Re Joint Venture

GM and SAIC to Develop, Produce Energy-Efficient  
                 and Environmentally Clean Vehicles in China 
 
    SHANGHAI, China, Oct. 31 -- General Motors Corp. (GM) Chairman and CEO Rick 
Wagoner and SAIC Motor Corp. Ltd. (SAIC Motor) Chairman Hu Maoyuan signed a 
Memorandum of Understanding today in Shanghai to explore opportunities for the 
local application and production of energy-efficient and environmentally clean 
vehicles in China.  
    The two partners will explore the expansion of the current GM-Allison-SAIC 
hybrid demo bus program announced last October to a larger bus fleet for 
Shanghai's mass transportation system in advance of the 2010 World Expo in 
Shanghai.   
    GM and SAIC will also pursue passenger car hybrid options as well as other 
clean-energy vehicle applications including hydrogen fuel cell technologies 
for China's relevant vehicle platforms.  The goal is to have available a 
number of different models designed to meet the different needs of China's 
consumers.  The introduction of locally manufactured vehicles is targeted to 
be available beginning in 2008.  
    According to Rick Wagoner, the two companies have the technical advantage 
of their Pan Asia Technical Automotive Center (PATAC) joint venture in 
Shanghai.  The well-established, eight-year-old local engineering and design 
center will be responsible for hybrid system application engineering and 
integration in vehicles. 
    PATAC's designers, engineers and technicians will be involved in a number 
of hybrid programs applicable to vehicles manufactured by Shanghai GM.  They 
will build complete demonstration vehicles, assessing various hybrid concepts 
for near-term production and developing local competency in regenerative 
braking, electric power steering and high-voltage battery systems. 
    Many of these technologies may have direct application in the development 
of hydrogen fuel cell vehicles, which both GM and SAIC believe is the ultimate 
solution to taking the motor vehicle out of the environmental equation, 
guaranteeing energy security and enabling a greater number of people to have 
access to environmentally clean personal transportation. 
    'To make this happen, we need to bring down costs and build the necessary 
infrastructure -- and the best way to do that is by business and government 
working together,' Wagoner said.  
    'The collaboration between SAIC and GM brings together the best resources 
that our two countries and their two industry leaders have to offer,' Wagoner 
added.  'As a company with a major stake in China, GM believes that we must 
focus on the industry of tomorrow.  By working together, we can help take 
China one step closer to the era of sustainable transportation.' 
    'SAIC Motor will focus on technology and innovation in the development of 
clean energy vehicles,' said Hu Maoyuan.  'We will work closely with research 
institutions to actively promote the development of key technologies.  We also 
attach great importance to cooperation with our joint venture partner.  By 
further strengthening our partnerships and enabling our joint ventures to play 
a major role in the development process, we hope to get clean energy vehicles 
to the market at the earliest possible date.'  
    Today's announcement builds on an earlier agreement signed by GM and SAIC 
in Shanghai on Oct. 30, 2004, for the development and commercialization of 
clean energy vehicles.  The agreement includes a series of joint programs to 
promote hydrogen fuel cells and other advanced vehicle technologies.   
    As part of the earlier agreement, GM and SAIC have launched a local 
demonstration of the HydroGen3, GM's first fuel cell vehicle to go into 
commercial operation.  The local HydroGen3 made its debut in September.  The 
two companies are also planning to engage in discussions around infrastructure 
development and in dialogue around relevant standards and regulations.  On 
Sept. 28, GM China and SAIC opened an exhibition on hydrogen fuel cell 
technology at the Shanghai Science and Technology Museum to educate the 
Chinese public on sustainable transportation.  
    General Motors Corp. (NYSE: GM), the world's largest automaker, has been 
the global industry sales leader since 1931.  Founded in 1908, GM today 
employs about 325,000 people around the world.  It has manufacturing 
operations in 32 countries and its vehicles are sold in 200 countries.  In 
2004, GM sold nearly 9 million cars and trucks globally, up 4 percent and the 
second-highest total in the company's history.  GM's global headquarters are 
at the GM Renaissance Center in Detroit.  More information on GM can be found 
at http://www.gm.com . 
 
SOURCE  General Motors Corporation 
    -0-                             10/31/2005 P 
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    /CONTACT:  Rob Leggat of General Motors Asia Pacific, [phone]/ 
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    (GM)