAGE>


                          PLM EQUIPMENT GROWTH FUND VI

                                INDEX OF EXHIBITS


  Exhibit                                                                   Page

    4.      Limited Partnership Agreement of Partnership.                    *

   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.

   24.      Powers of Attorney.                                            43-55

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

   99. 1    Canadian Air Trust #3.                                         56-64

   99. 2    Spear Partnership.                                             65-74

   99. 3    Boeing 737-200 Trust S/N 24700.                                75-83

--------
* Incorporated by reference. See page 28 of this report.