GM Reports May Sales Of 403,036

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News of June 05, 2002

GM Reports May Sales Of 403,036 - Down 12 Percent

Vehicle Production and Earnings Outlook Improves for Second Quarter and Calendar Year
GM Truck Sales Down 12 Percent - Cars down 12 percent
CYTD Sales Down 3 percent - Trucks up 9 percent, Cars Down 15 Percent
Overall Retail Sales Up 2 Percent For The Year
CYTD Retail Truck Sales Up 13 Percent
Second Quarter Earnings Estimated At $2.50 Per Share Excluding Hughes
2002 Earnings Estimated At $6.00 Per Share Excluding Hughes And Special Items

DETROIT - General Motors dealers sold 403,036 new cars and trucks in May in the United States, down 12 percent over last year. GM overall truck sales were down 12 percent and GM car sales decreased 12 percent due to a highly competitive environment and a very strong May sales performance last year. Despite the decline, GM sales through May are down a modest 3 percent and retail sales are up 2 percent. CYTD truck sales are up 9 percent overall and 13 percent retail.

GM Truck Sales

Through May, GM's industry leading truck lineup with overall deliveries up 9 percent and retail deliveries up 13 percent, continued on pace to establish an all-time industry record. In May, GM's mid utility vehicles were up 23 percent over last year, and are up a brisk 58 percent CYTD. Combined utility sales (88,188) increased 1 percent over year-ago record levels and CYTD sales are up 25 percent.

GM had another robust month in full-size utility vehicle sales, selling 37,831 units. GM also continued to gain momentum in the small utility segment as the Saturn VUE sold 5,147 units and Chevrolet Tracker delivered 3,836 units. For the month of May, GM had another solid month in full-size pickups delivering 76,798 units and CYTD full-size pickup sales are up 6 percent.

GM Car Sales

While overall car sales were down 12 percent in May, several GM cars had strong performances for the month. Chevrolet Cavalier (29,542) and Pontiac Sunfire (9,405) posted 62 percent and 63 percent increases respectively. Chevrolet Impala posted impressive sales (13,451), despite constrained inventory and the Chevrolet Corvette increased 7 percent over last May. SAAB continued to post impressive numbers as the 9-3 increased 27 percent and the 9-5 increased 41 percent.

Certified Used Sales

GM solidified its number one position in the certified used car market in May. GM sold approximately 33,000 total certified used vehicle sales for the month, including the Cadillac, Saturn and SAAB certified brands. The GM Certified Used Vehicle brand had another record month, selling 28,488 units.

GM Announces May Production Results, Revised Second Quarter Production Forecast, Initial Third Quarter Production Forecast

In May, GM produced 552,500 vehicles (244,000 cars and 308,500 trucks) in North America, up 12 percent from 492,000 vehicles (228,000 cars and 264,000 trucks) produced in May 2001. (Totals include joint venture production of 10,950 vehicles in May and 10,000 vehicles in May 2001.)

GM's second-quarter production forecast for North America is 1.545 million vehicles (683,000 cars and 862,000 trucks) compared to last month's forecast of 1.53 million vehicles. The forecast increase of 15,000 units from earlier estimates is due to continued strong consumer demand. The new forecast is 12 percent higher than GM's 2001 second quarter production when the company produced 1.364 million vehicles (638,000 cars and 726,000 trucks).

GM's initial third-quarter production forecast for North America is 1.245 million vehicles (550,000 cars and 695,000 trucks), up 0.6 percent from third quarter 2001 production levels of 1.238 million vehicles (573,000 cars and 665,000 trucks).

GM also announced the following production forecast information for its international regions:

GM Europe - The second-quarter production forecast is 462,000 vehicles, a decrease of 9,000 vehicles. The company's initial third-quarter production forecast for its European operation is 420,000 vehicles.

GM Asia Pacific - The second-quarter production forecast is 71,000 vehicles, an increase of 1,000 vehicles. GM's third-quarter production forecast for the region is 70,000 vehicles.

GM Latin America, Africa and the Middle East - The second-quarter production forecast is 143,000 vehicles, a decrease of 6,000 vehicles. The company's third quarter forecast is 155,000 vehicles.

GM's Earnings Guidance Increased for the Second Quarter and Calendar Year

As a result of increased production in North America, GM's continued strong U.S. retail performance, and an intense focus on cost reduction, GM has increased its earnings estimates for the second quarter and calendar year.

GM estimates its second-quarter-2002 earnings, excluding Hughes, at $2.50 per share, up from prior guidance of $2.00 per share. Including Hughes, the second quarter target is approximately $2.40 per share, up from $1.90 per share.

Because of the intensely competitive marketplace, GM believes its net price retention in North America for the second quarter will be approximately negative 2 percent. That compares with prior guidance of negative 1.4 percent to negative 1.6 percent. For the first six months, net price in North America is expected to be approximately negative 1.5 percent.

Based on a continued strong U.S. industry, with sales estimated in the range of mid-to-high 16 million total vehicles, and GM production in North America now estimated to be greater than 5.5 million units, GM estimates its 2002 calendar year earnings, excluding Hughes and special charges, at $6.00 per share, up from prior guidance of $5.00 per share. Including Hughes, the 2002 calendar year earnings guidance is approximately $5.60 per share, up from $4.60 per share. GM believes that net price retention for the second half of 2002 will not improve from the first-half levels.

GM remains optimistic about the remainder of the 2002 calendar year despite business risks such as the economic outlook in Latin America and the fierce pricing environment in North America. GM is on-track to deliver strong results in the 2002 calendar year, and remains focused on delivering the results required to drive shareholder value.

(June 3, 2002)

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