Result of Meeting

GM Affirms Outlook for Second Quarter At 
             Annual Meeting of Securities Analysts and Investors 
 
    DETROIT, June 10 -- General Motors Corp. (NYSE: GM, GMH) 
today presented an updated outlook on its business performance at its annual 
gathering of securities analysts and investors. 
    At the meeting, GM executives said the current analyst consensus of 
approximately $1.20 earnings per share for the second quarter, excluding 
Hughes and special items, is reasonable and is consistent with GM's previous 
guidance of more than $1.00 per share for the quarter.  GM's second quarter 
outlook is after the negative accounting impact of about $0.25 - $0.35 per 
share related to lost production and damage from a recent tornado at the 
Oklahoma City plant. 
    For the full year, GM reiterated that its ability to achieve its target of 
$5.00 earnings per share, excluding Hughes and special items, remains 
uncertain in light of the intense pricing pressure in the U.S. -- as 
previously stated in April.  GM North America is expected to fall short of its 
initial net income target for 2003.  However, General Motors Acceptance Corp. 
(GMAC) continues to exceed expectations and is now forecasting earnings of 
more than $2 billion -- which would set a new record. 
    GM Vice Chairman and Chief Financial Officer John Devine said:  'We are 
continuing to work toward our aggressive target of $10 earnings per share by 
mid-decade.  Although it appears that this goal is becoming more difficult to 
achieve, we are looking at a variety of opportunities that will help us reach 
this target.  Earnings of $10 per share by mid-decade remains the goal.' 
    'GM remains focused on solid business fundamentals to help ensure 
continued profitability -- despite a fiercely challenging pricing and 
competitive environment.  The objectives outlined early this year continue to 
be our focus: developing great products; continuing cost reduction and 
maximizing revenue across the enterprise, staying aggressive in the market, 
and strengthening the balance sheet,' Devine said. 
    GM continues to make progress toward its goal of strengthening the balance 
sheet by $10 billion in 2003.  Through the first quarter, GM generated cash 
and improved the balance sheet by $4.5 billion, primarily attributable to 
positive automotive cash flow and asset sales.  In addition, GM raised 
approximately $1.5 billion in debt offerings in May of 2003.  GM remains 
confident it will meet or exceed its 2003 cash-generation target. 
    GM's financial picture reflects continued strength at GMAC.  GMAC now 
expects to earn more than $2 billion in 2003, and plans to remit a dividend to 
GM later this year.  Financing operations remain strong; insurance operations 
are on the rise over 2002; and mortgage operations continue to excel as a 
result of exceptionally strong origination volume. 
    GM's operations in the Asia Pacific region are yielding better-than-
expected results with the start-up of GM-Daewoo Auto and Technology Co., in 
Korea, volume growth and an increasing manufacturing footprint in China, 
market leadership and rear-wheel drive synergies from Holden, as well as 
product and powertrain synergies being developed with GM's Japanese alliance 
partners.  China's automotive industry continues to experience rapid growth, 
with industry sales escalating from 1 million units in 1990 to more than 4 
million projected in 2003.  GM's sales volume in China is expected to grow to 
335,000 this year -- up from 258,000 in 2002. 
    For GM North America, GM executives outlined the company's efforts to 
strengthen its passenger car line-up.  More than two-thirds of GM's capital 
spending in North America has been dedicated to truck products over the past 
several years.  While GM continues to expand its light truck portfolio to 
maintain a leadership position in these segments, the company will shift more 
capital spending to re-invigorate its passenger car portfolio.  Between the 
2003 and 2006 model years, 90 percent of GM's passenger car entries and 94 
percent of its car volume will be overhauled with renewed emphasis on design 
and quality. 
    Total automobile sales in the U.S. continue to track GM's estimate of 
annual vehicle sales in the low- to mid-16 million unit range.  In order to 
offset intense competitive pricing pressure, GM North America is focused on 
cutting costs in the areas of material and warranty, as well as achieving 
savings in manufacturing and engineering operations.  GM reiterated that it 
expects to meet or exceed its 2003 calendar year targets for both material and 
structural cost reductions.   
    In addition to cost-cutting efforts, GM North America is focused on 
aggressive revenue management -- growing and improving the quality of market 
share, improving vehicle mix, and expanding services such as XM Radio and 
OnStar.  Year-to-date, this revenue management has allowed GM North America to 
essentially offset the negative pricing environment -- keeping revenue per 
unit steady versus last year. 
    GM Europe continues to pursue its plan for a turnaround with aggressive 
productivity improvements and reduced costs in the areas of material, 
manufacturing, and warranty.  An aggressive schedule of product introductions 
is expected to help continue GM's share recovery and bolster revenue growth.  
However, the economic outlook for Western Europe, particularly Germany, is 
weaker than expected and has resulted in lower industry sales. 
    GM's Latin America-Africa-Middle East (LAAM) operations continue to 
increase market share in very depressed markets.  These gains and significant 
cost cutting are expected to lead to a narrower loss for GM LAAM in 2003, 
versus 2002. 
    In this press release and related comments by General Motors management, 
our use of the words 'expect,' 'anticipate,' 'estimate,' 'forecast,' 
'objective,' 'plan,' 'goal,' 'pursue' 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-18) 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-                             06/10/2003 P 
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