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UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, DC 20549-1004


Form 10-K/A


Amendment No. 1 to
Form 10-K


|   |  |                                                                                             
|-- |  | --------------------------------------------------------------------------------------------
|þ  |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934    
|  
|   |  | For the fiscal year ended December 31, 2004                                                 
|  
|or
|  
|o  |  | 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
1-143


GENERAL MOTORS CORPORATION


(Exact Name of Registrant as Specified in its Charter)


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

Registrants telephone number, including area code


(313) 556-5000


Securities registered pursuant to Section 12(b) of the
Act:


|                            |  |                                          
|--------------------------- |  | -----------------------------------------
|Title of Each Class         |  | Name of Each Exchange on Which Registered
|                            |  |                                          
|Common,
    $12/3 par value |  | New York Stock Exchange, Inc.            



| |       |                                                                                                                  
| | ----- | -----------------------------------------------------------------------------------------------------------------
| | Note: | The
    $12/3 par value common stock of the Registrant is also listed
    for trading on the following exchanges:

|                                                                                                                                                                                                                                                       |  |                                                                                                                                                                                                                               
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Chicago Stock Exchange, Inc.
    Pacific Exchange, Inc.
    Philadelphia Stock Exchange, Inc.
    Toronto Stock Exchange
    Frankfurter Wertpapierborse
    Borse Düsseldorf
    Bourse de Bruxelles
    Euronext Paris
    The London Stock Exchange |  | Chicago, Illinois
    San Francisco, California
    Philadelphia, Pennsylvania
    Toronto, Ontario, Canada
    Frankfurt am Main, Germany
    Düsseldorf, Germany
    Brussels, Belgium
    Paris, France
    London, England

þ o


o þ


þ o


S-K 10-K 10-K. þ o


12b-2


þ o o


12b-2 o þ


2 3 2 3


Documents incorporated by reference are as follows:


|                                                                                                                                                   |  |                                   |                               | 
|-------------------------------------------------------------------------------------------------------------------------------------------------- |  | --------------------------------- | ----------------------------- | 
|                                                                                                                                                   |  | Part and Item Number of Form 10-K |                              
|Document                                                                                                                                           |  | into Which Incorporated           |                              
|                                                                                                                                                   |  |                                   |                              
|General Motors Notice of Annual Meeting of Stockholders and
    Proxy Statement for the Annual Meeting of Stockholders to be
    held June 7, 2005 |  |                                   | Part III, Items 10 through 14 | 

Website Access to Companys Reports


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










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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES







EXPLANATORY NOTE


10-K 10-K/A 10-K


I-1



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TABLE OF CONTENTS



|                                                                                                      |                                                                                               |  |  |  |  |  |  | 
|----------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------- |  |  |  |  |  |  | 
|EXPLANATORY NOTE                                                                                     
|INDEX                                                                                                
|Part II                                                                                              
|                                                                                                      | ITEM 6. Selected Financial Data                                                              
|                                                                                                      | ITEM 7. Managements Discussion and Analysis of Financial Condition and Results of Operations
|RESULTS OF OPERATIONS                                                                                
|LIQUIDITY AND CAPITAL RESOURCES                                                                      
|BOOK VALUE PER SHARE                                                                                 
|EMPLOYMENT AND PAYROLLS                                                                              
|CRITICAL ACCOUNTING ESTIMATES                                                                        
|ADDITIONAL MATTERS                                                                                   
|FORWARD-LOOKING STATEMENTS                                                                           
|EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES                                                     
|MANAGEMENTS REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING (RESTATED)                          
|LIMITATIONS ON THE EFFECTIVENESS OF CONTROLS                                                         
|REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM                                              
|                                                                                                      | ITEM 8.                                                                                      
|CONSOLIDATED STATEMENTS OF INCOME                                                                    
|SUPPLEMENTAL INFORMATION TO THE CONSOLIDATED STATEMENTS OF INCOME                                    
|CONSOLIDATED BALANCE SHEETS                                                                          
|SUPPLEMENTAL INFORMATION TO THE CONSOLIDATED BALANCE SHEETS                                          
|CONSOLIDATED STATEMENTS OF CASH FLOWS                                                                
|SUPPLEMENTAL INFORMATION TO THE CONSOLIDATED STATEMENTS OF CASH FLOWS                                
|CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY For the Years Ended December 31, 2004, 2003, and 2002
|NOTES TO CONSOLIDATED FINANCIAL STATEMENTS                                                           
|NOTE 1. Significant Accounting Policies                                                              
|CONSOLIDATED STATEMENTS OF INCOME                                                                    
|CONSOLIDATED BALANCE SHEETS                                                                          
|CONSOLIDATED STATEMENTS OF CASH FLOWS                                                                
|NOTES TO CONSOLIDATED FINANCIAL STATEMENTS                                                           
|NOTE 2. Discontinued Operations                                                                      
|NOTE 3. Asset Impairments                                                                            
|NOTE 4. Investment in Nonconsolidated Affiliates                                                     
|NOTE 5. Marketable Securities                                                                        
|NOTE 6. Variable Interest Entities                                                                   
|NOTE 7. Finance Receivables and Securitizations                                                      
|NOTE 8. Inventories                                                                                  
|NOTE 9. Equipment on Operating Leases                                                                
|NOTE 10. Income Taxes                                                                                
|NOTE 11. Property -- Net                                                                             
|NOTE 12. Goodwill and Intangible Assets                                                              
|NOTE 13. Other Assets                                                                                
|NOTE 14. Accrued Expenses, Other Liabilities, and Deferred Income Taxes                              
|NOTE 15. Long-Term Debt and Loans Payable                                                            
|NOTE 16. Pensions and Other Postretirement Benefits                                                  
|NOTE 17. Commitments and Contingent Matters                                                          
|NOTE 18. Stockholders Equity                                                                        
|NOTE 19. Earnings Per Share Attributable to Common Stocks                                            
|NOTE 20. Derivative Financial Instruments and Risk Management                                        
|NOTE 21. Fair Value of Financial Instruments                                                         
|NOTE 22. Stock Incentive Plans                                                                       
|NOTE 23. Other Income                                                                                
|NOTE 24: Segment Reporting                                                                           
|NOTE 25. Subsequent Events                                                                           
|SUPPLEMENTARY INFORMATION                                                                            
|                                                                                                      | ITEM 9A. Controls and Procedures                                                             
|PART IV GENERAL MOTORS CORPORATION AND SUBSIDIARIES                                                  
|                                                                                                      | ITEM 15. Exhibits and Financial Statement Schedule                                           
|SIGNATURES                                                                                           
|Computation of Ratios of Earnings to Fixed Charges for the Years Ended 12/31/04,03 and 02            
|Consent of Independent Auditors                                                                      
|Section 302 Certification of the Chief Executive Officer                                             
|Section 302 Certification of the Chief Financial Officer                                             
|Certification of the Chief Executive Officer Pursuant to 18 U.S.C. Section 1350                      
|Certification of the Chief Financial Officer Pursuant to 18 U.S.C. Section 1350                      



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GENERAL MOTORS CORPORATION







INDEX


|           |  |                                                                                           |      |      |        | 
|---------- |  | ----------------------------------------------------------------------------------------- | ---- | ---- | ------ | 
|           |  |                                                                                           |      | Page |       
|           |  |                                                                                           |      |      |       
|           |  | Explanatory Note                                                                          |      |      | I-1    | 
|PART II   
|Item 6.    |  | Selected Financial Data                                                                   |      |      | II-1   | 
|Item 7.    |  | Managements Discussion and Analysis of Financial Condition
    and Results of Operations |      |      | II-4   | 
|Item 8.    |  | Financial Statements and Supplementary Data                                               |      |      | II-31  | 
|           |  | Consolidated Statement of Income                                                          |      |      | II-31  | 
|           |  | Consolidated Balance Sheet                                                                |      |      | II-33  | 
|           |  | Consolidated Statements of Cash Flows                                                     |      |      | II-35  | 
|           |  | Consolidated Statements of Stockholders Equity                                           |      |      | II-37  | 
|           |  | Notes to Consolidated Financial Statements                                                |      |      | II-38  | 
|Item 9A.   |  | Controls and Procedures                                                                   |      |      | II-117 | 
|PART IV   
|Item 15.   |  | Exhibits and Financial Statement Schedule                                                 |      |      | IV-1   | 
|Signatures |  |                                                                                           | IV-2 |     



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##### Table of Contents






Part II


GENERAL MOTORS CORPORATION AND SUBSIDIARIES







|        |                        
|------- | -----------------------
|ITEM 6. | Selected Financial Data

|                                                                                  |                                                                  |                                                |         |       |             |   |               |          |  |   |             |               |   |          |         |       |             |   |         |       |   |   |         |       |  
|--------------------------------------------------------------------------------- | ---------------------------------------------------------------- | ---------------------------------------------- | ------- | ----- | ----------- | - | ------------- | -------- |  | - | ----------- | ------------- | - | -------- | ------- | ----- | ----------- | - | ------- | ----- | - | - | ------- | ----- | -
|                                                                                  |                                                                  | Years Ended December 31,                       |        
|                                                                                  |                                                                  |                                                |        
|                                                                                  |                                                                  | 2004                                           |         |       | 2003        |   |               | 2002     | 
|                                                                                  |                                                                  |                                                |         |       |             |   |               |          | 
|                                                                                  |                                                                  | As Previously                                  |         |       |             |   | As Previously |          |  |   |             | As Previously |   |          |        
|                                                                                  |                                                                  | Reported                                       |         |       | Restated(1) |   |               | Reported |  |   | Restated(1) |               |   | Reported |         |       | Restated(1) |  
|                                                                                  |                                                                  |                                                |         |       |             |   |               |          |  |   |             |               |   |          |         |       |             |  
|                                                                                  |                                                                  | (Dollars in millions except per share amounts) |        
|Total net sales and revenues                                                      |                                                                  | $                                              | 193,517 |       |             | $ | 193,517       |          |  | $ | 185,837     |               |   | $        | 185,837 |       |             | $ | 177,867 |       |   | $ | 177,867 |      
|                                                                                  |                                                                  |                                                |         |       |             |   |               |          |  |   |             |               |   |          |         |       |             |  
|Income from continuing operations                                                 |                                                                  | $                                              | 2,805   |       |             | $ | 2,804         |          |  | $ | 2,862       |               |   | $        | 2,899   |       |             | $ | 1,975   |       |   | $ | 1,813   |      
|Income (loss) from discontinued operations                                        |                                                                  |                                                |        |       |             |   |              |          |  |   | (219        | )             |   |          | (219    | )     |             |   | (239    | )     |   |   | (239    | )    
|Gain from sale of discontinued operations                                         |                                                                  |                                                |        |       |             |   |              |          |  |   | 1,179       |               |   |          | 1,179   |       |             |   |        |       |   |   |        |      
|                                                                                  |                                                                  |                                                |         |       |             |   |               |          |  |   |             |               |   |          |         |       |             |  
|                                                                                  | Net income(2)                                                    |                                                | $       | 2,805 |             |   | $             | 2,804    |  |   | $           | 3,822         |   |          | $       | 3,859 |             |   | $       | 1,736 |   |   | $       | 1,574 |  
|                                                                                  |                                                                  |                                                |         |       |             |   |               |          |  |   |             |               |   |          |         |       |             |  
|$12/3
    par value common stock                                                  |                                                                  |                                                |         |       |             |   |               |          |  |   |             |               |   |          |         |       |             |   |         |       |   |   |         |      
|                                                                                  | Basic earnings per share (EPS) from continuing operations        |                                                | $       | 4.97  |             |   | $             | 4.97     |  |   | $           | 5.10          |   |          | $       | 5.17  |             |   | $       | 3.53  |   |   | $       | 3.24  |  
|                                                                                  | Basic earnings (losses) per share from discontinued operations   |                                                | $       |      |             |   | $             |         |  |   | $           | 2.14          |   |          | $       | 2.14  |             |   | $       | (0.16 | ) |   | $       | (0.16 | )
|                                                                                  | Diluted EPS from continuing operations                           |                                                | $       | 4.95  |             |   | $             | 4.94     |  |   | $           | 5.03          |   |          | $       | 5.09  |             |   | $       | 3.51  |   |   | $       | 3.23  |  
|                                                                                  | Diluted earnings (losses) per share from discontinued operations |                                                | $       |      |             |   | $             |         |  |   | $           | 2.11          |   |          | $       | 2.11  |             |   | $       | (0.16 | ) |   | $       | (0.16 | )
|                                                                                  | Cash dividends declared per share                                |                                                | $       | 2.00  |             |   | $             | 2.00     |  |   | $           | 2.00          |   |          | $       | 2.00  |             |   | $       | 2.00  |   |   | $       | 2.00  |  
|Class H common stock(3)                                                           |                                                                  |                                                |         |       |             |   |               |          |  |   |             |               |   |          |         |       |             |   |         |       |   |   |         |      
|                                                                                  | Basic earnings (losses) per share from discontinued operations   |                                                | $       |      |             |   | $             |         |  |   | $           | (0.22         | ) |          | $       | (0.22 | )           |   | $       | (0.21 | ) |   | $       | (0.21 | )
|                                                                                  | Diluted earnings (losses) per share from discontinued operations |                                                | $       |      |             |   | $             |         |  |   | $           | (0.22         | ) |          | $       | (0.22 | )           |   | $       | (0.21 | ) |   | $       | (0.21 | )
|                                                                                  | Cash dividends declared per share                                |                                                | $       |      |             |   | $             |         |  |   | $           |              |   |          | $       |      |             |   | $       |      |   |   | $       |      |  
|Total assets                                                                      |                                                                  | $                                              | 479,603 |       |             | $ | 479,921       |          |  | $ | 448,507     |               |   | $        | 448,819 |       |             | $ | 369,053 |       |   | $ | 369,346 |      
|Notes and loans payable                                                           |                                                                  | $                                              | 300,279 |       |             | $ | 300,279       |          |  | $ | 271,756     |               |   | $        | 271,756 |       |             | $ | 200,168 |       |   | $ | 200,168 |      
|GM-obligated mandatorily redeemable preferred securities of
    subsidiary trusts |                                                                  | $                                              |        |       |             | $ |              |          |  | $ |            |               |   | $        |        |       |             | $ |        |       |   | $ |        |      
|Stockholders equity                                                              |                                                                  | $                                              | 27,726  |       |             | $ | 27,360        |          |  | $ | 25,268      |               |   | $        | 24,903  |       |             | $ | 6,814   |       |   | $ | 6,412   |      

[Additional columns below]

[Continued from above table, first column(s) repeated]

|                                                                                  |                                                                  |                                                |         |       |             |   |               |          |   |   |             |       |  |   |         |       | 
|--------------------------------------------------------------------------------- | ---------------------------------------------------------------- | ---------------------------------------------- | ------- | ----- | ----------- | - | ------------- | -------- | - | - | ----------- | ----- |  | - | ------- | ----- | 
|                                                                                  |                                                                  | Years Ended December 31,                       |        
|                                                                                  |                                                                  |                                                |        
|                                                                                  |                                                                  | 2001                                           |         |       | 2000        |  
|                                                                                  |                                                                  |                                                |         |       |             |  
|                                                                                  |                                                                  | As Previously                                  |         |       |             |   | As Previously |          |   |  
|                                                                                  |                                                                  | Reported                                       |         |       | Restated(1) |   |               | Reported |   |   | Restated(1) |      
|                                                                                  |                                                                  |                                                |         |       |             |   |               |          |   |   |             |      
|                                                                                  |                                                                  | (Dollars in millions except per share amounts) |        
|Total net sales and revenues                                                      |                                                                  | $                                              | 169,051 |       |             | $ | 169,051       |          |   | $ | 173,943     |       |  | $ | 173,943 |      
|                                                                                  |                                                                  |                                                |         |       |             |   |               |          |   |   |             |      
|Income from continuing operations                                                 |                                                                  | $                                              | 1,222   |       |             | $ | 1,041         |          |   | $ | 3,639       |       |  | $ | 3,559   |      
|Income (loss) from discontinued operations                                        |                                                                  |                                                | (621    | )     |             |   | (621          | )        |   |   | 813         |       |  |   | 813     |      
|Gain from sale of discontinued operations                                         |                                                                  |                                                |        |       |             |   |              |          |   |   |            |       |  |   |        |      
|                                                                                  |                                                                  |                                                |         |       |             |   |               |          |   |   |             |      
|                                                                                  | Net income(2)                                                    |                                                | $       | 601   |             |   | $             | 420      |   |   | $           | 4,452 |  |   | $       | 4,372 | 
|                                                                                  |                                                                  |                                                |         |       |             |   |               |          |   |   |             |      
|$12/3
    par value common stock                                                  |                                                                  |                                                |         |       |             |   |               |          |   |   |             |       |  |   |         |      
|                                                                                  | Basic earnings per share (EPS) from continuing operations        |                                                | $       | 2.21  |             |   | $             | 1.89     |   |   | $           | 6.23  |  |   | $       | 6.09  | 
|                                                                                  | Basic earnings (losses) per share from discontinued operations   |                                                | $       | (0.42 | )           |   | $             | (0.42    | ) |   | $           | 0.59  |  |   | $       | 0.59  | 
|                                                                                  | Diluted EPS from continuing operations                           |                                                | $       | 2.20  |             |   | $             | 1.87     |   |   | $           | 6.12  |  |   | $       | 5.98  | 
|                                                                                  | Diluted earnings (losses) per share from discontinued operations |                                                | $       | (0.43 | )           |   | $             | (0.43    | ) |   | $           | 0.58  |  |   | $       | 0.58  | 
|                                                                                  | Cash dividends declared per share                                |                                                | $       | 2.00  |             |   | $             | 2.00     |   |   | $           | 2.00  |  |   | $       | 2.00  | 
|Class H common stock(3)                                                           |                                                                  |                                                |         |       |             |   |               |          |   |   |             |       |  |   |         |      
|                                                                                  | Basic earnings (losses) per share from discontinued operations   |                                                | $       | (0.55 | )           |   | $             | (0.55    | ) |   | $           | 0.55  |  |   | $       | 0.55  | 
|                                                                                  | Diluted earnings (losses) per share from discontinued operations |                                                | $       | (0.55 | )           |   | $             | (0.55    | ) |   | $           | 0.54  |  |   | $       | 0.54  | 
|                                                                                  | Cash dividends declared per share                                |                                                | $       |      |             |   | $             |         |   |   | $           |      |  |   | $       |      | 
|Total assets                                                                      |                                                                  | $                                              | 322,412 |       |             | $ | 322,637       |          |   | $ | 301,129     |       |  | $ | 301,303 |      
|Notes and loans payable                                                           |                                                                  | $                                              | 165,361 |       |             | $ | 165,361       |          |   | $ | 144,783     |       |  | $ | 144,783 |      
|GM-obligated mandatorily redeemable preferred securities of
    subsidiary trusts |                                                                  | $                                              |        |       |             | $ |              |          |   | $ | 139         |       |  | $ | 139     |      
|Stockholders equity                                                              |                                                                  | $                                              | 19,707  |       |             | $ | 19,467        |          |   | $ | 30,175      |       |  | $ | 30,060  |      



II-1



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | GM previously disclosed in a Current Report on
    Form 8-K dated
    November 9, 2005, that it would restate its financial
    statements to correct the accounting for credits and other lump
    sum payments from suppliers. Additionally, GM has subsequently
    chosen to restate its financial statements for errors it has
    identified in all periods presented in this filing. The effects
    of the restatement adjustments on GMs originally reported
    results of operations for the years ended December 31,
    2004, 2003, 2002, 2001, and 2000 are summarized below.

|                                      |                                           |                                   |       |     |      |   |       |      |   |   |       |     |   |      |       |      |     |   |       |     |     |  
|------------------------------------- | ----------------------------------------- | --------------------------------- | ----- | --- | ---- | - | ----- | ---- | - | - | ----- | --- | - | ---- | ----- | ---- | --- | - | ----- | --- | --- | -
|                                      |                                           | Income from Continuing Operations |      
|                                      |                                           | For the Years Ended December 31,  |      
|                                      |                                           |                                   |      
|                                      |                                           | 2004                              |       |     | 2003 |   |       | 2002 |   |   | 2001  |     |   | 2000 |      
|                                      |                                           |                                   |       |     |      |   |       |      |   |   |       |     |   |      |      
|                                      |                                           | (Dollars in millions)             |      
|As originally reported:               |                                           | $                                 | 2,805 |     |      | $ | 2,862 |      |   | $ | 1,975 |     |   | $    | 1,222 |      |     | $ | 3,639 |    
|Pre-tax adjustments for:              |                                           |                                   |       |     |      |   |       |      |   |   |       |     |   |      |       |      |     |   |       |    
|                                      | Supplier credits(a)                       |                                   |       | (26 | )    |   |       | 7    |   |   |       | (69 | ) |      |       | (405 | )   |   |       | (52 | )  
|                                      | Transactions with former subsidiary:      |                                   |       |     |      |   |       |      |   |   |       |     |   |      |       |      |     |   |       |     |    
|                                      |                                           | Settlement agreement(b)           |       |     |     |   |       |      |  |   |       |     |  |      |       |      | (55 | ) |       |     |    |  
|                                      |                                           | Contractual adjustment(c)         |       |     |     |   |       |      |  |   |       |     |  |      |       |      | 18  |   |       |     | (18 | )
|                                      | Benefit plans economic assumptions(d)     |                                   |       | 9   |      |   |       | (51  | ) |   |       | (30 | ) |      |       |     |     |   |       |    |    
|                                      | Precious metals inventory transactions(e) |                                   |       |    |      |   |       |     |   |   |       |    |   |      |       | 27   |     |   |       | (27 | )  
|                                      |                                           |                                   |       |     |      |   |       |      |   |   |       |     |   |      |      
|Total                                 |                                           |                                   | (17   | )   |      |   | (44   | )    |   |   | (99   | )   |   |      | (415  | )    |     |   | (97   | )  
|                                      | Related tax effects                       |                                   |       | 6   |      |   |       | 17   |   |   |       | 18  |   |      |       | 156  |     |   |       | 37  |    
|                                      |                                           |                                   |       |     |      |   |       |      |   |   |       |     |   |      |      
|Total of above adjustments net of tax |                                           |                                   | (11   | )   |      |   | (27   | )    |   |   | (81   | )   |   |      | (259  | )    |     |   | (60   | )  
|Other, net of tax(f)                  |                                           |                                   | 10    |     |      |   | 64    |      |   |   | (81   | )   |   |      | 78    |      |     |   | (20   | )  
|                                      |                                           |                                   |       |     |      |   |       |      |   |   |       |     |   |      |      
|As restated, see Note 1               |                                           | $                                 | 2,804 |     |      | $ | 2,899 |      |   | $ | 1,813 |     |   | $    | 1,041 |      |     | $ | 3,559 |    
|                                      |                                           |                                   |       |     |      |   |       |      |   |   |       |     |   |      |      






| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (a) | GM erroneously recorded as a reduction to cost of sales certain
    payments and credits received from suppliers prior to the
    completion of the earnings process. GM has concluded that the
    payments and credits received were associated with agreements
    for the award of future services or products or other rights and
    privileges and should be recognized when subsequently earned.
    The effect of these errors was $(26) million,
    $7 million, $(69) million, $(405) million, and
    $(52) million for the years ended December 31, 2004,
    2003, 2002, 2001, and 2000, respectively. Accordingly, after
    restatement, a deferred credit of approximately
    $548 million exists as of December 31, 2004, which
    will be recognized as a reduction of cost of sales in future
    periods.
|
| | (b) | In 2001, GM erroneously recorded, as a reduction in
    stockholders equity, a $(55) million settlement with
    Delphi Corporation (Delphi), a former subsidiary, in the form of
    a credit to be used against amounts owed by Delphi to GM in
    relation to pension, OPEB, and other employment related benefits
    of former GM employees who had transferred to Delphi. This item
    has now been recorded as a warranty expense in that period.                                                                                                                                                                                                                                                                                                                                                                     
|
| | (c) | In 2001, GM erroneously recorded $18 million of expense
    related to a contract involving Delphis Flint East,
    Michigan, plant that has now been recorded as an expense in 2000.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|
| | (d) | GM erroneously calculated the anticipated effect of cost
    reduction initiatives on its expected health-care cost trend
    rate for 2002 and, as a result, understated that rate.
    Accordingly, GMs other postretirement employee benefit
    (OPEB) expense was misstated by $9 million,
    $(51) million, and $(30) million in the years ended
    2004, 2003, and 2002, respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                

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| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (e) | In 2000, GM erroneously recognized a $27 million gain on
    disposal of precious metals inventory that has now been recorded
    as a financing transaction because GM had an obligation to
    repurchase the inventory in 2001.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|
| | (f) | For all periods covered by this filing, GM has recorded all
    other accounting adjustments it has identified that were not
    recorded in the proper period. These
    out-of-period
    adjustments were not considered material to the financial
    statements as originally reported. However, as part of the
    restatement they are being recognized in the period in which the
    underlying transactions occurred. The effect of these
    adjustments,
    net-of-tax, was
    $10 million, $64 million, $(81) million,
    $78 million, and $(20) million for the years ended
    December 31, 2004, 2003, 2002, 2001, and 2000,
    respectively. Of the $(81) million adjustment in 2002,
    $(55) million relates to engineering and facility-related
    expenses improperly recorded in years subsequent to 2002; and
    with respect to the $78 million adjustment in 2001,
    $65 million relates to the inappropriate recognition of
    postemployment benefit liabilities for employees at the Spring
    Hill, Tennessee plant.



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | On January 1, 2002, the Corporation implemented Statement
    of Financial Accounting Standards (SFAS) No. 142
    Goodwill and Other Intangible Assets, which ceased
    the amortization method of accounting for goodwill and changed
    to an impairment only approach. Accordingly, goodwill is no
    longer amortized and is tested for impairment at least annually.
    Effective January 1, 2003, the Corporation began expensing
    the fair market value of newly granted stock options and other
    stock-based compensation awards issued to employees to conform
    to SFAS No. 123, Accounting for Stock-Based
    Compensation. Effective July 1, 2003, the Corporation
    began consolidating certain variable interest entities to
    conform to FASB Interpretation No. 46, Consolidation
    of Variable Interest Entities.
|   
|(3) | Adjusted to reflect the three-for-one stock split of the GMH
    common stock, in the form of a 200% stock dividend, paid on
    June 30, 2000. Effective December 22, 2003 GM
    split-off Hughes by distributing Hughes common stock to the
    holders of GMH common stock in exchange for all outstanding
    shares of GMH common stock. Simultaneously, GM sold its 19.8%
    economic interest in Hughes to News Corporation in exchange for
    cash and News Corporation Preferred ADSs. All shares of GMH
    common stock were then cancelled. See Note 2 to the
    Consolidated Financial Statements.                                                                                                                                                                                                                                         



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|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|ITEM 7. | Managements Discussion and Analysis of Financial
    Condition and Results of Operations

10-K








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







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GENERAL MOTORS CORPORATION AND SUBSIDIARIES







RESULTS OF OPERATIONS




| |                     
| | --------------------
| | Consolidated Results

|                                    |                                          |                          |   |         |      |  |   |         |   |  |   |         |  
|----------------------------------- | ---------------------------------------- | ------------------------ | - | ------- | ---- |  | - | ------- | - |  | - | ------- | -
|                                    |                                          | Years Ended December 31, |  
|                                    |                                          |                          |  
|                                    |                                          | 2004                     |   |         | 2003 |  |   | 2002    |  
|                                    |                                          |                          |   |         |      |  |   |         |  
|                                    |                                          | (Dollars in millions)    |  
|Consolidated:                       |                                          |                          |   |         |      |  |   |         |   |  |   |        
|                                    | Total net sales and revenues             |                          | $ | 193,517 |      |  | $ | 185,837 |   |  | $ | 177,867 |  
|                                    | Income from continuing operations        |                          | $ | 2,804   |      |  | $ | 2,899   |   |  | $ | 1,813   |  
|                                    | Net income                               |                          | $ | 2,804   |      |  | $ | 3,859   |   |  | $ | 1,574   |  
|                                    | Net margin from continuing operations    |                          |   | 1.4     | %    |  |   | 1.6     | % |  |   | 1.0     | %
|Automotive and Other Operations:    |                                          |                          |   |         |      |  |   |         |   |  |   |        
|                                    | Total net sales and revenues             |                          | $ | 161,545 |      |  | $ | 155,831 |   |  | $ | 150,250 |  
|                                    | Income (loss) from continuing operations |                          | $ | (145    | )    |  | $ | 137     |   |  | $ | (65     | )
|                                    | Net income (loss)                        |                          | $ | (145    | )    |  | $ | 1,097   |   |  | $ | (304    | )
|Financing and Insurance Operations: |                                          |                          |   |         |      |  |   |         |   |  |   |        
|                                    | Total revenues                           |                          | $ | 31,972  |      |  | $ | 30,006  |   |  | $ | 27,617  |  
|                                    | Net income                               |                          | $ | 2,949   |      |  | $ | 2,762   |   |  | $ | 1,878   |  











| |   |                                                            
| | - | -----------------------------------------------------------
| |  | Record consolidated net sales and revenues;                
|
| |  | Market share increases in three of four automotive regions;
|
| |  | Record net income at GMAC;                                 
|
| |  | Record net income and market share at GMAP;                
|
| |  | Profitability at GMLAAM;                                   

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| |   |                                                                                                                                                        
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Approximately 14% actual return on assets for U.S. pension
    plans;                                                                                  
|
| |  | $9 billion contributed to pre-fund U.S. OPEB
    liabilities; and                                                                                      
|
| |  | Termination of the Master Agreement (including the Put Option)
    with Fiat and settlement of related disputes included in 2004
    financial results.



| |                                                    
| | ---------------------------------------------------
| | GM Automotive and Other Operations Financial Review

|                                 |                                          |                          |   |         |        |   |   |         |       |  |   |         |        |  
|-------------------------------- | ---------------------------------------- | ------------------------ | - | ------- | ------ | - | - | ------- | ----- |  | - | ------- | ------ | -
|                                 |                                          | Years Ended December 31, |  
|                                 |                                          |                          |  
|                                 |                                          | 2004                     |   |         | 2003   |   |   | 2002    |      
|                                 |                                          |                          |   |         |        |   |   |         |      
|                                 |                                          | (Dollars in millions)    |  
|Auto & Other:                    |                                          |                          |   |         |        |   |   |         |       |  |   |        
|                                 | Total net sales and revenues             |                          | $ | 161,545 |        |   | $ | 155,831 |       |  | $ | 150,250 |       
|                                 | Income (loss) from continuing operations |                          | $ | (145    | )      |   | $ | 137     |       |  | $ | (65     | )     
|                                 | (Loss) from discontinued operations      |                          |   |        |        |   |   | (219    | )     |  |   | (239    | )     
|                                 | Gain on sale of discontinued operations  |                          |   |        |        |   |   | 1,179   |       |  |   |        |       
|                                 |                                          |                          |   |         |        |   |   |         |      
|                                 |                                          | Net income (loss)        |   | $       | (145   | ) |   | $       | 1,097 |  |   | $       | (304   | )
|                                 |                                          |                          |   |         |        |   |   |         |      
|GMA net income (loss) by region: |                                          |                          |   |         |        |   |   |         |       |  |   |        
|                                 | GMNA                                     |                          | $ | 1,409   |        |   | $ | 879     |       |  | $ | 2,943   |       
|                                 | GME                                      |                          |   | (925    | )      |   |   | (466    | )     |  |   | (1,044  | )     
|                                 | GMLAAM                                   |                          |   | 60      |        |   |   | (329    | )     |  |   | (181    | )     
|                                 | GMAP                                     |                          |   | 730     |        |   |   | 576     |       |  |   | 188     |       
|                                 |                                          |                          |   |         |        |   |   |         |      
|                                 |                                          | Net income (loss)        |   | $       | 1,274  |   |   | $       | 660   |  |   | $       | 1,906  |  
|                                 |                                          |                          |   |         |        |   |   |         |      
|                                 | Net margin                               |                          |   | 0.8     | %      |   |   | 0.4     | %     |  |   | 1.3     | %     
|                                 | GM global automotive market share        |                          |   | 14.5    | %      |   |   | 14.6    | %     |  |   | 15.0    | %     
|Other:                           |                                          |                          |   |         |        |   |   |         |       |  |   |        
|                                 | (Loss) from continuing operations        |                          | $ | (1,419  | )      |   | $ | (523    | )     |  | $ | (1,971  | )     
|                                 | (Loss) from discontinued operations      |                          |   |        |        |   |   | (219    | )     |  |   | (239    | )     
|                                 | Gain on sale of discontinued operations  |                          |   |        |        |   |   | 1,179   |       |  |   |        |       
|                                 |                                          |                          |   |         |        |   |   |         |      
|                                 |                                          | Net income (loss)        |   | $       | (1,419 | ) |   | $       | 437   |  |   | $       | (2,210 | )
|                                 |                                          |                          |   |         |        |   |   |         |      





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| |                               
| | ------------------------------
| | GM Automotive Regional Results



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

|                   |                                |                          |   |        |       |  |   |        |       |  |   |        |       | 
|------------------ | ------------------------------ | ------------------------ | - | ------ | ----- |  | - | ------ | ----- |  | - | ------ | ----- | 
|                   |                                | Years Ended December 31, |  
|                   |                                |                          |  
|                   |                                | 2004                     |   |        | 2003  |  |   | 2002   |      
|                   |                                |                          |   |        |       |  |   |        |      
|                   |                                | (Dollars in millions)    |  
|GMNA:              |                                |                          |   |        |       |  |   |        |       |  |   |       
|                   | Net income                     |                          | $ | 1,409  |       |  | $ | 879    |       |  | $ | 2,943  |      
|                   | Net margin                     |                          |   | 1.2    | %     |  |   | 0.8    | %     |  |   | 2.5    | %    
|Wholesale volumes  |                                | (in thousands)          
|                   | Cars                           |                          |   | 2,271  |       |  |   | 2,340  |       |  |   | 2,547  |      
|                   | Trucks                         |                          |   | 3,193  |       |  |   | 3,267  |       |  |   | 3,174  |      
|                   |                                |                          |   |        |       |  |   |        |      
|                   |                                | Total GMNA               |   |        | 5,464 |  |   |        | 5,607 |  |   |        | 5,721 | 
|                   |                                |                          |   |        |       |  |   |        |      
|Vehicle unit sales |                                |                          |   |        |       |  |   |        |       |  |   |       
|                   | Industry  North America       |                          |   | 20,275 |       |  |   | 19,841 |       |  |   | 20,135 |      
|                   | GM as a percentage of industry |                          |   | 26.7   | %     |  |   | 27.4   | %     |  |   | 27.9   | %    
|                  
|                   | Industry  U.S.                |                          |   | 17,302 |       |  |   | 16,970 |       |  |   | 17,143 |      
|                   | GM as a percentage of industry |                          |   | 27.2   | %     |  |   | 28.0   | %     |  |   | 28.3   | %    
|                   | GM cars                        |                          |   | 24.9   | %     |  |   | 25.7   | %     |  |   | 25.4   | %    
|                   | GM trucks                      |                          |   | 29.0   | %     |  |   | 30.0   | %     |  |   | 31.0   | %    









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

|                                 |                                |                          |      |        |       |   |      |        |       |   |        |        |       | 
|-------------------------------- | ------------------------------ | ------------------------ | ---- | ------ | ----- | - | ---- | ------ | ----- | - | ------ | ------ | ----- | 
|                                 |                                | Years Ended December 31, |     
|                                 |                                |                          |     
|                                 |                                | 2004                     |      |        | 2003  |   |      | 2002   |      
|                                 |                                |                          |      |        |       |   |      |        |      
|                                 |                                | (Dollars in millions)    |     
|GME net (loss)                   |                                | $                        | (925 | )      |       | $ | (466 | )      |       | $ | (1,044 | )     
|GME net margin                   |                                |                          | (3.0 | )%     |       |   | (1.7 | )%     |       |   | (4.4   | )%    
|Wholesale volumes                |                                | (In thousands)          
|                                
|                                 | Cars                           |                          |      | 1,620  |       |   |      | 1,563  |       |   |        | 1,545  |      
|                                 | Trucks                         |                          |      | 97     |       |   |      | 94     |       |   |        | 100    |      
|                                 |                                |                          |      |        |       |   |      |        |      
|                                 |                                | Total GME                |      |        | 1,717 |   |      |        | 1,657 |   |        |        | 1,645 | 
|                                 |                                |                          |      |        |       |   |      |        |      
|Vehicle unit sales               |                                |                          |      |        |       |   |      |        |       |   |        |       
|                                 | Industry                       |                          |      | 20,606 |       |   |      | 19,537 |       |   |        | 19,340 |      
|                                 | GM as a percentage of industry |                          |      | 9.5    | %     |   |      | 9.3    | %     |   |        | 8.6    | %    
|GM market share  Germany        |                                |                          | 10.5 | %      |       |   | 10.4 | %      |       |   | 10.2   | %     
|GM market share  United Kingdom |                                |                          | 13.9 | %      |       |   | 13.7 | %      |       |   | 12.7   | %     







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

|                         |                                |                          |      |       |      |   |      |       |     |   |      |       |     | 
|------------------------ | ------------------------------ | ------------------------ | ---- | ----- | ---- | - | ---- | ----- | --- | - | ---- | ----- | --- | 
|                         |                                | Years Ended December 31, |     
|                         |                                |                          |     
|                         |                                | 2004                     |      |       | 2003 |   |      | 2002  |    
|                         |                                |                          |      |       |      |   |      |       |    
|                         |                                | (Dollars in millions)    |     
|GMLAAM net income (loss) |                                | $                        | 60   |       |      | $ | (329 | )     |     | $ | (181 | )    
|GMLAAM net margin        |                                |                          | 0.7  | %     |      |   | (6.1 | %)    |     |   | (3.5 | %)   
|Wholesale volumes        |                                | (In thousands)          
|                        
|                         | Cars                           |                          |      | 586   |      |   |      | 438   |     |   |      | 443   |    
|                         | Trucks                         |                          |      | 183   |      |   |      | 123   |     |   |      | 197   |    
|                         |                                |                          |      |       |      |   |      |       |    
|                         |                                | Total GMLAAM             |      |       | 769  |   |      |       | 561 |   |      |       | 640 | 
|                         |                                |                          |      |       |      |   |      |       |    
|Vehicle unit sales       |                                |                          |      |       |      |   |      |       |     |   |      |      
|                         | Industry                       |                          |      | 4,240 |      |   |      | 3,585 |     |   |      | 3,637 |    
|                         | GM as a percentage of industry |                          |      | 17.4  | %    |   |      | 16.3  | %   |   |      | 17.0  | %  
|GM market share  Brazil |                                |                          | 23.1 | %     |      |   | 23.3 | %     |     |   | 23.0 | %    







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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


GM Asia Pacific


|                            |                                |                          |      |        |      |   |      |        |     |   |      |        |     | 
|--------------------------- | ------------------------------ | ------------------------ | ---- | ------ | ---- | - | ---- | ------ | --- | - | ---- | ------ | --- | 
|                            |                                | Years Ended December 31, |     
|                            |                                |                          |     
|                            |                                | 2004                     |      |        | 2003 |   |      | 2002   |    
|                            |                                |                          |      |        |      |   |      |        |    
|                            |                                | (Dollars in millions)    |     
|GMAP net income             |                                | $                        | 730  |        |      | $ | 576  |        |     | $ | 188  |       
|GMAP net margin             |                                |                          | 10.5 | %      |      |   | 10.8 | %      |     |   | 4.2  | %     
|Wholesale volumes           |                                | (In thousands)          
|                           
|                            | Cars                           |                          |      | 203    |      |   |      | 203    |     |   |      | 185    |    
|                            | Trucks                         |                          |      | 88     |      |   |      | 70     |     |   |      | 220    |    
|                            |                                |                          |      |        |      |   |      |        |    
|                            |                                | Total GMAP               |      |        | 291  |   |      |        | 273 |   |      |        | 405 | 
|                            |                                |                          |      |        |      |   |      |        |    
|Vehicle unit sales          |                                |                          |      |        |      |   |      |        |     |   |      |       
|                            | Industry                       |                          |      | 17,070 |      |   |      | 15,925 |     |   |      | 14,503 |    
|                            | GM as a percentage of industry |                          |      | 5.2    | %    |   |      | 4.9    | %   |   |      | 3.4    | %  
|GM market share  Australia |                                |                          | 19.4 | %      |      |   | 20.4 | %      |     |   | 22.6 | %     
|GM market share  China     |                                |                          | 9.3  | %      |      |   | 8.6  | %      |     |   | 4.2  | %     

(GM-DAT)


GM-DAT,


Other Operations


|       |                                           |                          |   |        |      |  |   |       |   |  |   |        |  
|------ | ----------------------------------------- | ------------------------ | - | ------ | ---- |  | - | ----- | - |  | - | ------ | -
|       |                                           | Years Ended December 31, |  
|       |                                           |                          |  
|       |                                           | 2004                     |   |        | 2003 |  |   | 2002  |  
|       |                                           |                          |   |        |      |  |   |       |  
|       |                                           | (Dollars in millions)    |  
|Other: |                                           |                          |   |        |      |  |   |       |   |  |   |       
|       | Total net sales and revenues              |                          | $ | 410    |      |  | $ | 1,318 |   |  | $ | 895    |  
|       | (Loss) from continuing operations         |                          | $ | (1,419 | )    |  | $ | (523  | ) |  | $ | (1,971 | )
|       | (Loss) from discontinued operations       |                          |   |       |      |  |   | (219  | ) |  |   | (239   | )
|       | Gain from sale of discontinued operations |                          |   |       |      |  |   | 1,179 |   |  |   |       |  
|       |                                           |                          |   |        |      |  |   |       |  
|       | Net (loss) income                         |                          | $ | (1,419 | )    |  | $ | 437   |   |  | $ | (2,210 | )
|       |                                           |                          |   |        |      |  |   |       |  



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| |   |                                                                                                                                                                                                                                                                                                      
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The Fiat-GM Powertrain (FGP) joint venture company will be
    dissolved and GM will regain complete ownership of all GM assets
    originally contributed. During a transition period, FGP will
    continue to supply both companies so that their respective
    operations will not be disrupted;
|
| |  | GM will retain co-ownership with Fiat of the key powertrain
    intellectual property, including SDE and JTD diesel engines and
    the M20-32 six-speed
    manual transmission;                                                                                                                    
|
| |  | GM will hold a 50% interest in a joint venture limited to
    operating the powertrain manufacturing plant in Bielsko-Biala,
    Poland, that currently produces the 1.3 liter SDE diesel
    engine;                                                                                                
|
| |  | The companies will continue to supply each other with
    powertrains under long term contracts which provide considerable
    ongoing savings;                                                                                                                                                      
|
| |  | GM and Fiat will also continue to work together to develop
    certain car programs;                                                                                                                                                                                                                 
|
| |  | Fiat will participate in GMs purchasing alliance program;                                                                                                                                                                                                                                           







Discontinued Operations






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GENERAL MOTORS CORPORATION AND SUBSIDIARIES




GMAC Financial Review




|                     |            |                          |       |       |      |   |       |       |  |   |       |       | 
|-------------------- | ---------- | ------------------------ | ----- | ----- | ---- | - | ----- | ----- |  | - | ----- | ----- | 
|                     |            | Years Ended December 31, |      
|                     |            |                          |      
|                     |            | 2004                     |       |       | 2003 |   |       | 2002  | 
|                     |            |                          |       |       |      |   |       |       | 
|                     |            | (Dollars in millions)    |      
|Financing operations |            | $                        | 1,430 |       |      | $ | 1,391 |       |  | $ | 1,268 |      
|Mortgage operations  |            |                          | 1,186 |       |      |   | 1,175 |       |  |   | 504   |      
|Insurance operations |            |                          | 352   |       |      |   | 162   |       |  |   | 94    |      
|                     |            |                          |       |       |      |   |       |       | 
|                     | Net income |                          | $     | 2,968 |      |   | $     | 2,728 |  |   | $     | 1,866 | 
|                     |            |                          |       |       |      |   |       |       | 








LIQUIDITY AND CAPITAL RESOURCES


Statements of Cash Flows Restatements and
Reclassifications






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Automotive and Other Operations










Financing and Insurance Operations




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Off-Balance Sheet Arrangements










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|                                     |                                 |              |       |         |      |   |       |         | 
|------------------------------------ | ------------------------------- | ------------ | ----- | ------- | ---- | - | ----- | ------- | 
|                                     |                                 | December 31, |      
|                                     |                                 |              |      
|                                     |                                 | 2004         |       |         | 2003 |  
|                                     |                                 |              |       |         |      |  
|Automotive and Other Operations      |                                 |              |       |         |      |   |       |        
|Assets leased under operating leases |                                 | $            | 2,553 |         |      | $ | 2,411 |        
|Trade receivables sold(1)            |                                 |              | 1,210 |         |      |   | 755   |        
|                                     |                                 |              |       |         |      |  
|                                     | Total                           |              | $     | 3,763   |      |   | $     | 3,166   | 
|                                     |                                 |              |       |         |      |  
|Financing and Insurance Operations   |                                 |              |       |         |      |   |       |        
|Receivables sold or securitized:     |                                 |              |       |         |      |   |       |        
|                                     |  Mortgage loans                |              | $     | 79,043  |      |   | $     | 80,798  | 
|                                     |  Retail finance receivables    |              |       | 5,615   |      |   |       | 9,548   | 
|                                     |  Wholesale finance receivables |              |       | 21,291  |      |   |       | 21,142  | 
|                                     |                                 |              |       |         |      |  
|                                     | Total                           |              | $     | 105,949 |      |   | $     | 111,488 | 
|                                     |                                 |              |       |         |      |  






|    |                                                                                                                                        
|--- | ---------------------------------------------------------------------------------------------------------------------------------------
|(1) | In addition, trade receivables sold to GMAC were
    $549 million as of December 31, 2004 and
    $586 million as of December 31, 2003.

Contractual Obligations and Other Long-Term Liabilities




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|                                                 |                                                         |                        |        |          |           |   |       |           |        |   |       |       |        |       |        |        |   |   |        |        |         |  
|------------------------------------------------ | ------------------------------------------------------- | ---------------------- | ------ | -------- | --------- | - | ----- | --------- | ------ | - | ----- | ----- | ------ | ----- | ------ | ------ | - | - | ------ | ------ | ------- | -
|                                                 |                                                         | Payments Due by Period |       
|                                                 |                                                         |                        |       
|                                                 |                                                         |                        |        | 2010 and |           |   |      
|                                                 |                                                         | 2005                   |        |          | 2006-2007 |   |       | 2008-2009 |        |   | After |       |        | Total |       
|                                                 |                                                         |                        |        |          |           |   |       |           |        |   |       |       |        |       |       
|                                                 |                                                         | (Dollars in millions)  |       
|Debt                                             |                                                         | $                      | 2,062  |          |           | $ | 814   |           |        | $ | 1,896 |       |        | $     | 27,715 |        |   | $ | 32,487 |       
|Capital lease obligations                        |                                                         |                        | 113    |          |           |   | 221   |           |        |   | 487   |       |        |       | 545    |        |   |   | 1,366  |       
|Operating lease obligations                      |                                                         |                        | 467    |          |           |   | 964   |           |        |   | 1,341 |       |        |       | 1,340  |        |   |   | 4,112  |       
|Contractual commitments for capital expenditures |                                                         |                        | 676    |          |           |   | 137   |           |        |   |      |       |        |       |       |        |   |   | 813    |       
|Other contractual commitments:                   |                                                         |                        |        |          |           |   |       |           |        |   |       |       |        |       |        |        |   |   |        |       
|                                                 | Postretirement benefits(1)                              |                        |        | 3,373    |           |   |       | 7,201     |        |   |       |      |        |       |        |       |   |   |        | 10,574 |        
|                                                 |                                                         | Less: VEBA assets(2)   |        |          | (3,373    | ) |       |           | (7,201 | ) |       |       |       |       |        |        |  |   |        |        | (10,574 | )
|                                                 |                                                         |                        |        |          |           |   |       |           |        |   |       |       |        |       |       
|                                                 | Net                                                     |                        |        |         |           |   |       |          |        |   |       |      |        |       |        |       |   |   |        |       |        
|                                                 | Material                                                |                        |        | 1,230    |           |   |       | 2,029     |        |   |       | 1,436 |        |       |        | 307    |   |   |        | 5,002  |        
|                                                 | Information technology                                  |                        |        | 324      |           |   |       | 287       |        |   |       | 27    |        |       |        |       |   |   |        | 638    |        
|                                                 | Marketing                                               |                        |        | 1,377    |           |   |       | 416       |        |   |       | 58    |        |       |        | 148    |   |   |        | 1,999  |        
|                                                 | Facilities                                              |                        |        | 273      |           |   |       | 262       |        |   |       | 174   |        |       |        | 477    |   |   |        | 1,186  |        
|                                                 | Rental car repurchases                                  |                        |        | 8,230    |           |   |       |          |        |   |       |      |        |       |        |       |   |   |        | 8,230  |        
|                                                 | Policy, product warranty and recall campaigns liability |                        |        | 3,864    |           |   |       | 4,394     |        |   |       | 757   |        |       |        | 118    |   |   |        | 9,133  |        
|                                                 |                                                         |                        |        |          |           |   |       |           |        |   |       |       |        |       |       
|Total contractual commitments                    |                                                         | $                      | 18,616 |          |           | $ | 9,524 |           |        | $ | 6,176 |       |        | $     | 30,650 |        |   | $ | 64,966 |       
|                                                 |                                                         |                        |        |          |           |   |       |           |        |   |       |       |        |       |       
|Remaining balance postretirement benefits        |                                                         | $                      | 804    |          |           | $ | 1,606 |           |        | $ | 9,670 |       |        | $     | 54,820 |        |   | $ | 66,900 |       
|                                                 |                                                         | Less: VEBA assets(2)   |        |          | (804      | ) |       |           | (1,606 | ) |       |       | (7,032 | )     |        |        |  |   |        |        | (9,442  | )
|                                                 |                                                         |                        |        |          |           |   |       |           |        |   |       |       |        |       |       
|                                                 | Net                                                     |                        | $      |         |           |   | $     |          |        |   | $     | 2,638 |        |       | $      | 54,820 |   |   | $      | 57,458 |        
|                                                 |                                                         |                        |        |          |           |   |       |           |        |   |       |       |        |       |       






|    |                                                                                                                                                                                                                                                                                                                                 
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Amounts include postretirement benefits under the current
    contractual labor agreements in North America. The remainder of
    the estimated liability, for benefits beyond the current labor
    agreement and for essentially all salaried employees, is
    classified under remaining balance of postretirement benefits.
|   
|(2) | Total VEBA assets were allocated based on projected spending
    requirements. Amount includes $4.0 billion VEBA asset
    contribution made in December 2004.                                                                                                                                                                  



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|                                                                  |                               |                        |        |          |           |   |        |           |  |   |        |        |  |       |        |         |  |   |         |         | 
|----------------------------------------------------------------- | ----------------------------- | ---------------------- | ------ | -------- | --------- | - | ------ | --------- |  | - | ------ | ------ |  | ----- | ------ | ------- |  | - | ------- | ------- | 
|                                                                  |                               | Payments Due by Period |       
|                                                                  |                               |                        |       
|                                                                  |                               |                        |        | 2010 and |           |   |       
|                                                                  |                               | 2005                   |        |          | 2006-2007 |   |        | 2008-2009 |  |   | After  |        |  | Total |       
|                                                                  |                               |                        |        |          |           |   |        |           |  |   |        |        |  |       |       
|                                                                  |                               | (Dollars in millions)  |       
|Debt                                                              |                               | $                      | 92,321 |          |           | $ | 63,140 |           |  | $ | 21,031 |        |  | $     | 91,820 |         |  | $ | 268,312 |        
|Operating lease obligations                                       |                               |                        | 195    |          |           |   | 288    |           |  |   | 156    |        |  |       | 147    |         |  |   | 786     |        
|Mortgage purchase and sale commitments                            |                               |                        | 23,061 |          |           |   | 2,376  |           |  |   | 186    |        |  |       | 65     |         |  |   | 25,688  |        
|Lending commitments                                               |                               |                        | 16,468 |          |           |   | 2,974  |           |  |   | 999    |        |  |       | 4,501  |         |  |   | 24,942  |        
|Commitments to remit excess cash flows on certain loan portfolios |                               |                        |       |          |           |   |       |           |  |   |       |        |  |       | 4,335  |         |  |   | 4,335   |        
|Commitments to sell retail automotive receivables                 |                               |                        | 2,000  |          |           |   |       |           |  |   |       |        |  |       |       |         |  |   | 2,000   |        
|Commitments to provide capital to equity method investees         |                               |                        | 11     |          |           |   | 4      |           |  |   | 101    |        |  |       | 227    |         |  |   | 343     |        
|Purchase obligations                                              |                               |                        | __203  |          |           |   | __94   |           |  |   | 21     |        |  |       | 1      |         |  |   | 319     |        
|                                                                  |                               |                        |        |          |           |   |        |           |  |   |        |        |  |       |       
|                                                                  | Total contractual commitments |                        | $      | 134,259  |           |   | $      | 68,876    |  |   | $      | 22,494 |  |       | $      | 101,096 |  |   | $       | 326,725 | 
|                                                                  |                               |                        |        |          |           |   |        |           |  |   |        |        |  |       |       




BOOK VALUE PER SHARE







EMPLOYMENT AND PAYROLLS


|                                                         |                 |                |       |     |      |   |       |      |  |   |       |     | 
|-------------------------------------------------------- | --------------- | -------------- | ----- | --- | ---- | - | ----- | ---- |  | - | ----- | --- | 
|                                                         |                 | 2004           |       |     | 2003 |   |       | 2002 | 
|                                                         |                 |                |       |     |      |   |       |      | 
|                                                         |                 | (In thousands) |      
|Worldwide employment at December 31,                     |                 |                |       |     |      |   |       |      |  |   |       |    
|GMNA                                                     |                 |                | 181   |     |      |   | 190   |      |  |   | 198   |    
|GME                                                      |                 |                | 61    |     |      |   | 62    |      |  |   | 66    |    
|GMLAAM                                                   |                 |                | 29    |     |      |   | 23    |      |  |   | 24    |    
|GMAP                                                     |                 |                | 15    |     |      |   | 14    |      |  |   | 11    |    
|GMAC                                                     |                 |                | 34    |     |      |   | 32    |      |  |   | 32    |    
|Other                                                    |                 |                | 4     |     |      |   | 5     |      |  |   | 7     |    
|                                                         |                 |                |       |     |      |   |       |      | 
|                                                         | Total employees |                |       | 324 |      |   |       | 326  |  |   |       | 338 | 
|                                                         |                 |                |       |     |      |   |       |      | 
|Worldwide payrolls (in billions)                         |                 | $              | 21.5  |     |      | $ | 20.9  |      |  | $ | 20.4  |    
|U.S. hourly payrolls (in billions)(1)                    |                 | $              | 8.7   |     |      | $ | 8.9   |      |  | $ | 9.1   |    
|Average labor cost per active hour worked U.S. hourly(2) |                 | $              | 73.73 |     |      | $ | 78.39 |      |  | $ | 62.78 |    






|    |                                                                                   
|--- | ----------------------------------------------------------------------------------
|(1) | Includes employees at work (excludes laid-off
    employees receiving benefits).
|   
|(2) | Includes U.S. hourly wages and benefits divided by the
    number of hours worked.

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GENERAL MOTORS CORPORATION AND SUBSIDIARIES







CRITICAL ACCOUNTING ESTIMATES






| |                 
| | ----------------
| | Sales Allowances





| |                    
| | -------------------
| | Policy and Warranty





| |                                
| | -------------------------------
| | Impairment of Long-Lived Assets





| |                                                          
| | ---------------------------------------------------------
| | Pension and Other Postretirement Employee Benefits (OPEB)



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GENERAL MOTORS CORPORATION AND SUBSIDIARIES




| |                        
| | -----------------------
| | Postemployment Benefits





| |                            
| | ---------------------------
| | Allowance for Credit Losses





| |                                
| | -------------------------------
| | Investments in Operating Leases





| |                          
| | -------------------------
| | Mortgage Servicing Rights





| |                                                                 
| | ----------------------------------------------------------------
| | Accounting for Derivatives and Other Contracts at Fair
    Value



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GENERAL MOTORS CORPORATION AND SUBSIDIARIES







ADDITIONAL MATTERS












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GENERAL MOTORS CORPORATION AND SUBSIDIARIES







FORWARD-LOOKING STATEMENTS






| |   |                                                                                                                                                                                                                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The ability of GM to realize production efficiencies, to achieve
    reductions in costs as a result of the turnaround restructuring
    and health care cost reductions and to implement capital
    expenditures at levels and times planned by management;                                               
|
| |  | The pace of product introductions;                                                                                                                                                                                                                                                                          
|
| |  | Market acceptance of the Corporations new products;                                                                                                                                                                                                                                                        
|
| |  | Significant changes in the competitive environment and the
    effect of competition in the Corporations markets,
    including on the Corporations pricing policies;                                                                                                                                     
|
| |  | Our ability to maintain adequate liquidity and financing sources
    and an appropriate level of debt;                                                                                                                                                                                                      
|
| |  | Restrictions on GMACs and ResCaps ability to pay
    dividends and prepay subordinated debt obligations to us;                                                                                                                                                                                            
|
| |  | Changes in the existing, or the adoption of new, laws,
    regulations, policies or other activities of governments,
    agencies and similar organizations where such actions may affect
    the production, licensing, distribution or sale of our products,
    the cost thereof or applicable tax rates;
|
| |  | Costs and risks associated with litigation;                                                                                                                                                                                                                                                                 
|
| |  | The final results of investigations and inquiries by the SEC;                                                                                                                                                                                                                                               
|
| |  | Changes in our accounting principles, or their application or
    interpretation, and our ability to make estimates and the
    assumptions underlying the estimates, including the range of
    estimates for the Delphi pension benefit guarantees, which could
    result in an impact on earnings;      
|
| |  | Changes in relations with unions and employees/retirees and the
    legal interpretations of the agreements with those unions with
    regard to employees/retirees;                                                                                                                                        
|
| |  | Negotiations and bankruptcy court actions with respect to
    Delphis obligations to GM, negotiations with respect to
    GMs obligations under the pension benefit guarantees to
    Delphi employees, and GMs ability to recover any indemnity
    claims against Delphi;                              
|
| |  | Labor strikes or work stoppages at GM or its key suppliers such
    as Delphi or financial difficulties at GMs key suppliers
    such as Delphi;                                                                                                                                                           
|
| |  | Additional credit rating downgrades and the effects thereof;                                                                                                                                                                                                                                                
|
| |  | The effect of a potential sale or other extraordinary
    transaction involving GMAC on the results of GMs and
    GMACs operations and liquidity;                                                                                                                                                        

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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Other factors affecting financing and insurance operating
    segments results of operations and financial condition
    such as credit ratings, adequate access to the market, changes
    in the residual value of off-lease vehicles, changes in U.S.
    government-sponsored mortgage programs or disruptions in the
    markets in which our mortgage subsidiaries operate, and changes
    in our contractual servicing rights;
|
| |  | Shortages of and price increases for fuel; and                                                                                                                                                                                                                                                                                                                                                                                         
|
| |  | Changes in economic conditions, commodity prices, currency
    exchange rates or political stability in the markets in which we
    operate.                                                                                                                                                                                                                                                                                           





| |   |                                                                                                                                                                                                                                                                                                                           
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The ability of GM to complete a transaction regarding a
    controlling interest in GMAC while maintaining a significant
    stake in GMAC, securing separate credit ratings and low cost
    funding to sustain growth for GMAC and ResCap, and maintaining
    the mutually beneficial relationship between GMAC and GM;
|
| |  | Significant changes in the competitive environment and the
    effect of competition in the Corporations markets,
    including on the Corporations pricing policies;                                                                                                                                                   
|
| |  | Our ability to maintain adequate financing sources;                                                                                                                                                                                                                                                                       
|
| |  | Our ability to maintain an appropriate level of debt;                                                                                                                                                                                                                                                                     
|
| |  | The profitability and financial condition of GM, including
    changes in production or sales of GM vehicles, risks based on
    GMs contingent benefit guarantees and the possibility of
    labor strikes or work stoppages at GM or at key suppliers such
    as Delphi;                                              
|
| |  | Funding obligations under GM and its subsidiaries
    qualified U.S. defined benefits pension plans;                                                                                                                                                                                                                     
|
| |  | Restrictions on ResCaps ability to pay dividends and
    prepay subordinated debt obligations to us;                                                                                                                                                                                                                     
|
| |  | Changes in the residual value of off-lease vehicles;                                                                                                                                                                                                                                                                      
|
| |  | Changes in U.S. government-sponsored mortgage programs or
    disruptions in the markets in which our mortgage subsidiaries
    operate;                                                                                                                                                                                  
|
| |  | Changes in our contractual servicing rights;                                                                                                                                                                                                                                                                              
|
| |  | Costs and risks associated with litigation;                                                                                                                                                                                                                                                                               
|
| |  | Changes in our accounting assumptions that may require or that
    result from changes in the accounting rules or their
    application, which could result in an impact on earnings;                                                                                                                                     
|
| |  | Changes in the credit ratings of GMAC or GM;                                                                                                                                                                                                                                                                              
|
| |  | The threat of natural calamities;                                                                                                                                                                                                                                                                                         
|
| |  | Changes in economic conditions, currency exchange rates or
    political stability in the markets in which we operate; and                                                                                                                                                                                                
|
| |  | Changes in the existing, or the adoption of new, laws,
    regulations, policies or other activities of governments,
    agencies and similar organizations.                                                                                                                                                              



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GENERAL MOTORS CORPORATION AND SUBSIDIARIES







EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES




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








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





| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (B) | During the fourth quarter of 2004, GM management became aware
    that issues relating to credits received from suppliers were
    surfacing in the automotive industry. As a result, GM management
    conducted an internal review of our accounting for rebates and
    lump sum retroactive price adjustments received from suppliers
    (supplier credits) during 2004. GM management concluded that
    certain supplier credits received and recorded as reductions of
    cost of sales in 2004 should have been deferred and recognized
    in future periods, but such amounts were immaterial to our 2004
    financial statements. Given that result, GM management also
    concluded at that time that the review need not be expanded to
    prior years. As of December 31, 2004, GM management
    concluded there was a significant deficiency in internal
    controls related to the accounting for supplier credits. GM
    management then initiated a series of actions aimed at improving
    internal controls in this area.

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| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | In April 2005, the Corporation received an SEC subpoena
    requesting documents relating to rebates or other lump sum
    retroactive price adjustments that GM had received from Delphi.
    In the process of responding to that subpoena, GM management
    found documentation from 2001 of payments that GM received from
    certain suppliers, including Delphi. As a result, GM management
    decided to expand the study of supplier credits to include the
    years 2000-2005. Our review concluded with the restatement
    discussed in Note 1 to the Consolidated Financial
    Statements and Item 6  Selected Financial Data.
|
| |  | In evaluating the internal control considerations related to
    supplier credits, GM management believes that a material
    weakness in internal controls in the accounting for supplier
    credits existed in 2001. In early 2002, changes were made within
    the purchasing processes that had the effect of remediating this
    material weakness to a significant deficiency, which was then
    fully remediated in 2005 following the supplier credit study of
    2004.                                                                                                                                                            
|
| |  | As a result of the 2004 supplier credit review, GM developed new
    accounting policies and procedures such that a supplier credit
    may be recognized as a reduction of cost of sales when received
    only when all of the following criteria are met:                                                                                                                                                                                                                                                                                                                                                                                    



| |     |                                                                                                                                                                                                                
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (1) | The credit relates to purchases made by or services provided to
    GM prior to the date of the credit.                                                                                                        
|
| | (2) | The credit is pursuant to the terms and conditions of (i) a
    previously-existing purchase order or contract or (ii) a
    pre-existing agreement between GM and the supplier to achieve
    cost reductions.
|
| | (3) | The credit is not issued in exchange for or linked in any way to
    any commitment by GM for future performance. Examples of
    commitments for future GM performance include:                               



| |     |                                                                                                            
| | --- | -----------------------------------------------------------------------------------------------------------
| | (a) | An agreement by GM to award future business to the supplier                                                
|
| | (b) | An agreement by GM to extend a contract                                                                    
|
| | (c) | GM giving up rights to which it would otherwise be entitled                                                
|
| | (d) | An advance of future contractual price adjustments that are to
    be paid back in a subsequent time period



| |     |                                                                                                  
| | --- | -------------------------------------------------------------------------------------------------
| | (4) | There is no agreement or understanding that could require GM to
    refund or reverse the credit.



| |  |                                                                                                                                                                                                                                                                             
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The new accounting policy also provides that, if the above
    criteria are not met, the supplier credit should be recognized
    in income during the period(s) of benefit to the supplier/ GM,
    or the periods over which GM provides a commitment to the
    supplier.
|
| |  | In addition, GM management implemented additional control
    procedures related to the accounting for supplier credits,
    including:                                                                                                                                     



| |     |                                                                                                                               
| | --- | ------------------------------------------------------------------------------------------------------------------------------
| | (a) | Formal training for purchasing personnel with respect to
    business processes applicable to the receipt of supplier credits.
|
| | (b) | Establishment of formal approval levels for supplier credit
    transactions.                                                 
|
| | (c) | Standard communication protocols to reinforce GMs policies
    with suppliers.                                               



| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (C) | During 2005, GM management identified a significant deficiency
    in internal controls related to accounting for complex
    contracts. This deficiency was identified as a result of certain
    contracts being accounted for incorrectly and without
    appropriate consideration of the economic substance of the
    contracts. GM management is in the process of remediating this
    significant deficiency by implementing a delegation of authority
    for approval of the accounting for complex contracts that
    requires formal review and approval by experienced accounting
    personnel.

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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


10-K/A. 10-Q 10-K/A.




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GENERAL MOTORS CORPORATION AND SUBSIDIARIES







MANAGEMENTS REPORT ON INTERNAL CONTROL OVER


FINANCIAL REPORTING (RESTATED)








Statement of Cash Flows 
Exemption of Certain Enterprises and Classification of Cash
Flows from Certain Securities Acquired for Resale.


Internal Control / Integrated Framework






|                                     |  |                           
|------------------------------------ |  | --------------------------
|                                    
|/s/ G. RICHARD WAGONER, JR.          |  | /s/ FREDERICK A. HENDERSON
|                                     |  |                           
|G. Richard Wagoner, Jr.              |  | Frederick A. Henderson    
|Chairman and Chief Executive Officer |  | Chief Financial Officer   
|March 28, 2006                       |  | March 28, 2006            

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GENERAL MOTORS CORPORATION AND SUBSIDIARIES







LIMITATIONS ON THE EFFECTIVENESS OF CONTROLS




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GENERAL MOTORS CORPORATION AND SUBSIDIARIES




Internal Control 
Integrated Framework










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Internal Control  Integrated
Framework Internal Control 
Integrated Framework















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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM












Consolidation of Variable
Interest Entities Accounting for Stock-Based
Compensation


Internal Control 
Integrated Framework













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ITEM 8.


GENERAL MOTORS CORPORATION AND SUBSIDIARIES







CONSOLIDATED STATEMENTS OF INCOME


|                                                                                                |                                                 |                             |         |         |      |   |         |         |  |   |         |         |  
|----------------------------------------------------------------------------------------------- | ----------------------------------------------- | --------------------------- | ------- | ------- | ---- | - | ------- | ------- |  | - | ------- | ------- | -
|                                                                                                |                                                 | As Restated, See Note 1     |        
|                                                                                                |                                                 | Years Ended December 31,    |        
|                                                                                                |                                                 |                             |        
|                                                                                                |                                                 | 2004                        |         |         | 2003 |   |         | 2002    | 
|                                                                                                |                                                 |                             |         |         |      |   |         |         | 
|                                                                                                |                                                 | (Dollars in millions except |        
|                                                                                                |                                                 | per share amounts)          |        
|GENERAL MOTORS CORPORATION AND SUBSIDIARIES                                                     |                                                 |                             |         |         |      |   |         |         |  |   |         |        
|Total net sales and revenues (Notes 1 and 23)                                                   |                                                 | $                           | 193,517 |         |      | $ | 185,837 |         |  | $ | 177,867 |        
|                                                                                                |                                                 |                             |         |         |      |   |         |         | 
|Cost of sales and other expenses                                                                |                                                 |                             | 159,957 |         |      |   | 152,419 |         |  |   | 147,420 |        
|Selling, general, and administrative expenses                                                   |                                                 |                             | 20,394  |         |      |   | 20,957  |         |  |   | 20,834  |        
|Interest expense (Note 15)                                                                      |                                                 |                             | 11,980  |         |      |   | 9,464   |         |  |   | 7,503   |        
|                                                                                                |                                                 |                             |         |         |      |   |         |         | 
|                                                                                                | Total costs and expenses                        |                             |         | 192,331 |      |   |         | 182,840 |  |   |         | 175,757 |  
|                                                                                                |                                                 |                             |         |         |      |   |         |         | 
|Income from continuing operations before income taxes, equity
    income and minority interests |                                                 |                             | 1,186   |         |      |   | 2,997   |         |  |   | 2,110   |        
|Income tax (benefit) expense (Note 10)                                                          |                                                 |                             | (916    | )       |      |   | 710     |         |  |   | 578     |        
|Equity income (loss) and minority interests                                                     |                                                 |                             | 702     |         |      |   | 612     |         |  |   | 281     |        
|                                                                                                |                                                 |                             |         |         |      |   |         |         | 
|Income from continuing operations                                                               |                                                 |                             | 2,804   |         |      |   | 2,899   |         |  |   | 1,813   |        
|(Loss) from discontinued operations (Note 2)                                                    |                                                 |                             |        |         |      |   | (219    | )       |  |   | (239    | )      
|Gain on sale of discontinued operations                                                         |                                                 |                             |        |         |      |   | 1,179   |         |  |   |        |        
|                                                                                                |                                                 |                             |         |         |      |   |         |         | 
|                                                                                                | Net income                                      |                             |         | 2,804   |      |   |         | 3,859   |  |   |         | 1,574   |  
|Dividends on preference stocks                                                                  |                                                 |                             |        |         |      |   |        |         |  |   | (46     | )      
|                                                                                                |                                                 |                             |         |         |      |   |         |         | 
|                                                                                                | Earnings attributable to common stocks(Note 19) |                             | $       | 2,804   |      |   | $       | 3,859   |  |   | $       | 1,528   |  
|                                                                                                |                                                 |                             |         |         |      |   |         |         | 
|Basic earnings (loss) per share attributable to common
    stocks                               |                                                 |                             |         |         |      |   |         |         |  |   |         |        
|$12/3 par value                                                                                 |                                                 |                             |         |         |      |   |         |         |  |   |         |        
|                                                                                                | Continuing operations                           |                             | $       | 4.97    |      |   | $       | 5.17    |  |   | $       | 3.24    |  
|                                                                                                | Discontinued operations                         |                             | $       |        |      |   | $       | 2.14    |  |   | $       | (0.16   | )
|                                                                                                |                                                 |                             |         |         |      |   |         |         | 
|Earnings per share attributable to
    $12/3 par value                                          |                                                 | $                           | 4.97    |         |      | $ | 7.31    |         |  | $ | 3.08    |        
|                                                                                                |                                                 |                             |         |         |      |   |         |         | 
|Losses per share from discontinued operations attributable to
    Class H                       |                                                 | $                           |        |         |      | $ | (0.22   | )       |  | $ | (0.21   | )      
|                                                                                                |                                                 |                             |         |         |      |   |         |         | 
|Earnings (loss) per share attributable to common stocks
    assuming dilution                   |                                                 |                             |         |         |      |   |         |         |  |   |         |        
|$12/3 par value                                                                                 |                                                 |                             |         |         |      |   |         |         |  |   |         |        
|                                                                                                | Continuing operations                           |                             | $       | 4.94    |      |   | $       | 5.09    |  |   | $       | 3.23    |  
|                                                                                                | Discontinued operations                         |                             | $       |        |      |   | $       | 2.11    |  |   | $       | (0.16   | )
|                                                                                                |                                                 |                             |         |         |      |   |         |         | 
|Earnings per share attributable to
    $12/3 par value                                          |                                                 | $                           | 4.94    |         |      | $ | 7.20    |         |  | $ | 3.07    |        
|                                                                                                |                                                 |                             |         |         |      |   |         |         | 
|Losses per share from discontinued operations attributable to
    Class H                       |                                                 | $                           |        |         |      | $ | (0.22   | )       |  | $ | (0.21   | )      
|                                                                                                |                                                 |                             |         |         |      |   |         |         | 



II-31



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES





SUPPLEMENTAL INFORMATION TO THE CONSOLIDATED STATEMENTS OF
INCOME


|                                                                                                 |                                                         |                          |         |         |      |   |         |         |  |   |         |         |  
|------------------------------------------------------------------------------------------------ | ------------------------------------------------------- | ------------------------ | ------- | ------- | ---- | - | ------- | ------- |  | - | ------- | ------- | -
|                                                                                                 |                                                         | As Restated, See Note 1  |        
|                                                                                                 |                                                         | Years Ended December 31, |        
|                                                                                                 |                                                         |                          |        
|                                                                                                 |                                                         | 2004                     |         |         | 2003 |   |         | 2002    | 
|                                                                                                 |                                                         |                          |         |         |      |   |         |         | 
|                                                                                                 |                                                         | (Dollars in millions)    |        
|AUTOMOTIVE AND OTHER OPERATIONS                                                                  |                                                         |                          |         |         |      |   |         |         |  |   |         |        
|Total net sales and revenues (Notes 1 and 23)                                                    |                                                         | $                        | 161,545 |         |      | $ | 155,831 |         |  | $ | 150,250 |        
|                                                                                                 |                                                         |                          |         |         |      |   |         |         | 
|Cost of sales and other expenses                                                                 |                                                         |                          | 150,224 |         |      |   | 143,408 |         |  |   | 138,558 |        
|Selling, general, and administrative expenses                                                    |                                                         |                          | 11,863  |         |      |   | 11,737  |         |  |   | 11,680  |        
|                                                                                                 |                                                         |                          |         |         |      |   |         |         | 
|                                                                                                 | Total costs and expenses                                |                          |         | 162,087 |      |   |         | 155,145 |  |   |         | 150,238 |  
|Interest expense (Note 15)                                                                       |                                                         |                          | 2,480   |         |      |   | 1,780   |         |  |   | 479     |        
|Net expense from transactions with Financing and Insurance
    Operations (Note 1)               |                                                         |                          | 273     |         |      |   | 297     |         |  |   | 327     |        
|                                                                                                 |                                                         |                          |         |         |      |   |         |         | 
|(Loss) from continuing operations before income taxes, equity
    income, and minority interests |                                                         |                          | (3,295  | )       |      |   | (1,391  | )       |  |   | (794    | )      
|Income tax (benefit) (Note 10)                                                                   |                                                         |                          | (2,440  | )       |      |   | (854    | )       |  |   | (381    | )      
|Equity income (loss) and minority interests                                                      |                                                         |                          | 710     |         |      |   | 674     |         |  |   | 348     |        
|                                                                                                 |                                                         |                          |         |         |      |   |         |         | 
|Income (loss) from continuing operations                                                         |                                                         |                          | (145    | )       |      |   | 137     |         |  |   | (65     | )      
|(Loss) from discontinued operations (Note 2)                                                     |                                                         |                          |        |         |      |   | (219    | )       |  |   | (239    | )      
|Gain on sale of discontinued operations                                                          |                                                         |                          |        |         |      |   | 1,179   |         |  |   |        |        
|                                                                                                 |                                                         |                          |         |         |      |   |         |         | 
|                                                                                                 | Net income (loss)  Automotive and Other
    Operations |                          | $       | (145    | )    |   | $       | 1,097   |  |   | $       | (304    | )
|                                                                                                 |                                                         |                          |         |         |      |   |         |         | 
|FINANCING AND INSURANCE OPERATIONS                                                               |                                                         |                          |         |         |      |   |         |         |  |   |         |        
|Total revenues                                                                                   |                                                         | $                        | 31,972  |         |      | $ | 30,006  |         |  | $ | 27,617  |        
|                                                                                                 |                                                         |                          |         |         |      |   |         |         | 
|Interest expense (Note 15)                                                                       |                                                         |                          | 9,500   |         |      |   | 7,684   |         |  |   | 7,024   |        
|Depreciation and amortization expense (Note 11)                                                  |                                                         |                          | 5,523   |         |      |   | 5,567   |         |  |   | 5,245   |        
|Operating and other expenses                                                                     |                                                         |                          | 8,426   |         |      |   | 8,705   |         |  |   | 8,586   |        
|Provisions for financing and insurance losses (Note 1)                                           |                                                         |                          | 4,315   |         |      |   | 3,959   |         |  |   | 4,185   |        
|                                                                                                 |                                                         |                          |         |         |      |   |         |         | 
|                                                                                                 | Total costs and expenses                                |                          |         | 27,764  |      |   |         | 25,915  |  |   |         | 25,040  |  
|                                                                                                 |                                                         |                          |         |         |      |   |         |         | 
|Net income from transactions with Automotive and Other
    Operations (Note 1)                   |                                                         |                          | (273    | )       |      |   | (297    | )       |  |   | (327    | )      
|                                                                                                 |                                                         |                          |         |         |      |   |         |         | 
|Income before income taxes, equity income and minority interests                                 |                                                         |                          | 4,481   |         |      |   | 4,388   |         |  |   | 2,904   |        
|Income tax expense (Note 10)                                                                     |                                                         |                          | 1,524   |         |      |   | 1,564   |         |  |   | 959     |        
|Equity income (loss) and minority interests                                                      |                                                         |                          | (8      | )       |      |   | (62     | )       |  |   | (67     | )      
|                                                                                                 |                                                         |                          |         |         |      |   |         |         | 
|                                                                                                 | Net income  Financing and Insurance Operations         |                          | $       | 2,949   |      |   | $       | 2,762   |  |   | $       | 1,878   |  
|                                                                                                 |                                                         |                          |         |         |      |   |         |         | 








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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES







CONSOLIDATED BALANCE SHEETS


|                                                                                   |                                      |                                      |                            |         |        |        |         |         |        |        | 
|---------------------------------------------------------------------------------- | ------------------------------------ | ------------------------------------ | -------------------------- | ------- | ------ | ------ | ------- | ------- | ------ | ------ | 
|                                                                                   |                                      | As Restated, See Note 1              |                           
|                                                                                   |                                      | December 31,                         |                           
|                                                                                   |                                      |                                      |                           
|                                                                                   |                                      | 2004                                 |                            |         | 2003   |       
|                                                                                   |                                      |                                      |                            |         |        |       
|                                                                                   |                                      | (Dollars in millions)                |                           
|ASSETS                                                                            
|Cash and cash equivalents (Note 1)                                                 |                                      | $                                    | 35,993                     |         |        | $      | 32,554  |        
|Other marketable securities (Note 5)                                               |                                      |                                      | 21,737                     |         |        |        | 22,215  |        
|                                                                                   |                                      |                                      |                            |         |        |       
|                                                                                   | Total cash and marketable securities |                                      |                            | 57,730  |        |        |         | 54,769  |       
|Finance receivables  net (Note 7)                                                 |                                      |                                      | 199,600                    |         |        |        | 174,769 |        
|Loans held for sale                                                                |                                      |                                      | 19,934                     |         |        |        | 19,609  |        
|Accounts and notes receivable (less allowances)                                    |                                      |                                      | 21,236                     |         |        |        | 20,532  |        
|Inventories (less allowances) (Note 8)                                             |                                      |                                      | 12,247                     |         |        |        | 11,602  |        
|Deferred income taxes (Note 10)                                                    |                                      |                                      | 26,559                     |         |        |        | 27,502  |        
|Net equipment on operating leases (less accumulated
    depreciation) (Note 9)     |                                      |                                      | 34,214                     |         |        |        | 32,751  |        
|Equity in net assets of nonconsolidated affiliates                                 |                                      |                                      | 6,776                      |         |        |        | 6,032   |        
|Property  net (Note 11)                                                           |                                      |                                      | 39,020                     |         |        |        | 37,972  |        
|Intangible assets  net (Notes 1 and 12)                                           |                                      |                                      | 4,925                      |         |        |        | 4,760   |        
|Other assets (Note 13)                                                             |                                      |                                      | 57,680                     |         |        |        | 58,521  |        
|                                                                                   |                                      |                                      |                            |         |        |       
|                                                                                   | Total assets                         |                                      | $                          | 479,921 |        |        | $       | 448,819 |       
|                                                                                   |                                      |                                      |                            |         |        |       
|                                                                                  
|LIABILITIES AND STOCKHOLDERS EQUITY                                              
|Accounts payable (principally trade)                                               |                                      | $                                    | 28,830                     |         |        | $      | 25,422  |        
|Notes and loans payable (Note 15)                                                  |                                      |                                      | 300,279                    |         |        |        | 271,756 |        
|Postretirement benefits other than pensions (Note 16)                              |                                      |                                      | 28,182                     |         |        |        | 36,373  |        
|Pensions (Note 16)                                                                 |                                      |                                      | 9,455                      |         |        |        | 8,024   |        
|Deferred income taxes (Notes 10 and 14)                                            |                                      |                                      | 7,078                      |         |        |        | 7,508   |        
|Accrued expenses and other liabilities (Note 14)                                   |                                      |                                      | 78,340                     |         |        |        | 74,526  |        
|                                                                                   |                                      |                                      |                            |         |        |       
|                                                                                   | Total liabilities                    |                                      |                            | 452,164 |        |        |         | 423,609 |       
|Minority interests                                                                 |                                      |                                      | 397                        |         |        |        | 307     |        
|Stockholders equity(Note 18)                                                      |                                      |                                      |                            |         |        |        |         |        
|$12/3 par value common stock (outstanding, 565,132,021 and
    561,997,725 shares) |                                      |                                      | 942                        |         |        |        | 937     |        
|Capital surplus (principally additional paid-in capital)                           |                                      |                                      | 15,241                     |         |        |        | 15,185  |        
|Retained earnings                                                                  |                                      |                                      | 14,062                     |         |        |        | 12,387  |        
|                                                                                   |                                      |                                      |                            |         |        |       
|                                                                                   |                                      | Subtotal                             |                            |         | 30,245 |        |         |         | 28,509 |       
|Accumulated foreign currency translation adjustments                               |                                      |                                      | (1,194                     | )       |        |        | (1,815  | )      
|Net unrealized gains on derivatives                                                |                                      |                                      | 589                        |         |        |        | 51      |        
|Net unrealized gains on securities                                                 |                                      |                                      | 751                        |         |        |        | 618     |        
|Minimum pension liability adjustment                                               |                                      |                                      | (3,031                     | )       |        |        | (2,460  | )      
|                                                                                   |                                      |                                      |                            |         |        |       
|                                                                                   |                                      | Accumulated other comprehensive loss |                            |         | (2,885 | )      |         |         | (3,606 | )     
|                                                                                   |                                      |                                      |                            |         |        |       
|                                                                                   |                                      |                                      | Total stockholders equity |         |        | 27,360 |         |         |        | 24,903 | 
|                                                                                   |                                      |                                      |                            |         |        |       
|Total liabilities and stockholders equity                                         |                                      | $                                    | 479,921                    |         |        | $      | 448,819 |        
|                                                                                   |                                      |                                      |                            |         |        |       



II-33



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES





SUPPLEMENTAL INFORMATION TO THE CONSOLIDATED BALANCE
SHEETS


|                                                                              |                                                      |                         |         |         |         |   |         |         |         | 
|----------------------------------------------------------------------------- | ---------------------------------------------------- | ----------------------- | ------- | ------- | ------- | - | ------- | ------- | ------- | 
|                                                                              |                                                      | As Restated, See Note 1 |        
|                                                                              |                                                      | December 31,            |        
|                                                                              |                                                      |                         |        
|                                                                              |                                                      | 2004                    |         |         | 2003    |  
|GENERAL MOTORS CORPORATION AND SUBSIDIARIES                                   |                                                      |                         |         |         |         |  
|                                                                              |                                                      | (Dollars in millions)   |        
|ASSETS                                                                       
|Automotive and Other Operations                                               |                                                      |                         |         |         |         |   |         |        
|Cash and cash equivalents (Note 1)                                            |                                                      | $                       | 13,148  |         |         | $ | 14,424  |        
|Marketable securities (Note 5)                                                |                                                      |                         | 6,655   |         |         |   | 9,067   |        
|                                                                              |                                                      |                         |         |         |         |  
|                                                                              | Total cash and marketable securities                 |                         |         | 19,803  |         |   |         | 23,491  |        
|Accounts and notes receivable (less allowances)                               |                                                      |                         | 6,713   |         |         |   | 5,380   |        
|Inventories (less allowances) (Note 8)                                        |                                                      |                         | 11,717  |         |         |   | 10,960  |        
|Net equipment on operating leases (less accumulated
    depreciation)(Note 9) |                                                      |                         | 6,488   |         |         |   | 7,173   |        
|Deferred income taxes and other current assets (Note 10)                      |                                                      |                         | 10,794  |         |         |   | 10,851  |        
|                                                                              |                                                      |                         |         |         |         |  
|                                                                              | Total current assets                                 |                         |         | 55,515  |         |   |         | 57,855  |        
|Equity in net assets of nonconsolidated affiliates                            |                                                      |                         | 6,776   |         |         |   | 6,032   |        
|Property  net (Note 11)                                                      |                                                      |                         | 37,170  |         |         |   | 36,071  |        
|Intangible assets  net (Notes 1 and 12)                                      |                                                      |                         | 1,599   |         |         |   | 1,479   |        
|Deferred income taxes (Note 10)                                               |                                                      |                         | 17,639  |         |         |   | 18,211  |        
|Other assets (Note 13)                                                        |                                                      |                         | 40,844  |         |         |   | 42,262  |        
|                                                                              |                                                      |                         |         |         |         |  
|                                                                              | Total Automotive and Other Operations assets         |                         |         | 159,543 |         |   |         | 161,910 |        
|Financing and Insurance Operations                                            |                                                      |                         |         |         |         |   |         |        
|Cash and cash equivalents (Note 1)                                            |                                                      |                         | 22,845  |         |         |   | 18,130  |        
|Investments in securities (Note 5)                                            |                                                      |                         | 15,082  |         |         |   | 13,148  |        
|Finance receivables  net (Note 7)                                            |                                                      |                         | 199,600 |         |         |   | 174,769 |        
|Loans held for sale                                                           |                                                      |                         | 19,934  |         |         |   | 19,609  |        
|Net equipment on operating leases (less accumulated
    depreciation)(Note 9) |                                                      |                         | 27,726  |         |         |   | 25,578  |        
|Other assets (Note 13)                                                        |                                                      |                         | 35,191  |         |         |   | 35,675  |        
|Net receivable from Automotive and Other Operations (Note 1)                  |                                                      |                         | 2,426   |         |         |   | 1,492   |        
|                                                                              |                                                      |                         |         |         |         |  
|                                                                              | Total Financing and Insurance Operations assets      |                         |         | 322,804 |         |   |         | 288,401 |        
|                                                                              |                                                      |                         |         |         |         |  
|Total assets                                                                  |                                                      | $                       | 482,347 |         |         | $ | 450,311 |        
|                                                                              |                                                      |                         |         |         |         |  
|                                                                             
|LIABILITIES AND STOCKHOLDERS EQUITY                                         
|Automotive and Other Operations                                               |                                                      |                         |         |         |         |   |         |        
|Accounts payable (principally trade)                                          |                                                      | $                       | 24,257  |         |         | $ | 21,542  |        
|Loans payable (Note 15)                                                       |                                                      |                         | 2,062   |         |         |   | 2,813   |        
|Accrued expenses (Note 14)                                                    |                                                      |                         | 46,202  |         |         |   | 45,317  |        
|Net payable to Financing and Insurance Operations (Note 1)                    |                                                      |                         | 2,426   |         |         |   | 1,492   |        
|                                                                              |                                                      |                         |         |         |         |  
|                                                                              | Total current liabilities                            |                         |         | 74,947  |         |   |         | 71,164  |        
|Long-term debt (Note 15)                                                      |                                                      |                         | 30,460  |         |         |   | 29,593  |        
|Postretirement benefits other than pensions (Note 16)                         |                                                      |                         | 23,477  |         |         |   | 32,366  |        
|Pensions (Note 16)                                                            |                                                      |                         | 9,371   |         |         |   | 7,952   |        
|Other liabilities and deferred income taxes (Notes 10 and
    14)             |                                                      |                         | 16,206  |         |         |   | 16,090  |        
|                                                                              |                                                      |                         |         |         |         |  
|                                                                              | Total Automotive and Other Operations liabilities    |                         |         | 154,461 |         |   |         | 157,165 |        
|Financing and Insurance Operations                                            |                                                      |                         |         |         |         |   |         |        
|Accounts payable                                                              |                                                      |                         | 4,573   |         |         |   | 3,880   |        
|Debt (Note 15)                                                                |                                                      |                         | 267,757 |         |         |   | 239,350 |        
|Other liabilities and deferred income taxes (Note 10 and 14)                  |                                                      |                         | 27,799  |         |         |   | 24,706  |        
|                                                                              |                                                      |                         |         |         |         |  
|                                                                              | Total Financing and Insurance Operations liabilities |                         |         | 300,129 |         |   |         | 267,936 |        
|                                                                              |                                                      |                         |         |         |         |  
|                                                                              |                                                      | Total liabilities       |         |         | 454,590 |   |         |         | 425,101 | 
|Minority interests                                                            |                                                      |                         | 397     |         |         |   | 307     |        
|                                                                              | Total stockholders equity                           |                         |         | 27,360  |         |   |         | 24,903  |        
|                                                                              |                                                      |                         |         |         |         |  
|Total liabilities and stockholders equity                                    |                                                      | $                       | 482,347 |         |         | $ | 450,311 |        
|                                                                              |                                                      |                         |         |         |         |  








II-34



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES







CONSOLIDATED STATEMENTS OF CASH FLOWS


|                                                                                                            |                                                               |                                 |         |        |      |   |         |         |   |   |         |        |  
|----------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------- | ------------------------------- | ------- | ------ | ---- | - | ------- | ------- | - | - | ------- | ------ | -
|                                                                                                            |                                                               | As Restated, See Note 1 for the |        
|                                                                                                            |                                                               | Years Ended December 31,        |        
|                                                                                                            |                                                               |                                 |        
|                                                                                                            |                                                               | 2004                            |         |        | 2003 |   |         | 2002    |  
|                                                                                                            |                                                               |                                 |         |        |      |   |         |         |  
|                                                                                                            |                                                               | (Dollars in millions)           |        
|Cash flows from continuing operating activities                                                             |                                                               |                                 |         |        |      |   |         |         |   |   |         |       
|Income from continuing operations                                                                           |                                                               | $                               | 2,804   |        |      | $ | 2,899   |         |   | $ | 1,813   |       
|Adjustments to reconcile income from continuing operations to
    net cash provided by operating activities |                                                               |                                 |         |        |      |   |         |         |   |   |         |       
|                                                                                                            | Depreciation and amortization expenses                        |                                 |         | 14,152 |      |   |         | 13,513  |   |   |         | 11,569 |  
|                                                                                                            | Mortgages: servicing rights and premium amortization          |                                 |         | 1,675  |      |   |         | 1,797   |   |   |         | 4,081  |  
|                                                                                                            | Provision for financing losses                                |                                 |         | 1,944  |      |   |         | 1,721   |   |   |         | 2,153  |  
|                                                                                                            | Net gains on sale of finance receivables                      |                                 |         | (1,312 | )    |   |         | (2,462  | ) |   |         | (1,865 | )
|                                                                                                            | Other postretirement employee benefit (OPEB) expense          |                                 |         | 4,558  |      |   |         | 4,650   |   |   |         | 4,138  |  
|                                                                                                            | OPEB payments                                                 |                                 |         | (3,974 | )    |   |         | (3,536  | ) |   |         | (3,334 | )
|                                                                                                            | VEBA/ 401(h) contributions                                    |                                 |         | (8,618 | )    |   |         | (3,000  | ) |   |         | (1,000 | )
|                                                                                                            | Pension expense                                               |                                 |         | 2,456  |      |   |         | 3,412   |   |   |         | 1,780  |  
|                                                                                                            | Pension contributions                                         |                                 |         | (919   | )    |   |         | (18,168 | ) |   |         | (5,156 | )
|                                                                                                            | Retiree lump sum and vehicle voucher expense, net of payments |                                 |         | (329   | )    |   |         | 923     |   |   |         | (254   | )
|                                                                                                            | Net change in mortgage loans                                  |                                 |         | (2,312 | )    |   |         | (4,124  | ) |   |         | (6,200 | )
|                                                                                                            | Net change in mortgage securities                             |                                 |         | 614    |      |   |         | 233     |   |   |         | (655   | )
|                                                                                                            | Change in other investments and miscellaneous assets          |                                 |         | 83     |      |   |         | 409     |   |   |         | 1,984  |  
|                                                                                                            | Change in other operating assets and liabilities (Note 1)     |                                 |         | (1,644 | )    |   |         | (2,358  | ) |   |         | (3,329 | )
|                                                                                                            | Other                                                         |                                 |         | 178    |      |   |         | 915     |   |   |         | 2,245  |  
|                                                                                                            |                                                               |                                 |         |        |      |   |         |         |  
|Net cash provided by (used in) continuing operating
    activities(Note 1)                                  |                                                               | $                               | 9,356   |        |      | $ | (3,176  | )       |   | $ | 7,970   |       
|                                                                                                            |                                                               |                                 |         |        |      |   |         |         |  
|Cash flows from continuing investing activities                                                             |                                                               |                                 |         |        |      |   |         |         |   |   |         |       
|Expenditures for property                                                                                   |                                                               |                                 | (7,753  | )      |      |   | (7,091  | )       |   |   | (6,871  | )     
|Investments in marketable securities  acquisitions                                                         |                                                               |                                 | (15,278 | )      |      |   | (28,660 | )       |   |   | (39,386 | )     
|Investments in marketable securities  liquidations                                                         |                                                               |                                 | 15,911  |        |      |   | 24,253  |         |   |   | 35,688  |       
|Net change in mortgage servicing rights                                                                     |                                                               |                                 | (326    | )      |      |   | (513    | )       |   |   | (458    | )     
|Increase in finance receivables                                                                             |                                                               |                                 | (38,673 | )      |      |   | (56,119 | )       |   |   | (49,390 | )     
|Proceeds from sale of finance receivables                                                                   |                                                               |                                 | 23,385  |        |      |   | 22,182  |         |   |   | 30,013  |       
|Proceeds from sale of business units                                                                        |                                                               |                                 |        |        |      |   | 4,148   |         |   |   |        |       
|Dividends received from discontinued operations                                                             |                                                               |                                 |        |        |      |   | 275     |         |   |   |        |       
|Operating leases  acquisitions                                                                             |                                                               |                                 | (14,324 | )      |      |   | (11,032 | )       |   |   | (16,070 | )     
|Operating leases  liquidations                                                                             |                                                               |                                 | 7,696   |        |      |   | 9,604   |         |   |   | 13,504  |       
|Investments in companies, net of cash acquired (Note 1)                                                     |                                                               |                                 | (60     | )      |      |   | (201    | )       |   |   | (870    | )     
|Other                                                                                                       |                                                               |                                 | 1,359   |        |      |   | (1,287  | )       |   |   | 828     |       
|                                                                                                            |                                                               |                                 |         |        |      |   |         |         |  
|Net cash used in continuing investing activities(Note 1)                                                    |                                                               |                                 | (28,063 | )      |      |   | (44,441 | )       |   |   | (33,012 | )     
|                                                                                                            |                                                               |                                 |         |        |      |   |         |         |  
|Cash flows from continuing financing activities                                                             |                                                               |                                 |         |        |      |   |         |         |   |   |         |       
|Net increase in loans payable                                                                               |                                                               |                                 | 2,192   |        |      |   | 235     |         |   |   | 770     |       
|Long-term debt  borrowings                                                                                 |                                                               |                                 | 73,511  |        |      |   | 97,391  |         |   |   | 51,411  |       
|Long-term debt  repayments                                                                                 |                                                               |                                 | (57,822 | )      |      |   | (38,962 | )       |   |   | (24,365 | )     
|Repurchases of common and preference stocks                                                                 |                                                               |                                 |        |        |      |   |        |         |   |   | (97     | )     
|Proceeds from issuing common stocks                                                                         |                                                               |                                 |        |        |      |   |        |         |   |   | 62      |       
|Proceeds from sales of treasury stocks                                                                      |                                                               |                                 |        |        |      |   | 60      |         |   |   | 19      |       
|Cash dividends paid to stockholders                                                                         |                                                               |                                 | (1,129  | )      |      |   | (1,121  | )       |   |   | (1,121  | )     
|Other                                                                                                       |                                                               |                                 | 4,723   |        |      |   | 1,319   |         |   |   | 333     |       
|                                                                                                            |                                                               |                                 |         |        |      |   |         |         |  
|Net cash provided by continuing financing activities                                                        |                                                               |                                 | 21,475  |        |      |   | 58,922  |         |   |   | 27,012  |       
|                                                                                                            |                                                               |                                 |         |        |      |   |         |         |  
|Effect of exchange rate changes on cash and cash equivalents                                                |                                                               |                                 | 671     |        |      |   | 929     |         |   |   | 495     |       
|                                                                                                            |                                                               |                                 |         |        |      |   |         |         |  
|Net increase in cash and cash equivalents                                                                   |                                                               |                                 | 3,439   |        |      |   | 12,234  |         |   |   | 2,465   |       
|Cash and cash equivalents at beginning of the year                                                          |                                                               |                                 | 32,554  |        |      |   | 20,320  |         |   |   | 17,855  |       
|                                                                                                            |                                                               |                                 |         |        |      |   |         |         |  
|Cash and cash equivalents at end of the year                                                                |                                                               | $                               | 35,993  |        |      | $ | 32,554  |         |   | $ | 20,320  |       
|                                                                                                            |                                                               |                                 |         |        |      |   |         |         |  
|Net cash provided by operating activities of discontinued
    operations                                    |                                                               | $                               |        |        |      | $ | 846     |         |   | $ | 412     |       
|Net cash used in investing activities of discontinued operations                                            |                                                               |                                 |        |        |      |   | (629    | )       |   |   | (387    | )     
|Net cash provided by financing activities of discontinued
    operations                                    |                                                               |                                 |        |        |      |   | 918     |         |   |   | 356     |       
|                                                                                                            |                                                               |                                 |         |        |      |   |         |         |  
|Net increase in cash and cash equivalents of discontinued
    operations                                    |                                                               |                                 |        |        |      |   | 1,135   |         |   |   | 381     |       
|Cash retained by discontinued operations upon disposal                                                      |                                                               |                                 |         |        |      |   | (2,216  | )       |   |   |        |       
|Cash reclassified as Assets of Discontinued Operations at
    beginning of the year                         |                                                               |                                 |        |        |      |   | 1,081   |         |   |   | 700     |       
|                                                                                                            |                                                               |                                 |         |        |      |   |         |         |  
|Cash reclassified as Assets of Discontinued Operations at end of
    the year                               |                                                               | $                               |        |        |      | $ |        |         |   | $ | 1,081   |       
|                                                                                                            |                                                               |                                 |         |        |      |   |         |         |  



II-35



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES





SUPPLEMENTAL INFORMATION TO THE CONSOLIDATED STATEMENTS OF
CASH FLOWS


|                                                                                                                   |                                                                                         |                                                          |        |        |           |   |         |            |   |   |           |         |   |            |         |        |           |   |        |        |   |   |         |        |  
|------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------- | -------------------------------------------------------- | ------ | ------ | --------- | - | ------- | ---------- | - | - | --------- | ------- | - | ---------- | ------- | ------ | --------- | - | ------ | ------ | - | - | ------- | ------ | -
|                                                                                                                   |                                                                                         | As Restated, See Note 1 for the Years Ended December 31, |       
|                                                                                                                   |                                                                                         |                                                          |       
|                                                                                                                   |                                                                                         | 2004                                                     |        |        | 2003      |   |         | 2002       |  
|                                                                                                                   |                                                                                         |                                                          |        |        |           |   |         |            |  
|                                                                                                                   |                                                                                         | Automotive                                               |        |        | Financing |   |         | Automotive |   |   | Financing |         |   | Automotive |         |        | Financing |  
|                                                                                                                   |                                                                                         | and Other                                                |        |        | and       |   |         | and Other  |   |   | and       |         |   | and Other  |         |        | and       |  
|                                                                                                                   |                                                                                         | Operations                                               |        |        | Insurance |   |         | Operations |   |   | Insurance |         |   | Operations |         |        | Insurance |  
|                                                                                                                   |                                                                                         |                                                          |        |        |           |   |         |            |   |   |           |         |   |            |         |        |           |  
|                                                                                                                   |                                                                                         | (Dollars in millions)                                    |       
|Cash flows from continuing operating activities                                                                    |                                                                                         |                                                          |        |        |           |   |         |            |   |   |           |         |   |            |         |        |           |   |        |        |   |   |         |       
|Income (loss) from continuing operations                                                                           |                                                                                         | $                                                        | (145   | )      |           | $ | 2,949   |            |   | $ | 137       |         |   | $          | 2,762   |        |           | $ | (65    | )      |   | $ | 1,878   |       
|Adjustments to reconcile income (loss) from continuing
    operations to net cash provided by operating activities |                                                                                         |                                                          |        |        |           |   |         |            |   |   |           |         |   |            |         |        |           |   |        |        |   |   |         |       
|                                                                                                                   | Depreciation and amortization expenses                                                  |                                                          |        | 8,629  |           |   |         | 5,523      |   |   |           | 7,946   |   |            |         | 5,567  |           |   |        | 6,324  |   |   |         | 5,245  |  
|                                                                                                                   | Mortgages: servicing rights and premium amortization                                    |                                                          |        |       |           |   |         | 1,675      |   |   |           |        |   |            |         | 1,797  |           |   |        |       |   |   |         | 4,081  |  
|                                                                                                                   | Provision for financing losses                                                          |                                                          |        |       |           |   |         | 1,944      |   |   |           |        |   |            |         | 1,721  |           |   |        |       |   |   |         | 2,153  |  
|                                                                                                                   | Net gains on sale of finance receivables                                                |                                                          |        |       |           |   |         | (1,312     | ) |   |           |        |   |            |         | (2,462 | )         |   |        |       |   |   |         | (1,865 | )
|                                                                                                                   | Postretirement benefits other than pensions, net of payments and
    VEBA contributions |                                                          |        | (8,048 | )         |   |         | 14         |   |   |           | (1,906  | ) |            |         | 20     |           |   |        | (211   | ) |   |         | 15     |  
|                                                                                                                   | Pension expense, net of contributions                                                   |                                                          |        | 1,174  |           |   |         | 34         |   |   |           | (13,869 | ) |            |         | 36     |           |   |        | (3,639 | ) |   |         | 9      |  
|                                                                                                                   | Net change in mortgage loans                                                            |                                                          |        |       |           |   |         | (2,312     | ) |   |           |        |   |            |         | (4,124 | )         |   |        |       |   |   |         | (6,200 | )
|                                                                                                                   | Net change in mortgage securities                                                       |                                                          |        |       |           |   |         | 614        |   |   |           |        |   |            |         | 233    |           |   |        |       |   |   |         | (655   | )
|                                                                                                                   | Change in other investments and miscellaneous assets                                    |                                                          |        | (22    | )         |   |         | 105        |   |   |           | (207    | ) |            |         | 616    |           |   |        | 2,134  |   |   |         | (150   | )
|                                                                                                                   | Change in other operating assets and liabilities (Note 1)                               |                                                          |        | (268   | )         |   |         | (1,376     | ) |   |           | 2,921   |   |            |         | (5,279 | )         |   |        | 3,866  |   |   |         | (7,195 | )
|                                                                                                                   | Other                                                                                   |                                                          |        | (102   | )         |   |         | 280        |   |   |           | (348    | ) |            |         | 1,263  |           |   |        | (398   | ) |   |         | 2,643  |  
|                                                                                                                   |                                                                                         |                                                          |        |        |           |   |         |            |   |   |           |         |   |            |         |        |           |  
|Net cash provided by (used in) continuing operating
    activities                                                 |                                                                                         | $                                                        | 1,218  |        |           | $ | 8,138   |            |   | $ | (5,326    | )       |   | $          | 2,150   |        |           | $ | 8,011  |        |   | $ | (41     | )     
|                                                                                                                   |                                                                                         |                                                          |        |        |           |   |         |            |   |   |           |         |   |            |         |        |           |  
|Cash flows from continuing investing activities                                                                    |                                                                                         |                                                          |        |        |           |   |         |            |   |   |           |         |   |            |         |        |           |   |        |        |   |   |         |       
|Expenditures for property                                                                                          |                                                                                         |                                                          | (7,284 | )      |           |   | (469    | )          |   |   | (6,616    | )       |   |            | (475    | )      |           |   | (6,414 | )      |   |   | (457    | )     
|Investments in marketable securities  acquisitions                                                                |                                                                                         |                                                          | (2,209 | )      |           |   | (13,069 | )          |   |   | (13,138   | )       |   |            | (15,522 | )      |           |   | (2,228 | )      |   |   | (37,158 | )     
|Investments in marketable securities  liquidations                                                                |                                                                                         |                                                          | 4,609  |        |           |   | 11,302  |            |   |   | 7,109     |         |   |            | 17,144  |        |           |   | 873    |        |   |   | 34,815  |       
|Net change in mortgage servicing rights                                                                            |                                                                                         |                                                          |       |        |           |   | (326    | )          |   |   |          |         |   |            | (513    | )      |           |   |       |        |   |   | (458    | )     
|Increase in finance receivables                                                                                    |                                                                                         |                                                          |       |        |           |   | (38,673 | )          |   |   |          |         |   |            | (56,119 | )      |           |   |       |        |   |   | (49,390 | )     
|Proceeds from sales of finance receivables                                                                         |                                                                                         |                                                          |       |        |           |   | 23,385  |            |   |   |          |         |   |            | 22,182  |        |           |   |       |        |   |   | 30,013  |       
|Proceeds from sale of business units                                                                               |                                                                                         |                                                          |       |        |           |   |        |            |   |   | 4,148     |         |   |            |        |        |           |   |       |        |   |   |        |       
|Dividends received from discontinued operations                                                                    |                                                                                         |                                                          |       |        |           |   |        |            |   |   | 275       |         |   |            |        |        |           |   |       |        |   |   |        |       
|Operating leases  acquisitions                                                                                    |                                                                                         |                                                          |       |        |           |   | (14,324 | )          |   |   |          |         |   |            | (11,032 | )      |           |   |       |        |   |   | (16,070 | )     
|Operating leases  liquidations                                                                                    |                                                                                         |                                                          |       |        |           |   | 7,696   |            |   |   |          |         |   |            | 9,604   |        |           |   |       |        |   |   | 13,504  |       
|Investments in companies, net of cash acquired (Note 1)                                                            |                                                                                         |                                                          | (48    | )      |           |   | (12     | )          |   |   | (57       | )       |   |            | (144    | )      |           |   | (688   | )      |   |   | (182    | )     
|Net investing activity with Financing and Insurance Operations                                                     |                                                                                         |                                                          | 1,500  |        |           |   |        |            |   |   | 1,000     |         |   |            |        |        |           |   | 400    |        |   |   |        |       
|Other                                                                                                              |                                                                                         |                                                          | 882    |        |           |   | 477     |            |   |   | 332       |         |   |            | (1,619  | )      |           |   | 1,513  |        |   |   | (685    | )     
|                                                                                                                   |                                                                                         |                                                          |        |        |           |   |         |            |   |   |           |         |   |            |         |        |           |  
|Net cash used in continuing investing activities                                                                   |                                                                                         |                                                          | (2,550 | )      |           |   | (24,013 | )          |   |   | (6,947    | )       |   |            | (36,494 | )      |           |   | (6,544 | )      |   |   | (26,068 | )     
|                                                                                                                   |                                                                                         |                                                          |        |        |           |   |         |            |   |   |           |         |   |            |         |        |           |  
|Cash flows from continuing financing activities                                                                    |                                                                                         |                                                          |        |        |           |   |         |            |   |   |           |         |   |            |         |        |           |   |        |        |   |   |         |       
|Net (decrease) increase in loans payable                                                                           |                                                                                         |                                                          | (803   | )      |           |   | 2,995   |            |   |   | (234      | )       |   |            | 469     |        |           |   | (335   | )      |   |   | 1,105   |       
|Long-term debt  borrowings                                                                                        |                                                                                         |                                                          | 758    |        |           |   | 72,753  |            |   |   | 14,785    |         |   |            | 82,606  |        |           |   | 4,562  |        |   |   | 46,849  |       
|Long-term debt  repayments                                                                                        |                                                                                         |                                                          | (79    | )      |           |   | (57,743 | )          |   |   | (19       | )       |   |            | (38,943 | )      |           |   | (145   | )      |   |   | (24,220 | )     
|Net financing activity with Automotive and Other Operations                                                        |                                                                                         |                                                          |       |        |           |   | (1,500  | )          |   |   |          |         |   |            | (1,000  | )      |           |   |       |        |   |   | (400    | )     
|Repurchases of common and preference stocks                                                                        |                                                                                         |                                                          |       |        |           |   |        |            |   |   |          |         |   |            |        |        |           |   | (97    | )      |   |   |        |       
|Proceeds from issuing common stocks                                                                                |                                                                                         |                                                          |       |        |           |   |        |            |   |   |          |         |   |            |        |        |           |   | 62     |        |   |   |        |       
|Proceeds from sales of treasury stocks                                                                             |                                                                                         |                                                          |       |        |           |   |        |            |   |   | 60        |         |   |            |        |        |           |   | 19     |        |   |   |        |       
|Cash dividends paid to stockholders                                                                                |                                                                                         |                                                          | (1,129 | )      |           |   |        |            |   |   | (1,121    | )       |   |            |        |        |           |   | (1,121 | )      |   |   |        |       
|Other                                                                                                              |                                                                                         |                                                          |       |        |           |   | 4,723   |            |   |   |          |         |   |            | 1,319   |        |           |   |       |        |   |   | 333     |       
|                                                                                                                   |                                                                                         |                                                          |        |        |           |   |         |            |   |   |           |         |   |            |         |        |           |  
|Net cash provided by (used in) continuing financing
    activities                                                 |                                                                                         |                                                          | (1,253 | )      |           |   | 21,228  |            |   |   | 13,471    |         |   |            | 44,451  |        |           |   | 2,945  |        |   |   | 23,667  |       
|                                                                                                                   |                                                                                         |                                                          |        |        |           |   |         |            |   |   |           |         |   |            |         |        |           |  
|Effect of exchange rate changes on cash and cash equivalents                                                       |                                                                                         |                                                          | 375    |        |           |   | 296     |            |   |   | 661       |         |   |            | 268     |        |           |   | 485    |        |   |   | 10      |       
|Net transactions with Automotive/ Financing Operations                                                             |                                                                                         |                                                          | 934    |        |           |   | (934    | )          |   |   | 403       |         |   |            | (403    | )      |           |   | (467   | )      |   |   | 467     |       
|                                                                                                                   |                                                                                         |                                                          |        |        |           |   |         |            |   |   |           |         |   |            |         |        |           |  
|Net increase (decrease) in cash and cash equivalents                                                               |                                                                                         |                                                          | (1,276 | )      |           |   | 4,715   |            |   |   | 2,262     |         |   |            | 9,972   |        |           |   | 4,430  |        |   |   | (1,965  | )     
|Cash and cash equivalents at beginning of the year                                                                 |                                                                                         |                                                          | 14,424 |        |           |   | 18,130  |            |   |   | 12,162    |         |   |            | 8,158   |        |           |   | 7,732  |        |   |   | 10,123  |       
|                                                                                                                   |                                                                                         |                                                          |        |        |           |   |         |            |   |   |           |         |   |            |         |        |           |  
|Cash and cash equivalents at end of the year                                                                       |                                                                                         | $                                                        | 13,148 |        |           | $ | 22,845  |            |   | $ | 14,424    |         |   | $          | 18,130  |        |           | $ | 12,162 |        |   | $ | 8,158   |       
|                                                                                                                   |                                                                                         |                                                          |        |        |           |   |         |            |   |   |           |         |   |            |         |        |           |  








II-36



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES







CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY


For the Years Ended December 31, 2004, 2003, and 2002


As restated, see Note 1


|                                       |                                    |                                          |                            |                      |         |   |               |        |   |             |          |       |         |               |         |       |               |   |         |   |   |         |        |       |   |         |   | 
|-------------------------------------- | ---------------------------------- | ---------------------------------------- | -------------------------- | -------------------- | ------- | - | ------------- | ------ | - | ----------- | -------- | ----- | ------- | ------------- | ------- | ----- | ------------- | - | ------- | - | - | ------- | ------ | ----- | - | ------- | - | 
|                                       |                                    |                                          |                            |                      |         |   |               |        |   | Accumulated |          |       |        
|                                       |                                    | Total                                    |                            |                      |         |   | Comprehensive |        |   |             |          | Other |         |               | Total   |      
|                                       |                                    | Capital                                  |                            |                      | Capital |   |               | Income |   |             | Retained |       |         | Comprehensive |         |       | Stockholders |  
|                                       |                                    | Stock                                    |                            |                      | Surplus |   |               | (Loss) |   |             | Earnings |       |         | Loss          |         |       | Equity        |  
|                                       |                                    |                                          |                            |                      |         |   |               |        |   |             |          |       |         |               |         |       |               |  
|                                       |                                    | (Dollars in millions)                    |                           
|Balance at January 1, 2002             |                                    | $                                        | 1,020                      |                      |         | $ | 21,519        |        |   |             |          |       |         | $             | 9,223   |       |               | $ | (12,295 | ) |   | $       | 19,467 |      
|Shares reacquired                      |                                    |                                          |                           |                      |         |   | (2,086        | )      |   |             |          |       |         |               |        |       |               |   |        |   |   |         | (2,086 | )    
|Shares issued                          |                                    |                                          | 12                         |                      |         |   | 2,150         |        |   |             |          |       |         |               |        |       |               |   |        |   |   |         | 2,162  |      
|Comprehensive income:                  |                                    |                                          |                            |                      |         |   |               |        |   |             |          |       |         |               |         |       |               |   |         |   |   |         |        |      
|                                       | Net income                         |                                          |                            |                     |         |   |               |       |   |             | $        | 1,574 |         |               |         | 1,574 |               |   |         |  |   |         |        | 1,574 |  
|                                       |                                    |                                          |                            |                      |         |   |               |        |   |             |          |       |         |               |         |       |               |  
|                                       | Other comprehensive income (loss): |                                          |                            |                      |         |   |               |        |   |             |          |       |         |               |         |       |               |   |         |   |   |         |        |       |  
|                                       |                                    | Foreign currency translation adjustments |                            |                      |        |   |               |        |  |             |          |       | 135     |               |         |       |              |   |         |   |  |         |        |       |  |        
|                                       |                                    | Unrealized gains on derivatives          |                            |                      |        |   |               |        |  |             |          |       | 102     |               |         |       |              |   |         |   |  |         |        |       |  |        
|                                       |                                    | Unrealized losses on securities          |                            |                      |        |   |               |        |  |             |          |       | (140    | )             |         |       |              |   |         |   |  |         |        |       |  |        
|                                       |                                    | Minimum pension liability adjustment     |                            |                      |        |   |               |        |  |             |          |       | (13,634 | )             |         |       |              |   |         |   |  |         |        |       |  |        
|                                       |                                    |                                          |                            |                      |         |   |               |        |   |             |          |       |         |               |         |       |               |  
|                                       |                                    |                                          | Other comprehensive loss   |                      |         |  |               |        |   |            |          |       |         | (13,537       | )       |       |               |  |         |   |   | (13,537 | )      |       |   | (13,537 | )
|                                       |                                    |                                          |                            |                      |         |   |               |        |   |             |          |       |         |               |         |       |               |  
|                                       |                                    |                                          |                            | Comprehensive loss   |         |   |              |        |   |             |         |       |         | $             | (11,963 | )     |               |   |        |   |   |         |       |       |   |         |  | 
|                                       |                                    |                                          |                            |                      |         |   |               |        |   |             |          |       |         |               |         |       |               |  
|Cash dividends                         |                                    |                                          |                           |                      |         |   |              |        |   |             |          |       |         |               | (1,168  | )     |               |   |        |   |   |         | (1,168 | )    
|                                       |                                    |                                          |                            |                      |         |   |               |        |   |             |          |       |         |               |         |       |               |  
|Balance at December 31, 2002           |                                    | $                                        | 1,032                      |                      |         | $ | 21,583        |        |   |             |          |       |         | $             | 9,629   |       |               | $ | (25,832 | ) |   | $       | 6,412  |      
|Shares issued                          |                                    |                                          | 16                         |                      |         |   | 1,324         |        |   |             |          |       |         |               |        |       |               |   |        |   |   |         | 1,340  |      
|Comprehensive income:                  |                                    |                                          |                            |                      |         |   |               |        |   |             |          |       |         |               |         |       |               |   |         |   |   |         |        |      
|                                       | Net income                         |                                          |                            |                     |         |   |               |       |   |             | $        | 3,859 |         |               |         | 3,859 |               |   |         |  |   |         |        | 3,859 |  
|                                       |                                    |                                          |                            |                      |         |   |               |        |   |             |          |       |         |               |         |       |               |  
|                                       | Other comprehensive income:        |                                          |                            |                      |         |   |               |        |   |             |          |       |         |               |         |       |               |   |         |   |   |         |        |       |  
|                                       |                                    | Foreign currency translation adjustments |                            |                      |        |   |               |        |  |             |          |       | 969     |               |         |       |              |   |         |   |  |         |        |       |  |        
|                                       |                                    | Unrealized gains on derivatives          |                            |                      |        |   |               |        |  |             |          |       | 256     |               |         |       |              |   |         |   |  |         |        |       |  |        
|                                       |                                    | Unrealized gains on securities           |                            |                      |        |   |               |        |  |             |          |       | 246     |               |         |       |              |   |         |   |  |         |        |       |  |        
|                                       |                                    | Minimum pension liability adjustment     |                            |                      |        |   |               |        |  |             |          |       | 20,755  |               |         |       |              |   |         |   |  |         |        |       |  |        
|                                       |                                    |                                          |                            |                      |         |   |               |        |   |             |          |       |         |               |         |       |               |  
|                                       |                                    |                                          | Other comprehensive income |                      |         |  |               |        |   |            |          |       |         | 22,226        |         |       |               |  |         |   |   | 22,226  |        |       |   | 22,226  |  
|                                       |                                    |                                          |                            |                      |         |   |               |        |   |             |          |       |         |               |         |       |               |  
|                                       |                                    |                                          |                            | Comprehensive income |         |   |              |        |   |             |         |       |         | $             | 26,085  |       |               |   |        |   |   |         |       |       |   |         |  | 
|                                       |                                    |                                          |                            |                      |         |   |               |        |   |             |          |       |         |               |         |       |               |  
|Effect of Hughes transactions (Note 2) |                                    |                                          | (111                       | )                    |         |   | (8,056        | )      |   |             |          |       |         |               |         |       |               |   |         |   |   |         | (8,167 | )    
|Stock Options                          |                                    |                                          |                            |                      |         |   | 334           |        |   |             |          |       |         |               |         |       |               |   |         |   |   |         | 334    |      
|Delphi spin-off adjustment(a)          |                                    |                                          |                           |                      |         |   |              |        |   |             |          |       |         |               | 20      |       |               |   |        |   |   |         | 20     |      
|Cash dividends                         |                                    |                                          |                           |                      |         |   |              |        |   |             |          |       |         |               | (1,121  | )     |               |   |        |   |   |         | (1,121 | )    
|                                       |                                    |                                          |                            |                      |         |   |               |        |   |             |          |       |         |               |         |       |               |  
|Balance at December 31, 2003           |                                    | $                                        | 937                        |                      |         | $ | 15,185        |        |   |             |          |       |         | $             | 12,387  |       |               | $ | (3,606  | ) |   | $       | 24,903 |      
|Shares issued                          |                                    |                                          | 5                          |                      |         |   | 138           |        |   |             |          |       |         |               |        |       |               |   |        |   |   |         | 143    |      
|Comprehensive income:                  |                                    |                                          |                            |                      |         |   |               |        |   |             |          |       |         |               |         |       |               |   |         |   |   |         |        |      
|                                       | Net income                         |                                          |                            |                     |         |   |               |       |   |             | $        | 2,804 |         |               |         | 2,804 |               |   |         |  |   |         |        | 2,804 |  
|                                       |                                    |                                          |                            |                      |         |   |               |        |   |             |          |       |         |               |         |       |               |  
|                                       | Other comprehensive income:        |                                          |                            |                      |         |   |               |        |   |             |          |       |         |               |         |       |               |   |         |   |   |         |        |       |  
|                                       |                                    | Foreign currency translation adjustments |                            |                      |        |   |               |        |  |             |          |       | 621     |               |         |       |              |   |         |   |  |         |        |       |  |        
|                                       |                                    | Unrealized gains on derivatives          |                            |                      |        |   |               |        |  |             |          |       | 538     |               |         |       |              |   |         |   |  |         |        |       |  |        
|                                       |                                    | Unrealized gains on securities           |                            |                      |        |   |               |        |  |             |          |       | 133     |               |         |       |              |   |         |   |  |         |        |       |  |        
|                                       |                                    | Minimum pension liability adjustment     |                            |                      |        |   |               |        |  |             |          |       | (571    | )             |         |       |              |   |         |   |  |         |        |       |  |        
|                                       |                                    |                                          |                            |                      |         |   |               |        |   |             |          |       |         |               |         |       |               |  
|                                       |                                    |                                          | Other comprehensive income |                      |         |  |               |        |   |            |          |       |         | 721           |         |       |               |  |         |   |   | 721     |        |       |   | 721     |  
|                                       |                                    |                                          |                            |                      |         |   |               |        |   |             |          |       |         |               |         |       |               |  
|                                       |                                    |                                          |                            | Comprehensive income |         |   |              |        |   |             |         |       |         | $             | 3,525   |       |               |   |        |   |   |         |       |       |   |         |  | 
|                                       |                                    |                                          |                            |                      |         |   |               |        |   |             |          |       |         |               |         |       |               |  
|Stock Options                          |                                    |                                          |                            |                      |         |   | (82           | )      |   |             |          |       |         |               |         |       |               |   |         |   |   |         | (82    | )    
|Cash dividends                         |                                    |                                          |                           |                      |         |   |              |        |   |             |          |       |         |               | (1,129  | )     |               |   |        |   |   |         | (1,129 | )    
|                                       |                                    |                                          |                            |                      |         |   |               |        |   |             |          |       |         |               |         |       |               |  
|Balance at December 31, 2004           |                                    | $                                        | 942                        |                      |         | $ | 15,241        |        |   |             |          |       |         | $             | 14,062  |       |               | $ | (2,885  | ) |   | $       | 27,360 |      
|                                       |                                    |                                          |                            |                      |         |   |               |        |   |             |          |       |         |               |         |       |               |  






|    |  |                                                                                           
|--- |  | ------------------------------------------------------------------------------------------
|(a) |  | Write off of deferred taxes related to the 1999 spin off of
    Delphi Automotive Systems.



II-37



---



##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES







NOTES TO CONSOLIDATED FINANCIAL STATEMENTS







|        |                                
|------- | -------------------------------
|NOTE 1. | Significant Accounting Policies



| |                                    
| | -----------------------------------
| | Restatement of Financial Statements

8-K


|                                      |                                           |                                |       |     |              |   |       |      |   |   |       |     |   |   |       |      |   | 
|------------------------------------- | ----------------------------------------- | ------------------------------ | ----- | --- | ------------ | - | ----- | ---- | - | - | ----- | --- | - | - | ----- | ---- | - | 
|                                      |                                           | Income from Continuing         |       |     |             
|                                      |                                           | Operations for the Years Ended |       |     | Retained     |  
|                                      |                                           | December 31,                   |       |     | Earnings at  |  
|                                      |                                           |                                |       |     | December 31, |  
|                                      |                                           | 2004                           |       |     | 2003         |   |       | 2002 |   |   | 2001  |    
|                                      |                                           |                                |       |     |              |   |       |      |   |   |       |    
|                                      |                                           | (Dollars in millions)          |      
|As originally reported:               |                                           | $                              | 2,805 |     |              | $ | 2,862 |      |   |   | 1,975 |     |   | $ | 9,463 |     
|Pre-tax adjustments for:              |                                           |                                |       |     |              |   |       |      |   |   |       |     |   |   |       |     
|                                      | Supplier credits(a)                       |                                |       | (26 | )            |   |       | 7    |   |   |       | (69 | ) |   |       | (460 | )
|                                      | Transactions with former subsidiary       |                                |       |     |              |   |       |      |   |   |       |     |   |   |       |      |  
|                                      |                                           | Settlement agreement(b)        |       |     |             |   |       |      |  |   |       |     |  |   |       |      |  | 
|                                      |                                           | Contractual adjustment(c)      |       |     |             |   |       |      |  |   |       |     |  |   |       |      |  | 
|                                      | Benefit plans economic assumptions(d)     |                                |       | 9   |              |   |       | (51  | ) |   |       | (30 | ) |   |       |     |  
|                                      | Precious metals inventory transactions(e) |                                |       |    |              |   |       |     |   |   |       |    |   |   |       |     |  
|                                      |                                           |                                |       |     |              |   |       |      |   |   |       |    
|Total                                 |                                           |                                | (17   | )   |              |   | (44   | )    |   |   | (99   | )   |   |   | (460  | )   
|                                      | Related tax effects                       |                                |       | 6   |              |   |       | 17   |   |   |       | 18  |   |   |       | 193  |  
|                                      |                                           |                                |       |     |              |   |       |      |   |   |       |    
|Total of above adjustments net of tax |                                           |                                | (11   | )   |              |   | (27   | )    |   |   | (81   | )   |   |   | (267  | )   
|Other, net-of-tax(f)                  |                                           |                                | 10    |     |              |   | 64    |      |   |   | (81   | )   |   |   | 27    |     
|                                      |                                           |                                |       |     |              |   |       |      |   |   |       |    
|As restated                           |                                           | $                              | 2,804 |     |              | $ | 2,899 |      |   | $ | 1,813 |     |   | $ | 9,223 |     
|                                      |                                           |                                |       |     |              |   |       |      |   |   |       |    




|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | GM erroneously recorded as a reduction to cost of sales certain
    payments and credits received from suppliers prior to the
    completion of the earnings process. GM has concluded that the
    payments and credits received were associated with agreements
    for the award of future services or products or other rights and
    privileges and should be recorded when subsequently earned. The
    effect of these errors was $(26) million, $7 million,
    $(69) million, $(405) million, and $(52) million
    for the years ended December 31, 2004, 2003, 2002, 2001 and
    2000, respectively. Accordingly, after restatement, a deferred
    credit of approximately $548 million exists as of
    December 31, 2004, which will be recognized as a reduction
    of cost of sales in future periods.
|   
|(b) |  | In 2001, GM erroneously recorded, as a reduction in
    stockholders equity, a $(55) million settlement with
    Delphi Corporation (Delphi), a former subsidiary, in the form of
    a credit to be used against amounts owed by Delphi to GM in
    relation to pension, OPEB, and other employment related benefits
    of former GM employees who had transferred to Delphi. This item
    has now been recorded as a warranty expense in that period.                                                                                                                                                                                                                                                                                                                                                              
|   
|(c) |  | In 2001, GM erroneously recorded $18 million of expense
    related to a contract involving Delphis Flint East,
    Michigan, plant that has now been recorded as an expense in 2000.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

II-38



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|        |                                            
|------- | -------------------------------------------
|NOTE 1. | Significant Accounting Policies (continued)



| |                                                
| | -----------------------------------------------
| | Restatement of Financial Statements (continued)



|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(d) |  | GM erroneously calculated the anticipated effect of cost
    reduction initiatives on its expected health-care cost trend
    rate for 2002 and, as a result, understated that rate.
    Accordingly, GMs OPEB expense was misstated by
    $9 million, $(51) million, and $(30) million in
    the years ended 2004, 2003 and 2002, respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   
|(e) |  | In 2000, GM erroneously recognized a $27 million gain on
    disposal of precious metals inventory that has now been recorded
    as a financing transaction because GM had an obligation to
    repurchase the inventory in 2001.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   
|(f) |  | For all periods covered by this filing, GM has recorded other
    accounting adjustments it has identified that were not recorded
    in the proper period. These
    out-of-period
    adjustments were not considered material to the financial
    statements as originally reported. However, as part of the
    restatement, they are being recognized in the period in which
    the underlying transactions occurred. The effect of these
    adjustments,
    net-of-tax, was
    $10 million, $64 million, $(81) million,
    $78 million, and $(20) million for the years ended
    December 31, 2004, 2003, 2002, 2001 and 2000, respectively.
    Of the $(81) million adjustment in 2002, $(55) million
    relates to engineering and facility-related expenses improperly
    recorded in years subsequent to 2002; and with respect to the
    $78 million adjustment in 2001, $65 million relates to
    the inappropriate recognition of postemployment benefit
    liabilities for employees at the Spring Hill, Tennessee plant.



|                                                                   |                             |                                                          |         |           |               |   |         |              |           |   |               |        |   |              |         |        |               |   |         |        |   |   |         |        |  
|------------------------------------------------------------------ | --------------------------- | -------------------------------------------------------- | ------- | --------- | ------------- | - | ------- | ------------ | --------- | - | ------------- | ------ | - | ------------ | ------- | ------ | ------------- | - | ------- | ------ | - | - | ------- | ------ | -
|                                                                   |                             | Statement of Cash Flows for the Years Ended December 31, |        
|                                                                   |                             |                                                          |        
|                                                                   |                             | 2004                                                     |         |           | 2003          |   |         | 2002         |          
|                                                                   |                             |                                                          |         |           |               |   |         |              |          
|                                                                   |                             |                                                          |         | Financing |               |   |         |              | Financing |   |               |        |   | Financing    |        
|                                                                   |                             | Consolidated                                             |         |           | and Insurance |   |         | Consolidated |           |   | and Insurance |        |   | Consolidated |         |        | and Insurance |  
|                                                                   |                             |                                                          |         |           |               |   |         |              |           |   |               |        |   |              |         |        |               |  
|                                                                   |                             | (Dollars in millions)                                    |        
|Net cash provided by (used in) continuing operating
    activities |                             |                                                          |         |           |               |   |         |              |           |   |               |        |   |              |         |        |               |   |         |        |   |   |         |       
|As originally reported                                             |                             | $                                                        | 13,061  |           |               | $ | 11,843  |              |           | $ | 2,956         |        |   | $            | 8,282   |        |               | $ | 11,075  |        |   | $ | 3,064   |       
|Adjustments for:                                                   |                             |                                                          |         |           |               |   |         |              |           |   |               |        |   |              |         |        |               |   |         |        |   |   |         |       
|                                                                   | Mortgage related activities |                                                          |         | (3,705    | )             |   |         | (3,705       | )         |   |               | (6,132 | ) |              |         | (6,132 | )             |   |         | (3,105 | ) |   |         | (3,105 | )
|                                                                   |                             |                                                          |         |           |               |   |         |              |           |   |               |        |   |              |         |        |               |  
|As restated                                                        |                             | $                                                        | 9,356   |           |               | $ | 8,138   |              |           | $ | (3,176        | )      |   | $            | 2,150   |        |               | $ | 7,970   |        |   | $ | (41     | )     
|                                                                   |                             |                                                          |         |           |               |   |         |              |           |   |               |        |   |              |         |        |               |  
|Net cash provided by (used in) continuing investing
    activities |                             |                                                          |         |           |               |   |         |              |           |   |               |        |   |              |         |        |               |   |         |        |   |   |         |       
|As originally reported(a)                                          |                             | $                                                        | (31,768 | )         |               | $ | (27,718 | )            |           | $ | (50,573       | )      |   | $            | (42,626 | )      |               | $ | (36,117 | )      |   | $ | (29,173 | )     
|Adjustments for:                                                   |                             |                                                          |         |           |               |   |         |              |           |   |               |        |   |              |         |        |               |   |         |        |   |   |         |       
|                                                                   | Mortgage related activities |                                                          |         | 3,705     |               |   |         | 3,705        |           |   |               | 6,132  |   |              |         | 6,132  |               |   |         | 3,105  |   |   |         | 3,105  |  
|                                                                   |                             |                                                          |         |           |               |   |         |              |           |   |               |        |   |              |         |        |               |  
|As restated                                                        |                             | $                                                        | (28,063 | )         |               | $ | (24,013 | )            |           | $ | (44,441       | )      |   | $            | (36,494 | )      |               | $ | (33,012 | )      |   | $ | (26,068 | )     
|                                                                   |                             |                                                          |         |           |               |   |         |              |           |   |               |        |   |              |         |        |               |  

II-39



---



##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|        |                                            
|------- | -------------------------------------------
|NOTE 1. | Significant Accounting Policies (continued)



| |                                                
| | -----------------------------------------------
| | Restatement of Financial Statements (continued)






|    |                                                                                                                     
|--- | --------------------------------------------------------------------------------------------------------------------
|(a) | 2003CY consolidated balance is adjusted for reclassification of
    dividends received from discontinued operations.





II-40



---



##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|        |                                            
|------- | -------------------------------------------
|NOTE 1. | Significant Accounting Policies (continued)



| |                                                
| | -----------------------------------------------
| | Restatement of Financial Statements (continued)






CONSOLIDATED STATEMENTS OF INCOME


|                                                                                                |                                        |                                                |         |         |          |   |            |          |  |   |          |            |  |          |         |         |          |   |         |         |   |   |         |         |  
|----------------------------------------------------------------------------------------------- | -------------------------------------- | ---------------------------------------------- | ------- | ------- | -------- | - | ---------- | -------- |  | - | -------- | ---------- |  | -------- | ------- | ------- | -------- | - | ------- | ------- | - | - | ------- | ------- | -
|                                                                                                |                                        | Years Ended December 31,                       |        
|                                                                                                |                                        |                                                |        
|                                                                                                |                                        | 2004                                           |         |         | 2003     |   |            | 2002     | 
|                                                                                                |                                        |                                                |         |         |          |   |            |          | 
|                                                                                                |                                        | Previously                                     |         |         |          |   | Previously |          |  |   |          | Previously |  |          |        
|                                                                                                |                                        | Reported                                       |         |         | Restated |   |            | Reported |  |   | Restated |            |  | Reported |         |         | Restated |  
|                                                                                                |                                        |                                                |         |         |          |   |            |          |  |   |          |            |  |          |         |         |          |  
|                                                                                                |                                        | (Dollars in millions except per share amounts) |        
|GENERAL MOTORS CORPORATION AND SUBSIDIARIES                                                     |                                        |                                                |         |         |          |   |            |          |  |   |          |            |  |          |         |         |          |   |         |         |   |   |         |        
|Total net sales and revenues                                                                    |                                        | $                                              | 193,517 |         |          | $ | 193,517    |          |  | $ | 185,837  |            |  | $        | 185,837 |         |          | $ | 177,867 |         |   | $ | 177,867 |        
|                                                                                                |                                        |                                                |         |         |          |   |            |          |  |   |          |            |  |          |         |         |          |  
|Cost of sales and other expenses                                                                |                                        |                                                | 159,951 |         |          |   | 159,957    |          |  |   | 152,435  |            |  |          | 152,419 |         |          |   | 147,192 |         |   |   | 147,420 |        
|Selling, general, and administrative expenses                                                   |                                        |                                                | 20,394  |         |          |   | 20,394     |          |  |   | 20,957   |            |  |          | 20,957  |         |          |   | 20,834  |         |   |   | 20,834  |        
|Interest expense                                                                                |                                        |                                                | 11,980  |         |          |   | 11,980     |          |  |   | 9,464    |            |  |          | 9,464   |         |          |   | 7,503   |         |   |   | 7,503   |        
|                                                                                                |                                        |                                                |         |         |          |   |            |          |  |   |          |            |  |          |         |         |          |  
|                                                                                                | Total costs and expenses               |                                                |         | 192,325 |          |   |            | 192,331  |  |   |          | 182,856    |  |          |         | 182,840 |          |   |         | 175,529 |   |   |         | 175,757 |  
|                                                                                                |                                        |                                                |         |         |          |   |            |          |  |   |          |            |  |          |         |         |          |  
|Income from continuing operations before income taxes, equity
    income and minority interests |                                        |                                                | 1,192   |         |          |   | 1,186      |          |  |   | 2,981    |            |  |          | 2,997   |         |          |   | 2,338   |         |   |   | 2,110   |        
|Income tax (benefit) expense                                                                    |                                        |                                                | (911    | )       |          |   | (916       | )        |  |   | 731      |            |  |          | 710     |         |          |   | 644     |         |   |   | 578     |        
|Equity income (loss) and minority interests                                                     |                                        |                                                | 702     |         |          |   | 702        |          |  |   | 612      |            |  |          | 612     |         |          |   | 281     |         |   |   | 281     |        
|                                                                                                |                                        |                                                |         |         |          |   |            |          |  |   |          |            |  |          |         |         |          |  
|Income from continuing operations                                                               |                                        |                                                | 2,805   |         |          |   | 2,804      |          |  |   | 2,862    |            |  |          | 2,899   |         |          |   | 1,975   |         |   |   | 1,813   |        
|(Loss) from discontinued operations                                                             |                                        |                                                |        |         |          |   |           |          |  |   | (219     | )          |  |          | (219    | )       |          |   | (239    | )       |   |   | (239    | )      
|Gain on sale of discontinued operations                                                         |                                        |                                                |        |         |          |   |           |          |  |   | 1,179    |            |  |          | 1,179   |         |          |   |        |         |   |   |        |        
|                                                                                                |                                        |                                                |         |         |          |   |            |          |  |   |          |            |  |          |         |         |          |  
|                                                                                                | Net income                             |                                                |         | 2,805   |          |   |            | 2,804    |  |   |          | 3,822      |  |          |         | 3,859   |          |   |         | 1,736   |   |   |         | 1,574   |  
|Dividends on preference stocks                                                                  |                                        |                                                |        |         |          |   |           |          |  |   |         |            |  |          |        |         |          |   | (46     | )       |   |   | (46     | )      
|                                                                                                |                                        |                                                |         |         |          |   |            |          |  |   |          |            |  |          |         |         |          |  
|                                                                                                | Earnings attributable to common stocks |                                                | $       | 2,805   |          |   | $          | 2,804    |  |   | $        | 3,822      |  |          | $       | 3,859   |          |   | $       | 1,690   |   |   | $       | 1,528   |  
|                                                                                                |                                        |                                                |         |         |          |   |            |          |  |   |          |            |  |          |         |         |          |  
|Basic earnings (loss) per share attributable to common
    stocks                               |                                        |                                                |         |         |          |   |            |          |  |   |          |            |  |          |         |         |          |   |         |         |   |   |         |        
|$12/3 par value                                                                                 |                                        |                                                |         |         |          |   |            |          |  |   |          |            |  |          |         |         |          |   |         |         |   |   |         |        
|                                                                                                | Continuing operations                  |                                                | $       | 4.97    |          |   | $          | 4.97     |  |   | $        | 5.10       |  |          | $       | 5.17    |          |   | $       | 3.53    |   |   | $       | 3.24    |  
|                                                                                                | Discontinued operations                |                                                | $       |        |          |   | $          |         |  |   | $        | 2.14       |  |          | $       | 2.14    |          |   | $       | (0.16   | ) |   | $       | (0.16   | )
|                                                                                                |                                        |                                                |         |         |          |   |            |          |  |   |          |            |  |          |         |         |          |  
|Earnings per share attributable to
    $12/3 par value                                          |                                        | $                                              | 4.97    |         |          | $ | 4.97       |          |  | $ | 7.24     |            |  | $        | 7.31    |         |          | $ | 3.37    |         |   | $ | 3.08    |        
|                                                                                                |                                        |                                                |         |         |          |   |            |          |  |   |          |            |  |          |         |         |          |  
|Losses per share from discontinued operations attributable to
    Class H                       |                                        | $                                              |        |         |          | $ |           |          |  | $ | (0.22    | )          |  | $        | (0.22   | )       |          | $ | (0.21   | )       |   | $ | (0.21   | )      
|                                                                                                |                                        |                                                |         |         |          |   |            |          |  |   |          |            |  |          |         |         |          |  
|Earnings (loss) per share attributable to common stocks
    assuming dilution                   |                                        |                                                |         |         |          |   |            |          |  |   |          |            |  |          |         |         |          |   |         |         |   |   |         |        
|$12/3 par value                                                                                 |                                        |                                                |         |         |          |   |            |          |  |   |          |            |  |          |         |         |          |   |         |         |   |   |         |        
|                                                                                                | Continuing operations                  |                                                | $       | 4.95    |          |   | $          | 4.94     |  |   | $        | 5.03       |  |          | $       | 5.09    |          |   | $       | 3.51    |   |   | $       | 3.23    |  
|                                                                                                | Discontinued operations                |                                                | $       |        |          |   | $          |         |  |   | $        | 2.11       |  |          | $       | 2.11    |          |   | $       | (0.16   | ) |   | $       | (0.16   | )
|                                                                                                |                                        |                                                |         |         |          |   |            |          |  |   |          |            |  |          |         |         |          |  
|Earnings per share attributable to
    $12/3 par value                                          |                                        | $                                              | 4.95    |         |          | $ | 4.94       |          |  | $ | 7.14     |            |  | $        | 7.20    |         |          | $ | 3.35    |         |   | $ | 3.07    |        
|                                                                                                |                                        |                                                |         |         |          |   |            |          |  |   |          |            |  |          |         |         |          |  
|Losses per share from discontinued operations attributable to
    Class H                       |                                        | $                                              |        |         |          | $ |           |          |  | $ | (0.22    | )          |  | $        | (0.22   | )       |          | $ | (0.21   | )       |   | $ | (0.21   | )      
|                                                                                                |                                        |                                                |         |         |          |   |            |          |  |   |          |            |  |          |         |         |          |  

II-41



---



##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|        |                                            
|------- | -------------------------------------------
|NOTE 1. | Significant Accounting Policies (continued)



| |                                                
| | -----------------------------------------------
| | Restatement of Financial Statements (continued)

SUPPLEMENTAL INFORMATION TO THE CONSOLIDATED STATEMENTS OF
INCOME


|                                                                                                 |                                                         |                          |         |         |          |   |            |          |   |   |          |            |  |          |         |         |          |   |         |         |   |   |         |         |  
|------------------------------------------------------------------------------------------------ | ------------------------------------------------------- | ------------------------ | ------- | ------- | -------- | - | ---------- | -------- | - | - | -------- | ---------- |  | -------- | ------- | ------- | -------- | - | ------- | ------- | - | - | ------- | ------- | -
|                                                                                                 |                                                         | Years Ended December 31, |        
|                                                                                                 |                                                         |                          |        
|                                                                                                 |                                                         | 2004                     |         |         | 2003     |   |            | 2002     |  
|                                                                                                 |                                                         |                          |         |         |          |   |            |          |  
|                                                                                                 |                                                         | Previously               |         |         |          |   | Previously |          |   |   |          | Previously |  |          |        
|                                                                                                 |                                                         | Reported                 |         |         | Restated |   |            | Reported |   |   | Restated |            |  | Reported |         |         | Restated |  
|                                                                                                 |                                                         |                          |         |         |          |   |            |          |   |   |          |            |  |          |         |         |          |  
|                                                                                                 |                                                         | (Dollars in millions)    |        
|AUTOMOTIVE AND OTHER OPERATIONS                                                                  |                                                         |                          |         |         |          |   |            |          |   |   |          |            |  |          |         |         |          |   |         |         |   |   |         |        
|Total net sales and revenues                                                                     |                                                         | $                        | 161,545 |         |          | $ | 161,545    |          |   | $ | 155,831  |            |  | $        | 155,831 |         |          | $ | 150,250 |         |   | $ | 150,250 |        
|                                                                                                 |                                                         |                          |         |         |          |   |            |          |   |   |          |            |  |          |         |         |          |  
|Cost of sales and other expenses                                                                 |                                                         |                          | 150,053 |         |          |   | 150,224    |          |   |   | 143,525  |            |  |          | 143,408 |         |          |   | 138,397 |         |   |   | 138,558 |        
|Selling, general, and administrative expenses                                                    |                                                         |                          | 11,863  |         |          |   | 11,863     |          |   |   | 11,737   |            |  |          | 11,737  |         |          |   | 11,680  |         |   |   | 11,680  |        
|                                                                                                 |                                                         |                          |         |         |          |   |            |          |   |   |          |            |  |          |         |         |          |  
|                                                                                                 | Total costs and expenses                                |                          |         | 161,916 |          |   |            | 162,087  |   |   |          | 155,262    |  |          |         | 155,145 |          |   |         | 150,077 |   |   |         | 150,238 |  
|Interest expense                                                                                 |                                                         |                          | 2,480   |         |          |   | 2,480      |          |   |   | 1,780    |            |  |          | 1,780   |         |          |   | 479     |         |   |   | 479     |        
|Net expense from transactions with Financing and Insurance
    Operations                        |                                                         |                          | 273     |         |          |   | 273        |          |   |   | 297      |            |  |          | 297     |         |          |   | 327     |         |   |   | 327     |        
|                                                                                                 |                                                         |                          |         |         |          |   |            |          |   |   |          |            |  |          |         |         |          |  
|(Loss) from continuing operations before income taxes, equity
    income, and minority interests |                                                         |                          | (3,124  | )       |          |   | (3,295     | )        |   |   | (1,508   | )          |  |          | (1,391  | )       |          |   | (633    | )       |   |   | (794    | )      
|Income tax (benefit)                                                                             |                                                         |                          | (2,325  | )       |          |   | (2,440     | )        |   |   | (869     | )          |  |          | (854    | )       |          |   | (378    | )       |   |   | (381    | )      
|Equity income (loss) and minority interests                                                      |                                                         |                          | 710     |         |          |   | 710        |          |   |   | 674      |            |  |          | 674     |         |          |   | 348     |         |   |   | 348     |        
|                                                                                                 |                                                         |                          |         |         |          |   |            |          |   |   |          |            |  |          |         |         |          |  
|Income (loss) from continuing operations                                                         |                                                         |                          | (89     | )       |          |   | (145       | )        |   |   | 35       |            |  |          | 137     |         |          |   | 93      |         |   |   | (65     | )      
|(Loss) from discontinued operations                                                              |                                                         |                          |        |         |          |   |           |          |   |   | (219     | )          |  |          | (219    | )       |          |   | (239    | )       |   |   | (239    | )      
|Gain on sale of discontinued operations                                                          |                                                         |                          |        |         |          |   |           |          |   |   | 1,179    |            |  |          | 1,179   |         |          |   |        |         |   |   |        |        
|                                                                                                 |                                                         |                          |         |         |          |   |            |          |   |   |          |            |  |          |         |         |          |  
|                                                                                                 | Net income (loss)  Automotive and Other
    Operations |                          | $       | (89     | )        |   | $          | (145     | ) |   | $        | 995        |  |          | $       | 1,097   |          |   | $       | (146    | ) |   | $       | (304    | )
|                                                                                                 |                                                         |                          |         |         |          |   |            |          |   |   |          |            |  |          |         |         |          |  
|FINANCING AND INSURANCE OPERATIONS                                                               |                                                         |                          |         |         |          |   |            |          |   |   |          |            |  |          |         |         |          |   |         |         |   |   |         |        
|Total revenues                                                                                   |                                                         | $                        | 31,972  |         |          | $ | 31,972     |          |   | $ | 30,006   |            |  | $        | 30,006  |         |          | $ | 27,617  |         |   | $ | 27,617  |        
|                                                                                                 |                                                         |                          |         |         |          |   |            |          |   |   |          |            |  |          |         |         |          |  
|Interest expense                                                                                 |                                                         |                          | 9,500   |         |          |   | 9,500      |          |   |   | 7,684    |            |  |          | 7,684   |         |          |   | 7,024   |         |   |   | 7,024   |        
|Depreciation and amortization expense                                                            |                                                         |                          | 5,523   |         |          |   | 5,523      |          |   |   | 5,567    |            |  |          | 5,567   |         |          |   | 5,245   |         |   |   | 5,245   |        
|Operating and other expenses                                                                     |                                                         |                          | 8,591   |         |          |   | 8,426      |          |   |   | 8,604    |            |  |          | 8,705   |         |          |   | 8,519   |         |   |   | 8,586   |        
|Provisions for financing and insurance losses                                                    |                                                         |                          | 4,315   |         |          |   | 4,315      |          |   |   | 3,959    |            |  |          | 3,959   |         |          |   | 4,185   |         |   |   | 4,185   |        
|                                                                                                 |                                                         |                          |         |         |          |   |            |          |   |   |          |            |  |          |         |         |          |  
|                                                                                                 | Total costs and expenses                                |                          |         | 27,929  |          |   |            | 27,764   |   |   |          | 25,814     |  |          |         | 25,915  |          |   |         | 24,973  |   |   |         | 25,040  |  
|                                                                                                 |                                                         |                          |         |         |          |   |            |          |   |   |          |            |  |          |         |         |          |  
|Net income from transactions with Automotive and Other Operations                                |                                                         |                          | (273    | )       |          |   | (273       | )        |   |   | (297     | )          |  |          | (297    | )       |          |   | (327    | )       |   |   | (327    | )      
|                                                                                                 |                                                         |                          |         |         |          |   |            |          |   |   |          |            |  |          |         |         |          |  
|Income before income taxes, equity income and minority interests                                 |                                                         |                          | 4,316   |         |          |   | 4,481      |          |   |   | 4,489    |            |  |          | 4,388   |         |          |   | 2,971   |         |   |   | 2,904   |        
|Income tax expense                                                                               |                                                         |                          | 1,414   |         |          |   | 1,524      |          |   |   | 1,600    |            |  |          | 1,564   |         |          |   | 1,022   |         |   |   | 959     |        
|Equity income (loss) and minority interests                                                      |                                                         |                          | (8      | )       |          |   | (8         | )        |   |   | (62      | )          |  |          | (62     | )       |          |   | (67     | )       |   |   | (67     | )      
|                                                                                                 |                                                         |                          |         |         |          |   |            |          |   |   |          |            |  |          |         |         |          |  
|                                                                                                 | Net income  Financing and Insurance Operations         |                          | $       | 2,894   |          |   | $          | 2,949    |   |   | $        | 2,827      |  |          | $       | 2,762   |          |   | $       | 1,882   |   |   | $       | 1,878   |  
|                                                                                                 |                                                         |                          |         |         |          |   |            |          |   |   |          |            |  |          |         |         |          |  

II-42



---



##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|        |                                            
|------- | -------------------------------------------
|NOTE 1. | Significant Accounting Policies (continued)



| |                                                
| | -----------------------------------------------
| | Restatement of Financial Statements (continued)






CONSOLIDATED BALANCE SHEETS


|                                                                                   |                                      |                                      |                            |         |          |        |            |          |        |        |          |         |        |        |         |         |        |        | 
|---------------------------------------------------------------------------------- | ------------------------------------ | ------------------------------------ | -------------------------- | ------- | -------- | ------ | ---------- | -------- | ------ | ------ | -------- | ------- | ------ | ------ | ------- | ------- | ------ | ------ | 
|                                                                                   |                                      | December 31,                         |                           
|                                                                                   |                                      |                                      |                           
|                                                                                   |                                      | 2004                                 |                            |         | 2003     |       
|                                                                                   |                                      |                                      |                            |         |          |       
|                                                                                   |                                      | Previously                           |                            |         |          |        | Previously |          |        |       
|                                                                                   |                                      | Reported                             |                            |         | Restated |        |            | Reported |        |        | Restated |        
|                                                                                   |                                      |                                      |                            |         |          |        |            |          |        |        |          |        
|                                                                                   |                                      | (Dollars in millions)                |                           
|ASSETS                                                                            
|Cash and cash equivalents                                                          |                                      | $                                    | 35,993                     |         |          |        | 35,993     |          |        | $      | 32,554   |         |        |        | 32,554  |        
|Other marketable securities                                                        |                                      |                                      | 21,737                     |         |          |        | 21,737     |          |        |        | 22,215   |         |        |        | 22,215  |        
|                                                                                   |                                      |                                      |                            |         |          |        |            |          |        |        |          |        
|                                                                                   | Total cash and marketable securities |                                      |                            | 57,730  |          |        |            | 57,730   |        |        |          | 54,769  |        |        |         | 54,769  |       
|Finance receivables  net                                                          |                                      |                                      | 199,600                    |         |          |        | 199,600    |          |        |        | 174,769  |         |        |        | 174,769 |        
|Loans held for sale                                                                |                                      |                                      | 19,934                     |         |          |        | 19,934     |          |        |        | 19,609   |         |        |        | 19,609  |        
|Accounts and notes receivable (less allowances)                                    |                                      |                                      | 21,236                     |         |          |        | 21,236     |          |        |        | 20,532   |         |        |        | 20,532  |        
|Inventories (less allowances)                                                      |                                      |                                      | 12,247                     |         |          |        | 12,247     |          |        |        | 11,602   |         |        |        | 11,602  |        
|Deferred income taxes                                                              |                                      |                                      | 26,241                     |         |          |        | 26,559     |          |        |        | 27,190   |         |        |        | 27,502  |        
|Net equipment on operating leases (less accumulated depreciation)                  |                                      |                                      | 34,214                     |         |          |        | 34,214     |          |        |        | 32,751   |         |        |        | 32,751  |        
|Equity in net assets of nonconsolidated affiliates                                 |                                      |                                      | 6,776                      |         |          |        | 6,776      |          |        |        | 6,032    |         |        |        | 6,032   |        
|Property  net                                                                     |                                      |                                      | 39,020                     |         |          |        | 39,020     |          |        |        | 37,972   |         |        |        | 37,972  |        
|Intangible assets  net                                                            |                                      |                                      | 4,925                      |         |          |        | 4,925      |          |        |        | 4,760    |         |        |        | 4,760   |        
|Other assets                                                                       |                                      |                                      | 57,680                     |         |          |        | 57,680     |          |        |        | 58,521   |         |        |        | 58,521  |        
|                                                                                   |                                      |                                      |                            |         |          |        |            |          |        |        |          |        
|                                                                                   | Total assets                         |                                      | $                          | 479,603 |          |        | $          | 479,921  |        |        | $        | 448,507 |        |        | $       | 448,819 |       
|                                                                                   |                                      |                                      |                            |         |          |        |            |          |        |        |          |        
|                                                                                  
|LIABILITIES AND STOCKHOLDERS EQUITY                                              
|Accounts payable (principally trade)                                               |                                      | $                                    | 28,830                     |         |          | $      | 28,830     |          |        | $      | 25,422   |         |        | $      | 25,422  |        
|Notes and loans payable                                                            |                                      |                                      | 300,279                    |         |          |        | 300,279    |          |        |        | 271,756  |         |        |        | 271,756 |        
|Postretirement benefits other than pensions                                        |                                      |                                      | 28,111                     |         |          |        | 28,182     |          |        |        | 36,292   |         |        |        | 36,373  |        
|Pensions                                                                           |                                      |                                      | 9,455                      |         |          |        | 9,455      |          |        |        | 8,024    |         |        |        | 8,024   |        
|Deferred income taxes                                                              |                                      |                                      | 7,078                      |         |          |        | 7,078      |          |        |        | 7,508    |         |        |        | 7,508   |        
|Accrued expenses and other liabilities                                             |                                      |                                      | 77,727                     |         |          |        | 78,340     |          |        |        | 73,930   |         |        |        | 74,526  |        
|                                                                                   |                                      |                                      |                            |         |          |        |            |          |        |        |          |        
|                                                                                   | Total liabilities                    |                                      |                            | 451,480 |          |        |            | 452,164  |        |        |          | 422,932 |        |        |         | 423,609 |       
|Minority interests                                                                 |                                      |                                      | 397                        |         |          |        | 397        |          |        |        | 307      |         |        |        | 307     |        
|Stockholders equity                                                               |                                      |                                      |                            |         |          |        |            |          |        |        |          |         |        |        |         |        
|$12/3 par value common stock (outstanding, 565,132,021 and
    561,997,725 shares) |                                      |                                      | 942                        |         |          |        | 942        |          |        |        | 937      |         |        |        | 937     |        
|Capital surplus (principally additional paid-in capital)                           |                                      |                                      | 15,241                     |         |          |        | 15,241     |          |        |        | 15,185   |         |        |        | 15,185  |        
|Retained earnings                                                                  |                                      |                                      | 14,428                     |         |          |        | 14,062     |          |        |        | 12,752   |         |        |        | 12,387  |        
|                                                                                   |                                      |                                      |                            |         |          |        |            |          |        |        |          |        
|                                                                                   |                                      | Subtotal                             |                            |         | 30,611   |        |            |          | 30,245 |        |          |         | 28,874 |        |         |         | 28,509 |       
|Accumulated foreign currency translation adjustments                               |                                      |                                      | (1,194                     | )       |          |        | (1,194     | )        |        |        | (1,815   | )       |        |        | (1,815  | )      
|Net unrealized gains on derivatives                                                |                                      |                                      | 589                        |         |          |        | 589        |          |        |        | 51       |         |        |        | 51      |        
|Net unrealized gains on securities                                                 |                                      |                                      | 751                        |         |          |        | 751        |          |        |        | 618      |         |        |        | 618     |        
|Minimum pension liability adjustment                                               |                                      |                                      | (3,031                     | )       |          |        | (3,031     | )        |        |        | (2,460   | )       |        |        | (2,460  | )      
|                                                                                   |                                      |                                      |                            |         |          |        |            |          |        |        |          |        
|                                                                                   |                                      | Accumulated other comprehensive loss |                            |         | (2,885   | )      |            |          | (2,885 | )      |          |         | (3,606 | )      |         |         | (3,606 | )     
|                                                                                   |                                      |                                      |                            |         |          |        |            |          |        |        |          |        
|                                                                                   |                                      |                                      | Total stockholders equity |         |          | 27,726 |            |          |        | 27,360 |          |         |        | 25,268 |         |         |        | 24,903 | 
|                                                                                   |                                      |                                      |                            |         |          |        |            |          |        |        |          |        
|Total liabilities and stockholders equity                                         |                                      | $                                    | 479,603                    |         |          | $      | 479,921    |          |        | $      | 448,507  |         |        | $      | 448,819 |        
|                                                                                   |                                      |                                      |                            |         |          |        |            |          |        |        |          |        

II-43



---



##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|        |                                            
|------- | -------------------------------------------
|NOTE 1. | Significant Accounting Policies (continued)



| |                                                
| | -----------------------------------------------
| | Restatement of Financial Statements (continued)

SUPPLEMENTAL INFORMATION TO THE CONSOLIDATED BALANCE
SHEETS


|                                                                  |                                                      |                       |         |         |          |   |            |          |         |   |          |         |         |   |         |         |         | 
|----------------------------------------------------------------- | ---------------------------------------------------- | --------------------- | ------- | ------- | -------- | - | ---------- | -------- | ------- | - | -------- | ------- | ------- | - | ------- | ------- | ------- | 
|                                                                  |                                                      | December 31,          |        
|                                                                  |                                                      |                       |        
|                                                                  |                                                      | 2004                  |         |         | 2003     |  
|GENERAL MOTORS CORPORATION AND SUBSIDIARIES                       |                                                      |                       |         |         |          |  
|                                                                  |                                                      | Previously            |         |         |          |   | Previously |          |         |  
|                                                                  |                                                      | Reported              |         |         | Restated |   |            | Reported |         |   | Restated |        
|                                                                  |                                                      |                       |         |         |          |   |            |          |         |   |          |        
|                                                                  |                                                      | (Dollars in millions) |        
|ASSETS                                                           
|Automotive and Other Operations                                   |                                                      |                       |         |         |          |   |            |          |         |   |          |         |         |   |         |        
|Cash and cash equivalents                                         |                                                      | $                     | 13,148  |         |          | $ | 13,148     |          |         | $ | 14,424   |         |         | $ | 14,424  |        
|Marketable securities                                             |                                                      |                       | 6,655   |         |          |   | 6,655      |          |         |   | 9,067    |         |         |   | 9,067   |        
|                                                                  |                                                      |                       |         |         |          |   |            |          |         |   |          |        
|                                                                  | Total cash and marketable securities                 |                       |         | 19,803  |          |   |            | 19,803   |         |   |          | 23,491  |         |   |         | 23,491  |        
|Accounts and notes receivable (less allowances)                   |                                                      |                       | 6,713   |         |          |   | 6,713      |          |         |   | 5,380    |         |         |   | 5,380   |        
|Inventories (less allowances)                                     |                                                      |                       | 11,717  |         |          |   | 11,717     |          |         |   | 10,960   |         |         |   | 10,960  |        
|Net equipment on operating leases (less accumulated depreciation) |                                                      |                       | 6,488   |         |          |   | 6,488      |          |         |   | 7,173    |         |         |   | 7,173   |        
|Deferred income taxes and other current assets                    |                                                      |                       | 10,794  |         |          |   | 10,794     |          |         |   | 10,851   |         |         |   | 10,851  |        
|                                                                  |                                                      |                       |         |         |          |   |            |          |         |   |          |        
|                                                                  | Total current assets                                 |                       |         | 55,515  |          |   |            | 55,515   |         |   |          | 57,855  |         |   |         | 57,855  |        
|Equity in net assets of nonconsolidated affiliates                |                                                      |                       | 6,776   |         |          |   | 6,776      |          |         |   | 6,032    |         |         |   | 6,032   |        
|Property  net                                                    |                                                      |                       | 37,170  |         |          |   | 37,170     |          |         |   | 36,071   |         |         |   | 36,071  |        
|Intangible assets  net                                           |                                                      |                       | 1,599   |         |          |   | 1,599      |          |         |   | 1,479    |         |         |   | 1,479   |        
|Deferred income taxes                                             |                                                      |                       | 17,399  |         |          |   | 17,639     |          |         |   | 18,086   |         |         |   | 18,211  |        
|Other assets                                                      |                                                      |                       | 40,844  |         |          |   | 40,844     |          |         |   | 42,262   |         |         |   | 42,262  |        
|                                                                  |                                                      |                       |         |         |          |   |            |          |         |   |          |        
|                                                                  | Total Automotive and Other Operations assets         |                       |         | 159,303 |          |   |            | 159,543  |         |   |          | 161,785 |         |   |         | 161,910 |        
|Financing and Insurance Operations                                |                                                      |                       |         |         |          |   |            |          |         |   |          |         |         |   |         |        
|Cash and cash equivalents                                         |                                                      |                       | 22,845  |         |          |   | 22,845     |          |         |   | 18,130   |         |         |   | 18,130  |        
|Investments in securities                                         |                                                      |                       | 15,082  |         |          |   | 15,082     |          |         |   | 13,148   |         |         |   | 13,148  |        
|Finance receivables  net                                         |                                                      |                       | 199,600 |         |          |   | 199,600    |          |         |   | 174,769  |         |         |   | 174,769 |        
|Loans held for sale                                               |                                                      |                       | 19,934  |         |          |   | 19,934     |          |         |   | 19,609   |         |         |   | 19,609  |        
|Net equipment on operating leases (less accumulated depreciation) |                                                      |                       | 27,726  |         |          |   | 27,726     |          |         |   | 25,578   |         |         |   | 25,578  |        
|Other assets                                                      |                                                      |                       | 35,113  |         |          |   | 35,191     |          |         |   | 35,488   |         |         |   | 35,675  |        
|Net receivable from Automotive and Other Operations               |                                                      |                       | 2,426   |         |          |   | 2,426      |          |         |   | 1,492    |         |         |   | 1,492   |        
|                                                                  |                                                      |                       |         |         |          |   |            |          |         |   |          |        
|                                                                  | Total Financing and Insurance Operations assets      |                       |         | 322,726 |          |   |            | 322,804  |         |   |          | 288,214 |         |   |         | 288,401 |        
|                                                                  |                                                      |                       |         |         |          |   |            |          |         |   |          |        
|Total assets                                                      |                                                      | $                     | 482,029 |         |          | $ | 482,347    |          |         | $ | 449,999  |         |         | $ | 450,311 |        
|                                                                  |                                                      |                       |         |         |          |   |            |          |         |   |          |        
|                                                                 
|LIABILITIES AND STOCKHOLDERS EQUITY                             
|Automotive and Other Operations                                   |                                                      |                       |         |         |          |   |            |          |         |   |          |         |         |   |         |        
|Accounts payable (principally trade)                              |                                                      | $                     | 24,257  |         |          | $ | 24,257     |          |         | $ | 21,542   |         |         | $ | 21,542  |        
|Loans payable                                                     |                                                      |                       | 2,062   |         |          |   | 2,062      |          |         |   | 2,813    |         |         |   | 2,813   |        
|Accrued expenses                                                  |                                                      |                       | 46,147  |         |          |   | 46,202     |          |         |   | 45,417   |         |         |   | 45,317  |        
|Net payable to Financing and Insurance Operations                 |                                                      |                       | 2,426   |         |          |   | 2,426      |          |         |   | 1,492    |         |         |   | 1,492   |        
|                                                                  |                                                      |                       |         |         |          |   |            |          |         |   |          |        
|                                                                  | Total current liabilities                            |                       |         | 74,892  |          |   |            | 74,947   |         |   |          | 71,264  |         |   |         | 71,164  |        
|Long-term debt                                                    |                                                      |                       | 30,460  |         |          |   | 30,460     |          |         |   | 29,593   |         |         |   | 29,593  |        
|Postretirement benefits other than pensions                       |                                                      |                       | 23,406  |         |          |   | 23,477     |          |         |   | 32,285   |         |         |   | 32,366  |        
|Pensions                                                          |                                                      |                       | 9,371   |         |          |   | 9,371      |          |         |   | 7,952    |         |         |   | 7,952   |        
|Other liabilities and deferred income taxes                       |                                                      |                       | 15,657  |         |          |   | 16,206     |          |         |   | 15,567   |         |         |   | 16,090  |        
|                                                                  |                                                      |                       |         |         |          |   |            |          |         |   |          |        
|                                                                  | Total Automotive and Other Operations liabilities    |                       |         | 153,786 |          |   |            | 154,461  |         |   |          | 156,661 |         |   |         | 157,165 |        
|Financing and Insurance Operations                                |                                                      |                       |         |         |          |   |            |          |         |   |          |         |         |   |         |        
|Accounts payable                                                  |                                                      |                       | 4,573   |         |          |   | 4,573      |          |         |   | 3,880    |         |         |   | 3,880   |        
|Debt                                                              |                                                      |                       | 267,757 |         |          |   | 267,757    |          |         |   | 239,350  |         |         |   | 239,350 |        
|Other liabilities and deferred income taxes                       |                                                      |                       | 27,790  |         |          |   | 27,799     |          |         |   | 24,533   |         |         |   | 24,706  |        
|                                                                  |                                                      |                       |         |         |          |   |            |          |         |   |          |        
|                                                                  | Total Financing and Insurance Operations liabilities |                       |         | 300,120 |          |   |            | 300,129  |         |   |          | 267,763 |         |   |         | 267,936 |        
|                                                                  |                                                      |                       |         |         |          |   |            |          |         |   |          |        
|                                                                  |                                                      | Total liabilities     |         |         | 453,906  |   |            |          | 454,590 |   |          |         | 424,424 |   |         |         | 425,101 | 
|Minority interests                                                |                                                      |                       | 397     |         |          |   | 397        |          |         |   | 307      |         |         |   | 307     |        
|                                                                  | Total stockholders equity                           |                       |         | 27,726  |          |   |            | 27,360   |         |   |          | 25,268  |         |   |         | 24,903  |        
|                                                                  |                                                      |                       |         |         |          |   |            |          |         |   |          |        
|Total liabilities and stockholders equity                        |                                                      | $                     | 482,029 |         |          | $ | 482,347    |          |         | $ | 449,999  |         |         | $ | 450,311 |        
|                                                                  |                                                      |                       |         |         |          |   |            |          |         |   |          |        

II-44



---



##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|        |                                            
|------- | -------------------------------------------
|NOTE 1. | Significant Accounting Policies (continued)



| |                                                
| | -----------------------------------------------
| | Restatement of Financial Statements (continued)






CONSOLIDATED STATEMENTS OF CASH FLOWS


|                                                                                                            |                                                               |                                  |         |        |          |   |            |          |   |   |          |            |   |          |         |         |          |   |         |        |   |   |         |        |  
|----------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------- | -------------------------------- | ------- | ------ | -------- | - | ---------- | -------- | - | - | -------- | ---------- | - | -------- | ------- | ------- | -------- | - | ------- | ------ | - | - | ------- | ------ | -
|                                                                                                            |                                                               | For the Years Ended December 31, |        
|                                                                                                            |                                                               |                                  |        
|                                                                                                            |                                                               | 2004                             |         |        | 2003     |   |            | 2002     |  
|                                                                                                            |                                                               |                                  |         |        |          |   |            |          |  
|                                                                                                            |                                                               | Previously                       |         |        |          |   | Previously |          |   |   |          | Previously |   |          |        
|                                                                                                            |                                                               | Reported                         |         |        | Restated |   |            | Reported |   |   | Restated |            |   | Reported |         |         | Restated |  
|                                                                                                            |                                                               |                                  |         |        |          |   |            |          |   |   |          |            |   |          |         |         |          |  
|                                                                                                            |                                                               | (Dollars in millions)            |        
|Cash flows from continuing operating activities                                                             |                                                               |                                  |         |        |          |   |            |          |   |   |          |            |   |          |         |         |          |   |         |        |   |   |         |       
|Income from continuing operations                                                                           |                                                               | $                                | 2,805   |        |          | $ | 2,804      |          |   | $ | 2,862    |            |   | $        | 2,899   |         |          | $ | 1,975   |        |   | $ | 1,813   |       
|Adjustments to reconcile income from continuing operations to
    net cash provided by operating activities |                                                               |                                  |         |        |          |   |            |          |   |   |          |            |   |          |         |         |          |   |         |        |   |   |         |       
|                                                                                                            | Depreciation and amortization expenses                        |                                  |         | 14,152 |          |   |            | 14,152   |   |   |          | 13,513     |   |          |         | 13,513  |          |   |         | 11,569 |   |   |         | 11,569 |  
|                                                                                                            | Mortgages: servicing rights and premium amortization          |                                  |         | 1,384  |          |   |            | 1,675    |   |   |          | 1,602      |   |          |         | 1,797   |          |   |         | 3,871  |   |   |         | 4,081  |  
|                                                                                                            | Provision for financing losses                                |                                  |         | 1,944  |          |   |            | 1,944    |   |   |          | 1,721      |   |          |         | 1,721   |          |   |         | 2,153  |   |   |         | 2,153  |  
|                                                                                                            | Net gains on sale of finance receivables                      |                                  |         |       |          |   |            | (1,312   | ) |   |          |           |   |          |         | (2,462  | )        |   |         |       |   |   |         | (1,865 | )
|                                                                                                            | Other postretirement employee benefit (OPEB) expense          |                                  |         | 4,567  |          |   |            | 4,558    |   |   |          | 4,599      |   |          |         | 4,650   |          |   |         | 4,108  |   |   |         | 4,138  |  
|                                                                                                            | OPEB payments                                                 |                                  |         | (3,974 | )        |   |            | (3,974   | ) |   |          | (3,536     | ) |          |         | (3,536  | )        |   |         | (3,334 | ) |   |         | (3,334 | )
|                                                                                                            | VEBA/ 401(h) contributions                                    |                                  |         | (8,618 | )        |   |            | (8,618   | ) |   |          | (3,000     | ) |          |         | (3,000  | )        |   |         | (1,000 | ) |   |         | (1,000 | )
|                                                                                                            | Pension expense                                               |                                  |         | 2,456  |          |   |            | 2,456    |   |   |          | 3,412      |   |          |         | 3,412   |          |   |         | 1,780  |   |   |         | 1,780  |  
|                                                                                                            | Pension contributions                                         |                                  |         | (919   | )        |   |            | (919     | ) |   |          | (18,168    | ) |          |         | (18,168 | )        |   |         | (5,156 | ) |   |         | (5,156 | )
|                                                                                                            | Retiree lump sum and vehicle voucher expense, net of payments |                                  |         | (329   | )        |   |            | (329     | ) |   |          | 923        |   |          |         | 923     |          |   |         | (254   | ) |   |         | (254   | )
|                                                                                                            | Net change in mortgage loans                                  |                                  |         | 445    |          |   |            | (2,312   | ) |   |          | 456        |   |          |         | (4,124  | )        |   |         | (4,715 | ) |   |         | (6,200 | )
|                                                                                                            | Net change in mortgage securities                             |                                  |         | 597    |          |   |            | 614      |   |   |          | 236        |   |          |         | 233     |          |   |         | (656   | ) |   |         | (655   | )
|                                                                                                            | Change in other investments and miscellaneous assets          |                                  |         | 57     |          |   |            | 83       |   |   |          | 416        |   |          |         | 409     |          |   |         | 1,914  |   |   |         | 1,984  |  
|                                                                                                            | Change in other operating assets and liabilities              |                                  |         | (1,628 | )        |   |            | (1,644   | ) |   |          | (2,277     | ) |          |         | (2,358  | )        |   |         | (3,391 | ) |   |         | (3,329 | )
|                                                                                                            | Other                                                         |                                  |         | 122    |          |   |            | 178      |   |   |          | 197        |   |          |         | 915     |          |   |         | 2,211  |   |   |         | 2,245  |  
|                                                                                                            |                                                               |                                  |         |        |          |   |            |          |   |   |          |            |   |          |         |         |          |  
|Net cash provided by (used in) continuing operating
    activities                                          |                                                               | $                                | 13,061  |        |          | $ | 9,356      |          |   | $ | 2,956    |            |   | $        | (3,176  | )       |          | $ | 11,075  |        |   | $ | 7,970   |       
|                                                                                                            |                                                               |                                  |         |        |          |   |            |          |   |   |          |            |   |          |         |         |          |  
|Cash flows from continuing investing activities                                                             |                                                               |                                  |         |        |          |   |            |          |   |   |          |            |   |          |         |         |          |   |         |        |   |   |         |       
|Expenditures for property                                                                                   |                                                               |                                  | (7,753  | )      |          |   | (7,753     | )        |   |   | (7,091   | )          |   |          | (7,091  | )       |          |   | (6,871  | )      |   |   | (6,871  | )     
|Investments in marketable securities  acquisitions                                                         |                                                               |                                  | (15,278 | )      |          |   | (15,278    | )        |   |   | (28,660  | )          |   |          | (28,660 | )       |          |   | (39,386 | )      |   |   | (39,386 | )     
|Investments in marketable securities  liquidations                                                         |                                                               |                                  | 15,350  |        |          |   | 15,911     |          |   |   | 24,253   |            |   |          | 24,253  |         |          |   | 35,688  |        |   |   | 35,688  |       
|Net change in mortgage servicing rights                                                                     |                                                               |                                  | (1,554  | )      |          |   | (326       | )        |   |   | (2,557   | )          |   |          | (513    | )       |          |   | (1,711  | )      |   |   | (458    | )     
|Increase in finance receivables                                                                             |                                                               |                                  | (40,278 | )      |          |   | (38,673    | )        |   |   | (59,978  | )          |   |          | (56,119 | )       |          |   | (51,081 | )      |   |   | (49,390 | )     
|Proceeds from sale of finance receivables                                                                   |                                                               |                                  | 23,385  |        |          |   | 23,385     |          |   |   | 22,182   |            |   |          | 22,182  |         |          |   | 30,013  |        |   |   | 30,013  |       
|Proceeds from sale of business units                                                                        |                                                               |                                  |        |        |          |   |           |          |   |   | 4,148    |            |   |          | 4,148   |         |          |   |        |        |   |   |        |       
|Dividends received from discontinued operations                                                             |                                                               |                                  |        |        |          |   |           |          |   |   |         |            |   |          | 275     |         |          |   |        |        |   |   |        |       
|Operating leases  acquisitions                                                                             |                                                               |                                  | (14,324 | )      |          |   | (14,324    | )        |   |   | (11,032  | )          |   |          | (11,032 | )       |          |   | (16,070 | )      |   |   | (16,070 | )     
|Operating leases  liquidations                                                                             |                                                               |                                  | 7,696   |        |          |   | 7,696      |          |   |   | 9,604    |            |   |          | 9,604   |         |          |   | 13,504  |        |   |   | 13,504  |       
|Investments in companies, net of cash acquired                                                              |                                                               |                                  | (60     | )      |          |   | (60        | )        |   |   | (201     | )          |   |          | (201    | )       |          |   | (870    | )      |   |   | (870    | )     
|Other                                                                                                       |                                                               |                                  | 1,048   |        |          |   | 1,359      |          |   |   | (1,516   | )          |   |          | (1,287  | )       |          |   | 667     |        |   |   | 828     |       
|                                                                                                            |                                                               |                                  |         |        |          |   |            |          |   |   |          |            |   |          |         |         |          |  
|Net cash used in continuing investing activities                                                            |                                                               |                                  | (31,768 | )      |          |   | (28,063    | )        |   |   | (50,848  | )          |   |          | (44,441 | )       |          |   | (36,117 | )      |   |   | (33,012 | )     
|                                                                                                            |                                                               |                                  |         |        |          |   |            |          |   |   |          |            |   |          |         |         |          |  

II-45



---



##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|        |                                            
|------- | -------------------------------------------
|NOTE 1. | Significant Accounting Policies (continued)



| |                                                
| | -----------------------------------------------
| | Restatement of Financial Statements (continued)

|                                                                                    |  |                                  |         |   |          |   |            |          |  |   |          |            |  |          |         |   |          |   |         |   |  |   |         |  
|----------------------------------------------------------------------------------- |  | -------------------------------- | ------- | - | -------- | - | ---------- | -------- |  | - | -------- | ---------- |  | -------- | ------- | - | -------- | - | ------- | - |  | - | ------- | -
|                                                                                    |  | For the Years Ended December 31, |        
|                                                                                    |  |                                  |        
|                                                                                    |  | 2004                             |         |   | 2003     |   |            | 2002     | 
|                                                                                    |  |                                  |         |   |          |   |            |          | 
|                                                                                    |  | Previously                       |         |   |          |   | Previously |          |  |   |          | Previously |  |          |        
|                                                                                    |  | Reported                         |         |   | Restated |   |            | Reported |  |   | Restated |            |  | Reported |         |   | Restated |  
|                                                                                    |  |                                  |         |   |          |   |            |          |  |   |          |            |  |          |         |   |          |  
|                                                                                    |  | (Dollars in millions)            |        
|Cash flows from continuing financing activities                                     |  |                                  |         |   |          |   |            |          |  |   |          |            |  |          |         |   |          |   |         |   |  |   |         |  
|Net increase in loans payable                                                       |  |                                  | 2,192   |   |          |   | 2,192      |          |  |   | 235      |            |  |          | 235     |   |          |   | 770     |   |  |   | 770     |  
|Long-term debt  borrowings                                                         |  |                                  | 73,511  |   |          |   | 73,511     |          |  |   | 97,391   |            |  |          | 97,391  |   |          |   | 51,411  |   |  |   | 51,411  |  
|Long-term debt  repayments                                                         |  |                                  | (57,822 | ) |          |   | (57,822    | )        |  |   | (38,962  | )          |  |          | (38,962 | ) |          |   | (24,365 | ) |  |   | (24,365 | )
|Repurchases of common and preference stocks                                         |  |                                  |        |   |          |   |           |          |  |   |         |            |  |          |        |   |          |   | (97     | ) |  |   | (97     | )
|Proceeds from issuing common stocks                                                 |  |                                  |        |   |          |   |           |          |  |   |         |            |  |          |        |   |          |   | 62      |   |  |   | 62      |  
|Proceeds from sales of treasury stocks                                              |  |                                  |        |   |          |   |           |          |  |   | 60       |            |  |          | 60      |   |          |   | 19      |   |  |   | 19      |  
|Cash dividends paid to stockholders                                                 |  |                                  | (1,129  | ) |          |   | (1,129     | )        |  |   | (1,121   | )          |  |          | (1,121  | ) |          |   | (1,121  | ) |  |   | (1,121  | )
|Other                                                                               |  |                                  | 4,723   |   |          |   | 4,723      |          |  |   | 1,319    |            |  |          | 1,319   |   |          |   | 333     |   |  |   | 333     |  
|                                                                                    |  |                                  |         |   |          |   |            |          |  |   |          |            |  |          |         |   |          |  
|Net cash provided by continuing financing activities                                |  |                                  | 21,475  |   |          |   | 21,475     |          |  |   | 58,922   |            |  |          | 58,922  |   |          |   | 27,012  |   |  |   | 27,012  |  
|                                                                                    |  |                                  |         |   |          |   |            |          |  |   |          |            |  |          |         |   |          |  
|Net cash provided by discontinued operations                                        |  |                                  |        |   |          |   |           |          |  |   | 275      |            |  |          |        |   |          |   |        |   |  |   |        |  
|Effect of exchange rate changes on cash and cash equivalents                        |  |                                  | 671     |   |          |   | 671        |          |  |   | 929      |            |  |          | 929     |   |          |   | 495     |   |  |   | 495     |  
|                                                                                    |  |                                  |         |   |          |   |            |          |  |   |          |            |  |          |         |   |          |  
|Net increase in cash and cash equivalents                                           |  |                                  | 3,439   |   |          |   | 3,439      |          |  |   | 12,234   |            |  |          | 12,234  |   |          |   | 2,465   |   |  |   | 2,465   |  
|Cash and cash equivalents at beginning of the year                                  |  |                                  | 32,554  |   |          |   | 32,554     |          |  |   | 20,320   |            |  |          | 20,320  |   |          |   | 17,855  |   |  |   | 17,855  |  
|                                                                                    |  |                                  |         |   |          |   |            |          |  |   |          |            |  |          |         |   |          |  
|Cash and cash equivalents at end of the year                                        |  | $                                | 35,993  |   |          | $ | 35,993     |          |  | $ | 32,554   |            |  | $        | 32,554  |   |          | $ | 20,320  |   |  | $ | 20,320  |  
|                                                                                    |  |                                  |         |   |          |   |            |          |  |   |          |            |  |          |         |   |          |  
|Net cash provided by operating activities of discontinued
    operations            |  |                                  |        |   |          |   |           |          |  |   |         |            |  | $        | 846     |   |          |   |        |   |  | $ | 412     |  
|Net cash used in investing activities of discontinued operations                    |  |                                  |        |   |          |   |           |          |  |   |         |            |  |          | (629    | ) |          |   |        |   |  |   | (387    | )
|Net cash provided by financing activities of discontinued
    operations            |  |                                  |        |   |          |   |           |          |  |   |         |            |  |          | 918     |   |          |   |        |   |  |   | 356     |  
|                                                                                    |  |                                  |         |   |          |   |            |          |  |   |          |            |  |          |         |   |          |  
|Net increase in cash and cash equivalents of discontinued
    operations            |  |                                  |        |   |          |   |           |          |  |   |         |            |  |          | 1,135   |   |          |   |        |   |  |   | 381     |  
|Cash retained by discontinued operations                                            |  |                                  |        |   |          |   |           |          |  |   |         |            |  |          | (2,216  | ) |          |   |        |   |  |   |        |  
|Cash reclassified as Assets of Discontinued Operations at
    beginning of the year |  |                                  |        |   |          |   |           |          |  |   |         |            |  |          | 1,081   |   |          |   |        |   |  |   | 700     |  
|                                                                                    |  |                                  |         |   |          |   |            |          |  |   |          |            |  |          |         |   |          |  
|Cash reclassified as Assets of Discontinued Operations at end of
    the year       |  |                                  |        |   |          |   |           |          |  |   |         |            |  |          |        |   |          |   |        |   |  | $ | 1,081   |  
|                                                                                    |  |                                  |         |   |          |   |            |          |  |   |          |            |  |          |         |   |          |  

II-46



---



##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES







NOTES TO CONSOLIDATED FINANCIAL STATEMENTS




|        |                                            
|------- | -------------------------------------------
|NOTE 1. | Significant Accounting Policies (continued)



| |                                                
| | -----------------------------------------------
| | Restatement of Financial Statements (continued)

SUPPLEMENTAL INFORMATION TO THE


CONSOLIDATED STATEMENTS OF CASH FLOWS


|                                                                                                                   |                                                                                         |                                      |        |        |                         |   |            |          |   |   |          |        |   |   |         |        |  
|------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------- | ------------------------------------ | ------ | ------ | ----------------------- | - | ---------- | -------- | - | - | -------- | ------ | - | - | ------- | ------ | -
|                                                                                                                   |                                                                                         | For the Year Ended December 31, 2004 |       
|                                                                                                                   |                                                                                         |                                      |       
|                                                                                                                   |                                                                                         | Automotive and Other                 |        |        |                        
|                                                                                                                   |                                                                                         | Operations                           |        |        | Financing and Insurance |  
|                                                                                                                   |                                                                                         |                                      |        |        |                         |  
|                                                                                                                   |                                                                                         | Previously                           |        |        |                         |   | Previously |          |   |  
|                                                                                                                   |                                                                                         | Reported                             |        |        | Restated                |   |            | Reported |   |   | Restated |       
|                                                                                                                   |                                                                                         |                                      |        |        |                         |   |            |          |   |   |          |       
|                                                                                                                   |                                                                                         | (Dollars in millions)                |       
|Cash flows from continuing operating activities                                                                    |                                                                                         |                                      |        |        |                         |   |            |          |   |   |          |        |   |   |         |       
|Income (loss) from continuing operations                                                                           |                                                                                         | $                                    | (89    | )      |                         | $ | (145       | )        |   | $ | 2,894    |        |   | $ | 2,949   |       
|Adjustments to reconcile income (loss) from continuing
    operations to net cash provided by operating activities |                                                                                         |                                      |        |        |                         |   |            |          |   |   |          |        |   |   |         |       
|                                                                                                                   | Depreciation and amortization expenses                                                  |                                      |        | 8,629  |                         |   |            | 8,629    |   |   |          | 5,523  |   |   |         | 5,523  |  
|                                                                                                                   | Mortgages: servicing rights and premium amortization                                    |                                      |        |       |                         |   |            |         |   |   |          | 1,384  |   |   |         | 1,675  |  
|                                                                                                                   | Provision for financing losses                                                          |                                      |        |       |                         |   |            |         |   |   |          | 1,944  |   |   |         | 1,944  |  
|                                                                                                                   | Net gains on sale of finance receivables                                                |                                      |        |       |                         |   |            |         |   |   |          |       |   |   |         | (1,312 | )
|                                                                                                                   | Postretirement benefits other than pensions, net of payments and
    VEBA contributions |                                      |        | (8,039 | )                       |   |            | (8,048   | ) |   |          | 14     |   |   |         | 14     |  
|                                                                                                                   | Pension expense, net of contributions                                                   |                                      |        | 1,174  |                         |   |            | 1,174    |   |   |          | 34     |   |   |         | 34     |  
|                                                                                                                   | Net change in mortgage loans                                                            |                                      |        |       |                         |   |            |         |   |   |          | 445    |   |   |         | (2,312 | )
|                                                                                                                   | Net change in mortgage securities                                                       |                                      |        |       |                         |   |            |         |   |   |          | 597    |   |   |         | 614    |  
|                                                                                                                   | Change in other investments and miscellaneous assets                                    |                                      |        | (48    | )                       |   |            | (22      | ) |   |          | 105    |   |   |         | 105    |  
|                                                                                                                   | Change in other operating assets and liabilities                                        |                                      |        | (307   | )                       |   |            | (268     | ) |   |          | (1,321 | ) |   |         | (1,376 | )
|                                                                                                                   | Other                                                                                   |                                      |        | (102   | )                       |   |            | (102     | ) |   |          | 224    |   |   |         | 280    |  
|                                                                                                                   |                                                                                         |                                      |        |        |                         |   |            |          |   |   |          |       
|Net cash provided by (used in) continuing operating
    activities                                                 |                                                                                         | $                                    | 1,218  |        |                         | $ | 1,218      |          |   | $ | 11,843   |        |   | $ | 8,138   |       
|                                                                                                                   |                                                                                         |                                      |        |        |                         |   |            |          |   |   |          |       
|Cash flows from continuing investing activities                                                                    |                                                                                         |                                      |        |        |                         |   |            |          |   |   |          |        |   |   |         |       
|Expenditures for property                                                                                          |                                                                                         |                                      | (7,284 | )      |                         |   | (7,284     | )        |   |   | (469     | )      |   |   | (469    | )     
|Investments in marketable securities  acquisitions                                                                |                                                                                         |                                      | (2,209 | )      |                         |   | (2,209     | )        |   |   | (13,069  | )      |   |   | (13,069 | )     
|Investments in marketable securities  liquidations                                                                |                                                                                         |                                      | 4,609  |        |                         |   | 4,609      |          |   |   | 10,741   |        |   |   | 11,302  |       
|Net change in mortgage servicing rights                                                                            |                                                                                         |                                      |       |        |                         |   |           |          |   |   | (1,554   | )      |   |   | (326    | )     
|Increase in finance receivables                                                                                    |                                                                                         |                                      |       |        |                         |   |           |          |   |   | (40,278  | )      |   |   | (38,673 | )     
|Proceeds from sales of finance receivables                                                                         |                                                                                         |                                      |       |        |                         |   |           |          |   |   | 23,385   |        |   |   | 23,385  |       
|Operating leases  acquisitions                                                                                    |                                                                                         |                                      |       |        |                         |   |           |          |   |   | (14,324  | )      |   |   | (14,324 | )     
|Operating leases  liquidations                                                                                    |                                                                                         |                                      |       |        |                         |   |           |          |   |   | 7,696    |        |   |   | 7,696   |       
|Investments in companies, net of cash acquired                                                                     |                                                                                         |                                      | (48    | )      |                         |   | (48        | )        |   |   | (12      | )      |   |   | (12     | )     
|Net investing activity with Financing and Insurance Operations                                                     |                                                                                         |                                      | 1,500  |        |                         |   | 1,500      |          |   |   |         |        |   |   |        |       
|Other                                                                                                              |                                                                                         |                                      | 882    |        |                         |   | 882        |          |   |   | 166      |        |   |   | 477     |       
|                                                                                                                   |                                                                                         |                                      |        |        |                         |   |            |          |   |   |          |       
|Net cash used in continuing investing activities                                                                   |                                                                                         |                                      | (2,550 | )      |                         |   | (2,550     | )        |   |   | (27,718  | )      |   |   | (24,013 | )     
|                                                                                                                   |                                                                                         |                                      |        |        |                         |   |            |          |   |   |          |       

II-47



---



##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|        |                                            
|------- | -------------------------------------------
|NOTE 1. | Significant Accounting Policies (continued)



| |                                                
| | -----------------------------------------------
| | Restatement of Financial Statements (continued)



SUPPLEMENTAL INFORMATION TO THE


CONSOLIDATED STATEMENTS OF
CASH FLOWS  Continued


|                                                                   |  |                                      |        |   |                         |   |            |          |  |   |          |   |  |   |         |  
|------------------------------------------------------------------ |  | ------------------------------------ | ------ | - | ----------------------- | - | ---------- | -------- |  | - | -------- | - |  | - | ------- | -
|                                                                   |  | For the Year Ended December 31, 2004 |       
|                                                                   |  |                                      |       
|                                                                   |  | Automotive and Other                 |        |   |                        
|                                                                   |  | Operations                           |        |   | Financing and Insurance |  
|                                                                   |  |                                      |        |   |                         |  
|                                                                   |  | Previously                           |        |   |                         |   | Previously |          |  |  
|                                                                   |  | Reported                             |        |   | Restated                |   |            | Reported |  |   | Restated |  
|                                                                   |  |                                      |        |   |                         |   |            |          |  |   |          |  
|                                                                   |  | (Dollars in millions)                |       
|Cash flows from continuing financing activities                    |  |                                      |        |   |                         |   |            |          |  |   |          |   |  |   |         |  
|Net (decrease) increase in loans payable                           |  | $                                    | (803   | ) |                         | $ | (803       | )        |  | $ | 2,995    |   |  | $ | 2,995   |  
|Long-term debt  borrowings                                        |  |                                      | 758    |   |                         |   | 758        |          |  |   | 72,753   |   |  |   | 72,753  |  
|Long-term debt  repayments                                        |  |                                      | (79    | ) |                         |   | (79        | )        |  |   | (57,743  | ) |  |   | (57,743 | )
|Net financing activity with Automotive and Other Operations        |  |                                      |       |   |                         |   |           |          |  |   | (1,500   | ) |  |   | (1,500  | )
|Cash dividends paid to stockholders                                |  |                                      | (1,129 | ) |                         |   | (1,129     | )        |  |   |         |   |  |   |        |  
|Other                                                              |  |                                      |       |   |                         |   |           |          |  |   | 4,723    |   |  |   | 4,723   |  
|                                                                   |  |                                      |        |   |                         |   |            |          |  |   |          |  
|Net cash provided by (used in) continuing financing
    activities |  |                                      | (1,253 | ) |                         |   | (1,253     | )        |  |   | 21,228   |   |  |   | 21,228  |  
|                                                                   |  |                                      |        |   |                         |   |            |          |  |   |          |  
|Effect of exchange rate changes on cash and cash equivalents       |  |                                      | 375    |   |                         |   | 375        |          |  |   | 296      |   |  |   | 296     |  
|Net transactions with Automotive/ Financing Operations             |  |                                      | 934    |   |                         |   | 934        |          |  |   | (934     | ) |  |   | (934    | )
|                                                                   |  |                                      |        |   |                         |   |            |          |  |   |          |  
|Net increase (decrease) in cash and cash equivalents               |  |                                      | (1,276 | ) |                         |   | (1,276     | )        |  |   | 4,715    |   |  |   | 4,715   |  
|Cash and cash equivalents at beginning of the year                 |  |                                      | 14,424 |   |                         |   | 14,424     |          |  |   | 18,130   |   |  |   | 18,130  |  
|                                                                   |  |                                      |        |   |                         |   |            |          |  |   |          |  
|Cash and cash equivalents at end of the year                       |  | $                                    | 13,148 |   |                         | $ | 13,148     |          |  | $ | 22,845   |   |  | $ | 22,845  |  
|                                                                   |  |                                      |        |   |                         |   |            |          |  |   |          |  

II-48



---



##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|        |                                            
|------- | -------------------------------------------
|NOTE 1. | Significant Accounting Policies (continued)



| |                                                
| | -----------------------------------------------
| | Restatement of Financial Statements (continued)

SUPPLEMENTAL INFORMATION TO THE


CONSOLIDATED STATEMENTS OF
CASH FLOWS  Continued


|                                                                                                                   |                                                                                         |                                      |         |         |                         |   |            |          |   |   |          |        |   |   |         |        |  
|------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------- | ------------------------------------ | ------- | ------- | ----------------------- | - | ---------- | -------- | - | - | -------- | ------ | - | - | ------- | ------ | -
|                                                                                                                   |                                                                                         | For the Year Ended December 31, 2003 |        
|                                                                                                                   |                                                                                         |                                      |        
|                                                                                                                   |                                                                                         | Automotive and Other                 |         |         |                        
|                                                                                                                   |                                                                                         | Operations                           |         |         | Financing and Insurance |  
|                                                                                                                   |                                                                                         |                                      |         |         |                         |  
|                                                                                                                   |                                                                                         | Previously                           |         |         |                         |   | Previously |          |   |  
|                                                                                                                   |                                                                                         | Reported                             |         |         | Restated                |   |            | Reported |   |   | Restated |       
|                                                                                                                   |                                                                                         |                                      |         |         |                         |   |            |          |   |   |          |       
|                                                                                                                   |                                                                                         | (Dollars in millions)                |        
|Cash flows from continuing operating activities                                                                    |                                                                                         |                                      |         |         |                         |   |            |          |   |   |          |        |   |   |         |       
|Income (loss) from continuing operations                                                                           |                                                                                         | $                                    | 35      |         |                         | $ | 137        |          |   | $ | 2,827    |        |   | $ | 2,762   |       
|Adjustments to reconcile income (loss) from continuing
    operations to net cash provided by operating activities |                                                                                         |                                      |         |         |                         |   |            |          |   |   |          |        |   |   |         |       
|                                                                                                                   | Depreciation and amortization expenses                                                  |                                      |         | 7,946   |                         |   |            | 7,946    |   |   |          | 5,567  |   |   |         | 5,567  |  
|                                                                                                                   | Mortgages: servicing rights and premium amortization                                    |                                      |         |        |                         |   |            |         |   |   |          | 1,602  |   |   |         | 1,797  |  
|                                                                                                                   | Provision for financing losses                                                          |                                      |         |        |                         |   |            |         |   |   |          | 1,721  |   |   |         | 1,721  |  
|                                                                                                                   | Net gains on sale of finance receivables                                                |                                      |         |        |                         |   |            |         |   |   |          |       |   |   |         | (2,462 | )
|                                                                                                                   | Postretirement benefits other than pensions, net of payments and
    VEBA contributions |                                      |         | (1,957  | )                       |   |            | (1,906   | ) |   |          | 20     |   |   |         | 20     |  
|                                                                                                                   | Pension expense, net of contributions                                                   |                                      |         | (13,869 | )                       |   |            | (13,869  | ) |   |          | 36     |   |   |         | 36     |  
|                                                                                                                   | Net change in mortgage loans                                                            |                                      |         |        |                         |   |            |         |   |   |          | 456    |   |   |         | (4,124 | )
|                                                                                                                   | Net change in mortgage securities                                                       |                                      |         |        |                         |   |            |         |   |   |          | 236    |   |   |         | 233    |  
|                                                                                                                   | Change in other investments and miscellaneous assets                                    |                                      |         | (200    | )                       |   |            | (207     | ) |   |          | 616    |   |   |         | 616    |  
|                                                                                                                   | Change in other operating assets and liabilities                                        |                                      |         | 3,067   |                         |   |            | 2,921    |   |   |          | (5,344 | ) |   |         | (5,279 | )
|                                                                                                                   | Other                                                                                   |                                      |         | (348    | )                       |   |            | (348     | ) |   |          | 545    |   |   |         | 1,263  |  
|                                                                                                                   |                                                                                         |                                      |         |         |                         |   |            |          |   |   |          |       
|Net cash provided by (used in) continuing operating
    activities                                                 |                                                                                         | $                                    | (5,326  | )       |                         | $ | (5,326     | )        |   | $ | 8,282    |        |   | $ | 2,150   |       
|                                                                                                                   |                                                                                         |                                      |         |         |                         |   |            |          |   |   |          |       
|Cash flows from continuing investing activities                                                                    |                                                                                         |                                      |         |         |                         |   |            |          |   |   |          |        |   |   |         |       
|Expenditures for property                                                                                          |                                                                                         |                                      | (6,616  | )       |                         |   | (6,616     | )        |   |   | (475     | )      |   |   | (475    | )     
|Investments in marketable securities  acquisitions                                                                |                                                                                         |                                      | (13,138 | )       |                         |   | (13,138    | )        |   |   | (15,522  | )      |   |   | (15,522 | )     
|Investments in marketable securities  liquidations                                                                |                                                                                         |                                      | 7,109   |         |                         |   | 7,109      |          |   |   | 17,144   |        |   |   | 17,144  |       
|Net change in mortgage servicing rights                                                                            |                                                                                         |                                      |        |         |                         |   |           |          |   |   | (2,557   | )      |   |   | (513    | )     
|Increase in finance receivables                                                                                    |                                                                                         |                                      |        |         |                         |   |           |          |   |   | (59,978  | )      |   |   | (56,119 | )     
|Proceeds from sales of finance receivables                                                                         |                                                                                         |                                      |        |         |                         |   |           |          |   |   | 22,182   |        |   |   | 22,182  |       
|Proceeds from sale of business units                                                                               |                                                                                         |                                      | 4,148   |         |                         |   | 4,148      |          |   |   |         |        |   |   |        |       
|Dividends received from discontinued operations                                                                    |                                                                                         |                                      |        |         |                         |   | 275        |          |   |   |         |        |   |   |        |       
|Operating leases  acquisitions                                                                                    |                                                                                         |                                      |        |         |                         |   |           |          |   |   | (11,032  | )      |   |   | (11,032 | )     
|Operating leases  liquidations                                                                                    |                                                                                         |                                      |        |         |                         |   |           |          |   |   | 9,604    |        |   |   | 9,604   |       
|Investments in companies, net of cash acquired                                                                     |                                                                                         |                                      | (57     | )       |                         |   | (57        | )        |   |   | (144     | )      |   |   | (144    | )     
|Net investing activity with Financing and Insurance Operations                                                     |                                                                                         |                                      | 1,000   |         |                         |   | 1,000      |          |   |   |         |        |   |   |        |       
|Other                                                                                                              |                                                                                         |                                      | 332     |         |                         |   | 332        |          |   |   | (1,848   | )      |   |   | (1,619  | )     
|                                                                                                                   |                                                                                         |                                      |         |         |                         |   |            |          |   |   |          |       
|Net cash used in continuing investing activities                                                                   |                                                                                         |                                      | (7,222  | )       |                         |   | (6,947     | )        |   |   | (42,626  | )      |   |   | (36,494 | )     
|                                                                                                                   |                                                                                         |                                      |         |         |                         |   |            |          |   |   |          |       

II-49



---



##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|        |                                            
|------- | -------------------------------------------
|NOTE 1. | Significant Accounting Policies (continued)



| |                                                
| | -----------------------------------------------
| | Restatement of Financial Statements (continued)



SUPPLEMENTAL INFORMATION TO THE


CONSOLIDATED STATEMENTS OF
CASH FLOWS  Continued


|                                                             |  |                                      |        |   |                         |   |            |          |  |   |          |   |  |   |         |  
|------------------------------------------------------------ |  | ------------------------------------ | ------ | - | ----------------------- | - | ---------- | -------- |  | - | -------- | - |  | - | ------- | -
|                                                             |  | For the Year Ended December 31, 2003 |       
|                                                             |  |                                      |       
|                                                             |  | Automotive and Other                 |        |   |                        
|                                                             |  | Operations                           |        |   | Financing and Insurance |  
|                                                             |  |                                      |        |   |                         |  
|                                                             |  | Previously                           |        |   |                         |   | Previously |          |  |  
|                                                             |  | Reported                             |        |   | Restated                |   |            | Reported |  |   | Restated |  
|                                                             |  |                                      |        |   |                         |   |            |          |  |   |          |  
|                                                             |  | (Dollars in millions)                |       
|Cash flows from continuing financing activities              |  |                                      |        |   |                         |   |            |          |  |   |          |   |  |   |         |  
|Net (decrease) increase in loans payable                     |  | $                                    | (234   | ) |                         | $ | (234       | )        |  | $ | 469      |   |  | $ | 469     |  
|Long-term debt  borrowings                                  |  |                                      | 14,785 |   |                         |   | 14,785     |          |  |   | 82,606   |   |  |   | 82,606  |  
|Long-term debt  repayments                                  |  |                                      | (19    | ) |                         |   | (19        | )        |  |   | (38,943  | ) |  |   | (38,943 | )
|Net financing activity with Automotive and Other Operations  |  |                                      |       |   |                         |   |           |          |  |   | (1,000   | ) |  |   | (1,000  | )
|Repurchases of common and preference stocks                  |  |                                      |       |   |                         |   |           |          |  |   |         |   |  |   |        |  
|Proceeds from issuing common stocks                          |  |                                      |       |   |                         |   |           |          |  |   |         |   |  |   |        |  
|Proceeds from sales of treasury stocks                       |  |                                      | 60     |   |                         |   | 60         |          |  |   |         |   |  |   |        |  
|Cash dividends paid to stockholders                          |  |                                      | (1,121 | ) |                         |   | (1,121     | )        |  |   |         |   |  |   |        |  
|Other                                                        |  |                                      |       |   |                         |   |           |          |  |   | 1,319    |   |  |   | 1,319   |  
|                                                             |  |                                      |        |   |                         |   |            |          |  |   |          |  
|Net cash provided by continuing financing activities         |  |                                      | 13,471 |   |                         |   | 13,471     |          |  |   | 44,451   |   |  |   | 44,451  |  
|                                                             |  |                                      |        |   |                         |   |            |          |  |   |          |  
|Net cash provided by discontinued operations                 |  |                                      | 275    |   |                         |   |           |          |  |   |         |   |  |   |        |  
|Effect of exchange rate changes on cash and cash equivalents |  |                                      | 661    |   |                         |   | 661        |          |  |   | 268      |   |  |   | 268     |  
|Net transactions with Automotive/ Financing Operations       |  |                                      | 403    |   |                         |   | 403        |          |  |   | (403     | ) |  |   | (403    | )
|                                                             |  |                                      |        |   |                         |   |            |          |  |   |          |  
|Net increase in cash and cash equivalents                    |  |                                      | 2,262  |   |                         |   | 2,262      |          |  |   | 9,972    |   |  |   | 9,972   |  
|Cash and cash equivalents at beginning of the year           |  |                                      | 12,162 |   |                         |   | 12,162     |          |  |   | 8,158    |   |  |   | 8,158   |  
|                                                             |  |                                      |        |   |                         |   |            |          |  |   |          |  
|Cash and cash equivalents at end of the year                 |  | $                                    | 14,424 |   |                         | $ | 14,424     |          |  | $ | 18,130   |   |  | $ | 18,130  |  
|                                                             |  |                                      |        |   |                         |   |            |          |  |   |          |  

II-50



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS




|        |                                            
|------- | -------------------------------------------
|NOTE 1. | Significant Accounting Policies (continued)



| |                                                
| | -----------------------------------------------
| | Restatement of Financial Statements (continued)

SUPPLEMENTAL INFORMATION TO THE


CONSOLIDATED STATEMENTS OF CASH
FLOWS  Continued


|                                                                                                                   |                                                                                         |                                      |        |        |                         |   |            |          |   |   |          |        |   |   |         |        |  
|------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------- | ------------------------------------ | ------ | ------ | ----------------------- | - | ---------- | -------- | - | - | -------- | ------ | - | - | ------- | ------ | -
|                                                                                                                   |                                                                                         | For the Year Ended December 31, 2002 |       
|                                                                                                                   |                                                                                         |                                      |       
|                                                                                                                   |                                                                                         | Automotive and Other                 |        |        |                        
|                                                                                                                   |                                                                                         | Operations                           |        |        | Financing and Insurance |  
|                                                                                                                   |                                                                                         |                                      |        |        |                         |  
|                                                                                                                   |                                                                                         | Previously                           |        |        |                         |   | Previously |          |   |  
|                                                                                                                   |                                                                                         | Reported                             |        |        | Restated                |   |            | Reported |   |   | Restated |       
|                                                                                                                   |                                                                                         |                                      |        |        |                         |   |            |          |   |   |          |       
|                                                                                                                   |                                                                                         | (Dollars in millions)                |       
|Cash flows from continuing operating activities                                                                    |                                                                                         |                                      |        |        |                         |   |            |          |   |   |          |        |   |   |         |       
|Income (loss) from continuing operations                                                                           |                                                                                         | $                                    | 93     |        |                         | $ | (65        | )        |   | $ | 1,882    |        |   | $ | 1,878   |       
|Adjustments to reconcile income (loss) from continuing
    operations to net cash provided by operating activities |                                                                                         |                                      |        |        |                         |   |            |          |   |   |          |        |   |   |         |       
|                                                                                                                   | Depreciation and amortization expenses                                                  |                                      |        | 6,324  |                         |   |            | 6,324    |   |   |          | 5,245  |   |   |         | 5,245  |  
|                                                                                                                   | Mortgage servicing rights and premium amortization                                      |                                      |        |       |                         |   |            |         |   |   |          | 3,871  |   |   |         | 4,081  |  
|                                                                                                                   | Provision for financing losses                                                          |                                      |        |       |                         |   |            |         |   |   |          | 2,153  |   |   |         | 2,153  |  
|                                                                                                                   | Net gains on sale of finance receivables                                                |                                      |        |       |                         |   |            |         |   |   |          |       |   |   |         | (1,865 | )
|                                                                                                                   | Postretirement benefits other than pensions, net of payments and
    VEBA contributions |                                      |        | (241   | )                       |   |            | (211     | ) |   |          | 15     |   |   |         | 15     |  
|                                                                                                                   | Pension expense, net of contributions                                                   |                                      |        | (3,639 | )                       |   |            | (3,639   | ) |   |          | 9      |   |   |         | 9      |  
|                                                                                                                   | Net change in mortgage loans                                                            |                                      |        |       |                         |   |            |         |   |   |          | (4,715 | ) |   |         | (6,200 | )
|                                                                                                                   | Net change in mortgage securities                                                       |                                      |        |       |                         |   |            |         |   |   |          | (656   | ) |   |         | (655   | )
|                                                                                                                   | Change in other investments and miscellaneous assets                                    |                                      |        | 2,064  |                         |   |            | 2,134    |   |   |          | (150   | ) |   |         | (150   | )
|                                                                                                                   | Change in other operating assets and liabilities                                        |                                      |        | 3,808  |                         |   |            | 3,866    |   |   |          | (7,199 | ) |   |         | (7,195 | )
|                                                                                                                   | Other                                                                                   |                                      |        | (398   | )                       |   |            | (398     | ) |   |          | 2,609  |   |   |         | 2,643  |  
|                                                                                                                   |                                                                                         |                                      |        |        |                         |   |            |          |   |   |          |       
|Net cash provided by (used in) continuing operating
    activities                                                 |                                                                                         | $                                    | 8,011  |        |                         | $ | 8,011      |          |   | $ | 3,064    |        |   | $ | (41     | )     
|                                                                                                                   |                                                                                         |                                      |        |        |                         |   |            |          |   |   |          |       
|Cash flows from continuing investing activities                                                                    |                                                                                         |                                      |        |        |                         |   |            |          |   |   |          |        |   |   |         |       
|Expenditures for property                                                                                          |                                                                                         |                                      | (6,414 | )      |                         |   | (6,414     | )        |   |   | (457     | )      |   |   | (457    | )     
|Investments in marketable securities  acquisitions                                                                |                                                                                         |                                      | (2,228 | )      |                         |   | (2,228     | )        |   |   | (37,158  | )      |   |   | (37,158 | )     
|Investments in marketable securities  liquidations                                                                |                                                                                         |                                      | 873    |        |                         |   | 873        |          |   |   | 34,815   |        |   |   | 34,815  |       
|Net change in mortgage servicing rights                                                                            |                                                                                         |                                      |       |        |                         |   |           |          |   |   | (1,711   | )      |   |   | (458    | )     
|Increase in finance receivables                                                                                    |                                                                                         |                                      |       |        |                         |   |           |          |   |   | (51,081  | )      |   |   | (49,390 | )     
|Proceeds from sales of finance receivables                                                                         |                                                                                         |                                      |       |        |                         |   |           |          |   |   | 30,013   |        |   |   | 30,013  |       
|Operating leases  acquisitions                                                                                    |                                                                                         |                                      |       |        |                         |   |           |          |   |   | (16,070  | )      |   |   | (16,070 | )     
|Operating leases  liquidations                                                                                    |                                                                                         |                                      |       |        |                         |   |           |          |   |   | 13,504   |        |   |   | 13,504  |       
|Investments in companies, net of cash acquired                                                                     |                                                                                         |                                      | (688   | )      |                         |   | (688       | )        |   |   | (182     | )      |   |   | (182    | )     
|Net investing activity with Financing and Insurance Operations                                                     |                                                                                         |                                      | 400    |        |                         |   | 400        |          |   |   |         |        |   |   |        |       
|Other                                                                                                              |                                                                                         |                                      | 1,513  |        |                         |   | 1,513      |          |   |   | (846     | )      |   |   | (685    | )     
|                                                                                                                   |                                                                                         |                                      |        |        |                         |   |            |          |   |   |          |       
|Net cash used in continuing investing activities                                                                   |                                                                                         |                                      | (6,544 | )      |                         |   | (6,544     | )        |   |   | (29,173  | )      |   |   | (26,068 | )     
|                                                                                                                   |                                                                                         |                                      |        |        |                         |   |            |          |   |   |          |       

II-51



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|        |                                            
|------- | -------------------------------------------
|NOTE 1. | Significant Accounting Policies (continued)



| |                                                
| | -----------------------------------------------
| | Restatement of Financial Statements (concluded)



SUPPLEMENTAL INFORMATION TO THE


CONSOLIDATED STATEMENTS OF
CASH FLOWS  Concluded


|                                                             |  |                                      |        |   |                         |   |            |          |  |   |          |   |  |   |         |  
|------------------------------------------------------------ |  | ------------------------------------ | ------ | - | ----------------------- | - | ---------- | -------- |  | - | -------- | - |  | - | ------- | -
|                                                             |  | For the Year Ended December 31, 2002 |       
|                                                             |  |                                      |       
|                                                             |  | Automotive and Other                 |        |   |                        
|                                                             |  | Operations                           |        |   | Financing and Insurance |  
|                                                             |  |                                      |        |   |                         |  
|                                                             |  | Previously                           |        |   |                         |   | Previously |          |  |  
|                                                             |  | Reported                             |        |   | Restated                |   |            | Reported |  |   | Restated |  
|                                                             |  |                                      |        |   |                         |   |            |          |  |   |          |  
|                                                             |  | (Dollars in millions)                |       
|Cash flows from continuing financing activities              |  |                                      |        |   |                         |   |            |          |  |   |          |   |  |   |         |  
|Net (decrease) increase in loans payable                     |  | $                                    | (335   | ) |                         | $ | (335       | )        |  | $ | 1,105    |   |  | $ | 1,105   |  
|Long-term debt  borrowings                                  |  |                                      | 4,562  |   |                         |   | 4,562      |          |  |   | 46,849   |   |  |   | 46,849  |  
|Long-term debt  repayments                                  |  |                                      | (145   | ) |                         |   | (145       | )        |  |   | (24,220  | ) |  |   | (24,220 | )
|Net financing activity with Automotive and Other Operations  |  |                                      |       |   |                         |   |           |          |  |   | (400     | ) |  |   | (400    | )
|Repurchases of common and preference stocks                  |  |                                      | (97    | ) |                         |   | (97        | )        |  |   |         |   |  |   |        |  
|Proceeds from issuing common stocks                          |  |                                      | 62     |   |                         |   | 62         |          |  |   |         |   |  |   |        |  
|Proceeds from sales of treasury stocks                       |  |                                      | 19     |   |                         |   | 19         |          |  |   |         |   |  |   |        |  
|Cash dividends paid to stockholders                          |  |                                      | (1,121 | ) |                         |   | (1,121     | )        |  |   |         |   |  |   |        |  
|Other                                                        |  |                                      |       |   |                         |   |           |          |  |   | 333      |   |  |   | 333     |  
|                                                             |  |                                      |        |   |                         |   |            |          |  |   |          |  
|Net cash provided by continuing financing activities         |  |                                      | 2,945  |   |                         |   | 2,945      |          |  |   | 23,667   |   |  |   | 23,667  |  
|                                                             |  |                                      |        |   |                         |   |            |          |  |   |          |  
|Effect of exchange rate changes on cash and cash equivalents |  |                                      | 485    |   |                         |   | 485        |          |  |   | 10       |   |  |   | 10      |  
|Net transactions with Automotive/ Financing Operations       |  |                                      | (467   | ) |                         |   | (467       | )        |  |   | 467      |   |  |   | 467     |  
|                                                             |  |                                      |        |   |                         |   |            |          |  |   |          |  
|Net increase (decrease) in cash and cash equivalents         |  |                                      | 4,430  |   |                         |   | 4,430      |          |  |   | (1,965   | ) |  |   | (1,965  | )
|Cash and cash equivalents at beginning of the year           |  |                                      | 7,732  |   |                         |   | 7,732      |          |  |   | 10,123   |   |  |   | 10,123  |  
|                                                             |  |                                      |        |   |                         |   |            |          |  |   |          |  
|Cash and cash equivalents at end of the year                 |  | $                                    | 12,162 |   |                         | $ | 12,162     |          |  | $ | 8,158    |   |  | $ | 8,158   |  
|                                                             |  |                                      |        |   |                         |   |            |          |  |   |          |  



| |                            
| | ---------------------------
| | Principles of Consolidation

10-K




II-52



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|        |                                            
|------- | -------------------------------------------
|NOTE 1. | Significant Accounting Policies (continued)



| |                                                                                         
| | ----------------------------------------------------------------------------------------
| | Nature of Operations, Financial Statement Presentation,
    and Supplemental Information









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





| |                         
| | ------------------------
| | Statements of Cash Flows

Restatements II-39


Reclassifications




II-53



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


NOTE 1.           Significant
Accounting Policies (continued)




| |                                       
| | --------------------------------------
| | Statements of Cash Flows  (continued)



|                                                                                |  |                          |         |   |      |   |         |      |  |   |         |  
|------------------------------------------------------------------------------- |  | ------------------------ | ------- | - | ---- | - | ------- | ---- |  | - | ------- | -
|                                                                                |  | Years Ended December 31, |        
|                                                                                |  |                          |        
|                                                                                |  | 2004                     |         |   | 2003 |   |         | 2002 | 
|                                                                                |  |                          |         |   |      |   |         |      | 
|                                                                                |  | (Dollars in millions)    |        
|Net cash provided by continuing operating activities as
    previously reported |  | $                        | 13,061  |   |      | $ | 7,600   |      |  | $ | 15,482  |  
|Restatement  mortgage related activities                                       |  |                          | (3,705  | ) |      |   | (6,132  | )    |  |   | (3,105  | )
|Reclassification  wholesale loans                                              |  |                          |        |   |      |   | (4,644  | )    |  |   | (4,407  | )
|                                                                                |  |                          |         |   |      |   |         |      | 
|Revised net cash provided by (used in) continuing operating
    activities      |  | $                        | 9,356   |   |      | $ | (3,176  | )    |  | $ | 7,970   |  
|                                                                                |  |                          |         |   |      |   |         |      | 
|Net cash used in continuing investing activities as previously
    reported     |  | $                        | (31,768 | ) |      | $ | (55,492 | )    |  | $ | (40,524 | )
|Restatement  mortgage related activities                                       |  |                          | 3,705   |   |      |   | 6,132   |      |  |   | 3,105   |  
|Reclassification  wholesale loans                                              |  |                          |        |   |      |   | 4,644   |      |  |   | 4,407   |  
|Reclassification  dividends received from
    discontinued operations          |  |                          |        |   |      |   | 275     |      |  |   |        |  
|                                                                                |  |                          |         |   |      |   |         |      | 
|Revised net cash used in continuing investing activities                        |  | $                        | (28,063 | ) |      | $ | (44,441 | )    |  | $ | (33,012 | )
|                                                                                |  |                          |         |   |      |   |         |      | 



| |                                                                    
| | -------------------------------------------------------------------
| | Use of Estimates in the Preparation of the Financial
    Statements





| |                    
| | -------------------
| | Revenue Recognition









| |                                         
| | ----------------------------------------
| | Advertising and Research and Development



II-54



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|        |                                            
|------- | -------------------------------------------
|NOTE 1. | Significant Accounting Policies (continued)



| |                              
| | -----------------------------
| | Depreciation and Amortization







| |                               
| | ------------------------------
| | Valuation of Long-Lived Assets





| |                                              
| | ---------------------------------------------
| | Foreign Currency Transactions and Translation





| |                    
| | -------------------
| | Policy and Warranty





| |                            
| | ---------------------------
| | Exit or Disposal Activities



II-55



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|        |                                            
|------- | -------------------------------------------
|NOTE 1. | Significant Accounting Policies (continued)





| |                          
| | -------------------------
| | Cash and Cash Equivalents





| |                                                   
| | --------------------------------------------------
| | Statements of Cash Flows Supplementary Information

|                                                                                                         |                                             |                          |       |        |      |   |       |        |       |   |       |        |       | 
|-------------------------------------------------------------------------------------------------------- | ------------------------------------------- | ------------------------ | ----- | ------ | ---- | - | ----- | ------ | ----- | - | ----- | ------ | ----- | 
|                                                                                                         |                                             | Years Ended December 31, |      
|                                                                                                         |                                             |                          |      
|                                                                                                         |                                             | 2004                     |       |        | 2003 |   |       | 2002   |      
|                                                                                                         |                                             |                          |       |        |      |   |       |        |      
|                                                                                                         |                                             | (Dollars in millions)    |      
|Automotive and other operations                                                                          |                                             |                          |       |        |      |   |       |        |       |   |       |       
|Increase (decrease) in cash due to changes in other operating
    assets and liabilities was as follows: |                                             |                          |       |        |      |   |       |        |       |   |       |       
|                                                                                                         | Accounts receivable                         |                          | $     | (284   | )    |   | $     | (575   | )     |   | $     | (93    | )    
|                                                                                                         | Prepaid expenses and other deferred charges |                          |       | 42     |      |   |       | (578   | )     |   |       | 268    |      
|                                                                                                         | Inventories                                 |                          |       | (156   | )    |   |       | (518   | )     |   |       | 221    |      
|                                                                                                         | Accounts payable                            |                          |       | 1,723  |      |   |       | 2,400  |       |   |       | 1,053  |      
|                                                                                                         | Deferred taxes and income taxes payable     |                          |       | (444   | )    |   |       | 2,235  |       |   |       | (1,829 | )    
|                                                                                                         | Accrued expenses and other liabilities      |                          |       | 11     |      |   |       | 2,887  |       |   |       | 5,579  |      
|                                                                                                         | Fleet rental  acquisitions                 |                          |       | (7,846 | )    |   |       | (7,761 | )     |   |       | (5,595 | )    
|                                                                                                         | Fleet rental  liquidations                 |                          |       | 6,686  |      |   |       | 4,831  |       |   |       | 4,262  |      
|                                                                                                         |                                             |                          |       |        |      |   |       |        |      
|                                                                                                         |                                             | Total                    |       | $      | (268 | ) |       | $      | 2,921 |   |       | $      | 3,866 | 
|                                                                                                         |                                             |                          |       |        |      |   |       |        |      
|Cash paid for interest                                                                                   |                                             | $                        | 2,508 |        |      | $ | 1,398 |        |       | $ | 1,033 |       



|                                                                                                         |                                         |                          |       |        |        |   |       |        |        |   |       |        |        |  
|-------------------------------------------------------------------------------------------------------- | --------------------------------------- | ------------------------ | ----- | ------ | ------ | - | ----- | ------ | ------ | - | ----- | ------ | ------ | -
|                                                                                                         |                                         | Years Ended December 31, |      
|                                                                                                         |                                         |                          |      
|                                                                                                         |                                         | 2004                     |       |        | 2003   |   |       | 2002   |       
|                                                                                                         |                                         |                          |       |        |        |   |       |        |       
|                                                                                                         |                                         | (Dollars in millions)    |      
|Financing and Insurance Operations                                                                       |                                         |                          |       |        |        |   |       |        |        |   |       |       
|Increase (decrease) in cash due to changes in other operating
    assets and liabilities was as follows: |                                         |                          |       |        |        |   |       |        |        |   |       |       
|                                                                                                         | Other receivables                       |                          | $     | 419    |        |   | $     | (5,236 | )      |   | $     | (6,716 | )     
|                                                                                                         | Other assets                            |                          |       | (111   | )      |   |       | 186    |        |   |       | (241   | )     
|                                                                                                         | Accounts payable and other liabilities  |                          |       | (1,173 | )      |   |       | 1,765  |        |   |       | (858   | )     
|                                                                                                         | Deferred taxes and income taxes payable |                          |       | (511   | )      |   |       | (1,994 | )      |   |       | 620    |       
|                                                                                                         |                                         |                          |       |        |        |   |       |        |       
|                                                                                                         |                                         | Total                    |       | $      | (1,376 | ) |       | $      | (5,279 | ) |       | $      | (7,195 | )
|                                                                                                         |                                         |                          |       |        |        |   |       |        |       
|Cash paid for interest                                                                                   |                                         | $                        | 8,887 |        |        | $ | 6,965 |        |        | $ | 6,333 |       

II-56



---



##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|        |                                            
|------- | -------------------------------------------
|NOTE 1. | Significant Accounting Policies (continued)





| |                       
| | ----------------------
| | Derivative Instruments







| |                         
| | ------------------------
| | New Accounting Standards

2 3


all


II-57



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




NOTE 1.     Significant
Accounting Policies (continued)




New Accounting Standards (continued)




|                                                                                                                                           |                                                                                                  |                          |       |   |      |   |       |      |      |   |       |   |      | 
|------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------ | ------------------------ | ----- | - | ---- | - | ----- | ---- | ---- | - | ----- | - | ---- | 
|                                                                                                                                           |                                                                                                  | Years Ended December 31, |      
|                                                                                                                                           |                                                                                                  |                          |      
|                                                                                                                                           |                                                                                                  | 2004                     |       |   | 2003 |   |       | 2002 |     
|                                                                                                                                           |                                                                                                  |                          |       |   |      |   |       |      |     
|Net income from continuing operations, as reported                                                                                         |                                                                                                  | $                        | 2,804 |   |      | $ | 2,899 |      |      | $ | 1,813 |  
|Add: stock-based compensation expense, included in reported net
    income, net of related tax effects                                     |                                                                                                  |                          | 38    |   |      |   | 142   |      |      |   | 44    |  
|Deduct: total stock-based compensation expense determined under
    fair value based method for all awards, net of related tax
    effects |                                                                                                  |                          | (52   | ) |      |   | (195  | )    |      |   | (187  | )
|                                                                                                                                           |                                                                                                  |                          |       |   |      |   |       |      |     
|Pro forma net income from continuing operations                                                                                            |                                                                                                  | $                        | 2,790 |   |      | $ | 2,846 |      |      | $ | 1,670 |  
|                                                                                                                                           |                                                                                                  |                          |       |   |      |   |       |      |     
|                                                                                                                                           | Basic earnings per share from continuing operations attributable
    to GM
    $12/3 par value   |                          |       |   |      |   |       |      |      |   |       |   |     
|                                                                                                                                           |                                                                                                  | - as reported            |       | $ | 4.97 |   |       | $    | 5.17 |   |       | $ | 3.24 | 
|                                                                                                                                           |                                                                                                  | - pro forma              |       | $ | 4.94 |   |       | $    | 5.08 |   |       | $ | 2.98 | 
|                                                                                                                                           | Diluted earnings per share from continuing operations
    attributable to GM
    $12/3 par value |                          |       |   |      |   |       |      |      |   |       |   |     
|                                                                                                                                           |                                                                                                  | - as reported            |       | $ | 4.94 |   |       | $    | 5.09 |   |       | $ | 3.23 | 
|                                                                                                                                           |                                                                                                  | - pro forma              |       | $ | 4.92 |   |       | $    | 5.00 |   |       | $ | 2.97 | 





106-2 106-2), 106-2 106-2




II-58



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




NOTE 1.     Significant
Accounting Policies (concluded)




New Accounting Standards (concluded)








| |            
| | -----------
| | Labor Force



12-month







|        |                        
|------- | -----------------------
|NOTE 2. | Discontinued Operations







II-59



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|        |                                    
|------- | -----------------------------------
|NOTE 2. | Discontinued Operations (concluded)














|        |                  
|------- | -----------------
|NOTE 3. | Asset Impairments














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



II-60



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|        |                                                     
|------- | ----------------------------------------------------
|NOTE 4. | Investment in Nonconsolidated Affiliates (concluded)





|                                               |  |       |       |  |       |   |        |       |  |   |             |  |  |   |       |  
|---------------------------------------------- |  | ----- | ----- |  | ----- | - | ------ | ----- |  | - | ----------- |  |  | - | ----- | -
|2004                                           |  | Italy |       |  | Japan |   |        | China |  |   | South Korea | 
|                                               |  |       |       |  |       |   |        |       |  |   |             | 
|Book value of GMs investments in affiliates   |  | $     | 1,293 |  |       | $ | 3,174  |       |  | $ | 1,173       |  |  | $ | 193   |  
|GMs share of affiliates net income (loss)    |  | $     | 87    |  |       | $ | 255    |       |  | $ | 417         |  |  | $ | (53   | )
|Total assets of significant affiliates(1)      |  | $     | 8,616 |  |       | $ | 30,582 |       |  | $ | 3,429       |  |  | $ | 5,288 |  
|Total liabilities of significant affiliates(1) |  | $     | 5,539 |  |       | $ | 17,417 |       |  | $ | 1,630       |  |  | $ | 4,447 |  
|2003                                           |  |       |       |  |       |   |        |       |  |   |             |  |  |   |       |  
|                                               |  |       |       |  |       |   |        |       |  |   |             | 
|Book value of GMs investments in affiliates   |  | $     | 946   |  |       | $ | 2,781  |       |  | $ | 964         |  |  | $ | 200   |  
|GMs share of affiliates net income (loss)    |  | $     | 95    |  |       | $ | 196    |       |  | $ | 414         |  |  | $ | (74   | )
|Total assets of significant affiliates(1)      |  | $     | 7,933 |  |       | $ | 29,622 |       |  | $ | 3,103       |  |  | $ | 3,263 |  
|Total liabilities of significant affiliates(1) |  | $     | 5,304 |  |       | $ | 17,764 |       |  | $ | 1,460       |  |  | $ | 2,892 |  
|2002                                           |  |       |       |  |       |   |        |       |  |   |             |  |  |   |       |  
|                                               |  |       |       |  |       |   |        |       |  |   |             | 
|Book value of GMs investments in affiliates   |  | $     | 753   |  |       | $ | 2,322  |       |  | $ | 659         |  |  | $ | 252   |  
|GMs share of affiliates net income (loss)    |  | $     | 80    |  |       | $ | 133    |       |  | $ | 123         |  |  | $ | (45   | )
|Total assets of significant affiliates(1)      |  | $     | 6,589 |  |       | $ | 24,579 |       |  | $ | 1,956       |  |  | $ | 2,277 |  
|Total liabilities of significant affiliates(1) |  | $     | 4,479 |  |       | $ | 14,966 |       |  | $ | 813         |  |  | $ | 1,771 |  






|    |                  
|--- | -----------------
|(1) | As defined above.






|        |                      
|------- | ---------------------
|NOTE 5. | Marketable Securities

held-to held-to


II-61



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|        |                                  
|------- | ---------------------------------
|NOTE 5. | Marketable Securities (continued)



| |                                
| | -------------------------------
| | Automotive and Other Operations



|                                    |  |                   |       |           |       |   |            |       |  |            |        |  |  |   |    | 
|----------------------------------- |  | ----------------- | ----- | --------- | ----- | - | ---------- | ----- |  | ---------- | ------ |  |  | - | -- | 
|                                    |  |                   |       | Book/Fair |       |   | Unrealized |       |  | Unrealized |       
|                                    |  | Cost              |       |           | Value |   |            | Gains |  |            | Losses | 
|                                    |  |                   |       |           |       |   |            |       |  |            |        | 
|                                    |  | December 31, 2004 |      
|                                    |  |                   |      
|Type of security                    |  |                   |       |           |       |   |            |       |  |            |        |  |  |   |    | 
|Corporate debt securities and other |  | $                 | 3,697 |           |       | $ | 3,691      |       |  | $          | 12     |  |  | $ | 18 | 
|U.S. government and agencies        |  |                   | 2,146 |           |       |   | 2,141      |       |  |            | 6      |  |  |   | 11 | 
|Mortgage-backed securities          |  |                   | 826   |           |       |   | 823        |       |  |            | 3      |  |  |   | 6  | 
|                                    |  |                   |       |           |       |   |            |       |  |            |        | 
|Total marketable securities         |  | $                 | 6,669 |           |       | $ | 6,655      |       |  | $          | 21     |  |  | $ | 35 | 
|                                    |  |                   |       |           |       |   |            |       |  |            |        | 

|                                         |  |                   |       |           |       |   |            |       |  |            |        |  |  |   |    | 
|---------------------------------------- |  | ----------------- | ----- | --------- | ----- | - | ---------- | ----- |  | ---------- | ------ |  |  | - | -- | 
|                                         |  |                   |       | Book/Fair |       |   | Unrealized |       |  | Unrealized |       
|                                         |  | Cost              |       |           | Value |   |            | Gains |  |            | Losses | 
|                                         |  |                   |       |           |       |   |            |       |  |            |        | 
|                                         |  | December 31, 2003 |      
|                                         |  |                   |      
|Type of security                         |  |                   |       |           |       |   |            |       |  |            |        |  |  |   |    | 
|Corporate debt securities and other      |  | $                 | 5,246 |           |       | $ | 5,246      |       |  | $          | 9      |  |  | $ | 9  | 
|U.S. government and agencies             |  |                   | 2,865 |           |       |   | 2,867      |       |  |            | 9      |  |  |   | 7  | 
|Mortgage-backed securities               |  |                   | 90    |           |       |   | 90         |       |  |            |       |  |  |   |   | 
|                                         |  |                   |       |           |       |   |            |       |  |            |        | 
|Total debt securities available for sale |  |                   | 8,201 |           |       |   | 8,203      |       |  |            | 18     |  |  |   | 16 | 
|News Corporation ADSs                    |  |                   | 819   |           |       |   | 864        |       |  |            |       |  |  |   |   | 
|                                         |  |                   |       |           |       |   |            |       |  |            |        | 
|Total marketable securities              |  | $                 | 9,020 |           |       | $ | 9,067      |       |  | $          | 18     |  |  | $ | 16 | 
|                                         |  |                   |       |           |       |   |            |       |  |            |        | 



II-62



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|        |                                  
|------- | ---------------------------------
|NOTE 5. | Marketable Securities (continued)



| |                                   
| | ----------------------------------
| | Financing and Insurance Operations



|                                                     |                                           |                   |        |           |       |   |            |        |  |            |        |       |  |   |    |    | 
|---------------------------------------------------- | ----------------------------------------- | ----------------- | ------ | --------- | ----- | - | ---------- | ------ |  | ---------- | ------ | ----- |  | - | -- | -- | 
|                                                     |                                           |                   |        | Book/Fair |       |   | Unrealized |        |  | Unrealized |       
|                                                     |                                           | Cost              |        |           | Value |   |            | Gains  |  |            | Losses |      
|                                                     |                                           |                   |        |           |       |   |            |        |  |            |        |      
|                                                     |                                           | December 31, 2004 |       
|                                                     |                                           |                   |       
|Type of security                                     |                                           |                   |        |           |       |   |            |        |  |            |        |       |  |   |    |   
|Bonds, notes, and other securities                   |                                           |                   |        |           |       |   |            |        |  |            |        |       |  |   |    |   
|                                                     | United States government and agencies     |                   | $      | 2,198     |       |   | $          | 2,208  |  |            | $      | 18    |  |   | $  | 8  | 
|                                                     | States and municipalities                 |                   |        | 556       |       |   |            | 596    |  |            |        | 40    |  |   |    |   | 
|                                                     | Foreign government securities             |                   |        | 792       |       |   |            | 805    |  |            |        | 14    |  |   |    | 1  | 
|                                                     | Mortgage and asset-backed securities      |                   |        | 1,988     |       |   |            | 2,074  |  |            |        | 97    |  |   |    | 11 | 
|                                                     | Corporate debt securities and other       |                   |        | 3,399     |       |   |            | 3,489  |  |            |        | 97    |  |   |    | 7  | 
|                                                     |                                           |                   |        |           |       |   |            |        |  |            |        |      
|Total debt securities available-for-sale             |                                           |                   | 8,933  |           |       |   | 9,172      |        |  |            | 266    |       |  |   | 27 |   
|Mortgage-backed securities held-to-maturity          |                                           |                   | 135    |           |       |   | 135        |        |  |            |       |       |  |   |   |   
|Mortgage-backed securities held for Trading purposes |                                           |                   | 3,510  |           |       |   | 3,545      |        |  |            | 35     |       |  |   |   |   
|                                                     |                                           |                   |        |           |       |   |            |        |  |            |        |      
|Total debt securities                                |                                           |                   | 12,578 |           |       |   | 12,852     |        |  |            | 301    |       |  |   | 27 |   
|Equity securities                                    |                                           |                   | 1,505  |           |       |   | 2,230      |        |  |            | 731    |       |  |   | 6  |   
|                                                     |                                           |                   |        |           |       |   |            |        |  |            |        |      
|                                                     | Total investment in marketable securities |                   | $      | 14,083    |       |   | $          | 15,082 |  |            | $      | 1,032 |  |   | $  | 33 | 
|                                                     |                                           |                   |        |           |       |   |            |        |  |            |        |      
|Total consolidated other marketable securities       |                                           | $                 | 20,752 |           |       | $ | 21,737     |        |  | $          | 1,053  |       |  | $ | 68 |   
|                                                     |                                           |                   |        |           |       |   |            |        |  |            |        |      

|                                                     |                                           |                   |        |           |       |   |            |        |  |            |        |     |  |   |     |     | 
|---------------------------------------------------- | ----------------------------------------- | ----------------- | ------ | --------- | ----- | - | ---------- | ------ |  | ---------- | ------ | --- |  | - | --- | --- | 
|                                                     |                                           |                   |        | Book/Fair |       |   | Unrealized |        |  | Unrealized |       
|                                                     |                                           | Cost              |        |           | Value |   |            | Gains  |  |            | Losses |    
|                                                     |                                           |                   |        |           |       |   |            |        |  |            |        |    
|                                                     |                                           | December 31, 2003 |       
|                                                     |                                           |                   |       
|Type of security                                     |                                           |                   |        |           |       |   |            |        |  |            |        |     |  |   |     |    
|Bonds, notes, and other securities                   |                                           |                   |        |           |       |   |            |        |  |            |        |     |  |   |     |    
|                                                     | United States government and agencies     |                   | $      | 716       |       |   | $          | 722    |  |            | $      | 7   |  |   | $   | 1   | 
|                                                     | States and municipalities                 |                   |        | 575       |       |   |            | 626    |  |            |        | 51  |  |   |     |    | 
|                                                     | Foreign government securities             |                   |        | 681       |       |   |            | 689    |  |            |        | 10  |  |   |     | 2   | 
|                                                     | Mortgage and asset-backed securities      |                   |        | 1,801     |       |   |            | 1,944  |  |            |        | 150 |  |   |     | 7   | 
|                                                     | Corporate debt securities and other       |                   |        | 2,965     |       |   |            | 3,087  |  |            |        | 128 |  |   |     | 6   | 
|                                                     |                                           |                   |        |           |       |   |            |        |  |            |        |    
|Total debt securities available-for-sale             |                                           |                   | 6,738  |           |       |   | 7,068      |        |  |            | 346    |     |  |   | 16  |    
|Mortgage-backed securities held-to-maturity          |                                           |                   | 240    |           |       |   | 240        |        |  |            |       |     |  |   |    |    
|Mortgage-backed securities held for Trading purposes |                                           |                   | 4,483  |           |       |   | 4,142      |        |  |            |       |     |  |   | 341 |    
|                                                     |                                           |                   |        |           |       |   |            |        |  |            |        |    
|Total debt securities                                |                                           |                   | 11,461 |           |       |   | 11,450     |        |  |            | 346    |     |  |   | 357 |    
|Equity securities                                    |                                           |                   | 1,185  |           |       |   | 1,698      |        |  |            | 522    |     |  |   | 9   |    
|                                                     |                                           |                   |        |           |       |   |            |        |  |            |        |    
|                                                     | Total investment in marketable securities |                   | $      | 12,646    |       |   | $          | 13,148 |  |            | $      | 868 |  |   | $   | 366 | 
|                                                     |                                           |                   |        |           |       |   |            |        |  |            |        |    
|Total consolidated other marketable securities       |                                           | $                 | 21,666 |           |       | $ | 22,215     |        |  | $          | 886    |     |  | $ | 382 |    
|                                                     |                                           |                   |        |           |       |   |            |        |  |            |        |    

II-63



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|                                    |                                     |                       |       |            |                     |   |    |            |            |   |        |     |    |   |   |   |   | 
|----------------------------------- | ----------------------------------- | --------------------- | ----- | ---------- | ------------------- | - | -- | ---------- | ---------- | - | ------ | --- | -- | - | - | - | - | 
|                                    |                                     | December 31, 2004     |      
|                                    |                                     |                       |      
|                                    |                                     | Less than 12 Months   |       |            | 12 months or longer |  
|                                    |                                     |                       |       |            |                     |  
|                                    |                                     |                       |       | Unrealized |                     |   |    |            | Unrealized |  
|                                    |                                     | Fair value            |       |            | losses              |   |    | Fair value |            |   | losses |    
|                                    |                                     |                       |       |            |                     |   |    |            |            |   |        |    
|                                    |                                     | (Dollars in millions) |      
|Automotive and Other Operations     |                                     |                       |       |            |                     |   |    |            |            |   |        |     |    |   |   |  
|Available for sale securities       |                                     |                       |       |            |                     |   |    |            |            |   |        |     |    |   |   |  
|                                    | Corporate debt securities and Other |                       | $     | 1,698      |                     |   | $  | 16         |            |   | $      | 81  |    |   | $ | 3 |  
|                                    | U.S. government and agencies        |                       |       | 1,293      |                     |   |    | 11         |            |   |        |    |    |   |   |  |  
|                                    | Mortgage backed securities          |                       |       | 418        |                     |   |    | 4          |            |   |        | 33  |    |   |   | 1 |  
|                                    |                                     |                       |       |            |                     |   |    |            |            |   |        |    
|                                    | Total marketable securities         |                       | $     | 3,409      |                     |   | $  | 31         |            |   | $      | 114 |    |   | $ | 4 |  
|                                    |                                     |                       |       |            |                     |   |    |            |            |   |        |    
|Financing and Insurance Operations  |                                     |                       |       |            |                     |   |    |            |            |   |        |     |    |   |   |  
|Available for sale securities       |                                     |                       |       |            |                     |   |    |            |            |   |        |     |    |   |   |  
|Debt securities                     |                                     |                       |       |            |                     |   |    |            |            |   |        |     |    |   |   |  
|                                    | U.S. Treasury and federal agencies  |                       | $     | 971        |                     |   | $  | 8          |            |   | $      |    |    |   | $ |  |  
|                                    | Foreign government securities       |                       |       | 208        |                     |   |    | 1          |            |   |        |    |    |   |   |  |  
|                                    | Mortgage-backed securities:         |                       |       |            |                     |   |    |            |            |   |        |     |    |   |   |   |  
|                                    |                                     | Residential           |       |            | 67                  |   |    |            | 5          |   |        |     |   |   |   |   |  | 
|                                    |                                     | Commercial            |       |            | 343                 |   |    |            | 2          |   |        |     | 14 |   |   |   | 1 | 
|                                    | Interest-only strips                |                       |       | 27         |                     |   |    | 3          |            |   |        |    |    |   |   |  |  
|                                    | Corporate debt securities           |                       |       | 547        |                     |   |    | 5          |            |   |        |    |    |   |   |  |  
|                                    | Other                               |                       |       | 35         |                     |   |    | 2          |            |   |        |    |    |   |   |  |  
|                                    |                                     |                       |       |            |                     |   |    |            |            |   |        |    
|Total debt securities               |                                     |                       | 2,198 |            |                     |   | 26 |            |            |   | 14     |     |    |   | 1 |  
|Equity securities                   |                                     |                       | 88    |            |                     |   | 6  |            |            |   |       |     |    |   |  |  
|                                    |                                     |                       |       |            |                     |   |    |            |            |   |        |    
|Total available for sale securities |                                     | $                     | 2,286 |            |                     | $ | 32 |            |            | $ | 14     |     |    | $ | 1 |  
|                                    |                                     |                       |       |            |                     |   |    |            |            |   |        |    
|Total held to maturity securities   |                                     | $                     | 15    |            |                     | $ | 1  |            |            | $ |       |     |    | $ |  |  
|                                    |                                     |                       |       |            |                     |   |    |            |            |   |        |    






|        |                           
|------- | --------------------------
|NOTE 6. | Variable Interest Entities



II-64



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|        |                                       
|------- | --------------------------------------
|NOTE 6. | Variable Interest Entities (continued)



| |                                
| | -------------------------------
| | Automotive and Other Operations

Synthetic Leases




| |                                   
| | ----------------------------------
| | Financing and Insurance Operations

Automotive finance receivables


Mortgage warehouse funding




II-65



---



##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|        |                                       
|------- | --------------------------------------
|NOTE 6. | Variable Interest Entities (continued)



Residential mortgage loan alliances


Construction and real estate lending




Warehouse lending


Collateralized debt obligations (CDOs)




II-66



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|        |                                       
|------- | --------------------------------------
|NOTE 6. | Variable Interest Entities (continued)





Interests in real estate partnerships


Accounting for Sales
of Real Estate.




II-67



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




NOTE 6.     Variable Interest
Entities (concluded)


Residential mortgage loan alliances


Construction and real estate lending




New market tax credit funds


II-68



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)









|        |                                        
|------- | ---------------------------------------
|NOTE 7. | Finance Receivables and Securitizations



| |                          
| | -------------------------
| | Finance Receivables  Net



|                                                |                           |                                  |         |        |        |   |         |        |        | 
|----------------------------------------------- | ------------------------- | -------------------------------- | ------- | ------ | ------ | - | ------- | ------ | ------ | 
|                                                |                           | December 31,                     |        
|                                                |                           |                                  |        
|                                                |                           | 2004                             |         |        | 2003   |  
|                                                |                           |                                  |         |        |        |  
|Consumer:                                       |                           |                                  |         |        |        |   |         |       
|                                                | Retail automotive         |                                  | $       | 92,225 |        |   | $       | 88,594 |       
|                                                | Residential mortgages     |                                  |         | 57,709 |        |   |         | 46,307 |       
|                                                |                           |                                  |         |        |        |  
|Total consumer                                  |                           |                                  | 149,934 |        |        |   | 134,901 |       
|Commercial:                                     |                           |                                  |         |        |        |   |         |       
|                                                | Automotive:               |                                  |         |        |        |   |         |        |       
|                                                |                           | Wholesale                        |         |        | 27,796 |   |         |        | 25,517 | 
|                                                |                           | Leasing and lease financing      |         |        | 1,466  |   |         |        | 1,465  | 
|                                                |                           | Term loans to dealers and others |         |        | 3,662  |   |         |        | 3,912  | 
|                                                | Commercial and industrial |                                  |         | 14,203 |        |   |         | 9,783  |       
|                                                | Commercial real estate:   |                                  |         |        |        |   |         |        |       
|                                                |                           | Commercial mortgage              |         |        | 3,148  |   |         |        | 180    | 
|                                                |                           | Real estate construction         |         |        | 2,810  |   |         |        | 2,053  | 
|                                                |                           |                                  |         |        |        |  
|Total commercial                                |                           |                                  | 53,085  |        |        |   | 42,910  |       
|                                                |                           |                                  |         |        |        |  
|Total finance receivables and loans             |                           |                                  | 203,019 |        |        |   | 177,811 |       
|Allowance for financing losses                  |                           |                                  | (3,419  | )      |        |   | (3,042  | )     
|                                                |                           |                                  |         |        |        |  
|Total consolidated finance receivables  net(1) |                           | $                                | 199,600 |        |        | $ | 174,769 |       
|                                                |                           |                                  |         |        |        |  






|    |                                                                                                             
|--- | ------------------------------------------------------------------------------------------------------------
|(1) | Net of unearned income of $7.6 billion and
    $7.4 billion at December 31, 2004 and 2003,
    respectively.





| |                                                              
| | -------------------------------------------------------------
| | Securitizations of Finance Receivables and Mortgage
    Loans







II-69



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|        |                                                    
|------- | ---------------------------------------------------
|NOTE 7. | Finance Receivables and Securitizations (continued)







|                                                                  |  |                              |       |   |           |   |                |             |  |            |            |   |  |            |       |   |  |   |     | 
|----------------------------------------------------------------- |  | ---------------------------- | ----- | - | --------- | - | -------------- | ----------- |  | ---------- | ---------- | - |  | ---------- | ----- | - |  | - | --- | 
|                                                                  |  | Year Ended December 31, 2004 |      
|                                                                  |  |                              |      
|                                                                  |  | Retail                       |       |   |           |   | Mortgage Loans |             |  | Commercial |           
|                                                                  |  | Finance                      |       |   | Wholesale |   |                |             |  |            | Mortgage   |  
|                                                                  |  | Receivables                  |       |   | Loans     |   |                | Residential |  |            | Commercial |   |  | Securities |      
|                                                                  |  |                              |       |   |           |   |                |             |  |            |            |   |  |            |      
|Pre-tax gains on securitizations                                  |  | $                            | 9     |   |           | $ | 497            |             |  | $          | 602        |   |  | $          | 54    |   |  | $ | 11  | 
|Cash flow information:                                            |  |                              |       |   |           |   |                |             |  |            |            |   |  |            |       |   |  |   |     | 
|Proceeds from new securitizations                                 |  |                              | 1,824 |   |           |   | 9,188          |             |  |            | 29,412     |   |  |            | 2,108 |   |  |   | 935 | 
|Servicing fees received                                           |  |                              | 105   |   |           |   | 174            |             |  |            | 208        |   |  |            | 20    |   |  |   |    | 
|Other cash flows received on retained interests                   |  |                              | 340   |   |           |   | 808            |             |  |            | 729        |   |  |            | 216   |   |  |   | 68  | 
|Proceeds from collections reinvested in revolving securitizations |  |                              |      |   |           |   | 91,360         |             |  |            |           |   |  |            |      |   |  |   |    | 
|Repayments of servicing advances                                  |  |                              | 75    |   |           |   |               |             |  |            | 947        |   |  |            | 147   |   |  |   |    | 
|Cash outflow information:                                         |  |                              |       |   |           |   |                |             |  |            |            |   |  |            |       |   |  |   |     | 
|Servicing advances                                                |  |                              | (64   | ) |           |   |               |             |  |            | (1,035     | ) |  |            | (169  | ) |  |   |    | 
|Purchase obligations and options:                                 |  |                              |       |   |           |   |                |             |  |            |            |   |  |            |       |   |  |   |     | 
|Representations and warranties obligations                        |  |                              | (1    | ) |           |   |               |             |  |            | (66        | ) |  |            |      |   |  |   |    | 
|Administrator or servicer actions                                 |  |                              | (75   | ) |           |   |               |             |  |            |           |   |  |            |      |   |  |   |    | 
|Asset performance conditional calls                               |  |                              |      |   |           |   |               |             |  |            | (137       | ) |  |            |      |   |  |   |    | 
|Clean-up calls                                                    |  |                              | (269  | ) |           |   |               |             |  |            | (3,797     | ) |  |            |      |   |  |   |    | 

II-70



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|        |                                                    
|------- | ---------------------------------------------------
|NOTE 7. | Finance Receivables and Securitizations (continued)

|                                                                  |  |                              |       |   |           |   |                |             |  |            |            |   |  |            |       |   |  |   |       | 
|----------------------------------------------------------------- |  | ---------------------------- | ----- | - | --------- | - | -------------- | ----------- |  | ---------- | ---------- | - |  | ---------- | ----- | - |  | - | ----- | 
|                                                                  |  | Year Ended December 31, 2003 |      
|                                                                  |  |                              |      
|                                                                  |  | Retail                       |       |   |           |   | Mortgage Loans |             |  | Commercial |           
|                                                                  |  | Finance                      |       |   | Wholesale |   |                |             |  |            | Mortgage   |  
|                                                                  |  | Receivables                  |       |   | Loans     |   |                | Residential |  |            | Commercial |   |  | Securities |      
|                                                                  |  |                              |       |   |           |   |                |             |  |            |            |   |  |            |      
|Pre-tax gains on securitizations                                  |  | $                            | 37    |   |           | $ | 488            |             |  | $          | 522        |   |  | $          | 75    |   |  | $ | 14    | 
|Cash flow information:                                            |  |                              |       |   |           |   |                |             |  |            |            |   |  |            |       |   |  |   |       | 
|Proceeds from new securitizations                                 |  |                              | 1,604 |   |           |   | 3,625          |             |  |            | 29,566     |   |  |            | 3,342 |   |  |   | 1,870 | 
|Servicing fees received                                           |  |                              | 228   |   |           |   | 164            |             |  |            | 250        |   |  |            | 20    |   |  |   |      | 
|Other cash flows received on retained interests                   |  |                              | 753   |   |           |   | 174            |             |  |            | 955        |   |  |            | 317   |   |  |   | 69    | 
|Proceeds from collections reinvested in revolving securitizations |  |                              | 862   |   |           |   | 97,829         |             |  |            |           |   |  |            | 5     |   |  |   |      | 
|Repayments of servicing advances                                  |  |                              | 114   |   |           |   |               |             |  |            | 1,208      |   |  |            | 116   |   |  |   |      | 
|Cash outflow information:                                         |  |                              |       |   |           |   |                |             |  |            |            |   |  |            |       |   |  |   |       | 
|Servicing advances                                                |  |                              | (118  | ) |           |   |               |             |  |            | (1,242     | ) |  |            | (117  | ) |  |   |      | 
|Purchase obligations and options:(a)                              |  |                              |       |   |           |   |                |             |  |            |            |   |  |            |       |   |  |   |       | 
|Representations and warranties obligations                        |  |                              | (25   | ) |           |   |               |             |  |            | (154       | ) |  |            |      |   |  |   |      | 
|Administrator or servicer actions                                 |  |                              | (146  | ) |           |   |               |             |  |            |           |   |  |            |      |   |  |   |      | 
|Asset performance conditional calls                               |  |                              |      |   |           |   |               |             |  |            | (122       | ) |  |            |      |   |  |   |      | 
|Clean-up calls                                                    |  |                              | (885  | ) |           |   |               |             |  |            | (1,919     | ) |  |            |      |   |  |   |      | 

|                                                                  |  |                              |       |   |           |   |                |             |  |            |            |   |  |            |       |   |  |   |     | 
|----------------------------------------------------------------- |  | ---------------------------- | ----- | - | --------- | - | -------------- | ----------- |  | ---------- | ---------- | - |  | ---------- | ----- | - |  | - | --- | 
|                                                                  |  | Year Ended December 31, 2002 |      
|                                                                  |  |                              |      
|                                                                  |  | Retail                       |       |   |           |   | Mortgage Loans |             |  | Commercial |           
|                                                                  |  | Finance                      |       |   | Wholesale |   |                |             |  |            | Mortgage   |  
|                                                                  |  | Receivables                  |       |   | Loans     |   |                | Residential |  |            | Commercial |   |  | Securities |      
|                                                                  |  |                              |       |   |           |   |                |             |  |            |            |   |  |            |      
|Pre-tax gains on securitizations                                  |  | $                            | 239   |   |           | $ | 445            |             |  | $          | 562        |   |  | $          | 30    |   |  | $ | 18  | 
|Cash flow information:                                            |  |                              |       |   |           |   |                |             |  |            |            |   |  |            |       |   |  |   |     | 
|Proceeds from new securitizations                                 |  |                              | 9,982 |   |           |   | 2,327          |             |  |            | 38,025     |   |  |            | 1,848 |   |  |   | 439 | 
|Servicing fees received                                           |  |                              | 247   |   |           |   | 146            |             |  |            | 268        |   |  |            | 17    |   |  |   |    | 
|Other cash flows received on retained interests                   |  |                              | 1,361 |   |           |   | 318            |             |  |            | 1,044      |   |  |            | 86    |   |  |   | 37  | 
|Proceeds from collections reinvested in revolving securitizations |  |                              | 482   |   |           |   | 104,485        |             |  |            |           |   |  |            |      |   |  |   |    | 
|Repayments of servicing advances                                  |  |                              | 117   |   |           |   |               |             |  |            | 1,333      |   |  |            | 116   |   |  |   |    | 
|Cash outflow information:                                         |  |                              |       |   |           |   |                |             |  |            |            |   |  |            |       |   |  |   |     | 
|Servicing advances                                                |  |                              | (117  | ) |           |   |               |             |  |            | (1,449     | ) |  |            | (122  | ) |  |   |    | 
|Purchase obligations and options:(a)                              |  |                              |       |   |           |   |                |             |  |            |            |   |  |            |       |   |  |   |     | 
|Representations and warranties obligations                        |  |                              |      |   |           |   |               |             |  |            | (70        | ) |  |            |      |   |  |   |    | 
|Administrator or servicer actions                                 |  |                              | (198  | ) |           |   |               |             |  |            |           |   |  |            |      |   |  |   |    | 
|Asset performance conditional calls                               |  |                              |      |   |           |   |               |             |  |            | (58        | ) |  |            |      |   |  |   |    | 
|Clean-up calls                                                    |  |                              | (289  | ) |           |   | (55            | )           |  |            | (494       | ) |  |            |      |   |  |   |    | 

II-71



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|        |                                                    
|------- | ---------------------------------------------------
|NOTE 7. | Finance Receivables and Securitizations (continued)



|                                      |  |                              |          |                |                              |  |            |            |  |  |                |                |  |                |            |  |                |  |      |            |  |  |            |  |  |  |           |  |  |  |           | 
|------------------------------------- |  | ---------------------------- | -------- | -------------- | ---------------------------- |  | ---------- | ---------- |  |  | -------------- | -------------- |  | -------------- | ---------- |  | -------------- |  | ---- | ---------- |  |  | ---------- |  |  |  | --------- |  |  |  | --------- | 
|                                      |  | Year Ended December 31, 2004 |          |                | Year Ended December 31, 2003 | 
|                                      |  |                              |          |                |                              | 
|                                      |  |                              |          | Mortgage Loans |                              |  | Commercial |            |  |  |                | Mortgage Loans |  |                | Commercial | 
|                                      |  | Retail Finance               |          |                |                              |  |            | Mortgage   |  |  | Retail Finance |                |  |                |            |  | Mortgage       | 
|                                      |  | Receivables(a)               |          |                | Residential(b)               |  |            | Commercial |  |  | Securities     |                |  | Receivables(a) |            |  | Residential(b) |  |      | Commercial |  |  | Securities | 
|                                      |  |                              |          |                |                              |  |            |            |  |  |                |                |  |                |            |  |                |  |      |            |  |  |            | 
|Key assumptions(c) (rates per annum): |  |                              |          |                |                              |  |            |            |  |  |                |                |  |                |            |  |                |  |      |            |  |  |            |  |  |  |           |  |  |  |           | 
|Annual prepayment rate(d)             |  |                              | 0.9-1.0% |                |                              |  | 0.0-51.3%  |            |  |  | 0.0-50.0%      |                |  |                | 0.0-19.9%  |  |                |  | 0.9% |            |  |  | 3.1-59.9%  |  |  |  | 0.0-50.0% |  |  |  | 0.0%      | 
|Weighted average life (in years)      |  |                              | 1.6-1.8  |                |                              |  | 1.1-5.5    |            |  |  | 0.4-8.8        |                |  |                | 2.5-17.4   |  |                |  | 1.6  |            |  |  | 1.1-5.9    |  |  |  | 1.4-6.2   |  |  |  | 2.5-25.1  | 
|Expected credit losses                |  |                              | (e)      |                |                              |  | 0.0-10.9%  |            |  |  | 0.0%           |                |  |                | 0.0-3.1%   |  |                |  | (e)  |            |  |  | 0.4-7.3%   |  |  |  | 0.0-0.8%  |  |  |  | 0.0-1.6%  | 
|Discount rate                         |  |                              | 9.5%     |                |                              |  | 6.5-24.8%  |            |  |  | 4.3-15.0%      |                |  |                | 8.2-11.7%  |  |                |  | 9.5% |            |  |  | 6.5-14.5%  |  |  |  | 2.6-10.8% |  |  |  | 8.6-10.0% | 






|    |                                                                                                                                                                                                                                                                                                                                                                      
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | The fair value of retained interests in wholesale
    securitizations approximates cost because of the short-term and
    floating rate nature of wholesale loans.                                                                                                                                                                                                   
|   
|(b) | Included within residential mortgage loans are home equity loans
    and lines, high
    loan-to-value loans and
    residential first and second mortgage loans.                                                                                                                                                                                                    
|   
|(c) | The assumptions used to measure the expected yield on variable
    rate retained interests are based on a benchmark interest rate
    yield curve, plus a contractual spread, as appropriate. The
    actual yield curve utilized varies depending on the specific
    retained interests.                                                                           
|   
|(d) | Based on the weighted average maturity (WAM) for finance
    receivables and constant prepayment rate (CPR) for mortgage
    loans and commercial mortgage securities.                                                                                                                                                                                               
|   
|(e) | Amounts totaling $39 million and $83 million at
    December 31, 2004 and 2003, respectively, have been
    established for expected credit losses on automotive finance
    receivables securitized in off-balance sheet transactions. Such
    amounts are included in the fair value of the retained
    interests, which are classified as investment securities.

II-72



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|        |                                                    
|------- | ---------------------------------------------------
|NOTE 7. | Finance Receivables and Securitizations (continued)



|                                                |                              |                |              |                |             |  |               |            |  |  |                     |       |  |  |               |        | 
|----------------------------------------------- | ---------------------------- | -------------- | ------------ | -------------- | ----------- |  | ------------- | ---------- |  |  | ------------------- | ----- |  |  | ------------- | ------ | 
|                                                |                              |                |              | Mortgage Loans |             |  |              
|                                                |                              | Retail Finance |              |                |             |  |               | Commercial | 
|                                                |                              | Receivables(a) |              |                | Residential |  |               | Commercial |  |  | Mortgage Securities |      
|                                                |                              |                |              |                |             |  |               |            |  |  |                     |      
|Carrying value/fair value of retained interests |                              |                | $ 748        |                |             |  | $1,247        |            |  |  | $ 443               |       |  |  | $ 314         |       
|Weighted average life (in years)                |                              |                | 0.1-1.5      |                |             |  | 1.1-5.4       |            |  |  | 0.1-17.3            |       |  |  | 1.5-24.1      |       
|Annual prepayment rate                          |                              |                | 0.5-1.6% WAM |                |             |  | 0.0-55.0% CPR |            |  |  | 0.0-55.0% CPR       |       |  |  | 0.0-21.1% CPR |       
|                                                | Impact of 10% adverse change |                |              | $ (1)          |             |  |               | $ (49)     |  |  |                     | $    |  |  |               | $ (1)  | 
|                                                | Impact of 20% adverse change |                |              | (2)            |             |  |               | (86)       |  |  |                     | (1)   |  |  |               | (2)    | 
|                                                |                              |                |              |                |             |  |               |            |  |  |                     |      
|Loss assumption                                 |                              |                | (b)          |                |             |  | 0.3-26.1%     |            |  |  | 0.0-4.2%            |       |  |  | 0.0-39.5%     |       
|                                                | Impact of 10% adverse change |                |              | $ (4)          |             |  |               | $ (50)     |  |  |                     | $ (7) |  |  |               | $ (13) | 
|                                                | Impact of 20% adverse change |                |              | (9)            |             |  |               | (93)       |  |  |                     | (12)  |  |  |               | (26)   | 
|                                                |                              |                |              |                |             |  |               |            |  |  |                     |      
|Discount rate                                   |                              |                | 9.5-12.0%    |                |             |  | 6.5-40.0%     |            |  |  | 3.8-26.3%           |       |  |  | 5.3-15.0%     |       
|                                                | Impact of 10% adverse change |                |              | $ (3)          |             |  |               | $ (36)     |  |  |                     | $ (5) |  |  |               | $ (18) | 
|                                                | Impact of 20% adverse change |                |              | (7)            |             |  |               | (68)       |  |  |                     | (11)  |  |  |               | (35)   | 
|                                                |                              |                |              |                |             |  |               |            |  |  |                     |      
|Market rate(d)                                  |                              |                | 2.7-3.6%     |                |             |  | (c)           |            |  |  | (c)                 |       |  |  | (c)           |       
|                                                | Impact of 10% adverse change |                |              | $ (4)          |             |  |               | $ (15)     |  |  |                     | $    |  |  |               | $     | 
|                                                | Impact of 20% adverse change |                |              | (8)            |             |  |               | (30)       |  |  |                     |      |  |  |               |       | 






|    |                                                                                                                                                                                                                         
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Fair value of retained interests in wholesale securitizations
    approximates cost because of the short-term and floating rate
    nature of wholesale receivables.                                                    
|   
|(b) | Net of a reserve for expected credit losses totaling
    $39 million at December 31, 2004. Such amounts are
    included in the fair value of the retained interests, which are
    classified as investment securities.
|   
|(c) | Forward benchmark interest rate yield curve plus contractual
    spread.                                                                                                                                                
|   
|(d) | Represents the rate of return paid to the investors.                                                                                                                                                                    



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|        |                                                    
|------- | ---------------------------------------------------
|NOTE 7. | Finance Receivables and Securitizations (concluded)



|                                 |  |                                  |           |   |      |  |           |      |  |  |           |  
|-------------------------------- |  | -------------------------------- | --------- | - | ---- |  | --------- | ---- |  |  | --------- | -
|                                 |  | Loans Securitized in Years Ended |          
|                                 |  | December 31,(a)                  |          
|                                 |  |                                  |          
|                                 |  | 2004                             |           |   | 2003 |  |           | 2002 | 
|                                 |  |                                  |           |   |      |  |           |      | 
|Retail automotive                |  |                                  | 0.4       | % |      |  | 0.4       | %    |  |  | 0.6       | %
|Residential mortgage             |  |                                  | 0.0- 26.1 | % |      |  | 0.0- 26.1 | %    |  |  | 0.0- 24.8 | %
|Commercial mortgage              |  |                                  | 0.0-4.2   | % |      |  | 0.0- 6.6  | %    |  |  | 0.0- 4.1  | %
|Commercial investment securities |  |                                  | 0.0- 39.5 | % |      |  | 0.9- 33.7 | %    |  |  | 0.3- 36.8 | %






|    |  |                                                                                                                          
|--- |  | -------------------------------------------------------------------------------------------------------------------------
|(a) |  | Static pool losses not applicable to wholesale finance
    receivable securitizations because of their short-term nature.



|                                    |                                           |                       |         |         |                   |   |         |                   |   |   |       |       |  |      |       |       |      |   |       |       |  |   |       |       | 
|----------------------------------- | ----------------------------------------- | --------------------- | ------- | ------- | ----------------- | - | ------- | ----------------- | - | - | ----- | ----- |  | ---- | ----- | ----- | ---- | - | ----- | ----- |  | - | ----- | ----- | 
|                                    |                                           | Total Finance         |         |         | Amount 60 Days or |   |         |                  
|                                    |                                           | Receivables and Loans |         |         | More Past Due     |   |         | Net Credit Losses |  
|                                    |                                           |                       |         |         |                   |   |         |                   |  
|December 31,                        |                                           | 2004                  |         |         | 2003              |   |         | 2004              |   |   | 2003  |       |  | 2004 |       |       | 2003 |  
|                                    |                                           |                       |         |         |                   |   |         |                   |   |   |       |       |  |      |       |       |      |  
|                                    |                                           | (Dollars in millions) |        
|Retail automotive                   |                                           | $                     | 97,631  |         |                   | $ | 100,628 |                   |   | $ | 806   |       |  | $    | 755   |       |      | $ | 1,044 |       |  | $ | 1,128 |      
|Residential mortgage                |                                           |                       | 129,550 |         |                   |   | 104,378 |                   |   |   | 6,686 |       |  |      | 4,974 |       |      |   | 944   |       |  |   | 682   |      
|                                    |                                           |                       |         |         |                   |   |         |                   |   |   |       |       |  |      |       |       |      |  
|                                    | Total consumer                            |                       |         | 227,181 |                   |   |         | 205,006           |   |   |       | 7,492 |  |      |       | 5,729 |      |   |       | 1,988 |  |   |       | 1,810 | 
|                                    |                                           |                       |         |         |                   |   |         |                   |   |   |       |       |  |      |       |       |      |  
|Wholesale                           |                                           |                       | 49,197  |         |                   |   | 46,644  |                   |   |   | 51    |       |  |      | 47    |       |      |   | 2     |       |  |   | 5     |      
|Commercial mortgage                 |                                           |                       | 21,353  |         |                   |   | 22,621  |                   |   |   | 410   |       |  |      | 652   |       |      |   | 130   |       |  |   | 66    |      
|Other automotive and commercial     |                                           |                       | 22,155  |         |                   |   | 17,364  |                   |   |   | 544   |       |  |      | 636   |       |      |   | 71    |       |  |   | 194   |      
|                                    |                                           |                       |         |         |                   |   |         |                   |   |   |       |       |  |      |       |       |      |  
|                                    | Total commercial                          |                       |         | 92,705  |                   |   |         | 86,629            |   |   |       | 1,005 |  |      |       | 1,335 |      |   |       | 203   |  |   |       | 265   | 
|                                    |                                           |                       |         |         |                   |   |         |                   |   |   |       |       |  |      |       |       |      |  
|Total managed portfolio(a)          |                                           |                       | 319,886 |         |                   |   | 291,635 |                   |   | $ | 8,497 |       |  | $    | 7,064 |       |      | $ | 2,191 |       |  | $ | 2,075 |      
|                                    |                                           |                       |         |         |                   |   |         |                   |   |   |       |       |  |      |       |       |      |  
|                                    | Securitized finance receivables and loans |                       |         | (96,801 | )                 |   |         | (94,622           | ) |   |       |       |  |      |       |       |      |   |       |       |  |   |       |       | 
|                                    | Loans held for sale (unpaid principal)    |                       |         | (19,941 | )                 |   |         | (19,609           | ) |   |       |       |  |      |       |       |      |   |       |       |  |   |       |       | 
|                                    |                                           |                       |         |         |                   |   |         |                   |   |   |       |       |  |      |       |       |      |  
|Total finance receivables and loans |                                           | $                     | 203,144 |         |                   | $ | 177,404 |                   |   |   |       |       |  |      |       |       |      |   |       |       |  |   |       |      
|                                    |                                           |                       |         |         |                   |   |         |                   |   |   |       |       |  |      |       |       |      |  






|    |  |                                                                                                                                                                                                                                                                                                                                                       
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Managed portfolio represents finance receivables and loans on
    the balance sheet or that have been securitized, excluding
    securitized finance receivables and loans that GMAC continues to
    service but has no other continuing involvement (i.e., in which
    GMAC retains an interest or risk of loss in the underlying
    receivables).

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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)









|        |            
|------- | -----------
|NOTE 8. | Inventories



| |                                
| | -------------------------------
| | Automotive and Other Operations



|                                                   |                           |                     |                                     |        |        |        |       |        |        |        | 
|-------------------------------------------------- | ------------------------- | ------------------- | ----------------------------------- | ------ | ------ | ------ | ----- | ------ | ------ | ------ | 
|                                                   |                           | December 31,        |                                    
|                                                   |                           |                     |                                    
|                                                   |                           | 2004                |                                     |        | 2003   |       
|                                                   |                           |                     |                                     |        |        |       
|Productive material, work in process, and supplies |                           | $                   | 4,838                               |        |        | $      | 4,899 |       
|Finished product, service parts, etc.              |                           |                     | 8,321                               |        |        |        | 7,642 |       
|                                                   |                           |                     |                                     |        |        |       
|                                                   | Total inventories at FIFO |                     |                                     | 13,159 |        |        |       | 12,541 |       
|                                                   |                           | Less LIFO allowance |                                     |        | (1,442 | )      |       |        | (1,581 | )     
|                                                   |                           |                     |                                     |        |        |       
|                                                   |                           |                     | Total inventories (less allowances) |        | $      | 11,717 |       |        | $      | 10,960 | 
|                                                   |                           |                     |                                     |        |        |       

last-in, first-in,






| |                                   
| | ----------------------------------
| | Financing and Insurance Operations



|                                                 |  |              |        |  |      |   |        | 
|------------------------------------------------ |  | ------------ | ------ |  | ---- | - | ------ | 
|                                                 |  | December 31, |       
|                                                 |  |              |       
|                                                 |  | 2004         |        |  | 2003 |  
|                                                 |  |              |        |  |      |  
|Off-lease vehicles                               |  | $            | 530    |  |      | $ | 642    | 
|                                                 |  |              |        |  |      |  
|Total consolidated inventories (less allowances) |  | $            | 12,247 |  |      | $ | 11,602 | 
|                                                 |  |              |        |  |      |  






|        |                              
|------- | -----------------------------
|NOTE 9. | Equipment on Operating Leases





| |                                
| | -------------------------------
| | Automotive and Other Operations



|                              |                |              |       |       |      |   |       |       | 
|----------------------------- | -------------- | ------------ | ----- | ----- | ---- | - | ----- | ----- | 
|                              |                | December 31, |      
|                              |                |              |      
|                              |                | 2004         |       |       | 2003 |  
|                              |                |              |       |       |      |  
|Equipment on operating leases |                | $            | 7,475 |       |      | $ | 7,994 |      
|Less accumulated depreciation |                |              | (987  | )     |      |   | (821  | )    
|                              |                |              |       |       |      |  
|                              | Net book value |              | $     | 6,488 |      |   | $     | 7,173 | 
|                              |                |              |       |       |      |  

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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|        |                                          
|------- | -----------------------------------------
|NOTE 9. | Equipment on Operating Leases (concluded)



| |                                   
| | ----------------------------------
| | Financing and Insurance Operations



|                                  |                |              |        |        |      |   |        |        | 
|--------------------------------- | -------------- | ------------ | ------ | ------ | ---- | - | ------ | ------ | 
|                                  |                | December 31, |       
|                                  |                |              |       
|                                  |                | 2004         |        |        | 2003 |  
|                                  |                |              |        |        |      |  
|Equipment on operating leases     |                | $            | 36,002 |        |      | $ | 33,522 |       
|Less accumulated depreciation     |                |              | (8,276 | )      |      |   | (7,944 | )     
|                                  |                |              |        |        |      |  
|                                  | Net book value |              | $      | 27,726 |      |   | $      | 25,578 | 
|                                  |                |              |        |        |      |  
|Total consolidated net book value |                | $            | 34,214 |        |      | $ | 32,751 |       
|                                  |                |              |        |        |      |  








|         |             
|-------- | ------------
|NOTE 10. | Income Taxes



|               |       |                          |     |       |      |   |       |       |  |   |       |       | 
|-------------- | ----- | ------------------------ | --- | ----- | ---- | - | ----- | ----- |  | - | ----- | ----- | 
|               |       | Years Ended December 31, |    
|               |       |                          |    
|               |       | 2004                     |     |       | 2003 |   |       | 2002  | 
|               |       |                          |     |       |      |   |       |       | 
|U.S. income    |       | $                        | 242 |       |      | $ | 1,802 |       |  | $ | (102  | )    
|Foreign income |       |                          | 944 |       |      |   | 1,195 |       |  |   | 2,212 |      
|               |       |                          |     |       |      |   |       |       | 
|               | Total |                          | $   | 1,186 |      |   | $     | 2,997 |  |   | $     | 2,110 | 
|               |       |                          |     |       |      |   |       |       | 



|                                               |                      |                          |                    |        |        |      |   |        |        |     |   |        |        |     | 
|---------------------------------------------- | -------------------- | ------------------------ | ------------------ | ------ | ------ | ---- | - | ------ | ------ | --- | - | ------ | ------ | --- | 
|                                               |                      | Years Ended December 31, |                   
|                                               |                      |                          |                   
|                                               |                      | 2004                     |                    |        | 2003   |      |   | 2002   |       
|                                               |                      |                          |                    |        |        |      |   |        |       
|Income taxes estimated to be payable currently |                      |                          |                    |        |        |      |   |        |        |     |   |       
|                                               | U.S. federal         |                          | $                  | (282   | )      |      | $ | 167    |        |     | $ | 46     |       
|                                               | Foreign              |                          |                    | 1,018  |        |      |   | 1,159  |        |     |   | 1,702  |       
|                                               | U.S. state and local |                          |                    | 36     |        |      |   | 414    |        |     |   | 325    |       
|                                               |                      |                          |                    |        |        |      |   |        |       
|                                               |                      | Total payable currently  |                    |        | 772    |      |   |        | 1,740  |     |   |        | 2,073  |    
|                                               |                      |                          |                    |        |        |      |   |        |       
|Deferred income tax expense (credit)  net     |                      |                          |                    |        |        |      |   |        |        |     |   |       
|                                               | U.S. federal         |                          |                    | (427   | )      |      |   | 134    |        |     |   | (63    | )     
|                                               | Foreign              |                          |                    | (1,239 | )      |      |   | (1,136 | )      |     |   | (1,187 | )     
|                                               | U.S. state and local |                          |                    | (22    | )      |      |   | (28    | )      |     |   | (245   | )     
|                                               |                      |                          |                    |        |        |      |   |        |       
|                                               |                      | Total deferred           |                    |        | (1,688 | )    |   |        | (1,030 | )   |   |        | (1,495 | )  
|                                               |                      |                          |                    |        |        |      |   |        |       
|                                               |                      |                          | Total income taxes |        | $      | (916 | ) |        | $      | 710 |   |        | $      | 578 | 
|                                               |                      |                          |                    |        |        |      |   |        |       



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|         |                         
|-------- | ------------------------
|NOTE 10. | Income Taxes (continued)





|                                                                |                  |                          |       |      |      |   |       |      |  |   |      |     | 
|--------------------------------------------------------------- | ---------------- | ------------------------ | ----- | ---- | ---- | - | ----- | ---- |  | - | ---- | --- | 
|                                                                |                  | Years Ended December 31, |      
|                                                                |                  |                          |      
|                                                                |                  | 2004                     |       |      | 2003 |   |       | 2002 | 
|                                                                |                  |                          |       |      |      |   |       |      | 
|Tax at U.S. federal statutory income tax rate                   |                  | $                        | 415   |      |      | $ | 1,049 |      |  | $ | 738  |    
|State and local tax expense                                     |                  |                          | (949  | )    |      |   | 21    |      |  |   | 99   |    
|Foreign rates other than 35%                                    |                  |                          | (510  | )    |      |   | (269  | )    |  |   | (184 | )  
|Taxes on unremitted earnings of subsidiaries                    |                  |                          | (366  | )    |      |   | (125  | )    |  |   | (124 | )  
|Other tax credits                                               |                  |                          | (41   | )    |      |   | (52   | )    |  |   | (82  | )  
|Settlement of prior year tax matters                            |                  |                          | (191  | )    |      |   | (194  | )    |  |   | 18   |    
|Change in valuation allowance                                   |                  |                          | 1,432 |      |      |   | 566   |      |  |   | 203  |    
|ESOP dividend deduction(1)                                      |                  |                          | (53   | )    |      |   | (53   | )    |  |   | (85  | )  
|Realization of basis differences due to foreign reorganizations |                  |                          | (483  | )    |      |   |      |      |  |   |     |    
|Medicare Prescription Drug Benefit                              |                  |                          | (211  | )    |      |   |      |      |  |   |     |    
|Loss carryforward related to investment write-down              |                  |                          | (168  | )    |      |   |      |      |  |   |     |    
|Stock contribution to pension plans(2)                          |                  |                          |      |      |      |   | (87   | )    |  |   |     |    
|Other adjustments                                               |                  |                          | 209   |      |      |   | (146  | )    |  |   | (5   | )  
|                                                                |                  |                          |       |      |      |   |       |      | 
|                                                                | Total income tax |                          | $     | (916 | )    |   | $     | 710  |  |   | $    | 578 | 
|                                                                |                  |                          |       |      |      |   |       |      | 






|    |                                                                                                                                                                                                                                
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Deduction for dividends paid on GM
    $12/3 par value common stock held under the employee stock
    ownership portion of the GM Savings Plans, pursuant to the
    Economic Growth and Tax Relief Reconciliation Act of 2001.
|   
|(2) | Additional tax benefit related to the GM Class H Common
    Stock contribution to the pension and VEBA plans.                                                                                                                  



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|         |                         
|-------- | ------------------------
|NOTE 10. | Income Taxes (continued)



|                                                                  |                         |                   |        |        |                   |   |        |        |  |   |             |        |  |   |        |        | 
|----------------------------------------------------------------- | ----------------------- | ----------------- | ------ | ------ | ----------------- | - | ------ | ------ |  | - | ----------- | ------ |  | - | ------ | ------ | 
|                                                                  |                         | December 31,      |       
|                                                                  |                         |                   |       
|                                                                  |                         | 2004 Deferred Tax |        |        | 2003 Deferred Tax |  
|                                                                  |                         |                   |        |        |                   |  
|                                                                  |                         | Assets            |        |        | Liabilities       |   |        | Assets |  |   | Liabilities |       
|                                                                  |                         |                   |        |        |                   |   |        |        |  |   |             |       
|Postretirement benefits other than pensions                       |                         | $                 | 9,377  |        |                   | $ |       |        |  | $ | 15,280      |        |  | $ |       |       
|Pension and other employee benefit plans                          |                         |                   | 3,787  |        |                   |   | 13,408 |        |  |   | 4,060       |        |  |   | 12,521 |       
|Warranties, dealer and customer allowances, claims, and discounts |                         |                   | 6,907  |        |                   |   | 42     |        |  |   | 6,541       |        |  |   | 108    |       
|Depreciation and amortization                                     |                         |                   | 5,043  |        |                   |   | 3,118  |        |  |   | 3,901       |        |  |   | 2,832  |       
|Tax carryforwards                                                 |                         |                   | 10,422 |        |                   |   |       |        |  |   | 3,784       |        |  |   |       |       
|Lease transactions                                                |                         |                   | 19     |        |                   |   | 3,801  |        |  |   | 10          |        |  |   | 4,297  |       
|Miscellaneous foreign                                             |                         |                   | 4,401  |        |                   |   | 2,300  |        |  |   | 5,562       |        |  |   | 2,602  |       
|Other                                                             |                         |                   | 9,050  |        |                   |   | 3,804  |        |  |   | 7,721       |        |  |   | 2,885  |       
|                                                                  |                         |                   |        |        |                   |   |        |        |  |   |             |       
|                                                                  | Subtotal                |                   |        | 49,006 |                   |   |        | 26,473 |  |   |             | 46,859 |  |   |        | 25,245 | 
|Valuation allowances                                              |                         |                   | (3,052 | )      |                   |   |       |        |  |   | (1,620      | )      |  |   |       |       
|                                                                  |                         |                   |        |        |                   |   |        |        |  |   |             |       
|                                                                  | Total deferred taxes    |                   | $      | 45,954 |                   |   | $      | 26,473 |  |   | $           | 45,239 |  |   | $      | 25,245 | 
|                                                                  |                         |                   |        |        |                   |   |        |        |  |   |             |       
|                                                                  | Net deferred tax assets |                   | $      | 19,481 |                   |   |        |        |  |   | $           | 19,994 |  |   |        |        | 
|                                                                  |                         |                   |        |        |                   |   |        |        |  |   |             |       



|                                     |       |      |        |        |      |   |        |        | 
|------------------------------------ | ----- | ---- | ------ | ------ | ---- | - | ------ | ------ | 
|                                     |       | 2004 |        |        | 2003 |  
|                                     |       |      |        |        |      |  
|Current deferred tax assets          |       | $    | 8,883  |        |      | $ | 9,104  |       
|Current deferred tax liabilities     |       |      | (5,226 | )      |      |   | (5,671 | )     
|Non-current deferred tax assets      |       |      | 17,676 |        |      |   | 18,398 |       
|Non-current deferred tax liabilities |       |      | (1,852 | )      |      |   | (1,837 | )     
|                                     |       |      |        |        |      |  
|                                     | Total |      | $      | 19,481 |      |   | $      | 19,994 | 
|                                     |       |      |        |        |      |  





II-78



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|         |                         
|-------- | ------------------------
|NOTE 10. | Income Taxes (concluded)








|         |               
|-------- | --------------
|NOTE 11. | Property  Net



|                                   |                                 |                                    |                                          |                      |              |   |        |        |         |        |        |        |         |        |        | 
|---------------------------------- | ------------------------------- | ---------------------------------- | ---------------------------------------- | -------------------- | ------------ | - | ------ | ------ | ------- | ------ | ------ | ------ | ------- | ------ | ------ | 
|                                   |                                 | Estimated                          |                                          |                      | December 31, |  
|                                   |                                 | Useful Lives                       |                                          |                      |              |  
|                                   |                                 | (Years)                            |                                          |                      | 2004         |   |        | 2003   |        
|                                   |                                 |                                    |                                          |                      |              |   |        |        |        
|Automotive and Other Operations    |                                 |                                    |                                          |                      |              |   |        |        |         |        |        |       
|                                   | Land                            |                                    |                                          |                     |              |   | $      | 967    |         |        | $      | 1,004  |        
|                                   | Buildings and land improvements |                                    |                                          | 2-40                 |              |   |        | 15,636 |         |        |        | 15,272 |        
|                                   | Machinery and equipment         |                                    |                                          | 3-30                 |              |   |        | 45,796 |         |        |        | 44,851 |        
|                                   | Construction in progress        |                                    |                                          |                     |              |   |        | 3,807  |         |        |        | 2,722  |        
|                                   |                                 |                                    |                                          |                      |              |   |        |        |        
|                                   |                                 | Real estate, plants, and equipment |                                          |                      |              |   |        |        | 66,206  |        |        |        | 63,849  |       
|                                   |                                 | Less accumulated depreciation      |                                          |                      |              |   |        |        | (39,405 | )      |        |        | (37,535 | )     
|                                   |                                 |                                    |                                          |                      |              |   |        |        |        
|                                   |                                 |                                    | Real estate, plants, and equipment  net |                      |              |   |        |        |         | 26,801 |        |        |         | 26,314 |       
|                                   |                                 |                                    | Special tools  net                      |                      |              |   |        |        |         | 10,369 |        |        |         | 9,757  |       
|                                   |                                 |                                    |                                          |                      |              |   |        |        |        
|                                   |                                 |                                    |                                          | Total property  net |              |   |        |        |         | $      | 37,170 |        |         | $      | 36,071 | 
|                                   |                                 |                                    |                                          |                      |              |   |        |        |        
|Financing and Insurance Operations |                                 |                                    |                                          |                      |              |   |        |        |         |        |        |       
|                                   | Equipment and other             |                                    |                                          | 2-10                 |              |   | $      | 3,086  |         |        | $      | 2,921  |        
|                                   |                                 | Less accumulated depreciation      |                                          |                      |              |   |        |        | (1,236  | )      |        |        | (1,020  | )     
|                                   |                                 |                                    |                                          |                      |              |   |        |        |        
|                                   |                                 |                                    |                                          | Total property  net |              |   |        |        |         | $      | 1,850  |        |         | $      | 1,901  | 
|                                   |                                 |                                    |                                          |                      |              |   |        |        |        
|Total consolidated property  net  |                                 |                                    |                                          |                      |              | $ | 39,020 |        |         | $      | 37,972 |       
|                                   |                                 |                                    |                                          |                      |              |   |        |        |        



|                                                 |                                   |                          |        |       |       |   |        |       |       |   |        |       |       | 
|------------------------------------------------ | --------------------------------- | ------------------------ | ------ | ----- | ----- | - | ------ | ----- | ----- | - | ------ | ----- | ----- | 
|                                                 |                                   | Years Ended December 31, |       
|                                                 |                                   |                          |       
|                                                 |                                   | 2004                     |        |       | 2003  |   |        | 2002  |      
|                                                 |                                   |                          |        |       |       |   |        |       |      
|Automotive and Other Operations                  |                                   |                          |        |       |       |   |        |       |       |   |        |      
|                                                 | Depreciation                      |                          | $      | 5,028 |       |   | $      | 4,526 |       |   | $      | 3,675 |      
|                                                 | Amortization of special tools     |                          |        | 3,563 |       |   |        | 3,391 |       |   |        | 2,648 |      
|                                                 | Amortization of intangible assets |                          |        | 38    |       |   |        | 29    |       |   |        | 1     |      
|                                                 |                                   |                          |        |       |       |   |        |       |      
|                                                 |                                   | Total                    |        | $     | 8,629 |   |        | $     | 7,946 |   |        | $     | 6,324 | 
|                                                 |                                   |                          |        |       |       |   |        |       |      
|Financing and Insurance Operations               |                                   |                          |        |       |       |   |        |       |       |   |        |      
|                                                 | Depreciation                      |                          | $      | 5,512 |       |   | $      | 5,556 |       |   | $      | 5,226 |      
|                                                 | Amortization of intangible assets |                          |        | 11    |       |   |        | 11    |       |   |        | 19    |      
|                                                 |                                   |                          |        |       |       |   |        |       |      
|                                                 |                                   | Total                    |        | $     | 5,523 |   |        | $     | 5,567 |   |        | $     | 5,245 | 
|                                                 |                                   |                          |        |       |       |   |        |       |      
|Total consolidated depreciation and amortization |                                   | $                        | 14,152 |       |       | $ | 13,513 |       |       | $ | 11,569 |      
|                                                 |                                   |                          |        |       |       |   |        |       |      

II-79



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)









|         |                               
|-------- | ------------------------------
|NOTE 12. | Goodwill and Intangible Assets



|                                                  |                                          |                                      |   |     |              |  |   |              |    |   |       |       |       | 
|------------------------------------------------- | ---------------------------------------- | ------------------------------------ | - | --- | ------------ |  | - | ------------ | -- | - | ----- | ----- | ----- | 
|                                                  |                                          | Gross Carrying                       |   |     | Accumulated  |  |   | Net Carrying |   
|                                                  |                                          | Amount                               |   |     | Amortization |  |   | Amount       |   
|                                                  |                                          |                                      |   |     |              |  |   |              |   
|December 31, 2004                                 |                                          |                                      |   |     |              |  |   |              |    |   |       |      
|Automotive and Other Operations                   |                                          |                                      |   |     |              |  |   |              |    |   |       |      
|Amortizing intangible assets:                     |                                          |                                      |   |     |              |  |   |              |    |   |       |      
|                                                  | Patents and intellectual property rights |                                      | $ | 303 |              |  | $ | 69           |    |   | $     | 234   |      
|Non-amortizing intangible assets:                 |                                          |                                      |   |     |              |  |   |              |    |   |       |      
|                                                  | Goodwill                                 |                                      |   |     |              |  |   |              |    |   |       | 600   |      
|                                                  | Prepaid pension asset (Note 16)          |                                      |   |     |              |  |   |              |    |   |       | 765   |      
|                                                  |                                          |                                      |   |     |              |  |   |              |   
|                                                  |                                          | Total goodwill and intangible assets |   |     |              |  |   |              |    |   |       | $     | 1,599 | 
|Financing and Insurance Operations                |                                          |                                      |   |     |              |  |   |              |    |   |       |      
|Amortizing intangible assets:                     |                                          |                                      |   |     |              |  |   |              |    |   |       |      
|                                                  | Customer lists and contracts             |                                      | $ | 73  |              |  | $ | 41           |    |   | $     | 32    |      
|                                                  | Trademarks and other                     |                                      |   | 40  |              |  |   | 20           |    |   |       | 20    |      
|                                                  | Covenants not to compete                 |                                      |   | 18  |              |  |   | 18           |    |   |       |      |      
|                                                  |                                          |                                      |   |     |              |  |   |              |   
|                                                  |                                          | Total                                |   | $   | 131          |  |   | $            | 79 |   |       | $     | 52    | 
|                                                  |                                          |                                      |   |     |              |  |   |              |   
|Non-amortizing intangible assets:                 |                                          |                                      |   |     |              |  |   |              |    |   |       |      
|                                                  | Goodwill                                 |                                      |   |     |              |  |   |              |    |   |       | 3,274 |      
|                                                  |                                          |                                      |   |     |              |  |   |              |   
|                                                  |                                          | Total goodwill and intangible assets |   |     |              |  |   |              |    |   |       |       | 3,326 | 
|                                                  |                                          |                                      |   |     |              |  |   |              |   
|Total consolidated goodwill and intangible assets |                                          |                                      |   |     |              |  |   |              |    | $ | 4,925 |      
|                                                  |                                          |                                      |   |     |              |  |   |              |   

|                                                  |                                          |                                      |   |     |     |  |   |    |    |   |       |       |       | 
|------------------------------------------------- | ---------------------------------------- | ------------------------------------ | - | --- | --- |  | - | -- | -- | - | ----- | ----- | ----- | 
|December 31, 2003                                 |                                          |                                      |   |     |     | 
|Automotive and Other Operations                   |                                          |                                      |   |     |     |  |   |    |    |   |       |      
|Amortizing intangible assets:                     |                                          |                                      |   |     |     |  |   |    |    |   |       |      
|                                                  | Patents and intellectual property rights |                                      | $ | 303 |     |  | $ | 31 |    |   | $     | 272   |      
|Non-amortizing intangible assets:                 |                                          |                                      |   |     |     |  |   |    |    |   |       |      
|                                                  | Goodwill                                 |                                      |   |     |     |  |   |    |    |   |       | 567   |      
|                                                  | Prepaid pension asset (Note 16)          |                                      |   |     |     |  |   |    |    |   |       | 640   |      
|                                                  |                                          |                                      |   |     |     |  |   |    |   
|                                                  |                                          | Total goodwill and intangible assets |   |     |     |  |   |    |    |   |       | $     | 1,479 | 
|Financing and Insurance Operations                |                                          |                                      |   |     |     |  |   |    |    |   |       |      
|Amortizing intangible assets:                     |                                          |                                      |   |     |     |  |   |    |    |   |       |      
|                                                  | Customer lists and contracts             |                                      | $ | 65  |     |  | $ | 31 |    |   | $     | 34    |      
|                                                  | Trademarks and other                     |                                      |   | 40  |     |  |   | 16 |    |   |       | 24    |      
|                                                  | Covenants not to compete                 |                                      |   | 18  |     |  |   | 18 |    |   |       |      |      
|                                                  |                                          |                                      |   |     |     |  |   |    |   
|                                                  |                                          | Total                                |   | $   | 123 |  |   | $  | 65 |   |       | $     | 58    | 
|                                                  |                                          |                                      |   |     |     |  |   |    |   
|Non-amortizing intangible assets:                 |                                          |                                      |   |     |     |  |   |    |    |   |       |      
|                                                  | Goodwill                                 |                                      |   |     |     |  |   |    |    |   |       | 3,223 |      
|                                                  |                                          |                                      |   |     |     |  |   |    |   
|                                                  |                                          | Total goodwill and intangible assets |   |     |     |  |   |    |    |   |       |       | 3,281 | 
|                                                  |                                          |                                      |   |     |     |  |   |    |   
|Total consolidated goodwill and intangible assets |                                          |                                      |   |     |     |  |   |    |    | $ | 4,760 |      
|                                                  |                                          |                                      |   |     |     |  |   |    |   

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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|         |                                           
|-------- | ------------------------------------------
|NOTE 12. | Goodwill and Intangible Assets (concluded)





|                                                       |  |      |     |   |     |        |     |       |  |   |      |   |  |          |       |      |  |   |       |  
|------------------------------------------------------ |  | ---- | --- | - | --- | ------ | --- | ----- |  | - | ---- | - |  | -------- | ----- | ---- |  | - | ----- | -
|                                                       |  |      |     |   |     | Total  |     |       |  |   |     
|                                                       |  |      |     |   |     | Auto & |     |       |  |   |     
|                                                       |  | GMNA |     |   | GME |        |     | Other |  |   | GMAC |   |  | Total GM |      
|                                                       |  |      |     |   |     |        |     |       |  |   |      |   |  |          |      
|Balance as of December 31, 2002                        |  | $    | 139 |   |     | $      | 338 |       |  | $ | 477  |   |  | $        | 3,273 |      |  | $ | 3,750 |  
|Goodwill acquired during the period                    |  |      |    |   |     |        |    |       |  |   |     |   |  |          | 18    |      |  |   | 18    |  
|Goodwill written off related to sale of business units |  |      | (4  | ) |     |        |    |       |  |   | (4   | ) |  |          |      |      |  |   | (4    | )
|Effect of foreign currency translation                 |  |      | 6   |   |     |        | 75  |       |  |   | 81   |   |  |          | 51    |      |  |   | 132   |  
|Other                                                  |  |      | 13  |   |     |        |    |       |  |   | 13   |   |  |          | (119  | )(1) |  |   | (106  | )
|                                                       |  |      |     |   |     |        |     |       |  |   |      |   |  |          |      
|Balance as of December 31, 2003                        |  |      | 154 |   |     |        | 413 |       |  |   | 567  |   |  |          | 3,223 |      |  |   | 3,790 |  
|Goodwill acquired during the period                    |  |      |    |   |     |        |    |       |  |   |     |   |  |          | 16    |      |  |   | 16    |  
|Effect of foreign currency translation                 |  |      | 5   |   |     |        | 33  |       |  |   | 38   |   |  |          | 35    |      |  |   | 73    |  
|Other                                                  |  |      | (5  | ) |     |        |    |       |  |   | (5   | ) |  |          |      |      |  |   | (5    | )
|                                                       |  |      |     |   |     |        |     |       |  |   |      |   |  |          |      
|Balance as of December 31, 2004                        |  | $    | 154 |   |     | $      | 446 |       |  | $ | 600  |   |  | $        | 3,274 |      |  | $ | 3,874 |  
|                                                       |  |      |     |   |     |        |     |       |  |   |      |   |  |          |      






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                  
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | In September 2003, GMAC received $110 million related to a
    settlement of a claim involving the 1999 acquisition of the
    asset-based lending and factoring business of The Bank of New
    York. Of the settlement amount, $109 million represented a
    purchase price adjustment, reducing the related goodwill; the
    remainder represented a reimbursement of tax claims paid on
    behalf of The Bank of New York.






|         |             
|-------- | ------------
|NOTE 13. | Other Assets



| |                                
| | -------------------------------
| | Automotive and Other Operations



|                                       |                    |              |        |        |      |   |        |        | 
|-------------------------------------- | ------------------ | ------------ | ------ | ------ | ---- | - | ------ | ------ | 
|                                       |                    | December 31, |       
|                                       |                    |              |       
|                                       |                    | 2004         |        |        | 2003 |  
|                                       |                    |              |        |        |      |  
|Investments in equity securities       |                    | $            | 350    |        |      | $ | 470    |       
|Prepaid pension benefit cost (Note 16) |                    |              | 38,919 |        |      |   | 40,248 |       
|Other                                  |                    |              | 1,575  |        |      |   | 1,544  |       
|                                       |                    |              |        |        |      |  
|                                       | Total other assets |              | $      | 40,844 |      |   | $      | 42,262 | 
|                                       |                    |              |        |        |      |  





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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|         |                         
|-------- | ------------------------
|NOTE 13. | Other Assets (continued)







| |                                   
| | ----------------------------------
| | Financing and Insurance Operations



|                                                      |                    |              |       |        |      |   |        |        | 
|----------------------------------------------------- | ------------------ | ------------ | ----- | ------ | ---- | - | ------ | ------ | 
|                                                      |                    | December 31, |      
|                                                      |                    |              |      
|                                                      |                    | 2004         |       |        | 2003 |  
|                                                      |                    |              |       |        |      |  
|Mortgage servicing rights                             |                    | $            | 3,890 |        |      | $ | 3,720  |       
|Premiums and other insurance receivables              |                    |              | 1,763 |        |      |   | 1,960  |       
|Deferred policy acquisition costs                     |                    |              | 1,444 |        |      |   | 1,038  |       
|Derivative assets                                     |                    |              | 9,489 |        |      |   | 10,026 |       
|Repossessed and foreclosed assets, net                |                    |              | 615   |        |      |   | 594    |       
|Equity investments                                    |                    |              | 1,751 |        |      |   | 1,560  |       
|Intangible assets (Note 12)                           |                    |              | 3,326 |        |      |   | 3,281  |       
|Property (Note 11)                                    |                    |              | 1,850 |        |      |   | 1,901  |       
|Cash deposits held for securitization trusts          |                    |              | 1,836 |        |      |   | 1,922  |       
|Restricted cash collections for securitization trusts |                    |              | 2,217 |        |      |   | 2,291  |       
|Accrued interest and rent receivable                  |                    |              | 1,178 |        |      |   | 767    |       
|Real estate investments                               |                    |              | 1,473 |        |      |   | 1,219  |       
|Debt issuance costs                                   |                    |              | 753   |        |      |   | 716    |       
|Servicer advances                                     |                    |              | 769   |        |      |   | 946    |       
|Inventory (Note 8)                                    |                    |              | 530   |        |      |   | 642    |       
|Other                                                 |                    |              | 2,307 |        |      |   | 3,092  |       
|                                                      |                    |              |       |        |      |  
|                                                      | Total other assets |              | $     | 35,191 |      |   | $      | 35,675 | 
|                                                      |                    |              |       |        |      |  

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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|         |                         
|-------- | ------------------------
|NOTE 13. | Other Assets (concluded)



| |                                                                 
| | ----------------------------------------------------------------
| | Reclassification for Consolidated Balance Sheet
    Presentation

|                                               |                                 |              |         |        |      |   |         |        | 
|---------------------------------------------- | ------------------------------- | ------------ | ------- | ------ | ---- | - | ------- | ------ | 
|                                               |                                 | December 31, |        
|                                               |                                 |              |        
|                                               |                                 | 2004         |         |        | 2003 |  
|                                               |                                 |              |         |        |      |  
|Auto & Other  other assets, as detailed above |                                 | $            | 40,844  |        |      | $ | 42,262  |       
|FIO  other assets, as detailed above          |                                 |              | 35,191  |        |      |   | 35,675  |       
|                                               |                                 |              |         |        |      |  
|                                               | Subtotal                        |              |         | 76,035 |      |   |         | 77,937 | 
|                                               |                                 |              |         |        |      |  
|Prepaid assets and other                       |                                 |              | 1,874   |        |      |   | 1,560   |       
|Inventory (Note 8)                             |                                 |              | (530    | )      |      |   | (642    | )     
|Accounts receivable                            |                                 |              | (14,523 | )      |      |   | (15,152 | )     
|Intangible assets (Note 12)                    |                                 |              | (3,326  | )      |      |   | (3,281  | )     
|Property (Note 11)                             |                                 |              | (1,850  | )      |      |   | (1,901  | )     
|                                               |                                 |              |         |        |      |  
|                                               | Total consolidated other assets |              | $       | 57,680 |      |   | $       | 58,521 | 
|                                               |                                 |              |         |        |      |  






|         |                                                                   
|-------- | ------------------------------------------------------------------
|NOTE 14. | Accrued Expenses, Other Liabilities, and Deferred Income
    Taxes



| |                                
| | -------------------------------
| | Automotive and Other Operations



|                                                                 |                                                                          |              |        |        |      |   |        |        | 
|---------------------------------------------------------------- | ------------------------------------------------------------------------ | ------------ | ------ | ------ | ---- | - | ------ | ------ | 
|                                                                 |                                                                          | December 31, |       
|                                                                 |                                                                          |              |       
|                                                                 |                                                                          | 2004         |        |        | 2003 |  
|                                                                 |                                                                          |              |        |        |      |  
|Dealer and customer allowances, claims, and discounts            |                                                                          | $            | 11,493 |        |      | $ | 11,145 |       
|Deferred revenue and deposits from rental car companies          |                                                                          |              | 13,239 |        |      |   | 13,679 |       
|Policy, product warranty, and recall campaigns                   |                                                                          |              | 9,133  |        |      |   | 8,674  |       
|Payrolls and employee benefits (excludes postemployment)         |                                                                          |              | 4,642  |        |      |   | 5,081  |       
|Unpaid losses under self-insurance programs                      |                                                                          |              | 1,784  |        |      |   | 2,027  |       
|Taxes, other than income                                         |                                                                          |              | 2,993  |        |      |   | 3,437  |       
|Interest                                                         |                                                                          |              | 922    |        |      |   | 932    |       
|Postemployment benefits (including extended disability benefits) |                                                                          |              | 1,163  |        |      |   | 1,212  |       
|Fiat Settlement (Note 25)                                        |                                                                          |              | 1,364  |        |      |   |       |       
|Other                                                            |                                                                          |              | 8,629  |        |      |   | 8,393  |       
|                                                                 |                                                                          |              |        |        |      |  
|                                                                 | Total accrued expenses and other liabilities                             |              | $      | 55,362 |      |   | $      | 54,580 | 
|Pensions                                                         |                                                                          |              | 84     |        |      |   | 72     |       
|Postretirement benefits                                          |                                                                          |              | 3,890  |        |      |   | 3,210  |       
|Deferred income taxes                                            |                                                                          |              | 3,072  |        |      |   | 3,545  |       
|                                                                 |                                                                          |              |        |        |      |  
|                                                                 | Total accrued expenses, other liabilities, and deferred income
    taxes |              | $      | 62,408 |      |   | $      | 61,407 | 
|                                                                 |                                                                          |              |        |        |      |  
|                                                                 | Current                                                                  |              | $      | 46,202 |      |   | $      | 45,317 | 
|                                                                 | Non-current                                                              |              |        | 16,206 |      |   |        | 16,090 | 
|                                                                 |                                                                          |              |        |        |      |  
|                                                                 | Total accrued expenses, other liabilities, and deferred income
    taxes |              | $      | 62,408 |      |   | $      | 61,407 | 
|                                                                 |                                                                          |              |        |        |      |  

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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|         |                                                                               
|-------- | ------------------------------------------------------------------------------
|NOTE 14. | Accrued Expenses, Other Liabilities, and Deferred Income
    Taxes (concluded)

|                                                        |  |              |        |   |      |   |        |  
|------------------------------------------------------- |  | ------------ | ------ | - | ---- | - | ------ | -
|                                                        |  | December 31, |       
|                                                        |  |              |       
|                                                        |  | 2004         |        |   | 2003 |  
|                                                        |  |              |        |   |      |  
|Policy, product warranty and recall campaigns liability |  |              |        |   |      |   |        |  
|Beginning balance                                       |  | $            | 8,674  |   |      | $ | 8,850  |  
|Payments                                                |  |              | (4,608 | ) |      |   | (4,435 | )
|Increase in liability (warranties issued during period) |  |              | 4,980  |   |      |   | 4,390  |  
|Adjustments to liability (pre-existing warranties)      |  |              | (85    | ) |      |   | (367   | )
|Effect of foreign currency translation                  |  |              | 172    |   |      |   | 236    |  
|                                                        |  |              |        |   |      |  
|Ending balance                                          |  | $            | 9,133  |   |      | $ | 8,674  |  
|                                                        |  |              |        |   |      |  



| |                                   
| | ----------------------------------
| | Financing and Insurance Operations



|                                                                                       |                                                            |              |       |        |      |   |       |        | 
|-------------------------------------------------------------------------------------- | ---------------------------------------------------------- | ------------ | ----- | ------ | ---- | - | ----- | ------ | 
|                                                                                       |                                                            | December 31, |      
|                                                                                       |                                                            |              |      
|                                                                                       |                                                            | 2004         |       |        | 2003 |  
|                                                                                       |                                                            |              |       |        |      |  
|Unpaid insurance losses, loss adjustment expenses, and unearned
    insurance premiums |                                                            | $            | 7,232 |        |      | $ | 6,568 |       
|Interest                                                                               |                                                            |              | 3,413 |        |      |   | 3,135 |       
|Deposits                                                                               |                                                            |              | 7,477 |        |      |   | 5,074 |       
|Interest rate derivatives                                                              |                                                            |              | 934   |        |      |   | 1,121 |       
|Other                                                                                  |                                                            |              | 3,922 |        |      |   | 4,048 |       
|                                                                                       |                                                            |              |       |        |      |  
|                                                                                       | Total other liabilities                                    |              | $     | 22,978 |      |   | $     | 19,946 | 
|Postretirement benefits                                                                |                                                            |              | 815   |        |      |   | 797   |       
|Deferred income taxes                                                                  |                                                            |              | 4,006 |        |      |   | 3,963 |       
|                                                                                       |                                                            |              |       |        |      |  
|                                                                                       | Total other liabilities and deferred income taxes          |              | $     | 27,799 |      |   | $     | 24,706 | 
|                                                                                       |                                                            |              |       |        |      |  
|                                                                                       | Total consolidated accrued expenses and other liabilities  |              | $     | 78,340 |      |   | $     | 74,526 | 
|                                                                                       |                                                            |              |       |        |      |  
|                                                                                       | Total consolidated deferred income tax liability (Note 10) |              | $     | 7,078  |      |   | $     | 7,508  | 
|                                                                                       |                                                            |              |       |        |      |  

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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)









|         |                                 
|-------- | --------------------------------
|NOTE 15. | Long-Term Debt and Loans Payable



| |                                
| | -------------------------------
| | Automotive and Other Operations



|                                 |                            |                                      |                      |                                        |              |   |  |      |     |   |      |        |       |        |        |        |       |        |        | 
|-------------------------------- | -------------------------- | ------------------------------------ | -------------------- | -------------------------------------- | ------------ | - |  | ---- | --- | - | ---- | ------ | ----- | ------ | ------ | ------ | ----- | ------ | ------ | 
|                                 |                            | Weighted-                            |                      |                                        |              |   | 
|                                 |                            | Average                              |                      |                                        |             
|                                 |                            | Interest Rate                        |                      |                                        | December 31, |  
|                                 |                            |                                      |                      |                                        |              |  
|                                 |                            | 2004                                 |                      |                                        | 2003         |   |  | 2004 |     |   | 2003 |       
|                                 |                            |                                      |                      |                                        |              |   |  |      |     |   |      |       
|Long-term debt and loans payable |                            |                                      |                      |                                        |              |   |  |      |     |   |      |        |       |        |        |       
|                                 | Payable within one year    |                                      |                      |                                        |              |   |  |      |     |   |      |        |       |        |        |        |      
|                                 |                            | Current portion of long-term debt(1) |                      |                                        | 5.7          | % |  |      | 1.4 | % |      | $      | 584   |        |        | $      | 1,090 |       
|                                 |                            | All other                            |                      |                                        | 3.0          | % |  |      | 3.3 | % |      |        | 1,478 |        |        |        | 1,723 |       
|                                 |                            |                                      |                      |                                        |              |   |  |      |     |   |      |       
|                                 |                            |                                      | Total loans payable  |                                        |              |   |  |      |     |   |      |        |       | 2,062  |        |        |       | 2,813  |       
|                                 | Payable beyond one year(1) |                                      |                      | 6.8                                    | %            |   |  | 6.8  | %   |   |      | 30,425 |       |        |        | 29,632 |      
|                                 | Unamortized discount       |                                      |                      |                                        |              |   |  |      |     |   |      | (103   | )     |        |        | (108   | )    
|                                 | Mark-to-market adjustment  |                                      |                      |                                        |              |   |  |      |     |   |      | 138    |       |        |        | 69     |      
|                                 |                            |                                      |                      |                                        |              |   |  |      |     |   |      |       
|                                 |                            |                                      | Total long-term debt |                                        |              |   |  |      |     |   |      |        |       | 30,460 |        |        |       | 29,593 |       
|                                 |                            |                                      |                      |                                        |              |   |  |      |     |   |      |       
|                                 |                            |                                      |                      | Total long-term debt and loans payable |              |   |  |      |     |   |      |        |       | $      | 32,522 |        |       | $      | 32,406 | 
|                                 |                            |                                      |                      |                                        |              |   |  |      |     |   |      |       






|    |                                                                                             
|--- | --------------------------------------------------------------------------------------------
|(1) | The weighted-average interest rates include the impact of
    interest rate swap agreements.













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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|         |                                             
|-------- | --------------------------------------------
|NOTE 15. | Long-Term Debt and Loans Payable (concluded)



| |                                   
| | ----------------------------------
| | Financing and Insurance Operations



|                                           |                                      |                      |                              |     |              |  |     |      |   |   |         |        |         |         |         |        |         |         | 
|------------------------------------------ | ------------------------------------ | -------------------- | ---------------------------- | --- | ------------ |  | --- | ---- | - | - | ------- | ------ | ------- | ------- | ------- | ------ | ------- | ------- | 
|                                           |                                      | Weighted-            |                              |     |              |  |    
|                                           |                                      | Average              |                              |     |             
|                                           |                                      | Interest Rate        |                              |     | December 31, | 
|                                           |                                      |                      |                              |     |              | 
|                                           |                                      | 2004                 |                              |     | 2003         |  |     | 2004 |   |   | 2003    |       
|                                           |                                      |                      |                              |     |              |  |     |      |   |   |         |       
|Payable within one year                    |                                      |                      |                              |     |              |  |     |      |   |   |         |        |         |         |         |       
|                                           | Current portion of long-term debt(1) |                      |                              | 3.9 | %            |  |     | 3.1  | % |   | $       | 37,300 |         |         | $       | 34,284 |        
|                                           | Commercial paper(1)                  |                      |                              | 2.5 | %            |  |     | 2.1  | % |   |         | 8,416  |         |         |         | 13,182 |        
|                                           | All other                            |                      |                              | 2.8 | %            |  |     | 2.6  | % |   |         | 45,327 |         |         |         | 30,344 |        
|                                           |                                      |                      |                              |     |              |  |     |      |   |   |         |       
|                                           |                                      | Total loans payable  |                              |     |              |  |     |      |   |   |         |        | 91,043  |         |         |        | 77,810  |        
|Payable beyond one year(1)                 |                                      |                      | 4.9                          | %   |              |  | 5.0 | %    |   |   | 176,090 |        |         |         | 160,108 |       
|Unamortized discount                       |                                      |                      |                              |     |              |  |     |      |   |   | (650    | )      |         |         | (679    | )     
|Mark to market adjustment                  |                                      |                      |                              |     |              |  |     |      |   |   | 1,274   |        |         |         | 2,111   |       
|                                           |                                      |                      |                              |     |              |  |     |      |   |   |         |       
|                                           |                                      | Total long-term debt |                              |     |              |  |     |      |   |   |         |        | 176,714 |         |         |        | 161,540 |        
|                                           |                                      |                      |                              |     |              |  |     |      |   |   |         |       
|                                           |                                      |                      | Total debt and loans payable |     |              |  |     |      |   |   |         |        | $       | 267,757 |         |        | $       | 239,350 | 
|                                           |                                      |                      |                              |     |              |  |     |      |   |   |         |       
|Total consolidated notes and loans payable |                                      |                      |                              |     |              |  |     |      |   | $ | 300,279 |        |         | $       | 271,756 |       
|                                           |                                      |                      |                              |     |              |  |     |      |   |   |         |       






|    |                                                                                             
|--- | --------------------------------------------------------------------------------------------
|(1) | The weighted-average interest rates include the impact of
    interest rate swap agreements.









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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)









|         |                                           
|-------- | ------------------------------------------
|NOTE 16. | Pensions and Other Postretirement Benefits

non-U.S. non-U.S.


non-U.S.


|                         |  |      |     |  |      |   |        |      |  |   |       | 
|------------------------ |  | ---- | --- |  | ---- | - | ------ | ---- |  | - | ----- | 
|                         |  | 2004 |     |  | 2003 |   |        | 2002 | 
|                         |  |      |     |  |      |   |        |      | 
|U.S. hourly and salaried |  | $    |    |  |      | $ | 18,504 |      |  | $ | 4,800 | 
|Other U.S.               |  |      | 117 |  |      |   | 117    |      |  |   | 98    | 
|Primary non-U.S.(1)      |  |      | 763 |  |      |   | 374    |      |  |   | 210   | 






|    |                                                                                                            
|--- | -----------------------------------------------------------------------------------------------------------
|(1) | GMs primary
    non-U.S.pension
    plans include its GM Canada Limited, Adam Opel and Vauxhall
    plans.

non-U.S.


non-U.S.


non-U.S.


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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|         |                                                       
|-------- | ------------------------------------------------------
|NOTE 16. | Pensions and Other Postretirement Benefits (continued)

|                                                                  |                                          |                                        |        |        |                  |   |        |                |        |   |        |        |        |      |        |        |        |   |         |         |         |   |         |         |         |  
|----------------------------------------------------------------- | ---------------------------------------- | -------------------------------------- | ------ | ------ | ---------------- | - | ------ | -------------- | ------ | - | ------ | ------ | ------ | ---- | ------ | ------ | ------ | - | ------- | ------- | ------- | - | ------- | ------- | ------- | -
|                                                                  |                                          | U.S. Plans                             |        |        | Non-U.S. Plans   |   |        |               
|                                                                  |                                          | Pension Benefits                       |        |        | Pension Benefits |   |        | Other Benefits |       
|                                                                  |                                          |                                        |        |        |                  |   |        |                |       
|                                                                  |                                          | 2004                                   |        |        | 2003             |   |        | 2004           |        |   | 2003   |        |        | 2004 |        |        | 2003   |  
|                                                                  |                                          |                                        |        |        |                  |   |        |                |        |   |        |        |        |      |        |        |        |  
|                                                                  |                                          | (Dollars in millions)                  |       
|Change in benefit obligations                                     |                                          |                                        |        |        |                  |   |        |                |        |   |        |        |        |      |        |        |        |   |         |         |         |   |         |        
|Benefit obligation at beginning of year                           |                                          | $                                      | 87,285 |        |                  | $ | 79,617 |                |        | $ | 15,088 |        |        | $    | 12,129 |        |        | $ | 67,542  |         |         | $ | 57,195  |        
|Service cost                                                      |                                          |                                        | 1,097  |        |                  |   | 919    |                |        |   | 247    |        |        |      | 228    |        |        |   | 605     |         |         |   | 537     |        
|Interest cost                                                     |                                          |                                        | 5,050  |        |                  |   | 5,162  |                |        |   | 892    |        |        |      | 803    |        |        |   | 3,927   |         |         |   | 3,798   |        
|Plan participants contributions                                  |                                          |                                        | 22     |        |                  |   | 22     |                |        |   | 26     |        |        |      | 23     |        |        |   | 87      |         |         |   | 84      |        
|Amendments                                                        |                                          |                                        | 54     |        |                  |   | 2,244  |                |        |   | 163    |        |        |      |       |        |        |   | 10      |         |         |   |        |        
|Actuarial losses                                                  |                                          |                                        | 3,683  |        |                  |   | 5,684  |                |        |   | 1,040  |        |        |      | 222    |        |        |   | 8,815   |         |         |   | 9,026   |        
|Benefits paid                                                     |                                          |                                        | (6,605 | )      |                  |   | (6,501 | )              |        |   | (806   | )      |        |      | (732   | )      |        |   | (3,804  | )       |         |   | (3,621  | )      
|Exchange rate movements                                           |                                          |                                        |       |        |                  |   |       |                |        |   | 1,201  |        |        |      | 2,398  |        |        |   |        |         |         |   |        |        
|Curtailments, settlements, and other                              |                                          |                                        | 174    |        |                  |   | 138    |                |        |   | 205    |        |        |      | 17     |        |        |   | 292     |         |         |   | 523     |        
|                                                                  |                                          |                                        |        |        |                  |   |        |                |        |   |        |        |        |      |        |        |        |  
|Benefit obligation at end of year                                 |                                          |                                        | 90,760 |        |                  |   | 87,285 |                |        |   | 18,056 |        |        |      | 15,088 |        |        |   | 77,474  |         |         |   | 67,542  |        
|                                                                  |                                          |                                        |        |        |                  |   |        |                |        |   |        |        |        |      |        |        |        |  
|Change in plan assets                                             |                                          |                                        |        |        |                  |   |        |                |        |   |        |        |        |      |        |        |        |   |         |         |         |   |         |        
|Fair value of plan assets at beginning of year                    |                                          |                                        | 86,169 |        |                  |   | 60,498 |                |        |   | 7,560  |        |        |      | 5,943  |        |        |   | 9,998   |         |         |   | 5,794   |        
|Actual return on plan assets                                      |                                          |                                        | 11,046 |        |                  |   | 13,452 |                |        |   | 814    |        |        |      | 703    |        |        |   | 981     |         |         |   | 865     |        
|Employer contributions                                            |                                          |                                        | 117    |        |                  |   | 18,621 |                |        |   | 802    |        |        |      | 442    |        |        |   | 5,037   |         |         |   | 3,339   |        
|Plan participants contributions                                  |                                          |                                        | 22     |        |                  |   | 22     |                |        |   | 26     |        |        |      | 23     |        |        |   |        |         |         |   |        |        
|Benefits paid                                                     |                                          |                                        | (6,605 | )      |                  |   | (6,501 | )              |        |   | (806   | )      |        |      | (732   | )      |        |   |        |         |         |   |        |        
|Exchange rate movements                                           |                                          |                                        |       |        |                  |   |       |                |        |   | 627    |        |        |      | 1,181  |        |        |   |        |         |         |   |        |        
|Curtailments, settlements, and other                              |                                          |                                        | 137    |        |                  |   | 77     |                |        |   |       |        |        |      |       |        |        |   |        |         |         |   |        |        
|                                                                  |                                          |                                        |        |        |                  |   |        |                |        |   |        |        |        |      |        |        |        |  
|                                                                  | Fair value of plan assets at end of year |                                        |        | 90,886 |                  |   |        | 86,169         |        |   |        | 9,023  |        |      |        | 7,560  |        |   |         | 16,016  |         |   |         | 9,998   |        
|                                                                  |                                          |                                        |        |        |                  |   |        |                |        |   |        |        |        |      |        |        |        |  
|Funded status(1)                                                  |                                          |                                        | 126    |        |                  |   | (1,116 | )              |        |   | (9,033 | )      |        |      | (7,528 | )      |        |   | (61,458 | )       |         |   | (57,544 | )      
|Unrecognized actuarial loss                                       |                                          |                                        | 31,604 |        |                  |   | 32,997 |                |        |   | 5,411  |        |        |      | 4,401  |        |        |   | 28,671  |         |         |   | 20,998  |        
|Unrecognized prior service cost                                   |                                          |                                        | 5,862  |        |                  |   | 7,087  |                |        |   | 808    |        |        |      | 694    |        |        |   | (394    | )       |         |   | (569    | )      
|Unrecognized transition obligation                                |                                          |                                        |       |        |                  |   |       |                |        |   | 39     |        |        |      | 43     |        |        |   |        |         |         |   |        |        
|Employer contributions in fourth quarter                          |                                          |                                        |       |        |                  |   |       |                |        |   |       |        |        |      |       |        |        |   | 4,000   |         |         |   |        |        
|Benefits paid in fourth quarter                                   |                                          |                                        |       |        |                  |   |       |                |        |   |       |        |        |      |       |        |        |   | 999     |         |         |   | 742     |        
|                                                                  |                                          |                                        |        |        |                  |   |        |                |        |   |        |        |        |      |        |        |        |  
|                                                                  |                                          | Net amount recognized                  |        | $      | 37,592           |   |        | $              | 38,968 |   |        | $      | (2,775 | )    |        | $      | (2,390 | ) |         | $       | (28,182 | ) |         | $       | (36,373 | )
|                                                                  |                                          |                                        |        |        |                  |   |        |                |        |   |        |        |        |      |        |        |        |  
|Amounts recognized in the consolidated balance sheets consist of: |                                          |                                        |        |        |                  |   |        |                |        |   |        |        |        |      |        |        |        |   |         |         |         |   |         |        
|                                                                  |                                          | Prepaid benefit cost                   |        | $      | 38,570           |   |        | $              | 39,904 |   |        | $      | 349    |      |        | $      | 344    |   |         | $       |        |   |         | $       |        |  
|                                                                  |                                          | Accrued benefit liability              |        |        | (1,152           | ) |        |                | (1,139 | ) |        |        | (8,303 | )    |        |        | (6,885 | ) |         |         | (28,182 | ) |         |         | (36,373 | )
|                                                                  |                                          | Intangible asset                       |        |        |                 |   |        |                | 1      |   |        |        | 765    |      |        |        | 639    |   |         |         |        |   |         |         |        |  
|                                                                  |                                          | Accumulated other comprehensive income |        |        | 174              |   |        |                | 202    |   |        |        | 4,414  |      |        |        | 3,512  |   |         |         |        |   |         |         |        |  
|                                                                  |                                          |                                        |        |        |                  |   |        |                |        |   |        |        |        |      |        |        |        |  
|                                                                  | Net amount recognized                    |                                        | $      | 37,592 |                  |   | $      | 38,968         |        |   | $      | (2,775 | )      |      | $      | (2,390 | )      |   | $       | (28,182 | )       |   | $       | (36,373 | )      
|                                                                  |                                          |                                        |        |        |                  |   |        |                |        |   |        |        |        |      |        |        |        |  






|    |                                                                                                                                                                                 
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Includes overfunded status of the combined U.S. hourly and
    salaried pension plans of $1.6 billion as of
    December 31, 2004, and $0.3 billion as of
    December 31, 2003.

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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|         |                                                       
|-------- | ------------------------------------------------------
|NOTE 16. | Pensions and Other Postretirement Benefits (continued)



|                                        |                           |            |        |        |                |   |        |        |  |   |        |        |  |   |        |        | 
|--------------------------------------- | ------------------------- | ---------- | ------ | ------ | -------------- | - | ------ | ------ |  | - | ------ | ------ |  | - | ------ | ------ | 
|                                        |                           | U.S. Plans |        |        | Non-U.S. Plans |  
|                                        |                           |            |        |        |                |  
|                                        |                           | 2004       |        |        | 2003           |   |        | 2004   |  |   | 2003   |       
|                                        |                           |            |        |        |                |   |        |        |  |   |        |       
|Accumulated Benefit Obligation          |                           | $          | 88,053 |        |                | $ | 84,821 |        |  | $ | 17,097 |        |  | $ | 14,228 |       
|Plans with ABO in excess of plan assets |                           |            |        |        |                |   |        |        |  |   |        |        |  |   |        |       
|                                        | ABO                       |            | $      | 1,224  |                |   | $      | 1,310  |  |   | $      | 16,631 |  |   | $      | 13,838 | 
|                                        | Fair value of plan assets |            |        | 85     |                |   |        | 187    |  |   |        | 8,388  |  |   |        | 7,003  | 
|Plans with PBO in excess of plan assets |                           |            |        |        |                |   |        |        |  |   |        |        |  |   |        |       
|                                        | PBO                       |            | $      | 31,176 |                |   | $      | 30,087 |  |   | $      | 17,907 |  |   | $      | 14,965 | 
|                                        | Fair value of plan assets |            |        | 29,548 |                |   |        | 27,778 |  |   |        | 8,708  |  |   |        | 7,273  | 



|                                                                                              |  |                             |        |                        |          |   |        |                |  |   |        |   |  |      |      |   |      |   |      |      |  |   |      |   |  |      |        |   |  |   |       |   |  |   |       |  
|--------------------------------------------------------------------------------------------- |  | --------------------------- | ------ | ---------------------- | -------- | - | ------ | -------------- |  | - | ------ | - |  | ---- | ---- | - | ---- | - | ---- | ---- |  | - | ---- | - |  | ---- | ------ | - |  | - | ----- | - |  | - | ----- | -
|                                                                                              |  |                             |        | Non-U.S. Plans Pension |          |   |       
|                                                                                              |  | U.S. Plans Pension Benefits |        |                        | Benefits |   |        | Other Benefits | 
|                                                                                              |  |                             |        |                        |          |   |        |                | 
|                                                                                              |  | 2004                        |        |                        | 2003     |   |        | 2002           |  |   | 2004   |   |  | 2003 |      |   | 2002 |   |      | 2004 |  |   | 2003 |   |  | 2002 |       
|                                                                                              |  |                             |        |                        |          |   |        |                |  |   |        |   |  |      |      |   |      |   |      |      |  |   |      |   |  |      |       
|Components of expense                                                                         |  |                             |        |                        |          |   |        |                |  |   |        |   |  |      |      |   |      |   |      |      |  |   |      |   |  |      |        |   |  |   |       |   |  |   |       |  
|Service cost                                                                                  |  | $                           | 1,097  |                        |          | $ | 919    |                |  | $ | 864    |   |  | $    | 247  |   |      | $ | 228  |      |  | $ | 194  |   |  | $    | 637    |   |  | $ | 537   |   |  | $ | 505   |  
|Interest cost                                                                                 |  |                             | 5,050  |                        |          |   | 5,162  |                |  |   | 5,273  |   |  |      | 892  |   |      |   | 803  |      |  |   | 700  |   |  |      | 4,119  |   |  |   | 3,798 |   |  | $ | 3,686 |  
|Expected return on plan assets                                                                |  |                             | (7,823 | )                      |          |   | (6,374 | )              |  |   | (7,096 | ) |  |      | (669 | ) |      |   | (573 | )    |  |   | (580 | ) |  |      | (1,095 | ) |  |   | (444  | ) |  |   | (390  | )
|Amortization of prior service cost                                                            |  |                             | 1,279  |                        |          |   | 1,148  |                |  |   | 1,253  |   |  |      | 93   |   |      |   | 101  |      |  |   | 93   |   |  |      | (79    | ) |  |   | (12   | ) |  |   | (14   | )
|Amortization of transition obligation/(asset)                                                 |  |                             |       |                        |          |   |       |                |  |   |       |   |  |      | 7    |   |      |   | 11   |      |  |   | 25   |   |  |      |       |   |  |   |      |   |  |   |      |  
|Recognized net actuarial loss                                                                 |  |                             | 1,857  |                        |          |   | 1,744  |                |  |   | 730    |   |  |      | 188  |   |      |   | 167  |      |  |   | 62   |   |  |      | 1,579  |   |  |   | 768   |   |  |   | 351   |  
|Medicare Part D                                                                               |  |                             |       |                        |          |   |       |                |  |   |       |   |  |      |     |   |      |   |     |      |  |   |     |   |  |      | (603   | ) |  |   |      |   |  |   |      |  
|Curtailments, settlements, and other                                                          |  |                             | 34     |                        |          |   | 27     |                |  |   | 211    |   |  |      | 204  |   |      |   | 49   |      |  |   | 51   |   |  |      |       |   |  |   | 3     |   |  |   |      |  
|                                                                                              |  |                             |        |                        |          |   |        |                |  |   |        |   |  |      |      |   |      |   |      |      |  |   |      |   |  |      |       
|Net expense                                                                                   |  | $                           | 1,494  |                        |          | $ | 2,626  |                |  | $ | 1,235  |   |  | $    | 962  |   |      | $ | 786  |      |  | $ | 545  |   |  | $    | 4,558  |   |  | $ | 4,650 |   |  | $ | 4,138 |  
|                                                                                              |  |                             |        |                        |          |   |        |                |  |   |        |   |  |      |      |   |      |   |      |      |  |   |      |   |  |      |       
|Weighted-average assumptions used to determine benefit
    obligations at December 31(1)      |  |                             |        |                        |          |   |        |                |  |   |        |   |  |      |      |   |      |   |      |      |  |   |      |   |  |      |        |   |  |   |       |   |  |   |       |  
|Discount rate                                                                                 |  |                             | 5.60   | %                      |          |   | 6.00   | %              |  |   | 6.75   | % |  |      | 5.61 | % |      |   | 6.12 | %    |  |   | 6.23 | % |  |      | 5.75   | % |  |   | 6.25  | % |  |   | 6.75  | %
|Rate of compensation increase                                                                 |  |                             | 5.0    | %                      |          |   | 5.0    | %              |  |   | 5.0    | % |  |      | 3.2  | % |      |   | 3.4  | %    |  |   | 3.4  | % |  |      | 3.9    | % |  |   | 4.1   | % |  |   | 4.3   | %
|Weighted-average assumptions used to determine net expense
    for years ended December 31(2) |  |                             |        |                        |          |   |        |                |  |   |        |   |  |      |      |   |      |   |      |      |  |   |      |   |  |      |        |   |  |   |       |   |  |   |       |  
|Discount rate                                                                                 |  |                             | 6.00   | %                      |          |   | 6.75   | %              |  |   | 7.25   | % |  |      | 6.12 | % |      |   | 6.23 | %    |  |   | 6.81 | % |  |      | 6.25   | % |  |   | 6.75  | % |  |   | 7.25  | %
|Expected return on plan assets                                                                |  |                             | 9.0    | %                      |          |   | 9.0    | %              |  |   | 10.0   | % |  |      | 8.4  | % |      |   | 8.5  | %    |  |   | 8.8  | % |  |      | 8.0    | % |  |   | 7.0   | % |  |   | 7.9   | %
|Rate of compensation increase                                                                 |  |                             | 5.0    | %                      |          |   | 5.0    | %              |  |   | 5.0    | % |  |      | 3.4  | % |      |   | 3.4  | %    |  |   | 3.8  | % |  |      | 4.1    | % |  |   | 4.3   | % |  |   | 4.7   | %






|    |                                   
|--- | ----------------------------------
|(1) | Determined as of end of year      
|   
|(2) | Determined as of beginning of year

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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|         |                                                       
|-------- | ------------------------------------------------------
|NOTE 16. | Pensions and Other Postretirement Benefits (continued)



|                                               |  |      |      |   |      |  |     |  
|---------------------------------------------- |  | ---- | ---- | - | ---- |  | --- | -
|Assumed Health-care Trend Rates at December 31 |  | 2004 |      |   | 2003 | 
|                                               |  |      |      |   |      | 
|Initial Health-care Cost Trend Rate            |  |      | 10.5 | % |      |  | 8.5 | %
|Ultimate Health-care Cost Trend Rate           |  |      | 5.0  | % |      |  | 5.0 | %
|Number of Years to Ultimate Trend Rate         |  |      | 6    |   |      |  | 6   |  



non-U.S.








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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|         |                                                       
|-------- | ------------------------------------------------------
|NOTE 16. | Pensions and Other Postretirement Benefits (concluded)

non-U.S.


|                  |       |                      |    |     |                        |  |    |                      |   |  |      |     |   |      |    |     |      |  |    |     |   |  |    |     |  
|----------------- | ----- | -------------------- | -- | --- | ---------------------- |  | -- | -------------------- | - |  | ---- | --- | - | ---- | -- | --- | ---- |  | -- | --- | - |  | -- | --- | -
|                  |       | Plan Assets          |    |     | Plan Assets Primary    |  |    |                     
|                  |       | U.S. Pension Plans   |    |     | Non-U.S. Pension Plans |  |    | Plan Assets OPEB     |  
|                  |       |                      |    |     |                        |  |    |                      |  
|                  |       | Actual Percentage of |    |     | Actual Percentage of   |  |    | Actual Percentage of |  
|                  |       | Plan Assets          |    |     | Plan Assets            |  |    | Plan Assets          |  
|                  |       |                      |    |     |                        |  |    |                      |  
|Asset Category    |       | 2004                 |    |     | 2003                   |  |    | 2004                 |   |  | 2003 |     |   | 2004 |    |     | 2003 | 
|                  |       |                      |    |     |                        |  |    |                      |   |  |      |     |   |      |    |     |      | 
|Equity Securities |       |                      | 47 | %   |                        |  | 49 | %                    |   |  | 61   | %   |   |      | 61 | %   |      |  | 41 | %   |   |  | 38 | %  
|Debt Securities   |       |                      | 35 | %   |                        |  | 31 | %                    |   |  | 31   | %   |   |      | 30 | %   |      |  | 48 | %   |   |  | 58 | %  
|Real Estate       |       |                      | 8  | %   |                        |  | 8  | %                    |   |  | 8    | %   |   |      | 9  | %   |      |  | 2  | %   |   |  | 1  | %  
|Other             |       |                      | 10 | %   |                        |  | 12 | %                    |   |  | 0    | %   |   |      | 0  | %   |      |  | 9  | %   |   |  | 3  | %  
|                  |       |                      |    |     |                        |  |    |                      |   |  |      |     |   |      |    |     |      | 
|                  | Total |                      |    | 100 | %                      |  |    | 100                  | % |  |      | 100 | % |      |    | 100 | %    |  |    | 100 | % |  |    | 100 | %
|                  |       |                      |    |     |                        |  |    |                      |   |  |      |     |   |      |    |     |      | 











|          |  |                  |        |              |                |   |                |          |  |        |          |  |  |   |       | 
|--------- |  | ---------------- | ------ | ------------ | -------------- | - | -------------- | -------- |  | ------ | -------- |  |  | - | ----- | 
|          |  | Pension Benefits |        |              | Other Benefits |  
|          |  |                  |        |              |                |  
|          |  |                  |        | Gross        |                |   | Gross Medicare |         
|          |  |                  |        | Primary Non- |                |   | Benefit        |          |  | Part D |         
|          |  | U.S. Plans       |        |              | U.S. Plans     |   |                | Payments |  |        | Receipts | 
|          |  |                  |        |              |                |   |                |          |  |        |          | 
|2005      |  | $                | 6,721  |              |                | $ | 854            |          |  | $      | 4,177    |  |  | $ |      | 
|2006      |  |                  | 6,745  |              |                |   | 870            |          |  |        | 4,306    |  |  |   | 190   | 
|2007      |  |                  | 6,786  |              |                |   | 902            |          |  |        | 4,501    |  |  |   | 280   | 
|2008      |  |                  | 6,840  |              |                |   | 934            |          |  |        | 4,731    |  |  |   | 306   | 
|2009      |  |                  | 6,874  |              |                |   | 969            |          |  |        | 4,939    |  |  |   | 331   | 
|2010-2014 |  | $                | 34,371 |              |                | $ | 5,414          |          |  | $      | 26,847   |  |  | $ | 1,932 | 

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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)









|         |                                   
|-------- | ----------------------------------
|NOTE 17. | Commitments and Contingent Matters



| |            
| | -----------
| | Commitments



|                        |  |      |     |   |      |   |     |      |  |   |      |          |  |      |     |   |       |   |     |   |  |   |      |  
|----------------------- |  | ---- | --- | - | ---- | - | --- | ---- |  | - | ---- | -------- |  | ---- | --- | - | ----- | - | --- | - |  | - | ---- | -
|                        |  |      |     |   |      |   |     |      |  |   |      | 2010 and | 
|                        |  | 2005 |     |   | 2006 |   |     | 2007 |  |   | 2008 |          |  | 2009 |     |   | After |  
|                        |  |      |     |   |      |   |     |      |  |   |      |          |  |      |     |   |       |  
|Minimum commitments     |  | $    | 132 |   |      | $ | 126 |      |  | $ | 133  |          |  | $    | 411 |   |       | $ | 114 |   |  | $ | 862  |  
|Sublease income         |  |      | (19 | ) |      |   | (19 | )    |  |   | (19  | )        |  |      | (19 | ) |       |   | (19 | ) |  |   | (317 | )
|                        |  |      |     |   |      |   |     |      |  |   |      |          |  |      |     |   |       |  
|Net minimum commitments |  | $    | 113 |   |      | $ | 107 |      |  | $ | 114  |          |  | $    | 392 |   |       | $ | 95  |   |  | $ | 545  |  
|                        |  |      |     |   |      |   |     |      |  |   |      |          |  |      |     |   |       |  



|                        |  |      |      |   |      |   |      |      |  |   |      |          |  |      |       |   |       |   |      |   |  |   |        |  
|----------------------- |  | ---- | ---- | - | ---- | - | ---- | ---- |  | - | ---- | -------- |  | ---- | ----- | - | ----- | - | ---- | - |  | - | ------ | -
|                        |  |      |      |   |      |   |      |      |  |   |      | 2010 and | 
|                        |  | 2005 |      |   | 2006 |   |      | 2007 |  |   | 2008 |          |  | 2009 |       |   | After |  
|                        |  |      |      |   |      |   |      |      |  |   |      |          |  |      |       |   |       |  
|Minimum commitments     |  | $    | 898  |   |      | $ | 946  |      |  | $ | 782  |          |  | $    | 1,290 |   |       | $ | 674  |   |  | $ | 4,249  |  
|Sublease Income         |  |      | (236 | ) |      |   | (237 | )    |  |   | (239 | )        |  |      | (237  | ) |       |   | (230 | ) |  |   | (2,762 | )
|                        |  |      |      |   |      |   |      |      |  |   |      |          |  |      |       |   |       |  
|Net minimum commitments |  | $    | 662  |   |      | $ | 709  |      |  | $ | 543  |          |  | $    | 1,053 |   |       | $ | 444  |   |  | $ | 1,487  |  
|                        |  |      |      |   |      |   |      |      |  |   |      |          |  |      |       |   |       |  















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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|         |                                               
|-------- | ----------------------------------------------
|NOTE 17. | Commitments and Contingent Matters (concluded)







| |                   
| | ------------------
| | Contingent Matters










|         |                     
|-------- | --------------------
|NOTE 18. | Stockholders Equity



|                             |                  |               |     |   |         |   |         |       |   |   |       |      |  
|---------------------------- | ---------------- | ------------- | --- | - | ------- | - | ------- | ----- | - | - | ----- | ---- | -
|                             |                  | Common Stocks |     |   |        
|                             |                  |               |     |   | Total   |  
|                             |                  | $12/3         |     |   |         |   | Capital |      
|                             |                  | Par Value     |     |   | Class H |   |         | Stock |  
|                             |                  |               |     |   |         |   |         |       |  
|Balance at January 1, 2002   |                  | $             | 932 |   |         | $ | 88      |       |   | $ | 1,020 |     
|                             | Shares issued    |               |     | 4 |         |   |         | 8     |   |   |       | 12   |  
|                             |                  |               |     |   |         |   |         |       |  
|Balance at December 31, 2002 |                  |               | 936 |   |         |   | 96      |       |   |   | 1,032 |     
|                             | Shares issued    |               |     | 1 |         |   |         | 15    |   |   |       | 16   |  
|                             | Hughes split-off |               |     |  |         |   |         | (111  | ) |   |       | (111 | )
|                             |                  |               |     |   |         |   |         |       |  
|Balance at December 31, 2003 |                  |               | 937 |   |         |   |        |       |   |   | 937   |     
|                             | Shares issued    |               |     | 5 |         |   |         |      |   |   |       | 5    |  
|                             |                  |               |     |   |         |   |         |       |  
|Balance at December 31, 2004 |                  | $             | 942 |   |         | $ |        |       |   | $ | 942   |     
|                             |                  |               |     |   |         |   |         |       |  



| |                 
| | ----------------
| | GM Class H Stock



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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|         |                                 
|-------- | --------------------------------
|NOTE 18. | Stockholders Equity (concluded)



| |                 
| | ----------------
| | Preference Stock





| |              
| | -------------
| | Common Stocks

2 3




| |                           
| | --------------------------
| | Other Comprehensive Income



|                                         |                                |                          |       |     |          |   |      |        |   |   |         |     |   |          |        |     |        |   |        |         |   |   |          |     |   |        |         |      |   |   |        |      |   |   |         |      |  
|---------------------------------------- | ------------------------------ | ------------------------ | ----- | --- | -------- | - | ---- | ------ | - | - | ------- | --- | - | -------- | ------ | --- | ------ | - | ------ | ------- | - | - | -------- | --- | - | ------ | ------- | ---- | - | - | ------ | ---- | - | - | ------- | ---- | -
|                                         |                                | Years Ended December 31, |      
|                                         |                                |                          |      
|                                         |                                | 2004                     |       |     | 2003     |   |      | 2002   |  
|                                         |                                |                          |       |     |          |   |      |        |  
|                                         |                                | Pre-tax                  |       |     | Tax Exp. |   |      | Net    |   |   | Pre-tax |     |   | Tax Exp. |        |     | Net    |   |        | Pre-tax |   |   | Tax Exp. |     |   | Net    |        
|                                         |                                | Amount                   |       |     | (Credit) |   |      | Amount |   |   | Amount  |     |   | (Credit) |        |     | Amount |   |        | Amount  |   |   | (Credit) |     |   | Amount |        
|                                         |                                |                          |       |     |          |   |      |        |   |   |         |     |   |          |        |     |        |   |        |         |   |   |          |     |   |        |        
|Foreign currency translation adjustments |                                | $                        | 1,237 |     |          | $ | 616  |        |   | $ | 621     |     |   | $        | 1,642  |     |        | $ | 673    |         |   | $ | 969      |     |   | $      | 67      |      |   | $ | (18    | )    |   | $ | 85      |     
|Unrealized (loss) gain on securities:    |                                |                          |       |     |          |   |      |        |   |   |         |     |   |          |        |     |        |   |        |         |   |   |          |     |   |        |         |      |   |   |        |      |   |   |         |     
|                                         | Unrealized holding (loss) gain |                          |       | 299 |          |   |      | 114    |   |   |         | 185 |   |          |        | 465 |        |   |        | 166     |   |   |          | 299 |   |        |         | (501 | ) |   |        | (166 | ) |   |         | (335 | )
|                                         | Reclassification adjustment    |                          |       | (80 | )        |   |      | (28    | ) |   |         | (52 | ) |          |        | (84 | )      |   |        | (31     | ) |   |          | (53 | ) |        |         | 611  |   |   |        | 220  |   |   |         | 391  |  
|                                         |                                |                          |       |     |          |   |      |        |   |   |         |     |   |          |        |     |        |   |        |         |   |   |          |     |   |        |        
|Net unrealized gain                      |                                |                          | 219   |     |          |   | 86   |        |   |   | 133     |     |   |          | 381    |     |        |   | 135    |         |   |   | 246      |     |   |        | 110     |      |   |   | 54     |      |   |   | 56      |     
|Minimum pension liability Adjustment     |                                |                          | (874  | )   |          |   | (303 | )      |   |   | (571    | )   |   |          | 33,378 |     |        |   | 12,623 |         |   |   | 20,755   |     |   |        | (21,746 | )    |   |   | (8,127 | )    |   |   | (13,619 | )   
|Net unrealized gain on Derivatives       |                                |                          | 701   |     |          |   | 163  |        |   |   | 538     |     |   |          | 329    |     |        |   | 73     |         |   |   | 256      |     |   |        | 151     |      |   |   | 49     |      |   |   | 102     |     
|Amounts attributable to Hughes           |                                |                          |      |     |          |   |     |        |   |   |        |     |   |          |       |     |        |   |       |         |   |   |         |     |   |        | (300    | )    |   |   | (139   | )    |   |   | (161    | )   
|                                         |                                |                          |       |     |          |   |      |        |   |   |         |     |   |          |        |     |        |   |        |         |   |   |          |     |   |        |        
|Other comprehensive income (loss)        |                                | $                        | 1,283 |     |          | $ | 562  |        |   | $ | 721     |     |   | $        | 35,730 |     |        | $ | 13,504 |         |   | $ | 22,226   |     |   | $      | (21,718 | )    |   | $ | (8,181 | )    |   | $ | (13,537 | )   
|                                         |                                |                          |       |     |          |   |      |        |   |   |         |     |   |          |        |     |        |   |        |         |   |   |          |     |   |        |        






|         |                                                 
|-------- | ------------------------------------------------
|NOTE 19. | Earnings Per Share Attributable to Common Stocks



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|         |                                                                 
|-------- | ----------------------------------------------------------------
|NOTE 19. | Earnings Per Share Attributable to Common Stocks
    (continued)



|                                                           |                                                                   |                                         |   |       |       |  |   |       |       |   |   |       |       |  
|---------------------------------------------------------- | ----------------------------------------------------------------- | --------------------------------------- | - | ----- | ----- |  | - | ----- | ----- | - | - | ----- | ----- | -
|                                                           |                                                                   | Years Ended December 31,                |  
|                                                           |                                                                   |                                         |  
|                                                           |                                                                   | 2004                                    |   |       | 2003  |  |   | 2002  |      
|                                                           |                                                                   |                                         |   |       |       |  |   |       |      
|Earnings attributable to common stocks
    $12/3 par value |                                                                   |                                         |   |       |       |  |   |       |       |   |   |      
|                                                           |                                                                   | Continuing operations                   |   | $     | 2,804 |  |   | $     | 2,899 |   |   | $     | 1,813 |  
|                                                           |                                                                   | Discontinued operations                 |   |       |      |  |   |       | (48   | ) |   |       | (90   | )
|                                                           |                                                                   | Gain on sale of discontinued operations |   |       |      |  |   |       | 1,249 |   |   |       |      |  
|                                                           |                                                                   |                                         |   |       |       |  |   |       |      
|                                                           | Earnings attributable to
    $12/3 par value                      |                                         | $ | 2,804 |       |  | $ | 4,100 |       |   | $ | 1,723 |      
|                                                           | Earnings from discontinued operations attributable to
    Class H |                                         | $ |      |       |  | $ | (241  | )     |   | $ | (195  | )    
|                                                           |                                                                   |                                         |   |       |       |  |   |       |      
|                                                           | Total earnings attributable to common stocks                      |                                         | $ | 2,804 |       |  | $ | 3,859 |       |   | $ | 1,528 |      
|                                                           |                                                                   |                                         |   |       |       |  |   |       |      

2 3




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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|         |                                                                 
|-------- | ----------------------------------------------------------------
|NOTE 19. | Earnings Per Share Attributable to Common Stocks
    (continued)



|                              |                                                                 |                              |   |           |        |  |  |        |  |  |   |       |  
|----------------------------- | --------------------------------------------------------------- | ---------------------------- | - | --------- | ------ |  |  | ------ |  |  | - | ----- | -
|                              |                                                                 | $12/3 Par Value Common Stock |  
|                              |                                                                 |                              |  
|                              |                                                                 |                              |   | Per Share |       
|                              |                                                                 | Income                       |   |           | Shares |  |  | Amount | 
|                              |                                                                 |                              |   |           |        |  |  |        | 
|Year ended December 31, 2004  |                                                                 |                              |   |           |        |  |  |        |  |  |   |      
|Basic EPS                     |                                                                 |                              |   |           |        |  |  |        |  |  |   |      
|                              | Income from continuing operations attributable to common stocks |                              | $ | 2,804     |        |  |  | 565    |  |  | $ | 4.97  |  
|Effect of Dilutive Securities |                                                                 |                              |   |           |        |  |  |        |  |  |   |      
|                              | Assumed exercise of dilutive stock options                      |                              |   |          |        |  |  | 2      |  |  |   | (0.03 | )
|                              |                                                                 |                              |   |           |        |  |  |        | 
|Diluted EPS                   |                                                                 |                              |   |           |        |  |  |        |  |  |   |      
|                              | Adjusted income attributable to common stocks                   |                              | $ | 2,804     |        |  |  | 567    |  |  | $ | 4.94  |  
|                              |                                                                 |                              |   |           |        |  |  |        | 
|Year ended December 31, 2003  |                                                                 |                              |   |           |        |  |  |        |  |  |   |      
|Basic EPS                     |                                                                 |                              |   |           |        |  |  |        |  |  |   |      
|                              | Income from continuing operations attributable to common stocks |                              | $ | 2,899     |        |  |  | 561    |  |  | $ | 5.17  |  
|Effect of Dilutive Securities |                                                                 |                              |   |           |        |  |  |        |  |  |   |      
|                              | Assumed exercise of dilutive stock options                      |                              |   |          |        |  |  | 8      |  |  |   | (0.08 | )
|                              |                                                                 |                              |   |           |        |  |  |        | 
|Diluted EPS                   |                                                                 |                              |   |           |        |  |  |        |  |  |   |      
|                              | Adjusted income attributable to common stocks                   |                              | $ | 2,899     |        |  |  | 569    |  |  | $ | 5.09  |  
|                              |                                                                 |                              |   |           |        |  |  |        | 
|Year ended December 31, 2002  |                                                                 |                              |   |           |        |  |  |        |  |  |   |      
|Basic EPS                     |                                                                 |                              |   |           |        |  |  |        |  |  |   |      
|                              | Income from continuing operations attributable to common stocks |                              | $ | 1,813     |        |  |  | 560    |  |  | $ | 3.24  |  
|Effect of Dilutive Securities |                                                                 |                              |   |           |        |  |  |        |  |  |   |      
|                              | Assumed exercise of dilutive stock options                      |                              |   |          |        |  |  | 2      |  |  |   | (0.01 | )
|                              |                                                                 |                              |   |           |        |  |  |        | 
|Diluted EPS                   |                                                                 |                              |   |           |        |  |  |        |  |  |   |      
|                              | Adjusted income attributable to common stocks                   |                              | $ | 1,813     |        |  |  | 562    |  |  | $ | 3.23  |  
|                              |                                                                 |                              |   |           |        |  |  |        | 

2 3


in-the


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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|         |                                                                 
|-------- | ----------------------------------------------------------------
|NOTE 19. | Earnings Per Share Attributable to Common Stocks
    (concluded)





| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 1) If the closing sale price of GMs
    $12/3 par value common stock exceeds 120% of the conversion
    price (of $70.20 for Series A, of $64.90 for Series B
    and of $47.62 for Series C respectively) for at least 20
    trading days in the 30 consecutive trading days ending on the
    last trading day of the preceding fiscal quarter; or                                                                                                                                                          
|
| | 2) During the five business day period after any nine
    consecutive trading day period in which the trading price of the
    debentures for each day of such period was less than 95% of the
    product of the closing sale price of GMs
    $12/3 par value common stock multiplied by the number of
    shares issuable upon conversion of $25.00 principal amount of
    the debentures; or                                                                                                              
|
| | 3) If the debentures have been called for redemption
    (Series A on March 6, 2007, Series B on
    March 6, 2009 and Series C on July 20,
    2010); or                                                                                                                                                                                                                                                                                                                                                       
|
| | 4) Upon the occurrence of specified corporate
    events; or                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|
| | 5) If the investor requires GM to repurchase the debentures
    (Series A: on March 6 of 2007, 2012, 2017, 2022 and 2027,
    or, if any of those days is not a business day, on the next
    succeeding business day; Series B: on March 6 of 2014,
    2019, 2024 and 2029, or, if any of those days is not a business
    day, on the next succeeding business day; Series C: on July
    15 of 2018, 2023 and 2028 or, if any of those days is not a
    business day, on the next succeeding business day).

in-the







|         |                                                     
|-------- | ----------------------------------------------------
|NOTE 20. | Derivative Financial Instruments and Risk Management





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



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|         |                                                                     
|-------- | --------------------------------------------------------------------
|NOTE 20. | Derivative Financial Instruments and Risk Management
    (concluded)





| |                  
| | -----------------
| | Fair Value Hedges





| |                      
| | ---------------------
| | Net Investment Hedges





| |                                    
| | -----------------------------------
| | Undesignated Derivative Instruments








|         |                                    
|-------- | -----------------------------------
|NOTE 21. | Fair Value of Financial Instruments



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|         |                                                
|-------- | -----------------------------------------------
|NOTE 21. | Fair Value of Financial Instruments (concluded)



|                                   |                              |              |   |         |            |  |   |            |  |  |            |         |  |  |   |         | 
|---------------------------------- | ---------------------------- | ------------ | - | ------- | ---------- |  | - | ---------- |  |  | ---------- | ------- |  |  | - | ------- | 
|                                   |                              | December 31, |  
|                                   |                              |              |  
|                                   |                              | 2004         |   |         | 2003       | 
|                                   |                              |              |   |         |            | 
|                                   |                              | Book Value   |   |         | Fair Value |  |   | Book Value |  |  | Fair Value |        
|                                   |                              |              |   |         |            |  |   |            |  |  |            |        
|Automotive and Other Operations    |                              |              |   |         |            |  |   |            |  |  |            |         |  |  |   |        
|Assets                             |                              |              |   |         |            |  |   |            |  |  |            |         |  |  |   |        
|                                   | Other assets(1)              |              | $ | 841     |            |  | $ | 520        |  |  | $          | 771     |  |  | $ | 500     | 
|                                   | Derivative assets            |              | $ | 2,089   |            |  | $ | 2,089      |  |  | $          | 1,234   |  |  | $ | 1,234   | 
|Liabilities                        |                              |              |   |         |            |  |   |            |  |  |            |         |  |  |   |        
|                                   | Long-term debt(2)            |              | $ | 30,460  |            |  | $ | 31,276     |  |  | $          | 29,593  |  |  | $ | 31,859  | 
|                                   | Other liabilities(1)         |              | $ | 537     |            |  | $ | 591        |  |  | $          | 528     |  |  | $ | 571     | 
|                                   | Derivative liabilities       |              | $ | 724     |            |  | $ | 724        |  |  | $          | 356     |  |  | $ | 356     | 
|Financing and Insurance Operations |                              |              |   |         |            |  |   |            |  |  |            |         |  |  |   |        
|Assets                             |                              |              |   |         |            |  |   |            |  |  |            |         |  |  |   |        
|                                   | Finance receivables  net(3) |              | $ | 199,600 |            |  | $ | 199,827    |  |  | $          | 174,769 |  |  | $ | 177,216 | 
|                                   | Derivative assets            |              | $ | 9,489   |            |  | $ | 9,489      |  |  | $          | 10,026  |  |  | $ | 10,026  | 
|Liabilities                        |                              |              |   |         |            |  |   |            |  |  |            |         |  |  |   |        
|                                   | Debt(2)                      |              | $ | 267,757 |            |  | $ | 268,813    |  |  | $          | 239,350 |  |  | $ | 244,641 | 
|                                   | Derivative liabilities       |              | $ | 953     |            |  | $ | 953        |  |  | $          | 1,196   |  |  | $ | 1,196   | 
|                                   | Other liabilities            |              | $ | 4,230   |            |  | $ | 4,106      |  |  | $          | 1,754   |  |  | $ | 1,660   | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Other assets include various financial instruments (e.g.,
    long-term receivables and certain investments) that have fair
    values based on discounted cash flows, market quotations, and
    other appropriate valuation techniques. The fair values of
    retained subordinated interests in trusts and excess servicing
    assets (net of deferred costs) were derived by discounting
    expected cash flows using current market rates. Estimated values
    of Industrial Development Bonds, included in other liabilities,
    were based on quoted market prices for the same or similar
    issues.
|   
|(2) | Long-term debt has an estimated fair value based on quoted
    market prices for the same or similar issues or based on the
    current rates offered to GM for debt of similar remaining
    maturities.                                                                                                                                                                                                                                                                                                                                                                                                         
|   
|(3) | The fair value was estimated by discounting the future cash
    flows using applicable spreads to approximate current rates
    applicable to each category of finance receivables.                                                                                                                                                                                                                                                                                                                                                                                                                               








|         |                      
|-------- | ---------------------
|NOTE 22. | Stock Incentive Plans



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|         |                                  
|-------- | ---------------------------------
|NOTE 22. | Stock Incentive Plans (continued)

2 3


2 3 2 3


2 3


|                                                               |        |                      |             |            |                      |   |                      |                         |  |  |            |            | 
|-------------------------------------------------------------- | ------ | -------------------- | ----------- | ---------- | -------------------- | - | -------------------- | ----------------------- |  |  | ---------- | ---------- | 
|                                                               |        | Number of Securities |             |            |                      |   | Number of Securities |                        
|                                                               |        | to Be Issued upon    |             |            | Weighted Average     |   |                      | Remaining Available for | 
|                                                               |        | Exercise of          |             |            | Exercise Price of    |   |                      | Future Issuance Under   | 
|                                                               |        | Outstanding Options, |             |            | Outstanding Options, |   |                      | Equity Compensation     | 
|Plan Category                                                  |        | Warrants and Rights  |             |            | Warrants and Rights  |   |                      | Plans(1)                | 
|                                                               |        |                      |             |            |                      |   |                      |                         | 
|Equity compensation plans approved by security holders:        |        |                      |             |            |                      |   |                      |                         |  |  |            |           
|                                                               | GMSIP  |                      |             | 79,455,293 |                      |   | $                    | 54.53                   |  |  |            | 10,873,308 | 
|Equity compensation plans not approved by security holders(2): |        |                      |             |            |                      |   |                      |                         |  |  |            |           
|                                                               | GMSSOP |                      |             | 27,590,626 |                      |   | $                    | 55.17                   |  |  |            | 394,335    | 
|                                                               |        |                      |             |            |                      |   |                      |                         | 
|Total                                                          |        |                      | 107,045,919 |            |                      | $ | 54.69                |                         |  |  | 11,267,643 |           
|                                                               |        |                      |             |            |                      |   |                      |                         | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Excludes securities reflected in the first column, Number
    of securities to be issued upon exercise of outstanding options,
    warrants and rights.                                                                                                                                                                                                                                                                                                                                                                                                    
|   
|(2) | All equity compensation plans except the GMSSOP were approved by
    the stockholders. The GMSSOP was adopted by the Board of
    Directors in 1998 and expires December 31, 2007. The
    purpose of the plans is to recognize the importance and
    contribution of GM employees in the creation of stockholder
    value, to further align compensation with business success and
    to provide employees with the opportunity for long-term capital
    accumulation through the grant of options to acquire shares of
    General Motors common stock.

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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|         |                                  
|-------- | ---------------------------------
|NOTE 22. | Stock Incentive Plans (continued)



|                      |  |      |      |   |      |  |      |      |  |  |      |   |  |     |      |   |      |  |      |   |  |  |      |  
|--------------------- |  | ---- | ---- | - | ---- |  | ---- | ---- |  |  | ---- | - |  | --- | ---- | - | ---- |  | ---- | - |  |  | ---- | -
|                      |  | 2004 |      |   | 2003 |  |      | 2002 | 
|                      |  |      |      |   |      |  |      |      | 
|                      |  | GM   |      |   | GM   |  |      | GM   |  |  | GM   |   |  | GM  |      |   | GM   | 
|                      |  | SIP  |      |   | SSOP |  |      | SIP  |  |  | SSOP |   |  | SIP |      |   | SSOP | 
|                      |  |      |      |   |      |  |      |      |  |  |      |   |  |     |      |   |      | 
|Interest rate         |  |      | 3.1  | % |      |  | 3.1  | %    |  |  | 2.9  | % |  |     | 2.9  | % |      |  | 4.3  | % |  |  | 4.3  | %
|Expected life (years) |  |      | 5.0  |   |      |  | 5.0  |      |  |  | 5.0  |   |  |     | 5.0  |   |      |  | 5.0  |   |  |  | 5.0  |  
|Expected volatility   |  |      | 33.9 | % |      |  | 33.9 | %    |  |  | 35.4 | % |  |     | 35.4 | % |      |  | 34.6 | % |  |  | 34.6 | %
|Dividend yield        |  |      | 3.7  | % |      |  | 3.7  | %    |  |  | 5.0  | % |  |     | 5.0  | % |      |  | 4.0  | % |  |  | 4.0  | %



|                                         |  |                        |            |           |                        |   |       |        |           |  |            |  |  |   |       | 
|---------------------------------------- |  | ---------------------- | ---------- | --------- | ---------------------- | - | ----- | ------ | --------- |  | ---------- |  |  | - | ----- | 
|                                         |  | GMSIP                  |            |           | GMSSOP                 |  
|                                         |  | $12/3 Par Value Common |            |           | $12/3 Par Value Common |  
|                                         |  |                        |            |           |                        |  
|                                         |  |                        |            | Weighted- |                        |   |       |        | Weighted- | 
|                                         |  | Shares                 |            |           | Average                |   |       | Shares |           |  | Average    | 
|                                         |  | Under                  |            |           | Exercise               |   |       | Under  |           |  | Exercise   | 
|                                         |  | Option                 |            |           | Price                  |   |       | Option |           |  | Price      | 
|                                         |  |                        |            |           |                        |   |       |        |           |  |            | 
|Options outstanding at January 1, 2002   |  |                        | 52,942,126 |           |                        | $ | 57.52 |        |           |  | 14,077,981 |  |  | $ | 63.22 | 
|Granted                                  |  |                        | 17,294,937 |           |                        | $ | 50.53 |        |           |  | 5,015,553  |  |  | $ | 50.46 | 
|Exercised                                |  |                        | 2,729,511  |           |                        | $ | 40.46 |        |           |  | 71,663     |  |  | $ | 46.59 | 
|Terminated                               |  |                        | 1,685,392  |           |                        | $ | 55.28 |        |           |  | 64,672     |  |  | $ | 62.39 | 
|                                         |  |                        |            |           |                        |   |       |        |           |  |            | 
|Options outstanding at December 31, 2002 |  |                        | 65,822,160 |           |                        | $ | 56.45 |        |           |  | 18,957,199 |  |  | $ | 59.91 | 
|Granted                                  |  |                        | 11,148,605 |           |                        | $ | 40.06 |        |           |  | 5,666,127  |  |  | $ | 40.05 | 
|Exercised                                |  |                        | 1,489,170  |           |                        | $ | 42.28 |        |           |  |           |  |  |   |      | 
|Terminated                               |  |                        | 996,029    |           |                        | $ | 55.06 |        |           |  | 233,270    |  |  | $ | 56.92 | 
|                                         |  |                        |            |           |                        |   |       |        |           |  |            | 
|Options outstanding at December 31, 2003 |  |                        | 74,485,566 |           |                        | $ | 54.38 |        |           |  | 24,390,056 |  |  | $ | 55.33 | 
|Granted                                  |  |                        | 8,055,460  |           |                        | $ | 53.83 |        |           |  | 3,315,479  |  |  | $ | 53.92 | 
|Exercised                                |  |                        | 1,346,996  |           |                        | $ | 40.77 |        |           |  | 31,320     |  |  | $ | 47.92 | 
|Terminated                               |  |                        | 1,738,737  |           |                        | $ | 55.26 |        |           |  | 83,589     |  |  | $ | 54.02 | 
|                                         |  |                        |            |           |                        |   |       |        |           |  |            | 
|Options outstanding at December 31, 2004 |  |                        | 79,455,293 |           |                        | $ | 54.53 |        |           |  | 27,590,626 |  |  | $ | 55.17 | 
|                                         |  |                        |            |           |                        |   |       |        |           |  |            | 
|Options exercisable at December 31, 2002 |  |                        | 38,094,946 |           |                        | $ | 58.18 |        |           |  | 10,098,994 |  |  | $ | 67.48 | 
|                                         |  |                        |            |           |                        |   |       |        |           |  |            | 
|December 31, 2003                        |  |                        | 48,932,216 |           |                        | $ | 58.56 |        |           |  | 13,825,058 |  |  | $ | 63.29 | 
|                                         |  |                        |            |           |                        |   |       |        |           |  |            | 
|December 31, 2004                        |  |                        | 59,445,049 |           |                        | $ | 56.69 |        |           |  | 18,667,303 |  |  | $ | 59.94 | 
|                                         |  |                        |            |           |                        |   |       |        |           |  |            | 

II-101



---



##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




NOTE 22.     Stock Incentive
Plans (concluded)




|                                  |                  |                |  |                  |                  |  |           |          |     |  |             |           |       |          |  |            |            |  |   |       |       | 
|--------------------------------- | ---------------- | -------------- |  | ---------------- | ---------------- |  | --------- | -------- | --- |  | ----------- | --------- | ----- | -------- |  | ---------- | ---------- |  | - | ----- | ----- | 
|                                  |                  |                |  | Weighted-Average |                  |  | Weighted- |          |     |  |             | Weighted- |      
|                                  |                  |                |  | Remaining        |                  |  | Average   |          |     |  |             | Average   |      
|Range of                          |                  | Options        |  |                  | Contractual Life |  |           | Exercise |     |  | Options     |           |       | Exercise | 
|Exercise Prices                   |                  | Outstanding    |  |                  | (yrs.)           |  |           | Price    |     |  | Exercisable |           |       | Price    | 
|                                  |                  |                |  |                  |                  |  |           |          |     |  |             |           |       |          | 
|GMSIP
    $12/3 Par Value Common  |                  |                |  |                  |                  |  |           |          |     |  |             |           |       |          |  |            |            |  |   |      
|                                  | $21.00 to $39.99 |                |  | 475,195          |                  |  |           | 2.3      |     |  | $           | 34.16     |       |          |  | 403,465    |            |  | $ | 33.61 |      
|                                  |                  | 40.00 to 49.99 |  |                  | 23,567,137       |  |           |          | 5.0 |  |             | $         | 42.75 |          |  |            | 16,514,153 |  |   | $     | 43.89 | 
|                                  |                  | 50.00 to 59.99 |  |                  | 35,364,084       |  |           |          | 7.1 |  |             | $         | 51.96 |          |  |            | 22,478,554 |  |   | $     | 51.62 | 
|                                  |                  | 60.00 to 83.50 |  |                  | 20,048,877       |  |           |          | 4.5 |  |             | $         | 73.40 |          |  |            | 20,048,877 |  |   | $     | 73.40 | 
|                                  |                  |                |  |                  |                  |  |           |          |     |  |             |           |       |          | 
|                                  | $21.00 to $83.50 |                |  | 79,455,293       |                  |  |           | 5.8      |     |  | $           | 54.53     |       |          |  | 59,445,049 |            |  | $ | 56.69 |      
|                                  |                  |                |  |                  |                  |  |           |          |     |  |             |           |       |          | 
|GMSSOP
    $12/3 Par Value Common |                  |                |  |                  |                  |  |           |          |     |  |             |           |       |          |  |            |            |  |   |      
|                                  | $40.05           |                |  | 5,609,069        |                  |  |           | 8.1      |     |  | $           | 40.05     |       |          |  |           |            |  | $ |      |      
|                                  |                  | 46.59          |  |                  | 2,236,818        |  |           |          | 3.0 |  |             | $         | 46.59 |          |  |            | 2,236,818  |  |   | $     | 46.59 | 
|                                  |                  | 50.46          |  |                  | 4,908,553        |  |           |          | 7.0 |  |             | $         | 50.46 |          |  |            | 4,908,553  |  |   | $     | 50.46 | 
|                                  |                  | 52.35          |  |                  | 3,808,686        |  |           |          | 6.0 |  |             | $         | 52.35 |          |  |            | 3,808,686  |  |   | $     | 52.35 | 
|                                  |                  | 53.92          |  |                  | 3,314,254        |  |           |          | 9.1 |  |             | $         | 53.92 |          |  |            |           |  |   | $     |      | 
|                                  |                  | 71.53          |  |                  | 3,728,496        |  |           |          | 4.0 |  |             | $         | 71.53 |          |  |            | 3,728,496  |  |   | $     | 71.53 | 
|                                  |                  | 75.50          |  |                  | 3,984,750        |  |           |          | 5.0 |  |             | $         | 75.50 |          |  |            | 3,984,750  |  |   | $     | 75.50 | 
|                                  |                  |                |  |                  |                  |  |           |          |     |  |             |           |       |          | 
|                                  | $40.05 to $75.50 |                |  | 27,590,626       |                  |  |           | 6.3      |     |  | $           | 55.17     |       |          |  | 18,667,303 |            |  | $ | 59.94 |      
|                                  |                  |                |  |                  |                  |  |           |          |     |  |             |           |       |          | 






|         |             
|-------- | ------------
|NOTE 23. | Other Income



|                                |                                 |                          |   |       |       |  |   |       |       |  |   |       |       | 
|------------------------------- | ------------------------------- | ------------------------ | - | ----- | ----- |  | - | ----- | ----- |  | - | ----- | ----- | 
|                                |                                 | Years Ended December 31, |  
|                                |                                 |                          |  
|                                |                                 | 2004                     |   |       | 2003  |  |   | 2002  |      
|                                |                                 |                          |   |       |       |  |   |       |      
|Automotive and Other Operations |                                 |                          |   |       |       |  |   |       |       |  |   |      
|                                | Interest income                 |                          | $ | 816   |       |  | $ | 1,389 |       |  | $ | 905   |      
|                                | Rental car lease revenue        |                          |   | 2,112 |       |  |   | 1,460 |       |  |   | 1,214 |      
|                                | Claims, commissions, and grants |                          |   | 1,097 |       |  |   | 916   |       |  |   | 846   |      
|                                | Gain on sale of GM Defense      |                          |   |      |       |  |   | 814   |       |  |   |      |      
|                                | Other                           |                          |   | 792   |       |  |   | 400   |       |  |   | 239   |      
|                                |                                 |                          |   |       |       |  |   |       |      
|                                |                                 | Total other income       |   | $     | 4,817 |  |   | $     | 4,979 |  |   | $     | 3,204 | 
|                                |                                 |                          |   |       |       |  |   |       |      

|                                   |                                  |                          |   |       |        |  |   |       |        |  |   |       |       | 
|---------------------------------- | -------------------------------- | ------------------------ | - | ----- | ------ |  | - | ----- | ------ |  | - | ----- | ----- | 
|                                   |                                  | Years Ended December 31, |  
|                                   |                                  |                          |  
|                                   |                                  | 2004                     |   |       | 2003   |  |   | 2002  |       
|                                   |                                  |                          |   |       |        |  |   |       |       
|Financing and Insurance Operations |                                  |                          |   |       |        |  |   |       |        |  |   |      
|                                   | Interest income                  |                          | $ | 807   |        |  | $ | 684   |        |  | $ | 417   |      
|                                   | Insurance premiums               |                          |   | 3,528 |        |  |   | 3,178 |        |  |   | 2,678 |      
|                                   | Mortgage banking revenue         |                          |   | 2,969 |        |  |   | 4,204 |        |  |   | 3,417 |      
|                                   | Automotive securitization income |                          |   | 753   |        |  |   | 760   |        |  |   | 1,028 |      
|                                   | Other                            |                          |   | 3,280 |        |  |   | 2,303 |        |  |   | 2,448 |      
|                                   |                                  |                          |   |       |        |  |   |       |       
|                                   |                                  | Total other income       |   | $     | 11,337 |  |   | $     | 11,129 |  |   | $     | 9,988 | 
|                                   |                                  |                          |   |       |        |  |   |       |       

II-102



---



##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)









|         |                  
|-------- | -----------------
|NOTE 24: | Segment Reporting







II-103



---



##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|         |                              
|-------- | -----------------------------
|NOTE 24. | Segment Reporting (continued)

|                                                |                    |                             |         |         |         |   |        |        |        |   |       |       |       |        |       |       |       |   |         |         |         |       |        |     |     |           |         |         |           |   |         |   |   |   |        |   |   |   |         |   |   | 
|----------------------------------------------- | ------------------ | --------------------------- | ------- | ------- | ------- | - | ------ | ------ | ------ | - | ----- | ----- | ----- | ------ | ----- | ----- | ----- | - | ------- | ------- | ------- | ----- | ------ | --- | --- | --------- | ------- | ------- | --------- | - | ------- | - | - | - | ------ | - | - | - | ------- | - | - | 
|                                                |                    |                             |         |         |         |   |        |        |        |   |       |       |       | Auto & |       |       |       |   | Other   |         |         | Total |       
|                                                |                    | GMNA                        |         |         | GME     |   |        | GMLAAM |        |   | GMAP  |       |       | GMA    |       |       | Other |   |         | Other   |         |       | GMAC   |     |     | Financing |         |         | Financing |  
|                                                |                    |                             |         |         |         |   |        |        |        |   |       |       |       |        |       |       |       |   |         |         |         |       |        |     |     |           |         |         |           |  
|                                                |                    | (Dollars in millions)       |        
|2004                                            |                    |                             |         |         |         |   |        |        |        |   |       |       |       |        |       |       |       |   |         |         |         |       |        |     |     |           |         |         |           |   |         |   |   |   |        |   |   |   |         |  
|Manufactured products sales and revenues:       |                    |                             |         |         |         |   |        |        |        |   |       |       |       |        |       |       |       |   |         |         |         |       |        |     |     |           |         |         |           |   |         |   |   |   |        |   |   |   |         |  
|                                                | External customers |                             | $       | 112,881 |         |   | $      | 29,126 |        |   | $     | 8,045 |       |        | $     | 5,775 |       |   | $       | 155,827 |         |       | $      | 901 |     |           | $       | 156,728 |           |   | $       |  |   |   | $      |  |   |   | $       |  |  
|                                                | Intersegment       |                             |         | (2,602  | )       |   |        | 1,030  |        |   |       | 673   |       |        |       | 903   |       |   |         | 4       |         |       |        | (4  | )   |           |         |        |           |   |         |  |   |   |        |  |   |   |         |  |  
|                                                |                    |                             |         |         |         |   |        |        |        |   |       |       |       |        |       |       |       |   |         |         |         |       |        |     |     |           |         |         |           |  
|                                                |                    | Total manufactured products |         |         | 110,279 |   |        |        | 30,156 |   |       |       | 8,718 |        |       |       | 6,678 |   |         |         | 155,831 |       |        |     | 897 |           |         |         | 156,728   |   |         |   |  |   |        |   |  |   |         |   |  | 
|Financing revenue                               |                    |                             |        |         |         |   |       |        |        |   |      |       |       |        |      |       |       |   |        |         |         |       |       |     |     |           |        |         |           |   | 20,331  |   |   |   | 304    |   |   |   | 20,635  |  
|Other income                                    |                    |                             | 4,266   |         |         |   | 664    |        |        |   | 74    |       |       |        | 300   |       |       |   | 5,304   |         |         |       | (487   | )   |     |           | 4,817   |         |           |   | 10,857  |   |   |   | 480    |   |   |   | 11,337  |  
|                                                |                    |                             |         |         |         |   |        |        |        |   |       |       |       |        |       |       |       |   |         |         |         |       |        |     |     |           |         |         |           |  
|Total net sales and revenues                    |                    | $                           | 114,545 |         |         | $ | 30,820 |        |        | $ | 8,792 |       |       | $      | 6,978 |       |       | $ | 161,135 |         |         | $     | 410    |     |     | $         | 161,545 |         |           | $ | 31,188  |   |   | $ | 784    |   |   | $ | 31,972  |  
|                                                |                    |                             |         |         |         |   |        |        |        |   |       |       |       |        |       |       |       |   |         |         |         |       |        |     |     |           |         |         |           |  
|Depreciation and amortization                   |                    | $                           | 6,381   |         |         | $ | 1,779  |        |        | $ | 195   |       |       | $      | 235   |       |       | $ | 8,590   |         |         | $     | 39     |     |     | $         | 8,629   |         |           | $ | 5,299   |   |   | $ | 224    |   |   | $ | 5,523   |  
|Interest income(a)                              |                    | $                           | 1,026   |         |         | $ | 392    |        |        | $ | 20    |       |       | $      | 13    |       |       | $ | 1,451   |         |         | $     | (635   | )   |     | $         | 816     |         |           | $ | 1,117   |   |   | $ | (310   | ) |   | $ | 807     |  
|Interest expense                                |                    | $                           | 2,729   |         |         | $ | 403    |        |        | $ | 74    |       |       | $      | 21    |       |       | $ | 3,227   |         |         | $     | (747   | )   |     | $         | 2,480   |         |           | $ | 9,535   |   |   | $ | (35    | ) |   | $ | 9,500   |  
|Income tax expense (benefit)                    |                    | $                           | (599    | )       |         | $ | (640   | )      |        | $ | 31    |       |       | $      | (11   | )     |       | $ | (1,219  | )       |         | $     | (1,221 | )   |     | $         | (2,440  | )       |           | $ | 1,544   |   |   | $ | (20    | ) |   | $ | 1,524   |  
|Earnings (losses) of nonconsolidated associates |                    | $                           | 40      |         |         | $ | 102    |        |        | $ | (3    | )     |       | $      | 666   |       |       | $ | 805     |         |         | $     | (16    | )   |     | $         | 789     |         |           | $ | (6      | ) |   | $ |       |   |   | $ | (6      | )
|Net income (loss) from continuing operations    |                    | $                           | 1,409   |         |         | $ | (925   | )      |        | $ | 60    |       |       | $      | 730   |       |       | $ | 1,274   |         |         | $     | (1,419 | )   |     | $         | (145    | )       |           | $ | 2,968   |   |   | $ | (19    | ) |   | $ | 2,949   |  
|Investments in nonconsolidated affiliates       |                    | $                           | 482     |         |         | $ | 1,476  |        |        | $ | 276   |       |       | $      | 4,541 |       |       | $ | 6,775   |         |         | $     | 1      |     |     | $         | 6,776   |         |           | $ | 179     |   |   | $ | (179   | ) |   | $ |        |  
|Segment assets                                  |                    | $                           | 126,982 |         |         | $ | 26,586 |        |        | $ | 4,192 |       |       | $      | 4,923 |       |       | $ | 162,683 |         |         | $     | (3,140 | )   |     | $         | 159,543 |         |           | $ | 324,217 |   |   | $ | (1,413 | ) |   | $ | 322,804 |  
|Expenditures for property                       |                    | $                           | 5,163   |         |         | $ | 1,331  |        |        | $ | 158   |       |       | $      | 496   |       |       | $ | 7,148   |         |         | $     | 136    |     |     | $         | 7,284   |         |           | $ | 470     |   |   | $ | (1     | ) |   | $ | 469     |  
|2003                                            |                    |                             |         |         |         |   |        |        |        |   |       |       |       |        |       |       |       |   |         |         |         |       |        |     |     |           |         |         |           |   |         |   |   |   |        |   |   |   |         |  
|Manufactured products sales and revenues:       |                    |                             |         |         |         |   |        |        |        |   |       |       |       |        |       |       |       |   |         |         |         |       |        |     |     |           |         |         |           |   |         |   |   |   |        |   |   |   |         |  
|                                                | External customers |                             | $       | 114,756 |         |   | $      | 25,960 |        |   | $     | 4,755 |       |        | $     | 4,578 |       |   | $       | 150,049 |         |       | $      | 803 |     |           | $       | 150,852 |           |   | $       |  |   |   | $      |  |   |   | $       |  |  
|                                                | Intersegment       |                             |         | (2,044  | )       |   |        | 946    |        |   |       | 555   |       |        |       | 543   |       |   |         |        |         |       |        |    |     |           |         |        |           |   |         |  |   |   |        |  |   |   |         |  |  
|                                                |                    |                             |         |         |         |   |        |        |        |   |       |       |       |        |       |       |       |   |         |         |         |       |        |     |     |           |         |         |           |  
|                                                |                    | Total manufactured products |         |         | 112,712 |   |        |        | 26,906 |   |       |       | 5,310 |        |       |       | 5,121 |   |         |         | 150,049 |       |        |     | 803 |           |         |         | 150,852   |   |         |   |  |   |        |   |  |   |         |   |  | 
|Financing revenue                               |                    |                             |        |         |         |   |       |        |        |   |      |       |       |        |      |       |       |   |        |         |         |       |       |     |     |           |        |         |           |   | 18,247  |   |   |   | 630    |   |   |   | 18,877  |  
|Other income                                    |                    |                             | 3,598   |         |         |   | 572    |        |        |   | 77    |       |       |        | 217   |       |       |   | 4,464   |         |         |       | 515    |     |     |           | 4,979   |         |           |   | 11,101  |   |   |   | 28     |   |   |   | 11,129  |  
|                                                |                    |                             |         |         |         |   |        |        |        |   |       |       |       |        |       |       |       |   |         |         |         |       |        |     |     |           |         |         |           |  
|Total net sales and revenues                    |                    | $                           | 116,310 |         |         | $ | 27,478 |        |        | $ | 5,387 |       |       | $      | 5,338 |       |       | $ | 154,513 |         |         | $     | 1,318  |     |     | $         | 155,831 |         |           | $ | 29,348  |   |   | $ | 658    |   |   | $ | 30,006  |  
|                                                |                    |                             |         |         |         |   |        |        |        |   |       |       |       |        |       |       |       |   |         |         |         |       |        |     |     |           |         |         |           |  
|Depreciation and amortization                   |                    | $                           | 6,199   |         |         | $ | 1,211  |        |        | $ | 248   |       |       | $      | 233   |       |       | $ | 7,891   |         |         | $     | 55     |     |     | $         | 7,946   |         |           | $ | 5,279   |   |   | $ | 288    |   |   | $ | 5,567   |  
|Interest income(a)                              |                    | $                           | 1,445   |         |         | $ | 375    |        |        | $ | 36    |       |       | $      | 4     |       |       | $ | 1,860   |         |         | $     | (471   | )   |     | $         | 1,389   |         |           | $ | 937     |   |   | $ | (253   | ) |   | $ | 684     |  
|Interest expense                                |                    | $                           | 1,762   |         |         | $ | 343    |        |        | $ | 119   |       |       | $      | 11    |       |       | $ | 2,235   |         |         | $     | (455   | )   |     | $         | 1,780   |         |           | $ | 7,564   |   |   | $ | 120    |   |   | $ | 7,684   |  
|Income tax expense (benefit)                    |                    | $                           | 224     |         |         | $ | (378   | )      |        | $ | (149  | )     |       | $      | 44    |       |       | $ | (259    | )       |         | $     | (595   | )   |     | $         | (854    | )       |           | $ | 1,555   |   |   | $ | 9      |   |   | $ | 1,564   |  
|Earnings (losses) of nonconsolidated associates |                    | $                           | 113     |         |         | $ | 102    |        |        | $ | 7     |       |       | $      | 560   |       |       | $ | 782     |         |         | $     | (48    | )   |     | $         | 734     |         |           | $ | (3      | ) |   | $ | (4     | ) |   | $ | (7      | )
|Net income (loss) from continuing operations    |                    | $                           | 879     |         |         | $ | (466   | )      |        | $ | (329  | )     |       | $      | 576   |       |       | $ | 660     |         |         | $     | (523   | )   |     | $         | 137     |         |           | $ | 2,728   |   |   | $ | 34     |   |   | $ | 2,762   |  
|Investments in nonconsolidated affiliates       |                    | $                           | 462     |         |         | $ | 1,139  |        |        | $ | 431   |       |       | $      | 3,944 |       |       | $ | 5,976   |         |         | $     | 56     |     |     | $         | 6,032   |         |           | $ | 50      |   |   | $ | (50    | ) |   | $ |        |  
|Segment assets                                  |                    | $                           | 130,372 |         |         | $ | 23,951 |        |        | $ | 3,038 |       |       | $      | 3,302 |       |       | $ | 160,663 |         |         | $     | 1,247  |     |     | $         | 161,910 |         |           | $ | 288,350 |   |   | $ | 51     |   |   | $ | 288,401 |  
|Expenditures for property                       |                    | $                           | 4,650   |         |         | $ | 1,202  |        |        | $ | 110   |       |       | $      | 576   |       |       | $ | 6,538   |         |         | $     | 78     |     |     | $         | 6,616   |         |           | $ | 473     |   |   | $ | 2      |   |   | $ | 475     |  



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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|         |                              
|-------- | -----------------------------
|NOTE 24. | Segment Reporting (continued)

|                                                |                    |                             |         |         |         |   |        |        |        |   |       |       |       |        |       |       |       |   |         |         |         |       |        |       |       |           |         |         |           |   |         |   |   |   |      |   |   |   |         |   |   | 
|----------------------------------------------- | ------------------ | --------------------------- | ------- | ------- | ------- | - | ------ | ------ | ------ | - | ----- | ----- | ----- | ------ | ----- | ----- | ----- | - | ------- | ------- | ------- | ----- | ------ | ----- | ----- | --------- | ------- | ------- | --------- | - | ------- | - | - | - | ---- | - | - | - | ------- | - | - | 
|                                                |                    |                             |         |         |         |   |        |        |        |   |       |       |       | Auto & |       |       |       |   | Other   |         |         | Total |       
|                                                |                    | GMNA                        |         |         | GME     |   |        | GMLAAM |        |   | GMAP  |       |       | GMA    |       |       | Other |   |         | Other   |         |       | GMAC   |       |       | Financing |         |         | Financing |  
|                                                |                    |                             |         |         |         |   |        |        |        |   |       |       |       |        |       |       |       |   |         |         |         |       |        |       |       |           |         |         |           |  
|                                                |                    | (Dollars in millions)       |        
|2002                                            |                    |                             |         |         |         |   |        |        |        |   |       |       |       |        |       |       |       |   |         |         |         |       |        |       |       |           |         |         |           |   |         |   |   |   |      |   |   |   |         |  
|Manufactured products sales and revenues:       |                    |                             |         |         |         |   |        |        |        |   |       |       |       |        |       |       |       |   |         |         |         |       |        |       |       |           |         |         |           |   |         |   |   |   |      |   |   |   |         |  
|                                                | External customers |                             | $       | 115,041 |         |   | $      | 22,409 |        |   | $     | 4,698 |       |        | $     | 3,663 |       |   | $       | 145,811 |         |       | $      | 1,253 |       |           | $       | 147,064 |           |   | $       |  |   |   | $    |  |   |   | $       |  |  
|                                                | Intersegment       |                             |         | (2,038  | )       |   |        | 1,057  |        |   |       | 327   |       |        |       | 654   |       |   |         |        |         |       |        | (18   | )     |           |         | (18     | )         |   |         |  |   |   |      |  |   |   |         |  |  
|                                                |                    |                             |         |         |         |   |        |        |        |   |       |       |       |        |       |       |       |   |         |         |         |       |        |       |       |           |         |         |           |  
|                                                |                    | Total manufactured products |         |         | 113,003 |   |        |        | 23,466 |   |       |       | 5,025 |        |       |       | 4,317 |   |         |         | 145,811 |       |        |       | 1,235 |           |         |         | 147,046   |   |         |   |  |   |      |   |  |   |         |   |  | 
|Financing revenue                               |                    |                             |        |         |         |   |       |        |        |   |      |       |       |        |      |       |       |   |        |         |         |       |       |       |       |           |        |         |           |   | 16,880  |   |   |   | 749  |   |   |   | 17,629  |  
|Other income                                    |                    |                             | 2,806   |         |         |   | 446    |        |        |   | 85    |       |       |        | 207   |       |       |   | 3,544   |         |         |       | (340   | )     |       |           | 3,204   |         |           |   | 10,003  |   |   |   | (15  | ) |   |   | 9,988   |  
|                                                |                    |                             |         |         |         |   |        |        |        |   |       |       |       |        |       |       |       |   |         |         |         |       |        |       |       |           |         |         |           |  
|Total net sales and revenues                    |                    | $                           | 115,809 |         |         | $ | 23,912 |        |        | $ | 5,110 |       |       | $      | 4,524 |       |       | $ | 149,355 |         |         | $     | 895    |       |       | $         | 150,250 |         |           | $ | 26,883  |   |   | $ | 734  |   |   | $ | 27,617  |  
|                                                |                    |                             |         |         |         |   |        |        |        |   |       |       |       |        |       |       |       |   |         |         |         |       |        |       |       |           |         |         |           |  
|Depreciation and amortization                   |                    | $                           | 4,853   |         |         | $ | 1,080  |        |        | $ | 178   |       |       | $      | 143   |       |       | $ | 6,254   |         |         | $     | 70     |       |       | $         | 6,324   |         |           | $ | 4,840   |   |   | $ | 405  |   |   | $ | 5,245   |  
|Interest income(a)                              |                    | $                           | 1,003   |         |         | $ | 316    |        |        | $ | 24    |       |       | $      | 12    |       |       | $ | 1,355   |         |         | $     | (450   | )     |       | $         | 905     |         |           | $ | 687     |   |   | $ | (270 | ) |   | $ | 417     |  
|Interest expense                                |                    | $                           | 738     |         |         | $ | 304    |        |        | $ | 145   |       |       | $      | 8     |       |       | $ | 1,195   |         |         | $     | (716   | )     |       | $         | 479     |         |           | $ | 6,834   |   |   | $ | 190  |   |   | $ | 7,024   |  
|Income tax expense (benefit)                    |                    | $                           | 1,208   |         |         | $ | (453   | )      |        | $ | (76   | )     |       | $      | 55    |       |       | $ | 734     |         |         | $     | (1,115 | )     |       | $         | (381    | )       |           | $ | 1,008   |   |   | $ | (49  | ) |   | $ | 959     |  
|Earnings (losses) of nonconsolidated associates |                    | $                           | 46      |         |         | $ | 76     |        |        | $ | (3    | )     |       | $      | 231   |       |       | $ | 350     |         |         | $     | 11     |       |       | $         | 361     |         |           | $ | (1      | ) |   | $ | (7   | ) |   | $ | (8      | )
|Net income (loss) from continuing operations    |                    | $                           | 2,943   |         |         | $ | (1,044 | )      |        | $ | (181  | )     |       | $      | 188   |       |       | $ | 1,906   |         |         | $     | (1,971 | )     |       | $         | (65     | )       |           | $ | 1,866   |   |   | $ | 12   |   |   | $ | 1,878   |  
|Investments in nonconsolidated affiliates       |                    | $                           | 534     |         |         | $ | 890    |        |        | $ | 397   |       |       | $      | 3,233 |       |       | $ | 5,054   |         |         | $     | 43     |       |       | $         | 5,097   |         |           | $ | 237     |   |   | $ | (237 | ) |   | $ |        |  
|Segment assets                                  |                    | $                           | 105,527 |         |         | $ | 20,386 |        |        | $ | 3,035 |       |       | $      | 1,642 |       |       | $ | 130,590 |         |         | $     | (7,128 | )     |       | $         | 142,115 | (b)     |           | $ | 227,880 |   |   | $ | 440  |   |   | $ | 228,320 |  
|Expenditures for property                       |                    | $                           | 4,448   |         |         | $ | 1,448  |        |        | $ | 200   |       |       | $      | 263   |       |       | $ | 6,359   |         |         | $     | 55     |       |       | $         | 6,414   |         |           | $ | 451     |   |   | $ | 6    |   |   | $ | 457     |  






|    |  |                                                                                   
|--- |  | ----------------------------------------------------------------------------------
|(a) |  | Interest income is included in net sales and revenues from
    external customers.
|   
|(b) |  | Includes assets of discontinued operations of $18,653 at
    December 31, 2002.   

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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|         |                              
|-------- | -----------------------------
|NOTE 24. | Segment Reporting (concluded)



|              |                     |                     |       |         |           |  |       |          |        |  |           |         |         |          |       |        |           |  |       |         |         |  |       |        |        | 
|------------- | ------------------- | ------------------- | ----- | ------- | --------- |  | ----- | -------- | ------ |  | --------- | ------- | ------- | -------- | ----- | ------ | --------- |  | ----- | ------- | ------- |  | ----- | ------ | ------ | 
|              |                     | 2004                |       |         | 2003      |  |       | 2002     |       
|              |                     |                     |       |         |           |  |       |          |       
|              |                     | Net                 |       |         | Long      |  |       | Net      |        |  | Long      |         |         | Net      |       |        | Long      | 
|              |                     | Sales &             |       |         | Lived     |  |       | Sales &  |        |  | Lived     |         |         | Sales &  |       |        | Lived     | 
|              |                     | Revenues            |       |         | Assets(1) |  |       | Revenues |        |  | Assets(1) |         |         | Revenues |       |        | Assets(1) | 
|              |                     |                     |       |         |           |  |       |          |        |  |           |         |         |          |       |        |           | 
|North America |                     |                     |       |         |           |  |       |          |        |  |           |         |         |          |       |        |           |  |       |         |         |  |       |       
|              | United States       |                     | $     | 134,380 |           |  | $     | 46,712   |        |  | $         | 133,955 |         |          | $     | 47,354 |           |  | $     | 130,552 |         |  | $     | 45,964 |       
|              | Canada and Mexico   |                     |       | 15,484  |           |  |       | 10,443   |        |  |           | 14,667  |         |          |       | 8,530  |           |  |       | 15,049  |         |  |       | 6,897  |       
|              |                     |                     |       |         |           |  |       |          |        |  |           |         |         |          |       |        |           | 
|              |                     | Total North America |       |         | 149,864   |  |       |          | 57,155 |  |           |         | 148,622 |          |       |        | 55,884    |  |       |         | 145,601 |  |       |        | 52,861 | 
|Europe        |                     |                     |       |         |           |  |       |          |        |  |           |         |         |          |       |        |           |  |       |         |         |  |       |       
|              | France              |                     |       | 2,669   |           |  |       | 262      |        |  |           | 2,429   |         |          |       | 216    |           |  |       | 2,073   |         |  |       | 183    |       
|              | Germany             |                     |       | 6,710   |           |  |       | 4,479    |        |  |           | 5,945   |         |          |       | 3,996  |           |  |       | 5,363   |         |  |       | 3,244  |       
|              | Spain               |                     |       | 2,661   |           |  |       | 1,181    |        |  |           | 2,143   |         |          |       | 1,256  |           |  |       | 1,721   |         |  |       | 1,076  |       
|              | United Kingdom      |                     |       | 7,563   |           |  |       | 2,273    |        |  |           | 6,480   |         |          |       | 2,244  |           |  |       | 5,513   |         |  |       | 2,096  |       
|              | Other               |                     |       | 13,622  |           |  |       | 3,805    |        |  |           | 12,356  |         |          |       | 3,537  |           |  |       | 10,450  |         |  |       | 2,953  |       
|              |                     |                     |       |         |           |  |       |          |        |  |           |         |         |          |       |        |           | 
|              |                     | Total Europe        |       |         | 33,225    |  |       |          | 12,000 |  |           |         | 29,353  |          |       |        | 11,249    |  |       |         | 25,120  |  |       |        | 9,552  | 
|Latin America |                     |                     |       |         |           |  |       |          |        |  |           |         |         |          |       |        |           |  |       |         |         |  |       |       
|              | Brazil              |                     |       | 2,987   |           |  |       | 609      |        |  |           | 2,328   |         |          |       | 584    |           |  |       | 2,487   |         |  |       | 619    |       
|              | Other Latin America |                     |       | 2,611   |           |  |       | 180      |        |  |           | 1,685   |         |          |       | 186    |           |  |       | 2,287   |         |  |       | 185    |       
|              |                     |                     |       |         |           |  |       |          |        |  |           |         |         |          |       |        |           | 
|              |                     | Total Latin America |       |         | 5,598     |  |       |          | 789    |  |           |         | 4,013   |          |       |        | 770       |  |       |         | 4,774   |  |       |        | 804    | 
|All Other     |                     |                     | 4,830 |         |           |  | 3,290 |          |        |  | 3,849     |         |         |          | 2,820 |        |           |  | 2,372 |         |         |  | 2,404 |       
|              |                     |                     |       |         |           |  |       |          |        |  |           |         |         |          |       |        |           | 
|              |                     | Total               |       | $       | 193,517   |  |       | $        | 73,234 |  |           | $       | 185,837 |          |       | $      | 70,723    |  |       | $       | 177,867 |  |       | $      | 65,621 | 
|              |                     |                     |       |         |           |  |       |          |        |  |           |         |         |          |       |        |           | 






|    |                                                                                                             
|--- | ------------------------------------------------------------------------------------------------------------
|(1) | Consists of property (Note 11), equipment on operating
    leases (Note 9), net of accumulated depreciation.






|         |                  
|-------- | -----------------
|NOTE 25. | Subsequent Events





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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Concluded)




|         |                              
|-------- | -----------------------------
|NOTE 25. | Subsequent Events (concluded)





| |   |                                                                                                                                                                                                                                                                                                      
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The Fiat-GM Powertrain (FGP) joint venture company will be
    dissolved and GM will regain complete ownership of all GM assets
    originally contributed. During a transition period, FGP will
    continue to supply both companies so that their respective
    operations will not be disrupted.
|
| |  | GM will retain co-ownership with Fiat of the key powertrain
    intellectual property, including SDE and JTD diesel engines and
    the M20-32 six-speed manual transmission;                                                                                                                        
|
| |  | GM will hold a 50% interest in a joint venture limited to
    operating the powertrain manufacturing plant in Bielsko-Biala,
    Poland, that currently produces the 1.3 liter SDE diesel engine;                                                                                                    
|
| |  | The companies will continue to supply each other with
    powertrains under long term contracts which provide considerable
    ongoing savings;                                                                                                                                                      
|
| |  | GM and Fiat will also continue to work together to develop
    certain car programs;                                                                                                                                                                                                                 
|
| |  | Fiat will participate in GMs purchasing alliance program;                                                                                                                                                                                                                                           





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GENERAL MOTORS CORPORATION AND SUBSIDIARIES







SUPPLEMENTARY INFORMATION


Selected Quarterly Data (Unaudited)


|                                                                                                     |                  |                                                |        |       |          |   |            |          |   |   |          |            |   |          |        |       |            |   |        |          |   |   |          |      |   |   |        |        |   |   |        |        |  
|---------------------------------------------------------------------------------------------------- | ---------------- | ---------------------------------------------- | ------ | ----- | -------- | - | ---------- | -------- | - | - | -------- | ---------- | - | -------- | ------ | ----- | ---------- | - | ------ | -------- | - | - | -------- | ---- | - | - | ------ | ------ | - | - | ------ | ------ | -
|                                                                                                     |                  | 2004 Quarters(1)                               |       
|                                                                                                     |                  |                                                |       
|                                                                                                     |                  | 1st                                            |        |       | 2nd      |   |            | 3rd      |   |   | 4th(3)   |           
|                                                                                                     |                  |                                                |        |       |          |   |            |          |   |   |          |           
|                                                                                                     |                  | As                                             |        |       |          |   | As         |          |   |   |          | As         |   |          |        |       | As         |   |        |         
|                                                                                                     |                  | Previously                                     |        |       |          |   | Previously |          |   |   |          | Previously |   |          |        |       | Previously |   |        |         
|                                                                                                     |                  | Reported                                       |        |       | Restated |   |            | Reported |   |   | Restated |            |   | Reported |        |       | Restated   |   |        | Reported |   |   | Restated |     
|                                                                                                     |                  |                                                |        |       |          |   |            |          |   |   |          |            |   |          |        |       |            |   |        |          |   |   |          |     
|                                                                                                     |                  | (Dollars in millions except per share amounts) |       
|Total net sales and revenues                                                                         |                  | $                                              | 47,862 |       |          | $ | 47,862     |          |   | $ | 49,293   |            |   | $        | 49,293 |       |            | $ | 44,934 |          |   | $ | 44,934   |      |   | $ | 51,428 |        |   | $ | 51,428 |       
|Income (loss) before income taxes and minority interests                                             |                  | $                                              | 1,264  |       |          | $ | 1,216      |          |   | $ | 1,466    |            |   | $        | 1,449  |       |            | $ | 175    |          |   | $ | 94       |      |   | $ | (1,713 | )      |   | $ | (1,573 | )     
|Income tax expense (benefit)                                                                         |                  |                                                | 308    |       |          |   | 243        |          |   |   | 302      |            |   |          | 223    |       |            |   | 10     |          |   |   | (39      | )    |   |   | (1,531 | )      |   |   | (1,343 | )     
|Minority interests                                                                                   |                  |                                                | (23    | )     |          |   | (23        | )        |   |   | (23      | )          |   |          | (23    | )     |            |   | (12    | )        |   |   | (12      | )    |   |   | (23    | )      |   |   | (23    | )     
|Earnings of nonconsolidated associates                                                               |                  |                                                | 275    |       |          |   | 275        |          |   |   | 236      |            |   |          | 236    |       |            |   | 162    |          |   |   | 162      |      |   |   | 110    |        |   |   | 110    |       
|                                                                                                     |                  |                                                |        |       |          |   |            |          |   |   |          |            |   |          |        |       |            |   |        |          |   |   |          |     
|                                                                                                     | Net income       |                                                | $      | 1,208 |          |   | $          | 1,225    |   |   | $        | 1,377      |   |          | $      | 1,439 |            |   | $      | 315      |   |   | $        | 283  |   |   | $      | (95    | ) |   | $      | (143   | )
|                                                                                                     |                  |                                                |        |       |          |   |            |          |   |   |          |            |   |          |        |       |            |   |        |          |   |   |          |     
|Basic earnings (losses) per share attributable to
    $12/3 par value                                |                  | $                                              | 2.14   |       |          | $ | 2.17       |          |   | $ | 2.44     |            |   | $        | 2.55   |       |            | $ | 0.56   |          |   | $ | 0.50     |      |   | $ | (0.17  | )      |   | $ | (0.25  | )     
|                                                                                                     |                  |                                                |        |       |          |   |            |          |   |   |          |            |   |          |        |       |            |   |        |          |   |   |          |     
|Average number of shares of common stock outstanding 
    basic (in millions)
    $12/3 par value   |                  |                                                | 564    |       |          |   | 564        |          |   |   | 565      |            |   |          | 565    |       |            |   | 565    |          |   |   | 565      |      |   |   | 565    |        |   |   | 565    |       
|Earnings (loss) per share attributable to common stock assuming
    dilution
    $12/3 par value     |                  | $                                              | 2.12   |       |          | $ | 2.15       |          |   | $ | 2.42     |            |   | $        | 2.53   |       |            | $ | 0.56   |          |   | $ | 0.50     |      |   | $ | (0.17  | )      |   | $ | (0.25  | )     
|                                                                                                     |                  |                                                |        |       |          |   |            |          |   |   |          |            |   |          |        |       |            |   |        |          |   |   |          |     
|Average number of shares of common stock outstanding 
    diluted (in millions)
    $12/3 par value |                  |                                                | 569    |       |          |   | 569        |          |   |   | 568      |            |   |          | 568    |       |            |   | 567    |          |   |   | 567      |      |   |   | 565    |        |   |   | 565    |       
|Net income (loss) by reportable operating segment/ region                                            |                  |                                                |        |       |          |   |            |          |   |   |          |            |   |          |        |       |            |   |        |          |   |   |          |      |   |   |        |        |   |   |        |       
|Automotive and Other Operations                                                                      |                  |                                                |        |       |          |   |            |          |   |   |          |            |   |          |        |       |            |   |        |          |   |   |          |      |   |   |        |        |   |   |        |       
|                                                                                                     | GMNA             |                                                | $      | 401   |          |   | $          | 344      |   |   | $        | 355        |   |          | $      | 366   |            |   | $      | (88      | ) |   | $        | (166 | ) |   | $      | 915    |   |   | $      | 865    |  
|                                                                                                     | GME              |                                                |        | (116  | )        |   |            | (109     | ) |   |          | (45        | ) |          |        | (62   | )          |   |        | (236     | ) |   |          | (207 | ) |   |        | (579   | ) |   |        | (547   | )
|                                                                                                     | GMLAAM           |                                                |        | 1     |          |   |            | (17      | ) |   |          | 10         |   |          |        | 18    |            |   |        | 27       |   |   |          | 17   |   |   |        | 47     |   |   |        | 42     |  
|                                                                                                     | GMAP             |                                                |        | 275   |          |   |            | 272      |   |   |          | 259        |   |          |        | 253   |            |   |        | 78       |   |   |          | 74   |   |   |        | 117    |   |   |        | 131    |  
|                                                                                                     | Other Operations |                                                |        | (117  | )        |   |            | (22      | ) |   |          | (34        | ) |          |        | 65    |            |   |        | (83      | ) |   |          | (85  | ) |   |        | (1,276 | ) |   |        | (1,377 | )
|                                                                                                     |                  |                                                |        |       |          |   |            |          |   |   |          |            |   |          |        |       |            |   |        |          |   |   |          |     
|Net income (loss)  Automotive and Other Operations                                                  |                  |                                                | 444    |       |          |   | 468        |          |   |   | 545      |            |   |          | 640    |       |            |   | (302   | )        |   |   | (367     | )    |   |   | (776   | )      |   |   | (886   | )     
|Financing and Insurance Operations Net income 
    Financing and Insurance Operations               |                  |                                                | 764    |       |          |   | 757        |          |   |   | 832      |            |   |          | 799    |       |            |   | 617    |          |   |   | 650      |      |   |   | 681    |        |   |   | 743    |       
|                                                                                                     |                  |                                                |        |       |          |   |            |          |   |   |          |            |   |          |        |       |            |   |        |          |   |   |          |     
|Net income                                                                                           |                  | $                                              | 1,208  |       |          | $ | 1,225      |          |   | $ | 1,377    |            |   | $        | 1,439  |       |            | $ | 315    |          |   | $ | 283      |      |   | $ | (95    | )      |   | $ | (143   | )     
|                                                                                                     |                  |                                                |        |       |          |   |            |          |   |   |          |            |   |          |        |       |            |   |        |          |   |   |          |     

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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


SUPPLEMENTARY INFORMATION


Selected Quarterly Data (Unaudited) (continued)


|                                                               |  |                       |        |   |                |   |               |                    |  |   |          |               |  |          |         |   |          |   |         |   |  |   |         |  
|-------------------------------------------------------------- |  | --------------------- | ------ | - | -------------- | - | ------------- | ------------------ |  | - | -------- | ------------- |  | -------- | ------- | - | -------- | - | ------- | - |  | - | ------- | -
|                                                               |  | 2004 Year-to-Date(2)  |       
|                                                               |  |                       |       
|                                                               |  | 3 Months Ended        |        |   | 6 Months Ended |   |               | 9 Months Ended     | 
|                                                               |  | March 31, 2004        |        |   | June 30, 2004  |   |               | September 30, 2004 | 
|                                                               |  |                       |        |   |                |   |               |                    | 
|                                                               |  | As Previously         |        |   |                |   | As Previously |                    |  |   |          | As Previously |  |          |        
|                                                               |  | Reported              |        |   | Restated       |   |               | Reported           |  |   | Restated |               |  | Reported |         |   | Restated |  
|                                                               |  |                       |        |   |                |   |               |                    |  |   |          |               |  |          |         |   |          |  
|                                                               |  | (Dollars in Millions) |       
|Consolidated                                                   |  |                       |        |   |                |   |               |                    |  |   |          |               |  |          |         |   |          |   |         |   |  |   |         |  
|Net cash provided by (used in) continuing operating activities |  | $                     | (3,279 | ) |                | $ | (3,842        | )                  |  | $ | 559      |               |  | $        | (282    | ) |          | $ | 12,108  |   |  |   | 9,507   |  
|Net cash provided by (used in) continuing investing activities |  |                       | (9,947 | ) |                |   | (9,384        | )                  |  |   | (14,139  | )             |  |          | (13,298 | ) |          |   | (24,209 | ) |  |   | (21,608 | )
|Net cash provided by (used in) continuing financing activities |  |                       | 9,308  |   |                |   | 9,308         |                    |  |   | 11,175   |               |  |          | 11,175  |   |          |   | 17,158  |   |  |   | 17,158  |  
|Effect of exchange rate changes on cash and cash equivalents   |  |                       | (101   | ) |                |   | (101          | )                  |  |   | (248     | )             |  |          | (248    | ) |          |   | (22     | ) |  |   | (22     | )
|                                                               |  |                       |        |   |                |   |               |                    |  |   |          |               |  |          |         |   |          |  
|Net increase (decrease) in cash and cash equivalents           |  | $                     | (4,019 | ) |                | $ | (4,019        | )                  |  | $ | (2,653   | )             |  | $        | (2,653  | ) |          | $ | 5,035   |   |  | $ | 5,035   |  
|                                                               |  |                       |        |   |                |   |               |                    |  |   |          |               |  |          |         |   |          |  
|Automotive and Other Operations                                |  |                       |        |   |                |   |               |                    |  |   |          |               |  |          |         |   |          |   |         |   |  |   |         |  
|Net cash provided by (used in) continuing operating activities |  | $                     | (1,809 | ) |                | $ | (1,809        | )                  |  | $ | 955      |               |  | $        | 955     |   |          | $ | 1,273   |   |  | $ | 1,273   |  
|Net cash provided by (used in) continuing investing activities |  |                       | (1,026 | ) |                |   | (1,026        | )                  |  |   | (2,233   | )             |  |          | (2,233  | ) |          |   | (3,150  | ) |  |   | (3,150  | )
|Net cash provided by (used in) continuing financing activities |  |                       | (399   | ) |                |   | (399          | )                  |  |   | (300     | )             |  |          | (300    | ) |          |   | (572    | ) |  |   | (572    | )
|Effect of exchange rate changes on cash and cash equivalents   |  |                       | (96    | ) |                |   | (96           | )                  |  |   | (176     | )             |  |          | (176    | ) |          |   | (47     | ) |  |   | (47     | )
|Net transactions with Financing and Insurance                  |  |                       | 168    |   |                |   | 168           |                    |  |   | 512      |               |  |          | 512     |   |          |   | 1,056   |   |  |   | 1,056   |  
|                                                               |  |                       |        |   |                |   |               |                    |  |   |          |               |  |          |         |   |          |  
|Net increase (decrease) in cash and cash equivalents           |  | $                     | (3,162 | ) |                | $ | (3,162        | )                  |  | $ | (1,242   | )             |  | $        | (1,242  | ) |          | $ | (1,440  | ) |  | $ | (1,440  | )
|                                                               |  |                       |        |   |                |   |               |                    |  |   |          |               |  |          |         |   |          |  
|Financing and Insurance Operations                             |  |                       |        |   |                |   |               |                    |  |   |          |               |  |          |         |   |          |   |         |   |  |   |         |  
|Net cash provided by (used in) continuing operating activities |  | $                     | (1,470 | ) |                |   | (2,033        | )                  |  | $ | (396     | )             |  |          | (1,237  | ) |          | $ | 10,835  |   |  |   | 8,234   |  
|Net cash provided by (used in) continuing investing activities |  |                       | (8,921 | ) |                |   | (8,358        | )                  |  |   | (11,906  | )             |  |          | (11,065 | ) |          |   | (21,059 | ) |  |   | (18,458 | )
|Net cash provided by (used in) continuing financing activities |  |                       | 9,707  |   |                |   | 9,707         |                    |  |   | 11,475   |               |  |          | 11,475  |   |          |   | 17,730  |   |  |   | 17,730  |  
|Effect of exchange rate changes on cash and cash equivalents   |  |                       | (5     | ) |                |   | (5            | )                  |  |   | (72      | )             |  |          | (72     | ) |          |   | 25      |   |  |   | 25      |  
|Net transactions with Automotive and Other                     |  |                       | (168   | ) |                |   | (168          | )                  |  |   | (512     | )             |  |          | (512    | ) |          |   | (1,056  | ) |  |   | (1,056  | )
|                                                               |  |                       |        |   |                |   |               |                    |  |   |          |               |  |          |         |   |          |  
|Net increase (decrease) in cash and cash equivalents           |  | $                     | (857   | ) |                | $ | (857          | )                  |  | $ | (1,411   | )             |  | $        | (1,411  | ) |          | $ | 6,475   |   |  | $ | 6,475   |  
|                                                               |  |                       |        |   |                |   |               |                    |  |   |          |               |  |          |         |   |          |  






|    |                                                                                                                                                                                                                                                                                                                                              
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | As discussed in Note 1 to the Consolidated Financial
    Statements, GM restated its financial statements to correct the
    accounting for credits and other lump sum payments from
    suppliers. Additionally, GM has subsequently chosen to restate
    its financial statements for errors it has identified in periods
    presented in

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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


SUPPLEMENTARY INFORMATION


Selected Quarterly Data (Unaudited) (continued)




| |                                                                                                                                                           
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------
| | this filing. The effects of the restatement adjustments on
    GMs originally reported quarterly results of operations
    for 2004 are summarized below.

|                                         |                                       |                       |       |    |          |   |       |     |   |   |     |    |   |      |      |    |   |   |       |     |  
|---------------------------------------- | ------------------------------------- | --------------------- | ----- | -- | -------- | - | ----- | --- | - | - | --- | -- | - | ---- | ---- | -- | - | - | ----- | --- | -
|                                         |                                       | 2004 Quarters         |       |    | 2004     |  
|                                         |                                       |                       |       |    | Calendar |  
|                                         |                                       | 1st                   |       |    | 2nd      |   |       | 3rd |   |   | 4th |    |   | Year |     
|                                         |                                       |                       |       |    |          |   |       |     |   |   |     |    |   |      |     
|                                         |                                       | (Dollars in millions) |      
|Income (loss) from continuing operations |                                       |                       |       |    |          |   |       |     |   |   |     |    |   |      |      |    |   |   |       |    
|As originally reported:                  |                                       | $                     | 1,208 |    |          | $ | 1,377 |     |   | $ | 315 |    |   | $    | (95  | )  |   | $ | 2,805 |    
|Pre-tax adjustments for:                 |                                       |                       |       |    |          |   |       |     |   |   |     |    |   |      |      |    |   |   |       |    
|                                         | Supplier credits(a)                   |                       |       | (6 | )        |   |       | (5  | ) |   |     | (8 | ) |      |      | (7 | ) |   |       | (26 | )
|                                         | Benefit plans economic assumptions(b) |                       |       | 2  |          |   |       | 2   |   |   |     | 2  |   |      |      | 3  |   |   |       | 9   |  
|                                         |                                       |                       |       |    |          |   |       |     |   |   |     |    |   |      |     
|Total                                    |                                       |                       | (4    | )  |          |   | (3    | )   |   |   | (6  | )  |   |      | (4   | )  |   |   | (17   | )  
|                                         | Related tax effects                   |                       |       | 1  |          |   |       |    |   |   |     | 3  |   |      |      | 2  |   |   |       | 6   |  
|                                         |                                       |                       |       |    |          |   |       |     |   |   |     |    |   |      |     
|Total of above adjustments net of tax    |                                       |                       | (3    | )  |          |   | (3    | )   |   |   | (3  | )  |   |      | (2   | )  |   |   | (11   | )  
|Other, net-of-tax(c)                     |                                       |                       | 20    |    |          |   | 65    |     |   |   | (29 | )  |   |      | (46  | )  |   |   | 10    |    
|                                         |                                       |                       |       |    |          |   |       |     |   |   |     |    |   |      |     
|As restated                              |                                       | $                     | 1,225 |    |          | $ | 1,439 |     |   | $ | 283 |    |   | $    | (143 | )  |   | $ | 2,804 |    
|                                         |                                       |                       |       |    |          |   |       |     |   |   |     |    |   |      |     



| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (a) | GM erroneously recorded as a reduction to cost of sales certain
    payments and credits received from suppliers prior to the
    completion of the earnings process. GM has concluded that the
    payments and credits received were associated with agreements
    for the award of future services or products or other rights and
    privileges and should be recognized when subsequently earned.
    After restatement, a deferred credit of approximately
    $548 million exists as of December 31, 2004, which
    will be recognized as a reduction of cost of sales in future
    periods.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|
| | (b) | GM erroneously calculated the anticipated effect of cost
    reduction initiatives on its expected health-care cost trend
    rate for 2002 and, as a result, understated that rate. These
    adjustments reflect the subsequent increase in accrued expense
    related to the 2001 calculation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|
| | (c) | For all periods covered by this filing, GM has recorded other
    accounting adjustments it has identified that were not recorded
    in the proper period. These
    out-of-period
    adjustments were not considered material to the financial
    statements as originally reported, however, as part of the
    restatement, are being recognized in the period in which the
    underlying transactions occurred. The effect of these
    adjustments,
    net-of-tax, was
    $20 million, $65 million, $(29) million, and
    $(46) million for each quarter of 2004, respectively. The
    significant
    out-of-period
    adjustments were related to the following matters: (1) errors in
    calculations of disposal loss reserves; (2) engineering and
    facility-related expenses recorded in improper periods; (3)
    over-depreciation of certain fixed assets; and (4) tax
    matters, including reconciliation of prior year tax provisions
    to actual tax returns. Of the $20 million adjustment in the
    first quarter, $(30) million relates to errors in
    calculations of disposal loss reserves and $69 million
    relates to tax matters. Of the $65 million adjustment in
    the second quarter, $76 million relates to tax matters. Of
    the $(29) million adjustment in the third quarter,
    $(15) million relates to engineering and facility-related
    expenses. Of the $(46) million adjustment in the fourth
    quarter, $30 million relates to engineering and
    facility-related expenses, and $(63) million relates to tax
    matters.



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | As discussed in Note 1 to the Consolidated Financial
    Statements, GM restated its statements of cash flows to correct
    for the erroneous classification of cash flows from certain
    mortgage loan transactions within our financing and insurance
    operations. Certain mortgage loan originations and purchases
    were not appropriately classified as either operating cash flows
    or investing cash flows consistent with the original

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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


SUPPLEMENTARY INFORMATION


Selected Quarterly Data (Unaudited) (continued)




| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | designation as loans held for sale or loans held for investment.
    In addition, proceeds from sales and repayments related to
    certain mortgage loans, which initially were classified as
    mortgage loans held for investment and subsequently transferred
    to mortgage loans held for sale, were reported as operating cash
    flows instead of investing cash flows in our consolidated
    statements of cash flows. Finally, certain non-cash proceeds and
    transfers were not appropriately presented in the statements of
    cash flows. The effects of the restatement adjustments on
    GMs originally reported interim statements of cash flows
    for 2004 are summarized below.

|                                                    |                             |                       |        |      |                |   |         |                    |   |   |         |        |  
|--------------------------------------------------- | --------------------------- | --------------------- | ------ | ---- | -------------- | - | ------- | ------------------ | - | - | ------- | ------ | -
|                                                    |                             | 2004 Year-To-Date     |       
|                                                    |                             |                       |       
|                                                    |                             | 3 Months Ended        |        |      | 6 Months Ended |   |         | 9 Months Ended     |  
|                                                    |                             | March 31, 2004        |        |      | June 30, 2004  |   |         | September 30, 2004 |  
|                                                    |                             |                       |        |      |                |   |         |                    |  
|                                                    |                             | (Dollars in millions) |       
|Financing and Insurance Operations                  |                             |                       |        |      |                |   |         |                    |   |   |         |       
|Net cash provided by (used in) operating activities |                             |                       |        |      |                |   |         |                    |   |   |         |       
|As originally reported                              |                             | $                     | (1,470 | )    |                | $ | (396    | )                  |   | $ | 10,835  |       
|Adjustments for:                                    |                             |                       |        |      |                |   |         |                    |   |   |         |       
|                                                    | Mortgage related activities |                       |        | (563 | )              |   |         | (841               | ) |   |         | (2,601 | )
|                                                    |                             |                       |        |      |                |   |         |                    |  
|As restated                                         |                             | $                     | (2,033 | )    |                | $ | (1,237  | )                  |   | $ | 8,234   |       
|                                                    |                             |                       |        |      |                |   |         |                    |  
|Net cash used in investing activities               |                             |                       |        |      |                |   |         |                    |   |   |         |       
|As originally reported                              |                             | $                     | (8,921 | )    |                | $ | (11,906 | )                  |   | $ | (21,059 | )     
|Adjustments for:                                    |                             |                       |        |      |                |   |         |                    |   |   |         |       
|                                                    | Mortgage related activities |                       |        | 563  |                |   |         | 841                |   |   |         | 2,601  |  
|                                                    |                             |                       |        |      |                |   |         |                    |  
|As restated                                         |                             | $                     | (8,358 | )    |                | $ | (11,065 | )                  |   | $ | (18,458 | )     
|                                                    |                             |                       |        |      |                |   |         |                    |  



|    |                                                   
|--- | --------------------------------------------------
|(3) | Fourth quarter 2004 results include the following:



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | An after-tax gain of $118 million resulting from the
    contribution of 11 million shares of XM Satellite Radio
    Holdings Inc. Class A common, stock valued at
    $432 million to GMs Voluntary Employees
    Beneficiary Association (VEBA);                                                                                                                                                                                                                                               
|
| |  | A $78 million after-tax charge related primarily to
    previously announced facilities rationalization actions at
    GMs Baltimore, Maryland and Linden, New Jersey plants;                                                                                                                                                                                                                                                                                                                     
|
| |  | A $383 million after-tax charge related to GMs annual
    review of the carrying value of its long-lived assets held and
    used, other than goodwill and intangible assets with indefinite
    lives;                                                                                                                                                                                                                                                                                           
|
| |  | A $136 million after-tax charge related to the write-off of
    GMs remaining investment balance in Fiat Auto Holdings,
    B.V.; and                                                                                                                                                                                                                                                                                                                                                             
|
| |  | A $540 million after-tax favorable adjustment for various
    adjustments resulting from changes in tax laws both in the U.S.
    and overseas and capital loss carryforwards.                                                                                                                                                                                                                                                                                                                     
|
| |  | An after-tax charge of $886 million related to the
    February 13, 2005 GM and Fiat agreement under which GM will
    pay Fiat approximately $2.0 billion and will return its 10%
    equity interest in FAH to settle various disputes and terminate
    the Master Agreement (including the Put Option) entered into in
    March 2000, and acquire an interest in key strategic diesel
    engine assets, and other important rights with respect to diesel
    engine technology and know-how.

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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


SUPPLEMENTARY INFORMATION


Selected Quarterly Data (Unaudited) (continued)


|                                                                                        |                         |                                                |        |       |          |   |            |          |       |   |          |            |     |          |        |      |            |   |        |          |     |   |          |       |     |   |        |       |       |   |        |       |       | 
|--------------------------------------------------------------------------------------- | ----------------------- | ---------------------------------------------- | ------ | ----- | -------- | - | ---------- | -------- | ----- | - | -------- | ---------- | --- | -------- | ------ | ---- | ---------- | - | ------ | -------- | --- | - | -------- | ----- | --- | - | ------ | ----- | ----- | - | ------ | ----- | ----- | 
|                                                                                        |                         | 2003 Quarters(1)(2)                            |       
|                                                                                        |                         |                                                |       
|                                                                                        |                         | 1st(4)                                         |        |       | 2nd      |   |            | 3rd      |       |   | 4th(5)   |           
|                                                                                        |                         |                                                |        |       |          |   |            |          |       |   |          |           
|                                                                                        |                         | As                                             |        |       |          |   | As         |          |       |   |          | As         |     |          |        |      | As         |   |        |         
|                                                                                        |                         | Previously                                     |        |       |          |   | Previously |          |       |   |          | Previously |     |          |        |      | Previously |   |        |         
|                                                                                        |                         | Reported                                       |        |       | Restated |   |            | Reported |       |   | Restated |            |     | Reported |        |      | Restated   |   |        | Reported |     |   | Restated |      
|                                                                                        |                         |                                                |        |       |          |   |            |          |       |   |          |            |     |          |        |      |            |   |        |          |     |   |          |      
|                                                                                        |                         | (Dollars in millions except per share amounts) |       
|Total net sales and revenues                                                            |                         | $                                              | 47,199 |       |          | $ | 47,199     |          |       | $ | 46,098   |            |     | $        | 46,098 |      |            | $ | 43,701 |          |     | $ | 43,701   |       |     | $ | 48,839 |       |       | $ | 48,839 |      
|Income (loss) from continuing operations before income taxes and
    minority interests |                         | $                                              | 2,198  |       |          | $ | 2,299      |          |       | $ | 931      |            |     | $        | 1,026  |      |            | $ | 387    |          |     | $ | 284      |       |     | $ | (536   | )     |       | $ | (612   | )    
|Income tax expense (benefit)                                                            |                         |                                                | 682    |       |          |   | 713        |          |       |   | 244      |            |     |          | 298    |      |            |   | 134    |          |     |   | 103      |       |     |   | (329   | )     |       |   | (404   | )    
|Minority interests                                                                      |                         |                                                | (20    | )     |          |   | (20        | )        |       |   | (11      | )          |     |          | (11    | )    |            |   | 19     |          |     |   | 19       |       |     |   | (103   | )     |       |   | (103   | )    
|Earnings of nonconsolidated associates                                                  |                         |                                                | 41     |       |          |   | 41         |          |       |   | 203      |            |     |          | 203    |      |            |   | 176    |          |     |   | 176      |       |     |   | 308    |       |       |   | 307    |      
|                                                                                        |                         |                                                |        |       |          |   |            |          |       |   |          |            |     |          |        |      |            |   |        |          |     |   |          |      
|Income (losses) from continuing operations                                              |                         |                                                | 1,537  |       |          |   | 1,607      |          |       |   | 879      |            |     |          | 920    |      |            |   | 448    |          |     |   | 376      |       |     |   | (2     | )     |       |   | (4     | )    
|Income (losses) from discontinued operations                                            |                         |                                                | (54    | )     |          |   | (54        | )        |       |   | 22       |            |     |          | 22     |      |            |   | (23    | )        |     |   | (23      | )     |     |   | (164   | )     |       |   | (164   | )    
|Gain from sale of discontinued operations                                               |                         |                                                |       |       |          |   |           |          |       |   |         |            |     |          |       |      |            |   |       |          |     |   |         |       |     |   | 1,179  |       |       |   | 1,179  |      
|                                                                                        |                         |                                                |        |       |          |   |            |          |       |   |          |            |     |          |        |      |            |   |        |          |     |   |          |      
|                                                                                        | Net income              |                                                | $      | 1,483 |          |   | $          | 1,553    |       |   | $        | 901        |     |          | $      | 942  |            |   | $      | 425      |     |   | $        | 353   |     |   | $      | 1,013 |       |   | $      | 1,011 |      
|                                                                                        |                         |                                                |        |       |          |   |            |          |       |   |          |            |     |          |        |      |            |   |        |          |     |   |          |      
|Earnings (losses) attributable to
    $12/3 par value                                   |                         |                                                |        |       |          |   |            |          |       |   |          |            |     |          |        |      |            |   |        |          |     |   |          |       |     |   |        |       |       |   |        |      
|                                                                                        | Continuing operations   |                                                | $      | 1,537 |          |   | $          | 1,607    |       |   | $        | 879        |     |          | $      | 920  |            |   | $      | 448      |     |   | $        | 376   |     |   | $      | (2    | )     |   | $      | (4    | )    
|                                                                                        | Discontinued operations |                                                |        | (16   | )        |   |            | (16      | )     |   |          | 5          |     |          |        | 5    |            |   |        | (5       | )   |   |          | (5    | )   |   |        | 1,218 |       |   |        | 1,218 |      
|                                                                                        |                         |                                                |        |       |          |   |            |          |       |   |          |            |     |          |        |      |            |   |        |          |     |   |          |      
|                                                                                        |                         | Earnings attributable to
    $12/3 par value   |        | $     | 1,521    |   |            | $        | 1,591 |   |          | $          | 884 |          |        | $    | 925        |   |        | $        | 443 |   |          | $     | 371 |   |        | $     | 1,216 |   |        | $     | 1,214 | 
|                                                                                        |                         |                                                |        |       |          |   |            |          |       |   |          |            |     |          |        |      |            |   |        |          |     |   |          |      
|Earnings (losses) from discontinued operations attributable to
    Class H              |                         | $                                              | (38    | )     |          | $ | (38        | )        |       | $ | 17       |            |     | $        | 17     |      |            | $ | (18    | )        |     | $ | (18      | )     |     | $ | (203   | )     |       | $ | (203   | )    
|Basic earnings (losses) per share attributable to common stocks
    $12/3 par value     |                         |                                                |        |       |          |   |            |          |       |   |          |            |     |          |        |      |            |   |        |          |     |   |          |       |     |   |        |       |       |   |        |      
|                                                                                        | Continuing operations   |                                                | $      | 2.74  |          |   | $          | 2.87     |       |   | $        | 1.57       |     |          | $      | 1.64 |            |   | $      | 0.80     |     |   | $        | 0.67  |     |   | $      |      |       |   | $      | (0.01 | )    
|                                                                                        | Discontinued operations |                                                |        | (0.03 | )        |   |            | (0.03    | )     |   |          | 0.01       |     |          |        | 0.01 |            |   |        | (0.01    | )   |   |          | (0.01 | )   |   |        | 2.17  |       |   |        | 2.17  |      
|                                                                                        |                         |                                                |        |       |          |   |            |          |       |   |          |            |     |          |        |      |            |   |        |          |     |   |          |      
|Earnings per share attributable to
    $12/3 par value                                  |                         | $                                              | 2.71   |       |          | $ | 2.84       |          |       | $ | 1.58     |            |     | $        | 1.65   |      |            | $ | 0.79   |          |     | $ | 0.66     |       |     | $ | 2.17   |       |       | $ | 2.16   |      
|                                                                                        |                         |                                                |        |       |          |   |            |          |       |   |          |            |     |          |        |      |            |   |        |          |     |   |          |      
|Earnings (losses) per share from discontinued operations
    attributable to Class H    |                         | $                                              | (0.04  | )     |          | $ | (0.04      | )        |       | $ | 0.02     |            |     | $        | 0.02   |      |            | $ | (0.02  | )        |     | $ | (0.02    | )     |     | $ | (0.18  | )     |       | $ | (0.18  | )    

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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


SUPPLEMENTARY INFORMATION


Selected Quarterly Data (Unaudited) (continued)


|                                                                                         |                         |                                                 |       |       |          |   |            |          |     |   |          |            |       |          |      |      |            |   |       |          |       |   |          |       |       |   |       |      |       |   |       |      |       | 
|---------------------------------------------------------------------------------------- | ----------------------- | ----------------------------------------------- | ----- | ----- | -------- | - | ---------- | -------- | --- | - | -------- | ---------- | ----- | -------- | ---- | ---- | ---------- | - | ----- | -------- | ----- | - | -------- | ----- | ----- | - | ----- | ---- | ----- | - | ----- | ---- | ----- | 
|                                                                                         |                         | 2003 Quarters(1)(2)                             |      
|                                                                                         |                         |                                                 |      
|                                                                                         |                         | 1st(4)                                          |       |       | 2nd      |   |            | 3rd      |     |   | 4th(5)   |           
|                                                                                         |                         |                                                 |       |       |          |   |            |          |     |   |          |           
|                                                                                         |                         | As                                              |       |       |          |   | As         |          |     |   |          | As         |       |          |      |      | As         |   |       |         
|                                                                                         |                         | Previously                                      |       |       |          |   | Previously |          |     |   |          | Previously |       |          |      |      | Previously |   |       |         
|                                                                                         |                         | Reported                                        |       |       | Restated |   |            | Reported |     |   | Restated |            |       | Reported |      |      | Restated   |   |       | Reported |       |   | Restated |      
|                                                                                         |                         |                                                 |       |       |          |   |            |          |     |   |          |            |       |          |      |      |            |   |       |          |       |   |          |      
|                                                                                         |                         | (Dollars in millions, except per share amounts) |      
|Average number of shares of common stocks
    outstanding  basic (in millions)          |                         |                                                 |       |       |          |   |            |          |     |   |          |            |       |          |      |      |            |   |       |          |       |   |          |       |       |   |       |      |       |   |       |     
|                                                                                         |                         | $12/3 par value                                 |       |       | 561      |   |            |          | 561 |   |          |            | 561   |          |      |      | 561        |   |       |          | 561   |   |          |       | 561   |   |       |      | 561   |   |       |      | 561   | 
|                                                                                         |                         | Class H                                         |       |       | 990      |   |            |          | 990 |   |          |            | 1,108 |          |      |      | 1,108      |   |       |          | 1,108 |   |          |       | 1,108 |   |       |      | 1,109 |   |       |      | 1,109 | 
|Earnings (loss) per share attributable to common stocks assuming
    dilution            |                         |                                                 |       |       |          |   |            |          |     |   |          |            |       |          |      |      |            |   |       |          |       |   |          |       |       |   |       |      |       |   |       |     
|$12/3 par value                                                                          |                         |                                                 |       |       |          |   |            |          |     |   |          |            |       |          |      |      |            |   |       |          |       |   |          |       |       |   |       |      |       |   |       |     
|                                                                                         | Continuing operations   |                                                 | $     | 2.74  |          |   | $          | 2.87     |     |   | $        | 1.57       |       |          | $    | 1.64 |            |   | $     | 0.80     |       |   | $        | 0.67  |       |   | $     |     |       |   | $     |     |      
|                                                                                         | Discontinued operations |                                                 |       | (0.03 | )        |   |            | (0.03    | )   |   |          | 0.01       |       |          |      | 0.01 |            |   |       | (0.01    | )     |   |          | (0.01 | )     |   |       | 2.13 |       |   |       | 2.13 |      
|                                                                                         |                         |                                                 |       |       |          |   |            |          |     |   |          |            |       |          |      |      |            |   |       |          |       |   |          |      
|Earnings per share attributable to
    $12/3 par value                                   |                         | $                                               | 2.71  |       |          | $ | 2.84       |          |     | $ | 1.58     |            |       | $        | 1.65 |      |            | $ | 0.79  |          |       | $ | 0.66     |       |       | $ | 2.13  |      |       | $ | 2.13  |     
|                                                                                         |                         |                                                 |       |       |          |   |            |          |     |   |          |            |       |          |      |      |            |   |       |          |       |   |          |      
|Earnings (losses) per share from discontinued operations
    attributable to Class H     |                         | $                                               | (0.04 | )     |          | $ | (0.04      | )        |     | $ | 0.02     |            |       | $        | 0.02 |      |            | $ | (0.02 | )        |       | $ | (0.02    | )     |       | $ | (0.18 | )    |       | $ | (0.18 | )   
|Average number of shares of common stocks
    outstanding  diluted (in millions)        |                         |                                                 |       |       |          |   |            |          |     |   |          |            |       |          |      |      |            |   |       |          |       |   |          |       |       |   |       |      |       |   |       |     
|                                                                                         |                         | $12/3 par value                                 |       |       | 561      |   |            |          | 561 |   |          |            | 561   |          |      |      | 561        |   |       |          | 561   |   |          |       | 561   |   |       |      | 571   |   |       |      | 571   | 
|                                                                                         |                         | Class H                                         |       |       | 990      |   |            |          | 990 |   |          |            | 1,111 |          |      |      | 1,111      |   |       |          | 1,108 |   |          |       | 1,108 |   |       |      | 1,109 |   |       |      | 1,109 | 
|Net income (loss) from continuing operations by reportable
    operating segment/ region |                         |                                                 |       |       |          |   |            |          |     |   |          |            |       |          |      |      |            |   |       |          |       |   |          |       |       |   |       |      |       |   |       |     
|Automotive and Other Operations                                                          |                         |                                                 |       |       |          |   |            |          |     |   |          |            |       |          |      |      |            |   |       |          |       |   |          |       |       |   |       |      |       |   |       |     
|                                                                                         | GMNA                    |                                                 | $     | 548   |          |   | $          | 571      |     |   | $        | 83         |       |          | $    | 154  |            |   | $     | 128      |       |   | $        | 150   |       |   | $     | 52   |       |   | $     | 4    |      
|                                                                                         | GME                     |                                                 |       | (65   | )        |   |            | (62      | )   |   |          | (3         | )     |          |      | (2   | )          |   |       | (152     | )     |   |          | (158  | )     |   |       | (284 | )     |   |       | (244 | )    
|                                                                                         | GMLAAM                  |                                                 |       | (12   | )        |   |            | (12      | )   |   |          | (103       | )     |          |      | (103 | )          |   |       | (104     | )     |   |          | (104  | )     |   |       | (112 | )     |   |       | (110 | )    
|                                                                                         | GMAP                    |                                                 |       | 75    |          |   |            | 75       |     |   |          | 163        |       |          |      | 163  |            |   |       | 162      |       |   |          | 162   |       |   |       | 177  |       |   |       | 176  |      
|                                                                                         | Other Operations        |                                                 |       | 309   |          |   |            | 336      |     |   |          | (104       | )     |          |      | (115 | )          |   |       | (212     | )     |   |          | (227  | )     |   |       | (511 | )     |   |       | (518 | )    
|                                                                                         |                         |                                                 |       |       |          |   |            |          |     |   |          |            |       |          |      |      |            |   |       |          |       |   |          |      
|Net income (loss) from continuing operations 
    Automotive and Other Operations       |                         |                                                 | 855   |       |          |   | 908        |          |     |   | 36       |            |       |          | 97   |      |            |   | (178  | )        |       |   | (177     | )     |       |   | (678  | )    |       |   | (692  | )   
|Financing and Insurance Operations Net income 
    Financing and Insurance Operations   |                         |                                                 | 682   |       |          |   | 699        |          |     |   | 843      |            |       |          | 823  |      |            |   | 626   |          |       |   | 553      |       |       |   | 676   |      |       |   | 688   |     
|                                                                                         |                         |                                                 |       |       |          |   |            |          |     |   |          |            |       |          |      |      |            |   |       |          |       |   |          |      
|Net income from continuing operations                                                    |                         | $                                               | 1,537 |       |          | $ | 1,607      |          |     | $ | 879      |            |       | $        | 920  |      |            | $ | 448   |          |       | $ | 376      |       |       | $ | (2    | )    |       | $ | (4    | )   
|                                                                                         |                         |                                                 |       |       |          |   |            |          |     |   |          |            |       |          |      |      |            |   |       |          |       |   |          |      

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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


SUPPLEMENTARY INFORMATION


Selected Quarterly Data (Unaudited) (continued)


|                                                               |  |                       |         |   |                |   |               |                    |  |   |          |               |  |          |         |   |          |   |         |   |  |   |         |  
|-------------------------------------------------------------- |  | --------------------- | ------- | - | -------------- | - | ------------- | ------------------ |  | - | -------- | ------------- |  | -------- | ------- | - | -------- | - | ------- | - |  | - | ------- | -
|                                                               |  | 2003 Year-To-Date(3)  |        
|                                                               |  |                       |        
|                                                               |  | 3 Months Ended        |         |   | 6 Months Ended |   |               | 9 Months Ended     | 
|                                                               |  | March 31, 2003        |         |   | June 30, 2003  |   |               | September 30, 2003 | 
|                                                               |  |                       |         |   |                |   |               |                    | 
|                                                               |  | As Previously         |         |   |                |   | As Previously |                    |  |   |          | As Previously |  |          |        
|                                                               |  | Reported              |         |   | Restated       |   |               | Reported           |  |   | Restated |               |  | Reported |         |   | Restated |  
|                                                               |  |                       |         |   |                |   |               |                    |  |   |          |               |  |          |         |   |          |  
|                                                               |  | (Dollars in millions) |        
|Consolidated                                                   |  |                       |         |   |                |   |               |                    |  |   |          |               |  |          |         |   |          |   |         |   |  |   |         |  
|Net cash provided by (used in) continuing operating activities |  | $                     | 8,938   |   |                |   | 4,370         |                    |  | $ | 10,648   |               |  |          | 2,462   |   |          | $ | 7,287   |   |  |   | 2,371   |  
|Net cash provided by (used in) continuing investing activities |  |                       | (12,510 | ) |                |   | (7,942        | )                  |  |   | (28,214  | )             |  |          | (20,028 | ) |          |   | (39,147 | ) |  |   | (34,231 | )
|Net cash provided by (used in) continuing financing activities |  |                       | 7,323   |   |                |   | 7,323         |                    |  |   | 24,634   |               |  |          | 24,634  |   |          |   | 50,218  |   |  |   | 50,218  |  
|Effect of exchange rate changes on cash and cash equivalents   |  |                       | (51     | ) |                |   | (51           | )                  |  |   | 436      |               |  |          | 436     |   |          |   | 506     |   |  |   | 506     |  
|                                                               |  |                       |         |   |                |   |               |                    |  |   |          |               |  |          |         |   |          |  
|Net increase (decrease) in cash and cash equivalents           |  | $                     | 3,700   |   |                | $ | 3,700         |                    |  | $ | 7,504    |               |  | $        | 7,504   |   |          | $ | 18,864  |   |  | $ | 18,864  |  
|                                                               |  |                       |         |   |                |   |               |                    |  |   |          |               |  |          |         |   |          |  
|Automotive and Other Operations                                |  |                       |         |   |                |   |               |                    |  |   |          |               |  |          |         |   |          |   |         |   |  |   |         |  
|Net cash provided by (used in) continuing operating activities |  | $                     | 4,447   |   |                | $ | 4,447         |                    |  | $ | 6,844    |               |  | $        | 6,844   |   |          | $ | 242     |   |  | $ | 242     |  
|Net cash provided by (used in) continuing investing activities |  |                       | (1,694  | ) |                |   | (1,694        | )                  |  |   | (4,517   | )             |  |          | (4,517  | ) |          |   | (9,018  | ) |  |   | (9,018  | )
|Net cash provided by (used in) continuing financing activities |  |                       | (297    | ) |                |   | (297          | )                  |  |   | 496      |               |  |          | 496     |   |          |   | 13,455  |   |  |   | 13,455  |  
|Effect of exchange rate changes on cash and cash equivalents   |  |                       | 1       |   |                |   | 1             |                    |  |   | 373      |               |  |          | 373     |   |          |   | 373     |   |  |   | 373     |  
|Net transactions with Financing and Insurance                  |  |                       | (604    | ) |                |   | (604          | )                  |  |   | 39       |               |  |          | 39      |   |          |   | 646     |   |  |   | 646     |  
|                                                               |  |                       |         |   |                |   |               |                    |  |   |          |               |  |          |         |   |          |  
|Net increase (decrease) in cash and cash equivalents           |  | $                     | 1,853   |   |                | $ | 1,853         |                    |  | $ | 3,235    |               |  | $        | 3,235   |   |          | $ | 5,698   |   |  | $ | 5,698   |  
|                                                               |  |                       |         |   |                |   |               |                    |  |   |          |               |  |          |         |   |          |  
|Financing and Insurance Operations                             |  |                       |         |   |                |   |               |                    |  |   |          |               |  |          |         |   |          |   |         |   |  |   |         |  
|Net cash provided by (used in) continuing operating activities |  | $                     | 4,491   |   |                |   | (77           | )                  |  | $ | 3,804    |               |  |          | (4,382  | ) |          | $ | 7,045   |   |  |   | 2,129   |  
|Net cash provided by (used in) continuing investing activities |  |                       | (10,816 | ) |                |   | (6,248        | )                  |  |   | (23,697  | )             |  |          | (15,511 | ) |          |   | (30,129 | ) |  |   | (25,213 | )
|Net cash provided by (used in) continuing financing activities |  |                       | 7,620   |   |                |   | 7,620         |                    |  |   | 24,138   |               |  |          | 24,138  |   |          |   | 36,763  |   |  |   | 36,763  |  
|Effect of exchange rate changes on cash and cash equivalents   |  |                       | (52     | ) |                |   | (52           | )                  |  |   | 63       |               |  |          | 63      |   |          |   | 133     |   |  |   | 133     |  
|Net transactions with Automotive and Other                     |  |                       | 604     |   |                |   | 604           |                    |  |   | (39      | )             |  |          | (39     | ) |          |   | (646    | ) |  |   | (646    | )
|                                                               |  |                       |         |   |                |   |               |                    |  |   |          |               |  |          |         |   |          |  
|Net increase (decrease) in cash and cash equivalents           |  | $                     | 1,847   |   |                | $ | 1,847         |                    |  | $ | 4,269    |               |  | $        | 4,269   |   |          | $ | 13,166  |   |  | $ | 13,166  |  
|                                                               |  |                       |         |   |                |   |               |                    |  |   |          |               |  |          |         |   |          |  






|    |                                                                                                                                                                                                                                                                                                                                              
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | As discussed in Note 1 to the Consolidated Financial
    Statements, GM restated its financial statements to correct the
    accounting for credits and other lump sum payments from
    suppliers. Additionally, GM has subsequently chosen to restate
    its financial statements for errors it has identified in periods
    presented in

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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


SUPPLEMENTARY INFORMATION


Selected Quarterly Data (Unaudited) (continued)




| |                                                                                                                                                           
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------
| | this filing. The effects of the restatement adjustments on
    GMs originally reported quarterly results of operations
    for 2003 are summarized below.

|                                         |                                       |                       |       |     |          |   |     |     |   |   |     |     |   |      |     |     |   |   |       |     |  
|---------------------------------------- | ------------------------------------- | --------------------- | ----- | --- | -------- | - | --- | --- | - | - | --- | --- | - | ---- | --- | --- | - | - | ----- | --- | -
|                                         |                                       | 2003 Quarters         |       |     | 2003     |  
|                                         |                                       |                       |       |     | Calendar |  
|                                         |                                       | 1st                   |       |     | 2nd      |   |     | 3rd |   |   | 4th |     |   | Year |    
|                                         |                                       |                       |       |     |          |   |     |     |   |   |     |     |   |      |    
|                                         |                                       | (Dollars in millions) |      
|Income (loss) from continuing operations |                                       |                       |       |     |          |   |     |     |   |   |     |     |   |      |     |     |   |   |       |    
|As originally reported:                  |                                       | $                     | 1,537 |     |          | $ | 879 |     |   | $ | 448 |     |   | $    | (2  | )   |   | $ | 2,862 |    
|Pre-tax adjustments for:                 |                                       |                       |       |     |          |   |     |     |   |   |     |     |   |      |     |     |   |   |       |    
|                                         | Supplier credits(a)                   |                       |       | (2  | )        |   |     | 6   |   |   |     | 2   |   |      |     | 1   |   |   |       | 7   |  
|                                         | Benefit plans economic assumptions(b) |                       |       | (13 | )        |   |     | (13 | ) |   |     | (13 | ) |      |     | (12 | ) |   |       | (51 | )
|                                         |                                       |                       |       |     |          |   |     |     |   |   |     |     |   |      |    
|Total                                    |                                       |                       | (15   | )   |          |   | (7  | )   |   |   | (11 | )   |   |      | (11 | )   |   |   | (44   | )  
|                                         | Related tax effects                   |                       |       | 6   |          |   |     | 3   |   |   |     | 5   |   |      |     | 3   |   |   |       | 17  |  
|                                         |                                       |                       |       |     |          |   |     |     |   |   |     |     |   |      |    
|Total of above adjustments net of tax    |                                       |                       | (9    | )   |          |   | (4  | )   |   |   | (6  | )   |   |      | (8  | )   |   |   | (27   | )  
|Other, net-of-tax(c)                     |                                       |                       | 79    |     |          |   | 45  |     |   |   | (66 | )   |   |      | 6   |     |   |   | 64    |    
|                                         |                                       |                       |       |     |          |   |     |     |   |   |     |     |   |      |    
|As restated                              |                                       | $                     | 1,607 |     |          | $ | 920 |     |   | $ | 376 |     |   | $    | (4  | )   |   | $ | 2,899 |    
|                                         |                                       |                       |       |     |          |   |     |     |   |   |     |     |   |      |    






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | GM erroneously recorded as a reduction to cost of sales certain
    payments and credits received from suppliers prior to the
    completion of the earnings process. GM has concluded that the
    payments and credits received were associated with agreements
    for the award of future services or products or other rights and
    privileges and should be recognized when subsequently earned.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   
|(b) | GM erroneously calculated the anticipated effect of cost
    reduction initiatives on its expected health-care cost trend
    rate for 2002 and, as a result, understated that rate. These
    adjustments reflect the subsequent increase in accrued expense
    related to the 2001 calculation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   
|(c) | For all periods covered by this filing, GM has recorded other
    accounting adjustments it has identified that were not recorded
    in the proper period. These
    out-of-period
    adjustments were not considered material to the financial
    statements as originally reported, however, as part of the
    restatement, they are being recognized in the period in which
    the underlying transactions occurred. The impact of these
    adjustments,
    net-of-tax, was
    $79 million, $45 million, $(66) million, and
    $6 million for each quarter of 2003, respectively. The
    significant
    out-of-period
    adjustments were related to the following matters:
    (1) errors in accruing holiday pay; (2) errors in
    accounting for certain mortgage securitizations; (3) errors
    in calculations of disposal loss reserves; and
    (4) reconciliation of prior year tax provisions to actual
    tax returns. Of the $79 million adjustment in the first
    quarter, $64 million relates to errors in accruing holiday
    pay. Of the $45 million adjustment in the second quarter,
    $34 million relates to errors in accruing holiday pay. Of
    the $(66) million adjustment in the third quarter,
    $(38) million relates to errors in accounting for certain
    mortgage securitizations. Of the $6 million adjustment in
    the fourth quarter, $(86) million relates to errors in
    accruing holiday pay, $35 million relates to errors in
    calculations of disposal loss reserves, and $27 million
    relates to tax matters.
|   
|(2) | Previously reported quarters have been restated to reflect the
    results of Hughes as a discontinued operation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   
|(3) | As discussed in Note 1 to the Consolidated Financial
    Statements, GM restated its statements of cash flows to correct
    for the erroneous classification of cash flows from certain
    mortgage loan transactions within our financing and insurance
    operations. Certain mortgage loan originations and purchases
    were not appropriately classified as either operating cash flows
    or investing cash flows consistent with the original                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                

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SUPPLEMENTARY INFORMATION


Selected Quarterly Data (Unaudited) (concluded)




| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | designation as loans held for sale or loans held for investment.
    In addition, proceeds from sales and repayments related to
    certain mortgage loans, which initially were classified as
    mortgage loans held for investment and subsequently transferred
    to mortgage loans held for sale, were reported as operating cash
    flows instead of investing cash flows in our consolidated
    statements of cash flows. Finally, certain non-cash proceeds and
    transfers were not appropriately presented in the statements of
    cash flows. The effects of the restatement adjustments on
    GMs originally reported interim statements of cash flows
    for 2003 are summarized below.

|                                                    |                             |                       |         |        |                |   |         |                    |   |   |         |        |  
|--------------------------------------------------- | --------------------------- | --------------------- | ------- | ------ | -------------- | - | ------- | ------------------ | - | - | ------- | ------ | -
|                                                    |                             | 2003 Year-To-Date     |        
|                                                    |                             |                       |        
|                                                    |                             | 3 Months Ended        |         |        | 6 Months Ended |   |         | 9 Months Ended     |  
|                                                    |                             | March 31, 2003        |         |        | June 30, 2003  |   |         | September 30, 2003 |  
|                                                    |                             |                       |         |        |                |   |         |                    |  
|                                                    |                             | (Dollars in millions) |        
|Financing and Insurance Operations                  |                             |                       |         |        |                |   |         |                    |   |   |         |       
|Net cash provided by (used in) operating activities |                             |                       |         |        |                |   |         |                    |   |   |         |       
|As originally reported                              |                             | $                     | 4,491   |        |                | $ | 3,804   |                    |   | $ | 7,045   |       
|Adjustments for:                                    |                             |                       |         |        |                |   |         |                    |   |   |         |       
|                                                    | Mortgage related activities |                       |         | (4,568 | )              |   |         | (8,186             | ) |   |         | (4,916 | )
|                                                    |                             |                       |         |        |                |   |         |                    |  
|As restated                                         |                             | $                     | (77     | )      |                | $ | (4,382  | )                  |   | $ | 2,129   |       
|                                                    |                             |                       |         |        |                |   |         |                    |  
|Net cash used in investing activities               |                             |                       |         |        |                |   |         |                    |   |   |         |       
|As originally reported                              |                             | $                     | (10,816 | )      |                | $ | (23,697 | )                  |   | $ | (30,129 | )     
|Adjustments for:                                    |                             |                       |         |        |                |   |         |                    |   |   |         |       
|                                                    | Mortgage related activities |                       |         | 4,568  |                |   |         | 8,186              |   |   |         | 4,916  |  
|                                                    |                             |                       |         |        |                |   |         |                    |  
|As restated                                         |                             | $                     | (6,248  | )      |                | $ | (15,511 | )                  |   | $ | (25,213 | )     
|                                                    |                             |                       |         |        |                |   |         |                    |  



|    |                                                                                                                                                                                                                              
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(4) | First quarter 2003 results include a $505 million after-tax
    gain from the sale of GMs light armored vehicle business
    (GM Defense) to General Dynamics Corporation. Net proceeds were
    approximately $1.1 billion.
|   
|(5) | Fourth quarter 2003 results include the following:                                                                                                                                                                           



| |   |                                                                                                                                                                                
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | A $725 million after-tax charge for lump-sum payments and
    vehicle discount vouchers for retirees as provided by the
    October 2003 contract with the United Auto Workers;
|
| |  | A $103 million after-tax favorable adjustment related
    primarily to previously established reserves for idled workers
    at the Janesville, Wisconsin plant; and           
|
| |  | A $218 million after-tax charge for an initiative
    implemented to improve competitiveness of GMs automotive
    operations in Europe.                                      

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|         |                        
|-------- | -----------------------
|ITEM 9A. | Controls and Procedures

II-23 II-27.


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PART IV


GENERAL MOTORS CORPORATION AND SUBSIDIARIES









|         |                                          
|-------- | -----------------------------------------
|ITEM 15. | Exhibits and Financial Statement Schedule

|       |  |                                                                                                                                                              
|------ |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |  |                                                                                                                                                              
|(12)   |  | Computation of Ratios of Earnings to Fixed Charges for the Years
    Ended December 31, 2004, 2003, and 2002                                                 
|(23)   |  | Consent of Independent Auditors                                                                                                                              
|(31.1) |  | Section 302 Certification of the Chief Executive Officer                                                                                                     
|(31.2) |  | Section 302 Certification of the Chief Financial Officer                                                                                                     
|(32.1) |  | Certification of the Chief Executive Officer Pursuant to
    18 U.S.C. Section 1350, As Adopted Pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002
|(32.2) |  | Certification of the Chief Financial Officer Pursuant to
    18 U.S.C. Section 1350, As Adopted Pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002

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GENERAL MOTORS CORPORATION AND SUBSIDIARIES







SIGNATURES






| |                                     
| | ------------------------------------
| | GENERAL MOTORS CORPORATION          
| | (Registrant)                        
|
| | By: /s/ G. RICHARD WAGONER, JR.     
| |                                     
| | G. Richard Wagoner, Jr.             
| | Chairman and Chief Executive Officer





|                                                     |  |                                           |  | 
|---------------------------------------------------- |  | ----------------------------------------- |  | 
|Signature                                            |  | Title                                    
|                                                     |  |                                          
|                                                    
|/s/ G. RICHARD WAGONER, JR.(G. Richard Wagoner, Jr.) |  | Chairman and Chief Executive Officer     
|                                                    
|/s/ FREDERICK A. HENDERSON(Frederick A. Henderson)   |  | Vice Chairman and Chief Financial Officer
|                                                    
|/s/ WALTER G. BORST(Walter G. Borst)                 |  | Treasurer                                
|                                                    
|/s/ PAUL W. SCHMIDT(Paul W. Schmidt)                 |  | Controller                               
|                                                    
|/s/ PETER R. BIBLE(Peter R. Bible)                   |  | Chief Accounting Officer                 

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|                                           |  |          |  |  |  | 
|------------------------------------------ |  | -------- |  |  |  | 
|Signature                                  |  | Title    |  | 
|                                           |  |          |  | 
|                                          
|/s/ PERCY BARNEVIK(Percy Barnevik)         |  | Director |  | 
|                                          
|/s/ ERSKINE BOWLES(Erskine Bowles)         |  | Director |  | 
|                                          
|/s/ JOHN H. BRYAN(John H. Bryan)           |  | Director |  | 
|                                          
|/s/ ARMANDO CODINA(Armando Codina)         |  | Director |  | 
|                                          
|/s/ GEORGE M.C. FISHER(George M.C. Fisher) |  | Director |  | 
|                                          
|/s/ KAREN KATEN(Karen Katen)               |  | Director |  | 
|                                          
|/s/ KENT KRESA(Kent Kresa)                 |  | Director |  | 
|                                          
|/s/ ELLEN J. KULLMAN(Ellen J. Kullman)     |  | Director |  | 
|                                          
|/s/ PHILIP A. LASKAWY(Philip A. Laskawy)   |  | Director |  | 
|                                          
|/s/ ECKHARD PFEIFFER(Eckhard Pfeiffer)     |  | Director |  | 
|                                          
|/s/ JEROME B. YORK(Jerome B. York)         |  | Director |  | 

IV-3