Smith also reflected on GM's plan to break with its long history of vertical integration by separating Delphi from GM - one of GM's key shareholder value initiatives in 1999.

At the meeting, GM officials reviewed their priorities. "We're focusing on four key things," said GM President and Chief Operating Officer G. Richard Wagoner, Jr.:

• Leveraging our capabilities as a single GM global automotive unit

• Driving for stretch results

• Pursuing goals with a sense of urgency

• Product success around the globe

"We're building on the foundation we put in place over the last few years as we implemented common processes and systems, shortened lead times for product development, and focused our product portfolios", Wagoner said. "We are now accelerating the pace and intensity of our initiatives, with special focus on new innovative product entries, in order to drive a higher level of performance in the marketplace and on the bottom line".

GM also reported on actions designed to encourage winning behavior. Among these, the corporation raised performance requirements for executive incentive compensation, and increased the amount of stock top executives are required to hold. "These changes are focused on driving improved results for our customers and stockholders", Wagoner said.

The four regional presidents of GM's automotive operations also echoed their commitment to drive stretch performance in their respective organizations and to build upon the recent success of well-targeted, new product introductions.

"Adding it all up, we believe our automotive operations are positioned to deliver solid results in 1999," said GM Executive Vice President and Chief Financial Officer J. Michael Losh. "We expect our strong new product offerings in North America and Europe to position GM well for another year of improved financial results and cash generation, despite continued weakness in the Asia-Pacific and Latin American regional economies. Moreover, we will be increasing our efforts to take full advantage of cross-selling opportunities such as in-vehicle communications and dealer and consumer financing afforded by GM's ownership interests in Hughes Electronics Corporation and General Motors Acceptance Corporation," Losh said.

Building on GM's unveiling of a number of innovative concepts at the North American International Auto Show in Detroit earlier this month, analysts were provided with a preview of a broad array of cars, trucks and hybrid vehicles that are being considered for future production. During a tour of GM's Design Center, these vehicles were used to demonstrate how GM plans to introduce more innovative products in its portfolio while employing math-based design and virtual-reality techniques to meet these new design challenges.

"GM stands ready to meet the design and engineering challenges of an aggressive new product line-up," said Thomas J. Davis, GM vice president and global process leader for design and engineering. "GM is continuing to invest in state-of-the-art engineering campuses, which already have contributed to reduced engineering costs and to the achievement of a product-development time of 24 months."