General Motors Announces Sale of its Equity Stake in Fuji Heavy Industries

Detroit (ots/PRNewswire) -

- Strategic decision to sharpen focus on other aspects of global
development

General Motors Corp. (NYSE: GM) today announced the sale of its
approximate 20 percent equity stake (about 157 million shares) in
Fuji Heavy Industries (FHI). The alliance between GM and FHI will end
and GM will refocus its efforts and resources in the Asia Pacific
region's high-growth markets and with its other strategic partners.

Toyota Motor Corporation will purchase 68 million shares, or
approximately 8.7 percent, of FHI shares outstanding, from GM for JPY
520 ($US4.60) per share, or about US$315 million in cash. GM intends
to divest its remaining 11.4 percent interest by offering for sale
its shares (89 million shares) into FHI's 90 million share
open-market buyback program announced earlier today, and through
market sales if necessary.

"We've had a good partnership; however both GM and FHI came to the
conclusion that there were not enough collaborative projects to
sustain the alliance and that each of our interests could be better
served through a different approach," said Troy Clarke, GM group vice
president and president, GM Asia Pacific. "We have a great deal of
respect for FHI and Toyota. We wish them well in their new
relationship."

The divestiture of GM's stake in FHI is expected to be completed
in the fourth quarter.

Since GM acquired a stake in FHI in 2000, the companies have been
involved in various joint projects in product development, advanced
technology, global purchasing and supply chain management, and
product distribution. GM currently partners with FHI on one
production vehicle, the Saab 9-2x, which will continue.

Other joint arrangements with FHI will be dissolved over time. For
example, GM and FHI's previously announced Saab crossover vehicle
development program will be cancelled.

Also today, GM will file a Form 8-K at the Securities and Exchange
Commission describing a restatement of its second quarter 2005
financial statements to reflect a reduction of between US$700-US$800
million in the carrying value of its FHI stock.

The sale by GM of its interest in FHI, including cash proceeds
received and any potential gain on sale, will be recorded in the
fourth quarter.

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 317,000 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. More information on GM can be found at http://www.gm.com.

Web site: http://www.gm.com

Rückfragehinweis:
Rob Leggat, +86-138-1667-0879, rob.leggat@gm.com, or Toni Simonetti,
+1-212-418-6380 or mobile +1-917-822-3392, toni.simonetti@gm.com,
both for GM/ NOTE TO EDITORS: For additional media information visit
http://media.gm.com .

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