PROSPECTUS SUPPLEMENT
                         DATED JULY 1, 1996
                          TO PROSPECTUS OF
               MOTORS MECHANICAL REINSURANCE COMPANY
                         DATED MAY 10, 1996


             On June 21, 1996, the shareholders of Motors
   Mechanical Reinsurance Company, Ltd. (the "Company") approved
   an amendment of the Company's Articles of Incorporation which
   changes the method described in paragraph 2 on pages 17-18 of
   the Company's Prospectus dated May 10, 1996 for allocating
   expenses and liabilities attributable to day-to-day Company
   operations among the series of shares outstanding.  Effective
   July 1, 1996, such expenses and liabilities, excluding United
   States Federal income taxes, will be allocated equally among
   all Subsidiary Capital Accounts in accordance with the number
   of series of Shares outstanding at the end of the fiscal
   quarter immediately preceding the fiscal quarter in which the
   expense or liability was incurred, provided that no such
   expenses or liabilities shall be allocated to a Subsidiary
   Capital Account for any portion of the Company's calendar year
   during which such Subsidiary Capital Account is established.