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UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, DC 20549-1004


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, 2005                                                 
|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:


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

Note: 2 3


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




|                                                                                                                                                   |  |                                           
|-------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------
|                                                                                                                                                   |  | 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 6, 2006 |  | Part III, Items 10 through 14             
|General Motors Acceptance Corporation Annual Report on Form
    10-K
    for the year ended December 31, 2005                                      |  | Part I, Item 1; Part II, Items 6, 7, and 8









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##### 










GENERAL MOTORS CORPORATION


INDEX


|                                                                |  |                                                                                           |      |      |        | 
|--------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------- | ---- | ---- | ------ | 
|                                                                |  |                                                                                           |      | Page
|                                                                |  |                                                                                           |      |     
|PART I                                                         
|Item 1.                                                         |  | Business                                                                                  |      |      | I-1    | 
|Item 1A.                                                        |  | Risk Factors                                                                              |      |      | I-12   | 
|Item 1B.                                                        |  | Unresolved Staff Comments                                                                 |      |      | I-27   | 
|Item 2.                                                         |  | Properties                                                                                |      |      | I-27   | 
|Item 3.                                                         |  | Legal Proceedings                                                                         |      |      | I-27   | 
|Item 4.                                                         |  | Submission of Matters to a Vote of Security
    Holders                                   |      |      | I-34   | 
|Item 4A.                                                        |  | Executive Officers of the Registrant                                                      |      |      | I-35   | 
|                                                               
|PART II                                                        
|Item 5.                                                         |  | Market for the Registrants Common
    Equity and Related Stockholder Matters             |      |      | II-1   | 
|Item 6.                                                         |  | Selected Financial Data                                                                   |      |      | II-3   | 
|Item 7.                                                         |  | Managements Discussion and Analysis
    of Financial Condition and Results of Operations |      |      | II-5   | 
|Item 7A.                                                        |  | Quantitative and Qualitative Disclosures
    About Market Risk                            |      |      | II-47  | 
|Item 8.                                                         |  | Financial Statements and Supplementary
    Data                                           |      |      | II-53  | 
|                                                                |  | Consolidated Statements of Income                                                         |      |      | II-53  | 
|                                                                |  | Consolidated Balance Sheets                                                               |      |      | II-55  | 
|                                                                |  | Consolidated Statements of Cash Flows                                                     |      |      | II-57  | 
|                                                                |  | Consolidated Statements of
    Stockholders Equity                                       |      |      | II-59  | 
|                                                                |  | Notes to Consolidated Financial
    Statements                                            |      |      | II-60  | 
|Item 9.                                                         |  | Changes in and Disagreements with
    Accountants on Accounting and Financial Disclosure  |      |      | II-132 | 
|Item 9A.                                                        |  | Controls and Procedures                                                                   |      |      | II-132 | 
|Item 9B.                                                        |  | Other Information                                                                         |      |      | II-133 | 
|                                                               
|PART III                                                       
|Item 10.                                                        |  | Code of Ethics for Senior Executives                                                      |      |      | III-1  | 
|Item 11.                                                        |  | Executive Compensation                                                                    |      |      | III-1  | 
|Item 12.                                                        |  | Security Ownership of Certain Beneficial
    Owners and Management                        |      |      | III-1  | 
|Item 13.                                                        |  | Certain Relationships and Related
    Transactions                                        |      |      | III-1  | 
|Item 14.                                                        |  | Principal Accountant Fees and Services                                                    |      |      | III-1  | 
|                                                               
|PART IV                                                        
|Item 15.                                                        |  | Exhibits and Financial Statement
    Schedule                                             |      |      | IV-1   | 
|Signatures                                                      |  |                                                                                           | IV-4 |     
|Bylaws of General Motors Corporation                           
|Agreement, dated as of October 22, 2001                        
|General Motors Company Vehicle Operations                      
|Compensation Statement for G.R. Wagoner, Jr.                   
|Compensation Statement for John M. Devine                      
|Compensation Statement for Robert A. Lutz                      
|Compensation Statement for G.L. Cowger                         
|Compensation Statement for Thomas A. Gottschalk                
|GM Supplemental Executive Retirement Plan                      
|General Motors Benefit Equalization Plan for Salaried Employees
|Description of Executive and Board Compensation Reductions     
|Computation of Ratios of Earnings to Fixed Charges             
|General Motors Acceptance Corp Annual Report                   
|Subsidiaries of the Registrant                                 
|Consent of Independent Registered Public Accounting Firm       
|Section 302 Certification of Chief Executive Officer           
|Section 302 Certification of Chief Financial Officer           
|Section 906 Certification of Chief Executive Officer           
|Section 906 Certification of Chief Financial Officer           





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PART I


GENERAL MOTORS CORPORATION AND SUBSIDIARIES


THE CORPORATION









|        |         
|------- | --------
|Item 1. | Business

General






|                                                                            |  |                      
|--------------------------------------------------------------------------- |  | ---------------------
|Item                                                                        |  | Page(s)              
|                                                                            |  |                      
|Production Volumes                                                          |  | II-12 through II-17  
|Employment and Payrolls                                                     |  | II-39                
|Note 26 to the GM Consolidated Financial Statements
    (Segment Reporting) |  | II-120 through II-123





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





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



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



|            |  |            |  |         
|----------- |  | ---------- |  | --------
| Chevrolet |  |  Buick    |  |  Saab  
| Pontiac   |  |  Cadillac |  |  Hummer
| GMC       |  |  Saturn   |  |         



|           |  |             |  |           
|---------- |  | ----------- |  | ----------
| Opel     |  |  Saab      |  |  GMC     
| Vauxhall |  |  Buick     |  |  Cadillac
| Holden   |  |  Chevrolet |  |  Daewoo  

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|          |  |            |  |            
|--------- |  | ---------- |  | -----------
| Pontiac |  |  Wuling   |  |  Saab     
| Suzuki  |  |  Daewoo   |  |  Chevrolet
| Isuzu   |  |  Holden   |  |            
| Buick   |  |  Cadillac |  |            



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

10-K, 10-K




| |                 
| | ----------------
| | Hughes Split-Off



Vehicle Unit Sales




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|                          |                     |                          |        |        |       |  |       |          |        |  |          |       |       |        |        |        |          |  |       |          |       |  |       |       |       |          |        |        |       |  |       |       |       |  |       |       |       | 
|------------------------- | ------------------- | ------------------------ | ------ | ------ | ----- |  | ----- | -------- | ------ |  | -------- | ----- | ----- | ------ | ------ | ------ | -------- |  | ----- | -------- | ----- |  | ----- | ----- | ----- | -------- | ------ | ------ | ----- |  | ----- | ----- | ----- |  | ----- | ----- | ----- | 
|                          |                     | Vehicle Unit Sales(1)    |       
|                          |                     | Years Ended December 31, |       
|                          |                     |                          |       
|                          |                     | 2005                     |        |        | 2004  |  |       | 2003     |       
|                          |                     |                          |        |        |       |  |       |          |       
|                          |                     |                          |        | GM as  |       |  |       |          | GM as  |  |          |       |       | GM as  |       
|                          |                     |                          |        | a % of |       |  |       |          | a % of |  |          |       |       | a % of |       
|                          |                     | Industry                 |        |        | GM    |  |       | Industry |        |  | Industry |       |       | GM     |        |        | Industry |  |       | Industry |       |  | GM    |       |       | Industry |       
|                          |                     |                          |        |        |       |  |       |          |        |  |          |       |       |        |        |        |          |  |       |          |       |  |       |       |       |          |       
|                          |                     | (Units in thousands)     |       
|United States             |                     |                          |        |        |       |  |       |          |        |  |          |       |       |        |        |        |          |  |       |          |       |  |       |       |       |          |        |        |       |  |       |       |       |  |       |      
|                          | Cars                |                          |        |        |       |  |       |          |        |  |          |       |       |        |        |        |          |  |       |          |       |  |       |       |       |          |        |        |       |  |       |       |       |  |       |       |      
|                          |                     | Small                    |        |        | 2,370 |  |       |          | 490    |  |          |       | 20.7% |        |        |        | 2,256    |  |       |          | 456   |  |       |       | 20.2% |          |        |        | 2,339 |  |       |       | 487   |  |       |       | 20.8% | 
|                          |                     | Mid-size                 |        |        | 3,740 |  |       |          | 1,007  |  |          |       | 26.9% |        |        |        | 3,714    |  |       |          | 1,190 |  |       |       | 32.0% |          |        |        | 3,681 |  |       |       | 1,240 |  |       |       | 33.7% | 
|                          |                     | Sport                    |        |        | 424   |  |       |          | 58     |  |          |       | 13.6% |        |        |        | 403      |  |       |          | 59    |  |       |       | 14.6% |          |        |        | 420   |  |       |       | 32    |  |       |       | 7.5%  | 
|                          |                     | Luxury                   |        |        | 1,208 |  |       |          | 197    |  |          |       | 16.3% |        |        |        | 1,190    |  |       |          | 180   |  |       |       | 15.2% |          |        |        | 1,197 |  |       |       | 202   |  |       |       | 16.9% | 
|                          |                     |                          |        |        |       |  |       |          |        |  |          |       |       |        |        |        |          |  |       |          |       |  |       |       |       |          |       
|                          | Total cars          |                          |        | 7,742  |       |  |       | 1,752    |        |  |          | 22.6% |       |        |        | 7,563  |          |  |       | 1,885    |       |  |       | 24.9% |       |          |        | 7,637  |       |  |       | 1,961 |       |  |       | 25.7% |      
|                          | Trucks              |                          |        |        |       |  |       |          |        |  |          |       |       |        |        |        |          |  |       |          |       |  |       |       |       |          |        |        |       |  |       |       |       |  |       |       |      
|                          |                     | Pickups                  |        |        | 3,201 |  |       |          | 1,163  |  |          |       | 36.3% |        |        |        | 3,198    |  |       |          | 1,133 |  |       |       | 35.4% |          |        |        | 3,115 |  |       |       | 1,151 |  |       |       | 37.0% | 
|                          |                     | Vans                     |        |        | 1,468 |  |       |          | 328    |  |          |       | 22.4% |        |        |        | 1,456    |  |       |          | 313   |  |       |       | 21.5% |          |        |        | 1,398 |  |       |       | 339   |  |       |       | 24.3% | 
|                          |                     | Utilities                |        |        | 4,585 |  |       |          | 1,212  |  |          |       | 26.4% |        |        |        | 4,693    |  |       |          | 1,324 |  |       |       | 28.2% |          |        |        | 4,523 |  |       |       | 1,264 |  |       |       | 27.9% | 
|                          |                     | Medium Duty              |        |        | 459   |  |       |          | 63     |  |          |       | 13.8% |        |        |        | 392      |  |       |          | 52    |  |       |       | 13.2% |          |        |        | 297   |  |       |       | 42    |  |       |       | 14.0% | 
|                          |                     |                          |        |        |       |  |       |          |        |  |          |       |       |        |        |        |          |  |       |          |       |  |       |       |       |          |       
|                          | Total trucks        |                          |        | 9,713  |       |  |       | 2,766    |        |  |          | 28.5% |       |        |        | 9,739  |          |  |       | 2,822    |       |  |       | 29.0% |       |          |        | 9,333  |       |  |       | 2,796 |       |  |       | 30.0% |      
|                          |                     |                          |        |        |       |  |       |          |        |  |          |       |       |        |        |        |          |  |       |          |       |  |       |       |       |          |       
|                          | Total United States |                          |        | 17,455 |       |  |       | 4,518    |        |  |          | 25.9% |       |        |        | 17,302 |          |  |       | 4,707    |       |  |       | 27.2% |       |          |        | 16,970 |       |  |       | 4,757 |       |  |       | 28.0% |      
|Canada, Mexico, and Other |                     |                          | 3,087  |        |       |  | 728   |          |        |  | 23.6%    |       |       |        | 2,980  |        |          |  | 705   |          |       |  | 23.6% |       |       |          | 2,872  |        |       |  | 683   |       |       |  | 23.8% |      
|                          |                     |                          |        |        |       |  |       |          |        |  |          |       |       |        |        |        |          |  |       |          |       |  |       |       |       |          |       
|                          | Total GMNA          |                          |        | 20,542 |       |  |       | 5,246    |        |  |          | 25.5% |       |        |        | 20,282 |          |  |       | 5,412    |       |  |       | 26.7% |       |          |        | 19,842 |       |  |       | 5,440 |       |  |       | 27.4% |      
|                          | GME                 |                          |        | 20,970 |       |  |       | 1,982    |        |  |          | 9.5%  |       |        |        | 20,763 |          |  |       | 1,956    |       |  |       | 9.4%  |       |          |        | 19,588 |       |  |       | 1,819 |       |  |       | 9.3%  |      
|                          | GMLAAM              |                          |        | 4,980  |       |  |       | 881      |        |  |          | 17.7% |       |        |        | 4,225  |          |  |       | 738      |       |  |       | 17.5% |       |          |        | 3,626  |       |  |       | 584   |       |  |       | 16.1% |      
|                          | GMAP                |                          |        | 18,240 |       |  |       | 1,064    |        |  |          | 5.8%  |       |        |        | 17,156 |          |  |       | 887      |       |  |       | 5.2%  |       |          |        | 15,919 |       |  |       | 773   |       |  |       | 4.9%  |      
|                          |                     |                          |        |        |       |  |       |          |        |  |          |       |       |        |        |        |          |  |       |          |       |  |       |       |       |          |       
|Total Worldwide           |                     |                          | 64,732 |        |       |  | 9,173 |          |        |  | 14.2%    |       |       |        | 62,426 |        |          |  | 8,993 |          |       |  | 14.4% |       |       |          | 58,975 |        |       |  | 8,616 |       |       |  | 14.6% |      






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                 
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | GM vehicle unit sales primarily represent vehicles manufactured
    by GM or manufactured by GMs investees and sold either
    under a GM nameplate or through a GM-owned distribution network.
    Consistent with industry practice, vehicle unit sales
    information includes estimates of sales in certain countries
    where public reporting is not legally required or otherwise
    available on a consistent basis.



| |                           
| | --------------------------
| | Fleet Sales and Deliveries



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GENERAL MOTORS CORPORATION AND SUBSIDIARIES




|                       |                                      |                          |     |       |      |   |     |       |      |   |     |       |      |  
|---------------------- | ------------------------------------ | ------------------------ | --- | ----- | ---- | - | --- | ----- | ---- | - | --- | ----- | ---- | -
|                       |                                      | GM U.S. Fleet Sales      |    
|                       |                                      | Years Ended December 31, |    
|                       |                                      |                          |    
|                       |                                      | 2005                     |     |       | 2004 |   |     | 2003  |     
|                       |                                      |                          |     |       |      |   |     |       |     
|                       |                                      | (Units in thousands)     |    
|Daily rental units     |                                      |                          | 780 |       |      |   | 801 |       |      |   | 713 |      
|Other fleet units      |                                      |                          | 388 |       |      |   | 353 |       |      |   | 288 |      
|                       |                                      |                          |     |       |      |   |     |       |     
|                       | Total fleet units                    |                          |     | 1,168 |      |   |     | 1,154 |      |   |     | 1,001 |     
|                       |                                      |                          |     |       |      |   |     |       |     
|U.S. retail/ fleet mix |                                      |                          |     |       |      |   |     |       |      |   |     |      
|                       | U.S. fleet sales as % of total sales |                          |     |       |      |   |     |       |      |   |     |       |     
|                       |                                      | Cars                     |     |       | 36.8 | % |     |       | 36.7 | % |     |       | 31.7 | %
|                       |                                      | Trucks                   |     |       | 19.0 | % |     |       | 16.4 | % |     |       | 13.6 | %
|                       |                                      | Total                    |     |       | 25.9 | % |     |       | 24.5 | % |     |       | 21.0 | %

Product Pricing




Seasonal Nature and Cyclical Nature of Business






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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


Relationships with Dealers






|                |  |                    |        |  |      |  |        | 
|--------------- |  | ------------------ | ------ |  | ---- |  | ------ | 
|                |  | As of December 31, |       
|                |  |                    |       
|                |  | 2005               |        |  | 2004 | 
|                |  |                    |        |  |      | 
|GMNA            |  |                    | 8,440  |  |      |  | 8,661  | 
|GME             |  |                    | 10,200 |  |      |  | 9,522  | 
|GMLAAM          |  |                    | 2,053  |  |      |  | 1,679  | 
|GMAP            |  |                    | 3,329  |  |      |  | 2,788  | 
|                |  |                    |        |  |      | 
|Total Worldwide |  |                    | 24,022 |  |      |  | 22,650 | 
|                |  |                    |        |  |      | 





Research, Development and Intellectual Property






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GENERAL MOTORS CORPORATION AND SUBSIDIARIES




Raw Materials, Services and Supplies








Competitive Position




|                               |  |                  |      |  
|------------------------------ |  | ---------------- | ---- | -
|                               |  | U.S Market Share |     
|                               |  |                  |     
|GM                             |  |                  | 25.9 | %
|Ford Motor Company             |  |                  | 18.2 | %
|DaimlerChrysler AG             |  |                  | 15.3 | %
|Toyota Corporation             |  |                  | 13.0 | %
|Honda Motor Company, Ltd.      |  |                  | 8.4  | %
|Nissan Motor Corporation, Ltd. |  |                  | 6.2  | %



Environmental and Regulatory Matters




| |                             
| | ----------------------------
| | Automotive Emissions Control



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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


















| |                                 
| | --------------------------------
| | Industrial Environmental Control



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GENERAL MOTORS CORPORATION AND SUBSIDIARIES






| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | GM has been identified as a potentially responsible party at
    sites identified by the EPA and state regulatory agencies for
    investigation and remediation of soil and/or groundwater
    contamination under the Comprehensive Environmental Response,
    Compensation, and Liability Act (CERCLA) and similar state
    statutes. GM voluntarily and actively participates in cleanup
    activity where such involvement has been verified. The total
    liability for sites involving GM was $66 million at
    December 31, 2005. This compares with $79 million at
    December 31, 2004.
|
| |  | For closed plants owned by the Corporation, the estimated
    liability for environmental investigation and remediation was
    $29 million at December 31, 2005, based on an
    environmental assessment of the plant property. This compares
    with $17 million at December 31, 2004. The increase in
    2005 was primarily due to additional
    clean-up
    responsibilities at two idled facilities.                                                                                                                                                                                         
|
| |  | GM is involved in investigation and remediation activities at
    additional locations worldwide with an estimated liability of
    $160 million at December 31, 2005. This compares with
    an estimated liability of $118 million at December 31,
    2004. The increase in 2005 was primarily due to additional
    clean-up
    responsibilities at an active facility.                                                                                                                                                                                                                           



2 2




| |                        
| | -----------------------
| | Vehicular Noise Control







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GENERAL MOTORS CORPORATION AND SUBSIDIARIES




| |                        
| | -----------------------
| | Automotive Fuel Economy







2 2


2 2




2


2


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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


flex-fuel


2




| |                    
| | -------------------
| | Non U.S. Regulation

end-of




| |       
| | ------
| | Safety







| |                    
| | -------------------
| | Pension Legislation



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GENERAL MOTORS CORPORATION AND SUBSIDIARIES






| |               
| | --------------
| | Export Control



Employees




|        |  |      |     |  |      |  |     | 
|------- |  | ---- | --- |  | ---- |  | --- | 
|        |  | 2005 |     |  | 2004 | 
|        |  |      |     |  |      | 
|GMNA    |  |      | 173 |  |      |  | 181 | 
|GME(1)  |  |      | 63  |  |      |  | 61  | 
|GMLAAM  |  |      | 31  |  |      |  | 29  | 
|GMAP(2) |  |      | 31  |  |      |  | 15  | 
|GMAC    |  |      | 34  |  |      |  | 34  | 
|Other   |  |      | 3   |  |      |  | 4   | 
|        |  |      |     |  |      | 
|Total   |  |      | 335 |  |      |  | 324 | 
|        |  |      |     |  |      | 






|    |                                                                                                        
|--- | -------------------------------------------------------------------------------------------------------
|(1) | 2005 includes approximately 7,000 employees added from a former
    powertrain joint venture with Fiat.
|   
|(2) | 2005 includes approximately 13,000 employees added as the result
    of the consolidation of GM Daewoo.



Segment Reporting Data




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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


Website Access to GMs Reports




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





Item 1A. Risk Factors






| |   |                                                                      
| | - | ---------------------------------------------------------------------
| |  | Risks related to GM and its automotive business; and                 
|
| |  | Risks related to GMs finance, mortgage and insurance
    businesses.



Risks related to GM and its automotive business




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





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





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GENERAL MOTORS CORPORATION AND SUBSIDIARIES






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







| |                                                                                                                                                                                                                      
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We have guaranteed a significant amount of Delphis
    financial obligations to its unionized workers. If Delphi fails
    to satisfy these obligations, we would be obligated to pay some
    of these obligations.





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GENERAL MOTORS CORPORATION AND SUBSIDIARIES








| |                                                                                                                                                                                                         
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our health-care cost burden is one of our biggest
    competitive challenges, and if we do not make progress on
    structurally fixing this issue, it will continue to be a
    long-term threat to GM.







| |                                                                                                  
| | -------------------------------------------------------------------------------------------------
| | Our extensive pension and OPEB obligations to retirees are
    a competitive disadvantage for us.





| |                                                                                                                                                                                                                                                                                                             
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We have recently experienced a series of credit rating
    actions that have downgraded our credit ratings to historically
    low levels. Further reduction of our credit ratings, or failure
    to restore our credit ratings to higher levels, could have a
    material adverse effect on our business.



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GENERAL MOTORS CORPORATION AND SUBSIDIARIES










| |                                                                                                                                                         
| | --------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our liquidity position could be negatively affected by a
    variety of factors, which in turn could have a material adverse
    effect on our business.





| |                                                                                                                                                                                                                                                                                                                                
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | GMs recent restatement of its prior financial
    statements could negatively impact its rights and obligations
    under certain contracts to which it is a party, including its
    $5.6 billion standby credit facility, which could under
    certain circumstances materially adversely affect GMs
    future liquidity.



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GENERAL MOTORS CORPORATION AND SUBSIDIARIES




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





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









| |                                                                                                                                                                                      
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The government is currently investigating certain of our
    accounting practices. The final outcome of these investigations
    could require us to restate prior financial results.



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GENERAL MOTORS CORPORATION AND SUBSIDIARIES






| |                                                                                        
| | ---------------------------------------------------------------------------------------
| | We operate in a highly competitive industry that has
    excess manufacturing capacity.





| |                                                                                                                                                    
| | ---------------------------------------------------------------------------------------------------------------------------------------------------
| | The bankruptcy or insolvency of a major competitor could
    result in further competitive disadvantages for us in relation
    to that competitor.





| |                                                                                                                                      
| | -------------------------------------------------------------------------------------------------------------------------------------
| | Shortages and increases in the price of fuel can result in
    diminished profitability due to shifts in consumer vehicle
    demand.





| |                                                                                                          
| | ---------------------------------------------------------------------------------------------------------
| | A decline in consumer demand for our higher margin
    vehicles could result in diminished profitability.





| |                                                                                                                                                
| | -----------------------------------------------------------------------------------------------------------------------------------------------
| | Our indebtedness and other obligations of our automotive
    operations are significant and could materially adversely affect
    our business.



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GENERAL MOTORS CORPORATION AND SUBSIDIARIES






| |   |                                                                                                                                                                                                                             
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Require us to dedicate a significant portion of our cash flow
    from operations to the payment of principal of, and interest on,
    our indebtedness, which will reduce the funds available for
    other purposes; and  
|
| |  | Make us more vulnerable to adverse economic and industry
    conditions, limit our ability to withstand competitive pressures
    and reduce our flexibility in responding to changing business
    and economic conditions.





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









| |                                                                                                
| | -----------------------------------------------------------------------------------------------
| | The pace of introduction and market acceptance of new
    vehicles is important to our success.



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GENERAL MOTORS CORPORATION AND SUBSIDIARIES






| |                                                                                                                                               
| | ----------------------------------------------------------------------------------------------------------------------------------------------
| | Economic and industry conditions constantly change and
    could have a material adverse effect on our business and results
    of operations.





| |                                                                                                                                                                               
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Changes in existing, or the adoption of new, laws,
    regulations or policies of governmental organizations may have a
    significant negative impact on how we do business.









| |                                                                                                                                         
| | ----------------------------------------------------------------------------------------------------------------------------------------
| | Our businesses outside the United States expose us to
    additional risks that may cause our revenues and profitability
    to decline.





| |   |                                                                                                                                                                            
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Multiple foreign regulatory requirements that are subject to
    change, including foreign regulations restricting our ability to
    sell our products in those countries;

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GENERAL MOTORS CORPORATION AND SUBSIDIARIES




| |   |                                                                                    
| | - | -----------------------------------------------------------------------------------
| |  | Differing local product preferences and product requirements;                      
|
| |  | Fluctuations in foreign currency exchange rates and interest
    rates;            
|
| |  | Difficulty in establishing, staffing and managing foreign
    operations;          
|
| |  | Differing labor regulations;                                                       
|
| |  | Consequences from changes in tax laws;                                             
|
| |  | Foreign state takeovers of our manufacturing facilities in those
    countries; and
|
| |  | Political and economic instability, natural calamities, war and
    terrorism.     





| |                                                                                                                                                                   
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | A failure of or interruption in the communications and
    information systems on which we rely to conduct our operations
    could adversely affect our business.





| |                                                                                                                                             
| | --------------------------------------------------------------------------------------------------------------------------------------------
| | We could be materially adversely affected by changes in
    currency exchange rates, commodity prices, equity prices and
    interest rates.





| |                                                   
| | --------------------------------------------------
| | We are subject to significant risks of litigation.



Risks related GMs finance, mortgage and insurance
businesses




| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We are considering the sale of a controlling interest in
    GMAC as well as exploring strategic and structural alternatives
    for ResCap. There is a risk that these initiatives may not
    occur, or if they do occur, they may not delink GMACs
    credit rating from GMs credit rating or maintain
    ResCaps investment grade credit rating. In addition, any
    such initiative, if completed, would reduce our interest in
    their earnings going forward.



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GENERAL MOTORS CORPORATION AND SUBSIDIARIES








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





| |                                                                                                                                                                                                                                                                                    
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our finance, mortgage and insurance businesses require
    substantial capital, and if we are unable to maintain adequate
    financing sources, our business, results of operations and
    financial condition will suffer and jeopardize our ability to
    continue operations.







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GENERAL MOTORS CORPORATION AND SUBSIDIARIES




| |                                                                                                                                                                        
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We are exposed to credit risk which could affect the
    business, results of operations and financial condition of our
    finance, mortgage and insurance operations.





| |                                                                                   
| | ----------------------------------------------------------------------------------
| | Our earnings may decrease because of increases or
    decreases in interest rates.





| |   |                                                                                                                                                                                                                   
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Rising interest rates will increase our cost of funds.                                                                                                                                                            
|
| |  | Rising interest rates may reduce our consumer automotive
    financing volume by influencing consumers to pay cash for, as
    opposed to financing, vehicle purchases.                                           
|
| |  | Rising interest rates generally reduce our residential mortgage
    loan production as borrowers become less likely to refinance and
    the costs associated with acquiring a new home become more
    expensive.
|
| |  | Rising interest rates will generally reduce the value of
    mortgage and automotive financing loans and contracts, retained
    interests and fixed income securities held in our investment
    portfolio.      





| |                                                                                                                    
| | -------------------------------------------------------------------------------------------------------------------
| | Our hedging strategies may not be successful in mitigating
    our risks associated with changes in interest rates.





| |                                                                                                                                         
| | ----------------------------------------------------------------------------------------------------------------------------------------
| | ResCaps ability to pay dividends and to prepay
    subordinated debt obligations to GMAC is restricted by
    contractual arrangements.



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GENERAL MOTORS CORPORATION AND SUBSIDIARIES










| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We use estimates and assumptions in determining the fair
    value of certain of our assets, in determining our allowance for
    credit losses, in determining lease residual values and in
    determining our reserves for insurance losses and loss
    adjustment expenses. If our estimates or assumptions prove to be
    incorrect, the business, results of operations and financial
    condition of our finance, mortgage and insurance operations
    could be materially adversely affected.





| |                                                                                                                                                                                                                                      
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | General business and economic conditions of the industries
    and geographic areas in which we operate affect the business,
    results of operations and financial condition of our finance,
    mortgage and insurance operations.







| |   |                                                                                                                                                                                                                                                                                                                                                                                            
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | A significant and sustained increase in gasoline prices could
    decrease new and used vehicle purchases, thereby reducing the
    demand for automotive retail financing and automotive wholesale
    financing.                                                                                                                                                                         
|
| |  | A general decline in residential home prices in the United
    States could negatively affect the value of our mortgage loans
    held for investment and our retained interests in securitized
    mortgage loans. Such a decrease could also restrict our ability
    to originate, sell or securitize mortgage loans and impact the
    repayment of advances under our warehouse loans.

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GENERAL MOTORS CORPORATION AND SUBSIDIARIES




| |   |                                                                                                                                              
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------
| |  | An increase in automotive labor rates or parts prices could
    negatively affect the value of our automotive extended service
    contracts.



| |                                                                                                                                                                   
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our business, results of operations and financial
    condition may be materially adversely affected by decreases in
    the residual value of off-lease vehicles.





| |                                                                                                                                                     
| | ----------------------------------------------------------------------------------------------------------------------------------------------------
| | Fluctuations in valuation of investment securities or
    significant fluctuations in investment market prices could
    negatively affect revenues.





| |                                                                                                                                                                                                                                                                                                                                            
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Changes in existing U.S. government-sponsored
    mortgage programs, or disruptions in the secondary markets in
    the United States or in other countries in which our mortgage
    subsidiaries operate, could materially adversely affect the
    business, results of operations and financial condition of our
    mortgage business.



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GENERAL MOTORS CORPORATION AND SUBSIDIARIES




| |                                                                                                                                                                                                                                                                            
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | GMAC may be required to repurchase contracts and provide
    indemnification if GMAC breaches representations and warranties
    from its securitization and whole loan transactions, which could
    harm our business, results of operations and financial
    condition.







| |                                                                                                                                                                                                                        
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Significant indemnification payments or contract, lease or
    loan repurchase activity of retail contracts or leases or
    mortgage loans could harm our business, results of operations
    and financial condition.





| |                                                                                                   
| | --------------------------------------------------------------------------------------------------
| | A loss of contractual servicing rights could have a
    material adverse effect on our operations.





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GENERAL MOTORS CORPORATION AND SUBSIDIARIES




| |                                                                                                            
| | -----------------------------------------------------------------------------------------------------------
| | The regulatory environment in which GMAC operates could
    have a material adverse effect on its business.









| |                                                                                                                                                                                                                                                                                                                                                      
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The worldwide financial services industry is highly
    competitive. If we are unable to compete successfully or if
    there is increased competition in the automotive financing,
    mortgage and/or insurance markets or generally in the markets
    for securitizations or asset sales, our margins could be
    materially adversely affected.





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GENERAL MOTORS CORPORATION AND SUBSIDIARIES







|         |                          
|-------- | -------------------------
|Item 1B. | Unresolved Staff Comments










|        |           
|------- | ----------
|Item 2. | Properties



|                 |  |             |  |             |  |               
|---------------- |  | ----------- |  | ----------- |  | --------------
| Germany        |  |  Australia |  |  China     |  |  Poland      
| United Kingdom |  |  Sweden    |  |  Thailand  |  |  South Korea 
| Brazil         |  |  Belgium   |  |  Argentina |  |  South Africa
| Mexico         |  |  Spain     |  |  Portugal  |  |               














|        |                  
|------- | -----------------
|Item 3. | Legal Proceedings



Canadian Export Antitrust Class Actions


In re
New Market Vehicle Canadian Export Antitrust Litigation
Cases Belch v. Toyota, et al. Bell v.
General Motors.


I-27



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


Legal Proceedings (continued)






Health Care Litigation


UAW, et al. v. General Motors
Corporation






General Motors Securities Litigation


Folksam Asset Management, et.al. v. General
Motors, et al.


I-28



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


Legal Proceedings (continued)


10-K. Folksam Galliani, et.al. v. General Motors,
et al. In re
General Motors Securities Litigation.


Folksam


Sacco, et al. v. General
Motors Corporation, et al. Rosen,
et al. v. General Motors Corporation, et al. Rosen Sacco Rosen




Shareholder Derivative Suits


Stein v. Bowles,
et al.


I-29



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES




Legal Proceedings (continued)




Gluckstern v.
Wagoner, et al. Stein v. Bowles, et al. Orr v. Wagoner, et al. Stein, Gluckstern Orr Stein,
Gluckstern Orr


Bouth v. Barnevik, et al.


Bouth Salisbury
v. Barnevik, et.al. Salisbury Bouth Bouth Salisbury




Motion for Consolidation and Transfer to the Eastern District
of Michigan


In re General Motors
Securities Litigation Folksam Asset
Management v. General Motors, et al. Galliani v. General Motors, et.al Stein v. Bowles, et al.


Rosen, Gluckstern, Orr




Bondholder Class Actions


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


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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


Legal Proceedings (continued)


S-3 10-Q 8-K J&R Marketing Mager


J&R Marketing,
et al. v. General Motors Corporation, et al. Zielezienski


Mager v. General Motors Corporation,
et al. J&R Marketing Mager




I-31



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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


Legal Proceedings (continued)






Asbestos Litigation














I-32



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


Legal Proceedings (continued)


ERISA Class Actions


In
re General Motors ERISA Litigation


In re Delphi
ERISA Litigation




Hughes Split-Off Class Actions


Young v. Pearce, et al. Silverstein v. Pearce, et al., Matcovsky,
et al., v. Hughes Electronics Corporation,
et al. Brody v. Hughes Electronics
Corporation, et al Wyser-Pratte Management Company v. General Motors
Corporation, et al. Robert LaMarche v. General Motors Corporation,
et al.


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GENERAL MOTORS CORPORATION AND SUBSIDIARIES




Legal Proceedings (concluded)


2 3




John Evans and Evans Cooling System v. General Motors











|        |                                                    
|------- | ---------------------------------------------------
|Item 4. | Submission of Matters to a Vote of Security Holders



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GENERAL MOTORS CORPORATION AND SUBSIDIARIES







|         |                                     
|-------- | ------------------------------------
|Item 4A. | Executive Officers of the Registrant



|                             |  |                                                                          
|---------------------------- |  | -------------------------------------------------------------------------
|Name and (Age)               |  | Positions and Offices                                                    
|                             |  |                                                                          
|G. Richard Wagoner, Jr. (53) |  | Chairman and Chief Executive Officer                                     
|John M. Devine (61)          |  | Vice Chairman                                                            
|Frederick A. Henderson (47)  |  | Vice Chairman and Chief Financial Officer                                
|Robert A. Lutz (74)          |  | Vice Chairman Global Product Development                                 
|Thomas A. Gottschalk (63)    |  | Executive Vice President  Law and Public Policy, and
    General Counsel



|                             |  |                                                                                 
|---------------------------- |  | --------------------------------------------------------------------------------
|Name and (Age)               |  | Positions and Offices                                                           
|                             |  |                                                                                 
|Troy A. Clarke (50)          |  | Group Vice President and President, GM Asia Pacific                             
|Gary L. Cowger (58)          |  | Group Vice President, Global Manufacturing and Labor Relations                  
|Eric A. Feldstein (46)       |  | Group Vice President and Chairman, General Motors Acceptance
    Corporation    
|Carl-Peter Forster (51)      |  | Group Vice President and President, GM Europe                                   
|Maureen Kempston Darkes (57) |  | Group Vice President and President, GM Latin America, Africa and
    Middle East
|Thomas G. Stephens (57)      |  | Group Vice President, GM Powertrain                                             
|Ralph J. Szygenda (57)       |  | Group Vice President and Chief Information Officer                              
|Bo I. Andersson (50)         |  | Vice President, Global Purchasing and Supply Chain                              
|Kathleen S. Barclay (50)     |  | Vice President, Global Human Resources                                          
|Lawrence D. Burns (54)       |  | Vice President, Research & Development and Strategic
    Planning               
|Steven J. Harris (60)        |  | Vice President, Global Communications                                           
|Peter R. Bible (47)          |  | Chief Accounting Officer                                                        
|Walter G. Borst (44)         |  | Treasurer                                                                       
|Paul W. Schmidt (61)         |  | Controller                                                                      

S-K,




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GENERAL MOTORS CORPORATION AND SUBSIDIARIES




Executive Officers of the Registrant 
(continued)
























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GENERAL MOTORS CORPORATION AND SUBSIDIARIES




Executive Officers of the Registrant 
(concluded)
















executive-in executive-in


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##### Table of Contents






PART II


GENERAL MOTORS CORPORATION AND SUBSIDIARIES







|        |                                                                              
|------- | -----------------------------------------------------------------------------
|Item 5. | Market for the Registrants Common Equity and Related
    Stockholder Matters

10-K


2 3 2 3 2 3


|                                                             |     |               |       |       |     |   |       |       |  |   |       |       |  |   |       |       | 
|------------------------------------------------------------ | --- | ------------- | ----- | ----- | --- | - | ----- | ----- |  | - | ----- | ----- |  | - | ----- | ----- | 
|                                                             |     | 2005 Quarters |      
|                                                             |     |               |      
|                                                             |     | 1st           |       |       | 2nd |   |       | 3rd   |  |   | 4th   |      
|                                                             |     |               |       |       |     |   |       |       |  |   |       |      
|Cash dividends per share of common stock
    $12/3 par value |     | $             | 0.50  |       |     | $ | 0.50  |       |  | $ | 0.50  |       |  | $ | 0.50  |      
|Price range of common stock
    $12/3 par value(1): High     |     | $             | 40.80 |       |     | $ | 36.65 |       |  | $ | 37.70 |       |  | $ | 31.50 |      
|                                                             | Low |               | $     | 27.98 |     |   | $     | 24.67 |  |   | $     | 30.21 |  |   | $     | 18.33 | 

|                                                             |     |               |       |       |     |   |       |       |  |   |       |       |  |   |       |       | 
|------------------------------------------------------------ | --- | ------------- | ----- | ----- | --- | - | ----- | ----- |  | - | ----- | ----- |  | - | ----- | ----- | 
|                                                             |     | 2004 Quarters |      
|                                                             |     |               |      
|                                                             |     | 1st           |       |       | 2nd |   |       | 3rd   |  |   | 4th   |      
|                                                             |     |               |       |       |     |   |       |       |  |   |       |      
|Cash dividends per share of common stock
    $12/3 par value |     | $             | 0.50  |       |     | $ | 0.50  |       |  | $ | 0.50  |       |  | $ | 0.50  |      
|Price range of common stock
    $12/3 par value(1): High     |     | $             | 55.55 |       |     | $ | 50.04 |       |  | $ | 46.93 |       |  | $ | 43.29 |      
|                                                             | Low |               | $     | 44.72 |     |   | $     | 42.88 |  |   | $     | 40.53 |  |   | $     | 36.90 | 






|    |                                                                                                                            
|--- | ---------------------------------------------------------------------------------------------------------------------------
|(1) | New York Stock Exchange composite interday prices as listed in
    the price history database available at www.NYSEnet.com.





|                                                               |                                                         |                      |             |            |                      |   |                      |                         |  |  |           |           | 
|-------------------------------------------------------------- | ------------------------------------------------------- | -------------------- | ----------- | ---------- | -------------------- | - | -------------------- | ----------------------- |  |  | --------- | --------- | 
|                                                               |                                                         | 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:        |                                                         |                      |             |            |                      |   |                      |                         |  |  |           |          
|                                                               | General Motors Amended Stock Incentive Plan (GMSIP)     |                      |             | 84,130,586 |                      |   | $                    | 53.11                   |  |  |           | 4,901,267 | 
|Equity compensation plans not approved by security holders(2): |                                                         |                      |             |            |                      |   |                      |                         |  |  |           |          
|                                                               | General Motors 1998 Salaried Stock Option Plan (GMSSOP) |                      |             | 27,213,635 |                      |   | $                    | 55.19                   |  |  |           | 771,326   | 
|                                                               |                                                         |                      |             |            |                      |   |                      |                         | 
|Total                                                          |                                                         |                      | 111,344,221 |            |                      | $ | 53.62                |                         |  |  | 5,672,593 |          
|                                                               |                                                         |                      |             |            |                      |   |                      |                         | 

II-1



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GENERAL MOTORS CORPORATION AND SUBSIDIARIES




Market for the Registrants Common Equity and Related
Stockholder Matters  (concluded)







|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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.

Purchases of Equity Securities


2 3


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GENERAL MOTORS CORPORATION AND SUBSIDIARIES







|        |                        
|------- | -----------------------
|Item 6. | Selected Financial Data

|                                          |                                                                                                                  |                                                |         |         |      |   |         |       |  |   |         |       |   |      |         |       |   |   |         |       |  
|----------------------------------------- | ---------------------------------------------------------------------------------------------------------------- | ---------------------------------------------- | ------- | ------- | ---- | - | ------- | ----- |  | - | ------- | ----- | - | ---- | ------- | ----- | - | - | ------- | ----- | -
|                                          |                                                                                                                  | Years Ended December 31                        |        
|                                          |                                                                                                                  |                                                |        
|                                          |                                                                                                                  | 2005                                           |         |         | 2004 |   |         | 2003  |  |   | 2002    |       |   | 2001 |        
|                                          |                                                                                                                  |                                                |         |         |      |   |         |       |  |   |         |       |   |      |        
|                                          |                                                                                                                  | (Dollars in millions except per share amounts) |        
|Total net sales and revenues              |                                                                                                                  | $                                              | 192,604 |         |      | $ | 193,517 |       |  | $ | 185,837 |       |   | $    | 177,867 |       |   | $ | 169,051 |      
|                                          |                                                                                                                  |                                                |         |         |      |   |         |       |  |   |         |       |   |      |        
|Income (loss) from continuing operations  |                                                                                                                  | $                                              | (10,458 | )       |      | $ | 2,804   |       |  | $ | 2,899   |       |   | $    | 1,813   |       |   | $ | 1,041   |      
|(Loss) from discontinued operations       |                                                                                                                  |                                                |        |         |      |   |        |       |  |   | (219    | )     |   |      | (239    | )     |   |   | (621    | )    
|Gain from sale of discontinued operations |                                                                                                                  |                                                |        |         |      |   |        |       |  |   | 1,179   |       |   |      |        |       |   |   |        |      
|Cumulative effect of accounting change    |                                                                                                                  |                                                | (109    | )       |      |   |        |       |  |   |        |       |   |      |        |       |   |   |        |      
|                                          |                                                                                                                  |                                                |         |         |      |   |         |       |  |   |         |       |   |      |        
|                                          | Net income (loss)(1)                                                                                             |                                                | $       | (10,567 | )    |   | $       | 2,804 |  |   | $       | 3,859 |   |      | $       | 1,574 |   |   | $       | 420   |  
|                                          |                                                                                                                  |                                                |         |         |      |   |         |       |  |   |         |       |   |      |        
|$12/3 par value common stock              |                                                                                                                  |                                                |         |         |      |   |         |       |  |   |         |       |   |      |         |       |   |   |         |      
|                                          | Basic earnings (losses) per share from continuing operations
    before cumulative effect of accounting change   |                                                | $       | (18.50  | )    |   | $       | 4.97  |  |   | $       | 5.17  |   |      | $       | 3.24  |   |   | $       | 1.89  |  
|                                          | Basic earnings (losses) per share from discontinued operations                                                   |                                                |         |        |      |   |         |      |  |   | $       | 2.14  |   |      | $       | (0.16 | ) |   | $       | (0.42 | )
|                                          | Basic (losses) per share from cumulative effect of accounting
    change                                         |                                                | $       | (0.19   | )    |   |         |      |  |   |         |      |   |      |         |      |   |   |         |      |  
|                                          | Diluted earnings (losses) per share from continuing operations
    before cumulative effect of accounting change |                                                | $       | (18.50  | )    |   | $       | 4.94  |  |   | $       | 5.09  |   |      | $       | 3.23  |   |   | $       | 1.87  |  
|                                          | Diluted earnings (losses) per share from discontinued operations                                                 |                                                |         |        |      |   |         |      |  |   | $       | 2.11  |   |      | $       | (0.16 | ) |   | $       | (0.43 | )
|                                          | Diluted (loss) per share from cumulative effect of accounting
    change                                         |                                                | $       | (0.19   | )    |   |         |      |  |   |         |      |   |      |         |      |   |   |         |      |  
|                                          | Cash dividends declared per share                                                                                |                                                | $       | 2.00    |      |   | $       | 2.00  |  |   | $       | 2.00  |   |      | $       | 2.00  |   |   | $       | 2.00  |  
|GMs Class H common stock(2)              |                                                                                                                  |                                                |         |         |      |   |         |       |  |   |         |       |   |      |         |       |   |   |         |      
|                                          | Basic earnings (losses) per share from discontinued operations                                                   |                                                | $       |        |      |   | $       |      |  |   | $       | (0.22 | ) |      | $       | (0.21 | ) |   | $       | (0.55 | )
|                                          | Diluted earnings (losses) per share from discontinued operations                                                 |                                                | $       |        |      |   | $       |      |  |   | $       | (0.22 | ) |      | $       | (0.21 | ) |   | $       | (0.55 | )
|                                          | Cash dividends declared per share                                                                                |                                                | $       |        |      |   | $       |      |  |   | $       |      |   |      | $       |      |   |   | $       |      |  
|Total assets                              |                                                                                                                  | $                                              | 476,078 |         |      | $ | 479,921 |       |  | $ | 448,819 |       |   | $    | 369,346 |       |   | $ | 322,637 |      
|Notes and loans payable                   |                                                                                                                  | $                                              | 285,750 |         |      | $ | 300,279 |       |  | $ | 271,756 |       |   | $    | 200,168 |       |   | $ | 165,361 |      
|Stockholders equity                      |                                                                                                                  | $                                              | 14,597  |         |      | $ | 27,360  |       |  | $ | 24,903  |       |   | $    | 6,412   |       |   | $ | 19,467  |      



10-K




|    |                                                                                                                                                                                                                                                                                                                                                                                                                               
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | 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

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GENERAL MOTORS CORPORATION AND SUBSIDIARIES




Selected Financial Data  (concluded)




|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    | 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. (FIN) 46,
    Consolidation of Variable Interest Entities. As of
    December 31, 2005, the Corporation recorded a pre-tax asset
    retirement obligation of $181 million in accordance with
    the requirements of FIN 47 Accounting for Conditional
    Asset Retirement Obligations. The cumulative effect on net
    loss, net of related income tax effects, of recording the asset
    retirement obligations was $109 million or $0.19 per
    share.
|   
|(2) | Effective December 22, 2003, GM split off Hughes by
    distributing Hughes common stock to the holders of GM
    Class H common stock in exchange for all outstanding shares
    of GM Class H common stock. Simultaneously, GM sold its
    19.8% retained economic interest in Hughes to News Corporation
    in exchange for cash and News Corporation Preferred ADSs. All
    shares of GM Class H common stock were then cancelled. See
    Note 2 to the Consolidated Financial Statements.                                                                                                                                                                                                                                                                                                                                   



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GENERAL MOTORS CORPORATION AND SUBSIDIARIES







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

Overview






| |                    
| | -------------------
| | Automotive Industry

year-to








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







| |                                  
| | ---------------------------------
| | GMNA Market Share and Product Mix



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GENERAL MOTORS CORPORATION AND SUBSIDIARIES




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



| |                              
| | -----------------------------
| | Delphi Chapter 11 Proceedings





| |                                                
| | -----------------------------------------------
| | GMNA Restructuring and Global Asset Impairments







| |                            
| | ---------------------------
| | Health-Care Cost Escalation





| |         
| | --------
| | Strategy



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GENERAL MOTORS CORPORATION AND SUBSIDIARIES




Strategy  (continued)








| |   |                                                                                                                                                                            
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Product Excellence  continue to raise the bar in the
    execution of great cars and trucks                                                                               
|
| |  | Revitalize Sales and Marketing Strategy  offer
    customers the best value in the industry                                                                               
|
| |  | Accelerate Cost Reductions and Quality Improvements 
    improve GMs cost position and reduce our breakeven point
    in response to an intensely competitive environment
|
| |  | Address Health Care Burden  reduce legacy cost
    disadvantages                                                                                                          









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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


Strategy  (concluded)






| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The bankruptcy of our largest supplier, Delphi. This situation
    presents significant risks to GM, including disruption in the
    supply of automotive systems, components, and parts, GM
    receiving only a portion of amounts owed by Delphi to GM, and
    obligations in excess of amounts recognized by GM in 2005 in
    connection with benefit guarantees. This situation also presents
    opportunities for GM, including reducing, over the long term,
    the significant cost penalty GM incurs in obtaining parts from
    Delphi, as well as improving the quality of systems, components
    and parts GM procures from Delphi as a result of the
    restructuring of Delphi through the Chapter 11 process.
|
| |  | The pursuit of a possible sale of a controlling interest in GMAC
    with the goal of delinking GMACs credit rating from
    GMs credit rating and renewing GMACs access to low
    cost financing, and the exploration of strategic and structural
    alternatives for ResCap.                                                                                                                                                                                                                                                                                                                                                                                                                                               
|
| |  | Negotiations with the UAW in connection with the expiration of
    our collective bargaining agreement in September 2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|
| |  | Restructuring initiatives in other areas, including Brazil,
    Europe, and Australia.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            







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GENERAL MOTORS CORPORATION AND SUBSIDIARIES




| |                     
| | --------------------
| | Business Environment





| |   |                                                                                                                                                                                                     
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Continued demand for GMs most profitable products and the
    maintenance of a strong product mix;                                                                                                 
|
| |  | The introduction of innovative new products on a timely cadence,
    through the integration of global architectures, engineering,
    and procurement efforts;                                     
|
| |  | The implementation of measures for reducing structural costs,
    offsetting legacy and health-care burdens;                                                                                        
|
| |  | Maintenance of sufficient balance sheet strength and
    liquidity; and                                                                                                                             
|
| |  | Other factors affecting GMs Financing and Insurance
    Operations (FIO) reportable operating segment results, including
    interest rates, credit ratings, and demand for mortgage
    financing.



Basis of Presentation


10-K








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







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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


Results of Operations


Consolidated Results


|                                    |                                                                                            |                          |   |         |      |  |   |         |   |  |   |         |  
|----------------------------------- | ------------------------------------------------------------------------------------------ | ------------------------ | - | ------- | ---- |  | - | ------- | - |  | - | ------- | -
|                                    |                                                                                            | Years Ended December 31, |  
|                                    |                                                                                            |                          |  
|                                    |                                                                                            | 2005                     |   |         | 2004 |  |   | 2003    |  
|                                    |                                                                                            |                          |   |         |      |  |   |         |  
|                                    |                                                                                            | (Dollars in millions)    |  
|Consolidated:                       |                                                                                            |                          |   |         |      |  |   |         |   |  |   |        
|                                    | Total net sales and revenues                                                               |                          | $ | 192,604 |      |  | $ | 193,517 |   |  | $ | 185,837 |  
|                                    | Income (loss) from continuing operations before cumulative
    effect of accounting change |                          | $ | (10,458 | )    |  | $ | 2,804   |   |  | $ | 2,899   |  
|                                    | Net income                                                                                 |                          | $ | (10,567 | )    |  | $ | 2,804   |   |  | $ | 3,859   |  
|                                    | Net margin from continuing operations                                                      |                          |   | (5.4    | )%   |  |   | 1.4     | % |  |   | 1.6     | %
|Automotive and Other Operations:    |                                                                                            |                          |   |         |      |  |   |         |   |  |   |        
|                                    | Total net sales and revenues                                                               |                          | $ | 158,221 |      |  | $ | 161,545 |   |  | $ | 155,831 |  
|                                    | Income (loss) from continuing operations before cumulative
    effect of accounting change |                          | $ | (12,816 | )    |  | $ | (145    | ) |  | $ | 137     |  
|                                    | Net income (loss)                                                                          |                          | $ | (12,925 | )    |  | $ | (145    | ) |  | $ | 1,097   |  
|Financing and Insurance Operations: |                                                                                            |                          |   |         |      |  |   |         |   |  |   |        
|                                    | Total revenues                                                                             |                          | $ | 34,383  |      |  | $ | 31,972  |   |  | $ | 30,006  |  
|                                    | Net income                                                                                 |                          | $ | 2,358   |      |  | $ | 2,949   |   |  | $ | 2,762   |  











| |   |                                                                                                                                   
| | - | ----------------------------------------------------------------------------------------------------------------------------------
| |  | Consolidated net loss of $10.6 billion, or $18.69 per
    share;                                                                  
|
| |  | Losses at all automotive regions;                                                                                                 
|
| |  | Charge recognized for announced GMNA restructuring plan;                                                                          
|
| |  | Charge recognized for contingent exposures relating to
    Delphis Chapter 11 filing, including under the
    benefit guarantees;
|
| |  | Strong performance at GMAC despite challenging environment;                                                                       
|
| |  | Strong year-end cash position; and                                                                                                

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GENERAL MOTORS CORPORATION AND SUBSIDIARIES




Consolidated Results  (concluded)




| |   |                                                                                                                                                                                                         
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Favorable returns on pension assets, resulting in
    U.S. Hourly and Salaried plans being overfunded on a
    Statement of Financial Accounting Standards No. 87 basis by
    approximately $6 billion.



GM Automotive and Other Operations Financial Review


|                                 |                                                                                            |                          |   |         |         |   |   |         |        |   |   |         |       | 
|-------------------------------- | ------------------------------------------------------------------------------------------ | ------------------------ | - | ------- | ------- | - | - | ------- | ------ | - | - | ------- | ----- | 
|                                 |                                                                                            | Years Ended December 31, |  
|                                 |                                                                                            |                          |  
|                                 |                                                                                            | 2005                     |   |         | 2004    |   |   | 2003    |       
|                                 |                                                                                            |                          |   |         |         |   |   |         |       
|                                 |                                                                                            | (Dollars in millions)    |  
|Auto & Other:                    |                                                                                            |                          |   |         |         |   |   |         |        |   |   |        
|                                 | Total net sales and revenues                                                               |                          | $ | 158,221 |         |   | $ | 161,545 |        |   | $ | 155,831 |      
|                                 | Income (loss) from continuing operations before cumulative
    effect of accounting change |                          | $ | (12,816 | )       |   | $ | (145    | )      |   | $ | 137     |      
|                                 | (Loss) from discontinued operations                                                        |                          |   |        |         |   |   |        |        |   |   | (219    | )    
|                                 | Gain on sale of discontinued operations                                                    |                          |   |        |         |   |   |        |        |   |   | 1,179   |      
|                                 | Cumulative effect of accounting change                                                     |                          |   | (109    | )       |   |   |        |        |   |   |        |      
|                                 |                                                                                            |                          |   |         |         |   |   |         |       
|                                 |                                                                                            | Net income (loss)        |   | $       | (12,925 | ) |   | $       | (145   | ) |   | $       | 1,097 | 
|                                 |                                                                                            |                          |   |         |         |   |   |         |       
|GMA net income (loss) by region: |                                                                                            |                          |   |         |         |   |   |         |        |   |   |        
|                                 | GMNA                                                                                       |                          | $ | (8,239  | )       |   | $ | 1,409   |        |   | $ | 879     |      
|                                 | GME                                                                                        |                          |   | (1,198  | )       |   |   | (925    | )      |   |   | (466    | )    
|                                 | GMLAAM                                                                                     |                          |   | (571    | )       |   |   | 60      |        |   |   | (329    | )    
|                                 | GMAP                                                                                       |                          |   | (220    | )       |   |   | 730     |        |   |   | 576     |      
|                                 |                                                                                            |                          |   |         |         |   |   |         |       
|                                 |                                                                                            | Net income (loss)        |   | $       | (10,228 | ) |   | $       | 1,274  |   |   | $       | 660   | 
|                                 |                                                                                            |                          |   |         |         |   |   |         |       
|                                 | Net margin                                                                                 |                          |   | (6.4    | )%      |   |   | 0.8     | %      |   |   | 0.4     | %    
|                                 | GM global automotive market share                                                          |                          |   | 14.2    | %       |   |   | 14.4    | %      |   |   | 14.6    | %    
|Other:                           |                                                                                            |                          |   |         |         |   |   |         |        |   |   |        
|                                 | Income (loss) from continuing operations                                                   |                          | $ | (2,697  | )       |   | $ | (1,419  | )      |   | $ | (523    | )    
|                                 | (Loss) from discontinued operations                                                        |                          |   |        |         |   |   |        |        |   |   | (219    | )    
|                                 | Gain on sale of discontinued operations                                                    |                          |   |        |         |   |   |        |        |   |   | 1,179   |      
|                                 |                                                                                            |                          |   |         |         |   |   |         |       
|                                 |                                                                                            | Net income (loss)        |   | $       | (2,697  | ) |   | $       | (1,419 | ) |   | $       | 437   | 
|                                 |                                                                                            |                          |   |         |         |   |   |         |       





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GENERAL MOTORS CORPORATION AND SUBSIDIARIES




GM Automotive and Other Operations Financial Review 
(continued)






GM Automotive Regional Results




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

|      |                              |                          |   |         |      |  |   |         |   |  |   |         |  
|----- | ---------------------------- | ------------------------ | - | ------- | ---- |  | - | ------- | - |  | - | ------- | -
|      |                              | Years Ended December 31, |  
|      |                              |                          |  
|      |                              | 2005                     |   |         | 2004 |  |   | 2003    |  
|      |                              |                          |   |         |      |  |   |         |  
|      |                              | (Dollars in millions)    |  
|GMNA: |                              |                          |   |         |      |  |   |         |   |  |   |        
|      | Total net sales and revenues |                          | $ | 104,755 |      |  | $ | 114,545 |   |  | $ | 116,310 |  
|      | Net income (loss)            |                          | $ | (8,239  | )    |  | $ | 1,409   |   |  | $ | 879     |  
|      | Net margin                   |                          |   | (7.9    | )%   |  |   | 1.2     | % |  |   | 0.8     | %

|                   |                                |                       |  |        |       |  |  |        |       |  |  |        |       | 
|------------------ | ------------------------------ | --------------------- |  | ------ | ----- |  |  | ------ | ----- |  |  | ------ | ----- | 
|                   |                                | (Volume in thousands) | 
|Production volume  |                                |                       |  |        |       |  |  |        |       |  |  |       
|                   | Cars                           |                       |  | 1,834  |       |  |  | 1,997  |       |  |  | 2,184  |      
|                   | Trucks                         |                       |  | 3,022  |       |  |  | 3,223  |       |  |  | 3,277  |      
|                   |                                | Total GMNA            |  |        | 4,856 |  |  |        | 5,220 |  |  |        | 5,461 | 
|Vehicle unit sales |                                |                       |  |        |       |  |  |        |       |  |  |       
|                   | Industry  North America       |                       |  | 20,542 |       |  |  | 20,282 |       |  |  | 19,842 |      
|                   | GM as a percentage of industry |                       |  | 25.5   | %     |  |  | 26.7   | %     |  |  | 27.4   | %    
|                   | Industry  U.S.                |                       |  | 17,455 |       |  |  | 17,302 |       |  |  | 16,970 |      
|                   | GM as a percentage of industry |                       |  | 25.9   | %     |  |  | 27.2   | %     |  |  | 28.0   | %    
|                   | GM cars                        |                       |  | 22.6   | %     |  |  | 24.9   | %     |  |  | 25.7   | %    
|                   | GM trucks                      |                       |  | 28.5   | %     |  |  | 29.0   | %     |  |  | 30.0   | %    





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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


GM Automotive and Other Operations Financial Review 
(continued)


GM North America  (continued)






| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Unfavorable product mix, which adversely affected net income by
    approximately $2.2 billion due primarily to reduced demand
    for GMNAs large utility vehicles which were reaching the
    end of their product life cycle, as well as declines in sales of
    higher margin large cars;                                                                                                                                                                            
|
| |  | Production volume decreases of 7% attributable to GMNA market
    share decline and a significant reduction in dealer inventories,
    accounted for a decrease in net income of approximately
    $2.1 billion;                                                                                                                                                                                                                                                           
|
| |  | Unfavorable material costs after factoring in the cost of
    government mandated product improvements accounted for a
    decrease in net income of approximately $700 million;                                                                                                                                                                                                                                                                                           
|
| |  | Increased health-care expenses primarily due to the recognition
    of OPEB net actuarial losses, which are caused by escalating
    health care cost trends, and falling discount rates in the U.S.,
    accounted for a decrease in net income of approximately
    $600 million. These 2005 health care cost increases do not
    reflect new health care initiatives with the UAW and salaried
    employees and retirees, which will benefit subsequent
    years; and
|
| |  | Advertising and sales promotion cost increases, accounting for a
    decrease in net income of $500 million due to further
    efforts to increase product awareness.                                                                                                                                                                                                                                                                                                      





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GENERAL MOTORS CORPORATION AND SUBSIDIARIES




GM Automotive and Other Operations Financial Review 
(continued)




GM North America  (concluded)










II-20.


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GENERAL MOTORS CORPORATION AND SUBSIDIARIES




GM Automotive and Other Operations Financial Review 
(continued)




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

|                                 |  |                          |        |    |      |   |        |      |  |   |        |   
|-------------------------------- |  | ------------------------ | ------ | -- | ---- | - | ------ | ---- |  | - | ------ | --
|                                 |  | Years Ended December 31, |       
|                                 |  |                          |       
|                                 |  | 2005                     |        |    | 2004 |   |        | 2003 | 
|                                 |  |                          |        |    |      |   |        |      | 
|                                 |  | (Dollars in millions)    |       
|GME total net sales and revenues |  | $                        | 31,719 |    |      | $ | 30,820 |      |  | $ | 27,478 |   
|GME net (loss)                   |  | $                        | (1,198 | )  |      | $ | (925   | )    |  | $ | (466   | ) 
|GME net margin                   |  |                          | (3.8   | )% |      |   | (3.0   | )%   |  |   | (1.7   | )%

|                                 |                                |                       |       |        |   |  |       |        |   |  |       |        |  
|-------------------------------- | ------------------------------ | --------------------- | ----- | ------ | - |  | ----- | ------ | - |  | ----- | ------ | -
|                                 |                                | (Volume in thousands) |      
|Production volume(1)             |                                |                       | 1,858 |        |   |  | 1,829 |        |   |  | 1,818 |       
|Vehicle unit sales               |                                |                       |       |        |   |  |       |        |   |  |       |       
|                                 | Industry                       |                       |       | 20,970 |   |  |       | 20,763 |   |  |       | 19,588 |  
|                                 | GM as a percentage of industry |                       |       | 9.5    | % |  |       | 9.4    | % |  |       | 9.3    | %
|GM market share  Germany        |                                |                       | 10.8  | %      |   |  | 10.6  | %      |   |  | 10.4  | %     
|GM market share  United Kingdom |                                |                       | 14.7  | %      |   |  | 13.9  | %      |   |  | 13.7  | %     






|    |                                                                             
|--- | ----------------------------------------------------------------------------
|(1) | 2004 and 2005 calendar years include GM-Avtovaz joint venture
    production







| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Restructuring charges totaling $673 million in connection
    with the restructuring plan announced in the fourth quarter of
    2004, as well as costs related to the dissolution of GMs
    powertrain and purchasing joint ventures with Fiat. The
    restructuring plan involves a reduction in workforce of up to
    12,000 through 2007, largely in manufacturing operations in
    Germany. In December 2004, GM reached agreement with various
    labor unions in Europe on a framework for the restructuring
    plan. The charges in 2005 related to the separation of
    approximately 7,500 people. No charge was recognized in 2004
    because the agreements were not yet finalized.
|
| |  | Favorable material cost, structural costs, and product mix,
    which more than offset pricing and volume declines, resulting in
    an almost $370 million improvement in year over year
    performance.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              







II-15



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES




GM Automotive and Other Operations Financial Review 
(continued)




GM Europe  (concluded)






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

|                                    |  |                          |        |    |      |   |       |      |  |   |       |   
|----------------------------------- |  | ------------------------ | ------ | -- | ---- | - | ----- | ---- |  | - | ----- | --
|                                    |  | Years Ended December 31, |       
|                                    |  |                          |       
|                                    |  | 2005                     |        |    | 2004 |   |       | 2003 | 
|                                    |  |                          |        |    |      |   |       |      | 
|                                    |  | (Dollars in millions)    |       
|GMLAAM total net sales and revenues |  | $                        | 11,745 |    |      | $ | 8,792 |      |  | $ | 5,387 |   
|GMLAAM net income (loss)            |  | $                        | (571   | )  |      | $ | 60    |      |  | $ | (329  | ) 
|GMLAAM net margin                   |  |                          | (4.9   | )% |      |   | 0.7   | %    |  |   | (6.1  | )%

|                         |                                |                       |      |       |   |  |      |       |   |  |      |       |  
|------------------------ | ------------------------------ | --------------------- | ---- | ----- | - |  | ---- | ----- | - |  | ---- | ----- | -
|                         |                                | (Volume in thousands) |     
|Production volume        |                                |                       | 775  |       |   |  | 716  |       |   |  | 547  |      
|Vehicle unit sales       |                                |                       |      |       |   |  |      |       |   |  |      |      
|                         | Industry                       |                       |      | 4,980 |   |  |      | 4,225 |   |  |      | 3,626 |  
|                         | GM as a percentage of industry |                       |      | 17.7  | % |  |      | 17.5  | % |  |      | 16.1  | %
|GM market share  Brazil |                                |                       | 21.3 | %     |   |  | 23.1 | %     |   |  | 23.3 | %    









| |   |                                                                                                                                                                                                                                                
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | A full valuation allowance charge of $617 million taken
    against GM do Brasils deferred tax assets as it was
    determined that it is more likely than not that deferred taxes
    in GMs Brazilian operations would not be realized; and
|
| |  | Volume, product mix, and pricing improvements which exceeded
    losses from unfavorable exchange rate changes, primarily with
    respect to the Brazilian real, by approximately $40 million
    from 2004 to 2005.                          



II-16



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES




GM Automotive and Other Operations Financial Review 
(continued)




GM Latin America/ Africa/ Mid-East 
(concluded)












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

|                                  |  |                          |        |    |      |   |       |      |  |   |       |  
|--------------------------------- |  | ------------------------ | ------ | -- | ---- | - | ----- | ---- |  | - | ----- | -
|                                  |  | Years Ended December 31, |       
|                                  |  |                          |       
|                                  |  | 2005                     |        |    | 2004 |   |       | 2003 | 
|                                  |  |                          |        |    |      |   |       |      | 
|                                  |  | (Dollars in millions)    |       
|GMAP total net sales and revenues |  | $                        | 10,893 |    |      | $ | 6,978 |      |  | $ | 5,338 |  
|GMAP net income (loss)            |  | $                        | (220   | )  |      | $ | 730   |      |  | $ | 576   |  
|GMAP net margin                   |  |                          | (2.0   | )% |      |   | 10.5  | %    |  |   | 10.8  | %

|                            |                                |                       |       |        |   |  |       |        |   |  |      |        |  
|--------------------------- | ------------------------------ | --------------------- | ----- | ------ | - |  | ----- | ------ | - |  | ---- | ------ | -
|                            |                                | (Volume in thousands) |      
|Production volume(1)        |                                |                       | 1,562 |        |   |  | 1,333 |        |   |  | 420  |       
|Vehicle unit sales          |                                |                       |       |        |   |  |       |        |   |  |      |       
|                            | Industry                       |                       |       | 18,240 |   |  |       | 17,156 |   |  |      | 15,919 |  
|                            | GM as a percentage of industry |                       |       | 5.8    | % |  |       | 5.2    | % |  |      | 4.9    | %
|GM market share  Australia |                                |                       | 17.8  | %      |   |  | 19.4  | %      |   |  | 20.4 | %     
|GM market share  China     |                                |                       | 11.2  | %      |   |  | 9.4   | %      |   |  | 8.5  | %     






|    |                                                                                       
|--- | --------------------------------------------------------------------------------------
|(1) | 2004 and 2005 calendar years include GM Daewoo and Wuling joint
    venture production







| |   |                                                                                                                                                                                                                    
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Write-down of GMs investment in FHI in the second quarter
    for $788 million, after-tax, as a result of FHIs
    declining financial performance and the downward adjustments in
    their business plan in May

II-17



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES




GM Automotive and Other Operations Financial Review 
(concluded)




GM Asia Pacific  (concluded)




| |   |                                                                                                                                                                                                                                                                                                                                    
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | 2005. This writedown was partially offset in the fourth quarter,
    when GM completed the sale of its investment in the common stock
    of FHI and recorded a gain of $71 million (after tax) due
    to the appreciation of the fair value of such stock after
    June 30, 2005, the date of the FHI impairment
    charge; and
|
| |  | Volume and product mix at GM Holden in Australia, as well as
    reduced equity income from higher costs associated with
    GMs growth initiatives in China, were partially offset by
    favorable results from GM Daewoo, resulting in a decrease in net
    income of approximately $200 million from 2004 to 2005.           







Other Operations


|       |                                             |                          |   |        |      |  |   |        |   |  |   |       |  
|------ | ------------------------------------------- | ------------------------ | - | ------ | ---- |  | - | ------ | - |  | - | ----- | -
|       |                                             | Years Ended December 31, |  
|       |                                             |                          |  
|       |                                             | 2005                     |   |        | 2004 |  |   | 2003   |  
|       |                                             |                          |   |        |      |  |   |        |  
|       |                                             | (Dollars in millions)    |  
|Other: |                                             |                          |   |        |      |  |   |        |   |  |   |      
|       | Total net sales, revenues, and eliminations |                          | $ | (891   | )    |  | $ | 410    |   |  | $ | 1,318 |  
|       | Income (loss) from continuing operations    |                          | $ | (2,697 | )    |  | $ | (1,419 | ) |  | $ | (523  | )
|       | (Loss) from discontinued operations         |                          |   |       |      |  |   |       |   |  |   | (219  | )
|       | Gain from sale of discontinued operations   |                          |   |       |      |  |   |       |   |  |   | 1,179 |  
|       |                                             |                          |   |        |      |  |   |        |  
|       | Net income (loss)                           |                          | $ | (2,697 | )    |  | $ | (1,419 | ) |  | $ | 437   |  
|       |                                             |                          |   |        |      |  |   |        |  







II-18



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES




Other Operations  (concluded)






Discontinued Operations






GMAC Financial Review




|                     |            |                          |       |       |      |   |       |       |  |   |       |       | 
|-------------------- | ---------- | ------------------------ | ----- | ----- | ---- | - | ----- | ----- |  | - | ----- | ----- | 
|                     |            | Years Ended December 31, |      
|                     |            |                          |      
|                     |            | 2005                     |       |       | 2004 |   |       | 2003  | 
|                     |            |                          |       |       |      |   |       |       | 
|                     |            | (Dollars in millions)    |      
|Financing operations |            | $                        | 627   |       |      | $ | 1,430 |       |  | $ | 1,391 |      
|Mortgage operations  |            |                          | 1,345 |       |      |   | 1,186 |       |  |   | 1,175 |      
|Insurance operations |            |                          | 411   |       |      |   | 352   |       |  |   | 162   |      
|                     |            |                          |       |       |      |   |       |       | 
|                     | Net income |                          | $     | 2,383 |      |   | $     | 2,968 |  |   | $     | 2,728 | 
|                     |            |                          |       |       |      |   |       |       | 





II-19



---



##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES




GMAC Financial Review  (concluded)








Key Factors Affecting Future Results






| |                                    
| | -----------------------------------
| | GM North America Restructuring Plan







| |                   
| | ------------------
| | Product Excellence

pick-up


II-20



---



##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES




Key Factors Affecting Future Results 
(continued)




| |                                                      
| | -----------------------------------------------------
| | GM North America Restructuring Plan 
    (continued)



| |                                        
| | ---------------------------------------
| | Revitalize Sales and Marketing Strategy







| |                                                    
| | ---------------------------------------------------
| | Accelerate Cost Reductions and Quality Improvements











II-21



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


Key Factors Affecting Future Results 
(continued)




| |                                                      
| | -----------------------------------------------------
| | GM North America Restructuring Plan 
    (continued)





| |                           
| | --------------------------
| | Address Health-Care Burden







2 3




out-of


II-22



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


Key Factors Affecting Future Results 
(continued)




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







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







| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Approximately $3 billion related to the UAW health-care
    agreement. The $3 billion is comprised of approximately
    $1 billion principally related to OPEB service and interest
    costs expected to be realized each year during the six-year term
    of the agreement and approximately $2 billion which results
    from the amortization of a $15 billion gain related to the
    agreement over approximately a seven-year period, which
    coincides with the remaining service life of active employees.
    The annual savings will be allocated approximately 80% to GMNA
    and 20% to the corporate sector.
|
| |  | Approximately $2 billion based on the capacity utilization
    and other manufacturing initiatives; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|
| |  | Approximately $2 billion based on additional productivity
    and cost efficiencies in other areas of the business, including
    engineering, advertising and salaried employment levels and
    benefits.                                                                                                                                                                                                                                                                                                                                                                                                                   



II-23



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


Key Factors Affecting Future Results 
(continued)




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





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















II-24



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


Key Factors Affecting Future Results 
(continued)




Delphi
Bankruptcy  (continued)
















II-25



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


Key Factors Affecting Future Results 
(continued)




Delphi
Bankruptcy  (concluded)






10-K




| |                            
| | ---------------------------
| | GMAC Strategic Alternatives







II-26



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES




Key Factors Affecting Future Results 
(concluded)


Health-Care Liquidity
Matters








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







II-27



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES




| |             
| | ------------
| | Restatements

out-of




Liquidity and Capital Resources




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

Available Liquidity




|                                        |                     |                          |      |      |      |   |      |      |  |   |      |      | 
|--------------------------------------- | ------------------- | ------------------------ | ---- | ---- | ---- | - | ---- | ---- |  | - | ---- | ---- | 
|                                        |                     | Years Ended December 31, |     
|                                        |                     |                          |     
|                                        |                     | 2005                     |      |      | 2004 |   |      | 2003 | 
|                                        |                     |                          |      |      |      |   |      |      | 
|                                        |                     | (Dollars in billions)    |     
|Cash and cash equivalents               |                     | $                        | 15.2 |      |      | $ | 13.1 |      |  | $ | 14.4 |     
|Other marketable securities             |                     |                          | 1.4  |      |      |   | 6.7  |      |  |   | 9.1  |     
|Readily-available assets of VEBA trusts |                     |                          | 3.8  |      |      |   | 3.5  |      |  |   | 3.5  |     
|                                        |                     |                          |      |      |      |   |      |      | 
|                                        | Available Liquidity |                          | $    | 20.4 |      |   | $    | 23.3 |  |   | $    | 27.0 | 
|                                        |                     |                          |      |      |      |   |      |      | 

II-28



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


Automotive and Other
Operations  (continued)


Available Liquidity  (continued)












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





II-29



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES




Automotive and Other
Operations  (continued)




Available Liquidity  (continued)










| |     
| | ----
| | Debt







II-30



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES




Automotive and Other
Operations  (concluded)




Available Liquidity  (concluded)




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



Financing and Insurance Operations








Status of Debt Ratings




|              |  |             |  |           |                  |        |  |  |           |  |           |  |          
|------------- |  | ----------- |  | --------- | ---------------- | ------ |  |  | --------- |  | --------- |  | ---------
|              |  | Senior Debt |  |           | Commercial Paper
|              |  |             |  |           |                 
|Rating Agency |  | GM          |  | GMAC      |                  | ResCap |  |  | GM        |  | GMAC      |  | ResCap   
|              |  |             |  |           |                  |        |  |  |           |  |           |  |          
|DBRS          |  | B (High)    |  | BBB (Low) |                  | BBB    |  |  | R-3 (Mid) |  | R-2 (Low) |  | R-2 (Mid)
|Fitch         |  | B           |  | BB        |                  | BBB-   |  |  | Withdrawn |  | B         |  | F3       
|Moodys       |  | B2          |  | Ba1       |                  | Baa3   |  |  | Not Prime |  | Not Prime |  | P3       
|S&P           |  | B           |  | BB        |                  | BBB-   |  |  | B-3       |  | B-1       |  | A-3      
|              |  |             |  |           |                  |        |  |  |           |  |           |  |          

II-31



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


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





short-term P-3






II-32



---



##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES




Status of Debt Ratings  (concluded)










Line of Credit Between GM and GMAC




II-33



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES




Pension and Other Postretirement Benefits






|                         |  |      |     |  |      |   |     |      |  |   |        | 
|------------------------ |  | ---- | --- |  | ---- | - | --- | ---- |  | - | ------ | 
|                         |  | 2005 |     |  | 2004 |   |     | 2003 | 
|                         |  |      |     |  |      |   |     |      | 
|U.S. hourly and salaried |  | $    |    |  |      | $ |    |      |  | $ | 18,504 | 
|Other U.S.               |  |      | 125 |  |      |   | 117 |      |  |   | 117    | 
|Non-U.S.                 |  |      | 708 |  |      |   | 802 |      |  |   | 442    | 

non-U.S.


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


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




II-34



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES




Pension and Other Postretirement Benefits 
(concluded)




|          |  |                  |        |         |                |                |               |          |                         |        |          |          |               |          |       |        |          |   |     |  |  |   |   | 
|--------- |  | ---------------- | ------ | ------- | -------------- | -------------- | ------------- | -------- | ----------------------- | ------ | -------- | -------- | ------------- | -------- | ----- | ------ | -------- | - | --- |  |  | - | - | 
|          |  |                  |        |         |                | Other Benefits |               |          | Non-U.S. Other Benefits
|          |  |                  |        |         |                |                |              
|          |  | Pension Benefits |        |         |                |                | Gross         |          |                         |        |          | Gross   
|          |  |                  |        |         |                |                | Medicare      |          |                         |        |          | Medicare
|          |  |                  |        | Primary |                |                | Gross Benefit |          |                         | Part D |          |          | Gross Benefit |          |       | Part D
|          |  | U.S. Plans       |        |         | Non-U.S. Plans |                |               | Payments |                         |        | Receipts |          |               | Payments |       |        | Receipts
|          |  |                  |        |         |                |                |               |          |                         |        |          |          |               |          |       |        |         
|2006      |  |                  | 6,794  |         |                |                | 834           |          |                         |        | 4,337    |          |               |          | 181   |        |          |   | 128 |  |  |   |  | 
|2007      |  |                  | 6,693  |         |                |                | 865           |          |                         |        | 4,637    |          |               |          | 271   |        |          |   | 137 |  |  |   |  | 
|2008      |  |                  | 6,728  |         |                |                | 905           |          |                         |        | 4,916    |          |               |          | 301   |        |          |   | 147 |  |  |   |  | 
|2009      |  |                  | 6,744  |         |                |                | 940           |          |                         |        | 5,163    |          |               |          | 328   |        |          |   | 157 |  |  |   |  | 
|2010      |  |                  | 6,754  |         |                |                | 979           |          |                         |        | 5,383    |          |               |          | 353   |        |          |   | 167 |  |  |   |  | 
|2011-2015 |  | $                | 33,517 |         |                | $              | 5,443         |          |                         | $      | 29,187   |          |               | $        | 2,116 |        |          | $ | 993 |  |  | $ |  | 

Off-Balance Sheet Arrangements










|                                     |       |             |       |       |      |   |       |       | 
|------------------------------------ | ----- | ----------- | ----- | ----- | ---- | - | ----- | ----- | 
|                                     |       | December 31 |      
|                                     |       |             |      
|Automotive and Other Operations      |       | 2005        |       |       | 2004 |  
|                                     |       |             |       |       |      |  
|Assets leased under operating leases |       | $           | 2,430 |       |      | $ | 2,553 |      
|Trade receivables sold(1)            |       |             | 708   |       |      |   | 1,210 |      
|                                     |       |             |       |       |      |  
|                                     | Total |             | $     | 3,138 |      |   | $     | 3,763 | 
|                                     |       |             |       |       |      |  

II-35



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES




Off-Balance Sheet Arrangements  (concluded)


|                                   |                                 |       |   |        |         |  |   |        |         | 
|---------------------------------- | ------------------------------- | ----- | - | ------ | ------- |  | - | ------ | ------- | 
|Financing and Insurance Operations |                                 |       |   |       
|                                   |                                 |       |   |       
|Receivables sold or securitized:   |                                 |       |   |        |         |  |   |       
|                                   |  Mortgage loans                |       | $ | 99,084 |         |  | $ | 79,043 |        
|                                   |  Retail finance receivables    |       |   | 6,014  |         |  |   | 5,615  |        
|                                   |  Wholesale finance receivables |       |   | 21,421 |         |  |   | 21,291 |        
|                                   |                                 |       |   |        |         | 
|                                   |                                 | Total |   | $      | 126,519 |  |   | $      | 105,949 | 
|                                   |                                 |       |   |        |         | 






|    |                                                                                                                                        
|--- | ---------------------------------------------------------------------------------------------------------------------------------------
|(1) | In addition, trade receivables sold to GMAC were
    $525 million as of December 31, 2005 and
    $549 million as of December 31, 2004.

Contractual Obligations and Other Long-Term Liabilities




II-36



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES




Contractual Obligations and Other Long-Term
Liabilities  (continued)




Automotive and Other Operations


|                                                 |                                                         |                        |        |       |           |   |        |           |        |   |                |       |        |       |        |        |   |   |        |        |         |  
|------------------------------------------------ | ------------------------------------------------------- | ---------------------- | ------ | ----- | --------- | - | ------ | --------- | ------ | - | -------------- | ----- | ------ | ----- | ------ | ------ | - | - | ------ | ------ | ------- | -
|                                                 |                                                         | Payments due by period |       
|                                                 |                                                         |                        |       
|                                                 |                                                         | 2006                   |        |       | 2007-2008 |   |        | 2009-2010 |        |   | 2011 and after |       |        | Total |       
|                                                 |                                                         |                        |        |       |           |   |        |           |        |   |                |       |        |       |       
|                                                 |                                                         | (dollars in millions)  |       
|Debt                                             |                                                         | $                      | 1,519  |       |           | $ | 2,847  |           |        | $ | 589            |       |        | $     | 27,648 |        |   | $ | 32,603 |       
|Capital lease obligations                        |                                                         |                        | 174    |       |           |   | 597    |           |        |   | 251            |       |        |       | 573    |        |   |   | 1,595  |       
|Operating lease obligations                      |                                                         |                        | 630    |       |           |   | 1,472  |           |        |   | 895            |       |        |       | 1,323  |        |   |   | 4,320  |       
|Contractual commitments for capital expenditures |                                                         |                        | 745    |       |           |   | 15     |           |        |   |               |       |        |       |       |        |   |   | 760    |       
|Other contractual commitments:                   |                                                         |                        |        |       |           |   |        |           |        |   |                |       |        |       |        |        |   |   |        |       
|                                                 | Postretirement benefits(1)                              |                        |        | 3,517 |           |   |        | 3,827     |        |   |                |      |        |       |        |       |   |   |        | 7,344  |        
|                                                 |                                                         | Less: VEBA assets(2)   |        |       | (3,517    | ) |        |           | (3,827 | ) |                |       |       |       |        |        |  |   |        |        | (7,344  | )
|                                                 |                                                         |                        |        |       |           |   |        |           |        |   |                |       |        |       |       
|                                                 | Net                                                     |                        |        |      |           |   |        |          |        |   |                |      |        |       |        |       |   |   |        |       |        
|                                                 | Material                                                |                        |        | 1,079 |           |   |        | 1,676     |        |   |                | 1,262 |        |       |        | 332    |   |   |        | 4,349  |        
|                                                 | Information technology(3)                               |                        |        | 333   |           |   |        | 179       |        |   |                | 4     |        |       |        | 1      |   |   |        | 517    |        
|                                                 | Marketing                                               |                        |        | 1,647 |           |   |        | 634       |        |   |                | 429   |        |       |        | 115    |   |   |        | 2,825  |        
|                                                 | Facilities                                              |                        |        | 201   |           |   |        | 227       |        |   |                | 178   |        |       |        | 445    |   |   |        | 1,051  |        
|                                                 | Rental car repurchases                                  |                        |        | 8,347 |           |   |        |          |        |   |                |      |        |       |        |       |   |   |        | 8,347  |        
|                                                 | Policy, product warranty and recall campaigns liability |                        |        | 4,480 |           |   |        | 4,123     |        |   |                | 482   |        |       |        | 43     |   |   |        | 9,128  |        
|                                                 |                                                         |                        |        |       |           |   |        |           |        |   |                |       |        |       |       
|Total contractual commitments                    |                                                         | $                      | 19,155 |       |           | $ | 11,770 |           |        | $ | 4,090          |       |        | $     | 30,480 |        |   | $ | 65,495 |       
|                                                 |                                                         |                        |        |       |           |   |        |           |        |   |                |       |        |       |       
|Remaining balance postretirement benefits        |                                                         | $                      | 767    |       |           | $ | 5,438  |           |        | $ | 10,189         |       |        | $     | 61,203 |        |   | $ | 77,597 |       
|                                                 |                                                         | Less: VEBA assets(2)   |        |       | (767      | ) |        |           | (5,438 | ) |                |       | (5,557 | )     |        |        |  |   |        |        | (11,762 | )
|                                                 |                                                         |                        |        |       |           |   |        |           |        |   |                |       |        |       |       
|                                                 | Net                                                     |                        | $      |      |           |   | $      |          |        |   | $              | 4,632 |        |       | $      | 61,203 |   |   | $      | 65,835 |        
|                                                 |                                                         |                        |        |       |           |   |        |           |        |   |                |       |        |       |       





|    |                                                                                                                                                                                                                                                                                                                                 
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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 $1.0 billion VEBA withdrawal
    and $0.2 billion VEBA withdrawal in the fourth quarter of
    2005.                                                                                                                             
|   
|(3) | Does not reflect the effect of the January 2006 agreements
    with information technology providers.                                                                                                                                                                                                                           



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GENERAL MOTORS CORPORATION AND SUBSIDIARIES




Contractual Obligations and Other Long-Term
Liabilities  (continued)




Financing and Insurance Operations


|                                                                  |                               |                        |        |          |           |   |        |           |  |   |        |        |  |       |        |         |  |   |         |         | 
|----------------------------------------------------------------- | ----------------------------- | ---------------------- | ------ | -------- | --------- | - | ------ | --------- |  | - | ------ | ------ |  | ----- | ------ | ------- |  | - | ------- | ------- | 
|                                                                  |                               | Payments due by period |       
|                                                                  |                               |                        |       
|                                                                  |                               |                        |        | 2011 and |           |   |       
|                                                                  |                               | 2006                   |        |          | 2007-2008 |   |        | 2009-2010 |  |   | after  |        |  | Total |       
|                                                                  |                               |                        |        |          |           |   |        |           |  |   |        |        |  |       |       
|                                                                  |                               | (Dollars in millions)  |       
|Debt                                                              |                               | $                      | 82,054 |          |           | $ | 59,512 |           |  | $ | 18,801 |        |  | $     | 93,386 |         |  | $ | 253,753 |        
|Operating lease obligations                                       |                               |                        | 201    |          |           |   | 304    |           |  |   | 161    |        |  |       | 158    |         |  |   | 824     |        
|Mortgage purchase and sale commitments                            |                               |                        | 24,619 |          |           |   | 3,463  |           |  |   |       |        |  |       | 70     |         |  |   | 28,152  |        
|Lending commitments                                               |                               |                        | 18,500 |          |           |   | 2,213  |           |  |   | 669    |        |  |       | 4,493  |         |  |   | 25,875  |        
|Commitments to remit excess cash flows on certain loan portfolios |                               |                        |       |          |           |   |       |           |  |   |       |        |  |       | 4,305  |         |  |   | 4,305   |        
|Commitments to sell retail automotive receivables                 |                               |                        | 9,000  |          |           |   | 12,000 |           |  |   | 12,000 |        |  |       |       |         |  |   | 33,000  |        
|Commitments to provide capital to equity method investees         |                               |                        | 553    |          |           |   | 90     |           |  |   | 107    |        |  |       | 287    |         |  |   | 1,037   |        
|Purchase obligations                                              |                               |                        | 150    |          |           |   | 77     |           |  |   | 13     |        |  |       |       |         |  |   | 240     |        
|                                                                  |                               |                        |        |          |           |   |        |           |  |   |        |        |  |       |       
|                                                                  | Total contractual commitments |                        | $      | 135,077  |           |   | $      | 77,659    |  |   | $      | 31,751 |  |       | $      | 102,699 |  |   | $       | 347,186 | 
|                                                                  |                               |                        |        |          |           |   |        |           |  |   |        |        |  |       |       

Book Value per Share


2 3




2 3


2 3


Dividends


2 3


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GENERAL MOTORS CORPORATION AND SUBSIDIARIES




Contractual Obligations and Other Long-Term
Liabilities  (concluded)




2 3 2 3 2 3


Employment and Payrolls


|                                                         |                 |      |       |     |      |   |       |      |  |   |       |     | 
|-------------------------------------------------------- | --------------- | ---- | ----- | --- | ---- | - | ----- | ---- |  | - | ----- | --- | 
|Worldwide employment at December 31, (in thousands)      |                 | 2005 |       |     | 2004 |   |       | 2003 | 
|                                                         |                 |      |       |     |      |   |       |      | 
|GMNA                                                     |                 |      | 173   |     |      |   | 181   |      |  |   | 190   |    
|GME(1)                                                   |                 |      | 63    |     |      |   | 61    |      |  |   | 62    |    
|GMLAAM                                                   |                 |      | 31    |     |      |   | 29    |      |  |   | 23    |    
|GMAP(2)                                                  |                 |      | 31    |     |      |   | 15    |      |  |   | 14    |    
|GMAC                                                     |                 |      | 34    |     |      |   | 34    |      |  |   | 32    |    
|Other                                                    |                 |      | 3     |     |      |   | 4     |      |  |   | 5     |    
|                                                         |                 |      |       |     |      |   |       |      | 
|                                                         | Total employees |      |       | 335 |      |   |       | 324  |  |   |       | 326 | 
|                                                         |                 |      |       |     |      |   |       |      | 
|Worldwide payrolls excluding benefits (in billions)      |                 | $    | 21.5  |     |      | $ | 21.5  |      |  | $ | 20.9  |    
|U.S. hourly payrolls excluding benefits (in billions)(3) |                 | $    | 8.0   |     |      | $ | 8.7   |      |  | $ | 8.9   |    
|Average labor cost per active hour worked U.S. hourly(4) |                 | $    | 81.18 |     |      | $ | 73.73 |      |  | $ | 78.39 |    






|    |                                                                                                        
|--- | -------------------------------------------------------------------------------------------------------
|(1) | 2005 includes approximately 7,000 employees added from a former
    powertrain joint venture with Fiat.
|   
|(2) | 2005 includes approximately 13,000 employees added as the result
    of the consolidation of GM Daewoo.
|   
|(3) | Includes employees at work (excludes laid-off
    employees receiving benefits).                     
|   
|(4) | Includes U.S. hourly wages and benefits divided by the
    number of hours worked.                     

Critical Accounting Estimates




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GENERAL MOTORS CORPORATION AND SUBSIDIARIES




Critical Accounting Estimates  (continued)




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





| |   |                                                                                                                                                                                                                                                                                                                                                                                                            
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Discount rates. For 2005, our discount rates are based on
    creating a hypothetical portfolio of high quality bonds (rated
    AA by a recognized rating agency) for which the timing and
    amount of cash inflows approximates the estimated outflows of
    the defined benefit plan.                                                                                                                
|
| |  | Health care cost trend rate. Our health-care cost trend
    rate is based on historical retiree cost data, near term health
    care outlook, including appropriate cost control measures
    implemented by GM, and industry benchmarks and surveys.                                                                                                                                                      
|
| |  | Expected return on plan assets. Our expected return on
    plan assets is derived from detailed periodic studies, which
    include a review of asset allocation strategies, anticipated
    future long-term performance of individual asset classes, risk
    and correlations for each of the asset classes that comprise the
    funds asset mix, and recent and long-term historical
    performance.
|
| |  | Mortality rates. Mortality rates are based on actual and
    projected plan experience.                                                                                                                                                                                                                                                                                                                    
|
| |  | Retirement rates. Retirement rates are based on actual
    and projected plan experience.                                                                                                                                                                                                                                                                                                                  
|
| |  | Rate of compensation increase. The rate of compensation
    increase for final pay plans reflects our long-term actual
    experience and our outlook, including contractually agreed upon
    wage rate increases for represented hourly employees.                                                                                                                                                       





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GENERAL MOTORS CORPORATION AND SUBSIDIARIES




Critical Accounting Estimates  (continued)




|                                                     |  |                         |             |           |                   |    |             | 
|---------------------------------------------------- |  | ----------------------- | ----------- | --------- | ----------------- | -- | ----------- | 
|                                                     |  |                         |             | Effect on |                  
|                                                     |  | Effect on 2006          |             |           | December 31, 2005 |   
|Change in Assumption                                 |  | Pre-Tax Pension Expense |             |           | PBO               |   
|                                                     |  |                         |             |           |                   |   
|25 basis point decrease in discount rate             |  | +$                      | 150 million |           |                   | +$ | 2.3 billion | 
|25 basis point increase in discount rate             |  | -$                      | 160 million |           |                   | -$ | 2.2 billion | 
|25 basis point decrease in expected return on assets |  | +$                      | 220 million |           |                   |    |            | 
|25 basis point increase in expected return on assets |  | -$                      | 220 million |           |                   |    |            | 









|                                         |  |                |             |  |                   |    |             | 
|---------------------------------------- |  | -------------- | ----------- |  | ----------------- | -- | ----------- | 
|                                         |  | Effect on 2006 |             |  | Effect on         |   
|                                         |  | Pre-Tax OPEB   |             |  | December 31, 2005 |   
|Change in Assumption                     |  | Expense        |             |  | APBO              |   
|                                         |  |                |             |  |                   |   
|25 basis point decrease in discount rate |  | +$             | 220 million |  |                   | +$ | 2.6 billion | 
|25 basis point increase in discount rate |  | -$             | 230 million |  |                   | -$ | 2.4 billion | 



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES




Critical Accounting Estimates  (continued)
















| |   |                                                                                                                                                                                                                                                       
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | GM computes the spread between the yield curve and the swap
    curve (a market-based curve),                                                                                                                                                         
|
| |  | To extrapolate the yield curve for the period beginning after
    the last year where substantial bonds are available in the bond
    universe and ending in year 50, GM adds the spread to the swap
    curve, which is observable over 50 years, and
|
| |  | To extrapolate the yield curve beyond the 50th year, GM
    assumes that the last one-year forward rate on the yield curve
    (at the 49th year) remains constant for the remaining years.                                                           







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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES




Critical Accounting Estimates  (continued)






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





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





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





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





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



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES




Critical Accounting Estimates  (concluded)




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





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








| |                                                                 
| | ----------------------------------------------------------------
| | Accounting for Derivatives and Other Fair Value
    Measurements





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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


New Accounting Standards








Forward-Looking Statements


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




| |   |                                                                                                                                                                                                                                                              
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The ability of GM to realize production efficiencies, to achieve
    reductions in costs as a result of the turnaround restructuring
    and health care cost reductions and to implement capital
    expenditures at levels and times planned by management;
|
| |  | The 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;                                                                                                                                                       

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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES




Forward-Looking Statements  (continued)




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

10-K, 10-Q 8-K.




| |   |                                                                                                                                                                                                                                                                                                                           
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The ability of GM to complete a transaction regarding a
    controlling interest in GMAC while maintaining a significant
    stake in GMAC, securing separate credit ratings and low cost
    funding to sustain growth for GMAC and ResCap, and maintaining
    the mutually beneficial relationship between GMAC and GM;
|
| |  | Significant changes in the competitive environment and the
    effect of competition in the Corporations markets,
    including on the Corporations pricing policies;                                                                                                                                                   
|
| |  | Our ability to maintain adequate financing sources;                                                                                                                                                                                                                                                                       
|
| |  | Our ability to maintain an appropriate level of debt;                                                                                                                                                                                                                                                                     

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GENERAL MOTORS CORPORATION AND SUBSIDIARIES




Forward-Looking Statements  (concluded)




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










|         |                                                               
|-------- | --------------------------------------------------------------
|Item 7A. | Quantitative and Qualitative Disclosures About Market
    Risk







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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES




Quantitative and Qualitative Disclosures About Market
Risk  (concluded)






| |                           
| | --------------------------
| | Foreign Exchange Rate Risk





| |                   
| | ------------------
| | Interest Rate Risk





| |                     
| | --------------------
| | Commodity Price Risk





| |                  
| | -----------------
| | Equity Price Risk



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


Managements Report on Internal Control Over Financial
Reporting












| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (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) | A material weakness was identified related to the fact that
    GMs management did not adequately design the control
    procedures to account for GMs portfolio of vehicles on
    operating lease with daily rental car entities, which was
    impaired at lease inception, and prematurely revalued to reflect
    increased anticipated proceeds upon disposal. This material
    weakness was identified in January, 2006, and remediated by
    discontinuing the premature revaluation of previously recognized
    impairments.

Internal Control/ Integrated Framework




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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


10-K.


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

Limitations on the Effectiveness of Controls




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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM




Internal Control 
Integrated Framework










Internal Control-Integrated Framework Internal Control-Integrated Framework




/s/ Deloitte &
Touche llp





Deloitte & Touche llp






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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM










Accounting for Conditional
Asset Retirement Obligations, Consolidation of Variable Interest Entities, Accounting for Stock-Based Compensation.


Internal Control 
Integrated Framework


/s/ Deloitte &
Touche llp





Deloitte & Touche llp






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##### Table of Contents








|        |                                            
|------- | -------------------------------------------
|Item 8. | Financial Statements and Supplementary Data

GENERAL MOTORS CORPORATION AND SUBSIDIARIES





CONSOLIDATED STATEMENTS OF INCOME


|                                                                                                       |                                                                         |                                       |         |         |      |   |         |         |  |   |         |         |  
|------------------------------------------------------------------------------------------------------ | ----------------------------------------------------------------------- | ------------------------------------- | ------- | ------- | ---- | - | ------- | ------- |  | - | ------- | ------- | -
|                                                                                                       |                                                                         | Years Ended December 31,              |        
|                                                                                                       |                                                                         |                                       |        
|                                                                                                       |                                                                         | 2005                                  |         |         | 2004 |   |         | 2003    | 
|                                                                                                       |                                                                         |                                       |         |         |      |   |         |         | 
|                                                                                                       |                                                                         | (Dollars in millions except per share |        
|                                                                                                       |                                                                         | amounts)                              |        
|GENERAL MOTORS CORPORATION AND SUBSIDIARIES                                                            |                                                                         |                                       |         |         |      |   |         |         |  |   |         |        
|Total net sales and revenues (Notes 1 and 25)                                                          |                                                                         | $                                     | 192,604 |         |      | $ | 193,517 |         |  | $ | 185,837 |        
|                                                                                                       |                                                                         |                                       |         |         |      |   |         |         | 
|Cost of sales and other expenses                                                                       |                                                                         |                                       | 171,033 |         |      |   | 159,957 |         |  |   | 152,419 |        
|Selling, general, and administrative expenses                                                          |                                                                         |                                       | 22,734  |         |      |   | 20,394  |         |  |   | 20,957  |        
|Interest expense                                                                                       |                                                                         |                                       | 15,768  |         |      |   | 11,980  |         |  |   | 9,464   |        
|                                                                                                       |                                                                         |                                       |         |         |      |   |         |         | 
|                                                                                                       | Total costs and expenses                                                |                                       |         | 209,535 |      |   |         | 192,331 |  |   |         | 182,840 |  
|                                                                                                       |                                                                         |                                       |         |         |      |   |         |         | 
|Income (loss) from continuing operations before income taxes,
    equity income and minority interests |                                                                         |                                       | (16,931 | )       |      |   | 1,186   |         |  |   | 2,997   |        
|Income tax (benefit) expense (Note 12)                                                                 |                                                                         |                                       | (5,878  | )       |      |   | (916    | )       |  |   | 710     |        
|Equity income and minority interests                                                                   |                                                                         |                                       | 595     |         |      |   | 702     |         |  |   | 612     |        
|                                                                                                       |                                                                         |                                       |         |         |      |   |         |         | 
|Income (loss) from continuing operations before cumulative
    effect of accounting change             |                                                                         |                                       | (10,458 | )       |      |   | 2,804   |         |  |   | 2,899   |        
|(Loss) from discontinued operations (Note 3)                                                           |                                                                         |                                       |        |         |      |   |        |         |  |   | (219    | )      
|Gain on sale of discontinued operations (Note 3)                                                       |                                                                         |                                       |        |         |      |   |        |         |  |   | 1,179   |        
|Cumulative effect of accounting change (Note 1)                                                        |                                                                         |                                       | (109    | )       |      |   |        |         |  |   |        |        
|                                                                                                       |                                                                         |                                       |         |         |      |   |         |         | 
|                                                                                                       | Net income (loss)                                                       |                                       | $       | (10,567 | )    |   | $       | 2,804   |  |   | $       | 3,859   |  
|                                                                                                       |                                                                         |                                       |         |         |      |   |         |         | 
|Basic earnings (loss) per share attributable to common
    stocks                                      |                                                                         |                                       |         |         |      |   |         |         |  |   |         |        
|$12/3 par value                                                                                        |                                                                         |                                       |         |         |      |   |         |         |  |   |         |        
|                                                                                                       | Continuing operations before cumulative effect of accounting
    change |                                       | $       | (18.50  | )    |   | $       | 4.97    |  |   | $       | 5.17    |  
|                                                                                                       | Discontinued operations                                                 |                                       |         |        |      |   |         |        |  |   |         | 2.14    |  
|                                                                                                       | Cumulative effect of accounting change (Note 1)                         |                                       |         | (0.19   | )    |   |         |        |  |   |         |        |  
|                                                                                                       |                                                                         |                                       |         |         |      |   |         |         | 
|Earnings (loss) per share attributable to
    $12/3 par value                                          |                                                                         | $                                     | (18.69  | )       |      | $ | 4.97    |         |  | $ | 7.31    |        
|                                                                                                       |                                                                         |                                       |         |         |      |   |         |         | 
|(Loss) per share from discontinued operations attributable to                                          |                                                                         |                                       |         |         |      |   |         |         |  |   |         |        
|                                                                                                       | Class H                                                                 |                                       | $       |        |      |   | $       |        |  |   | $       | (0.22   | )
|                                                                                                       |                                                                         |                                       |         |         |      |   |         |         | 
|Earnings (loss) per share attributable to common stocks
    assuming dilution                          |                                                                         |                                       |         |         |      |   |         |         |  |   |         |        
|$12/3 par value                                                                                        |                                                                         |                                       |         |         |      |   |         |         |  |   |         |        
|                                                                                                       | Continuing operations before cumulative effect of accounting
    change |                                       | $       | (18.50  | )    |   | $       | 4.94    |  |   | $       | 5.09    |  
|                                                                                                       | Discontinued operations                                                 |                                       |         |        |      |   |         |        |  |   |         | 2.11    |  
|                                                                                                       | Cumulative effect of accounting change (Note 1)                         |                                       |         | (0.19   | )    |   |         |        |  |   |         |        |  
|                                                                                                       |                                                                         |                                       |         |         |      |   |         |         | 
|Earnings (loss) per share attributable to
    $12/3 par value                                          |                                                                         | $                                     | (18.69  | )       |      | $ | 4.94    |         |  | $ | 7.20    |        
|                                                                                                       |                                                                         |                                       |         |         |      |   |         |         | 
|(Loss) per share from discontinued operations attributable to                                          |                                                                         |                                       |         |         |      |   |         |         |  |   |         |        
|                                                                                                       | Class H                                                                 |                                       | $       |        |      |   | $       |        |  |   | $       | (0.22   | )
|                                                                                                       |                                                                         |                                       |         |         |      |   |         |         | 



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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


SUPPLEMENTAL INFORMATION TO THE CONSOLIDATED STATEMENTS OF
INCOME


|                                                                                                 |                                                         |                          |         |         |      |   |         |         |   |   |         |         | 
|------------------------------------------------------------------------------------------------ | ------------------------------------------------------- | ------------------------ | ------- | ------- | ---- | - | ------- | ------- | - | - | ------- | ------- | 
|                                                                                                 |                                                         | Years Ended December 31, |        
|                                                                                                 |                                                         |                          |        
|                                                                                                 |                                                         | 2005                     |         |         | 2004 |   |         | 2003    |  
|                                                                                                 |                                                         |                          |         |         |      |   |         |         |  
|                                                                                                 |                                                         | (Dollars in millions)    |        
|AUTOMOTIVE AND OTHER OPERATIONS                                                                  |                                                         |                          |         |         |      |   |         |         |   |   |         |        
|Total net sales and revenues (Notes 1 and 25)                                                    |                                                         | $                        | 158,221 |         |      | $ | 161,545 |         |   | $ | 155,831 |        
|                                                                                                 |                                                         |                          |         |         |      |   |         |         |  
|Cost of sales and other expenses                                                                 |                                                         |                          | 162,173 |         |      |   | 150,224 |         |   |   | 143,408 |        
|Selling, general, and administrative expenses                                                    |                                                         |                          | 13,222  |         |      |   | 11,863  |         |   |   | 11,737  |        
|                                                                                                 |                                                         |                          |         |         |      |   |         |         |  
|                                                                                                 | Total costs and expenses                                |                          |         | 175,395 |      |   |         | 162,087 |   |   |         | 155,145 | 
|Interest expense                                                                                 |                                                         |                          | 2,873   |         |      |   | 2,480   |         |   |   | 1,780   |        
|Net expense from transactions with Financing and Insurance
    Operations (Note 1)               |                                                         |                          | 497     |         |      |   | 273     |         |   |   | 297     |        
|                                                                                                 |                                                         |                          |         |         |      |   |         |         |  
|(Loss) from continuing operations before income taxes, equity
    income, and minority interests |                                                         |                          | (20,544 | )       |      |   | (3,295  | )       |   |   | (1,391  | )      
|Income tax (benefit) (Note 12)                                                                   |                                                         |                          | (7,184  | )       |      |   | (2,440  | )       |   |   | (854    | )      
|Equity income (loss) and minority interests                                                      |                                                         |                          | 544     |         |      |   | 710     |         |   |   | 674     |        
|                                                                                                 |                                                         |                          |         |         |      |   |         |         |  
|Income (loss) from continuing operations before cumulative
    effect of accounting change       |                                                         |                          | (12,816 | )       |      |   | (145    | )       |   |   | 137     |        
|(Loss) from discontinued operations (Note 3)                                                     |                                                         |                          |        |         |      |   |        |         |   |   | (219    | )      
|Gain on sale of discontinued operations (Note 3)                                                 |                                                         |                          |        |         |      |   |        |         |   |   | 1,179   |        
|Cumulative effect of accounting change (Note 1)                                                  |                                                         |                          | (109    | )       |      |   |        |         |   |   |        |        
|                                                                                                 |                                                         |                          |         |         |      |   |         |         |  
|                                                                                                 | Net income (loss)  Automotive and Other
    Operations |                          | $       | (12,925 | )    |   | $       | (145    | ) |   | $       | 1,097   | 
|                                                                                                 |                                                         |                          |         |         |      |   |         |         |  
|FINANCING AND INSURANCE OPERATIONS                                                               |                                                         |                          |         |         |      |   |         |         |   |   |         |        
|Total revenues                                                                                   |                                                         | $                        | 34,383  |         |      | $ | 31,972  |         |   | $ | 30,006  |        
|                                                                                                 |                                                         |                          |         |         |      |   |         |         |  
|Interest expense                                                                                 |                                                         |                          | 12,895  |         |      |   | 9,500   |         |   |   | 7,684   |        
|Depreciation and amortization expense (Note 13)                                                  |                                                         |                          | 5,696   |         |      |   | 5,523   |         |   |   | 5,567   |        
|Operating and other expenses                                                                     |                                                         |                          | 9,236   |         |      |   | 8,426   |         |   |   | 8,705   |        
|Provisions for financing and insurance losses                                                    |                                                         |                          | 3,440   |         |      |   | 4,315   |         |   |   | 3,959   |        
|                                                                                                 |                                                         |                          |         |         |      |   |         |         |  
|                                                                                                 | Total costs and expenses                                |                          |         | 31,267  |      |   |         | 27,764  |   |   |         | 25,915  | 
|                                                                                                 |                                                         |                          |         |         |      |   |         |         |  
|Net income from transactions with Automotive and Other
    Operations (Note 1)                   |                                                         |                          | (497    | )       |      |   | (273    | )       |   |   | (297    | )      
|                                                                                                 |                                                         |                          |         |         |      |   |         |         |  
|Income before income taxes, equity income and minority interests                                 |                                                         |                          | 3,613   |         |      |   | 4,481   |         |   |   | 4,388   |        
|Income tax expense (Note 12)                                                                     |                                                         |                          | 1,306   |         |      |   | 1,524   |         |   |   | 1,564   |        
|Equity income (loss) and minority interests                                                      |                                                         |                          | 51      |         |      |   | (8      | )       |   |   | (62     | )      
|                                                                                                 |                                                         |                          |         |         |      |   |         |         |  
|                                                                                                 | Net income  Financing and Insurance Operations         |                          | $       | 2,358   |      |   | $       | 2,949   |   |   | $       | 2,762   | 
|                                                                                                 |                                                         |                          |         |         |      |   |         |         |  





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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES





CONSOLIDATED BALANCE SHEETS


|                                                                                   |                                      |                                      |                            |         |        |        |         |         |        |        | 
|---------------------------------------------------------------------------------- | ------------------------------------ | ------------------------------------ | -------------------------- | ------- | ------ | ------ | ------- | ------- | ------ | ------ | 
|                                                                                   |                                      | December 31,                         |                           
|                                                                                   |                                      |                                      |                           
|                                                                                   |                                      | 2005                                 |                            |         | 2004   |       
|                                                                                   |                                      |                                      |                            |         |        |       
|                                                                                   |                                      | (Dollars in millions)                |                           
|ASSETS                                                                            
|Cash and cash equivalents (Note 1)                                                 |                                      | $                                    | 30,726                     |         |        | $      | 35,993  |        
|Other marketable securities (Note 7)                                               |                                      |                                      | 19,726                     |         |        |        | 21,737  |        
|                                                                                   |                                      |                                      |                            |         |        |       
|                                                                                   | Total cash and marketable securities |                                      |                            | 50,452  |        |        |         | 57,730  |       
|Finance receivables  net (Note 9)                                                 |                                      |                                      | 180,793                    |         |        |        | 199,600 |        
|Loans held for sale                                                                |                                      |                                      | 21,865                     |         |        |        | 19,934  |        
|Accounts and notes receivable (less allowances)                                    |                                      |                                      | 15,578                     |         |        |        | 21,236  |        
|Inventories (less allowances) (Note 10)                                            |                                      |                                      | 14,354                     |         |        |        | 12,247  |        
|Assets held for sale (Note 1)                                                      |                                      |                                      | 19,030                     |         |        |        |        |        
|Deferred income taxes (Note 12)                                                    |                                      |                                      | 29,889                     |         |        |        | 26,559  |        
|Net equipment on operating leases (less accumulated
    depreciation) (Note 11)    |                                      |                                      | 38,187                     |         |        |        | 34,214  |        
|Equity in net assets of nonconsolidated affiliates                                 |                                      |                                      | 3,291                      |         |        |        | 6,776   |        
|Property  net (Note 13)                                                           |                                      |                                      | 40,214                     |         |        |        | 39,020  |        
|Intangible assets  net (Notes 1 and 14)                                           |                                      |                                      | 4,339                      |         |        |        | 4,925   |        
|Other assets (Note 15)                                                             |                                      |                                      | 58,086                     |         |        |        | 57,680  |        
|                                                                                   |                                      |                                      |                            |         |        |       
|                                                                                   | Total assets                         |                                      | $                          | 476,078 |        |        | $       | 479,921 |       
|                                                                                   |                                      |                                      |                            |         |        |       
|LIABILITIES AND STOCKHOLDERS EQUITY                                              
|Accounts payable (principally trade)                                               |                                      | $                                    | 29,913                     |         |        | $      | 28,830  |        
|Notes and loans payable (Note 17)                                                  |                                      |                                      | 285,750                    |         |        |        | 300,279 |        
|Liabilities related to assets held for sale (Note 1)                               |                                      |                                      | 10,941                     |         |        |        |        |        
|Postretirement benefits other than pensions (Note 18)                              |                                      |                                      | 33,997                     |         |        |        | 28,182  |        
|Pensions (Note 18)                                                                 |                                      |                                      | 11,304                     |         |        |        | 9,455   |        
|Deferred income taxes (Notes 12 and 16)                                            |                                      |                                      | 4,477                      |         |        |        | 7,078   |        
|Accrued expenses and other liabilities (Note 16)                                   |                                      |                                      | 84,060                     |         |        |        | 78,340  |        
|                                                                                   |                                      |                                      |                            |         |        |       
|                                                                                   | Total liabilities                    |                                      |                            | 460,442 |        |        |         | 452,164 |       
|Minority interests                                                                 |                                      |                                      | 1,039                      |         |        |        | 397     |        
|Stockholders equity(Note 20)                                                      |                                      |                                      |                            |         |        |        |         |        
|$12/3 par value common stock (outstanding, 565,518,106 and
    565,132,021 shares) |                                      |                                      | 943                        |         |        |        | 942     |        
|Capital surplus (principally additional paid-in capital)                           |                                      |                                      | 15,285                     |         |        |        | 15,241  |        
|Retained earnings                                                                  |                                      |                                      | 2,361                      |         |        |        | 14,062  |        
|                                                                                   |                                      |                                      |                            |         |        |       
|                                                                                   |                                      | Subtotal                             |                            |         | 18,589 |        |         |         | 30,245 |       
|Accumulated foreign currency translation adjustments                               |                                      |                                      | (1,722                     | )       |        |        | (1,194  | )      
|Net unrealized gains on derivatives                                                |                                      |                                      | 733                        |         |        |        | 589     |        
|Net unrealized gains on securities                                                 |                                      |                                      | 786                        |         |        |        | 751     |        
|Minimum pension liability adjustment                                               |                                      |                                      | (3,789                     | )       |        |        | (3,031  | )      
|                                                                                   |                                      |                                      |                            |         |        |       
|                                                                                   |                                      | Accumulated other comprehensive loss |                            |         | (3,992 | )      |         |         | (2,885 | )     
|                                                                                   |                                      |                                      |                            |         |        |       
|                                                                                   |                                      |                                      | Total stockholders equity |         |        | 14,597 |         |         |        | 27,360 | 
|                                                                                   |                                      |                                      |                            |         |        |       
|Total liabilities, minority interests and stockholders
    equity                 |                                      | $                                    | 476,078                    |         |        | $      | 479,921 |        
|                                                                                   |                                      |                                      |                            |         |        |       



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


SUPPLEMENTAL INFORMATION TO THE CONSOLIDATED BALANCE
SHEETS


|                                                                                |                                                      |                       |         |         |         |   |         |         |         | 
|------------------------------------------------------------------------------- | ---------------------------------------------------- | --------------------- | ------- | ------- | ------- | - | ------- | ------- | ------- | 
|                                                                                |                                                      | December 31,          |        
|                                                                                |                                                      |                       |        
|                                                                                |                                                      | 2005                  |         |         | 2004    |  
|                                                                                |                                                      |                       |         |         |         |  
|                                                                                |                                                      | (Dollars in millions) |        
|ASSETS                                                                         
|Automotive and Other Operations                                                 |                                                      |                       |         |         |         |   |         |        
|Cash and cash equivalents (Note 1)                                              |                                                      | $                     | 15,187  |         |         | $ | 13,148  |        
|Marketable securities (Note 7)                                                  |                                                      |                       | 1,416   |         |         |   | 6,655   |        
|                                                                                |                                                      |                       |         |         |         |  
|                                                                                | Total cash and marketable securities                 |                       |         | 16,603  |         |   |         | 19,803  |        
|Accounts and notes receivable (less allowances)                                 |                                                      |                       | 7,758   |         |         |   | 6,713   |        
|Inventories (less allowances) (Note 10)                                         |                                                      |                       | 13,851  |         |         |   | 11,717  |        
|Net equipment on operating leases (less accumulated
    depreciation) (Note 11) |                                                      |                       | 6,993   |         |         |   | 6,488   |        
|Deferred income taxes and other current assets (Note 12)                        |                                                      |                       | 8,877   |         |         |   | 10,794  |        
|                                                                                |                                                      |                       |         |         |         |  
|                                                                                | Total current assets                                 |                       |         | 54,082  |         |   |         | 55,515  |        
|Equity in net assets of nonconsolidated affiliates                              |                                                      |                       | 3,291   |         |         |   | 6,776   |        
|Property  net (Note 13)                                                        |                                                      |                       | 38,466  |         |         |   | 37,170  |        
|Intangible assets  net (Notes 1 and 14)                                        |                                                      |                       | 1,862   |         |         |   | 1,599   |        
|Deferred income taxes (Note 12)                                                 |                                                      |                       | 22,849  |         |         |   | 17,639  |        
|Other assets (Note 15)                                                          |                                                      |                       | 41,103  |         |         |   | 40,844  |        
|                                                                                |                                                      |                       |         |         |         |  
|                                                                                | Total Automotive and Other Operations assets         |                       |         | 161,653 |         |   |         | 159,543 |        
|Financing and Insurance Operations                                              |                                                      |                       |         |         |         |   |         |        
|Cash and cash equivalents (Note 1)                                              |                                                      |                       | 15,539  |         |         |   | 22,845  |        
|Investments in securities (Note 7)                                              |                                                      |                       | 18,310  |         |         |   | 15,082  |        
|Finance receivables  net (Note 9)                                              |                                                      |                       | 180,793 |         |         |   | 199,600 |        
|Loans held for sale                                                             |                                                      |                       | 21,865  |         |         |   | 19,934  |        
|Assets held for sale                                                            |                                                      |                       | 19,030  |         |         |   |        |        
|Net equipment on operating leases (less accumulated
    depreciation) (Note 11) |                                                      |                       | 31,194  |         |         |   | 27,726  |        
|Other assets (Note 15)                                                          |                                                      |                       | 27,694  |         |         |   | 35,191  |        
|Net receivable from Automotive and Other Operations (Note 1)                    |                                                      |                       | 4,452   |         |         |   | 2,426   |        
|                                                                                |                                                      |                       |         |         |         |  
|                                                                                | Total Financing and Insurance Operations assets      |                       |         | 318,877 |         |   |         | 322,804 |        
|                                                                                |                                                      |                       |         |         |         |  
|Total assets                                                                    |                                                      | $                     | 480,530 |         |         | $ | 482,347 |        
|                                                                                |                                                      |                       |         |         |         |  
|LIABILITIES AND STOCKHOLDERS EQUITY                                           
|Automotive and Other Operations                                                 |                                                      |                       |         |         |         |   |         |        
|Accounts payable (principally trade)                                            |                                                      | $                     | 26,182  |         |         | $ | 24,257  |        
|Loans payable (Note 17)                                                         |                                                      |                       | 1,519   |         |         |   | 2,062   |        
|Accrued expenses (Note 16)                                                      |                                                      |                       | 42,665  |         |         |   | 46,202  |        
|Net payable to Financing and Insurance Operations (Note 1)                      |                                                      |                       | 4,452   |         |         |   | 2,426   |        
|                                                                                |                                                      |                       |         |         |         |  
|                                                                                | Total current liabilities                            |                       |         | 74,818  |         |   |         | 74,947  |        
|Long-term debt (Note 17)                                                        |                                                      |                       | 31,014  |         |         |   | 30,460  |        
|Postretirement benefits other than pensions (Note 18)                           |                                                      |                       | 28,990  |         |         |   | 23,477  |        
|Pensions (Note 18)                                                              |                                                      |                       | 11,214  |         |         |   | 9,371   |        
|Other liabilities and deferred income taxes (Notes 12 and
    16)               |                                                      |                       | 22,023  |         |         |   | 16,206  |        
|                                                                                |                                                      |                       |         |         |         |  
|                                                                                | Total Automotive and Other Operations liabilities    |                       |         | 168,059 |         |   |         | 154,461 |        
|Financing and Insurance Operations                                              |                                                      |                       |         |         |         |   |         |        
|Accounts payable                                                                |                                                      |                       | 3,731   |         |         |   | 4,573   |        
|Liabilities related to assets held for sale                                     |                                                      |                       | 10,941  |         |         |   |        |        
|Debt (Note 17)                                                                  |                                                      |                       | 253,217 |         |         |   | 267,757 |        
|Other liabilities and deferred income taxes (Notes 12 and
    16)               |                                                      |                       | 28,946  |         |         |   | 27,799  |        
|                                                                                |                                                      |                       |         |         |         |  
|                                                                                | Total Financing and Insurance Operations liabilities |                       |         | 296,835 |         |   |         | 300,129 |        
|                                                                                |                                                      |                       |         |         |         |  
|                                                                                |                                                      | Total liabilities     |         |         | 464,894 |   |         |         | 454,590 | 
|Minority interests                                                              |                                                      |                       | 1,039   |         |         |   | 397     |        
|                                                                                | Total stockholders equity                           |                       |         | 14,597  |         |   |         | 27,360  |        
|                                                                                |                                                      |                       |         |         |         |  
|Total liabilities, minority interests and stockholders
    equity              |                                                      | $                     | 480,530 |         |         | $ | 482,347 |        
|                                                                                |                                                      |                       |         |         |         |  





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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES





CONSOLIDATED STATEMENTS OF CASH FLOWS


|                                                                                                                   |                                                               |                                  |         |         |      |   |         |        |   |   |         |         |  
|------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------- | -------------------------------- | ------- | ------- | ---- | - | ------- | ------ | - | - | ------- | ------- | -
|                                                                                                                   |                                                               | For the Years Ended December 31, |        
|                                                                                                                   |                                                               |                                  |        
|                                                                                                                   |                                                               | 2005                             |         |         | 2004 |   |         | 2003   |  
|                                                                                                                   |                                                               |                                  |         |         |      |   |         |        |  
|                                                                                                                   |                                                               | (Dollars in millions)            |        
|Cash flows from continuing operating activities                                                                    |                                                               |                                  |         |         |      |   |         |        |   |   |         |        
|Income (Loss) from continuing operations                                                                           |                                                               | $                                | (10,458 | )       |      | $ | 2,804   |        |   | $ | 2,899   |        
|Adjustments to reconcile income (loss) from continuing
    operations to net cash provided by operating activities |                                                               |                                  |         |         |      |   |         |        |   |   |         |        
|                                                                                                                   | Depreciation and amortization expenses                        |                                  |         | 15,769  |      |   |         | 14,152 |   |   |         | 13,513  |  
|                                                                                                                   | Mortgages: servicing rights and premium amortization          |                                  |         | 1,142   |      |   |         | 1,675  |   |   |         | 1,797   |  
|                                                                                                                   | Goodwill impairment                                           |                                  |         | 712     |      |   |         |       |   |   |         |        |  
|                                                                                                                   | Provision for financing losses                                |                                  |         | 1,085   |      |   |         | 1,944  |   |   |         | 1,721   |  
|                                                                                                                   | Net gains on sale of finance receivables                      |                                  |         | (1,695  | )    |   |         | (1,312 | ) |   |         | (2,462  | )
|                                                                                                                   | Other postretirement employee benefit (OPEB) expense          |                                  |         | 5,671   |      |   |         | 4,558  |   |   |         | 4,650   |  
|                                                                                                                   | OPEB payments                                                 |                                  |         | (4,084  | )    |   |         | (3,974 | ) |   |         | (3,536  | )
|                                                                                                                   | VEBA/ 401(h) (contributions)/ withdrawals                     |                                  |         | 3,168   |      |   |         | (8,618 | ) |   |         | (3,000  | )
|                                                                                                                   | Pension expense                                               |                                  |         | 2,496   |      |   |         | 2,456  |   |   |         | 3,412   |  
|                                                                                                                   | Pension contributions                                         |                                  |         | (833    | )    |   |         | (919   | ) |   |         | (18,168 | )
|                                                                                                                   | Retiree lump sum and vehicle voucher expense, net of payments |                                  |         | (264    | )    |   |         | (329   | ) |   |         | 923     |  
|                                                                                                                   | Net change in mortgage loans                                  |                                  |         | (29,119 | )    |   |         | (2,312 | ) |   |         | (4,124  | )
|                                                                                                                   | Net change in mortgage securities                             |                                  |         | (1,155  | )    |   |         | 614    |   |   |         | 233     |  
|                                                                                                                   | Change in other investments and miscellaneous assets          |                                  |         | (653    | )    |   |         | 83     |   |   |         | 409     |  
|                                                                                                                   | Change in other operating assets and liabilities              |                                  |         | (1,183  | )    |   |         | (1,644 | ) |   |         | (2,358  | )
|                                                                                                                   | Other                                                         |                                  |         | 2,545   |      |   |         | 178    |   |   |         | 915     |  
|                                                                                                                   |                                                               |                                  |         |         |      |   |         |        |  
|Net cash provided by (used in) continuing operating
    activities                                                 |                                                               | $                                | (16,856 | )       |      | $ | 9,356   |        |   | $ | (3,176  | )      
|                                                                                                                   |                                                               |                                  |         |         |      |   |         |        |  
|Cash flows from continuing investing activities                                                                    |                                                               |                                  |         |         |      |   |         |        |   |   |         |        
|Expenditures for property                                                                                          |                                                               |                                  | (8,179  | )       |      |   | (7,753  | )      |   |   | (7,091  | )      
|Investments in marketable securities  acquisitions                                                                |                                                               |                                  | (21,800 | )       |      |   | (15,278 | )      |   |   | (28,660 | )      
|Investments in marketable securities  liquidations                                                                |                                                               |                                  | 22,537  |         |      |   | 15,911  |        |   |   | 24,253  |        
|Net change in mortgage servicing rights                                                                            |                                                               |                                  | (267    | )       |      |   | (326    | )      |   |   | (513    | )      
|Increase in finance receivables                                                                                    |                                                               |                                  | (6,582  | )       |      |   | (38,673 | )      |   |   | (56,119 | )      
|Proceeds from sale of finance receivables                                                                          |                                                               |                                  | 31,652  |         |      |   | 23,385  |        |   |   | 22,182  |        
|Proceeds from sale of business units/equity investments                                                            |                                                               |                                  | 846     |         |      |   |        |        |   |   | 4,148   |        
|Dividends received from discontinued operations                                                                    |                                                               |                                  |        |         |      |   |        |        |   |   | 275     |        
|Operating leases  acquisitions                                                                                    |                                                               |                                  | (15,496 | )       |      |   | (14,324 | )      |   |   | (11,032 | )      
|Operating leases  liquidations                                                                                    |                                                               |                                  | 5,362   |         |      |   | 7,696   |        |   |   | 9,604   |        
|Investments in companies, net of cash acquired                                                                     |                                                               |                                  | 1,355   |         |      |   | (60     | )      |   |   | (201    | )      
|Other                                                                                                              |                                                               |                                  | (863    | )       |      |   | 1,359   |        |   |   | (1,287  | )      
|                                                                                                                   |                                                               |                                  |         |         |      |   |         |        |  
|Net cash provided by (used in) continuing investing
    activities                                                 |                                                               |                                  | 8,565   |         |      |   | (28,063 | )      |   |   | (44,441 | )      
|                                                                                                                   |                                                               |                                  |         |         |      |   |         |        |  
|Cash flows from continuing financing activities                                                                    |                                                               |                                  |         |         |      |   |         |        |   |   |         |        
|Net increase (decrease) in loans payable                                                                           |                                                               |                                  | (10,126 | )       |      |   | 2,192   |        |   |   | 235     |        
|Long-term debt  borrowings                                                                                        |                                                               |                                  | 78,276  |         |      |   | 73,511  |        |   |   | 97,391  |        
|Long-term debt  repayments                                                                                        |                                                               |                                  | (69,566 | )       |      |   | (57,822 | )      |   |   | (38,962 | )      
|Proceeds from sales of treasury stocks                                                                             |                                                               |                                  |        |         |      |   |        |        |   |   | 60      |        
|Cash dividends paid to stockholders                                                                                |                                                               |                                  | (1,134  | )       |      |   | (1,129  | )      |   |   | (1,121  | )      
|Other                                                                                                              |                                                               |                                  | 6,030   |         |      |   | 4,723   |        |   |   | 1,319   |        
|                                                                                                                   |                                                               |                                  |         |         |      |   |         |        |  
|Net cash provided by continuing financing activities                                                               |                                                               |                                  | 3,480   |         |      |   | 21,475  |        |   |   | 58,922  |        
|                                                                                                                   |                                                               |                                  |         |         |      |   |         |        |  
|Effect of exchange rate changes on cash and cash equivalents                                                       |                                                               |                                  | (85     | )       |      |   | 671     |        |   |   | 929     |        
|                                                                                                                   |                                                               |                                  |         |         |      |   |         |        |  
|Net increase (decrease) in cash and cash equivalents                                                               |                                                               |                                  | (4,896  | )       |      |   | 3,439   |        |   |   | 12,234  |        
|Cash and cash equivalents reclassified to Assets Held for Sale                                                     |                                                               |                                  | (371    | )       |      |   |        |        |   |   |        |        
|Cash and cash equivalents at beginning of the year                                                                 |                                                               |                                  | 35,993  |         |      |   | 32,554  |        |   |   | 20,320  |        
|                                                                                                                   |                                                               |                                  |         |         |      |   |         |        |  
|Cash and cash equivalents at end of the year                                                                       |                                                               | $                                | 30,726  |         |      | $ | 35,993  |        |   | $ | 32,554  |        
|                                                                                                                   |                                                               |                                  |         |         |      |   |         |        |  
|Net cash provided by operating activities of discontinued
    operations                                           |                                                               |                                  |        |         |      |   |        |        |   |   | 846     |        
|Net cash used in investing activities of discontinued operations                                                   |                                                               |                                  |        |         |      |   |        |        |   |   | (629    | )      
|Net cash provided by financing activities of discontinued
    operations                                           |                                                               |                                  |        |         |      |   |        |        |   |   | 918     |        
|                                                                                                                   |                                                               |                                  |         |         |      |   |         |        |  
|Net increase in cash and cash equivalents of discontinued
    operations                                           |                                                               |                                  |        |         |      |   |        |        |   |   | 1,135   |        
|Cash retained by discontinued operations upon disposal                                                             |                                                               |                                  |         |         |      |   |         |        |   |   | (2,216  | )      
|Cash reclassified as Assets of Discontinued Operations at
    beginning of year                                    |                                                               |                                  |        |         |      |   |        |        |   |   | 1,081   |        
|                                                                                                                   |                                                               |                                  |         |         |      |   |         |        |  
|Cash included in Assets of Discontinued Operations at end of
    year                                              |                                                               | $                                |        |         |      | $ |        |        |   | $ |        |        



II-57



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


SUPPLEMENTAL INFORMATION TO THE CONSOLIDATED STATEMENTS OF
CASH FLOWS


|                                                                                                                                                                                                                |                                                                                                     |                                  |         |        |              |                       |         |            |   |   |           |        |   |            |         |        |           |   |         |         |   |   |         |        |  
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------- | -------------------------------- | ------- | ------ | ------------ | --------------------- | ------- | ---------- | - | - | --------- | ------ | - | ---------- | ------- | ------ | --------- | - | ------- | ------- | - | - | ------- | ------ | -
|                                                                                                                                                                                                                |                                                                                                     | For the Years Ended December 31, |        
|                                                                                                                                                                                                                |                                                                                                     |                                  |        
|                                                                                                                                                                                                                |                                                                                                     | 2005                             |         |        | 2004         |                       |         | 2003       |  
|                                                                                                                                                                                                                |                                                                                                     |                                  |         |        |              |                       |         |            |  
|                                                                                                                                                                                                                |                                                                                                     | Automotive                       |         |        | Financing    |                       |         | Automotive |   |   | Financing |        |   | Automotive |         |        | Financing |  
|                                                                                                                                                                                                                |                                                                                                     | and Other                        |         |        | and          |                       |         | and Other  |   |   | and       |        |   | and Other  |         |        | and       |  
|                                                                                                                                                                                                                |                                                                                                     | Operations                       |         |        | Insurance(a) |                       |         | Operations |   |   | Insurance |        |   | Operations |         |        | Insurance |  
|                                                                                                                                                                                                                |                                                                                                     |                                  |         |        |              |                       |         |            |   |   |           |        |   |            |         |        |           |  
|                                                                                                                                                                                                                |                                                                                                     |                                  |         |        |              | (Dollars in millions) |         |            |   |   |          
|Cash flows from continuing operating activities                                                                                                                                                                 |                                                                                                     |                                  |         |        |              |                       |         |            |   |   |           |        |   |            |         |        |           |   |         |         |   |   |         |       
|Income (loss) from continuing operations before cumulative
    effect of accounting change                                                                                                                      |                                                                                                     | $                                | (12,816 | )      |              | $                     | 2,358   |            |   | $ | (145      | )      |   | $          | 2,949   |        |           | $ | 137     |         |   | $ | 2,762   |       
|Adjustments to reconcile income (loss) from continuing
    operations before cumulative effect of accounting change to net
    cash provided by operating activities
    Depreciation and amortization expenses |                                                                                                     |                                  | 10,073  |        |              |                       | 5,696   |            |   |   | 8,629     |        |   |            | 5,523   |        |           |   | 7,946   |         |   |   | 5,567   |       
|                                                                                                                                                                                                                | Mortgages: servicing rights and premium amortization                                                |                                  |         |       |              |                       |         | 1,142      |   |   |           |       |   |            |         | 1,675  |           |   |         |        |   |   |         | 1,797  |  
|                                                                                                                                                                                                                | Goodwill impairment                                                                                 |                                  |         |       |              |                       |         | 712        |   |   |           |       |   |            |         |       |           |   |         |        |   |   |         |       |  
|                                                                                                                                                                                                                | Provision for financing losses                                                                      |                                  |         |       |              |                       |         | 1,085      |   |   |           |       |   |            |         | 1,944  |           |   |         |        |   |   |         | 1,721  |  
|                                                                                                                                                                                                                | Net gains on sale of finance receivables                                                            |                                  |         |       |              |                       |         | (1,695     | ) |   |           |       |   |            |         | (1,312 | )         |   |         |        |   |   |         | (2,462 | )
|                                                                                                                                                                                                                | Postretirement benefits other than pensions, net of payments and
    VEBA contributions/withdrawals |                                  |         | 4,717  |              |                       |         | 38         |   |   |           | (8,048 | ) |            |         | 14     |           |   |         | (1,906  | ) |   |         | 20     |  
|                                                                                                                                                                                                                | Pension expense, net of contributions                                                               |                                  |         | 1,385  |              |                       |         | 14         |   |   |           | 1,174  |   |            |         | 34     |           |   |         | (13,869 | ) |   |         | 36     |  
|                                                                                                                                                                                                                | Net change in mortgage loans                                                                        |                                  |         |       |              |                       |         | (29,119    | ) |   |           |       |   |            |         | (2,312 | )         |   |         |        |   |   |         | (4,124 | )
|                                                                                                                                                                                                                | Net change in mortgage securities                                                                   |                                  |         |       |              |                       |         | (1,155     | ) |   |           |       |   |            |         | 614    |           |   |         |        |   |   |         | 233    |  
|                                                                                                                                                                                                                | Change in other investments and miscellaneous assets                                                |                                  |         | 173    |              |                       |         | (826       | ) |   |           | (22    | ) |            |         | 105    |           |   |         | (207    | ) |   |         | 616    |  
|                                                                                                                                                                                                                | Change in other operating assets and liabilities                                                    |                                  |         | (5,466 | )            |                       |         | 4,283      |   |   |           | (268   | ) |            |         | (1,376 | )         |   |         | 2,921   |   |   |         | (5,279 | )
|                                                                                                                                                                                                                | Other                                                                                               |                                  |         | 1,970  |              |                       |         | 575        |   |   |           | (102   | ) |            |         | 280    |           |   |         | (348    | ) |   |         | 1,263  |  
|                                                                                                                                                                                                                |                                                                                                     |                                  |         |        |              |                       |         |            |   |   |           |        |   |            |         |        |           |  
|Net cash provided by (used in) continuing operating
    activities                                                                                                                                              |                                                                                                     | $                                | 36      |        |              | $                     | (16,892 | )          |   | $ | 1,218     |        |   | $          | 8,138   |        |           | $ | (5,326  | )       |   | $ | 2,150   |       
|                                                                                                                                                                                                                |                                                                                                     |                                  |         |        |              |                       |         |            |   |   |           |        |   |            |         |        |           |  
|Cash flows from continuing investing activities                                                                                                                                                                 |                                                                                                     |                                  |         |        |              |                       |         |            |   |   |           |        |   |            |         |        |           |   |         |         |   |   |         |       
|Expenditures for property                                                                                                                                                                                       |                                                                                                     |                                  | (7,896  | )      |              |                       | (283    | )          |   |   | (7,284    | )      |   |            | (469    | )      |           |   | (6,616  | )       |   |   | (475    | )     
|Investments in marketable securities  acquisitions                                                                                                                                                             |                                                                                                     |                                  | (2,616  | )      |              |                       | (19,184 | )          |   |   | (2,209    | )      |   |            | (13,069 | )      |           |   | (13,138 | )       |   |   | (15,522 | )     
|Investments in marketable securities  liquidations                                                                                                                                                             |                                                                                                     |                                  | 7,663   |        |              |                       | 14,874  |            |   |   | 4,609     |        |   |            | 11,302  |        |           |   | 7,109   |         |   |   | 17,144  |       
|Net change in mortgage servicing rights                                                                                                                                                                         |                                                                                                     |                                  |        |        |              |                       | (267    | )          |   |   |          |        |   |            | (326    | )      |           |   |        |         |   |   | (513    | )     
|Increase in finance receivables                                                                                                                                                                                 |                                                                                                     |                                  |        |        |              |                       | (6,582  | )          |   |   |          |        |   |            | (38,673 | )      |           |   |        |         |   |   | (56,119 | )     
|Proceeds from sales of finance receivables                                                                                                                                                                      |                                                                                                     |                                  |        |        |              |                       | 31,652  |            |   |   |          |        |   |            | 23,385  |        |           |   |        |         |   |   | 22,182  |       
|Proceeds from sale of business units/ equity investments                                                                                                                                                        |                                                                                                     |                                  | 846     |        |              |                       |        |            |   |   |          |        |   |            |        |        |           |   | 4,148   |         |   |   |        |       
|Dividends received from discontinued operations                                                                                                                                                                 |                                                                                                     |                                  |        |        |              |                       |        |            |   |   |          |        |   |            |        |        |           |   | 275     |         |   |   |        |       
|Operating leases  acquisitions                                                                                                                                                                                 |                                                                                                     |                                  |        |        |              |                       | (15,496 | )          |   |   |          |        |   |            | (14,324 | )      |           |   |        |         |   |   | (11,032 | )     
|Operating leases  liquidations                                                                                                                                                                                 |                                                                                                     |                                  |        |        |              |                       | 5,362   |            |   |   |          |        |   |            | 7,696   |        |           |   |        |         |   |   | 9,604   |       
|Investments in companies, net of cash acquired                                                                                                                                                                  |                                                                                                     |                                  | 1,357   |        |              |                       | (2      | )          |   |   | (48       | )      |   |            | (12     | )      |           |   | (57     | )       |   |   | (144    | )     
|Net investing activity with FIO                                                                                                                                                                                 |                                                                                                     |                                  | 2,500   |        |              |                       |        |            |   |   | 1,500     |        |   |            |        |        |           |   | 1,000   |         |   |   |        |       
|Other                                                                                                                                                                                                           |                                                                                                     |                                  | 640     |        |              |                       | (1,503  | )          |   |   | 882       |        |   |            | 477     |        |           |   | 332     |         |   |   | (1,619  | )     
|                                                                                                                                                                                                                |                                                                                                     |                                  |         |        |              |                       |         |            |   |   |           |        |   |            |         |        |           |  
|Net cash provided by (used in) continuing investing
    activities                                                                                                                                              |                                                                                                     |                                  | 2,494   |        |              |                       | 8,571   |            |   |   | (2,550    | )      |   |            | (24,013 | )      |           |   | (6,947  | )       |   |   | (36,494 | )     
|                                                                                                                                                                                                                |                                                                                                     |                                  |         |        |              |                       |         |            |   |   |           |        |   |            |         |        |           |  
|Cash flows from continuing financing activities                                                                                                                                                                 |                                                                                                     |                                  |         |        |              |                       |         |            |   |   |           |        |   |            |         |        |           |   |         |         |   |   |         |       
|Net increase (decrease) in loans payable                                                                                                                                                                        |                                                                                                     |                                  | (177    | )      |              |                       | (9,949  | )          |   |   | (803      | )      |   |            | 2,995   |        |           |   | (234    | )       |   |   | 469     |       
|Long-term debt  borrowings                                                                                                                                                                                     |                                                                                                     |                                  | 386     |        |              |                       | 77,890  |            |   |   | 758       |        |   |            | 72,753  |        |           |   | 14,785  |         |   |   | 82,606  |       
|Long-term debt  repayments                                                                                                                                                                                     |                                                                                                     |                                  | (46     | )      |              |                       | (69,520 | )          |   |   | (79       | )      |   |            | (57,743 | )      |           |   | (19     | )       |   |   | (38,943 | )     
|Net financing activity with Auto and Other                                                                                                                                                                      |                                                                                                     |                                  |        |        |              |                       | (2,500  | )          |   |   |          |        |   |            | (1,500  | )      |           |   |        |         |   |   | (1,000  | )     
|Proceeds from sales of treasury stocks                                                                                                                                                                          |                                                                                                     |                                  |        |        |              |                       |        |            |   |   |          |        |   |            |        |        |           |   | 60      |         |   |   |        |       
|Cash dividends paid to stockholders                                                                                                                                                                             |                                                                                                     |                                  | (1,134  | )      |              |                       |        |            |   |   | (1,129    | )      |   |            |        |        |           |   | (1,121  | )       |   |   |        |       
|Other                                                                                                                                                                                                           |                                                                                                     |                                  |        |        |              |                       | 6,030   |            |   |   |          |        |   |            | 4,723   |        |           |   |        |         |   |   | 1,319   |       
|                                                                                                                                                                                                                |                                                                                                     |                                  |         |        |              |                       |         |            |   |   |           |        |   |            |         |        |           |  
|Net cash provided by (used in) continuing financing
    activities                                                                                                                                              |                                                                                                     |                                  | (971    | )      |              |                       | 1,951   |            |   |   | (1,253    | )      |   |            | 21,228  |        |           |   | 13,471  |         |   |   | 44,451  |       
|                                                                                                                                                                                                                |                                                                                                     |                                  |         |        |              |                       |         |            |   |   |           |        |   |            |         |        |           |  
|Effect of exchange rate changes on cash and cash equivalents                                                                                                                                                    |                                                                                                     |                                  | (40     | )      |              |                       | (45     | )          |   |   | 375       |        |   |            | 296     |        |           |   | 661     |         |   |   | 268     |       
|Net transactions with Automotive/ Financing Operations                                                                                                                                                          |                                                                                                     |                                  | 520     |        |              |                       | (520    | )          |   |   | 934       |        |   |            | (934    | )      |           |   | 403     |         |   |   | (403    | )     
|                                                                                                                                                                                                                |                                                                                                     |                                  |         |        |              |                       |         |            |   |   |           |        |   |            |         |        |           |  
|Net increase (decrease) in cash and cash equivalents                                                                                                                                                            |                                                                                                     |                                  | 2,039   |        |              |                       | (6,935  | )          |   |   | (1,276    | )      |   |            | 4,715   |        |           |   | 2,262   |         |   |   | 9,972   |       
|Cash and cash equivalents reclassified to Assets Held for Sale                                                                                                                                                  |                                                                                                     |                                  |        |        |              |                       | (371    | )          |   |   |          |        |   |            |        |        |           |   |        |         |   |   |        |       
|                                                                                                                                                                                                                |                                                                                                     |                                  |         |        |              |                       |         |            |   |   |           |        |   |            |         |        |           |  
|Cash and cash equivalents at beginning of the year                                                                                                                                                              |                                                                                                     |                                  | 13,148  |        |              |                       | 22,845  |            |   |   | 14,424    |        |   |            | 18,130  |        |           |   | 12,162  |         |   |   | 8,158   |       
|                                                                                                                                                                                                                |                                                                                                     |                                  |         |        |              |                       |         |            |   |   |           |        |   |            |         |        |           |  
|Cash and cash equivalents at end of the year                                                                                                                                                                    |                                                                                                     | $                                | 15,187  |        |              | $                     | 15,539  |            |   | $ | 13,148    |        |   | $          | 22,845  |        |           | $ | 14,424  |         |   | $ | 18,130  |       
|                                                                                                                                                                                                                |                                                                                                     |                                  |         |        |              |                       |         |            |   |   |           |        |   |            |         |        |           |  





II-58



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES





CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY


FOR THE YEARS ENDED DECEMBER 31, 2005, 2004, AND 2003


|                                       |                             |                                          |                            |                      |         |   |        |               |   |             |          |         |        |               |         |         |               |   |         |   |   |        |        |         |   |        |   | 
|-------------------------------------- | --------------------------- | ---------------------------------------- | -------------------------- | -------------------- | ------- | - | ------ | ------------- | - | ----------- | -------- | ------- | ------ | ------------- | ------- | ------- | ------------- | - | ------- | - | - | ------ | ------ | ------- | - | ------ | - | 
|                                       |                             |                                          |                            |                      |         |   |        |               |   | Accumulated |          |         |       
|                                       |                             | Total                                    |                            |                      |         |   |        |               |   |             | Other    |         |        | Total         |        
|                                       |                             | Capital                                  |                            |                      | Capital |   |        | Comprehensive |   |             | Retained |         |        | Comprehensive |         |         | Stockholders |  
|                                       |                             | Stock                                    |                            |                      | Surplus |   |        | Income (Loss) |   |             | Earnings |         |        | Income (Loss) |         |         | Equity        |  
|                                       |                             |                                          |                            |                      |         |   |        |               |   |             |          |         |        |               |         |         |               |  
|                                       |                             | (Dollars in millions)                    |                           
|Balance at January 1, 2003             |                             | $                                        | 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 3) |                             |                                          | (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 |        
|Shares issued                          |                             |                                          | 1                          |                      |         |   | 102    |               |   |             |          |         |        |               |        |         |               |   |        |   |   |        | 103    |        
|Comprehensive income:                  |                             |                                          |                            |                      |         |   |        |               |   |             |          |         |        |               |         |         |               |   |         |   |   |        |        |        
|                                       | Net (loss) income           |                                          |                            |                     |         |   |        |              |   |             | $        | (10,567 | )      |               |         | (10,567 | )             |   |         |  |   |        |        | (10,567 | )
|                                       |                             |                                          |                            |                      |         |   |        |               |   |             |          |         |        |               |         |         |               |  
|                                       | Other comprehensive income: |                                          |                            |                      |         |   |        |               |   |             |          |         |        |               |         |         |               |   |         |   |   |        |        |         |  
|                                       |                             | Foreign currency translation adjustments |                            |                      |        |   |        |               |  |             |          |         | (528   | )             |         |         |              |   |         |   |  |        |        |         |  |       
|                                       |                             | Unrealized gains on derivatives          |                            |                      |        |   |        |               |  |             |          |         | 144    |               |         |         |              |   |         |   |  |        |        |         |  |       
|                                       |                             | Unrealized gains on securities           |                            |                      |        |   |        |               |  |             |          |         | 35     |               |         |         |              |   |         |   |  |        |        |         |  |       
|                                       |                             | Minimum pension liability adjustment     |                            |                      |        |   |        |               |  |             |          |         | (758   | )             |         |         |              |   |         |   |  |        |        |         |  |       
|                                       |                             |                                          |                            |                      |         |   |        |               |   |             |          |         |        |               |         |         |               |  
|                                       |                             |                                          | Other comprehensive income |                      |         |  |        |               |   |            |          |         |        | (1,107        | )       |         |               |  |         |   |   | (1,107 | )      |         |   | (1,107 | )
|                                       |                             |                                          |                            |                      |         |   |        |               |   |             |          |         |        |               |         |         |               |  
|                                       |                             |                                          |                            | Comprehensive income |         |   |       |               |   |             |         |         |        | $             | (11,674 | )       |               |   |        |   |   |        |       |         |   |        |  | 
|                                       |                             |                                          |                            |                      |         |   |        |               |   |             |          |         |        |               |         |         |               |  
|Stock Options                          |                             |                                          |                            |                      |         |   | (58    | )             |   |             |          |         |        |               |         |         |               |   |         |   |   |        | (58    | )      
|Cash dividends                         |                             |                                          |                           |                      |         |   |       |               |   |             |          |         |        |               | (1,134  | )       |               |   |        |   |   |        | (1,134 | )      
|                                       |                             |                                          |                            |                      |         |   |        |               |   |             |          |         |        |               |         |         |               |  
|Balance at December 31, 2005           |                             | $                                        | 943                        |                      |         | $ | 15,285 |               |   |             |          |         |        | $             | 2,361   |         |               | $ | (3,992  | ) |   | $      | 14,597 |        
|                                       |                             |                                          |                            |                      |         |   |        |               |   |             |          |         |        |               |         |         |               |  






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



II-59



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES





NOTES TO CONSOLIDATED FINANCIAL STATEMENTS




|        |                                
|------- | -------------------------------
|Note 1. | Significant Accounting Policies



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

10-K






| |                                                                                         
| | ----------------------------------------------------------------------------------------
| | 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.





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





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



II-60



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|        |                                                  
|------- | -------------------------------------------------
|Note 1. | Significant Accounting
    Policies  (continued)











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





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







| |                               
| | ------------------------------
| | Goodwill and Other Intangibles



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|        |                                                  
|------- | -------------------------------------------------
|Note 1. | Significant Accounting
    Policies  (continued)







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





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





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





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



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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, |      
|                                                                                                         |                                             |                          |      
|Automotive and Other Operations                                                                          |                                             | 2005                     |       |        | 2004   |   |       | 2003   |     
|                                                                                                         |                                             |                          |       |        |        |   |       |        |     
|                                                                                                         |                                             | (Dollars in millions)    |      
|Increase (decrease) in cash due to changes in other operating
    assets and liabilities was as follows: |                                             |                          |       |        |        |   |       |        |      |   |       |       
|                                                                                                         | Accounts receivable                         |                          | $     | 59     |        |   | $     | (284   | )    |   | $     | (575   | )    
|                                                                                                         | Prepaid expenses and other deferred charges |                          |       | (83    | )      |   |       | 42     |      |   |       | (578   | )    
|                                                                                                         | Inventories                                 |                          |       | (1,484 | )      |   |       | (156   | )    |   |       | (518   | )    
|                                                                                                         | Accounts payable                            |                          |       | 249    |        |   |       | 1,723  |      |   |       | 2,400  |      
|                                                                                                         | Deferred taxes and income taxes payable     |                          |       | (6,069 | )      |   |       | (444   | )    |   |       | 2,235  |      
|                                                                                                         | Accrued expenses and other liabilities      |                          |       | 3,935  |        |   |       | 11     |      |   |       | 2,887  |      
|                                                                                                         | Fleet rental  acquisitions                 |                          |       | (9,452 | )      |   |       | (7,846 | )    |   |       | (7,761 | )    
|                                                                                                         | Fleet rental  liquidations                 |                          |       | 7,379  |        |   |       | 6,686  |      |   |       | 4,831  |      
|                                                                                                         |                                             |                          |       |        |        |   |       |        |     
|                                                                                                         |                                             | Total                    |       | $      | (5,466 | ) |       | $      | (268 | ) |       | $      | 2,921 | 
|                                                                                                         |                                             |                          |       |        |        |   |       |        |     
|Cash paid for interest                                                                                   |                                             | $                        | 2,790 |        |        | $ | 2,508 |        |      | $ | 1,398 |       





|                                                                                                         |                                         |                          |        |       |       |   |       |        |        |   |       |        |        |  
|-------------------------------------------------------------------------------------------------------- | --------------------------------------- | ------------------------ | ------ | ----- | ----- | - | ----- | ------ | ------ | - | ----- | ------ | ------ | -
|                                                                                                         |                                         | Years Ended December 31, |       
|                                                                                                         |                                         |                          |       
|Financing and Insurance Operations                                                                       |                                         | 2005                     |        |       | 2004  |   |       | 2003   |       
|                                                                                                         |                                         |                          |        |       |       |   |       |        |       
|                                                                                                         |                                         | (Dollars in millions)    |       
|Increase (decrease) in cash due to changes in other operating
    assets and liabilities was as follows: |                                         |                          |        |       |       |   |       |        |        |   |       |       
|                                                                                                         | Other receivables                       |                          | $      | 4,092 |       |   | $     | 419    |        |   | $     | (5,236 | )     
|                                                                                                         | Other assets                            |                          |        | 48    |       |   |       | (111   | )      |   |       | 186    |       
|                                                                                                         | Accounts payable and other liabilities  |                          |        | 332   |       |   |       | (1,173 | )      |   |       | 1,765  |       
|                                                                                                         | Deferred taxes and income taxes payable |                          |        | (189  | )     |   |       | (511   | )      |   |       | (1,994 | )     
|                                                                                                         |                                         |                          |        |       |       |   |       |        |       
|                                                                                                         |                                         | Total                    |        | $     | 4,283 |   |       | $      | (1,376 | ) |       | $      | (5,279 | )
|                                                                                                         |                                         |                          |        |       |       |   |       |        |       
|Cash paid for interest                                                                                   |                                         | $                        | 13,025 |       |       | $ | 8,887 |        |        | $ | 6,965 |       



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|        |                                                  
|------- | -------------------------------------------------
|Note 1. | Significant Accounting
    Policies  (continued)



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







| |                                                   
| | --------------------------------------------------
| | Assets and Liabilities Classified as Held for Sale



|                                            |                                      |                                                   |       |        |        | 
|------------------------------------------- | ------------------------------------ | ------------------------------------------------- | ----- | ------ | ------ | 
|Cash and cash equivalents                   |                                      | $                                                 | 371   |       
|Marketable securities                       |                                      |                                                   | 2,295 |       
|                                            |                                      |                                                   |      
|                                            | Total cash and marketable securities |                                                   |       | 2,666  |       
|Finance receivables  net                   |                                      |                                                   | 2,990 |       
|Loans held for sale                         |                                      |                                                   | 9,019 |       
|Other assets                                |                                      |                                                   | 4,355 |       
|                                            |                                      |                                                   |      
|                                            | Total assets held for sale           |                                                   | $     | 19,030 |       
|                                            |                                      |                                                   |      
|Accounts payable                            |                                      | $                                                 | 794   |       
|Debt                                        |                                      |                                                   | 3,519 |       
|Deferred income taxes and other liabilities |                                      |                                                   | 6,628 |       
|                                            |                                      |                                                   |      
|                                            |                                      | Total liabilities related to assets held for sale |       | $      | 10,941 | 
|                                            |                                      |                                                   |      



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





II-64



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|        |                                                  
|------- | -------------------------------------------------
|Note 1. | Significant Accounting
    Policies  (continued)

12-month


Change in Accounting Principle: Conditional Asset Retirement
Obligations




|                                                                |                      |                          |         |        |      |   |       |      |  |   |       |      | 
|--------------------------------------------------------------- | -------------------- | ------------------------ | ------- | ------ | ---- | - | ----- | ---- |  | - | ----- | ---- | 
|                                                                |                      | Years Ended December 31, |        
|                                                                |                      |                          |        
|                                                                |                      | 2005                     |         |        | 2004 |   |       | 2003 | 
|                                                                |                      |                          |         |        |      |   |       |      | 
|Net income (loss) as reported                                   |                      | $                        | (10,567 | )      |      | $ | 2,804 |      |  | $ | 3,859 |     
|Add: FIN 47 cumulative effect, net of tax                       |                      |                          | 109     |        |      |   |      |      |  |   |      |     
|Less: FIN 47 depreciation and accretion expense, net of tax     |                      |                          | (16     | )      |      |   | (14   | )    |  |   | (13   | )   
|                                                                |                      |                          |         |        |      |   |       |      | 
|Pro forma net income (loss)                                     |                      | $                        | (10,474 | )      |      | $ | 2,790 |      |  | $ | 3,846 |     
|                                                                |                      |                          |         |        |      |   |       |      | 
|Earnings (loss) per share                                       |                      |                          |         |        |      |   |       |      |  |   |       |     
|                                                                | Basic: As reported   |                          | $       | (18.69 | )    |   | $     | 4.97 |  |   | $     | 7.31 | 
|                                                                |                      |                          |         |        |      |   |       |      | 
|                                                                | Pro forma            |                          | $       | (18.52 | )    |   | $     | 4.94 |  |   | $     | 7.29 | 
|                                                                |                      |                          |         |        |      |   |       |      | 
|                                                                | Diluted: As reported |                          | $       | (18.69 | )    |   | $     | 4.94 |  |   | $     | 7.20 | 
|                                                                |                      |                          |         |        |      |   |       |      | 
|                                                                | Pro forma            |                          | $       | (18.52 | )    |   | $     | 4.92 |  |   | $     | 7.18 | 
|                                                                |                      |                          |         |        |      |   |       |      | 
|Pro forma asset retirement obligation  net, as of
    year-end |                      | $                        | 181     |        |      | $ | 159   |      |  | $ | 140   |     
|                                                                |                      |                          |         |        |      |   |       |      | 

New Accounting Standards




II-65



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|        |                                                  
|------- | -------------------------------------------------
|Note 1. | Significant Accounting
    Policies  (continued)





|                                                                                                                                           |                                                                                                  |                          |         |   |        |   |       |      |      |   |       |   |      | 
|------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------ | ------------------------ | ------- | - | ------ | - | ----- | ---- | ---- | - | ----- | - | ---- | 
|                                                                                                                                           |                                                                                                  | Years Ended December 31, |        
|                                                                                                                                           |                                                                                                  |                          |        
|                                                                                                                                           |                                                                                                  | 2005                     |         |   | 2004   |   |       | 2003 |     
|                                                                                                                                           |                                                                                                  |                          |         |   |        |   |       |      |     
|Income (loss) from continuing operations before cumulative
    effect of accounting change                                                 |                                                                                                  | $                        | (10,458 | ) |        | $ | 2,804 |      |      | $ | 2,899 |  
|Add: stock-based compensation expense, included in reported net
    income, net of related tax effects                                     |                                                                                                  |                          | 58      |   |        |   | 38    |      |      |   | 142   |  
|Deduct: total stock-based compensation expense determined under
    fair value based method for all awards, net of related tax
    effects |                                                                                                  |                          | (58     | ) |        |   | (52   | )    |      |   | (195  | )
|                                                                                                                                           |                                                                                                  |                          |         |   |        |   |       |      |     
|Pro forma net income from continuing operations                                                                                            |                                                                                                  | $                        | (10,458 | ) |        | $ | 2,790 |      |      | $ | 2,846 |  
|                                                                                                                                           |                                                                                                  |                          |         |   |        |   |       |      |     
|                                                                                                                                           | Basic earnings per share from continuing operations attributable
    to GM
    $12/3 par value   |                          |         |   |        |   |       |      |      |   |       |   |     
|                                                                                                                                           |                                                                                                  | - as reported            |         | $ | (18.50 | ) |       | $    | 4.97 |   |       | $ | 5.17 | 
|                                                                                                                                           |                                                                                                  | - pro forma              |         | $ | (18.50 | ) |       | $    | 4.94 |   |       | $ | 5.08 | 
|                                                                                                                                           | Diluted earnings per share from continuing operations
    attributable to GM
    $12/3 par value |                          |         |   |        |   |       |      |      |   |       |   |     
|                                                                                                                                           |                                                                                                  | - as reported            |         | $ | (18.50 | ) |       | $    | 4.94 |   |       | $ | 5.09 | 
|                                                                                                                                           |                                                                                                  | - pro forma              |         | $ | (18.50 | ) |       | $    | 4.92 |   |       | $ | 5.00 | 

123(R)-3,




45-3




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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|        |                                                  
|------- | -------------------------------------------------
|Note 1. | Significant Accounting
    Policies  (concluded)





|        |                                       
|------- | --------------------------------------
|Note 2. | Acquisition and Disposal of Businesses





|                             |  |                         |       |  |      |   |       |      |  |   |       | 
|---------------------------- |  | ----------------------- | ----- |  | ---- | - | ----- | ---- |  | - | ----- | 
|                             |  | Year Ended December 31, |      
|                             |  |                         |      
|                             |  | 2005                    |       |  | 2004 |   |       | 2003 | 
|                             |  |                         |       |  |      |   |       |      | 
|Total net sales and revenues |  | $                       | 5,738 |  |      | $ | 4,338 |      |  | $ | 3,161 | 







| |   |                                                                                                                                                                                                                                                                                                          
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The Fiat-GM Powertrain (FGP) joint venture company would be
    dissolved and GM would regain complete ownership of all GM
    assets originally contributed. During a transition period, FGP
    would continue to supply both companies so that their respective
    operations would 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;                                                                                                                                                                                                                                               
|
| |  | GM and Fiat have exchanged broad releases of all claims and
    liabilities.                                                                                                                                                                                                                             

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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|        |                                                         
|------- | --------------------------------------------------------
|Note 2. | Acquisition and Disposal of Businesses 
    (concluded)











|        |                        
|------- | -----------------------
|Note 3. | Discontinued Operations











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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|        |                  
|------- | -----------------
|Note 4. | Asset Impairments

















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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|        |                                
|------- | -------------------------------
|Note 4. | Asset Impairments  (concluded)





|        |                                                    
|------- | ---------------------------------------------------
|Note 5. | Postemployment Benefit Costs (Plant Idling Reserve)











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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|        |                                                                      
|------- | ---------------------------------------------------------------------
|Note 5. | Postemployment Benefit Costs (Plant Idling
    Reserve)  (concluded)





|                             |                    |   |       |       |  
|---------------------------- | ------------------ | - | ----- | ----- | -
|Balance at December 31, 2003 |                    | $ | 384   |      
|                             | Spending           |   |       | (151  | )
|                             | Interest accretion |   |       | 19    |  
|                             | Additions          |   |       |      |  
|                             | Adjustments        |   |       | (15   | )
|                             |                    |   |      
|Balance at December 31, 2004 |                    | $ | 237   |      
|                             | Spending           |   |       | (91   | )
|                             | Interest accretion |   |       | 12    |  
|                             | Additions          |   |       | 1,891 |  
|                             | Adjustments        |   |       | (37   | )
|                             |                    |   |      
|Balance at December 31, 2005 |                    | $ | 2,012 |      
|                             |                    |   |      



|        |                                         
|------- | ----------------------------------------
|Note 6. | Investment in Nonconsolidated Affiliates





|                                             |  |       |    |  |       |   |        |       |  |   |       |  |  |   |    | 
|-------------------------------------------- |  | ----- | -- |  | ----- | - | ------ | ----- |  | - | ----- |  |  | - | -- | 
|                                             |  |       |    |  |       |   |        | South | 
|2005                                         |  | Italy |    |  | Japan |   |        | China |  |   | Korea | 
|                                             |  |       |    |  |       |   |        |       |  |   |       | 
|Book value of GMs investments in affiliates |  |       | NA |  |       | $ | 1,576  |       |  | $ | 1,020 |  |  |   | NA | 
|GMs share of affiliates net income (loss)  |  | $     | 32 |  |       | $ | 183    |       |  | $ | 327   |  |  | $ | 17 | 
|Total assets of significant affiliates       |  |       | NA |  |       | $ | 15,507 |       |  | $ | 4,363 |  |  |   | NA | 
|Total liabilities of significant affiliates  |  |       | NA |  |       | $ | 7,467  |       |  | $ | 2,425 |  |  |   | NA | 

|                                             |  |   |       |  |  |   |        |  |  |   |       |  |  |   |       |  
|-------------------------------------------- |  | - | ----- |  |  | - | ------ |  |  | - | ----- |  |  | - | ----- | -
|2004                                         |  |   |       |  |  |   |        | 
|                                             |  |   |       |  |  |   |        | 
|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       |  | $ | 8,616 |  |  | $ | 30,582 |  |  | $ | 3,429 |  |  | $ | 5,288 |  
|Total liabilities of significant affiliates  |  | $ | 5,539 |  |  | $ | 17,417 |  |  | $ | 1,630 |  |  | $ | 4,447 |  

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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|        |                                                           
|------- | ----------------------------------------------------------
|Note 6. | Investment in Nonconsolidated Affiliates 
    (concluded)

|                                             |  |       |       |  |       |   |        |       |  |   |       |  |  |   |       |  
|-------------------------------------------- |  | ----- | ----- |  | ----- | - | ------ | ----- |  | - | ----- |  |  | - | ----- | -
|                                             |  |       |       |  |       |   |        | South | 
|2003                                         |  | Italy |       |  | Japan |   |        | China |  |   | Korea | 
|                                             |  |       |       |  |       |   |        |       |  |   |       | 
|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       |  | $     | 7,933 |  |       | $ | 29,622 |       |  | $ | 3,103 |  |  | $ | 3,263 |  
|Total liabilities of significant affiliates  |  | $     | 5,304 |  |       | $ | 17,764 |       |  | $ | 1,460 |  |  | $ | 2,892 |  



|        |                      
|------- | ---------------------
|Note 7. | Marketable Securities

held-to




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



|                                                         |  |                   |       |           |       |   |            |       |            |        |   |  |  |   |    | 
|-------------------------------------------------------- |  | ----------------- | ----- | --------- | ----- | - | ---------- | ----- | ---------- | ------ | - |  |  | - | -- | 
|                                                         |  |                   |       | Book/Fair |       |   | Unrealized |       | Unrealized |       
|                                                         |  | Cost              |       |           | Value |   |            | Gains |            | Losses |  
|                                                         |  |                   |       |           |       |   |            |       |            |        |  
|                                                         |  | December 31, 2005 |      
|                                                         |  |                   |      
|Type of security
    Corporate debt securities and other |  | $                 | 741   |           |       | $ | 728        |       |            | $      |  |  |  | $ | 13 | 
|U.S. government and agencies                             |  |                   | 455   |           |       |   | 450        |       |            |        |  |  |  |   | 5  | 
|Mortgage-backed securities                               |  |                   | 243   |           |       |   | 238        |       |            |        |  |  |  |   | 5  | 
|                                                         |  |                   |       |           |       |   |            |       |            |        |   | 
|Total marketable securities                              |  | $                 | 1,439 |           |       | $ | 1,416      |       |            | $      |  |  |  | $ | 23 | 
|                                                         |  |                   |       |           |       |   |            |       |            |        |   | 

|                                                         |  |                   |       |           |       |   |            |       |  |            |        |  |  |   |    | 
|-------------------------------------------------------- |  | ----------------- | ----- | --------- | ----- | - | ---------- | ----- |  | ---------- | ------ |  |  | - | -- | 
|                                                         |  |                   |       | 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 | 
|                                                         |  |                   |       |           |       |   |            |       |  |            |        | 



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|        |                                    
|------- | -----------------------------------
|Note 7. | Marketable Securities  (continued)



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



|                                                     |                                           |                   |        |           |       |   |            |        |  |            |        |       |  |   |     |     | 
|---------------------------------------------------- | ----------------------------------------- | ----------------- | ------ | --------- | ----- | - | ---------- | ------ |  | ---------- | ------ | ----- |  | - | --- | --- | 
|                                                     |                                           |                   |        | Book/Fair |       |   | Unrealized |        |  | Unrealized |       
|                                                     |                                           | Cost              |        |           | Value |   |            | Gains  |  |            | Losses |      
|                                                     |                                           |                   |        |           |       |   |            |        |  |            |        |      
|                                                     |                                           | December 31, 2005 |       
|                                                     |                                           |                   |       
|Type of security                                     |                                           |                   |        |           |       |   |            |        |  |            |        |       |  |   |     |    
|Bonds, notes, and other securities                   |                                           |                   |        |           |       |   |            |        |  |            |        |       |  |   |     |    
|                                                     | United States government and agencies     |                   | $      | 2,945     |       |   | $          | 2,904  |  |            | $      | 5     |  |   | $   | 46  | 
|                                                     | States and municipalities                 |                   |        | 863       |       |   |            | 889    |  |            |        | 27    |  |   |     | 1   | 
|                                                     | Foreign government securities             |                   |        | 844       |       |   |            | 853    |  |            |        | 11    |  |   |     | 2   | 
|                                                     | Mortgage and asset-backed securities      |                   |        | 1,216     |       |   |            | 1,240  |  |            |        | 29    |  |   |     | 5   | 
|                                                     | Corporate debt securities and other       |                   |        | 6,136     |       |   |            | 6,144  |  |            |        | 43    |  |   |     | 35  | 
|                                                     |                                           |                   |        |           |       |   |            |        |  |            |        |      
|Total debt securities available-for-sale             |                                           |                   | 12,004 |           |       |   | 12,030     |        |  |            | 115    |       |  |   | 89  |    
|Mortgage-backed securities held-to-maturity          |                                           |                   | 16     |           |       |   | 16         |        |  |            |       |       |  |   |    |    
|Mortgage-backed securities held for Trading purposes |                                           |                   | 3,766  |           |       |   | 3,897      |        |  |            | 131    |       |  |   |    |    
|                                                     |                                           |                   |        |           |       |   |            |        |  |            |        |      
|Total debt securities                                |                                           |                   | 15,786 |           |       |   | 15,943     |        |  |            | 246    |       |  |   | 89  |    
|Equity securities                                    |                                           |                   | 1,510  |           |       |   | 2,367      |        |  |            | 874    |       |  |   | 17  |    
|                                                     |                                           |                   |        |           |       |   |            |        |  |            |        |      
|                                                     | Total investment in marketable securities |                   | $      | 17,296    |       |   | $          | 18,310 |  |            | $      | 1,120 |  |   | $   | 106 | 
|                                                     |                                           |                   |        |           |       |   |            |        |  |            |        |      
|Total consolidated other marketable securities       |                                           | $                 | 18,735 |           |       | $ | 19,726     |        |  | $          | 1,120  |       |  | $ | 129 |    
|                                                     |                                           |                   |        |           |       |   |            |        |  |            |        |      

|                                                     |                                           |                   |        |           |       |   |            |        |  |            |        |       |  |   |    |    | 
|---------------------------------------------------- | ----------------------------------------- | ----------------- | ------ | --------- | ----- | - | ---------- | ------ |  | ---------- | ------ | ----- |  | - | -- | -- | 
|                                                     |                                           |                   |        | 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 |   
|                                                     |                                           |                   |        |           |       |   |            |        |  |            |        |      

II-73



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|        |                                    
|------- | -----------------------------------
|Note 7. | Marketable Securities  (continued)





|                                    |                                        |                       |       |       |                     |   |    |            |  |   |                   |     |  |   |    |    | 
|----------------------------------- | -------------------------------------- | --------------------- | ----- | ----- | ------------------- | - | -- | ---------- |  | - | ----------------- | --- |  | - | -- | -- | 
|                                    |                                        | December 31, 2005     |      
|                                    |                                        |                       |      
|                                    |                                        | Less than 12 Months   |       |       | 12 months or longer |  
|                                    |                                        |                       |       |       |                     |  
|                                    |                                        | Fair value            |       |       | Unrealized losses   |   |    | Fair value |  |   | Unrealized losses |    
|                                    |                                        |                       |       |       |                     |   |    |            |  |   |                   |    
|                                    |                                        | (Dollars in millions) |      
|Automotive and Other Operations     |                                        |                       |       |       |                     |   |    |            |  |   |                   |     |  |   |    |   
|Available for sale securities       |                                        |                       |       |       |                     |   |    |            |  |   |                   |     |  |   |    |   
|                                    | Corporate debt securities and Other    |                       | $     | 201   |                     |   | $  | 3          |  |   | $                 | 370 |  |   | $  | 10 | 
|                                    | U.S. government and agencies           |                       |       | 289   |                     |   |    | 2          |  |   |                   | 84  |  |   |    | 3  | 
|                                    | Mortgage backed securities             |                       |       | 153   |                     |   |    | 3          |  |   |                   | 65  |  |   |    | 2  | 
|                                    |                                        |                       |       |       |                     |   |    |            |  |   |                   |    
|                                    | Total marketable securities            |                       | $     | 643   |                     |   | $  | 8          |  |   | $                 | 519 |  |   | $  | 15 | 
|                                    |                                        |                       |       |       |                     |   |    |            |  |   |                   |    
|Financing and Insurance Operations  |                                        |                       |       |       |                     |   |    |            |  |   |                   |     |  |   |    |   
|Available for sale securities       |                                        |                       |       |       |                     |   |    |            |  |   |                   |     |  |   |    |   
|Debt securities                     |                                        |                       |       |       |                     |   |    |            |  |   |                   |     |  |   |    |   
|                                    | U.S. Treasury and federal agencies     |                       | $     | 1,590 |                     |   | $  | 32         |  |   | $                 | 520 |  |   | $  | 15 | 
|                                    | States and political subdivisions      |                       |       | 79    |                     |   |    | 1          |  |   |                   |    |  |   |    |   | 
|                                    | Foreign government securities          |                       |       | 179   |                     |   |    | 1          |  |   |                   |    |  |   |    |   | 
|                                    | Residential mortgage-backed securities |                       |       | 36    |                     |   |    | 1          |  |   |                   | 76  |  |   |    | 2  | 
|                                    | Interest-only strips                   |                       |       | 81    |                     |   |    | 3          |  |   |                   |    |  |   |    |   | 
|                                    | Corporate debt securities              |                       |       | 1,865 |                     |   |    | 20         |  |   |                   | 331 |  |   |    | 10 | 
|                                    | Other                                  |                       |       | 175   |                     |   |    | 3          |  |   |                   | 21  |  |   |    | 1  | 
|                                    |                                        |                       |       |       |                     |   |    |            |  |   |                   |    
|Total debt securities               |                                        |                       | 4,005 |       |                     |   | 61 |            |  |   | 948               |     |  |   | 28 |   
|Equity securities                   |                                        |                       | 137   |       |                     |   | 15 |            |  |   | 19                |     |  |   | 2  |   
|                                    |                                        |                       |       |       |                     |   |    |            |  |   |                   |    
|Total available for sale securities |                                        | $                     | 4,142 |       |                     | $ | 76 |            |  | $ | 967               |     |  | $ | 30 |   
|                                    |                                        |                       |       |       |                     |   |    |            |  |   |                   |    
|Total held to maturity securities   |                                        | $                     |      |       |                     | $ |   |            |  | $ |                  |     |  | $ |   |   
|                                    |                                        |                       |       |       |                     |   |    |            |  |   |                   |    

II-74



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|        |                                    
|------- | -----------------------------------
|Note 7. | Marketable Securities  (concluded)

|                                    |                                     |                       |       |       |                     |   |    |            |   |   |                   |     |    |   |   |   |   | 
|----------------------------------- | ----------------------------------- | --------------------- | ----- | ----- | ------------------- | - | -- | ---------- | - | - | ----------------- | --- | -- | - | - | - | - | 
|                                    |                                     | December 31, 2004     |      
|                                    |                                     |                       |      
|                                    |                                     | Less than 12 Months   |       |       | 12 months or longer |  
|                                    |                                     |                       |       |       |                     |  
|                                    |                                     | Fair value            |       |       | Unrealized losses   |   |    | Fair value |   |   | Unrealized 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 8. | Variable Interest Entities





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

Synthetic Leases


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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




Note 8.     Variable Interest
Entities  (continued)






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

Automotive finance receivables


Mortgage warehouse funding






Residential mortgage loan alliances


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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




Note 8.     Variable Interest
Entities  (continued)




Construction and real estate lending




Warehouse lending


Collateralized debt obligations (CDOs)






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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




Note 8.     Variable Interest
Entities  (continued)




Interests in real estate partnerships




Accounting for Sales of Real
Estate


New market tax credit funds


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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




Note 8.     Variable Interest
Entities  (concluded)






|        |                                        
|------- | ---------------------------------------
|Note 9. | Finance Receivables and Securitizations



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



|                                                |                           |                                  |         |        |        |   |         |        |        | 
|----------------------------------------------- | ------------------------- | -------------------------------- | ------- | ------ | ------ | - | ------- | ------ | ------ | 
|                                                |                           | December 31,                     |        
|                                                |                           |                                  |        
|                                                |                           | 2005                             |         |        | 2004   |  
|                                                |                           |                                  |         |        |        |  
|Consumer:                                       |                           |                                  |         |        |        |   |         |       
|                                                | Retail automotive         |                                  | $       | 71,452 |        |   | $       | 92,225 |       
|                                                | Residential mortgages     |                                  |         | 68,959 |        |   |         | 57,709 |       
|                                                |                           |                                  |         |        |        |  
|Total consumer                                  |                           |                                  | 140,411 |        |        |   | 149,934 |       
|Commercial:                                     |                           |                                  |         |        |        |   |         |       
|                                                | Automotive:               |                                  |         |        |        |   |         |        |       
|                                                |                           | Wholesale                        |         |        | 19,641 |   |         |        | 27,796 | 
|                                                |                           | Leasing and lease financing      |         |        | 1,228  |   |         |        | 1,466  | 
|                                                |                           | Term loans to dealers and others |         |        | 2,973  |   |         |        | 3,662  | 
|                                                | Commercial and industrial |                                  |         | 16,936 |        |   |         | 14,203 |       
|                                                | Commercial real estate:   |                                  |         |        |        |   |         |        |       
|                                                |                           | Commercial mortgage(1)           |         |        | 43     |   |         |        | 3,148  | 
|                                                |                           | Real estate construction         |         |        | 2,677  |   |         |        | 2,810  | 
|                                                |                           |                                  |         |        |        |  
|Total commercial                                |                           |                                  | 43,498  |        |        |   | 53,085  |       
|                                                |                           |                                  |         |        |        |  
|Total finance receivables and loans             |                           |                                  | 183,909 |        |        |   | 203,019 |       
|Allowance for financing losses                  |                           |                                  | (3,116  | )      |        |   | (3,419  | )     
|                                                |                           |                                  |         |        |        |  
|Total consolidated finance receivables  net(2) |                           | $                                | 180,793 |        |        | $ | 199,600 |       
|                                                |                           |                                  |         |        |        |  






|    |                                                                                                                                                                                                                                                                                                                   
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | At December 31, 2005, $3.0 billion ($2.1 billion
    domestic and $949 million foreign) in GMAC Commercial
    Mortgages finance receivables and loans were transferred
    to the reporting segment held for sale on the Corporations
    Consolidated Balance Sheet (refer to Note 1 for further
    details).
|   
|(2) | Net of unearned income of $5.9 billion and
    $7.6 billion at December 31, 2005 and 2004,
    respectively.                                                                                                                                                                                                      



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




Note 9.     Finance Receivables and
Securitizations  (continued)




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











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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




Note 9.     Finance Receivables and
Securitizations  (continued)




|                                                                  |  |                              |       |   |           |   |                |             |  |            |            |   |  |            |       |   |  |   |     | 
|----------------------------------------------------------------- |  | ---------------------------- | ----- | - | --------- | - | -------------- | ----------- |  | ---------- | ---------- | - |  | ---------- | ----- | - |  | - | --- | 
|                                                                  |  | Year Ended December 31, 2005 |      
|                                                                  |  |                              |      
|                                                                  |  | Retail                       |       |   |           |   | Mortgage Loans |             |  | Commercial |           
|                                                                  |  | Finance                      |       |   | Wholesale |   |                |             |  |            | Mortgage   |  
|                                                                  |  | Receivables                  |       |   | Loans     |   |                | Residential |  |            | Commercial |   |  | Securities |      
|                                                                  |  |                              |       |   |           |   |                |             |  |            |            |   |  |            |      
|Pre-tax gains on securitizations                                  |  | $                            | (2    | ) |           | $ | 543            |             |  | $          | 513        |   |  | $          | 68    |   |  | $ | 8   | 
|Cash flow information:                                            |  |                              |       |   |           |   |                |             |  |            |            |   |  |            |       |   |  |   |     | 
|Proceeds from new securitizations                                 |  |                              | 4,874 |   |           |   | 7,705          |             |  |            | 41,987     |   |  |            | 3,990 |   |  |   | 741 | 
|Servicing fees received                                           |  |                              | 65    |   |           |   | 179            |             |  |            | 245        |   |  |            | 21    |   |  |   |    | 
|Other cash flows received on retained interests                   |  |                              | 249   |   |           |   | 503            |             |  |            | 583        |   |  |            | 262   |   |  |   | 42  | 
|Proceeds from collections reinvested in revolving securitizations |  |                              |      |   |           |   | 102,306        |             |  |            |           |   |  |            |      |   |  |   |    | 
|Repayments of servicing advances                                  |  |                              | 43    |   |           |   |               |             |  |            | 1,115      |   |  |            | 198   |   |  |   |    | 
|Cash outflow information:                                         |  |                              |       |   |           |   |                |             |  |            |            |   |  |            |       |   |  |   |     | 
|Servicing advances                                                |  |                              | (46   | ) |           |   |               |             |  |            | (1,163     | ) |  |            | (188  | ) |  |   |    | 
|Purchase obligations and options:                                 |  |                              |       |   |           |   |                |             |  |            |            |   |  |            |       |   |  |   |     | 
|Representations and warranties obligations                        |  |                              |      |   |           |   |               |             |  |            | (29        | ) |  |            |      |   |  |   |    | 
|Administrator or servicer actions                                 |  |                              | (76   | ) |           |   |               |             |  |            |           |   |  |            |      |   |  |   |    | 
|Asset performance conditional calls                               |  |                              |      |   |           |   |               |             |  |            | (99        | ) |  |            |      |   |  |   |    | 
|Clean-up calls                                                    |  |                              | (715  | ) |           |   |               |             |  |            | (2,202     | ) |  |            |      |   |  |   |    | 

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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




Note 9.     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     | ) |  |            |      |   |  |   |    | 

|                                                                  |  |                              |       |   |           |   |                |             |  |            |            |   |  |            |       |   |  |   |       | 
|----------------------------------------------------------------- |  | ---------------------------- | ----- | - | --------- | - | -------------- | ----------- |  | ---------- | ---------- | - |  | ---------- | ----- | - |  | - | ----- | 
|                                                                  |  | 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 | 
|                                                                  |  |                              | 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     | ) |  |            |      |   |  |   |      | 

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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




Note 9.     Finance Receivables and
Securitizations  (continued)




|                                      |  |                              |          |   |                              |  |           |            |  |          |            |   |                |     |            |             |            |  |         |            |          |  |            |   |  |  |          |   |  |  |          |  
|------------------------------------- |  | ---------------------------- | -------- | - | ---------------------------- |  | --------- | ---------- |  | -------- | ---------- | - | -------------- | --- | ---------- | ----------- | ---------- |  | ------- | ---------- | -------- |  | ---------- | - |  |  | -------- | - |  |  | -------- | -
|                                      |  | Year Ended December 31, 2005 |          |   | Year Ended December 31, 2004 | 
|                                      |  |                              |          |   |                              | 
|                                      |  | Retail                       |          |   | Mortgage loans               |  |           |            |  | Retail   |            |   | Mortgage loans |     |            |            
|                                      |  | finance                      |          |   |                              |  |           | Commercial |  |          | finance    |   |                |     |            |             | Commercial | 
|                                      |  | receivables                  |          |   | Residential                  |  |           |            |  | mortgage |            |   | receivables    |     |            | Residential |            |  |         |            | mortgage | 
|                                      |  | (a)                          |          |   | (b)                          |  |           | Commercial |  |          | securities |   |                | (a) |            |             | (b)        |  |         | Commercial |          |  | securities |  
|                                      |  |                              |          |   |                              |  |           |            |  |          |            |   |                |     |            |             |            |  |         |            |          |  |            |  
|Key assumptions(c) (rates per annum): |  |                              |          |   |                              |  |           |            |  |          |            |   |                |     |            |             |            |  |         |            |          |  |            |   |  |  |          |   |  |  |          |  
|Annual prepayment rate(d)             |  |                              | 0.9-1.2  | % |                              |  | 0.0-60.0  | %          |  |          | 0.0-50.0   | % |                |     | 0.0        | %           |            |  | 0.9-1.0 | %          |          |  | 0.0- 51.3  | % |  |  | 0.0-50.0 | % |  |  | 0.0-19.9 | %
|Weighted average life (in years)      |  |                              | 1.6-1.7  |   |                              |  | 1.1-8.5   |            |  |          | 0.3-8.6    |   |                |     | 5.9-9.9    |             |            |  | 1.6-1.8 |            |          |  | 1.1-5.5    |   |  |  | 0.4-8.8  |   |  |  | 2.5-17.4 |  
|Expected credit losses                |  |                              | 0.4-1.6  | % |                              |  | 0.0-4.9   | %          |  |          | 0.0        | % |                |     | 0.0        | %           |            |  | 0.4     | %          |          |  | 0.0-10.9   | % |  |  | 0.0      | % |  |  | 0.0-3.1  | %
|Discount rate                         |  |                              | 9.5-15.0 | % |                              |  | 6.5- 21.4 | %          |  |          | 4.2-10.7   | % |                |     | 10.0- 12.0 | %           |            |  | 9.5     | %          |          |  | 6.5- 24.8  | % |  |  | 4.3-15.0 | % |  |  | 8.2-11.7 | %






|    |                                                                                                                                                                   
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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.                                                                                                                    

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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




Note 9.     Finance Receivables and
Securitizations  (continued)




|                                                |                              |                 |              |                |             |   |               |                     |   |   |               |     |   |   |               |     |  
|----------------------------------------------- | ---------------------------- | --------------- | ------------ | -------------- | ----------- | - | ------------- | ------------------- | - | - | ------------- | --- | - | - | ------------- | --- | -
|                                                |                              |                 |              | Mortgage loans |             |   |              
|                                                |                              | Retail finance  |              |                |             |   |               | Commercial mortgage |  
|                                                |                              | receivables (a) |              |                | Residential |   |               | Commercial          |   |   | securities    |    
|                                                |                              |                 |              |                |             |   |               |                     |   |   |               |    
|Carrying value/fair value of retained interests |                              | $               | 314          |                |             | $ | 1,057         |                     |   | $ | 250           |     |   | $ | 182           |    
|Weighted average life (in years)                |                              |                 | 0.1-1.2      |                |             |   | 1.0-6.2       |                     |   |   | 0.0-17.7      |     |   |   | 2.4-16.1      |    
|Annual prepayment rate                          |                              |                 | 0.7-1.2% WAM |                |             |   | 0.0-60.0% CPR |                     |   |   | 0.0-50.0% CPR |     |   |   | 1.2-16.0% CPR |    
|                                                | Impact of 10% adverse change |                 |              | $(1            | )           |   |               | $(46                | ) |   |               | $(1 | ) |   |               | $  |  
|                                                | Impact of 20% adverse change |                 |              | (2             | )           |   |               | (82                 | ) |   |               | (1  | ) |   |               |    |  
|Loss assumption                                 |                              |                 | 0.4%(b       | )              |             |   | 0.0-16.9%     |                     |   |   | 0.0-3.4%      |     |   |   | 0.0-6.7%      |    
|                                                | Impact of 10% adverse change |                 |              | $(2            | )           |   |               | $(43                | ) |   |               | $(6 | ) |   |               | $(3 | )
|                                                | Impact of 20% adverse change |                 |              | (4             | )           |   |               | (81                 | ) |   |               | (10 | ) |   |               | (6  | )
|Discount rate                                   |                              |                 | 9.5-12.0%    |                |             |   | 6.5-40.0%     |                     |   |   | 0.1-33.5%     |     |   |   | 5.3-21.1%     |    
|                                                | Impact of 10% adverse change |                 |              | $(2            | )           |   |               | $(34                | ) |   |               | $(5 | ) |   |               | $(9 | )
|                                                | Impact of 20% adverse change |                 |              | (5             | )           |   |               | (65                 | ) |   |               | (10 | ) |   |               | (17 | )
|Market rate(d)                                  |                              |                 | 3.9-5.1%     |                |             |   | (c            | )                   |   |   | (c            | )   |   |   | (c            | )  
|                                                | Impact of 10% adverse change |                 |              | $(7            | )           |   |               | $(11                | ) |   |               | $  |   |   |               | $  |  
|                                                | Impact of 20% adverse change |                 |              | (15            | )           |   |               | (26                 | ) |   |               |    |   |   |               |    |  






|    |                                                                                                                                                                                     
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Fair value of retained interests in wholesale securitizations
    approximates cost of $690 million because of the short-term
    and floating rate nature of wholesale receivables.



|    |  |                                                                                                                                                                                                                         
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) |  | Net of a reserve for expected credit losses totaling
    $14 million at December 31, 2005. 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 9. Finance Receivables and
Securitizations  (concluded)




|                                 |  |                                  |           |   |      |  |           |      |  |  |           |  
|-------------------------------- |  | -------------------------------- | --------- | - | ---- |  | --------- | ---- |  |  | --------- | -
|                                 |  | Loans securitized in years ended |          
|                                 |  | December 31, (a)                 |          
|                                 |  |                                  |          
|                                 |  | 2005                             |           |   | 2004 |  |           | 2003 | 
|                                 |  |                                  |           |   |      |  |           |      | 
|Retail automotive                |  |                                  | 0.4       | % |      |  | 0.4       | %    |  |  | 0.4       | %
|Residential mortgage             |  |                                  | 0.0- 16.9 | % |      |  | 0.0- 26.1 | %    |  |  | 0.0- 26.1 | %
|Commercial mortgage              |  |                                  | 0.0-3.4   | % |      |  | 0.0- 4.2  | %    |  |  | 0.0- 6.6  | %
|Commercial investment securities |  |                                  | 0.0-6.7   | % |      |  | 0.0- 39.5 | %    |  |  | 0.9- 33.7 | %






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



|                                    |                                        |                           |         |          |                   |   |         |                   |   |   |        |       |  |      |       |       |      |   |       |       |  |   |       |       | 
|----------------------------------- | -------------------------------------- | ------------------------- | ------- | -------- | ----------------- | - | ------- | ----------------- | - | - | ------ | ----- |  | ---- | ----- | ----- | ---- | - | ----- | ----- |  | - | ----- | ----- | 
|                                    |                                        | Total finance receivables |         |          | Amount 60 days or |   |         |                  
|                                    |                                        | and loans                 |         |          | more past due     |   |         | Net credit losses |  
|                                    |                                        |                           |         |          |                   |   |         |                   |  
|December 31, (dollars in millions)  |                                        | 2005                      |         |          | 2004              |   |         | 2005              |   |   | 2004   |       |  | 2005 |       |       | 2004 |  
|                                    |                                        |                           |         |          |                   |   |         |                   |   |   |        |       |  |      |       |       |      |  
|Retail automotive                   |                                        | $                         | 77,197  |          |                   | $ | 97,631  |                   |   | $ | 892    |       |  | $    | 806   |       |      | $ | 867   |       |  | $ | 1,044 |      
|Residential mortgage                |                                        |                           | 167,584 |          |                   |   | 129,550 |                   |   |   | 8,682  |       |  |      | 6,686 |       |      |   | 885   |       |  |   | 944   |      
|                                    |                                        |                           |         |          |                   |   |         |                   |   |   |        |       |  |      |       |       |      |  
|                                    | Total consumer                         |                           |         | 244,781  |                   |   |         | 227,181           |   |   |        | 9,574 |  |      |       | 7,492 |      |   |       | 1,752 |  |   |       | 1,988 | 
|Wholesale                           |                                        |                           | 41,062  |          |                   |   | 49,197  |                   |   |   | 73     |       |  |      | 51    |       |      |   | 4     |       |  |   | 2     |      
|Commercial mortgage                 |                                        |                           | 43      |          |                   |   | 21,353  |                   |   |   |       |       |  |      | 410   |       |      |   | 4     |       |  |   | 130   |      
|Other automotive and commercial     |                                        |                           | 23,852  |          |                   |   | 22,155  |                   |   |   | 575    |       |  |      | 544   |       |      |   | 33    |       |  |   | 71    |      
|                                    |                                        |                           |         |          |                   |   |         |                   |   |   |        |       |  |      |       |       |      |  
|                                    | Total commercial(a)                    |                           |         | 64,957   |                   |   |         | 92,705            |   |   |        | 648   |  |      |       | 1,005 |      |   |       | 41    |  |   |       | 203   | 
|                                    |                                        |                           |         |          |                   |   |         |                   |   |   |        |       |  |      |       |       |      |  
|Total managed portfolio(b)          |                                        |                           | 309,738 |          |                   |   | 319,886 |                   |   | $ | 10,222 |       |  | $    | 8,497 |       |      | $ | 1,793 |       |  | $ | 2,191 |      
|                                    |                                        |                           |         |          |                   |   |         |                   |   |   |        |       |  |      |       |       |      |  
|                                    | Securitized finance receivables        |                           |         |          |                   |   |         |                   |   |   |        |       |  |      |       |       |      |   |       |       |  |   |       |       | 
|                                    | and loans                              |                           |         | (103,947 | )                 |   |         | (96,801           | ) |   |        |       |  |      |       |       |      |   |       |       |  |   |       |       | 
|                                    | Loans held for sale (unpaid principal) |                           |         | (21,882  | )                 |   |         | (19,941           | ) |   |        |       |  |      |       |       |      |   |       |       |  |   |       |       | 
|                                    |                                        |                           |         |          |                   |   |         |                   |   |   |        |       |  |      |       |       |      |  
|Total finance receivables and loans |                                        | $                         | 183,909 |          |                   | $ | 203,144 |                   |   |   |        |       |  |      |       |       |      |   |       |       |  |   |       |      
|                                    |                                        |                           |         |          |                   |   |         |                   |   |   |        |       |  |      |       |       |      |  






|    |                                                                                                                                                                                                          
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Excludes $26,320 million in GMAC commercial mortgages
    managed assets. At December 31, 2005, commercial mortgage
    had $281 million in accounts past due and net credit losses
    of $228 million.



|    |  |                                                                                                                                                                                                                                                                                                                                                       
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) |  | 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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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


Note 10.     Inventories




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



|                                                   |                           |                     |                                     |        |        |        |       |        |        |        | 
|-------------------------------------------------- | ------------------------- | ------------------- | ----------------------------------- | ------ | ------ | ------ | ----- | ------ | ------ | ------ | 
|                                                   |                           | December 31,        |                                    
|                                                   |                           |                     |                                    
|                                                   |                           | 2005                |                                     |        | 2004   |       
|                                                   |                           |                     |                                     |        |        |       
|Productive material, work in process, and supplies |                           | $                   | 5,471                               |        |        | $      | 4,838 |       
|Finished product, service parts, etc.              |                           |                     | 9,871                               |        |        |        | 8,321 |       
|                                                   |                           |                     |                                     |        |        |       
|                                                   | Total inventories at FIFO |                     |                                     | 15,342 |        |        |       | 13,159 |       
|                                                   |                           | Less LIFO allowance |                                     |        | (1,491 | )      |       |        | (1,442 | )     
|                                                   |                           |                     |                                     |        |        |       
|                                                   |                           |                     | Total inventories (less allowances) |        | $      | 13,851 |       |        | $      | 11,717 | 

last-in, first-in,






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



|                                                 |  |              |        |  |      |   |        | 
|------------------------------------------------ |  | ------------ | ------ |  | ---- | - | ------ | 
|                                                 |  | December 31, |       
|                                                 |  |              |       
|                                                 |  | 2005         |        |  | 2004 |  
|                                                 |  |              |        |  |      |  
|Off-lease vehicles                               |  | $            | 503    |  |      | $ | 530    | 
|                                                 |  |              |        |  |      |  
|Total consolidated inventories (less allowances) |  | $            | 14,354 |  |      | $ | 12,247 | 
|                                                 |  |              |        |  |      |  

Note 11.     Equipment on
Operating Leases






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



|                              |                |              |       |       |      |   |       |       | 
|----------------------------- | -------------- | ------------ | ----- | ----- | ---- | - | ----- | ----- | 
|                              |                | December 31, |      
|                              |                |              |      
|                              |                | 2005         |       |       | 2004 |  
|                              |                |              |       |       |      |  
|Equipment on operating leases |                | $            | 7,629 |       |      | $ | 7,475 |      
|Less accumulated depreciation |                |              | (636  | )     |      |   | (987  | )    
|                              |                |              |       |       |      |  
|                              | Net book value |              | $     | 6,993 |      |   | $     | 6,488 | 

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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




Note 11.     Equipment on
Operating Leases  (concluded)




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



|                                  |                |              |        |        |      |   |        |        | 
|--------------------------------- | -------------- | ------------ | ------ | ------ | ---- | - | ------ | ------ | 
|                                  |                | December 31, |       
|                                  |                |              |       
|                                  |                | 2005         |        |        | 2004 |  
|                                  |                |              |        |        |      |  
|Equipment on operating leases     |                | $            | 39,675 |        |      | $ | 36,002 |       
|Less accumulated depreciation     |                |              | (8,481 | )      |      |   | (8,276 | )     
|                                  |                |              |        |        |      |  
|                                  | Net book value |              | $      | 31,194 |      |   | $      | 27,726 | 
|                                  |                |              |        |        |      |  
|Total consolidated net book value |                | $            | 38,187 |        |      | $ | 34,214 |       
|                                  |                |              |        |        |      |  



Note 12.     Income Taxes




|                      |       |                          |         |         |      |   |     |       |  |   |       |       | 
|--------------------- | ----- | ------------------------ | ------- | ------- | ---- | - | --- | ----- |  | - | ----- | ----- | 
|                      |       | Years Ended December 31, |        
|                      |       |                          |        
|                      |       | 2005                     |         |         | 2004 |   |     | 2003  | 
|                      |       |                          |         |         |      |   |     |       | 
|U.S. income (loss)    |       | $                        | (16,171 | )       |      | $ | 242 |       |  | $ | 1,802 |      
|Foreign income (loss) |       |                          | (760    | )       |      |   | 944 |       |  |   | 1,195 |      
|                      |       |                          |         |         |      |   |     |       | 
|                      | Total |                          | $       | (16,931 | )    |   | $   | 1,186 |  |   | $     | 2,997 | 
|                      |       |                          |         |         |      |   |     |       | 



|                                               |                      |                          |                    |        |        |        |   |        |        |      |   |        |        |     | 
|---------------------------------------------- | -------------------- | ------------------------ | ------------------ | ------ | ------ | ------ | - | ------ | ------ | ---- | - | ------ | ------ | --- | 
|                                               |                      | Years Ended December 31, |                   
|                                               |                      |                          |                   
|                                               |                      | 2005                     |                    |        | 2004   |        |   | 2003   |       
|                                               |                      |                          |                    |        |        |        |   |        |       
|Income taxes estimated to be payable currently |                      |                          |                    |        |        |        |   |        |        |      |   |       
|                                               | U.S. federal         |                          | $                  | (147   | )      |        | $ | (282   | )      |      | $ | 167    |       
|                                               | Foreign              |                          |                    | 841    |        |        |   | 1,018  |        |      |   | 1,159  |       
|                                               | U.S. state and local |                          |                    | (2     | )      |        |   | 36     |        |      |   | 414    |       
|                                               |                      |                          |                    |        |        |        |   |        |       
|                                               |                      | Total payable currently  |                    |        | 692    |        |   |        | 772    |      |   |        | 1,740  |    
|                                               |                      |                          |                    |        |        |        |   |        |       
|Deferred income tax expense (credit)  net     |                      |                          |                    |        |        |        |   |        |        |      |   |       
|                                               | U.S. federal         |                          |                    | (6,878 | )      |        |   | (427   | )      |      |   | 134    |       
|                                               | Foreign              |                          |                    | (668   | )      |        |   | (1,239 | )      |      |   | (1,136 | )     
|                                               | U.S. state and local |                          |                    | 976    |        |        |   | (22    | )      |      |   | (28    | )     
|                                               |                      |                          |                    |        |        |        |   |        |       
|                                               |                      | Total deferred           |                    |        | (6,570 | )      |   |        | (1,688 | )    |   |        | (1,030 | )  
|                                               |                      |                          |                    |        |        |        |   |        |       
|                                               |                      |                          | Total income taxes |        | $      | (5,878 | ) |        | $      | (916 | ) |        | $      | 710 | 
|                                               |                      |                          |                    |        |        |        |   |        |       



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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




Note 12.     Income
Taxes  (continued)






|                                                                |                                    |                          |        |        |      |   |       |      |   |   |       |     | 
|--------------------------------------------------------------- | ---------------------------------- | ------------------------ | ------ | ------ | ---- | - | ----- | ---- | - | - | ----- | --- | 
|                                                                |                                    | Years Ended December 31, |       
|                                                                |                                    |                          |       
|                                                                |                                    | 2005                     |        |        | 2004 |   |       | 2003 |  
|                                                                |                                    |                          |        |        |      |   |       |      |  
|Tax at U.S. federal statutory income tax rate                   |                                    | $                        | (5,926 | )      |      | $ | 415   |      |   | $ | 1,049 |    
|State and local tax expense                                     |                                    |                          | (589   | )      |      |   | (949  | )    |   |   | 21    |    
|Foreign rates other than 35%                                    |                                    |                          | (174   | )      |      |   | (510  | )    |   |   | (269  | )  
|Taxes on unremitted earnings of subsidiaries                    |                                    |                          | (276   | )      |      |   | (366  | )    |   |   | (125  | )  
|Other tax credits                                               |                                    |                          | (69    | )      |      |   | (41   | )    |   |   | (52   | )  
|Settlement of prior year tax matters                            |                                    |                          | (515   | )      |      |   | (191  | )    |   |   | (194  | )  
|Change in valuation allowance                                   |                                    |                          | 2,178  |        |      |   | 1,432 |      |   |   | 566   |    
|ESOP dividend deduction(1)                                      |                                    |                          | (52    | )      |      |   | (53   | )    |   |   | (53   | )  
|Realization of basis differences due to foreign reorganizations |                                    |                          | (84    | )      |      |   | (483  | )    |   |   |      |    
|Medicare prescription drug benefit                              |                                    |                          | (325   | )      |      |   | (211  | )    |   |   |      |    
|Loss carryforward related to investment write-down              |                                    |                          |       |        |      |   | (168  | )    |   |   |      |    
|Stock contribution to pension plans(2)                          |                                    |                          |       |        |      |   |      |      |   |   | (87   | )  
|Other adjustments                                               |                                    |                          | (46    | )      |      |   | 209   |      |   |   | (146  | )  
|                                                                |                                    |                          |        |        |      |   |       |      |  
|                                                                | Total income tax (benefit) expense |                          | $      | (5,878 | )    |   | $     | (916 | ) |   | $     | 710 | 
|                                                                |                                    |                          |        |        |      |   |       |      |  






|    |                                                                                                                                                                                                                                
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




Note 12.     Income
Taxes  (continued)




|                                                                  |                         |              |        |        |              |   |        |        |  |   |             |        |  |   |        |        | 
|----------------------------------------------------------------- | ----------------------- | ------------ | ------ | ------ | ------------ | - | ------ | ------ |  | - | ----------- | ------ |  | - | ------ | ------ | 
|                                                                  |                         | December 31, |       
|                                                                  |                         |              |       
|                                                                  |                         | 2005         |        |        | 2004         |  
|                                                                  |                         | Deferred Tax |        |        | Deferred Tax |  
|                                                                  |                         |              |        |        |              |  
|                                                                  |                         | Assets       |        |        | Liabilities  |   |        | Assets |  |   | Liabilities |       
|                                                                  |                         |              |        |        |              |   |        |        |  |   |             |       
|Postretirement benefits other than pensions                       |                         | $            | 12,757 |        |              | $ |       |        |  | $ | 9,377       |        |  | $ |       |       
|Pension and other employee benefit plans                          |                         |              | 3,807  |        |              |   | 12,985 |        |  |   | 3,787       |        |  |   | 13,408 |       
|Warranties, dealer and customer allowances, claims, and discounts |                         |              | 6,739  |        |              |   | 52     |        |  |   | 6,907       |        |  |   | 42     |       
|Depreciation and amortization                                     |                         |              | 5,713  |        |              |   | 2,584  |        |  |   | 5,043       |        |  |   | 3,118  |       
|Tax carryforwards                                                 |                         |              | 11,155 |        |              |   |       |        |  |   | 10,422      |        |  |   |       |       
|Lease transactions                                                |                         |              |       |        |              |   | 4,351  |        |  |   | 19          |        |  |   | 3,801  |       
|Miscellaneous foreign                                             |                         |              | 4,510  |        |              |   | 371    |        |  |   | 4,401       |        |  |   | 2,300  |       
|Other                                                             |                         |              | 9,981  |        |              |   | 3,677  |        |  |   | 9,050       |        |  |   | 3,804  |       
|                                                                  |                         |              |        |        |              |   |        |        |  |   |             |       
|                                                                  | Subtotal                |              |        | 54,662 |              |   |        | 24,020 |  |   |             | 49,006 |  |   |        | 26,473 | 
|Valuation allowances                                              |                         |              | (5,230 | )      |              |   |       |        |  |   | (3,052      | )      |  |   |       |       
|                                                                  |                         |              |        |        |              |   |        |        |  |   |             |       
|                                                                  | Total deferred taxes    |              | $      | 49,432 |              |   | $      | 24,020 |  |   | $           | 45,954 |  |   | $      | 26,473 | 
|                                                                  |                         |              |        |        |              |   |        |        |  |   |             |       
|                                                                  | Net deferred tax assets |              | $      | 25,412 |              |   |        |        |  |   | $           | 19,481 |  |   |        |        | 
|                                                                  |                         |              |        |        |              |   |        |        |  |   |             |       



|                                     |       |      |        |        |      |   |        |        | 
|------------------------------------ | ----- | ---- | ------ | ------ | ---- | - | ------ | ------ | 
|                                     |       | 2005 |        |        | 2004 |  
|                                     |       |      |        |        |      |  
|Current deferred tax assets          |       | $    | 7,073  |        |      | $ | 8,883  |       
|Current deferred tax liabilities     |       |      | (3,759 | )      |      |   | (5,226 | )     
|Non-current deferred tax assets      |       |      | 22,816 |        |      |   | 17,676 |       
|Non-current deferred tax liabilities |       |      | (718   | )      |      |   | (1,852 | )     
|                                     |       |      |        |        |      |  
|                                     | Total |      | $      | 25,412 |      |   | $      | 19,481 | 
|                                     |       |      |        |        |      |  



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




Note 12.     Income
Taxes  (continued)




|               |  |      |        |  |      |                |        |                     |  |  |                     | 
|-------------- |  | ---- | ------ |  | ---- | -------------- | ------ | ------------------- |  |  | ------------------- | 
|               |  |      |        |  |      | Statutory      |       
|               |  |      |        |  |      | Operating Loss |       
|Jurisdiction   |  | 2005 |        |  | 2004 |                |        | Carryforward Period | 
|               |  |      |        |  |      |                |        |                     | 
|United States  |  | $    | 21,633 |  |      | $              | 15,719 |                     |  |  | 20 years/ Unlimited | 
|Germany        |  |      | 2,034  |  |      |                | 1,427  |                     |  |  | Unlimited           | 
|Brazil         |  |      | 0      |  |      |                | 453    |                     |  |  | Unlimited           | 
|United Kingdom |  |      | 299    |  |      |                | 363    |                     |  |  | Unlimited           | 
|Spain          |  |      | 230    |  |      |                | 186    |                     |  |  | 15 years            | 
|               |  |      |        |  |      |                |        |                     | 
|Total          |  | $    | 24,196 |  |      | $              | 18,148 |                     |  |  |                     | 
|               |  |      |        |  |      |                |        |                     | 





|                          |                  |   |       |       | 
|------------------------- | ---------------- | - | ----- | ----- | 
|Balance December 31, 2004 |                  | $ | 3,052 |      
|Additions:                |                  |   |       |      
|                          | US State & Local |   |       | 1,424 | 
|                          | Brazil           |   |       | 617   | 
|                          | Other            |   |       | 137   | 
|                          |                  |   |      
|Balance December 31, 2005 |                  | $ | 5,230 |      
|                          |                  |   |      





| |   |                                                                                                                                                                                                                                        
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The launch of new sport utility vehicles and full size
    pick-up trucks
    primarily in 2006, which are expected to produce substantially
    higher revenues and profits than the predecessor models in these
    segments in 2005;
|
| |  | The amendment of the GM Health Care Program for Hourly Employees
    and the establishment of a defined contribution health care
    plan, which will result in a substantial reduction in health
    care costs in                    

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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|         |                           
|-------- | --------------------------
|Note 12. | Income Taxes  (concluded)



| |   |                                                                                                                                                                                 
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | the U.S. beginning in 2006. The amendment has been ratified
    by the UAW and granted preliminary approval by the
    U.S. District Court for the Eastern District of Michigan;
|
| |  | Reductions of GMNAs cost structure as a result of the
    implementation of its restructuring plan; and                                                                        
|
| |  | Continued strength of GMAC earnings in the U.S.                                                                                                                                 













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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|         |               
|-------- | --------------
|Note 13. | Property  Net



|                                   |                                 |                                    |                                          |                                |              |   |        |        |         |        |        |        |         |        |        | 
|---------------------------------- | ------------------------------- | ---------------------------------- | ---------------------------------------- | ------------------------------ | ------------ | - | ------ | ------ | ------- | ------ | ------ | ------ | ------- | ------ | ------ | 
|                                   |                                 | Estimated                          |                                          |                                | December 31, |  
|                                   |                                 | Useful Lives                       |                                          |                                |              |  
|                                   |                                 | (Years)                            |                                          |                                | 2005         |   |        | 2004   |        
|                                   |                                 |                                    |                                          |                                |              |   |        |        |        
|Automotive and Other Operations    |                                 |                                    |                                          |                                |              |   |        |        |         |        |        |       
|                                   | Land                            |                                    |                                          |                               |              |   | $      | 1,139  |         |        | $      | 967    |        
|                                   | Buildings and land improvements |                                    |                                          | 2-40                           |              |   |        | 16,179 |         |        |        | 15,636 |        
|                                   | Machinery and equipment         |                                    |                                          | 3-30                           |              |   |        | 48,351 |         |        |        | 45,796 |        
|                                   | Construction in progress        |                                    |                                          |                               |              |   |        | 4,099  |         |        |        | 3,807  |        
|                                   |                                 |                                    |                                          |                                |              |   |        |        |        
|                                   |                                 | Real estate, plants, and equipment |                                          |                                |              |   |        |        | 69,768  |        |        |        | 66,206  |       
|                                   |                                 | Less accumulated depreciation      |                                          |                                |              |   |        |        | (41,554 | )      |        |        | (39,405 | )     
|                                   |                                 |                                    |                                          |                                |              |   |        |        |        
|                                   |                                 |                                    | Real estate, plants, and equipment  net |                                |              |   |        |        |         | 28,214 |        |        |         | 26,801 |       
|                                   |                                 |                                    | Special tools  net                      |                                |              |   |        |        |         | 10,252 |        |        |         | 10,369 |       
|                                   |                                 |                                    |                                          |                                |              |   |        |        |        
|                                   |                                 |                                    |                                          | Total property  net           |              |   |        |        |         | $      | 38,466 |        |         | $      | 37,170 | 
|                                   |                                 |                                    |                                          |                                |              |   |        |        |        
|Financing and Insurance Operations |                                 |                                    |                                          |                                |              |   |        |        |         |        |        |       
|                                   | Equipment and other             |                                    |                                          | 2-10                           |              |   | $      | 2,902  |         |        | $      | 3,086  |        
|                                   |                                 | Less accumulated depreciation      |                                          |                                |              |   |        |        | (1,154  | )      |        |        | (1,236  | )     
|                                   |                                 |                                    |                                          |                                |              |   |        |        |        
|                                   |                                 |                                    |                                          | Total property  net (Note 15) |              |   |        |        |         | $      | 1,748  |        |         | $      | 1,850  | 
|                                   |                                 |                                    |                                          |                                |              |   |        |        |        
|Total consolidated property  net  |                                 |                                    |                                          |                                |              | $ | 40,214 |        |         | $      | 39,020 |       
|                                   |                                 |                                    |                                          |                                |              |   |        |        |        



|                                                 |                                              |                          |        |       |        |   |        |       |       |   |        |       |       | 
|------------------------------------------------ | -------------------------------------------- | ------------------------ | ------ | ----- | ------ | - | ------ | ----- | ----- | - | ------ | ----- | ----- | 
|                                                 |                                              | Years Ended December 31, |       
|                                                 |                                              |                          |       
|                                                 |                                              | 2005                     |        |       | 2004   |   |        | 2003  |      
|                                                 |                                              |                          |        |       |        |   |        |       |      
|Automotive and Other Operations                  |                                              |                          |        |       |        |   |        |       |       |   |        |      
|                                                 | Depreciation                                 |                          | $      | 5,502 |        |   | $      | 5,028 |       |   | $      | 4,526 |      
|                                                 | Amortization and impairment of special tools |                          |        | 4,495 |        |   |        | 3,563 |       |   |        | 3,391 |      
|                                                 | Amortization of intangible assets            |                          |        | 76    |        |   |        | 38    |       |   |        | 29    |      
|                                                 |                                              |                          |        |       |        |   |        |       |      
|                                                 |                                              | Total                    |        | $     | 10,073 |   |        | $     | 8,629 |   |        | $     | 7,946 | 
|                                                 |                                              |                          |        |       |        |   |        |       |      
|Financing and Insurance Operations               |                                              |                          |        |       |        |   |        |       |       |   |        |      
|                                                 | Depreciation                                 |                          | $      | 5,679 |        |   | $      | 5,512 |       |   | $      | 5,556 |      
|                                                 | Amortization of intangible assets            |                          |        | 17    |        |   |        | 11    |       |   |        | 11    |      
|                                                 |                                              |                          |        |       |        |   |        |       |      
|                                                 |                                              | Total                    |        | $     | 5,696  |   |        | $     | 5,523 |   |        | $     | 5,567 | 
|                                                 |                                              |                          |        |       |        |   |        |       |      
|Total consolidated depreciation and amortization |                                              | $                        | 15,769 |       |        | $ | 14,152 |       |       | $ | 13,513 |      
|                                                 |                                              |                          |        |       |        |   |        |       |      

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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|         |                               
|-------- | ------------------------------
|Note 14. | Goodwill and Intangible Assets



|                                                  |                                          |                                                |   |     |              |  |   |              |    |   |       |       |       | 
|------------------------------------------------- | ---------------------------------------- | ---------------------------------------------- | - | --- | ------------ |  | - | ------------ | -- | - | ----- | ----- | ----- | 
|                                                  |                                          | Gross Carrying                                 |   |     | Accumulated  |  |   | Net Carrying |   
|December 31, 2005                                 |                                          | Amount                                         |   |     | Amortization |  |   | Amount       |   
|                                                  |                                          |                                                |   |     |              |  |   |              |   
|Automotive and Other Operations                   |                                          |                                                |   |     |              |  |   |              |    |   |       |      
|Amortizing intangible assets:                     |                                          |                                                |   |     |              |  |   |              |    |   |       |      
|                                                  | Patents and intellectual property rights |                                                | $ | 510 |              |  | $ | 148          |    |   | $     | 362   |      
|Non-amortizing intangible assets:                 |                                          |                                                |   |     |              |  |   |              |    |   |       |      
|                                                  | Goodwill                                 |                                                |   |     |              |  |   |              |    |   |       | 757   |      
|                                                  | Prepaid pension asset (Note 18)          |                                                |   |     |              |  |   |              |    |   |       | 743   |      
|                                                  |                                          |                                                |   |     |              |  |   |              |   
|                                                  |                                          | Total goodwill and intangible assets           |   |     |              |  |   |              |    |   |       | $     | 1,862 | 
|Financing and Insurance Operations                |                                          |                                                |   |     |              |  |   |              |    |   |       |      
|Amortizing intangible assets:                     |                                          |                                                |   |     |              |  |   |              |    |   |       |      
|                                                  | Customer lists and contracts             |                                                | $ | 57  |              |  | $ | 41           |    |   | $     | 16    |      
|                                                  | Trademarks and other                     |                                                |   | 35  |              |  |   | 20           |    |   |       | 15    |      
|                                                  |                                          |                                                |   |     |              |  |   |              |   
|                                                  |                                          | Total                                          |   | $   | 92           |  |   | $            | 61 |   |       | $     | 31    | 
|                                                  |                                          |                                                |   |     |              |  |   |              |   
|Non-amortizing intangible assets:                 |                                          |                                                |   |     |              |  |   |              |    |   |       |      
|                                                  | Goodwill                                 |                                                |   |     |              |  |   |              |    |   |       | 2,446 |      
|                                                  |                                          |                                                |   |     |              |  |   |              |   
|                                                  |                                          | Total goodwill and intangible assets (Note 15) |   |     |              |  |   |              |    |   |       |       | 2,477 | 
|                                                  |                                          |                                                |   |     |              |  |   |              |   
|Total consolidated goodwill and intangible assets |                                          |                                                |   |     |              |  |   |              |    | $ | 4,339 |      
|                                                  |                                          |                                                |   |     |              |  |   |              |   

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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|         |                                                 
|-------- | ------------------------------------------------
|Note 14. | Goodwill and Intangible
    Assets  (concluded)

|                                                  |                                          |                                                |   |     |              |  |   |              |    |   |       |       |       | 
|------------------------------------------------- | ---------------------------------------- | ---------------------------------------------- | - | --- | ------------ |  | - | ------------ | -- | - | ----- | ----- | ----- | 
|                                                  |                                          | Gross Carrying                                 |   |     | Accumulated  |  |   | Net Carrying |   
|December 31, 2004                                 |                                          | Amount                                         |   |     | Amortization |  |   | Amount       |   
|                                                  |                                          |                                                |   |     |              |  |   |              |   
|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 18)          |                                                |   |     |              |  |   |              |    |   |       | 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    |      
|                                                  |                                          |                                                |   |     |              |  |   |              |   
|                                                  |                                          | Total                                          |   | $   | 113          |  |   | $            | 61 |   |       | $     | 52    | 
|                                                  |                                          |                                                |   |     |              |  |   |              |   
|Non-amortizing intangible assets:                 |                                          |                                                |   |     |              |  |   |              |    |   |       |      
|                                                  | Goodwill                                 |                                                |   |     |              |  |   |              |    |   |       | 3,274 |      
|                                                  |                                          |                                                |   |     |              |  |   |              |   
|                                                  |                                          | Total goodwill and intangible assets (Note 15) |   |     |              |  |   |              |    |   |       |       | 3,326 | 
|                                                  |                                          |                                                |   |     |              |  |   |              |   
|Total consolidated goodwill and intangible assets |                                          |                                                |   |     |              |  |   |              |    | $ | 4,925 |      
|                                                  |                                          |                                                |   |     |              |  |   |              |   





|                                                |  |      |     |   |     |        |     |       |  |   |      |   |  |          |       |   |  |   |       |  
|----------------------------------------------- |  | ---- | --- | - | --- | ------ | --- | ----- |  | - | ---- | - |  | -------- | ----- | - |  | - | ----- | -
|                                                |  |      |     |   |     | Total  |     |       |  |   |     
|                                                |  |      |     |   |     | Auto & |     |       |  |   |     
|                                                |  | GMNA |     |   | GME |        |     | Other |  |   | GMAC |   |  | Total GM |      
|                                                |  |      |     |   |     |        |     |       |  |   |      |   |  |          |      
|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 |  
|Goodwill acquired during the period             |  |      | 238 |   |     |        |    |       |  |   | 238  |   |  |          | 22    |   |  |   | 260   |  
|Impairment losses/other(1)                      |  |      |     |   |     |        |     |       |  |   |      |   |  |          | (734  | ) |  |   | (734  | )
|Effect of foreign currency translation          |  |      | (9  | ) |     |        | (72 | )     |  |   | (81  | ) |  |          | (57   | ) |  |   | (138  | )
|Transfers to reporting segment held for sale(2) |  |      |    |   |     |        |    |       |  |   |     |   |  |          | (59   | ) |  |   | (59   | )
|                                                |  |      |     |   |     |        |     |       |  |   |      |   |  |          |      
|Balance as of December 31, 2005                 |  | $    | 383 |   |     | $      | 374 |       |  | $ | 757  |   |  | $        | 2,446 |   |  | $ | 3,203 |  
|                                                |  |      |     |   |     |        |     |       |  |   |      |   |  |          |      






|    |                                                                                                                                                                                                                                                                 
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | In the fourth quarter of 2005, GMAC recorded a goodwill
    impairment pre-tax charge of $734 million, relating
    primarily to the goodwill recognized in conjunction with the
    1999 acquisition of The Bank of New Yorks commercial
    finance business.
|   
|(2) | At December 31, 2005, $59 million in GMAC Commercial
    Mortgage goodwill was reclassified to assets held for sale.                                                                                                                                            

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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|         |             
|-------- | ------------
|Note 15. | Other Assets



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



|                                       |                    |              |        |        |      |   |        |        | 
|-------------------------------------- | ------------------ | ------------ | ------ | ------ | ---- | - | ------ | ------ | 
|                                       |                    | December 31, |       
|                                       |                    |              |       
|                                       |                    | 2005         |        |        | 2004 |  
|                                       |                    |              |        |        |      |  
|Investments in equity securities       |                    | $            | 435    |        |      | $ | 350    |       
|Prepaid pension benefit cost (Note 18) |                    |              | 37,576 |        |      |   | 38,919 |       
|Other                                  |                    |              | 3,092  |        |      |   | 1,575  |       
|                                       |                    |              |        |        |      |  
|                                       | Total other assets |              | $      | 41,103 |      |   | $      | 40,844 | 
|                                       |                    |              |        |        |      |  







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



|                                                      |                    |              |       |        |      |   |       |        | 
|----------------------------------------------------- | ------------------ | ------------ | ----- | ------ | ---- | - | ----- | ------ | 
|                                                      |                    | December 31, |      
|                                                      |                    |              |      
|                                                      |                    | 2005         |       |        | 2004 |  
|                                                      |                    |              |       |        |      |  
|Mortgage servicing rights                             |                    | $            | 4,015 |        |      | $ | 3,890 |       
|Premiums and other insurance receivables              |                    |              | 1,873 |        |      |   | 1,763 |       
|Deferred policy acquisition costs                     |                    |              | 1,696 |        |      |   | 1,444 |       
|Derivative assets                                     |                    |              | 3,000 |        |      |   | 9,489 |       
|Repossessed and foreclosed assets, net                |                    |              | 689   |        |      |   | 615   |       
|Equity investments                                    |                    |              | 535   |        |      |   | 1,751 |       
|Intangible assets (Note 14)                           |                    |              | 2,477 |        |      |   | 3,326 |       
|Property (Note 13)                                    |                    |              | 1,748 |        |      |   | 1,850 |       
|Cash deposits held for securitization trusts          |                    |              | 2,907 |        |      |   | 1,836 |       
|Restricted cash collections for securitization trusts |                    |              | 1,871 |        |      |   | 2,217 |       
|Accrued interest and rent receivable                  |                    |              | 1,163 |        |      |   | 1,178 |       
|Real estate investments                               |                    |              | 1,320 |        |      |   | 1,473 |       
|Debt issuance costs                                   |                    |              | 726   |        |      |   | 753   |       
|Servicer advances                                     |                    |              | 499   |        |      |   | 769   |       
|Inventory (Note 10)                                   |                    |              | 503   |        |      |   | 530   |       
|Other                                                 |                    |              | 2,672 |        |      |   | 2,307 |       
|                                                      |                    |              |       |        |      |  
|                                                      | Total other assets |              | $     | 27,694 |      |   | $     | 35,191 | 
|                                                      |                    |              |       |        |      |  

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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|         |                           
|-------- | --------------------------
|Note 15. | Other Assets  (concluded)



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

|                                               |                                 |              |        |        |      |   |         |        | 
|---------------------------------------------- | ------------------------------- | ------------ | ------ | ------ | ---- | - | ------- | ------ | 
|                                               |                                 | December 31, |       
|                                               |                                 |              |       
|                                               |                                 | 2005         |        |        | 2004 |  
|                                               |                                 |              |        |        |      |  
|Auto & Other  other assets, as detailed above |                                 | $            | 41,103 |        |      | $ | 40,844  |       
|FIO  other assets, as detailed above          |                                 |              | 27,694 |        |      |   | 35,191  |       
|                                               |                                 |              |        |        |      |  
|                                               | Subtotal                        |              |        | 68,797 |      |   |         | 76,035 | 
|Prepaid assets and other                       |                                 |              | 1,837  |        |      |   | 1,874   |       
|Inventory (Note 10)                            |                                 |              | (503   | )      |      |   | (530    | )     
|Accounts receivable                            |                                 |              | (7,820 | )      |      |   | (14,523 | )     
|Intangible assets (Note 14)                    |                                 |              | (2,477 | )      |      |   | (3,326  | )     
|Property (Note 13)                             |                                 |              | (1,748 | )      |      |   | (1,850  | )     
|                                               |                                 |              |        |        |      |  
|                                               | Total consolidated other assets |              | $      | 58,086 |      |   | $       | 57,680 | 
|                                               |                                 |              |        |        |      |  



|         |                                                                   
|-------- | ------------------------------------------------------------------
|Note 16. | Accrued Expenses, Other Liabilities, and Deferred Income
    Taxes



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



|                                                         |                                                                          |              |        |        |      |   |        |        | 
|-------------------------------------------------------- | ------------------------------------------------------------------------ | ------------ | ------ | ------ | ---- | - | ------ | ------ | 
|                                                         |                                                                          | December 31, |       
|                                                         |                                                                          |              |       
|                                                         |                                                                          | 2005         |        |        | 2004 |  
|                                                         |                                                                          |              |        |        |      |  
|Dealer and customer allowances, claims, and discounts    |                                                                          | $            | 11,605 |        |      | $ | 11,492 |       
|Deferred revenue and deposits from rental car companies  |                                                                          |              | 13,611 |        |      |   | 13,239 |       
|Policy, product warranty, and recall campaigns           |                                                                          |              | 9,128  |        |      |   | 9,315  |       
|Delphi contingent exposure                               |                                                                          |              | 5,500  |        |      |   | 0      |       
|Payrolls and employee benefits (excludes postemployment) |                                                                          |              | 3,970  |        |      |   | 4,642  |       
|Unpaid losses under self-insurance programs              |                                                                          |              | 1,827  |        |      |   | 1,784  |       
|Taxes                                                    |                                                                          |              | 2,485  |        |      |   | 2,993  |       
|Interest                                                 |                                                                          |              | 1,011  |        |      |   | 922    |       
|Postemployment benefits  Plant idling (Note 5)          |                                                                          |              | 2,012  |        |      |   | 237    |       
|Postemployment benefits  Extended disability benefits   |                                                                          |              | 1,135  |        |      |   | 1,163  |       
|Fiat settlement (Note 2)                                 |                                                                          |              |       |        |      |   | 1,364  |       
|Other                                                    |                                                                          |              | 7,418  |        |      |   | 8,211  |       
|                                                         |                                                                          |              |        |        |      |  
|                                                         | Total accrued expenses and other liabilities                             |              | $      | 59,702 |      |   | $      | 55,362 | 
|Pensions                                                 |                                                                          |              | 90     |        |      |   | 84     |       
|Postretirement benefits                                  |                                                                          |              | 4,154  |        |      |   | 3,890  |       
|Deferred income taxes                                    |                                                                          |              | 742    |        |      |   | 3,072  |       
|                                                         |                                                                          |              |        |        |      |  
|                                                         | Total accrued expenses, other liabilities, and deferred income
    taxes |              | $      | 64,688 |      |   | $      | 62,408 | 
|                                                         |                                                                          |              |        |        |      |  
|                                                         | Current                                                                  |              | $      | 42,665 |      |   | $      | 46,202 | 
|                                                         | Non-current                                                              |              |        | 22,023 |      |   |        | 16,206 | 
|                                                         |                                                                          |              |        |        |      |  
|                                                         | Total accrued expenses, other liabilities, and deferred income
    taxes |              | $      | 64,688 |      |   | $      | 62,408 | 
|                                                         |                                                                          |              |        |        |      |  

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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




Note 16.     Accrued Expenses,
Other Liabilities, and Deferred Income Taxes 
(concluded)




|                                                        |  |              |        |   |      |   |        |  
|------------------------------------------------------- |  | ------------ | ------ | - | ---- | - | ------ | -
|                                                        |  | December 31, |       
|                                                        |  |              |       
|                                                        |  | 2005         |        |   | 2004 |  
|                                                        |  |              |        |   |      |  
|Beginning balance                                       |  | $            | 9,315  |   |      | $ | 8,832  |  
|Payments                                                |  |              | (4,696 | ) |      |   | (4,669 | )
|Increase in liability (warranties issued during period) |  |              | 5,159  |   |      |   | 5,065  |  
|Adjustments to liability (pre-existing warranties)      |  |              | (381   | ) |      |   | (85    | )
|Effect of foreign currency translation                  |  |              | (269   | ) |      |   | 172    |  
|                                                        |  |              |        |   |      |  
|Ending balance                                          |  | $            | 9,128  |   |      | $ | 9,315  |  
|                                                        |  |              |        |   |      |  





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



|                                                                                       |                                                            |              |       |        |      |   |       |        | 
|-------------------------------------------------------------------------------------- | ---------------------------------------------------------- | ------------ | ----- | ------ | ---- | - | ----- | ------ | 
|                                                                                       |                                                            | December 31, |      
|                                                                                       |                                                            |              |      
|                                                                                       |                                                            | 2005         |       |        | 2004 |  
|                                                                                       |                                                            |              |       |        |      |  
|Unpaid insurance losses, loss adjustment expenses, and unearned
    insurance premiums |                                                            | $            | 7,588 |        |      | $ | 7,232 |       
|Interest                                                                               |                                                            |              | 3,057 |        |      |   | 3,413 |       
|Deposits                                                                               |                                                            |              | 8,367 |        |      |   | 7,477 |       
|Interest rate derivatives                                                              |                                                            |              | 2,224 |        |      |   | 934   |       
|Other                                                                                  |                                                            |              | 3,122 |        |      |   | 3,922 |       
|                                                                                       |                                                            |              |       |        |      |  
|                                                                                       | Total other liabilities                                    |              | $     | 24,358 |      |   | $     | 22,978 | 
|Postretirement benefits                                                                |                                                            |              | 853   |        |      |   | 815   |       
|Deferred income taxes                                                                  |                                                            |              | 3,735 |        |      |   | 4,006 |       
|                                                                                       |                                                            |              |       |        |      |  
|                                                                                       | Total other liabilities and deferred income taxes          |              | $     | 28,946 |      |   | $     | 27,799 | 
|                                                                                       |                                                            |              |       |        |      |  
|                                                                                       | Total consolidated accrued expenses and other liabilities  |              | $     | 84,060 |      |   | $     | 78,340 | 
|                                                                                       |                                                            |              |       |        |      |  
|                                                                                       | Total consolidated deferred income tax liability (Note 12) |              | $     | 4,477  |      |   | $     | 7,078  | 
|                                                                                       |                                                            |              |       |        |      |  

II-97



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|         |                                 
|-------- | --------------------------------
|Note 17. | Long-Term Debt and Loans Payable



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



|                                 |                              |                                      |                     |                                        |              |  |  |      |      |  |      |        |     |       |        |        |       |       |        | 
|-------------------------------- | ---------------------------- | ------------------------------------ | ------------------- | -------------------------------------- | ------------ |  |  | ---- | ---- |  | ---- | ------ | --- | ----- | ------ | ------ | ----- | ----- | ------ | 
|                                 |                              | Weighted-Average                     |                     |                                        |             
|                                 |                              | Interest Rate                        |                     |                                        | December 31, | 
|                                 |                              |                                      |                     |                                        |              | 
|                                 |                              | 2005                                 |                     |                                        | 2004         |  |  | 2005 |      |  | 2004 |       
|                                 |                              |                                      |                     |                                        |              |  |  |      |      |  |      |       
|Long-term debt and loans payable |                              |                                      |                     |                                        |              |  |  |      |      |  |      |        |     |       |        |       
|                                 | Payable within one year      |                                      |                     |                                        |              |  |  |      |      |  |      |        |     |       |        |        |      
|                                 |                              | Current portion of long-term debt(1) |                     |                                        | 5.8%         |  |  |      | 5.7% |  |      | $      | 564 |       |        | $      | 584   |      
|                                 |                              | All other                            |                     |                                        | 7.4%         |  |  |      | 3.0% |  |      |        | 955 |       |        |        | 1,478 |      
|                                 |                              |                                      |                     |                                        |              |  |  |      |      |  |      |       
|                                 |                              |                                      | Total loans payable |                                        |              |  |  |      |      |  |      |        |     | 1,519 |        |        |       | 2,062 |       
|                                 | Payable beyond one year(1)   |                                      |                     | 6.9%                                   |              |  |  | 6.8% |      |  |      | 31,084 |     |       |        | 30,425 |      
|                                 | Unamortized discount         |                                      |                     |                                        |              |  |  |      |      |  |      | (97    | )   |       |        | (103   | )    
|                                 | Mark-to-market adjustment(2) |                                      |                     |                                        |              |  |  |      |      |  |      | 27     |     |       |        | 138    |      
|                                 |                              |                                      |                     |                                        |              |  |  |      |      |  |      |       
|                                 |                              |                                      |                     | Total long-term debt                   |              |  |  |      |      |  |      |        |     |       | 31,014 |        |       |       | 30,460 | 
|                                 |                              |                                      |                     |                                        |              |  |  |      |      |  |      |       
|                                 |                              |                                      |                     | Total long-term debt and loans payable |              |  |  |      |      |  |      |        |     | $     | 32,533 |        |       | $     | 32,522 | 
|                                 |                              |                                      |                     |                                        |              |  |  |      |      |  |      |       






|    |                                                                                                                                                                                                                                            
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The weighted-average interest rates include the impact of
    interest rate swap agreements.                                                                                                                                               
|   
|(2) | Effective January 1, 2001 the Corporation has been
    recording its hedged debt at fair market value on its balance
    sheet due to the adoption of SFAS No. 133,
    Accounting for Derivative Instruments and Hedging
    Activities.













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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


Note 17.                              Long-Term
Debt and Loans Payable  (continued)








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



|                                           |                                      |                                        |      |      |              |  |      |      |  |   |         |        |         |   |         |        |         | 
|------------------------------------------ | ------------------------------------ | -------------------------------------- | ---- | ---- | ------------ |  | ---- | ---- |  | - | ------- | ------ | ------- | - | ------- | ------ | ------- | 
|                                           |                                      | Weighted-Average                       |      |      |             
|                                           |                                      | Interest Rate                          |      |      | December 31, | 
|                                           |                                      |                                        |      |      |              | 
|                                           |                                      | 2005                                   |      |      | 2004         |  |      | 2005 |  |   | 2004    |       
|                                           |                                      |                                        |      |      |              |  |      |      |  |   |         |       
|Payable within one year                    |                                      |                                        |      |      |              |  |      |      |  |   |         |        |         |   |         |       
|                                           | Current portion of long-term debt(1) |                                        |      | 4.9% |              |  |      | 3.9% |  |   | $       | 41,733 |         |   | $       | 37,300 |        
|                                           | Commercial paper(1)                  |                                        |      | 5.5% |              |  |      | 2.5% |  |   |         | 528    |         |   |         | 8,416  |        
|                                           | All other                            |                                        |      | 4.6% |              |  |      | 2.8% |  |   |         | 39,793 |         |   |         | 45,327 |        
|                                           |                                      |                                        |      |      |              |  |      |      |  |   |         |       
|                                           |                                      | Total loans payable                    |      |      |              |  |      |      |  |   |         |        | 82,054  |   |         |        | 91,043  | 
|                                           |                                      |                                        |      |      |              |  |      |      |  |   |         |       
|Payable beyond one year(1)                 |                                      |                                        | 5.2% |      |              |  | 4.9% |      |  |   | 171,699 |        |         |   | 176,090 |       
|Unamortized discount                       |                                      |                                        |      |      |              |  |      |      |  |   | (538    | )      |         |   | (650    | )     
|Mark to market adjustment                  |                                      |                                        |      |      |              |  |      |      |  |   | 2       |        |         |   | 1,274   |       
|                                           |                                      |                                        |      |      |              |  |      |      |  |   |         |       
|                                           |                                      | Total long-term debt and loans payable |      |      |              |  |      |      |  |   |         |        | 171,163 |   |         |        | 176,714 | 
|                                           |                                      | Total debt                             |      |      |              |  |      |      |  |   |         | $      | 253,217 |   |         | $      | 267,757 | 
|                                           |                                      |                                        |      |      |              |  |      |      |  |   |         |       
|Total consolidated notes and loans payable |                                      |                                        |      |      |              |  |      |      |  | $ | 285,750 |        |         | $ | 300,279 |       
|                                           |                                      |                                        |      |      |              |  |      |      |  |   |         |       






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





II-99



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|         |                                               
|-------- | ----------------------------------------------
|Note 17. | Long-Term Debt and Loans Payable  (concluded)









|         |                                           
|-------- | ------------------------------------------
|Note 18. | Pensions and Other Postretirement Benefits

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


non-U.S.


|                         |  |      |     |  |      |   |     |      |  |   |        | 
|------------------------ |  | ---- | --- |  | ---- | - | --- | ---- |  | - | ------ | 
|                         |  | 2005 |     |  | 2004 |   |     | 2003 | 
|                         |  |      |     |  |      |   |     |      | 
|U.S. hourly and salaried |  | $    |    |  |      | $ |    |      |  | $ | 18,504 | 
|Other U.S.               |  |      | 125 |  |      |   | 117 |      |  |   | 117    | 
|Non-U.S.                 |  |      | 708 |  |      |   | 802 |      |  |   | 442    | 

non-U.S.


II-100



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|         |                                                             
|-------- | ------------------------------------------------------------
|Note 18. | Pensions and Other Postretirement Benefits 
    (continued)

non-U.S.




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


II-101



---



##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|         |                                                             
|-------- | ------------------------------------------------------------
|Note 18. | Pensions and Other Postretirement Benefits 
    (continued)

|                                                                  |                       |                                        |                       |        |                  |        |        |                     |        |          |                |        |         |        |        |        |        |        |         |         |         |         |         |         |         |         |        |        |        |        |        |        |        |        |  
|----------------------------------------------------------------- | --------------------- | -------------------------------------- | --------------------- | ------ | ---------------- | ------ | ------ | ------------------- | ------ | -------- | -------------- | ------ | ------- | ------ | ------ | ------ | ------ | ------ | ------- | ------- | ------- | ------- | ------- | ------- | ------- | ------- | ------ | ------ | ------ | ------ | ------ | ------ | ------ | ------ | -
|                                                                  |                       | U.S. Plans                             |                       |        | Non-U.S. Plans   |        |        |                     |        | Non-U.S. |               
|                                                                  |                       | Pension Benefits                       |                       |        | Pension Benefits |        |        | U.S. Other Benefits |        |          | Other Benefits |       
|                                                                  |                       |                                        |                       |        |                  |        |        |                     |        |          |                |       
|                                                                  |                       | 2005                                   |                       |        | 2004             |        |        | 2005                |        |          | 2004           |        |         | 2005   |        |        | 2004   |        |         | 2005    |         |         | 2004    |        
|                                                                  |                       |                                        |                       |        |                  |        |        |                     |        |          |                |        |         |        |        |        |        |        |         |         |         |         |         |        
|                                                                  |                       | (Dollars in millions)                  |                      
|Change in benefit obligations                                     |                       |                                        |                       |        |                  |        |        |                     |        |          |                |        |         |        |        |        |        |        |         |         |         |         |         |         |         |         |        |        |        |        |        |       
|Benefit obligation at beginning of year                           |                       | $                                      | 90,760                |        |                  | $      | 87,285 |                     |        | $        | 18,056         |        |         | $      | 15,088 |        |        | $      | 73,772  |         |         | $       | 64,547  |         |         | $       | 3,702  |        |        | $      | 2,995  |       
|Service cost                                                      |                       |                                        | 1,117                 |        |                  |        | 1,097  |                     |        |          | 322            |        |         |        | 247    |        |        |        | 702     |         |         |         | 566     |         |         |         | 50     |        |        |        | 39     |       
|Interest cost                                                     |                       |                                        | 4,883                 |        |                  |        | 5,050  |                     |        |          | 965            |        |         |        | 892    |        |        |        | 4,107   |         |         |         | 3,726   |         |         |         | 218    |        |        |        | 201    |       
|Plan participants contributions                                  |                       |                                        | 22                    |        |                  |        | 22     |                     |        |          | 27             |        |         |        | 26     |        |        |        | 88      |         |         |         | 85      |         |         |         | 1      |        |        |        | 2      |       
|Amendments                                                        |                       |                                        | (65                   | )      |                  |        | 54     |                     |        |          | 113            |        |         |        | 163    |        |        |        |        |         |         |         | 10      |         |         |         |       |        |        |        |       |       
|Actuarial losses                                                  |                       |                                        | (975                  | )      |                  |        | 3,683  |                     |        |          | 2,233          |        |         |        | 1,040  |        |        |        | 6,720   |         |         |         | 8,527   |         |         |         | (200   | )      |        |        | 288    |       
|Benefits paid                                                     |                       |                                        | (6,695                | )      |                  |        | (6,605 | )                   |        |          | (911           | )      |         |        | (806   | )      |        |        | (4,208  | )       |         |         | (3,690  | )       |         |         | (118   | )      |        |        | (114   | )     
|Exchange rate movements                                           |                       |                                        |                      |        |                  |        |       |                     |        |          | (942           | )      |         |        | 1,201  |        |        |        |        |         |         |         |        |         |         |         |       |        |        |        |       |       
|Curtailments, settlements, and other                              |                       |                                        | 86                    |        |                  |        | 174    |                     |        |          | 778            |        |         |        | 205    |        |        |        |        |         |         |         | 1       |         |         |         | 107    |        |        |        | 291    |       
|                                                                  |                       |                                        |                       |        |                  |        |        |                     |        |          |                |        |         |        |        |        |        |        |         |         |         |         |         |        
|Benefit obligation at end of year                                 |                       |                                        | 89,133                |        |                  |        | 90,760 |                     |        |          | 20,641         |        |         |        | 18,056 |        |        |        | 81,181  |         |         |         | 73,772  |         |         |         | 3,760  |        |        |        | 3,702  |       
|                                                                  |                       |                                        |                       |        |                  |        |        |                     |        |          |                |        |         |        |        |        |        |        |         |         |         |         |         |        
|Change in plan assets                                             |                       |                                        |                       |        |                  |        |        |                     |        |          |                |        |         |        |        |        |        |        |         |         |         |         |         |         |         |         |        |        |        |        |        |       
|Fair value of plan assets at beginning of year                    |                       |                                        | 90,886                |        |                  |        | 86,169 |                     |        |          | 9,023          |        |         |        | 7,560  |        |        |        | 16,016  |         |         |         | 9,998   |         |         |         |       |        |        |        |       |       
|Actual return on plan assets                                      |                       |                                        | 10,924                |        |                  |        | 11,046 |                     |        |          | 1,382          |        |         |        | 814    |        |        |        | 2,258   |         |         |         | 981     |         |         |         |       |        |        |        |       |       
|Employer contributions                                            |                       |                                        | 125                   |        |                  |        | 117    |                     |        |          | 505            |        |         |        | 802    |        |        |        | 2,008   |         |         |         | 5,037   |         |         |         |       |        |        |        |       |       
|Plan participants contributions                                  |                       |                                        | 22                    |        |                  |        | 22     |                     |        |          | 27             |        |         |        | 26     |        |        |        |        |         |         |         |        |         |         |         |       |        |        |        |       |       
|Benefits paid                                                     |                       |                                        | (6,695                | )      |                  |        | (6,605 | )                   |        |          | (911           | )      |         |        | (806   | )      |        |        |        |         |         |         |        |         |         |         |       |        |        |        |       |       
|Exchange rate movements                                           |                       |                                        |                      |        |                  |        |       |                     |        |          | (119           | )      |         |        | 627    |        |        |        |        |         |         |         |        |         |         |         |       |        |        |        |       |       
|Curtailments, settlements, and other                              |                       |                                        | (12                   | )      |                  |        | 137    |                     |        |          | 18             |        |         |        |       |        |        |        |        |         |         |         |        |         |         |         |       |        |        |        |       |       
|                                                                  |                       |                                        |                       |        |                  |        |        |                     |        |          |                |        |         |        |        |        |        |        |         |         |         |         |         |        
|Fair value of plan assets at end of year                          |                       |                                        | 95,250                |        |                  |        | 90,886 |                     |        |          | 9,925          |        |         |        | 9,023  |        |        |        | 20,282  |         |         |         | 16,016  |         |         |         |       |        |        |        |       |       
|                                                                  |                       |                                        |                       |        |                  |        |        |                     |        |          |                |        |         |        |        |        |        |        |         |         |         |         |         |        
|Funded status(1)                                                  |                       |                                        | 6,117                 |        |                  |        | 126    |                     |        |          | (10,716        | )      |         |        | (9,033 | )      |        |        | (60,899 | )       |         |         | (57,756 | )       |         |         | (3,760 | )      |        |        | (3,702 | )     
|Unrecognized actuarial loss                                       |                       |                                        | 25,538                |        |                  |        | 31,604 |                     |        |          | 6,554          |        |         |        | 5,411  |        |        |        | 30,592  |         |         |         | 27,345  |         |         |         | 1,698  |        |        |        | 1,326  |       
|Unrecognized prior service cost                                   |                       |                                        | 4,616                 |        |                  |        | 5,862  |                     |        |          | 770            |        |         |        | 808    |        |        |        | (714    | )       |         |         | (445    | )       |         |         | (584   | )      |        |        | 51     |       
|Unrecognized transition obligation                                |                       |                                        |                      |        |                  |        |       |                     |        |          | 28             |        |         |        | 39     |        |        |        |        |         |         |         |        |         |         |         |       |        |        |        |       |       
|Employer contributions/withdrawals in fourth quarter              |                       |                                        |                      |        |                  |        |       |                     |        |          | 203            |        |         |        |       |        |        |        | (1,176  | )       |         |         | 4,000   |         |         |         |       |        |        |        |       |       
|Benefits paid in fourth quarter                                   |                       |                                        |                      |        |                  |        |       |                     |        |          |               |        |         |        |       |        |        |        | 846     |         |         |         | 999     |         |         |         |       |        |        |        |       |       
|Business Combination after Measurement Date                       |                       |                                        |                      |        |                  |        |       |                     |        |          | (187           | )      |         |        |       |        |        |        |        |         |         |         | __     |         |         |         |       |        |        |        |       |       
|                                                                  |                       |                                        |                       |        |                  |        |        |                     |        |          |                |        |         |        |        |        |        |        |         |         |         |         |         |        
|                                                                  |                       |                                        | Net amount recognized |        | $                | 36,271 |        |                     | $      | 37,592   |                |        | $       | (3,348 | )      |        | $      | (2,775 | )       |         | $       | (31,351 | )       |         | $       | (25,857 | )      |        | $      | (2,646 | )      |        | $      | (2,325 | )
|                                                                  |                       |                                        |                       |        |                  |        |        |                     |        |          |                |        |         |        |        |        |        |        |         |         |         |         |         |        
|Amounts recognized in the consolidated balance sheets consist of: |                       |                                        |                       |        |                  |        |        |                     |        |          |                |        |         |        |        |        |        |        |         |         |         |         |         |         |         |         |        |        |        |        |        |       
|                                                                  |                       | Prepaid benefit cost                   |                       | $      | 37,280           |        |        | $                   | 38,570 |          |                | $      | 296     |        |        | $      | 349    |        |         | $       |        |         |         | $       |        |         |        | $      |       |        |        | $      |       |       
|                                                                  |                       | Accrued benefit liability              |                       |        | (1,177           | )      |        |                     | (1,152 | )        |                |        | (10,127 | )      |        |        | (8,303 | )      |         |         | (31,351 | )       |         |         | (25,857 | )       |        |        | (2,646 | )      |        | $      | (2,325 | )     
|                                                                  |                       | Intangible asset                       |                       |        |                 |        |        |                     |       |          |                |        | 743     |        |        |        | 765    |        |         |         |        |         |         |         |        |         |        |        |       |        |        |        |       |       
|                                                                  |                       | Accumulated other comprehensive income |                       |        | 168              |        |        |                     | 174    |          |                |        | 5,740   |        |        |        | 4,414  |        |         |         |        |         |         |         |        |         |        |        |       |        |        |        |       |       
|                                                                  |                       |                                        |                       |        |                  |        |        |                     |        |          |                |        |         |        |        |        |        |        |         |         |         |         |         |        
|                                                                  | Net amount recognized |                                        | $                     | 36,271 |                  |        | $      | 37,592              |        |          | $              | (3,348 | )       |        | $      | (2,775 | )      |        | $       | (31,351 | )       |         | $       | (25,857 | )       |         | $      | (2,646 | )      |        | $      | (2,325 | )     
|                                                                  |                       |                                        |                       |        |                  |        |        |                     |        |          |                |        |         |        |        |        |        |        |         |         |         |         |         |        






|    |                                                                                                                                                                                 
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Includes overfunded status of the combined U.S. hourly and
    salaried pension plans of $7.5 billion as of
    December 31, 2005, and $1.6 billion as of
    December 31, 2004.

II-102



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|         |                                                             
|-------- | ------------------------------------------------------------
|Note 18. | Pensions and Other Postretirement Benefits 
    (continued)



|                                        |                           |            |        |       |                |   |        |        |  |   |        |        |  |   |        |        | 
|--------------------------------------- | ------------------------- | ---------- | ------ | ----- | -------------- | - | ------ | ------ |  | - | ------ | ------ |  | - | ------ | ------ | 
|                                        |                           | U.S. Plans |        |       | Non-U.S. Plans |  
|                                        |                           |            |        |       |                |  
|                                        |                           | 2005       |        |       | 2004           |   |        | 2005   |  |   | 2004   |       
|                                        |                           |            |        |       |                |   |        |        |  |   |        |       
|Accumulated Benefit Obligation          |                           | $          | 86,885 |       |                | $ | 88,053 |        |  | $ | 19,714 |        |  | $ | 17,097 |       
|Plans with ABO in excess of plan assets |                           |            |        |       |                |   |        |        |  |   |        |        |  |   |        |       
|                                        | ABO                       |            | $      | 1,207 |                |   | $      | 1,224  |  |   | $      | 19,232 |  |   | $      | 16,631 | 
|                                        | Fair value of plan assets |            |        | 30    |                |   |        | 85     |  |   |        | 9,249  |  |   |        | 8,388  | 
|Plans with PBO in excess of plan assets |                           |            |        |       |                |   |        |        |  |   |        |        |  |   |        |       
|                                        | PBO                       |            | $      | 1,703 |                |   | $      | 31,176 |  |   | $      | 20,515 |  |   | $      | 17,907 | 
|                                        | Fair value of plan assets |            |        | 295   |                |   |        | 29,548 |  |   |        | 9,622  |  |   |        | 8,708  | 



|                                                                                              |  |                             |        |                |                  |   |        |                     |          |   |                |   |  |      |       |   |      |   |      |      |  |   |      |   |  |      |        |   |      |   |        |      |  |   |       |   |  |   |      |   |  |   |      |   |  |   |      |  
|--------------------------------------------------------------------------------------------- |  | --------------------------- | ------ | -------------- | ---------------- | - | ------ | ------------------- | -------- | - | -------------- | - |  | ---- | ----- | - | ---- | - | ---- | ---- |  | - | ---- | - |  | ---- | ------ | - | ---- | - | ------ | ---- |  | - | ----- | - |  | - | ---- | - |  | - | ---- | - |  | - | ---- | -
|                                                                                              |  |                             |        | Non-U.S. Plans |                  |   |        |                     | Non-U.S. |  
|                                                                                              |  | U.S. Plans Pension Benefits |        |                | Pension Benefits |   |        | U.S. Other Benefits |          |   | Other Benefits |  
|                                                                                              |  |                             |        |                |                  |   |        |                     |          |   |                |  
|                                                                                              |  | 2005                        |        |                | 2004             |   |        | 2003                |          |   | 2005           |   |  | 2004 |       |   | 2003 |   |      | 2005 |  |   | 2004 |   |  | 2003 |        |   | 2005 |   |        | 2004 |  |   | 2003  |  
|                                                                                              |  |                             |        |                |                  |   |        |                     |          |   |                |   |  |      |       |   |      |   |      |      |  |   |      |   |  |      |        |   |      |   |        |      |  |   |       |  
|Components of expense                                                                         |  |                             |        |                |                  |   |        |                     |          |   |                |   |  |      |       |   |      |   |      |      |  |   |      |   |  |      |        |   |      |   |        |      |  |   |       |   |  |   |      |   |  |   |      |   |  |   |      |  
|Service cost                                                                                  |  | $                           | 1,117  |                |                  | $ | 1,097  |                     |          | $ | 919            |   |  | $    | 322   |   |      | $ | 247  |      |  | $ | 228  |   |  | $    | 702    |   |      | $ | 566    |      |  | $ | 503   |   |  | $ | 50   |   |  | $ | 39   |   |  | $ | 34   |  
|Interest cost                                                                                 |  |                             | 4,883  |                |                  |   | 5,050  |                     |          |   | 5,162          |   |  |      | 965   |   |      |   | 892  |      |  |   | 803  |   |  |      | 4,107  |   |      |   | 3,726  |      |  |   | 3,630 |   |  |   | 218  |   |  |   | 201  |   |  |   | 168  |  
|Expected return on plan assets                                                                |  |                             | (7,898 | )              |                  |   | (7,823 | )                   |          |   | (6,374         | ) |  |      | (740  | ) |      |   | (669 | )    |  |   | (573 | ) |  |      | (1,684 | ) |      |   | (1,095 | )    |  |   | (444  | ) |  |   |     |   |  |   |     |   |  |   |     |  
|Amortization of prior service cost                                                            |  |                             | 1,164  |                |                  |   | 1,279  |                     |          |   | 1,148          |   |  |      | 102   |   |      |   | 93   |      |  |   | 101  |   |  |      | (70    | ) |      |   | (87    | )    |  |   | (19   | ) |  |   | 8    |   |  |   | 8    |   |  |   | 7    |  
|Amortization of transition obligation/(asset)                                                 |  |                             |       |                |                  |   |       |                     |          |   |               |   |  |      | 6     |   |      |   | 7    |      |  |   | 11   |   |  |      |       |   |      |   |       |      |  |   |      |   |  |   |     |   |  |   |     |   |  |   |     |  
|Recognized net actuarial loss                                                                 |  |                             | 2,065  |                |                  |   | 1,857  |                     |          |   | 1,744          |   |  |      | 281   |   |      |   | 188  |      |  |   | 167  |   |  |      | 2,250  |   |      |   | 1,138  |      |  |   | 722   |   |  |   | 88   |   |  |   | 62   |   |  |   | 46   |  
|Curtailments, settlements, and other                                                          |  |                             | 115    |                |                  |   | 34     |                     |          |   | 27             |   |  |      | 114   |   |      |   | 204  |      |  |   | 49   |   |  |      |       |   |      |   |       |      |  |   |      |   |  |   | 2    |   |  |   |     |   |  |   | 3    |  
|                                                                                              |  |                             |        |                |                  |   |        |                     |          |   |                |   |  |      |       |   |      |   |      |      |  |   |      |   |  |      |        |   |      |   |        |      |  |   |       |  
|Net expense                                                                                   |  | $                           | 1,446  |                |                  | $ | 1,494  |                     |          | $ | 2,626          |   |  | $    | 1,050 |   |      | $ | 962  |      |  | $ | 786  |   |  | $    | 5,305  |   |      | $ | 4,248  |      |  | $ | 4,392 |   |  | $ | 366  |   |  | $ | 310  |   |  | $ | 258  |  
|                                                                                              |  |                             |        |                |                  |   |        |                     |          |   |                |   |  |      |       |   |      |   |      |      |  |   |      |   |  |      |        |   |      |   |        |      |  |   |       |  
|Weighted-average assumptions used to determine benefit
    obligations at December 31(1)      |  |                             |        |                |                  |   |        |                     |          |   |                |   |  |      |       |   |      |   |      |      |  |   |      |   |  |      |        |   |      |   |        |      |  |   |       |   |  |   |      |   |  |   |      |   |  |   |      |  
|Discount rate                                                                                 |  |                             | 5.70   | %              |                  |   | 5.60   | %                   |          |   | 6.00           | % |  |      | 4.72  | % |      |   | 5.61 | %    |  |   | 6.12 | % |  |      | 5.45   | % |      |   | 5.75   | %    |  |   | 6.25  | % |  |   | 5.00 | % |  |   | 6.00 | % |  |   | 6.75 | %
|Rate of compensation increase                                                                 |  |                             | 4.9    | %              |                  |   | 5.0    | %                   |          |   | 5.0            | % |  |      | 3.1   | % |      |   | 3.2  | %    |  |   | 3.4  | % |  |      | 4.2    | % |      |   | 3.9    | %    |  |   | 4.2   | % |  |   | 4.0  | % |  |   | 4.0  | % |  |   | 4.0  | %
|Weighted-average assumptions used to determine net expense
    for years ended December 31(2) |  |                             |        |                |                  |   |        |                     |          |   |                |   |  |      |       |   |      |   |      |      |  |   |      |   |  |      |        |   |      |   |        |      |  |   |       |   |  |   |      |   |  |   |      |   |  |   |      |  
|Discount rate                                                                                 |  |                             | 5.60   | %              |                  |   | 6.00   | %                   |          |   | 6.75           | % |  |      | 5.61  | % |      |   | 6.12 | %    |  |   | 6.23 | % |  |      | 5.75   | % |      |   | 6.25   | %    |  |   | 6.75  | % |  |   | 6.00 | % |  |   | 6.75 | % |  |   | 7.00 | %
|Expected return on plan assets                                                                |  |                             | 9.0    | %              |                  |   | 9.0    | %                   |          |   | 9.0            | % |  |      | 8.5   | % |      |   | 8.4  | %    |  |   | 8.5  | % |  |      | 8.8    | % |      |   | 8.0    | %    |  |   | 7.0   | % |  |   |     |   |  |   |     |   |  |   |     |  
|Rate of compensation increase                                                                 |  |                             | 5.0    | %              |                  |   | 5.0    | %                   |          |   | 5.0            | % |  |      | 3.2   | % |      |   | 3.4  | %    |  |   | 3.4  | % |  |      | 3.9    | % |      |   | 4.2    | %    |  |   | 4.4   | % |  |   | 4.0  | % |  |   | 4.0  | % |  |   | 4.0  | %






|    |                                   
|--- | ----------------------------------
|(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 18. | Pensions and Other Postretirement Benefits 
    (continued)













| |   |                                                                                                                                                                                                                                                       
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | GM computes the spread between the yield curve and the swap
    curve (a market-based curve),                                                                                                                                                         
|
| |  | To extrapolate the yield curve for the period beginning after
    the last year where substantial bonds are available in the bond
    universe and ending in year 50, GM adds the spread to the swap
    curve, which is observable over 50 years, and
|
| |  | To extrapolate the yield curve beyond the 50th year, GM
    assumes that the last one-year forward rate on the yield curve
    (at the 49th year) remains constant for the remaining years.                                                           









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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|         |                                                             
|-------- | ------------------------------------------------------------
|Note 18. | Pensions and Other Postretirement Benefits 
    (continued)



|                                               |  |      |      |   |      |  |      |  
|---------------------------------------------- |  | ---- | ---- | - | ---- |  | ---- | -
|Assumed Health-care Trend Rates at December 31 |  | 2005 |      |   | 2004 | 
|                                               |  |      |      |   |      | 
|Initial Health-care Cost Trend Rate            |  |      | 10.0 | % |      |  | 10.5 | %
|Ultimate Health-care Cost Trend Rate           |  |      | 5.0  | % |      |  | 5.0  | %
|Number of Years to Ultimate Trend Rate         |  |      | 6    |   |      |  | 6    |  



non-U.S.




41%-49%; 30%-36%; 8%-12%; 9%-13%.




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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|         |                                                             
|-------- | ------------------------------------------------------------
|Note 18. | Pensions and Other Postretirement Benefits 
    (concluded)

non-U.S.


|                  |       |               |    |             |                  |  |    |               |   |  |      |     |   |      |    |     |      |  |    |     |   |  |    |     |  
|----------------- | ----- | ------------- | -- | ----------- | ---------------- |  | -- | ------------- | - |  | ---- | --- | - | ---- | -- | --- | ---- |  | -- | --- | - |  | -- | --- | -
|                  |       |               |    | Plan Assets |                  |  |   
|                  |       | Plan Assets   |    |             | Primary          |  |    | Plan Assets   |  
|                  |       | U.S. Pension  |    |             | Non-U.S. Pension |  |    | OPEB          |  
|                  |       | Plans Actual  |    |             | Plans Actual     |  |    | Actual        |  
|                  |       | Percentage of |    |             | Percentage of    |  |    | Percentage of |  
|                  |       | Plan Assets   |    |             | Plan Assets      |  |    | Plan Assets   |  
|                  |       |               |    |             |                  |  |    |               |  
|Asset Category    |       | 2005          |    |             | 2004             |  |    | 2005          |   |  | 2004 |     |   | 2005 |    |     | 2004 | 
|                  |       |               |    |             |                  |  |    |               |   |  |      |     |   |      |    |     |      | 
|Equity Securities |       |               | 47 | %           |                  |  | 47 | %             |   |  | 61   | %   |   |      | 61 | %   |      |  | 52 | %   |   |  | 41 | %  
|Debt Securities   |       |               | 32 | %           |                  |  | 35 | %             |   |  | 31   | %   |   |      | 31 | %   |      |  | 31 | %   |   |  | 48 | %  
|Real Estate       |       |               | 7  | %           |                  |  | 8  | %             |   |  | 8    | %   |   |      | 8  | %   |      |  | 3  | %   |   |  | 2  | %  
|Other             |       |               | 14 | %           |                  |  | 10 | %             |   |  | 0    | %   |   |      | 0  | %   |      |  | 14 | %   |   |  | 9  | %  
|                  |       |               |    |             |                  |  |    |               |   |  |      |     |   |      |    |     |      | 
|                  | Total |               |    | 100         | %                |  |    | 100           | % |  |      | 100 | % |      |    | 100 | %    |  |    | 100 | % |  |    | 100 | %
|                  |       |               |    |             |                  |  |    |               |   |  |      |     |   |      |    |     |      | 









|          |  |                  |        |              |                |   |               |                         |  |                |                 |  |               |          |       |                |                 |   |     |  |  |   |   | 
|--------- |  | ---------------- | ------ | ------------ | -------------- | - | ------------- | ----------------------- |  | -------------- | --------------- |  | ------------- | -------- | ----- | -------------- | --------------- | - | --- |  |  | - | - | 
|          |  | Pension Benefits |        |              | Other Benefits |   |               | Non-U.S. Other Benefits
|          |  |                  |        |              |                |   |               |                        
|          |  |                  |        | Primary Non- |                |   | Gross Benefit |                         |  | Gross Medicare |                 |  | Gross Benefit |          |       | Gross Medicare
|          |  | U.S. Plans       |        |              | U.S. Plans     |   |               | Payments                |  |                | Part D Receipts |  |               | Payments |       |                | Part D Receipts
|          |  |                  |        |              |                |   |               |                         |  |                |                 |  |               |          |       |                |                
|2006      |  |                  | 6,794  |              |                |   | 834           |                         |  |                | 4,337           |  |               |          | 181   |                |                 |   | 128 |  |  |   |  | 
|2007      |  |                  | 6,693  |              |                |   | 865           |                         |  |                | 4,637           |  |               |          | 271   |                |                 |   | 137 |  |  |   |  | 
|2008      |  |                  | 6,728  |              |                |   | 905           |                         |  |                | 4,916           |  |               |          | 301   |                |                 |   | 147 |  |  |   |  | 
|2009      |  |                  | 6,744  |              |                |   | 940           |                         |  |                | 5,163           |  |               |          | 328   |                |                 |   | 157 |  |  |   |  | 
|2010      |  |                  | 6,754  |              |                |   | 979           |                         |  |                | 5,383           |  |               |          | 353   |                |                 |   | 167 |  |  |   |  | 
|2011-2015 |  | $                | 33,517 |              |                | $ | 5,443         |                         |  | $              | 29,187          |  |               | $        | 2,116 |                |                 | $ | 993 |  |  | $ |  | 

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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|         |                                   
|-------- | ----------------------------------
|Note 19. | Commitments and Contingent Matters



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



|                        |  |      |     |   |      |   |     |      |  |   |      |      |  |      |     |   |           |   |     |   |  |   |      |  
|----------------------- |  | ---- | --- | - | ---- | - | --- | ---- |  | - | ---- | ---- |  | ---- | --- | - | --------- | - | --- | - |  | - | ---- | -
|                        |  |      |     |   |      |   |     |      |  |   |      | 2011 | 
|                        |  | 2006 |     |   | 2007 |   |     | 2008 |  |   | 2009 |      |  | 2010 |     |   | and after |  
|                        |  |      |     |   |      |   |     |      |  |   |      |      |  |      |     |   |           |  
|Minimum commitments     |  | $    | 194 |   |      | $ | 190 |      |  | $ | 446  |      |  | $    | 148 |   |           | $ | 141 |   |  | $ | 874  |  
|Sublease income         |  |      | (19 | ) |      |   | (19 | )    |  |   | (19  | )    |  |      | (19 | ) |           |   | (19 | ) |  |   | (301 | )
|                        |  |      |     |   |      |   |     |      |  |   |      |      |  |      |     |   |           |  
|Net minimum commitments |  | $    | 175 |   |      | $ | 171 |      |  | $ | 427  |      |  | $    | 129 |   |           | $ | 122 |   |  | $ | 573  |  
|                        |  |      |     |   |      |   |     |      |  |   |      |      |  |      |     |   |           |  



|                        |  |      |       |   |      |   |      |      |  |   |       |      |  |      |      |   |           |   |      |   |  |   |        |  
|----------------------- |  | ---- | ----- | - | ---- | - | ---- | ---- |  | - | ----- | ---- |  | ---- | ---- | - | --------- | - | ---- | - |  | - | ------ | -
|                        |  |      |       |   |      |   |      |      |  |   |       | 2011 | 
|                        |  | 2006 |       |   | 2007 |   |      | 2008 |  |   | 2009  |      |  | 2010 |      |   | and after |  
|                        |  |      |       |   |      |   |      |      |  |   |       |      |  |      |      |   |           |  
|Minimum commitments     |  | $    | 1,076 |   |      | $ | 895  |      |  | $ | 1,368 |      |  | $    | 749  |   |           | $ | 770  |   |  | $ | 4,073  |  
|Sublease Income         |  |      | (246  | ) |      |   | (247 | )    |  |   | (241  | )    |  |      | (236 | ) |           |   | (227 | ) |  |   | (2,592 | )
|                        |  |      |       |   |      |   |      |      |  |   |       |      |  |      |      |   |           |  
|Net minimum commitments |  | $    | 830   |   |      | $ | 648  |      |  | $ | 1,127 |      |  | $    | 513  |   |           | $ | 543  |   |  | $ | 1,481  |  
|                        |  |      |       |   |      |   |      |      |  |   |       |      |  |      |      |   |           |  













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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|         |                                                     
|-------- | ----------------------------------------------------
|Note 19. | Commitments and Contingent
    Matters  (continued)







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







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









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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|         |                                                     
|-------- | ----------------------------------------------------
|Note 19. | Commitments and Contingent
    Matters  (continued)















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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|         |                                                     
|-------- | ----------------------------------------------------
|Note 19. | Commitments and Contingent
    Matters  (concluded)







10-K






|         |                     
|-------- | --------------------
|Note 20. | Stockholders Equity



|                             |                  |               |     |   |         |   |         |       |   |   |       |      |  
|---------------------------- | ---------------- | ------------- | --- | - | ------- | - | ------- | ----- | - | - | ----- | ---- | -
|                             |                  | Common Stocks |     |   |        
|                             |                  |               |     |   | Total   |  
|                             |                  | $12/3         |     |   |         |   | Capital |      
|                             |                  | Par Value     |     |   | Class H |   |         | Stock |  
|                             |                  |               |     |   |         |   |         |       |  
|Balance at January 1, 2003   |                  | $             | 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   |     
|                             | Shares issued    |               |     | 1 |         |   |         |      |   |   |       | 1    |  
|                             |                  |               |     |   |         |   |         |       |  
|Balance at December 31, 2005 |                  | $             | 943 |   |         | $ |        |       |   | $ | 943   |     
|                             |                  |               |     |   |         |   |         |       |  

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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|         |                                   
|-------- | ----------------------------------
|Note 20. | Stockholders Equity  (concluded)



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





| |             
| | ------------
| | Common Stock

2 3




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



|                                         |                              |                          |        |      |          |      |      |        |   |      |        |         |   |  |          |       |     |        |   |      |     |         |   |      |          |   |  |        |        |     |   |   |        |     |   |   |        |     |  
|---------------------------------------- | ---------------------------- | ------------------------ | ------ | ---- | -------- | ---- | ---- | ------ | - | ---- | ------ | ------- | - |  | -------- | ----- | --- | ------ | - | ---- | --- | ------- | - | ---- | -------- | - |  | ------ | ------ | --- | - | - | ------ | --- | - | - | ------ | --- | -
|                                         |                              | Years Ended December 31, |       
|                                         |                              |                          |        |      |          |      |      |        |   |      |       
|                                         |                              | 2005                     |        |      |          | 2004 |      |        |   | 2003 |       
|                                         |                              |                          |        |      |          |      |      |        |   |      |       
|                                         |                              | 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 |                              | $                        | (962   | )    |          | $    | (434 | )      |   | $    | (528   | )       |   |  | $        | 1,237 |     |        | $ | 616  |     |         | $ | 621  |          |   |  | $      | 1,642  |     |   | $ | 673    |     |   | $ | 969    |    
|Unrealized (loss) gain on securities:    |                              |                          |        |      |          |      |      |        |   |      |        |         |   |  |          |       |     |        |   |      |     |         |   |      |          |   |  |        |        |     |   |   |        |     |   |   |        |    
|                                         | Unrealized holding gain gain |                          |        | 216  |          |      |      | 76     |   |      |        | 140     |   |  |          |       | 299 |        |   |      | 114 |         |   |      | 185      |   |  |        |        | 465 |   |   |        | 166 |   |   |        | 299 |  
|                                         | Reclassification adjustment  |                          |        | (165 | )        |      |      | (60    | ) |      |        | (105    | ) |  |          |       | (80 | )      |   |      | (28 | )       |   |      | (52      | ) |  |        |        | (84 | ) |   |        | (31 | ) |   |        | (53 | )
|                                         |                              |                          |        |      |          |      |      |        |   |      |        |         |   |  |          |       |     |        |   |      |     |         |   |      |          |   |  |        |       
|Net unrealized gain                      |                              |                          | 51     |      |          |      | 16   |        |   |      | 35     |         |   |  |          | 219   |     |        |   | 86   |     |         |   | 133  |          |   |  |        | 381    |     |   |   | 135    |     |   |   | 246    |    
|Minimum pension liability adjustment     |                              |                          | (1,320 | )    |          |      | (562 | )      |   |      | (758   | )       |   |  |          | (874  | )   |        |   | (303 | )   |         |   | (571 | )        |   |  |        | 33,378 |     |   |   | 12,623 |     |   |   | 20,755 |    
|Net unrealized gain on derivatives       |                              |                          | 219    |      |          |      | 75   |        |   |      | 144    |         |   |  |          | 701   |     |        |   | 163  |     |         |   | 538  |          |   |  |        | 329    |     |   |   | 73     |     |   |   | 256    |    
|                                         |                              |                          |        |      |          |      |      |        |   |      |        |         |   |  |          |       |     |        |   |      |     |         |   |      |          |   |  |        |       
|Other comprehensive income (loss)        |                              | $                        | (2,012 | )    |          | $    | (905 | )      |   | $    | (1,107 | )       |   |  | $        | 1,283 |     |        | $ | 562  |     |         | $ | 721  |          |   |  | $      | 35,730 |     |   | $ | 13,504 |     |   | $ | 22,226 |    
|                                         |                              |                          |        |      |          |      |      |        |   |      |        |         |   |  |          |       |     |        |   |      |     |         |   |      |          |   |  |        |       



|         |                                                       
|-------- | ------------------------------------------------------
|Note 21. | Earnings (Loss) Per Share Attributable to Common Stock



II-111



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




Note 21.     Earnings (Loss)
Per Share Attributable to Common Stock 
(continued)




|                                             |                                                                          |                                         |   |         |         |   |   |       |       |  |   |       |       |  
|-------------------------------------------- | ------------------------------------------------------------------------ | --------------------------------------- | - | ------- | ------- | - | - | ----- | ----- |  | - | ----- | ----- | -
|                                             |                                                                          | Years Ended December 31,                |  
|                                             |                                                                          |                                         |  
|                                             |                                                                          | 2005                                    |   |         | 2004    |   |   | 2003  |      
|                                             |                                                                          |                                         |   |         |         |   |   |       |      
|Earnings (loss)attributable to common stocks |                                                                          |                                         |   |         |         |   |   |       |       |  |   |      
|                                             | $12/3 par value                                                          |                                         |   |         |         |   |   |       |       |  |   |       |      
|                                             |                                                                          | Continuing operations                   |   | $       | (10,458 | ) |   | $     | 2,804 |  |   | $     | 2,899 |  
|                                             |                                                                          | Discontinued operations                 |   |         |        |   |   |       |      |  |   |       | (48   | )
|                                             |                                                                          | Gain on sale of discontinued operations |   |         |        |   |   |       |      |  |   |       | 1,249 |  
|                                             |                                                                          | Cumulative effect of accounting change  |   |         | (109    | ) |   |       |      |  |   |       |      |  
|                                             |                                                                          |                                         |   |         |         |   |   |       |      
|                                             | Earnings (loss) attributable to
    $12/3 par value                      |                                         | $ | (10,567 | )       |   | $ | 2,804 |       |  | $ | 4,100 |      
|                                             | Earnings (loss) from discontinued operations attributable to
    Class H |                                         | $ |        |         |   | $ |      |       |  | $ | (241  | )    
|                                             |                                                                          |                                         |   |         |         |   |   |       |      
|                                             | Total earnings (loss) attributable to common stocks                      |                                         | $ | (10,567 | )       |   | $ | 2,804 |       |  | $ | 3,859 |      
|                                             |                                                                          |                                         |   |         |         |   |   |       |      

2 3




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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




Note 21.     Earnings (Loss)
Per Share Attributable to Common Stock 
(continued)




|                              |                                                                            |                              |   |           |        |  |  |        |  |  |   |        |  
|----------------------------- | -------------------------------------------------------------------------- | ---------------------------- | - | --------- | ------ |  |  | ------ |  |  | - | ------ | -
|                              |                                                                            | $12/3 Par Value Common Stock |  
|                              |                                                                            |                              |  
|                              |                                                                            |                              |   | Per Share |       
|                              |                                                                            | Income                       |   |           | Shares |  |  | Amount | 
|                              |                                                                            |                              |   |           |        |  |  |        | 
|Year ended December 31, 2005  |                                                                            |                              |   |           |        |  |  |        |  |  |   |       
|Basic EPS                     |                                                                            |                              |   |           |        |  |  |        |  |  |   |       
|                              | Income (loss) from continuing operations attributable to common
    stocks |                              | $ | (10,458   | )      |  |  | 565    |  |  | $ | (18.50 | )
|Effect of Dilutive Securities |                                                                            |                              |   |           |        |  |  |        |  |  |   |       
|                              | Assumed exercise of dilutive stock options                                 |                              |   |          |        |  |  |       |  |  |   |       |  
|                              |                                                                            |                              |   |           |        |  |  |        | 
|Diluted EPS                   |                                                                            |                              |   |           |        |  |  |        |  |  |   |       
|                              | Adjusted income (loss) attributable to common stocks                       |                              | $ | (10,458   | )      |  |  | 565    |  |  | $ | (18.50 | )
|                              |                                                                            |                              |   |           |        |  |  |        | 
|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   |  
|                              |                                                                            |                              |   |           |        |  |  |        | 

2 3 2 3




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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|         |                                                                          
|-------- | -------------------------------------------------------------------------
|Note 21. | Earnings (Loss) Per Share Attributable to Common
    Stocks  (concluded)

in-the




| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 1) | If the closing sale price of GMs
    $12/3 par value common stock exceeds 120% of the conversion
    price of that security (which closing prices are $70.20 for the
    Series A securities, $64.90 for the Series B
    securities, and $47.62 for the Series C securities) 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 on the
    specified repurchase dates for each security (Series A:
    March 6 of 2007, 2012, 2017, 2022, and 2027, or, if any of those
    days is not a business day, the next succeeding business day;
    Series B: March 6 of 2014, 2019, 2024, and 2029, or, if any
    of those days is not a business day, the next succeeding
    business day; Series C: July 15 of 2018, 2023 and 2028 or,
    if any of those days is not a business day, the next succeeding
    business day).

in-the




|         |                                                     
|-------- | ----------------------------------------------------
|Note 22. | Derivative Financial Instruments and Risk Management





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



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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|         |                                                                       
|-------- | ----------------------------------------------------------------------
|Note 22. | Derivative Financial Instruments and Risk
    Management  (concluded)





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





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





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





|         |                                    
|-------- | -----------------------------------
|Note 23. | Fair Value of Financial Instruments



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|         |                                                      
|-------- | -----------------------------------------------------
|Note 23. | Fair Value of Financial
    Instruments  (concluded)



|                                |                        |              |   |        |            |  |   |            |  |  |            |        |  |  |   |        | 
|------------------------------- | ---------------------- | ------------ | - | ------ | ---------- |  | - | ---------- |  |  | ---------- | ------ |  |  | - | ------ | 
|                                |                        | December 31, |  
|                                |                        |              |  
|                                |                        | 2005         |   |        | 2004       | 
|                                |                        |              |   |        |            | 
|                                |                        | Book Value   |   |        | Fair Value |  |   | Book Value |  |  | Fair Value |       
|AUTOMOTIVE AND OTHER OPERATIONS |                        |              |   |        |            |  |   |            |  |  |            |       
|ASSETS                         
|                                | Other assets(1)        |              | $ | 1,830  |            |  | $ | 1,310      |  |  | $          | 841    |  |  | $ | 520    | 
|                                | Derivative assets      |              | $ | 1,767  |            |  | $ | 1,767      |  |  | $          | 2,089  |  |  | $ | 2,089  | 
|                               
|LIABILITIES                    
|                                | Long-term debt(2)      |              | $ | 31,014 |            |  | $ | 20,837     |  |  | $          | 30,460 |  |  | $ | 31,276 | 
|                                | Other liabilities(1)   |              | $ | 535    |            |  | $ | 447        |  |  | $          | 537    |  |  | $ | 591    | 
|                                | Derivative liabilities |              | $ | 859    |            |  | $ | 859        |  |  | $          | 724    |  |  | $ | 724    | 

|                                   |                              |  |   |         |  |  |   |         |  |  |   |         |  |  |   |         | 
|---------------------------------- | ---------------------------- |  | - | ------- |  |  | - | ------- |  |  | - | ------- |  |  | - | ------- | 
|FINANCING AND INSURANCE OPERATIONS |                              |  |   |         |  |  |   |        
|ASSETS                            
|                                   | Finance receivables  net(3) |  | $ | 180,793 |  |  | $ | 181,090 |  |  | $ | 199,600 |  |  | $ | 199,827 | 
|                                   | Derivative assets            |  | $ | 3,000   |  |  | $ | 3,000   |  |  | $ | 9,489   |  |  | $ | 9,489   | 
|                                  
|LIABILITIES                       
|                                   | Debt(2)                      |  | $ | 253,217 |  |  | $ | 244,956 |  |  | $ | 267,757 |  |  | $ | 268,813 | 
|                                   | Derivative liabilities       |  | $ | 2,444   |  |  | $ | 2,444   |  |  | $ | 953     |  |  | $ | 953     | 
|                                   | Other liabilities            |  | $ | 5,930   |  |  | $ | 5,830   |  |  | $ | 4,230   |  |  | $ | 4,106   | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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 24. | Stock Incentive Plans



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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|         |                                    
|-------- | -----------------------------------
|Note 24. | Stock Incentive Plans  (continued)

2 3


2 3 2 3


2 3


2 3




|                      |  |      |      |   |      |  |   |      |  |  |      |   |  |     |      |   |      |  |      |   |  |  |      |  
|--------------------- |  | ---- | ---- | - | ---- |  | - | ---- |  |  | ---- | - |  | --- | ---- | - | ---- |  | ---- | - |  |  | ---- | -
|                      |  | 2005 |      |   | 2004 |  |   | 2003 | 
|                      |  |      |      |   |      |  |   |      | 
|                      |  | GM   |      |   | GM   |  |   | GM   |  |  | GM   |   |  | GM  |      |   | GM   | 
|                      |  | SIP  |      |   | SSOP |  |   | SIP  |  |  | SSOP |   |  | SIP |      |   | SSOP | 
|                      |  |      |      |   |      |  |   |      |  |  |      |   |  |     |      |   |      | 
|Interest rate         |  |      | 3.8  | % |      |  |  | %    |  |  | 3.1  | % |  |     | 3.1  | % |      |  | 2.9  | % |  |  | 2.9  | %
|Expected life (years) |  |      | 6.0  |   |      |  |  |      |  |  | 5.0  |   |  |     | 5.0  |   |      |  | 5.0  |   |  |  | 5.0  |  
|Expected volatility   |  |      | 32.5 | % |      |  |  | %    |  |  | 33.9 | % |  |     | 33.9 | % |      |  | 35.4 | % |  |  | 35.4 | %
|Dividend yield        |  |      | 5.5  | % |      |  |  | %    |  |  | 3.7  | % |  |     | 3.7  | % |      |  | 5.0  | % |  |  | 5.0  | %

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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|         |                                    
|-------- | -----------------------------------
|Note 24. | Stock Incentive Plans  (continued)



|                                             |                   |                        |            |            |                        |   |       |        |           |  |            |            |  |   |       |       | 
|-------------------------------------------- | ----------------- | ---------------------- | ---------- | ---------- | ---------------------- | - | ----- | ------ | --------- |  | ---------- | ---------- |  | - | ----- | ----- | 
|                                             |                   | 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, 2003   |                        |            | 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 |      
|                                             |                   |                        |            |            |                        |   |       |        |           |  |            |           
|Granted                                      |                   |                        | 8,024,090  |            |                        | $ | 36.33 |        |           |  |           |            |  | $ |      |      
|Exercised                                    |                   |                        | 337,324    |            |                        | $ | 33.14 |        |           |  |           |            |  | $ |      |      
|Terminated                                   |                   |                        | 3,011,473  |            |                        | $ | 48.20 |        |           |  | 376,991    |            |  | $ | 53.51 |      
|                                             |                   |                        |            |            |                        |   |       |        |           |  |            |           
|Options outstanding at
    December 31, 2005 |                   |                        | 84,130,586 |            |                        | $ | 53.11 |        |           |  | 27,213,635 |            |  | $ | 55.19 |      
|                                             |                   |                        |            |            |                        |   |       |        |           |  |            |           
|Options exercisable at
    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 | 
|                                             |                   |                        |            |            |                        |   |       |        |           |  |            |           
|                                             | December 31, 2005 |                        |            | 68,207,480 |                        |   | $     | 55.55  |           |  |            | 23,953,781 |  |   | $     | 55.37 | 
|                                             |                   |                        |            |            |                        |   |       |        |           |  |            |           



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|         |                                    
|-------- | -----------------------------------
|Note 24. | Stock Incentive Plans  (concluded)



|                                  |                  |             |            |            |             |  |           |          |  |   |             |           |  |          |            |            |  |   |       |       | 
|--------------------------------- | ---------------- | ----------- | ---------- | ---------- | ----------- |  | --------- | -------- |  | - | ----------- | --------- |  | -------- | ---------- | ---------- |  | - | ----- | ----- | 
|                                  |                  |             |            | Weighted-  |             |  |           |          |  |   |            
|                                  |                  |             |            | Average    |             |  | Weighted- |          |  |   |             | Weighted- | 
|                                  |                  |             |            | Remaining  |             |  | Average   |          |  |   |             | Average   | 
|Range of                          |                  | Options     |            |            | Contractual |  |           | Exercise |  |   | Options     |           |  | Exercise |           
|Exercise Prices                   |                  | Outstanding |            |            | Life (yrs.) |  |           | Price    |  |   | Exercisable |           |  | Price    |           
|                                  |                  |             |            |            |             |  |           |          |  |   |             |           |  |          |           
|GMSIP
    $12/3 Par Value Common  |                  |             |            |            |             |  |           |          |  |   |             |           |  |          |            |           
|                                  | $20.00 to $39.99 |             |            | 7,608,141  |             |  |           | 9.1      |  |   | $           | 36.34     |  |          |            | 100,334    |  |   | $     | 36.58 | 
|40.00 to 49.99                    |                  |             | 22,255,719 |            |             |  | 4.0       |          |  | $ | 42.66       |           |  |          | 18,812,269 |            |  | $ | 43.13 |      
|50.00 to 59.99                    |                  |             | 34,561,835 |            |             |  | 6.1       |          |  | $ | 51.96       |           |  |          | 29,589,986 |            |  | $ | 51.63 |      
|60.00 to 83.50                    |                  |             | 19,704,891 |            |             |  | 3.5       |          |  | $ | 73.40       |           |  |          | 19,704,891 |            |  | $ | 73.40 |      
|                                  |                  |             |            |            |             |  |           |          |  |   |             |           |  |          |           
|                                  | $20.00 to $83.50 |             |            | 84,130,586 |             |  |           | 5.2      |  |   | $           | 53.11     |  |          |            | 68,207,480 |  |   | $     | 55.55 | 
|                                  |                  |             |            |            |             |  |           |          |  |   |             |           |  |          |           
|GMSSOP
    $12/3 Par Value Common |                  |             |            |            |             |  |           |          |  |   |             |           |  |          |            |           
|                                  | $40.05           |             |            | 5,513,298  |             |  |           | 7.1      |  |   | $           | 40.05     |  |          |            | 5,513,298  |  |   | $     | 40.05 | 
|46.59                             |                  |             | 2,218,613  |            |             |  | 2.0       |          |  | $ | 46.59       |           |  |          | 2,218,613  |            |  | $ | 46.59 |      
|50.46                             |                  |             | 4,828,683  |            |             |  | 6.0       |          |  | $ | 50.46       |           |  |          | 4,828,683  |            |  | $ | 50.46 |      
|52.35                             |                  |             | 3,763,918  |            |             |  | 5.0       |          |  | $ | 52.35       |           |  |          | 3,763,918  |            |  | $ | 52.35 |      
|53.92                             |                  |             | 3,259,854  |            |             |  | 8.1       |          |  | $ | 53.92       |           |  |          |           |            |  | $ |      |      
|71.53                             |                  |             | 3,689,049  |            |             |  | 3.0       |          |  | $ | 71.53       |           |  |          | 3,689,049  |            |  | $ | 71.53 |      
|75.50                             |                  |             | 3,940,220  |            |             |  | 4.0       |          |  | $ | 75.50       |           |  |          | 3,940,220  |            |  | $ | 75.50 |      
|                                  |                  |             |            |            |             |  |           |          |  |   |             |           |  |          |           
|                                  | $40.05 to $75.50 |             |            | 27,213,635 |             |  |           | 5.3      |  |   | $           | 55.19     |  |          |            | 23,953,781 |  |   | $     | 55.37 | 
|                                  |                  |             |            |            |             |  |           |          |  |   |             |           |  |          |           

Note 25.     Other Income


|                                |                                 |                          |   |       |       |  |   |       |       |  |   |       |       | 
|------------------------------- | ------------------------------- | ------------------------ | - | ----- | ----- |  | - | ----- | ----- |  | - | ----- | ----- | 
|                                |                                 | Years Ended December 31, |  
|                                |                                 |                          |  
|                                |                                 | 2005                     |   |       | 2004  |  |   | 2003  |      
|                                |                                 |                          |   |       |       |  |   |       |      
|Automotive and Other Operations |                                 |                          |   |       |       |  |   |       |       |  |   |      
|                                | Interest income                 |                          | $ | 883   |       |  | $ | 816   |       |  | $ | 1,389 |      
|                                | Rental car lease revenue        |                          |   | 1,483 |       |  |   | 2,112 |       |  |   | 1,460 |      
|                                | Claims, commissions, and grants |                          |   | 968   |       |  |   | 1,097 |       |  |   | 916   |      
|                                | Gain on sale of GM Defense      |                          |   |      |       |  |   |      |       |  |   | 814   |      
|                                | Other                           |                          |   | 538   |       |  |   | 792   |       |  |   | 400   |      
|                                |                                 |                          |   |       |       |  |   |       |      
|                                |                                 | Total other income       |   | $     | 3,872 |  |   | $     | 4,817 |  |   | $     | 4,979 | 
|                                |                                 |                          |   |       |       |  |   |       |      

|                                   |                                  |                          |   |       |        |  |   |       |        |  |   |       |        | 
|---------------------------------- | -------------------------------- | ------------------------ | - | ----- | ------ |  | - | ----- | ------ |  | - | ----- | ------ | 
|                                   |                                  | Years Ended December 31, |  
|                                   |                                  |                          |  
|                                   |                                  | 2005                     |   |       | 2004   |  |   | 2003  |       
|                                   |                                  |                          |   |       |        |  |   |       |       
|Financing and Insurance Operations |                                  |                          |   |       |        |  |   |       |        |  |   |      
|                                   | Interest income                  |                          | $ | 1,671 |        |  | $ | 807   |        |  | $ | 684   |       
|                                   | Insurance premiums               |                          |   | 3,762 |        |  |   | 3,528 |        |  |   | 3,178 |       
|                                   | Mortgage banking revenue         |                          |   | 3,268 |        |  |   | 2,969 |        |  |   | 4,204 |       
|                                   | Automotive securitization income |                          |   | 752   |        |  |   | 753   |        |  |   | 760   |       
|                                   | Other                            |                          |   | 3,435 |        |  |   | 3,280 |        |  |   | 2,303 |       
|                                   |                                  |                          |   |       |        |  |   |       |       
|                                   |                                  | Total other income       |   | $     | 12,888 |  |   | $     | 11,337 |  |   | $     | 11,129 | 
|                                   |                                  |                          |   |       |        |  |   |       |       

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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|         |                  
|-------- | -----------------
|Note 26: | Segment Reporting



America/Africa/Mid-East




II-120



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|         |                                
|-------- | -------------------------------
|Note 26: | Segment Reporting  (continued)

|                                                |                    |                             |         |         |         |   |        |        |        |   |        |        |        |        |        |       |        |   |         |         |         |       |        |     |     |           |         |         |           |   |         |   |   |   |        |   |   |   |         |   |   | 
|----------------------------------------------- | ------------------ | --------------------------- | ------- | ------- | ------- | - | ------ | ------ | ------ | - | ------ | ------ | ------ | ------ | ------ | ----- | ------ | - | ------- | ------- | ------- | ----- | ------ | --- | --- | --------- | ------- | ------- | --------- | - | ------- | - | - | - | ------ | - | - | - | ------- | - | - | 
|                                                |                    |                             |         |         |         |   |        |        |        |   |        |        |        | Auto & |        |       |        |   | Other   |         |         | Total |       
|                                                |                    | GMNA                        |         |         | GME     |   |        | GMLAAM |        |   | GMAP   |        |        | GMA    |        |       | Other  |   |         | Other   |         |       | GMAC   |     |     | Financing |         |         | Financing |  
|                                                |                    |                             |         |         |         |   |        |        |        |   |        |        |        |        |        |       |        |   |         |         |         |       |        |     |     |           |         |         |           |  
|                                                |                    | (Dollars in millions)       |        
|2005                                            |                    |                             |         |         |         |   |        |        |        |   |        |        |        |        |        |       |        |   |         |         |         |       |        |     |     |           |         |         |           |   |         |   |   |   |        |   |   |   |         |  
|Manufactured products sales and revenues:       |                    |                             |         |         |         |   |        |        |        |   |        |        |        |        |        |       |        |   |         |         |         |       |        |     |     |           |         |         |           |   |         |   |   |   |        |   |   |   |         |  
|                                                | External customers |                             | $       | 105,452 |         |   | $      | 29,607 |        |   | $      | 10,896 |        |        | $      | 8,446 |        |   | $       | 154,401 |         |       | $      | (52 | )   |           | $       | 154,349 |           |   | $       |  |   |   | $      |  |   |   | $       |  |  
|                                                | Intersegment       |                             |         | (4,261  | )       |   |        | 1,499  |        |   |        | 715    |        |        |        | 2,050 |        |   |         | 3       |         |       |        | (3  | )   |           |         |        |           |   |         |  |   |   |        |  |   |   |         |  |  
|                                                |                    |                             |         |         |         |   |        |        |        |   |        |        |        |        |        |       |        |   |         |         |         |       |        |     |     |           |         |         |           |  
|                                                |                    | Total manufactured products |         |         | 101,191 |   |        |        | 31,106 |   |        |        | 11,611 |        |        |       | 10,496 |   |         |         | 154,404 |       |        |     | (55 | )         |         |         | 154,349   |   |         |   |  |   |        |   |  |   |         |   |  | 
|Financing revenue                               |                    |                             |        |         |         |   |       |        |        |   |       |        |        |        |       |       |        |   |        |         |         |       |       |     |     |           |        |         |           |   | 21,299  |   |   |   | 196    |   |   |   | 21,495  |  
|Other income                                    |                    |                             | 3,564   |         |         |   | 613    |        |        |   | 134    |        |        |        | 397    |       |        |   | 4,708   |         |         |       | (836   | )   |     |           | 3,872   |         |           |   | 12,738  |   |   |   | 150    |   |   |   | 12,888  |  
|                                                |                    |                             |         |         |         |   |        |        |        |   |        |        |        |        |        |       |        |   |         |         |         |       |        |     |     |           |         |         |           |  
|Total net sales and revenues                    |                    | $                           | 104,755 |         |         | $ | 31,719 |        |        | $ | 11,745 |        |        | $      | 10,893 |       |        | $ | 159,112 |         |         | $     | (891   | )   |     | $         | 158,221 |         |           | $ | 34,037  |   |   | $ | 346    |   |   | $ | 34,383  |  
|                                                |                    |                             |         |         |         |   |        |        |        |   |        |        |        |        |        |       |        |   |         |         |         |       |        |     |     |           |         |         |           |  
|Depreciation and amortization                   |                    | $                           | 7,605   |         |         | $ | 1,743  |        |        | $ | 329    |        |        | $      | 379    |       |        | $ | 10,056  |         |         | $     | 17     |     |     | $         | 10,073  |         |           | $ | 5,548   |   |   | $ | 148    |   |   | $ | 5,696   |  
|Interest income(a)                              |                    | $                           | 1,347   |         |         | $ | 406    |        |        | $ | 57     |        |        | $      | 47     |       |        | $ | 1,857   |         |         | $     | (974   | )   |     | $         | 883     |         |           | $ | 2,185   |   |   | $ | (514   | ) |   | $ | 1,671   |  
|Interest expense                                |                    | $                           | 3,166   |         |         | $ | 543    |        |        | $ | 197    |        |        | $      | 107    |       |        | $ | 4,013   |         |         | $     | (1,140 | )   |     | $         | 2,873   |         |           | $ | 12,930  |   |   | $ | (35    | ) |   | $ | 12,895  |  
|Income tax expense (benefit)                    |                    | $                           | (2,540  | )       |         | $ | (709   | )      |        | $ | 622    |        |        | $      | (165   | )     |        | $ | (2,792  | )       |         | $     | (4,392 | )   |     | $         | (7,184  | )       |           | $ | 1,311   |   |   | $ | (5     | ) |   | $ | 1,306   |  
|Earnings (losses) of nonconsolidated associates |                    | $                           | (30     | )       |         | $ | 102    |        |        | $ | 15     |        |        | $      | 534    |       |        | $ | 621     |         |         | $     | 19     |     |     | $         | 640     |         |           | $ | (6      | ) |   | $ |       |   |   | $ | (6      | )
|Net income (loss) from continuing operations    |                    | $                           | (8,156  | )       |         | $ | (1,177 | )      |        | $ | (569   | )      |        | $      | (217   | )     |        | $ | (10,119 | )       |         | $     | (2,697 | )   |     | $         | (12,816 | )       |           | $ | 2,383   |   |   | $ | (25    | ) |   | $ | 2,358   |  
|Investments in nonconsolidated affiliates       |                    | $                           | 60      |         |         | $ | 359    |        |        | $ | 155    |        |        | $      | 2,597  |       |        | $ | 3,171   |         |         | $     | 120    |     |     | $         | 3,291   |         |           | $ | 308     |   |   | $ | (308   | ) |   | $ |        |  
|Segment assets                                  |                    | $                           | 126,876 |         |         | $ | 20,954 |        |        | $ | 4,722  |        |        | $      | 10,141 |       |        | $ | 162,693 |         |         | $     | (1,040 | )   |     | $         | 161,653 |         |           | $ | 320,487 |   |   | $ | (1,610 | ) |   | $ | 318,877 |  
|Expenditures for property                       |                    | $                           | 5,555   |         |         | $ | 1,259  |        |        | $ | 229    |        |        | $      | 839    |       |        | $ | 7,882   |         |         | $     | 14     |     |     | $         | 7,896   |         |           | $ | 279     |   |   | $ | 4      |   |   | $ | 283     |  
|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     |  



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|         |                                
|-------- | -------------------------------
|Note 26: | Segment Reporting  (continued)

|                                                |                    |                             |         |         |         |   |        |        |        |   |       |       |       |        |       |       |       |   |         |         |         |       |       |     |     |           |         |         |           |   |         |   |   |   |      |   |   |   |         |   |   | 
|----------------------------------------------- | ------------------ | --------------------------- | ------- | ------- | ------- | - | ------ | ------ | ------ | - | ----- | ----- | ----- | ------ | ----- | ----- | ----- | - | ------- | ------- | ------- | ----- | ----- | --- | --- | --------- | ------- | ------- | --------- | - | ------- | - | - | - | ---- | - | - | - | ------- | - | - | 
|                                                |                    |                             |         |         |         |   |        |        |        |   |       |       |       | Auto & |       |       |       |   | Other   |         |         | Total |      
|                                                |                    | GMNA                        |         |         | GME     |   |        | GMLAAM |        |   | GMAP  |       |       | GMA    |       |       | Other |   |         | Other   |         |       | GMAC  |     |     | Financing |         |         | Financing |  
|                                                |                    |                             |         |         |         |   |        |        |        |   |       |       |       |        |       |       |       |   |         |         |         |       |       |     |     |           |         |         |           |  
|                                                |                    | (Dollars in millions)       |        
|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     |  






|    |                                                                                   
|--- | ----------------------------------------------------------------------------------
|(a) | Interest income is included in net sales and revenues from
    external customers.



II-122



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|         |                                
|-------- | -------------------------------
|Note 26: | Segment Reporting  (concluded)



|              |                     |                     |       |         |           |  |       |          |        |  |           |         |         |          |       |        |           |  |       |         |         |  |       |        |        | 
|------------- | ------------------- | ------------------- | ----- | ------- | --------- |  | ----- | -------- | ------ |  | --------- | ------- | ------- | -------- | ----- | ------ | --------- |  | ----- | ------- | ------- |  | ----- | ------ | ------ | 
|              |                     | 2005                |       |         | 2004      |  |       | 2003     |       
|              |                     |                     |       |         |           |  |       |          |       
|              |                     | 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       |                     | $     | 127,316 |           |  | $     | 49,540   |        |  | $         | 134,380 |         |          | $     | 46,712 |           |  | $     | 133,955 |         |  | $     | 47,354 |       
|              | Canada and Mexico   |                     |       | 16,769  |           |  |       | 12,739   |        |  |           | 15,484  |         |          |       | 10,443 |           |  |       | 14,667  |         |  |       | 8,530  |       
|              |                     |                     |       |         |           |  |       |          |        |  |           |         |         |          |       |        |           | 
|              |                     | Total North America |       |         | 144,085   |  |       |          | 62,279 |  |           |         | 149,864 |          |       |        | 57,155    |  |       |         | 148,622 |  |       |        | 55,884 | 
|Europe        |                     |                     |       |         |           |  |       |          |        |  |           |         |         |          |       |        |           |  |       |         |         |  |       |       
|              | France              |                     |       | 2,612   |           |  |       | 333      |        |  |           | 2,669   |         |          |       | 262    |           |  |       | 2,429   |         |  |       | 216    |       
|              | Germany             |                     |       | 7,384   |           |  |       | 4,090    |        |  |           | 6,710   |         |          |       | 4,479  |           |  |       | 5,945   |         |  |       | 3,996  |       
|              | Spain               |                     |       | 2,847   |           |  |       | 1,182    |        |  |           | 2,661   |         |          |       | 1,181  |           |  |       | 2,143   |         |  |       | 1,256  |       
|              | United Kingdom      |                     |       | 7,859   |           |  |       | 1,958    |        |  |           | 7,563   |         |          |       | 2,273  |           |  |       | 6,480   |         |  |       | 2,244  |       
|              | Other               |                     |       | 12,944  |           |  |       | 3,798    |        |  |           | 13,622  |         |          |       | 3,805  |           |  |       | 12,356  |         |  |       | 3,537  |       
|              |                     |                     |       |         |           |  |       |          |        |  |           |         |         |          |       |        |           | 
|              |                     | Total Europe        |       |         | 33,646    |  |       |          | 11,361 |  |           |         | 33,225  |          |       |        | 12,000    |  |       |         | 29,353  |  |       |        | 11,249 | 
|Latin America |                     |                     |       |         |           |  |       |          |        |  |           |         |         |          |       |        |           |  |       |         |         |  |       |       
|              | Brazil              |                     |       | 3,813   |           |  |       | 784      |        |  |           | 2,987   |         |          |       | 609    |           |  |       | 2,328   |         |  |       | 584    |       
|              | Other Latin America |                     |       | 3,729   |           |  |       | 158      |        |  |           | 2,611   |         |          |       | 180    |           |  |       | 1,685   |         |  |       | 186    |       
|              |                     |                     |       |         |           |  |       |          |        |  |           |         |         |          |       |        |           | 
|              |                     | Total Latin America |       |         | 7,542     |  |       |          | 942    |  |           |         | 5,598   |          |       |        | 789       |  |       |         | 4,013   |  |       |        | 770    | 
|All Other     |                     |                     | 7,331 |         |           |  | 3,819 |          |        |  | 4,830     |         |         |          | 3,290 |        |           |  | 3,849 |         |         |  | 2,820 |       
|              |                     |                     |       |         |           |  |       |          |        |  |           |         |         |          |       |        |           | 
|              |                     | Total               |       | $       | 192,604   |  |       | $        | 78,401 |  |           | $       | 193,517 |          |       | $      | 73,234    |  |       | $       | 185,837 |  |       | $      | 70,723 | 
|              |                     |                     |       |         |           |  |       |          |        |  |           |         |         |          |       |        |           | 






|    |                                                                                                              
|--- | -------------------------------------------------------------------------------------------------------------
|(1) | Consists of property (Note 13), equipment on operating
    leases (Note 11), net of accumulated depreciation.



|         |                  
|-------- | -----------------
|Note 27. | Subsequent Events







UAW-represented UAW-represented


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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|         |                                
|-------- | -------------------------------
|Note 27. | Subsequent Events  (concluded)

post-retirement




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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


SUPPLEMENTARY INFORMATION


Selected Quarterly Data (Unaudited)


|                                                                                                     |                                                 |                                                |        |        |          |   |               |          |   |   |          |               |   |          |        |        |               |   |        |           |   |   |         |        |   |   |        |        |   |   |         |        |  
|---------------------------------------------------------------------------------------------------- | ----------------------------------------------- | ---------------------------------------------- | ------ | ------ | -------- | - | ------------- | -------- | - | - | -------- | ------------- | - | -------- | ------ | ------ | ------------- | - | ------ | --------- | - | - | ------- | ------ | - | - | ------ | ------ | - | - | ------- | ------ | -
|                                                                                                     |                                                 | 2005 Quarters(1)                               |       
|                                                                                                     |                                                 |                                                |       
|                                                                                                     |                                                 | 1st(3)                                         |        |        | 2nd(4)   |   |               | 3rd(5)   |   |   | 4th(6)   |              
|                                                                                                     |                                                 |                                                |        |        |          |   |               |          |   |   |          |              
|                                                                                                     |                                                 | As Previously                                  |        |        |          |   | As Previously |          |   |   |          | As Previously |   |          |        |        | As Previously |   |        |          
|                                                                                                     |                                                 | Reported                                       |        |        | Restated |   |               | Reported |   |   | Restated |               |   | Reported |        |        | Restated      |   |        | Announced |   |   | Revised |       
|                                                                                                     |                                                 |                                                |        |        |          |   |               |          |   |   |          |               |   |          |        |        |               |   |        |           |   |   |         |       
|                                                                                                     |                                                 | (Dollars in millions except per share amounts) |       
|Total net sales and revenues                                                                         |                                                 | $                                              | 45,773 |        |          | $ | 45,773        |          |   | $ | 48,469   |               |   | $        | 48,469 |        |               | $ | 47,182 |           |   | $ | 47,182  |        |   | $ | 51,180 |        |   | $ | 51,180  |       
|Income (losses) from continuing operations before income taxes
    and minority interests            |                                                 | $                                              | (2,108 | )      |          | $ | (2,294        | )        |   | $ | (1,577   | )             |   | $        | (1,405 | )      |               | $ | (2,722 | )         |   | $ | (2,871  | )      |   | $ | (7,293 | )      |   | $ | (10,361 | )     
|Income tax expense (benefit)                                                                         |                                                 |                                                | (935   | )      |          |   | (972          | )        |   |   | (330     | )             |   |          | (245   | )      |               |   | (989   | )         |   |   | (1,107  | )      |   |   | (2,372 | )      |   |   | (3,554  | )     
|Minority interests                                                                                   |                                                 |                                                | (16    | )      |          |   | (16           | )        |   |   | (18      | )             |   |          | (18    | )      |               |   | (37    | )         |   |   | (37     | )      |   |   | 32     |        |   |   | 32      |       
|Earnings of nonconsolidated associates                                                               |                                                 |                                                | 85     |        |          |   | 85            |          |   |   | 191      |               |   |          | 191    |        |               |   | 137    |           |   |   | 137     |        |   |   | 221    |        |   |   | 221     |       
|Cumulative effect of accounting change                                                               |                                                 |                                                |       |        |          |   |              |          |   |   |         |               |   |          |       |        |               |   |       |           |   |   |        |        |   |   | (109   | )      |   |   | (109    | )     
|                                                                                                     |                                                 |                                                |        |        |          |   |               |          |   |   |          |               |   |          |        |        |               |   |        |           |   |   |         |       
|                                                                                                     | Net income                                      |                                                | $      | (1,104 | )        |   | $             | (1,253   | ) |   | $        | (1,074        | ) |          | $      | (987   | )             |   | $      | (1,633    | ) |   | $       | (1,664 | ) |   | $      | (4,777 | ) |   | $       | (6,663 | )
|                                                                                                     |                                                 |                                                |        |        |          |   |               |          |   |   |          |               |   |          |        |        |               |   |        |           |   |   |         |       
|Basic earnings (losses) per share attributable to
    $12/3 par value                                |                                                 | $                                              | (1.95  | )      |          | $ | (2.22         | )        |   | $ | (1.90    | )             |   | $        | (1.75  | )      |               | $ | (2.89  | )         |   | $ | (2.94   | )      |   | $ | (8.45  | )      |   | $ | (11.78  | )     
|                                                                                                     |                                                 |                                                |        |        |          |   |               |          |   |   |          |               |   |          |        |        |               |   |        |           |   |   |         |       
|Average number of shares of common stock outstanding 
    basic (in millions)
    $12/3 par value   |                                                 |                                                | 565    |        |          |   | 565           |          |   |   | 565      |               |   |          | 565    |        |               |   | 566    |           |   |   | 566     |        |   |   | 566    |        |   |   | 566     |       
|Earnings (loss) per share attributable to common stock assuming
    dilution
    $12/3 par value     |                                                 | $                                              | (1.95  | )      |          | $ | (2.22         | )        |   | $ | (1.90    | )             |   | $        | (1.75  | )      |               | $ | (2.89  | )         |   | $ | (2.94   | )      |   | $ | (8.45  | )      |   | $ | (11.78  | )     
|                                                                                                     |                                                 |                                                |        |        |          |   |               |          |   |   |          |               |   |          |        |        |               |   |        |           |   |   |         |       
|Average number of shares of common stock outstanding 
    diluted (in millions)
    $12/3 par value |                                                 |                                                | 565    |        |          |   | 565           |          |   |   | 565      |               |   |          | 565    |        |               |   | 566    |           |   |   | 566     |        |   |   | 566    |        |   |   | 566     |       
|Net income by reportable operating segment/ region Automotive
    and Other Operations               |                                                 |                                                |        |        |          |   |               |          |   |   |          |               |   |          |        |        |               |   |        |           |   |   |         |        |   |   |        |        |   |   |         |       
|                                                                                                     | GMNA                                            |                                                | $      | (1,560 | )        |   | $             | (1,704   | ) |   | $        | (1,194        | ) |          | $      | (1,121 | )             |   | $      | (2,095    | ) |   | $       | (2,165 | ) |   | $      | (2,832 | ) |   | $       | (3,249 | )
|                                                                                                     | GME                                             |                                                |        | (525   | )        |   |               | (547     | ) |   |          | (89           | ) |          |        | (112   | )             |   |        | (382      | ) |   |         | (363   | ) |   |        | (220   | ) |   |         | (176   | )
|                                                                                                     | GMLAAM                                          |                                                |        | 46     |          |   |               | 31       |   |   |          | 33            |   |          |        | 25     |               |   |        | (74       | ) |   |         | (68    | ) |   |        | (599   | ) |   |         | (559   | )
|                                                                                                     | GMAP                                            |                                                |        | 60     |          |   |               | 70       |   |   |          | (612          | ) |          |        | (605   | )             |   |        | 114       |   |   |         | 126    |   |   |        | 159    |   |   |         | 189    |  
|                                                                                                     | Other Operations                                |                                                |        | 146    |          |   |               | 168      |   |   |          | (20           | ) |          |        | 18     |               |   |        | 122       |   |   |         | 145    |   |   |        | (1,874 | ) |   |         | (3,028 | )
|                                                                                                     |                                                 |                                                |        |        |          |   |               |          |   |   |          |               |   |          |        |        |               |   |        |           |   |   |         |       
|Net income (loss)  Automotive and
    Other Operations                                              |                                                 |                                                | (1,833 | )      |          |   | (1,982        | )        |   |   | (1,882   | )             |   |          | (1,795 | )      |               |   | (2,315 | )         |   |   | (2,325  | )      |   |   | (5,366 | )      |   |   | (6,823  | )     
|Financing and Insurance Operations                                                                   |                                                 |                                                |        |        |          |   |               |          |   |   |          |               |   |          |        |        |               |   |        |           |   |   |         |        |   |   |        |        |   |   |         |       
|                                                                                                     | Net income  Financing and Insurance Operations |                                                |        | 729    |          |   |               | 729      |   |   |          | 808           |   |          |        | 808    |               |   |        | 682       |   |   |         | 661    |   |   |        | 589    |   |   |         | 160    |  
|                                                                                                     |                                                 |                                                |        |        |          |   |               |          |   |   |          |               |   |          |        |        |               |   |        |           |   |   |         |       
|Net income                                                                                           |                                                 | $                                              | (1,104 | )      |          | $ | (1,253        | )        |   | $ | (1,074   | )             |   | $        | (987   | )      |               | $ | (1,633 | )         |   | $ | (1,664  | )      |   | $ | (4,777 | )      |   | $ | (6,663  | )     
|                                                                                                     |                                                 |                                                |        |        |          |   |               |          |   |   |          |               |   |          |        |        |               |   |        |           |   |   |         |       

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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


SUPPLEMENTARY INFORMATION




Selected Quarterly Data
(Unaudited)  (continued)


|                                                               |  |                       |        |   |                |   |               |                    |  |   |          |               |  |          |        |   |          |   |        |   |  |   |        |  
|-------------------------------------------------------------- |  | --------------------- | ------ | - | -------------- | - | ------------- | ------------------ |  | - | -------- | ------------- |  | -------- | ------ | - | -------- | - | ------ | - |  | - | ------ | -
|                                                               |  | 2005 Year-to-Date(2)  |       
|                                                               |  |                       |       
|                                                               |  | 3 Months Ended        |        |   | 6 Months Ended |   |               | 9 Months Ended     | 
|                                                               |  | March 31, 2005        |        |   | June 30, 2005  |   |               | September 30, 2005 | 
|                                                               |  |                       |        |   |                |   |               |                    | 
|                                                               |  | 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 |  | $                     | (4,137 | ) |                |   | (6,148        | )                  |  | $ | 2,489    |               |  |          | (1,781 | ) |          | $ | 3,676  |   |  |   | (7,256 | )
|Net cash provided by (used in) continuing investing activities |  |                       | (2,016 | ) |                |   | (5            | )                  |  |   | 1,257    |               |  |          | 5,527  |   |          |   | (179   | ) |  |   | 10,753 |  
|Net cash provided by (used in) continuing financing activities |  | $                     | (3,007 | ) |                |   | (3,007        | )                  |  |   | (7,066   | )             |  |          | (7,066 | ) |          |   | (3,772 | ) |  |   | (3,772 | )
|Effect of exchange rate changes on cash and cash equivalents   |  |                       | (444   | ) |                |   | (444          | )                  |  |   | (412     | )             |  |          | (412   | ) |          |   | (120   | ) |  |   | (120   | )
|                                                               |  |                       |        |   |                |   |               |                    |  |   |          |               |  |          |        |   |          |  
|Net increase (decrease) in cash and cash equivalents           |  | $                     | (9,604 | ) |                | $ | (9,604        | )                  |  | $ | (3,732   | )             |  | $        | (3,732 | ) |          | $ | (395   | ) |  | $ | (395   | )
|Automotive and Other Operations                                |  |                       |        |   |                |   |               |                    |  |   |          |               |  |          |        |   |          |   |        |   |  |   |        |  
|Net cash provided by (used in) continuing operating activities |  | $                     | (2,555 | ) |                | $ | (2,555        | )                  |  | $ | (2,138   | )             |  | $        | (2,138 | ) |          | $ | (2,482 | ) |  | $ | (1,715 | )
|Net cash provided by (used in) continuing investing activities |  |                       | 154    |   |                |   | 154           |                    |  |   | 1,817    |               |  |          | 1,817  |   |          |   | 2,871  |   |  |   | 2,871  |  
|Net cash provided by (used in) continuing financing activities |  |                       | (47    | ) |                |   | (47           | )                  |  |   | (519     | )             |  |          | (519   | ) |          |   | (779   | ) |  |   | (779   | )
|Effect of exchange rate changes on cash and cash equivalents   |  |                       | (369   | ) |                |   | (369          | )                  |  |   | (283     | )             |  |          | (283   | ) |          |   | (36    | ) |  |   | (36    | )
|Net transactions with Financing and Insurance                  |  |                       | (126   | ) |                |   | (126          | )                  |  |   | 420      |               |  |          | 420    |   |          |   | 973    |   |  |   | 206    |  
|                                                               |  |                       |        |   |                |   |               |                    |  |   |          |               |  |          |        |   |          |  
|Net increase (decrease) in cash and cash equivalents           |  | $                     | (2,943 | ) |                | $ | (2,943        | )                  |  | $ | (703     | )             |  | $        | (703   | ) |          | $ | 547    |   |  | $ | 547    |  
|Financing and Insurance Operations                             |  |                       |        |   |                |   |               |                    |  |   |          |               |  |          |        |   |          |   |        |   |  |   |        |  
|Net cash provided by (used in) continuing operating activities |  | $                     | (1,582 | ) |                |   | (3,593        | )                  |  | $ | 4,627    |               |  |          | 357    |   |          | $ | 6,158  |   |  |   | (5,541 | )
|Net cash provided by (used in) continuing investing activities |  |                       | (1,670 | ) |                |   | 341           |                    |  |   | 440      |               |  |          | 4,710  |   |          |   | (1,550 | ) |  |   | 9,382  |  
|Net cash provided by (used in) continuing financing activities |  |                       | (3,460 | ) |                |   | (3,460        | )                  |  |   | (7,547   | )             |  |          | (7,547 | ) |          |   | (4,493 | ) |  |   | (4,493 | )
|Effect of exchange rate changes on cash and cash equivalents   |  |                       | (75    | ) |                |   | (75           | )                  |  |   | (129     | )             |  |          | (129   | ) |          |   | (84    | ) |  |   | (84    | )
|Net transactions with Automotive and Other                     |  |                       | 126    |   |                |   | 126           |                    |  |   | (420     | )             |  |          | (420   | ) |          |   | (973   | ) |  |   | (206   | )
|                                                               |  |                       |        |   |                |   |               |                    |  |   |          |               |  |          |        |   |          |  
|Net increase (decrease) in cash and cash equivalents           |  | $                     | (6,661 | ) |                | $ | (6,661        | )                  |  | $ | (3,029   | )             |  | $        | (3,029 | ) |          | $ | (942   | ) |  | $ | (942   | )

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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


SUPPLEMENTARY INFORMATION




Selected Quarterly Data
(Unaudited)  (continued)


(1) Restatement of quarterly results


Previously announced restatements


8-K 10-K/A


|                                                       |                                       |                     |        |                       |          |   |        |     |   |   |        |     |   |      |        |     |   |   |         |        |   | 
|------------------------------------------------------ | ------------------------------------- | ------------------- | ------ | --------------------- | -------- | - | ------ | --- | - | - | ------ | --- | - | ---- | ------ | --- | - | - | ------- | ------ | - | 
|                                                       |                                       | 2005 Quarters       |        |                       | 2005     |  
|                                                       |                                       |                     |        |                       | Calendar |  
|                                                       |                                       | 1st                 |        |                       | 2nd      |   |        | 3rd |   |   | 4th    |     |   | Year |       
|                                                       |                                       |                     |        |                       |          |   |        |     |   |   |        |     |   |      |       
|                                                       |                                       |                     |        | (Dollars in millions) |          |   |       
|Net (loss)                                             |                                       |                     |        |                       |          |   |        |     |   |   |        |     |   |      |        |     |   |   |         |       
|As originally reported/announced:(a) Quarterly results |                                       | $                   | (1,104 | )                     |          | $ | (1,074 | )   |   | $ | (1,633 | )   |   | $    | (4,777 | )   |   |   |         |       
|                                                       | Calendar year results                 |                     |        |                       |          |   |        |     |   |   |        |     |   |      |        |     |   |   | $       | (8,554 | )
|Adjustments, net of tax, for:                          |                                       |                     |        |                       |          |   |        |     |   |   |        |     |   |      |        |     |   |   |         |       
|                                                       | Supplier credits: quarterly basis(b)  |                     |        | 4                     |          |   |        | 11  |   |   |        | 11  |   |      |        | 10  |   |   |         |        |  
|                                                       |                                       | annual
    basis(b) |        |                       |          |   |        |     |   |   |        |     |   |      |        |     |   |   |         |        | 2 | 
|                                                       | Disposal loss adjustment(c)           |                     |        | (107                  | )        |   |        | 49  |   |   |        | 17  |   |      |        | 31  |   |   |         | (10    | )
|                                                       | Benefit plans economic assumptions(d) |                     |        | (16                   | )        |   |        | (16 | ) |   |        | (16 | ) |      |        | (16 | ) |   |         | (64    | )
|Other, net-of-tax(e)                                   |                                       |                     | (30    | )                     |          |   | 43     |     |   |   | (43    | )   |   |      | 137    |     |   |   | 107     |       
|                                                       |                                       |                     |        |                       |          |   |        |     |   |   |        |     |   |      |       
|Total of above adjustments                             |                                       |                     | (149   | )                     |          |   | 87     |     |   |   | (31    | )   |   |      | 162    |     |   |   | 35      |       
|Delphi contingent exposures(f)                         |                                       |                     |       |                       |          |   |       |     |   |   |       |     |   |      | (1,248 | )   |   |   | (1,248  | )     
|GMNA restructuring(g)                                  |                                       |                     |       |                       |          |   |       |     |   |   |       |     |   |      | (361   | )   |   |   | (361    | )     
|Goodwill impairment(h)                                 |                                       |                     |       |                       |          |   |       |     |   |   |       |     |   |      | (439   | )   |   |   | (439    | )     
|                                                       |                                       |                     |        |                       |          |   |        |     |   |   |        |     |   |      |       
|As restated                                            |                                       | $                   | (1,253 | )                     |          | $ | (987   | )   |   | $ | (1,664 | )   |   | $    | (6,663 | )   |   | $ | (10,567 | )     
|                                                       |                                       |                     |        |                       |          |   |        |     |   |   |        |     |   |      |       






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Quarterly results previously reported for the first three
    quarters of 2005 do not include adjustments for the estimated
    effect of supplier credits, discussed below, that are included
    in announced fourth quarter and calendar year 2005 results.
    Accordingly, the sum of the above quarterly results does not
    equal the announced calendar year results.                                                                                                                                                                                                                                                                                                                                                                                          
|   
|(b) | GM erroneously recorded as a reduction to cost of sales certain
    payments and credits received from suppliers prior to completion
    of the earnings process. GM 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
    quarterly basis adjustments above reflect the
    totals, net of tax, to correct the original accounting for such
    credits for each quarter of 2005. Calendar year results for
    2005, as previously announced, included an estimate of such
    effects; accordingly, only the final adjustment to this estimate
    is shown above on an annual basis.
|   
|(c) | GMs portfolio of vehicles on operating lease with daily
    rental car entities, which was impaired at lease inception, was
    prematurely revalued in 2005 to reflect increased anticipated
    proceeds upon disposal.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              

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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


SUPPLEMENTARY INFORMATION




Selected Quarterly Data
(Unaudited)  (continued)




|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(d) | GM originally estimated its discount rate for the
    U.S. Hourly pension plan referencing certain indicators
    which, in view of evolving guidance, did not provide the best
    estimate to defease the pension liability. The above adjustments
    represent the amounts, net of tax, to correct the original
    accounting estimates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   
|(e) | For quarters 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 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
    $(30) million, $43 million, $(43) million, and
    $137 million for each quarter of 2005, respectively. The
    significant
    out-of-period
    adjustments were related to the following matters:
    (1) Engineering and facility-related expenses recorded in
    improper periods. (2) Over-depreciation of certain fixed
    assets. (3) Reconciliation of prior year tax provisions to
    actual tax returns. Of the $(43) million adjustment in the
    third quarter, $96 million relates to engineering and
    facility-related expenses, and $(113) relates to
    over-depreciation of certain fixed assets. Of the
    $137 million adjustment in the fourth quarter,
    $118 million relates to tax matters.

Adjustments to Preliminary Results reported on
Form 8-K dated
January 26, 2006


8-K




|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(f) | Delphi Contingent Exposures  Range of contingent
    exposures reported in preliminary results refined to reflect
    further developments. GM believes that the range of the
    contingent exposures is between $5.5 billion and
    $12 billion, with amounts near the low end of the range
    considered more possible than amounts near the high end of the
    range assuming an agreement is reached among GM, Delphi, and
    Delphis unions.
|   
|(g) | GMNA Restructuring  Restructuring charges as reported
    in preliminary results were revised to include GMs best
    estimate of costs to be incurred after the expiration of the
    current labor agreement in September 2007.                                                                                                                                                                                                                     
|   
|(h) | Goodwill Impairment  Recognition of goodwill
    impairment charges relating to GMACs Commercial Finance
    operating segment. The impairment charges pertain primarily to
    the goodwill recognized in connection with the
    1999 acquisition of The Bank of New Yorks commercial
    finance business.                                                                                                                                        

(2) Restatement of interim statements of cash flows




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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


SUPPLEMENTARY INFORMATION


Selected Quarterly Data
(Unaudited)  (continued)




|                                                    |                                                                              |                       |        |        |                |   |       |                    |   |   |        |         |  
|--------------------------------------------------- | ---------------------------------------------------------------------------- | --------------------- | ------ | ------ | -------------- | - | ----- | ------------------ | - | - | ------ | ------- | -
|                                                    |                                                                              | 2005 Year-To-Date     |       
|                                                    |                                                                              |                       |       
|                                                    |                                                                              | 3 Months Ended        |        |        | 6 Months Ended |   |       | 9 Months Ended     |  
|                                                    |                                                                              | March 31, 2005        |        |        | June 30, 2005  |   |       | September 30, 2005 |  
|                                                    |                                                                              |                       |        |        |                |   |       |                    |  
|                                                    |                                                                              | (Dollars in millions) |       
|Financing and Insurance Operations                  |                                                                              |                       |        |        |                |   |       |                    |   |   |        |        
|Net cash provided by (used in) operating activities |                                                                              |                       |        |        |                |   |       |                    |   |   |        |        
|As originally reported                              |                                                                              | $                     | (1,582 | )      |                | $ | 4,627 |                    |   | $ | 6,158  |        
|Adjustments for:                                    |                                                                              |                       |        |        |                |   |       |                    |   |   |        |        
|                                                    | Restatement  Mortgage related activity                                      |                       |        | (2,011 | )              |   |       | (4,270             | ) |   |        | (10,932 | )
|                                                    | Reclassification  Net transactions with
    Automotive/Financing Operations |                       |        |       |                |   |       |                   |   |   |        | (767    | )
|                                                    |                                                                              |                       |        |        |                |   |       |                    |  
|As restated                                         |                                                                              | $                     | (3,593 | )      |                | $ | 357   |                    |   | $ | (5,541 | )      
|                                                    |                                                                              |                       |        |        |                |   |       |                    |  
|Net cash provided by (used in) investing activities |                                                                              |                       |        |        |                |   |       |                    |   |   |        |        
|As originally reported                              |                                                                              | $                     | (1,670 | )      |                | $ | 440   |                    |   | $ | (1,550 | )      
|Adjustments for:                                    |                                                                              |                       |        |        |                |   |       |                    |   |   |        |        
|                                                    | Restatement  Mortgage related activity                                      |                       |        | 2,011  |                |   |       | 4,270              |   |   |        | 10,932  |  
|                                                    |                                                                              |                       |        |        |                |   |       |                    |  
|As restated                                         |                                                                              | $                     | 341    |        |                | $ | 4,710 |                    |   | $ | 9,382  |        
|                                                    |                                                                              |                       |        |        |                |   |       |                    |  

(3) First quarter 2005 results include the following
after-tax items:




| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | A charge of $148 million for a salaried attrition program
    relating to voluntary early retirement and other separation
    programs in the U.S.                                                                                                                                                                                                                                                                                                                                                                
|
| |  | A charge of $84 million for plant and facility impairments
    relating to the write-down to fair market value of various plant
    assets in connection with action to discontinue production at
    the Lansing assembly plant.                                                                                                                                                                                                                                                                                 
|
| |  | A charge of $422 million for the GME restructuring plan,
    announced in the fourth quarter of 2004, targeting a reduction
    in annual structural costs of an estimated $600 million by
    2006. A total reduction of 12,000 employees, including 10,000 in
    Germany, from 2005-2007 through separation programs, early
    retirements, and selected outsourcing initiatives is expected.
    The charge in the first quarter of 2005 covers approximately
    5,650 people, of whom 4,900 are in Germany.

(4) Second quarter 2005 results include the following
after-tax items:




| |   |                                                                                                                                                                                                                                                                                                                                                                           
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | A charge of $788 million related to the write-down to fair
    market value, as of June 30, 2005, of GMs investment
    in approximately 20% of the common stock of Fuji Heavy
    Industries (FHI).                                                                                                                                                                     
|
| |  | An additional charge of $126 million, related to the GME
    restructuring plan noted above and costs related to dissolving
    GMs powertrain and purchasing joint ventures with Fiat.
    The charge covers approximately 600 additional separations, as
    well as charges related to previous separations that are
    required to be amortized over future periods.

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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


SUPPLEMENTARY INFORMATION




Selected Quarterly Data
(Unaudited)  (continued)


(5) Third quarter 2005 results include the following
after-tax items:




| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | A charge of $788 million ($468 million at GMNA,
    $176 million at GME, $99 million at GMLAAM, and
    $45 million at GMAP) for plant and facility impairments
    reflecting the results of third quarter reviews of the carrying
    value of long-lived assets held and used, other than goodwill
    and intangible assets with indefinite lives. The impairments
    consist of $672 million, after tax, related to
    product-specific assets that were written down and
    $116 million, after tax, related to office and production
    facilities, which were still in service at year-end 2005. There
    were no employee idling or separation costs and no lease
    contracts were terminated.
|
| |  | An additional charge, related to the GME restructuring plan
    noted above, of $56 million for approximately 500
    additional separations, as well as charges related to previous
    separations that are required to be amortized over future
    periods.                                                                                                                                                                                                                                                                                                                                                                                                                                               

(6) Fourth quarter 2005 results include the following
after-tax items:




| |   |                                                                                                                                                                                                                                                                                                                                                                                                                   
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | A charge of $1.7 billion in connection with the North
    American manufacturing capacity actions announced in November
    2005. This charge includes $1.2 billion associated with the
    hourly employees at the facilities GM is idling and
    $455 million for the non-cash write-down of property,
    plants and equipment.                                                                               
|
| |  | A charge of pre-tax $5.5 billion, $3.6 billion after
    tax, for GMs contingent exposures relating to
    Delphis Chapter 11 filing, including under the
    benefit guarantees for certain former GM U.S. hourly
    employees who transferred to Delphi. GM believes that the range
    of the contingent exposures is between $5.5 billion and
    $12 billion.                                             
|
| |  | A gain of $71 million, related to the sale of GMs
    investment in the common stock of FHI, due to the appreciation
    of the fair value of such stock after June 30, 2005, the
    date of the FHI impairment charge. Also in the fourth quarter,
    GME recorded cancellation charges of $20 million (after
    tax) related to FHI, resulting in a net adjustment of
    $51 million in the fourth quarter.
|
| |  | Restructuring charges totaling $114 million, as follows: An
    additional after-tax charge, related to the GME restructuring
    plan noted above, of $69 million for approximately 800
    additional separations, as well as charges related to previous
    separations that are required to be amortized over future
    periods; $38 million at GMAP; and $7 million at Other.                              
|
| |  | A charge of $109 million related to the adoption of
    FIN 47, Accounting for Conditional Asset Retirement
    Obligations, as of December 31, 2005, which was
    recorded as the cumulative effect of a change in accounting
    principle.                                                                                                                                                                  
|
| |  | A benefit of $49 million related to the effect of changes
    in Polish tax law at a GM Powertrain joint venture. Amount is
    included in equity income.                                                                                                                                                                                                                                                        
|
| |  | The recognition of a valuation allowance of $617 million
    against deferred tax assets at GM do Brasil.                                                                                                                                                                                                                                                                                                         

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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


SUPPLEMENTARY INFORMATION




Selected Quarterly Data
(Unaudited)  (continued)


|                                                                                                     |                  |                                                |        |       |     |   |        |       |   |   |         |      |   |   |        |        |  
|---------------------------------------------------------------------------------------------------- | ---------------- | ---------------------------------------------- | ------ | ----- | --- | - | ------ | ----- | - | - | ------- | ---- | - | - | ------ | ------ | -
|                                                                                                     |                  | 2004 Quarters                                  |       
|                                                                                                     |                  |                                                |       
|                                                                                                     |                  | 1st                                            |        |       | 2nd |   |        | 3rd   |   |   | 4th (1) |     
|                                                                                                     |                  |                                                |        |       |     |   |        |       |   |   |         |     
|                                                                                                     |                  | (Dollars in millions except per share amounts) |       
|Total net sales and revenues                                                                         |                  | $                                              | 47,862 |       |     | $ | 49,293 |       |   | $ | 44,934  |      |   | $ | 51,428 |       
|Income (losses) from continuing operations before income taxes
    and minority interests            |                  | $                                              | 1,216  |       |     | $ | 1,449  |       |   | $ | 94      |      |   | $ | (1,573 | )     
|Income tax expense (benefit)                                                                         |                  |                                                | 243    |       |     |   | 223    |       |   |   | (39     | )    |   |   | (1,343 | )     
|Minority interests                                                                                   |                  |                                                | (23    | )     |     |   | (23    | )     |   |   | (12     | )    |   |   | (23    | )     
|Earnings of nonconsolidated associates                                                               |                  |                                                | 275    |       |     |   | 236    |       |   |   | 162     |      |   |   | 110    |       
|                                                                                                     |                  |                                                |        |       |     |   |        |       |   |   |         |     
|                                                                                                     | Net income       |                                                | $      | 1,225 |     |   | $      | 1,439 |   |   | $       | 283  |   |   | $      | (143   | )
|                                                                                                     |                  |                                                |        |       |     |   |        |       |   |   |         |     
|Basic earnings (losses) per share attributable to
    $12/3 par value                                |                  | $                                              | 2.17   |       |     | $ | 2.55   |       |   | $ | 0.50    |      |   | $ | (0.25  | )     
|                                                                                                     |                  |                                                |        |       |     |   |        |       |   |   |         |     
|Average number of shares of common stock outstanding 
    basic (in millions)
    $12/3 par value   |                  |                                                | 564    |       |     |   | 565    |       |   |   | 565     |      |   |   | 565    |       
|Earnings (loss) per share attributable to common stock assuming
    dilution
    $12/3 par value     |                  | $                                              | 2.15   |       |     | $ | 2.53   |       |   | $ | 0.50    |      |   | $ | (0.25  | )     
|                                                                                                     |                  |                                                |        |       |     |   |        |       |   |   |         |     
|Average number of shares of common stock outstanding 
    diluted (in millions)
    $12/3 par value |                  |                                                | 569    |       |     |   | 568    |       |   |   | 567     |      |   |   | 565    |       
|Net income (loss) by reportable operating segment/region
    Automotive and Other Operations         |                  |                                                |        |       |     |   |        |       |   |   |         |      |   |   |        |       
|                                                                                                     | GMNA             |                                                | $      | 344   |     |   | $      | 366   |   |   | $       | (166 | ) |   | $      | 865    |  
|                                                                                                     | GME              |                                                |        | (109  | )   |   |        | (62   | ) |   |         | (207 | ) |   |        | (547   | )
|                                                                                                     | GMLAAM           |                                                |        | (17   | )   |   |        | 18    |   |   |         | 17   |   |   |        | 42     |  
|                                                                                                     | GMAP             |                                                |        | 272   |     |   |        | 253   |   |   |         | 74   |   |   |        | 131    |  
|                                                                                                     | Other Operations |                                                |        | (22   | )   |   |        | 65    |   |   |         | (85  | ) |   |        | (1,377 | )
|                                                                                                     |                  |                                                |        |       |     |   |        |       |   |   |         |     
|Net income (loss)  Automotive and Other Operations                                                  |                  |                                                | 468    |       |     |   | 640    |       |   |   | (367    | )    |   |   | (886   | )     
|Financing and Insurance Operations Net income 
    Financing and Insurance Operations               |                  |                                                | 757    |       |     |   | 799    |       |   |   | 650     |      |   |   | 743    |       
|                                                                                                     |                  |                                                |        |       |     |   |        |       |   |   |         |     
|Net income                                                                                           |                  | $                                              | 1,225  |       |     | $ | 1,439  |       |   | $ | 283     |      |   | $ | (143   | )     
|                                                                                                     |                  |                                                |        |       |     |   |        |       |   |   |         |     






|    |                                                   
|--- | --------------------------------------------------
|(1) | 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, MD and Linden, NJ plants;                                                                                   
|
| |  | A $383 million after-tax charge related to the results of
    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 reflects completion of an impairment study relating to
    the carrying value of that investment;            

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GENERAL MOTORS CORPORATION AND SUBSIDIARIES


SUPPLEMENTARY INFORMATION




Selected Quarterly Data
(Unaudited)  (concluded)




| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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; and                                                                                                                                                                                                                                                                                                                 
|
| |  | 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.

10-K







|        |                                                                                         
|------- | ----------------------------------------------------------------------------------------
|Item 9. | Changes in and disagreements with accountants on
    accounting and financial disclosure










|         |                        
|-------- | -----------------------
|Item 9A. | 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

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| |  |                                                                                                                                                                                                                                                                                                                                                                                                                          
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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) | A material weakness was identified related to the fact that
    GMs management did not adequately design the control
    procedures used to account for GMs portfolio of vehicles
    on operating lease with daily rental car entities, which was
    impaired at lease inception, and prematurely revalued to reflect
    increased anticipated proceeds upon disposal. This material
    weakness was identified in January, 2006, and remediated by
    discontinuing the premature revaluation of previously recognized
    impairments.                                                                                                                                                                                                
|
| | (C) | In the third quarter of 2005, GM management reported a material
    weakness in internal controls related to the ineffective
    operation of the procedures to determine whether an impairment
    was necessary with respect to the Corporations foreign
    investments accounted for under the equity method which resulted
    in the failure to timely reduce the carrying value of GMs
    investment in the common stock of Fuji Heavy Industries to fair
    value. GM fully remediated its related controls and procedures
    related to this matter prior to December 31, 2005. Details
    of the remediation actions were included in Item 4 of
    GMs Amendment No. 1 on
    Form 10-Q/A for
    the second quarter of 2005.



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










|         |                  
|-------- | -----------------
|Item 9B. | Other Information



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PART III


GENERAL MOTORS CORPORATION AND SUBSIDIARIES







|         |                                     
|-------- | ------------------------------------
|Item 10. | Code of Ethics for Senior Executives








Items 10, 11, 12, 13, and 14


10-K 10-K,




III-1



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##### Table of Contents






PART IV


GENERAL MOTORS CORPORATION AND SUBSIDIARIES





ITEM 15.Exhibits and
Financial Statement Schedule


|    |  |                                                                                                                                                                                                                                                                                                                                        |  |            
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -----------
|(a) |  | 1. All Financial Statements and Supplemental Information                                                                                                                                                                                                                                                                               |  | See Part II
|    |  | 2. Financial Statement Schedule II 
    Allowances for the Years Ended December 31, 2005, 2004, and
    2003                                                                                                                                                                                                                          |  | IV-3       
|    |  | 3. Exhibits                                                                                                                                                                                                                                                                                                                            |  |            
|(b) |  | Exhibits                                                                                                                                                                                                                                                                                                                               |  |            
|    |  | Exhibits listed below, which have been filed with the SEC
    pursuant to the Securities Act of 1933, as amended, or the
    Securities Exchange Act of 1934, as amended, and which were
    filed as noted below, are hereby incorporated by reference and
    made a part of this report with the same effect as filed
    herewith. |  |            

|           |  |                                                                                                                                                                                                                                                                              |  | 
|---------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | 
|(3)(i)     |  | Restated Certificate of Incorporation dated March 1, 2004
    incorporated herein by reference to Exhibit 3(i) to General
    Motors Corporations annual report on Form 10-K filed
    March 11, 2004.                                                                      |  | 
|(3)(ii)   |  | Bylaws of General Motors Corporation, as amended, dated
    February 29, 2004                                                                                                                                                                                                |  | 
|(4)(a)     |  | Indenture, dated as of November 15, 1990, between General
    Motors Corporation and Citibank, N.A., Trustee,
    incorporated herein by reference to Exhibit Amendment
    No. 1(a) to Form S-3 Registration Statement
    No. 33-41577 filed July 3, 1991.                 |  | 
|(4)(b)(i)  |  | Indenture, dated as of December 7, 1995, between General
    Motors Corporation and Citibank, N.A., Trustee, incorporated
    herein by reference to Exhibit 4(a) to Amendment No. 1 to
    Form S-3 Registration Statement No. 33-64229 filed
    November 14, 1995.        |  | 
|(4)(b)(ii) |  | First Supplemental Indenture, dated as of March 4, 2002,
    between General Motors Corporation and Citibank, N.A.,
    incorporated herein by reference to Exhibit 2 to the Current
    Report on Form 8-K of General Motors Corporation filed
    March 6, 2002.           |  | 
|4(b)(iii)  |  | Second Supplemental Indenture, dated as of November 5,
    2004, between General Motors Corporation and Citibank, N.A.,
    incorporated herein by reference to Exhibit 4.1 to the Current
    Report on Form 8-K of General Motors Corporation filed
    November 10, 2004. |  | 
|4(b)(iv)   |  | Third Supplemental Indenture, dated as of November 5, 2004,
    between General Motors Corporation and Citibank, N.A.
    incorporated herein by reference to Exhibit 4.2 to the Current
    Report on Form 8-K of General Motors Corporation filed
    November 10, 2004.   |  | 
|4(b)(v)    |  | Fourth Supplemental Indenture, dated as of November 5,
    2004, between General Motors Corporation and Citibank, N.A.,
    incorporated herein by reference to Exhibit 4.3 to the Current
    Report on Form 8-K of General Motors Corporation filed
    November 10, 2004. |  | 
|(10)      |  | Agreement, dated as of October 22, 2001, between General
    Motors Corporation and General Motors Acceptance Corporation.                                                                                                                                                   |  | 
|(10)(a)*   |  | General Motors 2002 Annual Incentive Plan, incorporated herein
    by reference to Exhibit A to the Proxy Statement of General
    Motors Corporation filed April 21, 2002.                                                                                                  |  | 
|(10)(b)*   |  | General Motors 2002 Stock Incentive Plan, incorporated herein by
    reference to Exhibit A to the Proxy Statement of General Motors
    Corporation filed April 21, 2002.                                                                                                   |  | 
|(10)(c)*   |  | General Motors 2002 Long-term Incentive Plan, incorporated
    herein by reference to Exhibit A to the Proxy Statement of
    General Motors Corporation filed April 21, 2002.                                                                                               |  | 

IV-1



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##### Table of Contents



PART IV


GENERAL MOTORS CORPORATION AND SUBSIDIARIES




Exhibits and Financial Statement
Schedule  (concluded)


|          |  |                                                                                                                                                                                                                                                                                |  | 
|--------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | 
|(10)(d)*  |  | Compensation Plan for Nonemployee Directors, incorporated herein
    by reference to Exhibit A to the Proxy Statement of General
    Motors Corporation filed April 16, 1997.                                                                                                  |  | 
|10(e)*    |  | Employment Agreement, dated as of December 5, 2000, between
    General Motors Corporation and John M. Devine, incorporated
    herein by reference to Exhibit 10(e) to General Motors
    Corporationss annual report on Form 10-K filed
    march 7, 2001.                  |  | 
|(10)(f)*  |  | Extension to Employment Agreement, dated as of December 5,
    2005 between General Motors Corporation and John M. Devine
    incorporated herein by reference to Exhibit 99.1 to the Current
    Report on Form 8-K of General Motors Corporation filed
    December 9, 2005. |  | 
|(10)(g)* |  | General Motors Company Vehicle Operations  Senior
    Management Vehicle Program (SMVP) Supplement, revised
    December 15, 2005.                                                                                                                                            |  | 
|(10)(h)* |  | Compensation Statement for G.R. Wagoner, Jr. commencing
    January 1, 2003.                                                                                                                                                                                                   |  | 
|(10)(i)* |  | Compensation Statement for John M. Devine commencing
    January 1, 2003.                                                                                                                                                                                                      |  | 
|(10)(j)* |  | Compensation Statement for Robert A. Lutz commencing
    January 1, 2003.                                                                                                                                                                                                      |  | 
|(10)(k)* |  | Compensation Statement for G.L. Cowger commencing
    February 1, 2004.                                                                                                                                                                                                        |  | 
|(10)(l)* |  | Compensation Statement for Thomas A. Gottschalk commencing
    January 1, 2005 and description of retirement program.                                                                                                                                                          |  | 
|(10)(m)* |  | GM Supplemental Executive Retirement Plan as amended through
    October 18, 2005.                                                                                                                                                                                             |  | 
|(10)(n)* |  | General Motors Benefit Equalization Plan for Salaried Employees,
    amended as of October 18, 2005.                                                                                                                                                                           |  | 
|(10)(o)* |  | Description of Executive and Board Compensation Reductions.                                                                                                                                                                                                                    |  | 
|(12)     |  | Computation of Ratios of Earnings to Fixed Charges for the Years
    Ended December 31, 2005, 2004, and 2003.                                                                                                                                                                  |  | 
|(13)     |  | General Motors Acceptance Corporation Annual Report on
    Form 10-K, File No. 001-03754, for the fiscal year ended
    December 31, 2005.                                                                                                                                     |  | 
|(21)     |  | Subsidiaries of the Registrant as of December 31, 2005.                                                                                                                                                                                                                        |  | 
|(23)     |  | Consent of Independent Registered Public Accounting Firm.                                                                                                                                                                                                                      |  | 
|(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.                                                                                                                 |  | 






|  |                                                                                                                         
|- | ------------------------------------------------------------------------------------------------------------------------
|* | Management contract or compensatory plan required to be filed as
    an exhibit pursuant to Item 15(b) of
    Form 10-K.



IV-2



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


SCHEDULE II  ALLOWANCES


|                                     |                                               |                                                                        |                                       |           |            |       |           |            |     |       |            |     |            |      |   |       |     |       |   |       |     |       | 
|------------------------------------ | --------------------------------------------- | ---------------------------------------------------------------------- | ------------------------------------- | --------- | ---------- | ----- | --------- | ---------- | --- | ----- | ---------- | --- | ---------- | ---- | - | ----- | --- | ----- | - | ----- | --- | ----- | 
|                                     |                                               |                                                                        |                                       | Additions |            |       | Additions |            |     |       |            |    
|                                     |                                               | Balance at                                                             |                                       |           | Charged to |       |           | Charged to |     |       |            |     | Balance at |     
|                                     |                                               | Beginning                                                              |                                       |           | Costs and  |       |           | Other      |     |       |            |     | End of     |     
|Description                          |                                               | of Year                                                                |                                       |           | Expenses   |       |           | Accounts   |     |       | Deductions |     |            | Year |  
|                                     |                                               |                                                                        |                                       |           |            |       |           |            |     |       |            |     |            |      |  
|                                     |                                               | (Dollars in millions)                                                  |                                      
|For the Year Ended December 31, 2005 |                                               |                                                                        |                                       |           |            |       |           |            |     |       |            |     |            |      |   |       |     |       |   |      
|Allowances Deducted from Assets      |                                               |                                                                        |                                       |           |            |       |           |            |     |       |            |     |            |      |   |       |     |       |   |      
|                                     | Allowance for credit losses                   |                                                                        | $                                     | 3,419     |            |       | $         | 1,088      |     |       | $          |    |            |      | $ | 1,391 | (b) |       | $ | 3,116 |    
|                                     |                                               | Accounts and notes receivable (for doubtful receivables)               |                                       |           | 303        |       |           |            | 73  |       |            |     |           |      |   |       | 38  | (b)   |   |       | 338 |      
|                                     |                                               | Inventories (principally for obsolescence of service parts)            |                                       |           | 338        |       |           |            | 70  | (c)   |            |     |           |      |   |       |    |       |   |       | 408 |      
|                                     |                                               | Other investments and miscellaneous assets (receivables and
    other) |                                       |           | 10         |       |           |            |    |       |            |     | 7          |      |   |       |    |       |   |       | 17  |      
|                                     | Miscellaneous allowances (mortgage and other) |                                                                        |                                       | 161       |            |       |           | 25         |     |       |            | 21  |            |      |   | 123   |     |       |   | 84    |    
|                                     |                                               |                                                                        |                                       |           |            |       |           |            |     |       |            |     |            |      |  
|                                     |                                               |                                                                        | Total Allowances Deducted from Assets |           | $          | 4,231 |           |            | $   | 1,256 |            |     | $          | 28   |   |       | $   | 1,552 |   |       | $   | 3,963 | 
|                                     |                                               |                                                                        |                                       |           |            |       |           |            |     |       |            |     |            |      |  
|For the Year Ended December 31, 2004 |                                               |                                                                        |                                       |           |            |       |           |            |     |       |            |     |            |      |   |       |     |       |   |      
|Allowances Deducted from Assets      |                                               |                                                                        |                                       |           |            |       |           |            |     |       |            |     |            |      |   |       |     |       |   |      
|                                     | Allowance for credit losses                   |                                                                        | $                                     | 3,042     |            |       | $         | 1,944      |     |       | $          |    |            |      | $ | 1,567 | (b) |       | $ | 3,419 |    
|                                     |                                               | Accounts and notes receivable (for doubtful receivables)               |                                       |           | 212        |       |           |            | 112 |       |            |     | 5          | (a)  |   |       | 26  | (b)   |   |       | 303 |      
|                                     |                                               | Inventories (principally for obsolescence of service parts)            |                                       |           | 393        |       |           |            |    |       |            |     |           |      |   |       | 55  | (c)   |   |       | 338 |      
|                                     |                                               | Other investments and miscellaneous assets (receivables and
    other) |                                       |           | 84         |       |           |            |    |       |            |     |           |      |   |       | 74  |       |   |       | 10  |      
|                                     | Miscellaneous allowances (mortgage and other) |                                                                        |                                       | 193       |            |       |           | 28         |     |       |            | 163 |            |      |   | 223   |     |       |   | 161   |    
|                                     |                                               |                                                                        |                                       |           |            |       |           |            |     |       |            |     |            |      |  
|                                     |                                               |                                                                        | Total Allowances Deducted from Assets |           | $          | 3,924 |           |            | $   | 2,084 |            |     | $          | 168  |   |       | $   | 1,945 |   |       | $   | 4,231 | 
|                                     |                                               |                                                                        |                                       |           |            |       |           |            |     |       |            |     |            |      |  
|For the Year Ended December 31, 2003 |                                               |                                                                        |                                       |           |            |       |           |            |     |       |            |     |            |      |   |       |     |       |   |      
|Allowances Deducted from Assets      |                                               |                                                                        |                                       |           |            |       |           |            |     |       |            |     |            |      |   |       |     |       |   |      
|                                     | Allowance for credit losses                   |                                                                        | $                                     | 2,991     |            |       | $         | 1,721      |     |       | $          |    |            |      | $ | 1,670 | (b) |       | $ | 3,042 |    
|                                     |                                               | Accounts and notes receivable (for doubtful receivables)               |                                       |           | 166        |       |           |            | 63  |       |            |     | 15         | (a)  |   |       | 32  | (b)   |   |       | 212 |      
|                                     |                                               | Inventories (principally for obsolescence of service parts)            |                                       |           | 255        |       |           |            | 138 | (c)   |            |     |           |      |   |       |    |       |   |       | 393 |      
|                                     |                                               | Other investments and miscellaneous assets (receivables and
    other) |                                       |           | 26         |       |           |            |    |       |            |     | 58         |      |   |       |    |       |   |       | 84  |      
|                                     | Miscellaneous allowances (mortgage and other) |                                                                        |                                       | 153       |            |       |           | 78         |     |       |            | 15  |            |      |   | 53    |     |       |   | 193   |    
|                                     |                                               |                                                                        |                                       |           |            |       |           |            |     |       |            |     |            |      |  
|                                     |                                               |                                                                        | Total Allowances Deducted from Assets |           | $          | 3,591 |           |            | $   | 2,000 |            |     | $          | 88   |   |       | $   | 1,755 |   |       | $   | 3,924 | 
|                                     |                                               |                                                                        |                                       |           |            |       |           |            |     |       |            |     |            |      |  






|       | 
|------ | 
|Notes: | 



|    |  |                                                                        
|--- |  | -----------------------------------------------------------------------
|(a) |  | Primarily reflects the recovery of accounts previously
    written-off.
|   
|(b) |  | Accounts written off.                                                  
|   
|(c) |  | Represents net change of inventory allowances.                         



IV-3



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##### Table of Contents



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

th


|                                                     |  |                                           |  |  |  | 
|---------------------------------------------------- |  | ----------------------------------------- |  |  |  | 
|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                  |  | 

IV-4



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##### Table of Contents



GENERAL MOTORS CORPORATION AND SUBSIDIARIES


SIGNATURES


|                                           |  |          |  |  |  | 
|------------------------------------------ |  | -------- |  |  |  | 
|Signature                                  |  | Title    |  | 
|                                           |  |          |  | 
|                                          
|/s/ PERCY BARNEVIK(Percy Barnevik)         |  | Director |  | 
|                                          
|/s/ ERSKINE BOWLES(Erskine Bowles)         |  | Director |  | 
|                                          
|/s/ JOHN H. BRYAN(John H. Bryan)           |  | Director |  | 
|                                          
|/s/ ARMANDO M. 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 York)            |  | Director |  | 

IV-5