Earnings Outlook

GM Affirms Earnings Outlook for Second Quarter and Calendar Year 
 
    --  Great Products, Productivity And Quality Gains Cited 
    --  North America On-Track, Europe More Challenging Than Expected 
    --  GMAC Performance Continues To Build 
 
    DETROIT, June 14 -- General Motors Corp. (NYSE: GM) said 
today the outlook for the global auto industry remains strong and the company 
is on-track to meet its second-quarter and 2004-calendar-year financial 
targets. 
    At an annual meeting with securities analysts and investors, GM Chairman 
and Chief Executive Officer Rick Wagoner said, 'GM expects record global 
industry sales of more than 61 million units in 2004.  Our strong products, 
quality and productivity improvements, aggressive marketing, technological 
advances in design and manufacturing, and a strong commitment to innovation 
and technology are key to capitalizing on the expanding market.'   
    'GM is on-track to meet its 2004 targets of $2.00 to $2.25 earnings per 
share in the second quarter this year, and $7.00 per share for the calendar 
year, excluding special items,' said GM Vice Chairman and Chief Financial 
officer John Devine.  'Longer term, we continue to work toward our goal of 
achieving earnings of $10.00 per share by 2006.' 
    GM's financial-services subsidiary, General Motors Acceptance Corp. 
(GMAC), continues to be a strong contributor to GM's financial performance.  
'GMAC is exceeding expectations and is confident it will surpass its target of 
$2 billion net income for 2004 by a wide margin,' Devine said.   
    GM North America is on-track to hit its earnings target of $1 billion to 
$1.4 billion this year, despite a continuing tough competitive environment.  
GM Asia Pacific (GMAP) is showing continued strength and is on-track to earn 
between $700 million and $800 million.  In the Latin America/Africa/Mid-East 
(GMLAAM) region, the outlook is encouraging and GM expects to reduce losses 
further and beat the targeted range of ($200) million to ($100) million.  The 
turnaround at GM Europe (GME) has proven more difficult than anticipated, and 
GME is expected to be in a loss position for the 2004-calendar year, largely 
because of lower-than-projected revenue growth. 
    Other financial priorities are on-track, as GM expects to generate $5 
billion in operating cash flow, reduce structural costs in automotive 
operations by more than $500 million, reduce material costs in North America 
by 3.5 percent and by 3.0 percent in Europe, and hold capital spending to $7 
billion. 
    The outlook for U.S. industry sales for 2004 is approximately 17.2 
million, with total North American sales of about 20.2 million.  The 
projection for Europe is also approximately 20.2 million units.  Industry 
sales in Asia Pacific are expected to total about 17.0 million units, while 
sales in Latin America, Africa and the Mid-East should reach approximately 3.8 
million.   
    General Motors is focused on continuing its 73-year history of global 
automotive leadership with great design, quality, reliability and durability 
of every product.  Initial acceptance is excellent for the new Opel/Vauxhall 
Astra, which will be sold in 27 countries in Western and Central Europe.  In 
North America, the focus on design leadership is demonstrated by the new 
generation of Cadillacs, the new Corvette, the Buick LaCrosse and the Pontiac 
G6.  GM and its joint ventures in China plan to broaden product offerings in 
that rapidly expanding market, and product strength in Latin America has led 
to continued market-share gains. 
    The company's commitment to leadership in powertrain technology is paying 
off with cars and trucks that offer excellent performance while at the same 
time making significant gains in fuel efficiency and emission reductions.  
    'We are improving the performance and efficiency of our current 
powertrains with displacement-on-demand technology and advanced valvetrain 
controls for gasoline engines, enhancements in diesel engines for cars and 
trucks, and sophisticated electronic engine and transmission controls,' 
Wagoner said.  'We are developing the broadest portfolio of hybrid systems in 
the industry, and we are an industry leader in fuel-cell development, all of 
which we believe provides GM with long-term competitive advantages.' 
    Winning vehicle designs and performance characteristics are complemented 
by popular options such as OnStar, the leading provider of in-vehicle safety, 
security and information services, and XM satellite radio, which will be 
offered on more than 50 U.S. cars and trucks in the 2005 model year.   
    GM is leveraging its global skills, capabilities, and technical resources 
to efficiently produce vehicles targeted to meet consumer needs in various 
local markets throughout the world.  'We are pushing hard to achieve market-
share growth in all regions and to strengthen our foundation for future 
growth,' Wagoner said.  'Our focus is crystal-clear, our progress is steady, 
and our commitment to leadership is unwavering' 
    In this press release and related comments by General Motors management, 
our use of the words 'expect,' 'anticipate,' 'estimate,' 'project,' 
'forecast,' 'outlook,' 'target,' 'objective,' 'plan,' 'goal,' 'pursue,' 'on-
track,' and similar expressions is intended to identify forward-looking 
statements.  While these statements represent our current judgment on what the 
future may hold, and we believe these judgments are reasonable, actual results 
may differ materially due to numerous important factors that are described in 
GM's most recent report on SEC Form 10-K (at page II-20) which may be revised 
or supplemented in subsequent reports on SEC Forms 10-Q and 8-K.  Such factors 
include, among others, the following: changes in economic conditions; 
currency-exchange rates or political stability; shortages of fuel, labor 
strikes or work stoppages; market acceptance of the corporation's new 
products; significant changes in the competitive environment; changes in laws, 
regulations and tax rates; and, the ability of the corporation to achieve 
reductions in cost and employment levels to realize production efficiencies 
and implement capital expenditures at levels and times planned by management. 
 
SOURCE  General Motors Corporation 
    -0-                             06/14/2004 P 
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