GM to Sell Equity Stake in Suzuki

General Motors to Sell 17.4 Percent Equity Stake in Suzuki 
 
              Will retain 3 percent, continue strategic alliance 
 
    DETROIT, March 6 -- 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. 
 
SOURCE  General Motors Corp. 
    -0-                             03/06/2006 P 
    /NOTE TO EDITORS:  For additional media information visit 
http://media.gm.com ./ 
    /CONTACT:  Rob Leggat, [phone], [e-mail], Jay Cooney, 
[phone], [e-mail], Toni Simonetti, [phone],  
[phone] - mobile, [e-mail], Gina Proia, [phone], 
[phone] - mobile, [e-mail]/ 
    /Web site:  http://media.gm.com  
                http://www.gm.com / 
    (GM)