Special Announcement

GM Turnaround Actions and Initiatives
Since the first of this year, U.S. market and economic conditions have become significantly more difficult.  These conditions, along with the rapid change in automotive industry sales mix, require us to take further actions that will position us not only to survive but, to come out of this as a lean, strong and successful company.

This morning Rick Wagoner, GM's Chairman and CEO, announced a series of actions to bolster the company's liquidity by $15 billion through 2009.  Included in these actions is the suspension of the GM common stock dividend, reductions in capital spending and structural cost, and a 20 percent reduction in salaried employment cash costs.  In addition, he announced planned asset sales and capital market activities that again are focused on improving the company's liquidity position.

As part of the 20 percent reduction in salaried employment cash costs, we are making a change to the General Motors Salaried Health Care Program.  Effective January 1, 2009, GM is canceling health care coverage for salaried retirees, surviving spouses and their dependents when an individual is age 65 or older.  Instead, eligible salaried retirees and surviving spouses over age 65 will receive a monthly pension increase of $300.  This pension increase is designed to help offset some of the health care costs in retirement.

Eligible salaried retirees, surviving spouses and their dependents, who are pre-age 65, may continue to participate in the General Motors Salaried Health Care Program until they turn age 65.  This program remains subject to the Salaried Retiree Health Care Cap that became effective January 1, 2007.

More information regarding this announcement will be mailed to retirees and surviving spouses this week.  GM intends to host many retiree meetings to help explain the changes and answer questions.  We will contact salaried retiree clubs to set up meetings in the near future.

This was a particularly difficult decision for the company to make; however, it is necessary to take this action given today's challenging economic conditions.  As hard as this action is, we are doing what is necessary to position GM to withstand the U.S. market downturn and emerge a stronger company.  GM's goal is to make this transition as easy as possible for retirees who are impacted.

To read the press release summarizing these turnaround actions and initiatives, click here.