First quarter reported net loss of $6.0 billion
Results reflect continuation of global economic downturn and lower industry-wide sales volume
Losses partially offset by strong structural cost reduction due to aggressive restructuring efforts

DETROIT - General Motors today announced its financial results for the first quarter of 2009, which predominantly reflect the effects of continued global economic pressures and low auto industry volumes worldwide. Industry sales volume was down 21 percent globally in the first quarter versus the year-ago period, leading to significantly reduced volume and revenue for GM.

First Quarter
2009 2008 O/(U) 2008

Revenue (bils.): $22.4 $42.4 $(20.0)
Reported automotive EBIT (bils.): $(5.2) $0.5 $(5.7)
Adjusted automotive EBIT (bils.): $(3.9) $0.8 $(4.7)
Reported net income (bils.): $(6.0) $(3.3) $(2.7)
Adjusted net income (bils.): $(5.9) $(0.4) $(5.5)
Reported earnings per share (dollars): $(9.78) $(5.80) $(3.98)
Adjusted operating cash flow (bils.): $(10.2) $(3.1) $(7.1)

"Our first quarter results underscore the importance of executing GM's revised Viability Plan, which goes further and faster to lower our break-even point," said Fritz Henderson, president and chief executive officer. "Our Plan is designed to fix the fundamentals of our business by restructuring and deleveraging our balance sheet, enhancing our revenue capability and dramatically reducing costs. It's focused on taking care of customers every single day, winning with four core brands, and investing in new products and technology, while at the same time accelerating actions to lower our cost structure to return GM to profitability quickly."

GM posted a reported net loss of $6.0 billion, including special items, or $9.78 per share in the first quarter of 2009. This compares with a reported net loss of $3.3 billion, or $5.80 per share, in the year-ago quarter. Excluding special items, the company reported an adjusted net loss of $5.9 billion, or $9.66 per share, in the first quarter of 2009 compared to an adjusted net loss of $381 million, or $0.67 per share, in the first quarter of 2008.

The reported results for the first quarter of 2009 include special items and charges netting to a loss of $73 million. The special items include GM's $906 million gain on debt extinguishment and $385 million related to GM's portion of GMAC Financial Services' (GMAC) gain associated with the accounting on its debt extinguishment. These items were offset by charges of $116 million for restructuring, a charge of $822 million related to Saab filing for reorganization, and a charge of $291 million in GM North America (GMNA) related to asset impairments. Charges of $135 million were recorded for advances made under the Delphi Advance Agreement. A reserve was recorded to write-off the receivable as it is deemed uncollectable.

GM's revenue for the first quarter of 2009 was $22.4 billion, down 47 percent from $42.4 billion in the year-ago quarter. The drop in revenue was primarily due to GM's production volume decline of 903,000 units, or approximately 40 percent, on a global basis year-over-year.

Beginning in the first quarter of 2009 and reflected in this release, GM will report its automotive operations and regional results on an earnings-before-interest-and-taxes (EBIT) basis, with interest expense and income tax reported in the corporate sector.

GM Automotive Operations

GM recorded an adjusted automotive EBIT loss of $3.9 billion ($5.2 billion reported EBIT loss) in the first quarter 2009. The loss compares with adjusted automotive EBIT income of $808 million in the first quarter of 2008 (reported EBIT income of $484 million).

GM's automotive results in the first quarter of 2009 were driven by a revenue decline in all regions, due in part to a depressed global industry. In addition, GM's results were impacted by unfavorable foreign currency exchange and mark-to-market commodity hedging versus the year-ago quarter. However, these losses were partially offset by a significant structural cost improvement of $3.1 billion when compared to the first quarter of 2008.

Demonstrating its commitment to product and technology excellence, GM launched several new vehicles in the first quarter, including the fuel-efficient Chevrolet Cruze in China. In North America, GM began production of the reinvented Chevrolet Camaro, which offers 29 miles-per-gallon fuel economy on the highway. The company also launched the Chevrolet Captiva Sport with its new 2.4L engine in Brazil, and introduced the Cadillac CTS-V to the Middle East. The 2009 European Car of the Year, the Opel/Vauxhall Insignia, continued to ramp-up production and in its first full quarter of sales, and surpassed all competitors in the mid-size sedan segment in Europe.

GMNA

First Quarter
2009 2008 '09 O/(U) '08
Revenue (bils.) $12.3 $24.5 $(12.2)
Reported EBIT (bils.) $(3.2) $(.4) $(2.8)
Adjusted EBIT (bils.) $(2.8) $(.2) $(2.6)
GMNA Market Share 17.9% 21.7% (3.8) p.p.

GMNA revenue for the first quarter 2009 was $12.3 billion, down 50 percent compared to $24.5 billion in the year-ago period, mainly attributable to the impact of the U.S. recession on consumer spending. Earnings were affected by substantially lower production volume, down 58 percent year-over-year, due to the depressed industry, lower market share and adjustments to U.S. dealer inventory. GMNA managed its business in-line with lower industry demand by reducing U.S. dealer inventories by 105,000 units within the first quarter of 2009, from 872,000 units down to 767,000 units. GMNA's losses were partially offset by a reduction in the accrual for residual support programs for leased vehicles, primarily due to the improvement in residual values. In addition, GMNA significantly reduced engineering and manufacturing cost in the first quarter.

GME

First Quarter
2009 2008 '09 O/(U) '08
Revenue (bils.) $5.3 $9.9 $(4.6)
Reported EBIT (bils.) $(2.0) $0.1 $(2.1)
Adjusted EBIT (bils.) $(1.2) $0.2 $(1.4)
GME Market Share 8.9% 9.6% (0.7) p.p

GM Europe (GME) sales volume was up in Germany, as were industry sales, which were aided by aggressive government stimulus for the automotive sector. However, due to sales declines in other countries, GME experienced a 46 percent decline in production volume versus the year-ago quarter, which largely impacted regional earnings. In addition, GME experienced unfavorable foreign currency exchange, driven mainly by the weakening of the British Pound, and unfavorable mark-to-market commodity hedging. Results were partially offset by favorable mix and pricing, due in part to the success of the Opel/Vauxhall Insignia, and improved structural cost performance across the region.

GMAP

First Quarter
2009 2008 '09 O/(U) '08
Revenue (bils.) $2.4 $5.3 $(2.9)
Reported EBIT (mils.) $(21) $310 $(331)
Adjusted EBIT (mils.) $(21) $310 $(331)
GMAP Market Share 8.0% 6.9% 1.1 p.p.

GM sales in China were up 17 percent, driven by strong SAIC-GM-Wuling performance and aggressive government stimulus. This helped fuel overall regional sales and market share increases. However, sales decreased in most countries across the region excluding China, driving down production volumes, which impacted GMAP revenue. In addition, GM Daewoo revenue dropped as export volumes declined significantly across its major export markets.

GMLAAM

First Quarter
2009 2008 '09 O/(U) '08
Revenue (bils.) $3.4 $4.8 $(1.4)
Reported EBIT (mils.) $16 $500 $(484)
Adjusted EBIT (mils.) $42 $500 $(458)
GMLAAM Market Share 16.9% 17.6% (0.7) p.p.

GM Latin America, Africa and Middle East (GMLAAM) experienced sales increases in Ecuador and Peru in the first quarter, where it set new sales records. At the same time, GMLAAM saw market share increases in Colombia, Ecuador, Chile, Peru, Venezuela, Egypt, Kenya and North Africa. However, consistent with the industry's downward trend in the region, GMLAAM production volume dropped 24 percent versus the year-ago quarter, which impacted revenue. The region also experienced unfavorable foreign currency exchange primarily related to the depreciation of the Brazilian Real. In addition, special charges related to restructuring were incurred in several countries.

GMAC

On a standalone basis, GMAC reported a net loss of $675 million for the first quarter 2009, down $86 million from the year-ago quarter. GM realized a reported loss of $500 million for the quarter as a result of its equity interest in GMAC. Excluding the impact of the $385 million gain related to GM's portion of GMAC's gain associated with the accounting on its debt extinguishment, GM realized an adjusted net loss of $885 million.

GMAC's results were primarily attributable to continued pressure in mortgage operations, weaker credit performance on both auto and mortgage assets, mark-to-market adjustments, and an original issue discount related to its fourth quarter debt exchange. The losses were partially offset by profitable performance in its insurance business and gains on debt extinguishment transactions.

Cash and Liquidity

Cash and marketable securities totaled $11.6 billion on March 31, 2009, down from $14.2 billion on December 31, 2008.

The change in liquidity reflects negative adjusted operating cash flow of $10.2 billion in the first quarter of 2009, which was partially offset by U.S. TARP funding. Further detail on GM's current liquidity position and outlook will be disclosed in a Form 10-Q filing with the Securities and Exchange in the coming days.

Reinventing GM

On April 27, 2009, GM announced its revised Viability Plan, which is expected to result in sustainable cash flow and profitability, as well as a stronger balance sheet. The Plan includes faster and deeper acceleration of operational actions, encompassing further rationalization of its U.S. brands and nameplates, dealer consolidation, manufacturing capacity, and hourly employee and labor-cost reductions. GM also expects to implement additional salaried employee and executive reductions. These actions are designed to enable the company to dramatically reduce its U.S. breakeven volume, enabling GM to be profitable at below-trend industry sales volumes.

In addition, GM announced a number of initiatives to restructure and deleverage its balance sheet as an important part of the revised Viability Plan, including an exchange offer to its bondholders aimed at reducing its unsecured debt by at least $24 billion, conditioned upon exchanging at least half of its VEBA obligations (about $10 billion) to GM common stock and the conversion of at least half of GM's U.S. government debt to GM common stock. GM has not reached agreement with the UAW on the VEBA trust or with the U.S. Treasury on these conditions yet.

"This is a defining moment in the history of General Motors, and we are committed to our Plan, which we believe will lead to a stable and sustainable operating structure with a strong balance sheet," said Henderson. "Our goal is to fix this business once and for all to position ourselves to win in the long-term. That will be achieved by putting the customer first in all we do, focusing on fewer, stronger brands and developing great products that lead in design, technology, quality and fuel efficiency."