General Motors to Sell 17.4 Percent Equity Stake in Suzuki

Detroit (ots/PRNewswire) -

- Will retain 3 percent, continue strategic alliance

General Motors Corp. (NYSE: GM) today announced it would reduce
its equity stake in Suzuki Motor Corp. from 20.4 percent to 3.0
percent, by selling 92.36 million shares. The strategic alliance
between GM and Suzuki will continue.

GM plans to sell these Suzuki shares, representing 17.4 percent of
the shares outstanding, through the Suzuki open-market buyback
program and through market sales if necessary.

GM currently holds a total of 108.66 million Suzuki shares, which
had a closing price of JPY 2500 per share on March 3 on the Tokyo
Stock Exchange. Based on this market value, GM expects to realize
cash proceeds of approximately U.S. $2 billion from the sale of 92.36
million Suzuki shares, which will enhance the strength of GM's
balance sheet and liquidity position.

"GM has a great deal of respect and admiration for Suzuki based on
our long and productive history of working together," said Rick
Wagoner, GM chairman and CEO. "Our relationship is strong, and we
look forward to our continued partnership. This transaction will
allow us to preserve our business relationship, while further
building up GM's already significant liquidity position during this
critical phase of our turnaround."

GM has held an equity stake in Suzuki since 1981, when it
purchased approximately 5.3 percent of the Suzuki shares outstanding.
GM's stake was diluted to 3.5 percent in subsequent years, but in
1998 GM increased its holding in Suzuki to 10 percent, and to
slightly over 20 percent in 2001. During this time, the companies
have been involved in various joint projects in product development,
advanced technology, global purchasing and supply chain management,
and product distribution. Specific projects including collaboration
in fuel cell and hybrid systems development, joint operation of CAMI
Automotive, Inc. in Canada, the manufacture of a new medium-size SUV
at the joint venture facility, and the cross-supply of OEM vehicles
will continue. In addition, GM and Suzuki plan to work together on a
proposed new automatic transmission program.

The sale by GM of a 17 percent equity stake in Suzuki, including
cash proceeds received and any potential gain on sale, will be
recorded in the first quarter. Based on current market value, GM
expects a pre-tax gain on the sale in the range of US $550-$750
million. The tax rate on the Suzuki transaction is expected to exceed
statutory rates largely as a result of certain tax credits that the
transaction will eliminate.

General Motors Corp. (NYSE: GM), the world's largest automaker,
has been the global industry sales leader for 75 years. Founded in
1908, GM today employs about 327,000 people around the world. With
global headquarters in Detroit, GM manufactures its cars and trucks
in 33 countries. In 2005, more than 9 million GM cars and trucks were
sold globally under the following brands: Buick, Cadillac, Chevrolet,
GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and
Vauxhall. GM operates one of the world's leading finance companies,
GMAC Financial Services, which offers automotive, residential and
commercial financing and insurance. More information on GM can be
found at www.gm.com.

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ots Originaltext: General Motors
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Contact:
Rob Leggat, +82-11-442-8902, rob.leggat@gm.com, Jay Cooney,
+81-80-5098-6514, jay.cooney@gm.com, Toni Simonetti, +1-212-418-6380,
+1-917-822-3392 - mobile, toni.simonetti@gm.com, Gina Proia,
+1-212-418-6389, +1-914-714-9166 - mobile, gina.proia@gm.com; NOTE
TO EDITORS: For additional media information visit
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