8-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549-1004

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) July 26, 2006

GENERAL MOTORS CORPORATION

(Exact Name of Registrant as Specified in its Charter)

STATE OF DELAWARE	1-143	38-0572515
(State or other jurisdiction of Incorporation or Organization)	(Commission File Number)	(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

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17-CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

 News Release, dated July 26, 2006

 Charts Furnished to Securities Analysts

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITIONS

On July 26, 2006, a news release was issued on the subject of second quarter 2006 consolidated earnings for General Motors Corporation (GM). The news release did not include certain financial statements, related footnotes and certain other financial information that will be filed with the Securities and Exchange Commission as part of GM’s Quarterly Report on Form 10-Q. The second quarter earnings release for GM is attached as Exhibit 99.1.

Charts furnished to securities analysts in connection with GM’s second quarter 2006 earnings release are attached as Exhibit 99.2.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

EXHIBITS

Exhibits	Description	Method of Filing
Exhibit 99.1	News Release Dated July 26, 2006 and Financial Statements	Attached as Exhibit
Exhibit 99.2	Charts Furnished to Securities Analysts	Attached as Exhibit

* * * * * *

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	GENERAL MOTORS CORPORATION (Registrant)
Date: July 26, 2006	By:	/s/ PAUL W. SCHMIDT
		(Paul W. Schmidt, Controller)

Exhibit Index

EXHIBITS

Exhibits	Description	Method of Filing
Exhibit 99.1	News Release Dated July 26, 2006 and Financial Statements	Attached as Exhibit
Exhibit 99.2	Charts Furnished to Securities Analysts	Attached as Exhibit

EX-99.1

Exhibit 99.1

	General Motors	GM Communications media.gm.com
For Release:
July 26, 2006, 7:00 a.m. EDT

GM Reports Improved Second-Quarter Financial Results

Reported net loss of $3.2 billion, or $5.62 per share

Adjusted net income of $1.2 billion, or $2.03 per share

Structural cost reduction target increased to $9 billion

Increased liquidity to $22.9 billion, supported by improved cash flow

Record revenue of $54.4 billion

DETROIT – General Motors Corp. (NYSE: GM) today reported significantly improved 2006 second quarter financial results. Global automotive operations were profitable on an adjusted basis, excluding special items, for the first time since 2004, and the company posted a second consecutive quarter of record revenue.

GM reported a net loss of $3.2 billion, or $5.62 per share, for the second quarter of 2006, compared with a reported loss of $987 million, or $1.75 per share, for the year-ago quarter. The net loss for the quarter included a total of $4.3 billion, or $7.66 per share, in special items that reflected a previously announced $3.7 billion after-tax charge related to the successful accelerated attrition program, in which 34,400 hourly employees participated. Other special items included a loss related to the pending sale of 51 percent of GMAC, a gain on the disposition of Isuzu stock, and restructuring charges.

GM posted 2006 second-quarter adjusted net income, excluding special items, of $1.2 billion, or $2.03 per share, on record revenue of $54.4 billion. This reflects a $1.4 billion improvement from the year-ago adjusted loss of $231 million, or $0.41 per share, on revenue of $48.5 billion.

(MORE)

2

“With the support of our employees, unions, dealers, suppliers and stockholders, we are moving rapidly and aggressively to address our challenges and restructure GM for future success,” said Rick Wagoner, GM chairman and chief executive officer. “It’s rewarding to see our automotive business return to profitability on an operating basis and a clear sign that we’re on the right track, but there is more work to be done.”

Wagoner also said the success of the accelerated attrition program in the United States, along with other cost initiatives, led GM to increase its structural cost reduction target in North America to $9 billion from $8 billion on an average annual running rate basis by the end of 2006.

“Our turnaround has not just gained traction, it’s accelerating into high gear,” Wagoner said. “While significant work still remains, our ability to identify and initiate $9 billion in cost cuts over the course of the past year is unprecedented in this industry.

“We’re particularly pleased with the speed with which our people have implemented our turnaround plan. Conventional wisdom is that you can’t turn a ship as big as GM around quickly. We aim to prove that conventional wisdom wrong.”

GM Automotive Operations

GM’s global automotive operations earned $362 million on an adjusted basis, excluding special items, representing an improvement of $1.3 billion year-over-year. This is due primarily to significant improvement in GM North America and continued profitability improvement in other regions.

GM’s global market share in the second quarter was 13.8 percent, up from the first quarter market share of 13.1 percent, but down from 15.1 percent last year. The change in global market share is largely attributable to last year’s highly successful employee discount incentive program in North America and lower fleet sales in Europe.

(MORE)

3

“We know we have to develop and build great cars and trucks to grow our business and we’re encouraged by the recent success of our newest vehicles, particularly in the U.S. market,” Wagoner said. “Our new full-size SUVs, the Chevrolet Impala and HHR, and Pontiac G6 have all posted strong sales this quarter. Our newly launched vehicles will account for about 30 percent of our U.S. retail sales this year and grow to 40 percent next year.”

GM North America posted an adjusted net loss of $85 million, excluding special items, in the second quarter of 2006, a $1.1 billion improvement over the prior year period. The improvement is attributable to reductions in GM’s cost base across a broad range of activities, including improvement in warranty and other quality-related costs and a reduction in ongoing pension expense, due largely to the success of the hourly attrition program.

The attrition program and other cost initiatives have enabled GM to increase its structural cost reduction target in North America. GM expects to realize approximately $6 billion in cost savings in 2006, up from the previously announced $5 billion. A major contributor to this improvement is the April 30 remeasurement of the U.S. hourly pension plans, which will result in a pre-tax pension expense reduction of about $700 million for the 2006 calendar year.

“We have made solid progress in implementing our North America turnaround plan in the first half, posting more than $2 billion worth of improvements at GMNA, excluding special items,” Wagoner continued. “More significantly, the impact of our cost-reduction efforts on the bottom line will accelerate in the second half. This, combined with building sales momentum from our new cars and trucks and improved marketing, should enable us to continue to improve year-over-year results significantly.”

GM Europe posted adjusted earnings, excluding special items, of $124 million for the quarter, an improvement of $94 million compared with earnings of $30 million in the second quarter of 2005. The improved earnings reflect favorable material costs and improvements in pricing.

(MORE)

4

“Our European operations continue to gain momentum, posting a second consecutive profitable quarter, excluding special items,” Wagoner said. “We are pleased with Saab’s global market performance, posting a sales increase of 24 percent for the first half of the year, and the continued growth of the Chevrolet brand in Europe. We are also encouraged by the response to the new Opel/Vauxhall Corsa, unveiled at the recent London Motor Show and scheduled to arrive in showrooms this fall.”

On an adjusted basis, excluding special items, GM Asia Pacific posted earnings of $167 million in the second quarter, down slightly from last year’s earnings of $183 million. The difference is more than accounted for by the loss of equity income from Suzuki following the reduction in GM’s equity stake. Market share in the region increased to 6.7 percent in the second quarter of 2006, up from 6.2 percent during the second quarter of 2005, driven by strong sales in China.

GM Latin America, Africa and Middle East posted adjusted earnings, excluding special items, of $156 million, a significant increase of $131 million compared with last year’s second quarter results of $25 million. This reflects an increase in volume and improved pricing.

GMAC

General Motors Acceptance Corporation (GMAC) reported record net income of $898 million for the second quarter of 2006, up $82 million from second quarter 2005 earnings of $816 million. GMAC’s mortgage business, ResCap, reported increased results, while the Automotive Finance and Insurance businesses reported lower earnings.

“GMAC continues to perform well despite pressure on profit margins from rising interest rates,” Wagoner said. “We remain on track to complete the sale of 51 percent of GMAC to a consortium of investors in the fourth quarter.”

(MORE)

GMAC’s Automotive Finance operations reported earnings of $251 million, down $115 million from $366 million earned in the second quarter of 2005. The decrease is due to a

5

combination of continued margin pressures, lower remarketing results in the U.S. and Canada and higher consumer credit provisions, slightly offset by certain favorable non-U.S. tax rate changes and increases in investment income.

ResCap earnings were $547 million in the second quarter of 2006, up from the $300 million earned in the year-ago period, due primarily to the $259 million gain on sale of its equity investment in a regional homebuilder. Excluding the gain on sale, ResCap earnings declined slightly in comparison to the same period last year. Mortgage originations were $47 billion for the second quarter, representing an increase from the $42.6 billion in the second quarter of last year.

GMAC’s insurance operations generated net income of $80 million for the quarter, down $20 million from earnings of $100 million in the second quarter of 2005, primarily due to a combination of lower capital gains and wholesale losses incurred in the quarter related to hail storms in the Midwest. In addition, GMAC’s insurance operations maintained a strong investment portfolio, with a market value of $7.7 billion on June 30, 2006, including after-tax net unrealized capital gains of $545 million.

GMAC provided a significant source of cash flow to GM through the payment of a $1.4 billion dividend in the second quarter.

GMAC continues to maintain adequate liquidity with cash reserve balances at June 30, 2006 of $22.7 billion, including $17.2 billion in cash and cash equivalents and $5.5 billion invested in marketable securities.

(MORE)

6

Cash and Liquidity

GM continues to bolster its liquidity position, a key element to fund the North America turnaround plan. GM generated adjusted operating cash flow of $700 million in the second quarter of 2006, a more than $2 billion improvement versus the year-ago period. Cash, marketable securities, and readily-available assets of the Voluntary Employees’ Beneficiary Association (VEBA) trust totaled $22.9 billion on June 30, 2006, up from $21.6 billion on March 31, 2006.

# # #

Forward-Looking Statements

In this press release and in related comments by General Motors’ management, we will use words like “expect,” “anticipate,” “estimate,” “forecast,” “initiative,” “objective,” “plan,” “goal,” “project,” “outlook,” “priorities,” “target,” “intend,” “evaluate,” “pursue,” “seek,” “may,” “would,” “could,” “should,” “believe,” “potential,” “continue,” “designed,” or “impact” to identify forward-looking statements that represent our current judgments about possible future events. We believe these judgments are reasonable, but GM’s actual results may differ materially due to a variety of important factors. Among other items, such factors might include: our ability to achieve reductions in costs as a result of the turnaround restructuring, health care cost reductions and an accelerated attrition program, to realize production efficiencies and to implement capital expenditures at levels and times planned by management; the pace of product introductions and market acceptance of our new products; changes in the competitive environment and the effect of competition in our markets, including on our pricing policies; our ability to maintain adequate liquidity and financing sources and an appropriate level of debt; restrictions on GMAC’s and ResCap’s ability to pay dividends and prepay subordinated debt obligations to us; the final results of investigations and inquiries by the SEC and other government agencies; changes in relations with unions and employees/retirees and the legal interpretations of the agreements with those unions with regard to employees/retirees; our ability to complete the timely sale of a 51-percent controlling interest in GMAC and the effect of that sale on the results of GM’s and GMAC’s operations and liquidity; labor strikes or work stoppages at GM or its key suppliers such as Delphi Corporation or financial difficulties at those key suppliers; negotiations and bankruptcy court actions with respect to our relationship with Delphi; additional credit rating downgrades and their effects; costs and risks associated with litigation; new or amended laws, regulations, policies or other activities of governments, agencies and similar organizations; price increases or shortages of fuel; changes in economic conditions, commodity prices, currency exchange rates or political stability in the markets in which we operate; and 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 its mortgage subsidiaries operate, and changes in its contractual servicing rights. In addition to these factors, a variety of other factors may materially affect GMAC’s actual results, including: changes in the competitive environment and the effect of competition in GMAC’s markets, including GMAC’s pricing policies; GMAC’s ability to maintain adequate financing sources and an appropriate level of debt; the profitability and financial condition of GM, including changes in production or sales of GM vehicles and risks based on GM’s contingent benefit guarantees; changes in GMAC’s 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; and the threat of natural calamities.

The most recent annual reports on Form 10-K and quarterly reports on Form 10-Q filed by GM and GMAC provide information about these factors, which may be revised or supplemented in future reports to the SEC on those forms or on Form 8-K.

(MORE)

7

We caution investors not to place undue reliance on forward-looking statements, and do not undertake any obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events or other such factors that affect the subject of these statements, except where expressly required by law.

Use of Non-GAAP Financial Measures

This press release and the accompanying tables include the following non-GAAP financial measures: (a) adjusted net income, (b) automotive cash flow, (c) GM North America vehicle revenue per unit, and (d) GMAC loss on sale. Each of these financial measures excludes the impact of certain items and therefore has not been calculated in accordance with U.S. generally accepted accounting principles, or GAAP.

Adjusted Net Income

Adjusted net income excludes a charge for the special attrition program agreement, restructuring and impairments charges, and gains and losses on the sale of businesses and business interests. Each of the adjustments is described in more detail below. This press release also contains a reconciliation of each of these non-GAAP measures to its most comparable GAAP financial measure.

Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our operating results because they exclude amounts that GM management does not consider part of operating results when assessing the performance of the organization and measuring the results of GM’s performance. In addition, GM has historically reported similar non-GAAP financial measures. GM believes that inclusion of these non-GAAP financial measures provides consistency and comparability with past earnings releases. GM management uses these non-GAAP financial measures to evaluate GM’s performance and believes these measures allow GM management to readily view operating trends, perform analytical comparisons, benchmark performance among geographic regions and assess whether the GM North American structural cost turnaround plan is on target. Also, GM management uses adjusted net income for forecasting purposes, and in determining its future capital investment allocations. Also, adjusted net income is a key variable in determining management incentive compensation. Accordingly, GM believes these non-GAAP financial measures are useful to investors in allowing for greater transparency of supplemental information used by management in its financial and operational decision-making.

While GM believes that these non-GAAP financial measures provide useful supplemental information, there are limitations associated with the use of these non-GAAP financial measures. These non-GAAP financial measures are not prepared in accordance with GAAP, do not reflect a comprehensive system of accounting and may not be completely comparable to similarly titled measures of other companies due to potential differences in the exact method of calculation between companies. Items such as special attrition program agreement and restructuring charges that are excluded from GM’s non-GAAP financial measures can have a material impact on net earnings. As a result, these non-GAAP financial measures have limitations and should not be considered in isolation from, or as a substitute for, net earnings, cash flow from operations or other measures of performance prepared in accordance with GAAP. GM compensates for these limitations by using these non-GAAP financial measures as supplements to GAAP financial measures and by reviewing the reconciliations of the non-GAAP financial measures to their most comparable GAAP financial measure. Investors are encouraged to review the reconciliations of these non-GAAP financial measures to their most comparable GAAP financial measures that are included elsewhere in this press release.

(MORE)

8

The following is a discussion of the adjustments to the comparable GAAP financial measure that produces our non-GAAP financial measures:

• Special attrition program charges. Our non-GAAP financial measures exclude the estimated charge associated with the special attrition program agreement among the UAW, GM and Delphi. Management believes it is useful in evaluating GM’s and its management teams’ and business units’ performance during a particular time period to exclude charges associated with the special attrition program, because this irregular charge is generally associated with right sizing the GM North America business. Accordingly, management does not consider these costs as part of its core earnings for purposes of evaluating the performance of the business, and excludes such costs when evaluating the performance of the Corporation, its business units and its management teams and when making decisions to allocate resources among GM’s business units.

• Restructuring and impairment charges. Our non-GAAP financial measures exclude exit costs and related charges, primarily consisting of severance costs and lease abandonment costs, and any subsequent changes in estimates related to exit activities as they relate to GM’s significant restructurings, which involved significant layoffs. Management believes the exclusion of restructuring and impairment charges from adjusted net income is useful because management does not consider these costs part of GM’s core earnings in evaluating GM’s operational managers and including the restructuring charges would hamper investors’ ability to evaluate the performance of our management in the manner in which GM’s management evaluates performance. Additionally, management excludes restructuring and impairment charges in its determinations regarding the allocation of resources, such as capital investment, among the Corporation’s business units and as part of its forecasting and budgeting.

• Gains and losses on the sale of business units and business interests. The gains or losses on the sale of business units and business interests are excluded from adjusted net income. While GM is involved in sales of its business units and business interests from time to time and the Corporation may have significant gains or losses from such sales in the future, such events have historically occurred sporadically. Management excludes the charges associated with these events when it evaluates the Corporation’s operations and for internal reporting, forecasting purposes and allocation of additional resources.

• Adjusted Operating Cash Flow. GM also includes the use of non-GAAP automotive cash flow in its earnings releases and charts for securities analysts. Management believes that providing automotive cash flow furnishes it and investors with useful information by representing the cash flow generated or consumed by its automotive operations, including cash consumed by automotive capital expenditures and equity investments in companies related to our core business and cash generated by sales of automotive operating assets and equity investments in companies related to GM’s core business, before funding non-operating-related obligations including debt maturities, dividends and other non-operating items. Management uses this non-GAAP financial measure to assess its automotive cash flow when evaluating the performance of GM, its business units and its management teams and when making decisions to allocate resources among GM’s business units.

• GM North America Vehicle Revenue per Unit. GM’s earnings releases and charts for securities analysts also include the use of non-GAAP measures of revenue per vehicle. Management uses revenue per vehicle to track operating efficiency and to facilitate comparisons between periods and between manufacturers, and believes that it would provide valuable information to investors who are interested in identifying trends and comparing different companies. Revenue per vehicle includes certain sales to other GM regions that are excluded from GAAP reporting, and excludes non-vehicle sales such as service parts and operations and OnStar service and other income that GM does not derive from the sale of vehicles such as interest on the GM credit card. Management also includes sales to daily car rental companies in revenue per vehicle; although they are excluded from GAAP reporting because of GM’s repurchase obligations.

Contacts:

Gina Proia
GM Financial Communications
212-418-6389
914-714-9166 mobile

Brenda Rios
GM Financial Communications
313-665-3165
313-268-4710 mobile

9

General Motors Corporation
Non-GAAP Disclosure

     GM includes the use of non-GAAP adjusted net income (loss) in its earnings releases and charts for securities analysts. GM management evaluates its business and makes certain operating decisions (e.g., budgeting, forecasting, employee compensation, asset management and resource allocation) using adjusted net income. Management believes that because this measure provides it with useful supplemental information for evaluating and operating the business, investors would find it beneficial to have the opportunity to view the business in the same manner. Adjusted net income is a measure that focuses on the Corporation’s core business operations and facilitates comparison of those businesses from period to period on a consistent basis. Management also believes it is appropriate in evaluating the Corporation’s operations to exclude restructuring charges and any gain or losses from one-time items because these costs vary in size and frequency among the four geographic regions, since inclusion of these events would make results less comparable between periods and between regions.

     GM also includes the use of non-GAAP managerial automotive operating cash flow in its earnings releases and charts for securities analysts. Management believes that providing managerial automotive operating cash flow furnishes it and investors with useful information by representing the cash flow generated or consumed by its automotive operations, including cash consumed by automotive capital expenditures and equity investments in companies related to our core business and cash generated by sales of automotive operating assets and equity investments in companies related to our core business, before funding non-operating-related obligations including debt maturities, dividends and other non-operating items.

     GM’s earnings releases and charts for securities analysts also include the use of non-GAAP measures of revenue per vehicle. Management uses revenue per vehicle to track operating efficiency and to facilitate comparisons between periods and between manufacturers, and believes that it would provide valuable information to investors who are interested in identifying trends and comparing different companies. Revenue per vehicle includes certain sales to other GM regions that are excluded from GAAP reporting, and excludes non-vehicle sales such as service parts and operations and OnStar service and other income that GM does not derive from the sale of vehicles such as interest or the GM credit card. Management also includes sales to daily car rental companies in revenue per vehicle, although they are excluded from GAAP reporting because of GM’s repurchase obligations.

     Non-GAAP measures should not be considered as a substitute for measures of financial performance prepared in accordance with GAAP. Investors and potential investors are encouraged to review the reconciliation of non-GAAP financial measures contained within the attached press release with their most directly comparable GAAP financial results.

10

General Motors Corporation
List of Special Items – After Tax
(Dollars in millions except per share amounts)
(Unaudited)

	Three Months Ended						Year to Date
	June 30, 2006						June 30, 2006
	Net			$1-2/3			Net			$1-2/3
	Income			EPS			Income			EPS
REPORTED
Net income	$	(3,179	)	$	(5.62	)	$	(2,734	)	$	(4.83	)
ADJUSTMENTS
Special attrition program (A)		3,659			6.47			3,659			6.47
Sale of GMAC (B)		490			0.86			490			0.86
Restructuring and impairment charges (C)		395			0.70			506			0.89
Sale of investments (D)		(212	)		(0.37	)		(584	)		(1.03	)
Subtotal		4,332			7.66			4,071			7.19
ADJUSTED
Adjusted Income — Basic EPS	$	1,153		$	2.04		$	1,337		$	2.36
Adjusted EPS — Fully Diluted				$	2.03					$	2.36

(A)

Relates to the results of the GM-UAW-Delphi Special Attrition Program, primarily for payments to employees (approximately $1.4 billion) and for the curtailment charges associated with GM’s U.S. hourly pension plan as a result of the attrition program (approximately $2.9 billion). The charge also includes a favorable revision of the accrual taken in the fourth quarter of 2005 for the North American plant capacity actions (approximately $600 million).

(B)

Relates to the sale of a 51% controlling interest in GMAC, expected to close in the fourth quarter of 2006.

• Approximately $281 million after tax ($433 million pre-tax) is attributable to differences between tangible book value to be paid by the consortium of investors and GMAC’s actual book value, partially offset by 51% of the effects of previously unrecognized net gains reflected in GMAC’s other comprehensive income. The pretax portion is recorded as part of the “Loss on controlling interest in GMAC — held for sale” line item of the consolidated statement of operations, whereas the tax benefit of $152 million is recorded in the “Income tax benefit” line of the consolidated statement of operations.

• Approximately $209 million, after tax, associated with incremental tax costs created by book to tax basis differences now recognized due to the pending sale. The tax expense of $209 million is recorded in the “Income tax benefit” line of the consolidated statement of operations.

11

General Motors Corporation
List of Special Items – After Tax
(Unaudited)

The consolidated statement of operations reflects a pretax loss to date of $1.2 billion in the “Loss on controlling interest in GMAC — held for sale” line item. The line item includes the $433 million pretax amount noted above, as well as a remaining pretax loss of $775 million attributable to GMAC operating lease assets classified as held for sale. Pursuant to the requirements of Statement of Financial Accounting Standards No. 144, the company is required to cease depreciation on long-lived assets classified as held for sale. Accordingly, pretax income in the second quarter was higher by $775 million as reported in the “Cost of sales and other expenses” line item of the consolidated statement of operations. However, because that amount is not recoverable at close in the sales price, a corresponding increase of $775 million was recorded in the “Loss on controlling interest in GMAC — held for sale” line item during the quarter, reducing the carrying value of operating lease assets held for sale.

(C) Relates to various restructuring initiatives and other matters, as follows:

• Second quarter 2006:

• A charge of $197 million, after tax ($303 million pretax), for the write down of product-related assets at GMNA.

• Charges totaling $182 million were recognized at GME, primarily related to the announced closure in December 2006 of the GM assembly plant in Azambuja, Portugal, which includes amounts for the writedown to fair market value of plant assets, employee separation costs, and contract cancellation charges. Second quarter GME charges also include other product-related asset impairments and separation charges.

• Other restructuring charge of $16 million at GMLAAM.

• Year-to-date totals include the following charges recognized in the first quarter of 2006:

• Estimated charges of $65 million related to separations of salaried employees at GMNA.

• Curtailment charges associated with modifications to the U.S. Retirement Program for Salaried Employees announced in the first quarter of 2006. GMNA and Other Operations recognized charges of $12 million and $3 million respectively associated with these modifications.

• A favorable adjustment of $88 million for higher than anticipated headcount reductions associated with previously announced GMNA plant idling activities,

• A charge of $52 million for certain components of the hourly attrition program related to retroactive lump-sum payments, recognized at GMNA.

• Other restructuring charges of $40 million and $27 million, recognized at GME and GMLAAM, respectively.

(D) Second quarter results include an after-tax gain of $212 million from the sale of GM’s entire investment in Isuzu Motors, Ltd. Year to date results include an after-tax gain of $372 million from the sale of 92.36 million shares of GM’s investment in Suzuki Motor Corp. (Suzuki) for approximately $2.0 billion in cash, reducing GM’s equity stake in Suzuki from 20.4% to approximately 3.7% (16.3 million shares). The gains were recognized at GMAP.

12

General Motors Corporation
List of Special Items – After Tax
(Dollars in millions except per share amounts)
(Unaudited)

	Three Months Ended						Year to Date
	June 30, 2005						June 30, 2005
	Net			$1-2/3			Net			$1-2/3
	Income			EPS			Income			EPS
REPORTED
Net income	$	(987	)	$	(1.75	)	$	(2,240	)	$	(3.96	)
ADJUSTMENTS
Salaried attrition program (A)								148			0.26
Plant and facility impairments (B)								84			0.15
Impairment of investment in FHI(C)		788			1.39			788			1.39
GME restructuring charge (D)		126			0.22			548			0.97
Tax items (E)		(158	)		(0.27	)		(547	)		(0.97	)
Subtotal		756			1.34			1,021			1.80
ADJUSTED
Adjusted Income	$	(231	)	$	(0.41	)	$	(1,219	)	$	(2.16	)

(A) Salaried attrition program relates to voluntary early retirement and other separation programs in the U.S. in the first quarter of 2005.

(B) Plant and facility impairments relates to the first quarter 2005 write-down to fair market value of various plant assets in connection with the cessation of production at the Lansing assembly plant.

(C) Relates 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).

(D) In the fourth quarter of 2004, GM Europe announced a restructuring plan 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 restructuring charge of $126 million in the second quarter of 2005 relates to approximately 500 additional separations in the second quarter, as well as those charges related to previous separations that are required to be amortized over future periods. The year-to-date charge of $548 million also includes a separation cost of $422 million in the first quarter of 2005, which related to approximately 5,650 people.

(E) Tax items relate to tax benefits (including the Medicare Part D benefit in the U.S), in excess of GM’s previously communicated annual effective tax rate of 15%, which do not vary with the level of pre-tax income. Adjusted loss reflects an effective tax rate of 15%.

13

General Motors Corporation
Summary Corporate Financial Results
(Unaudited)

	Second Quarter						Year to Date
(Dollars in millions except per share amounts)	2006			2005			2006			2005
Total net sales and revenues	$	54,395		$	48,469		$	106,640		$	94,242
Adjusted	$	54,084		$	48,469		$	105,790		$	94,242
Net income (loss)	$	(3,179	)	$	(987	)	$	(2,734	)	$	(2,240	)
Adjusted	$	1,153		$	(231	)	$	1,337		$	(1,219	)
Net margin
(Net income / Total net sales and revenues)		(5.8	)%		(2.0	)%		(2.6	)%		(2.4)	%
Adjusted		2.1	%		(0.5	)%		1.3	%		(1.3	)%
Earnings (losses) per share — basic
$1-2/3 par value	$	(5.62	)	$	(1.75	)	$	(4.83	)	$	(3.96	)
Earnings (losses) per share — diluted
$1-2/3 par value	$	(5.62	)	$	(1.75	)	$	(4.83	)	$	(3.96	)
Earnings (losses) per share — adjusted diluted
$1-2/3 par value	$	2.03	(1)	$	(0.41	)	$	2.36		$	(2.16	)
GM $1-2/3 par value average shares outstanding (Mil’s)
Basic shares		566			565			566			565
Diluted shares		567			565			567			565
Cash dividends per share of common stock
GM $1-2/3 par value	$	0.25		$	0.50		$	0.50		$	1.00

See reconciliation of adjusted financial results on pages 15 — 20, and footnotes on page 23.

14

General Motors Corporation
Summary Corporate Financial Results
(Unaudited)

		Second Quarter				Year to Date
		2006		2005		2006		2005
Book value per share of common stocks at June 30
GM $1-2/3 par value		$	20.93	$	42.17
Auto & Other total cash & marketable securities at June 30 ($Bil’s)		$	20.1	$	16.0
Readily-available assets in VEBA		$	2.8	$	4.2
Total Auto & Other cash & marketable securities plus readily-available assets in VEBA		$	22.9	$	20.2
Auto & Other Operations ($Mil’s)
Depreciation		$	1,077	$	1,292	$	2,191	$	2,562
Amortization of special tools			1,112		803		1,845		1,619
Amortization of intangible assets			15		13		29		23
Total		$	2,204	$	2,108	$	4,065	$	4,204
GM’s share of nonconsolidated affiliates’ net income (loss)
($Mil’s) Italy *	NA			$	11	NA		$	32
Japan +		NA		$	45	$	21	$	95
China		$	100	$	99	$	170	$	132
South Korea #		NA		$	25	NA		$	17

*	During the second quarter of 2005, GM and Fiat S.p.A. completed the liquidation and termination of all joint ventures between them in existence at that time. As a result, GM regained complete ownership of all assets it originally contributed to each joint venture.
+	GM sold its investment in FHI in the fourth quarter of 2005. GM sold most of its investment in Suzuki in the first quarter of 2006, and consequently now accounts for its remaining investment as an equity security, and no longer records income on the equity basis.
#	Effective for the second quarter 2005, the results of GM Daewoo’s operations are consolidated by GM.

15

General Motors Corporation
Summary Corporate Financial Results
(Unaudited)

Second Quarter
2006 and 2005

	Reported						Special Items					Adjusted
(Dollars in millions)	2006			2005			2006			2005		2006			2005
Total net sales and revenues
GMNA (2)	$	28,590		$	26,999		$	—		$	—	$	28,590		$	26,999
GME (2)		8,743			8,589			—			—		8,743			8,589
GMLAAM		3,820			2,935			—			—		3,820			2,935
GMAP		4,091			1,922			(311	)		—		3,780			1,922
Total GMA		45,244			40,445			(311	)		—		44,933			40,445
Other(3)		(331	)		(267	)		—			—		(331	)		(267	)
Total Auto & Other		44,913			40,178			(311	)		—		44,602			40,178
GMAC		9,442			8,319			—			—		9,442			8,319
Other Financing(3)		40			(28	)		—			—		40			(28	)
Total FIO		9,482			8,291			—			—		9,482			8,291
Total net sales and revenues	$	54,395		$	48,469		$	(311	)	$	—	$	54,084		$	48,469
Income (loss) before income taxes, equity income, and minority interests
GMNA	$	(6,164	)	$	(1,334	)	$	5,932		$	—	$	(232	)	$	(1,334	)
GME		(83	)		(160	)		274			186		191			26
GMLAAM		158			47			16			—		174			47
GMAP		396			(805	)		(311	)		813		85			8
Total GMA		(5,693	)		(2,252	)		5,911			999		218			(1,253	)
Other		(409	)		(381	)		—			—		(409	)		(381	)
Total Auto & Other		(6,102	)		(2,633	)		5,911			999		(191	)		(1,634	)
GMAC		1,331			1,243			—			—		1,331			1,243
Other Financing		(431	)		(15	)		433			—		2			(15	)
Total FIO		900			1,228			433			—		1,333			1,228
Total income (loss) before income taxes, equity income, and minority interests	$	(5,202	)	$	(1,405	)	$	6,344		$	999	$	1,142		$	(406	)

See footnotes on page 23.

16

General Motors Corporation
Summary Corporate Financial Results
(Unaudited)

Second Quarter
2006 and 2005

(Dollars in millions)	Reported						Special Items						Adjusted
	2006			2005			2006			2005			2006			2005
Net income (loss)
GMNA (2)	$	(3,941	)	$	(1,137	)	$	3,856		$	—		$	(85	)	$	(1,137	)
GME (2)		(58	)		(96	)		182			126			124			30
GMLAAM		140			25			16			—			156			25
GMAP		379			(605	)		(212	)		788			167			183
Total GMA		(3,480	)		(1,813	)		3,842			914			362			(899	)
Other		(108	)		18			—			(158	)		(108	)		(140	)
Total Auto & Other		(3,588	)		(1,795	)		3,842			756			254			(1,039	)
GMAC		898			816			—			—			898			816
Other Financing		(489	)		(8	)		490			—			1			(8	)
Total FIO		409			808			490			—			899			808
Net income (loss)	$	(3,179	)	$	(987	)	$	4,332		$	756		$	1,153		$	(231	)
Income tax expense (benefit)
GMNA	$	(2,145	)	$	(212	)	$	2,076		$	—		$	(69	)	$	(212	)
GME		(19	)		(53	)		92			60			73			7
GMLAAM		17			24			—			—			17			24
GMAP		105			(28	)		(99	)		25			6			(3	)
Total GMA		(2,042	)		(269	)		2,069			85			27			(184	)
Other		(300	)		(396	)		—			158			(300	)		(238	)
Total Auto & Other		(2,342	)		(665	)		2,069			243			(273	)		(422	)
GMAC		429			427			—			—			429			427
Other Financing		58			(7	)		(57	)		—			1			(7	)
Total FIO		487			420			(57	)		—			430			420
Income tax expense (benefit)	$	(1,855	)	$	(245	)	$	2,012		$	243		$	157		$	(2	)

See footnotes on page 23.

17

General Motors Corporation
Summary Corporate Financial Results
(Unaudited)

Second Quarter
2006 and 2005

(Dollars in millions)	Reported						Special Items						Adjusted
	2006			2005			2006			2005			2006			2005
Effective tax rate
Total GM Corp.		36	%		17	%		32	%		24	%		14	%		1	%
GMNA		35	%		16	%		35	%		—			30	%		16	%
GME		23	%		33	%		34	%		32	%		38	%		27	%
GMAC		32	%		34	%		—			—			32	%		34	%
Equity income (loss) and minority interests
GMNA	$	78		$	(15	)	$	—		$	—		$	78		$	(15	)
GME		6			11			—			—			6			11
GMLAAM		(1	)		2			—			—			(1	)		2
GMAP		88			172			—			—			88			172
Total GMA	$	171		$	170		$	—		$	—		$	171		$	170

18

General Motors Corporation
Summary Corporate Financial Results
(Unaudited)

Year to Date
2006 and 2005

	Reported						Special Items					Adjusted
(Dollars in millions)	2006			2005			2006			2005		2006			2005
Total net sales and revenues
GMNA (2)	$	57,121		$	52,226		$	—		$	—	$	57,121		$	52,226
GME (2)		16,834			16,697			—			—		16,834			16,697
GMLAAM		6,960			5,234			—			—		6,960			5,234
GMAP		8,024			3,616			(850	)		—		7,174			3,616
Total GMA		88,939			77,773			(850	)		—		88,089			77,773
Other		(636	)		(292	)		—			—		(636	)		(292	)
Total Auto & Other		88,303			77,481			(850	)		—		87,453			77,481
GMAC		18,264			16,540			—			—		18,264			16,540
Other Financing		73			221			—			—		73			221
Total FIO		18,337			16,761			—			—		18,337			16,761
Total net sales and revenues	$	106,640		$	94,242		$	(850	)	$	—	$	105,790		$	94,242
Income (loss) before income taxes, equity income, and minority interests
GMNA	$	(6,784	)	$	(3,546	)	$	5,996		$	357	$	(788	)	$	(3,189	)
GME		(8	)		(1,020	)		337			857		329			(163	)
GMLAAM		238			102			43			—		281			102
GMAP		1,030			(828	)		(941	)		813		89			(15	)
Total GMA		(5,524	)		(5,292	)		5,435			2,027		(89	)		(3,265	)
Other		(932	)		(793	)		4			13		(928	)		(780	)
Total Auto & Other		(6,456	)		(6,085	)		5,439			2,040		(1,017	)		(4,045	)
GMAC		2,255			2,403			—			—		2,255			2,403
Other Financing		(429	)		(17	)		433			—		4			(17	)
Total FIO		1,826			2,386			433			—		2,259			2,386
Total income (loss) before income taxes, equity income, and minority interests	$	(4,630	)	$	(3,699	)	$	5,872		$	2,040	$	1,242		$	(1,659	)

See footnotes on page 23.

19

General Motors Corporation
Summary Corporate Financial Results
(Unaudited)

Year to Date
2006 and 2005

	Reported						Special Items						Adjusted
(Dollars in millions)	2006			2005			2006			2005			2006			2005
Net income (loss)
GMNA	$	(4,444	)	$	(2,874	)	$	3,897		$	224		$	(547	)	$	(2,650	)
GME		(10	)		(610	)		222			548			212			(62	)
GMLAAM		169			56			43			—			212			56
GMAP		832			(535	)		(584	)		788			248			253
Total GMA		(3,453	)		(3,963	)		3,578			1,560			125			(2,403	)
Other		(328	)		186			3			(539	)		(325	)		(353	)
Total Auto & Other		(3,781	)		(3,777	)		3,581			1,021			(200	)		(2,756	)
GMAC		1,535			1,544			—			—			1,535			1,544
Other Financing		(488	)		(7	)		490			—			2			(7	)
Total FIO		1,047			1,537			490			—			1,537			1,537
Net income (loss)	$	(2,734	)	$	(2,240	)	$	4,071		$	1,021		$	1,337		$	(1,219	)
Income tax expense (benefit)
GMNA (2)	$	(2,264	)	$	(718	)	$	2,099		$	133		$	(165	)	$	(585	)
GME (2)		10			(386	)		115			309			125			(77	)
GMLAAM		67			49			—			—			67			49
GMAP		342			(38	)		(357	)		25			(15	)		(13	)
Total GMA		(1,845	)		(1,093	)		1,857			467			12			(626	)
Other		(602	)		(970	)		1			552			(601	)		(418	)
Total Auto & Other		(2,447	)		(2,063	)		1,858			1,019			(589	)		(1,044	)
GMAC		727			856			—			—			727			856
Other Financing		59			(10	)		(57	)		—			2			(10	)
Total FIO		786			846			(57	)		—			729			846
Income tax expense (benefit)	$	(1,661	)	$	(1,217	)	$	1,801		$	1,019		$	140		$	(198	)

See footnotes on page 23.

20

General Motors Corporation
Summary Corporate Financial Results
(Unaudited)

Year to Date
2006 and 2005

	Reported						Special Items						Adjusted
(Dollars in millions)	2006			2005			2006			2005			2006			2005
Effective tax rate
Total GM Corp.		36	%		33	%		31	%		50	%		11	%		12	%
GMNA		33	%		20	%		35	%		37	%		21	%		18	%
GME		(125	)%		38	%		34	%		36	%		38	%		47	%
GMAC		32	%		36	%		—			—			32	%		36	%
Equity income (loss) and minority interests
GMNA	$	76		$	(46	)	$	—		$	—		$	76		$	(46	)
GME		8			24			—			—			8			24
GMLAAM		(2	)		3			—			—			(2	)		3
GMAP		144			255			—			—			144			255
Total GMA	$	226		$	236		$	—		$	—		$	226		$	236

21

General Motors Corporation
Operating Statistics

	Second Quarter						Year to Date
(Units in thousands)	2006			2005			2006			2005
Worldwide Production Volume
GMNA — Cars		462			458			958			928
GMNA — Trucks		775			789			1,534			1,501
Total GMNA		1,237			1,247			2,492			2,429
GME		502			501			996			1,003
GMLAAM		207			195			401			380
GMAP		489			398			961			733
Total Worldwide		2,435			2,341			4,850			4,545
Vehicle Unit Deliveries
Chevrolet — Cars		227			244			422			463
Chevrolet — Trucks		434			549			810			946
Pontiac		105			114			204			214
GMC		129			185			234			308
Buick		63			88			125			149
Oldsmobile		0			1			0			1
Saturn		56			56			103			104
Cadillac		60			72			111			122
Other		30			28			58			46
Total United States		1,104			1,337			2,067			2,353
Canada, Mexico, and Other		190			201			353			367
Total GMNA		1,294			1,538			2,420			2,720
GME		547			554			1,071			1,068
GMLAAM		245			226			476			409
GMAP		314			281			637			513
Total Worldwide		2,400			2,599			4,604			4,710
Market Share
United States — Cars		20.0	%		23.5	%		20.3	%		23.4	%
United States — Trucks		27.9	%		31.3	%		27.1	%		29.4	%
Total United States		24.2	%		27.8	%		24.0	%		26.7	%
Total North America		24.0	%		27.3	%		23.8	%		26.4	%
Total Europe		9.3	%		9.6	%		9.3	%		9.7	%
Total LAAM		17.5	%		17.6	%		17.2	%		16.5	%
Asia and Pacific		6.7	%		6.2	%		6.5	%		5.6	%
Total Worldwide		13.8	%		15.1	%		13.5	%		14.3	%
U.S. Retail/Fleet Mix
% Fleet Sales — Cars		33.7	%		34.7	%		37.4	%		36.9	%
% Fleet Sales — Trucks		24.4	%		17.2	%		23.5	%		17.6	%
Total Vehicles		28.1	%		23.8	%		29.0	%		25.1	%
GMNA Capacity Utilization
(2 shift rated, annualized)		96.6	%		92.7	%		97.6	%		90.1	%

22

General Motors Corporation
Operating Statistics

	Second Quarter						Year to Date
	2006			2005			2006			2005
GMAC’s Worldwide Cost of Borrowing (4)		5.79	%		4.60	%		5.60	%		4.45	%
GMAC Period End Debt Spreads Over U.S. Treasuries (bps)
2 Year	300 bp			325 bp
5 Year	370 bp			485 bp
10 Year	390 bp			480 bp
GMAC Cash Reserve Balance
($Bil’s) (5)	$	22.7		$	22.2
GMAC Automotive Finance Operations Consumer credit (North America)
Net charge-offs as a % of managed receivables		0.89	%		0.90	%		0.99	%		0.93	%
Retail contracts 30 days delinquent — % of average number of contracts outstanding (6)		2.38	%		1.94	%		2.35	%		2.02	%
Share of GM retail sales (U.S. only)
Total consumer volume (retail and lease) as % of retail sales		39	%		37	%		42	%		44	%
SmartLease as % of retail sales		19	%		16	%		21	%		16	%
Off-lease vehicle remarketing (U.S. only)
Sales proceeds on scheduled lease terminations (36-month) per vehicle (7)	$	13,160		$	13,526		$	13,408		$	13,609
Off-lease vehicles terminated (units in 000s)		69			84			139			156
ResCap ($Bils)
Origination volume ($billions)	$	47.0		$	42.6		$	88.6		$	79.0
Mortgage servicing rights, net	$	5.1		$	3.2
GMAC Insurance Operations ($Mil’s)
Combined ratio (8)		96.2	%		94.4	%		93.8	%		94.1	%
Premiums / revenue written	$	1,030		$	1,038		$	2,131		$	2,156
Investment portfolio market value	$	7,738		$	7,526
After-tax net unrealized capital gains	$	545		$	528

See footnotes on page 23.

23

General Motors Corporation

	2006		2005
Worldwide Employment at June 30 (in 000’s)
United States Hourly		103		109
United States Salary		34		36
Total United States		137		145
Canada, Mexico, and Other		30		32
GMNA		167		177
GME (9)		63		58
GMLAAM		32		32
GMAP (10)		34		14
GMAC		31		34
Other		2		4
Total		329		319
Worldwide Payrolls ($Bil’s)	$	5.4	$	5.2	$	10.7	$	10.5

Footnotes:

(1)	This amount is comparable to First Call analysts’ consensus.
(2)	Effective January 1, 2006, four powertrain entities were transferred from GMNA to GME for management reporting. Accordingly, second quarter 2005 amounts have been revised for comparability by reclassifying $126 million of revenue and $16 million of net income from GMNA to GME. Year to date 2005 amounts have been revised by reclassifying $277 million of revenue and $49 million of net income from GMNA to GME.
(3)	Other Operations and Other Financing include intercompany eliminations.
(4)	Calculated by dividing total interest expense (excluding mark to market adjustments) by total debt.
(5)	Balance at June 30, 2006 comprises $17.2 billion of cash and cash equivalents and $5.5 billion in marketable securities with maturities greater than 90 days. Balance at June 30, 2005 comprises $19.7 billion of cash and cash equivalents and $2.5 billion in marketable securities with maturities greater than 90 days.
(6)	Excludes accounts in bankruptcy.
(7)	Prior period amounts based on current vehicle mix, in order to be comparable.
(8)	Calculated as the sum of all reported losses and expenses (excluding interest and income tax expense) divided by the total of premiums and service revenues earned and other income.
(9)	Approximately 7,000 employees were added in the fourth quarter of 2005 from a former powertrain joint venture with Fiat.
(10)	Approximately 13,000 employees were added as a result of the GM Daewoo consolidation in the third quarter of 2005.

24

GENERAL MOTORS CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2006			2005			2006			2005
	(dollars in millions except per share amounts)
Total net sales and revenues	$	54,395		$	48,469		$	106,640		$	94,242
Cost of sales and other expenses		48,300			40,730			90,212			80,229
Selling, general, and administrative expenses		5,558			5,432			11,090			10,321
Loss on controlling interest in GMAC — held for sale		1,208			—			1,208			—
Interest expense		4,531			3,712			8,760			7,391
Total costs and expenses		59,597			49,874			111,270			97,941
Loss before income tax benefit, equity income and minority interests		(5,202	)		(1,405	)		(4,630	)		(3,699	)
Income tax benefit		(1,855	)		(245	)		(1,661	)		(1,217	)
Equity income (loss) and minority interests		168			173			235			242
Net loss	$	(3,179	)	$	(987	)	$	(2,734	)	$	(2,240	)
Basic loss per share attributable to common stock	$	(5.62	)	$	(1.75	)	$	(4.83	)	$	(3.96	)
Loss per share attributable to common stock, assuming dilution	$	(5.62	)	$	(1.75	)	$	(4.83	)	$	(3.96	)

25

GENERAL MOTORS CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION TO THE
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2006			2005			2006			2005
				(dollars in millions)
AUTOMOTIVE AND OTHER OPERATIONS
Total net sales and revenues	$	44,913		$	40,178		$	88,303		$	77,481
Cost of sales and other expenses		46,851			38,720			86,365			75,866
Selling, general, and administrative expenses		3,284			3,320			6,684			6,157
Total costs and expenses		50,135			42,040			93,049			82,023
Interest expense		723			671			1,407			1,356
Net expense from transactions with Financing and Insurance Operations		157			100			303			187
Loss before income taxes, equity income, and minority interests		(6,102	)		(2,633	)		(6,456	)		(6,085	)
Income tax benefit		(2,342	)		(665	)		(2,447	)		(2,063	)
Equity income and minority interests		172			173			228			245
Net loss – Automotive and Other Operations	$	(3,588	)	$	(1,795	)	$	(3,781	)	$	(3,777	)
FINANCING AND INSURANCE OPERATIONS
Total revenues	$	9,482		$	8,291		$	18,337		$	16,761
Interest expense		3,808			3,041			7,353			6,035
Depreciation and amortization expense		637			1,404			2,148			2,802
Operating and other expenses		2,148			1,921			4,435			4,010
Loss on controlling interest in GMAC — held for sale		1,208			—			1,208			—
Provisions for financing and insurance losses		938			797			1,670			1,715
Total costs and expenses		8,739			7,163			16,814			14,562
Net income from transactions with Automotive and Other Operations		(157	)		(100	)		(303	)		(187	)
Income before income taxes, equity income, and minority interests		900			1,228			1,826			2,386
Income tax expense		487			420			786			846
Equity income (loss) and minority interests		(4	)		—			7			(3	)
Net income – Financing and Insurance Operations	$	409		$	808		$	1,047		$	1,537

26

GENERAL MOTORS CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

	June 30,			December 31,			June 30
	2006			2005			2005
	(Dollars in millions)
ASSETS
Cash and cash equivalents	$	22,845		$	30,726		$	32,261
Marketable securities		314			19,726			23,013
Total cash and marketable securities		23,159			50,452			55,274
Finance receivables — net		4,284			180,793			178,137
Loans held for sale		—			21,865			26,903
Accounts and notes receivable (less allowances)		10,691			15,578			18,465
Inventories (less allowances)		14,449			14,354			13,350
Assets held for sale		274,294			19,030			—
Deferred income taxes		32,528			29,889			27,910
Net equipment on operating leases — (less accumulated depreciation)		23,425			38,187			36,076
Equity in net assets of nonconsolidated affiliates		1,901			3,291			4,156
Property — net		39,772			40,214			40,325
Intangible assets — net		1,662			4,339			4,947
Other assets		44,541			58,086			60,458
Total assets	$	470,706		$	476,078		$	466,001
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable (principally trade)	$	27,697		$	29,913		$	28,694
Notes and loans payable		45,378			285,750			283,621
Liabilities related to assets held for sale		267,551			10,941			—
Postretirement benefits other than pensions		35,675			33,997			30,592
Pensions		15,793			11,304			9,712
Deferred income taxes		3,724			4,477			6,632
Accrued expenses and other liabilities		61,967			84,060			82,002
Total liabilities		457,785			460,442			441,253
Minority interests		1,081			1,039			902
Stockholders’ equity
$1 2/3 par value common stock (outstanding, 565,607,779; 565,518,106; and 565,503,422 shares)		943			943			943
Capital surplus (principally additional paid-in capital)		15,306			15,285			15,255
Retained earnings		(669	)		2,361			11,252
Subtotal		15,580			18,589			27,450
Accumulated foreign currency translation adjustments		(1,679	)		(1,722	)		(1,645	)
Net unrealized gains on derivatives		1,149			733			331
Net unrealized gains on securities		633			786			687
Minimum pension liability adjustment		(3,843	)		(3,789	)		(2,977	)
Accumulated other comprehensive loss		(3,740	)		(3,992	)		(3,604	)
Total stockholders’ equity		11,840			14,597			23,846
Total liabilities and stockholders’ equity	$	470,706		$	476,078		$	466,001

EX-99.2

Exhibit 99.2

Preliminary 2006 Second Quarter Results

Forward Looking Statements 1 In this chart presentation and in related comments by General Motors' management, we will use words like "expect," "anticipate," "estimate," "forecast," "initiative," "objective," "plan," "goal," "project," "outlook," "priorities," "target," "intend," "evaluate," "pursue," "seek," "may," "would," "could," "should," "believe," "potential," "continue," "designed," or "impact" to identify forward-looking statements that represent our current judgments about possible future events. We believe these judgments are reasonable, but GM's actual results may differ materially due to a variety of important factors. Among other items, such factors might include: our ability to achieve reductions in costs as a result of the turnaround restructuring, health care cost reductions and an accelerated attrition program, to realize production efficiencies and to implement capital expenditures at levels and times planned by management; the pace of product introductions and market acceptance of our new products; changes in the competitive environment and the effect of competition in our markets, including on our pricing policies; our ability to maintain adequate liquidity and financing sources and an appropriate level of debt; restrictions on GMAC's and ResCap's ability to pay dividends and prepay subordinated debt obligations to us; the final results of investigations and inquiries by the SEC and other government agencies; changes in relations with unions and employees/retirees and the legal interpretations of the agreements with those unions with regard to employees/retirees; our ability to complete the timely sale of a 51-percent controlling interest in GMAC and the effect of that sale on the results of GM's and GMAC's operations and liquidity; labor strikes or work stoppages at GM or its key suppliers such as Delphi Corporation or financial difficulties at those key suppliers; negotiations and bankruptcy court actions with respect to our relationship with Delphi; additional credit rating downgrades and their effects; costs and risks associated with litigation; new or amended laws, regulations, policies or other activities of governments, agencies and similar organizations; price increases or shortages of fuel; changes in economic conditions, commodity prices, currency exchange rates or political stability in the markets in which we operate; and 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 its mortgage subsidiaries operate, and changes in its contractual servicing rights. In addition to these factors, a variety of other factors may materially affect GMAC's actual results, including: changes in the competitive environment and the effect of competition in GMAC's markets, including GMAC's pricing policies; GMAC's ability to maintain adequate financing sources and an appropriate level of debt; the profitability and financial condition of GM, including changes in production or sales of GM vehicles and risks based on GM's contingent benefit guarantees; changes in GMAC's 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; and the threat of natural calamities. The most recent annual reports on Form 10-K and quarterly reports on Form 10-Q filed by GM and GMAC provide information about these factors, which may be revised or supplemented in future reports to the SEC on those forms or on Form 8-K. We caution investors not to place undue reliance on forward-looking statements, and do not undertake any obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events or other such factors that affect the subject of these statements, except where expressly required by law.

2006 Second Quarter Highlights Second consecutive quarter of record revenue - $54.4B GAAP EPS ($5.62), ($3,179) million Net Loss driven primarily by charges related to GM/UAW/Delphi accelerated attrition program Adjusted EPS $2.03, $1,153 million Adjusted Net Income represents $1,384 million improvement vs. Q2 '05 Adjusted results Automotive operations profitable on an adjusted basis GMNA improved by over $1B vs. Q2 '05 as cost savings actions gain additional traction Significant improvements again in GME and GMLAAM Continued strength in GMAP Continued strong profitability at GMAC Positive cashflow of $1.3B in quarter improved automotive liquidity to $22.9B, including $2.8B readily available VEBA assets 2

Second Quarter Adjusted Results - Net Income 3 Refer to Supplemental Chart 1 for reconciliation to GAAP figures Refer to Supplemental Chart 1 for reconciliation to GAAP figures

Second Quarter Adjustments to Income 4 Exclusion of special items useful for: - Management to measure operations - Comparisons between reporting periods - Investors to measure and assess company performance - Investors to measure and assess company performance - Investors to measure and assess company performance - Investors to measure and assess company performance - Investors to measure and assess company performance

GMAC Loss on Sale 5 When GM announced sale of 51% controlling interest in GMAC, transaction expected to generate $1.1 - 1.3B pre-tax loss on sale Represents writedown of 51% of goodwill since transaction based on tangible book value Q2 special item of $490 million after-tax includes the effect of Other Comprehensive Income (OCI) related to unrealized gains on GMAC marketable securities, as well as tax effects of the transaction $millions Principally goodwill (1,199) 51% of OCI 766 Net writedown (pre-tax) (433) Tax Impact (57) Total Charge (490) For GAAP accounting purposes, GM required to cease depreciation on assets held for sale, offset by an impairment on GMAC operating lease assets Total Loss on Sale in GAAP income statement will total $1.2B including $0.8B operating lease asset impairment Offset by $0.8B lower depreciation in operating results (zero net P&L impact)

Special Attrition Program Impact 6 GM/UAW/Delphi special attrition program announced March 22 Retirement/separation incentives offered to all UAW hourly employees Similar provisions offered to IUE-CWA represented workers Initial GM results of 35,000 acceptances announced June 26 Final results now available - total acceptances of 34,410 29,945 retirements; 4,465 separations Special charges of $3.7B after-tax recognized in Q2 as result of final program results, comprised of three elements $1.4B after-tax for cash payments to employees $2.9B after-tax for recognition of pension expense accruals for employees retiring early Favorable offset of $0.6B after-tax for reduction in capacity action charges taken in Q4 2005 due to lower than anticipated JOBS expense Additional charges of approximately $0.2B after-tax anticipated in Q3 for OPEB accruals related to employees retiring earlier than anticipated

Special Attrition Program Impact Pension/OPEB Remeasurements 7 GM remeasured its U.S. hourly pension plan as of April 30, 2006 as a result of the accelerated attrition program As a result of this remeasurement, CY06 pension expense reduced by $0.7B Drivers of pension expense change following remeasurement include: Increase in discount rate versus the YE 2005 estimate Asset returns during first four months of 2006 favorable vs. assumptions Lower unrecognized prior service cost Increased average service life for remaining employees

Other Pension/OPEB Remeasurements 8 GM is also remeasuring its U.S. hourly health care plan due to the attrition program and, as previously disclosed, several of its U.S. pension and OPEB plans due to plan amendments: Total pension/OPEB savings, including impact of the special attrition program, is approximately $5B on an annualized basis, with approximately $3B expected to be realized in CY06

North America Second Quarter Adjusted Results 9 9

GMNA Vehicle Revenue Per Unit Calendar Year Second Quarter Net Revenue Gross Revenue Less Sales Incentives Memo: Vehicle Revenue per Unit excludes such items as impact of daily rental acctg., Service Parts, other outside sales and OnStar Reported Rev/Unit 20,899 20,321 20,777 20,875 20,540 20,632 19,638 20,413 20,352 20,673 21,859 10 Refer to Supplemental Chart 2 for reconciliation to GAAP figures

North America Adjusted Net Income Q2 2005 vs. Q2 2006 Q2 2005 Net Income ($1.1)B Warranty/Quality 0.3 Pension-OPEB 0.3 Other Structural Cost 0.5 Contribution Margin (0.1) Q2 2006 Net Income ($0.1)B 11 Favorable contribution margin impact of higher revenue/unit mitigated by higher material and freight costs

Steady cadence of turnaround actions Oct 2005: GM/UAW Retiree Health Care Agreement reached Nov 2005: Manufacturing Capacity Actions announced Feb 2006: U.S. Salaried Retiree Health Care revisions Feb 2006: Shared Sacrifice actions Mar 2006: U.S. Salaried Pension Plan revisions Mar 2006: GM/UAW/Delphi Accelerated Attrition announcement Jun 2006: GM/UAW/IUE Accelerated Attrition results Additional actions to strengthen liquidity and fund turnaround Sale of equity stakes in FHI, Isuzu, Suzuki Announced sale of majority stake in GMAC Amendment/restatement of revolving credit facility GMNA Turnaround Actions 12

Structural Cost Reduction in North America* 2006 CY 13 * Includes North American costs accounted for in Corp Sector * Includes North American costs accounted for in Corp Sector 2006 CY pre-tax Savings of about $6B ($ Billion) Q1 Average Annual Run-rate of about $9B by end of 2006 Q2 Q3 Q4 1H06 about $1.5B 2H06 about $4.5B

Europe Second Quarter Adjusted Results 14 14

Latin America, Africa & Middle East Second Quarter Adjusted Results 15 15

Asia Pacific Second Quarter Adjusted Results 16 2006 Results reflect full consolidation of GM-DAT revenue and income. 2006 Results reflect full consolidation of GM-DAT revenue and income.

GMAC Second Quarter Net Income 17 Note: Amounts are presented on the basis reported by GM, which may differ from those reported by GMAC during the comparable periods reported by GMAC during the comparable periods reported by GMAC during the comparable periods reported by GMAC during the comparable periods

GMAC Global Liquidity GMAC continues to have access to large liquidity cushion Cash balance of $22.7B* at June 30, 2006 Over $50B of unutilized bank lines and conduit capacity Renewed two global syndicated bank facilities totaling more than $21B Multi-year committed auto whole loan facilities with Bank of America and Bank of Nova Scotia with $48B of unutilized commitments Over $11B of U.S. retail automotive whole loan sales completed YTD 2006 ResCap has maintained its investment grade credit rating and continues to have good access to various forms of funding Raised over $12B of unsecured debt and $4B in bank credit facilities in the last 12 months Conservative funding position will be maintained until closing * Includes $5.5B in cash invested in a portfolio of highly liquid marketable securities 18

GMAC Outlook Following the closing of the transaction, GMAC anticipates improved access to lower-cost capital to support profitable growth initiatives Expand auto financing activities to non-GM dealerships Increase used vehicle financing volume Further expand ResCap and Insurance international operations Leverage cross-selling opportunities Pursue fee-based business opportunities 19

GMAC Transaction Closing Status 20 Continue to expect the sale of a 51% controlling interest in GMAC to the Cerberus-led consortium will close in the 4th Quarter 2006 A number of key closing conditions have now been satisfied The consortium has advised that the PBGC condition has been satisfied Cerberus granted U.S. FTC anti-trust approval for the transaction

GM Liquidity Position Automotive liquidity improved to $22.9B* Additionally, $15.6B VEBA assets available to fund healthcare costs Additionally, recently completed capital markets transactions further enhance GM's available liquidity position Completed amendment and restatement of GM's revolving credit facility, which provides $4.6B of available liquidity $4.5B secured revolver facility matures in 2011 $0.1B unsecured revolver facility matures in 2008 Intended to be drawn from time to time for seasonal working capital and other needs Also completed renewal and new placement of securitization facilities which provide up to $1.35B of liquidity * Includes $2.8B in readily-available VEBA assets (i.e., short-term VEBA) 21

Q4'00 Q4'01 Q1'02 Q2'02 Q3'02 Q4'02 Q1'03 Q2'03 Q3'03 Q4'03 Q1'04 Q2'04 Q3'04 Q4'04 Q1'05 Q2 '05 Q3 '05 Q4 '05 Q1 '06 Q2 '06 Net Liquidity 5.2 4.8 4.8 3.5 -0.7 0.8 1.8 2.5 1.1 4.2 6.5 -2.4 -5.5 -8.9 -7.4 -8.2 -9.2 -12.5 -12.375 -13.2 -12.1 -10.6 -9.6 Gross Cash 13.2 13 13.3 11.8 11.5 17.3 17.6 18.2 17.3 20.6 23.7 29.3 26.9 23.5 25 24.5 23.3 19.8 20.231 19.2 20.4 21.6 22.9 17.3 17.3 18.7 20.1 21.5 23 24.2 $ Billions Gross / Net Liquidity 2 1,2 1 Cash, Mkt. Securities & ST VEBA 2 Excluding Financing Operations 22

Automotive Cash Flow Summary Refer to Supplemental Chart 4 for reconciliation to GAAP Operating Cash Flow 23

Summary Record quarterly revenue of $54.4B Automotive operations profitable, including over $1B improvement in GMNA results Positive cashflow in Q2, with automotive liquidity improved further to $22.9B Additional turnaround milestones achieved in Q2: Better than expected results achieved for GM attrition program Isuzu sale announced Revolving credit facility successfully amended and restated Encouraging progress; intense focus remains on continued execution of turnaround plan into back half of year 24

What's Next Support successful resolution of Delphi Execute implementation of accelerated special attrition program Continue toward successful closure of GMAC transaction Maintain improving trends in earnings, cash flow, and liquidity Reduce structural cost from approximately 34% of automotive revenue to 25% by 2010 Evaluate potential synergies associated with a Renault- Nissan alliance 25

Supplemental Charts The following supplemental charts are provided to reconcile adjusted financial data comprehended in the primary chart set with GAAP-based data (per GM's financial statements) and/or provide clarification with regard to definition of non-GAAP terminology

Reconciliation to Adjusted Net Revenue, Net Income / EPS Q2 - 2005 & 2006 S1 S1

Reconciliation of GMNA Revenue Per Unit Q2 2006 S2 S2 a). For GAAP reporting purposes, sales to other GM regions are eliminated whereas they are retained for managerial vehicle analysis b). Includes SPO parts, Powertrain engines, MSP, and Onstar service outside sales- excluded from managerial vehicle analysis c). Includes Interest Income, Daily Rental Income, and GM Credit Card Income- excluded from managerial vehicle analysis d). For GAAP reporting purposes, Daily Rental sales are eliminated whereas they are retained for managerial vehicle analysis

Reconciliation of GMAC Loss on Sale Q2 2006 S3 (a) - For GAAP reporting purposes, impairment on operating lease assets included as part of overall Loss on controlling interest in GMAC held for sale. Pursuant to Statement of Financial Accounting Standards No. 144 , the company is required to cease depreciation on assets held for sale. Accordingly pre tax income in the second quarter was $775 million higher (as reported in Cost of sales and other expenses), however the benefits of that ceased depreciation are not recoverable at closing. Since the operating lease asset impairment portion of the reported loss on sale offsets the favorable benefits of ceased depreciation, the amount has been excluded from the managerial analysis.

Reconciliation of Automotive Cashflow Q2 - 2005 & 2006, CYTD - 2005 & 2006 S4

Use of Non-GAAP Financial Measures The preceding charts include the following non-GAAP financial measures: (a) adjusted net income, (b) GMAC loss on sale, (c) GM North America vehicle revenue per unit, and (d) automotive cash flow. Each of these financial measures excludes the impact of certain items and therefore has not been calculated in accordance with U.S. generally accepted accounting principles, or GAAP. Adjusted Net Income Adjusted net income excludes a charge for the special attrition program agreement, restructuring and impairments charges, and gains and losses on the sale of businesses and business interests. Each of the adjustments is described in more detail below. Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our operating results because they exclude amounts that GM management does not consider part of operating results when assessing the performance of the organization and measuring the results of GM's performance. In addition, GM has historically reported similar non-GAAP financial measures. GM believes that inclusion of these non-GAAP financial measures provides consistency and comparability with past earnings releases. GM management uses these non-GAAP financial measures to evaluate GM's performance and believes these measures allow GM management to readily view operating trends, perform analytical comparisons, benchmark performance among geographic regions and assess whether the GM North American structural cost turnaround plan is on target. Also, GM management uses adjusted net income for forecasting purposes, and in determining its future capital investment allocations. Also, adjusted net income is a key variable in determining management incentive compensation. Accordingly, GM believes these non-GAAP financial measures are useful to investors in allowing for greater transparency of supplemental information used by management in its financial and operational decision-making. While GM believes that these non-GAAP financial measures provide useful supplemental information, there are limitations associated with the use of these non-GAAP financial measures. These non-GAAP financial measures are not prepared in accordance with GAAP, do not reflect a comprehensive system of accounting and may not be completely comparable to similarly titled measures of other companies due to potential differences in the exact method of calculation between companies. Items such as special attrition program agreement and restructuring charges that are excluded from GM's non-GAAP financial measures can have a material impact on net earnings. As a result, these non-GAAP financial measures have limitations and should not be considered in isolation from, or as a substitute for, net earnings, cash flow from operations or other measures of performance prepared in accordance with GAAP. GM compensates for these limitations by using these non-GAAP financial measures as supplements to GAAP financial measures and by reviewing the reconciliations of the non-GAAP financial measures to their most comparable GAAP financial measure. Investors are encouraged to review the reconciliations of these non-GAAP financial measures to their most comparable GAAP financial measures as provided in this chart package. The following is a discussion of the adjustments to the comparable GAAP financial measure that produces our non-GAAP financial measures: Special attrition program charges. Our non-GAAP financial measures exclude the estimated charge associated with the special attrition program agreement among the UAW, GM and Delphi. Management believes it is useful in evaluating GM's and its management teams' and business units' performance during a particular time period to exclude charges associated with the special attrition program, because this irregular charge is generally associated with right sizing the GM North America business. Accordingly, management does not consider these costs as part of its core earnings for purposes of evaluating the performance of the business, and excludes such costs when evaluating the performance of the Corporation, its business units and its management teams and when making decisions to allocate resources among GM's business units.

Use of Non-GAAP Financial Measures Restructuring and impairment charges. Our non-GAAP financial measures exclude exit costs and related charges, primarily consisting of severance costs and lease abandonment costs, and any subsequent changes in estimates related to exit activities as they relate to GM's significant restructurings, which involved significant layoffs. Management believes the exclusion of restructuring and impairment charges from adjusted net income is useful because management does not consider these costs part of GM's core earnings in evaluating GM's operational managers and including the restructuring charges would hamper investors' ability to evaluate the performance of our management in the manner in which GM's management evaluates performance. Additionally, management excludes restructuring and impairment charges in its determinations regarding the allocation of resources, such as capital investment, among the Corporation's business units and as part of its forecasting and budgeting. Gains and losses on the sale of business units and business interests. The gains or losses on the sale of business units and business interests are excluded from adjusted net income. While GM is involved in sales of its business units and business interests from time to time and the Corporation may have significant gains or losses from such sales in the future, such events have historically occurred sporadically. Management excludes the charges associated with these events when it evaluates the Corporation's operations and for internal reporting, forecasting purposes and allocation of additional resources. Adjusted Operating Cash Flow GM also includes the use of non-GAAP automotive cash flow in its earnings releases and charts for securities analysts. Management believes that providing automotive cash flow furnishes it and investors with useful information by representing the cash flow generated or consumed by its automotive operations, including cash consumed by automotive capital expenditures and equity investments in companies related to our core business and cash generated by sales of automotive operating assets and equity investments in companies related to GM's core business, before funding non- operating-related obligations including debt maturities, dividends and other non-operating items. Management uses this non-GAAP financial measure to assess its automotive cash flow when evaluating the performance of GM, its business units and its management teams and when making decisions to allocate resources among GM's business units. GM North America Vehicle Revenue per Unit GM's earnings releases and charts for securities analysts also include the use of non-GAAP measures of revenue per vehicle. Management uses revenue per vehicle to track operating efficiency and to facilitate comparisons between periods and between manufacturers, and believes that it would provide valuable information to investors who are interested in identifying trends and comparing different companies. Revenue per vehicle includes certain sales to other GM regions that are excluded from GAAP reporting, and excludes non-vehicle sales such as service parts and operations and OnStar service and other income that GM does not derive from the sale of vehicles such as interest on the GM credit card. Management also includes sales to daily car rental companies in revenue per vehicle; although they are excluded from GAAP reporting because of GM's repurchase obligations.