FOR RELEASE: June 3, 2002

GM Reports May Sales of 403,036 - Down 12 Percent

Vehicle Production and Earnings Outlook Improves for Second Quarter and Calendar Year

• GM Truck Sales Down 12 Percent - Cars down 12 percent
• CYTD Sales Down 3 percent - Trucks up 9 percent, Cars Down 15 Percent
• Overall Retail Sales Up 2 Percent For The Year
• CYTD Retail Truck Sales Up 13 Percent

Second Quarter Earnings Estimated At $2.50 Per Share Excluding Hughes
2002 Earnings Estimated At $6.00 Per Share Excluding Hughes And Special Items

DETROIT-- General Motors dealers sold 403,036 new cars and trucks in May in the United States, down 12 percent over last year. GM overall truck sales were down 12 percent and GM car sales decreased 12 percent due to a highly competitive environment and a very strong May sales performance last year. Despite the decline, GM sales through May are down a modest 3 percent and retail sales are up 2 percent. CYTD truck sales are up 9 percent overall and 13 percent retail.

"Compared to the strong May we had last year we were disappointed with our May results," said Bill Lovejoy, group vice president of North America Vehicle Sales, Service and Marketing. "However, if you look at our performance over the first five months of the year, we've done well despite the increasing competitiveness in the marketplace. Our inventory remains lean in critical areas such as full-size trucks and mid utilities, but we are still selling at an all-time industry record sales rate for trucks. On the car side, we had solid sales once again of all-new entries Pontiac Vibe and Cadillac CTS, which are helping to improve our position in the passenger car market.

"Our dealers continue to do a good job of bringing consumers into showrooms and closing sales -- playing a pivotal role in helping GM maintain its strong retail momentum," said Lovejoy.

GM Truck Sales

Through May, GM's industry leading truck lineup with overalldeliveries up 9 percent and retail deliveries up 13 percent, continued on pace to establish an all-time industry record. In May, GM's mid utility vehicles were up 23 percent over last year, and are up a brisk 58 percent CYTD. Combined utility sales (88,188) increased 1 percent over year-ago record levels and CYTD sales are up 25 percent.

GM had another robust month in full-size utility vehicle sales, selling 37,831 units. GM also continued to gain momentum in the small utility segment as the Saturn VUE sold 5,147 units and Chevrolet Tracker delivered 3,836 units. For the month of May, GM had another solid month in full-size pickups delivering 76,798 units and CYTD full-size pickup sales are up 6 percent.

GM Car Sales

While overall car sales were down 12 percent in May, several GM cars had strong performances for the month. Chevrolet Cavalier (29,542) and Pontiac Sunfire (9,405) posted 62 percent and 63 percent increases respectively. Chevrolet Impala posted impressive sales (13,451), despite constrained inventory and the Chevrolet Corvette increased 7 percent over last May. SAAB continued to post impressive numbers as the 9-3 increased 27 percent and the 9-5 increased 41 percent.

Certified Used Sales

GM solidified its number one position in the certified used car market in May. GM sold approximately 33,000 total certified used vehicle sales for the month, including the Cadillac, Saturn and SAAB certified brands. The GM Certified Used Vehicle brand had another record month, selling 28,488 units. Lovejoy commented on GM's leadership in certified used vehicle programs, "Thanks to exceptional dealer support and the efforts of our entire VSSM organization, we are now the industry leader in Certified Used Vehicles, a tremendous win for General Motors."

GM Announces May Production Results, Revised Second Quarter Production Forecast, Initial Third Quarter Production Forecast

In May, GM produced 552,500 vehicles (244,000 cars and 308,500 trucks) in North America, up 12 percent from 492,000 vehicles (228,000 cars and 264,000 trucks) produced in May 2001. (Totals include joint venture production of 10,950 vehicles in May and 10,000 vehicles in May 2001.)

GM’s second-quarter production forecast for North America is 1.545 million vehicles (683,000 cars and 862,000 trucks) compared to last month’s forecast of 1.53 million vehicles. The forecast increase of 15,000 units from earlier estimates is due to continued strong consumer demand. The new forecast is 12 percent higher than GM’s 2001 second quarter production when the company produced 1.364 million vehicles (638,000 cars and 726,000 trucks).

GM’s initial third-quarter production forecast for North America is 1.245 million vehicles (550,000 cars and 695,000 trucks), up 0.6 percent from third quarter 2001 production levels of 1.238 million vehicles (573,000 cars and 665,000 trucks).

GM also announced the following production forecast information for its international regions:

• GM Europe– The second-quarter production forecast is 462,000 vehicles, a decrease of 9,000 vehicles. The company’s initial third-quarter production forecast for its European operation is 420,000 vehicles.
• GM Asia Pacific – The second-quarter production forecast is 71,000 vehicles, an increase of 1,000 vehicles. GM’s third-quarter production forecast for the region is 70,000 vehicles.
• GM Latin America, Africa and the Middle East – The second-quarter production forecast is 143,000 vehicles, a decrease of 6,000 vehicles. The company’s third quarter forecast is 155,000 vehicles.

Click here to view the General Motors Corporation May 2002 Sales and Production data

GM's Earnings Guidance Increased for the Second Quarter and Calendar Year

As a result of increased production in North America, GM’s continued strong U.S. retail performance, and an intense focus on cost reduction, GM has increased its earnings estimates for the second quarter and calendar year.

GM estimates its second-quarter-2002 earnings, excluding Hughes, at $2.50 per share, up from prior guidance of $2.00 per share. Including Hughes, the second quarter target is approximately $2.40 per share, up from $1.90 per share.

Because of the intensely competitive marketplace, GM believes its net price retention in North America for the second quarter will be approximately negative 2 percent. That compares with prior guidance of negative 1.4 percent to negative 1.6 percent. For the first six months, net price in North America is expected to be approximately negative 1.5 percent.

Based on a continued strong U.S. industry, with sales estimated in the range of mid-to-high 16 million total vehicles, and GM production in North America now estimated to be greater than 5.5 million units, GM estimates its 2002 calendar year earnings, excluding Hughes and special charges, at $6.00 per share, up from prior guidance of $5.00 per share. Including Hughes, the 2002 calendar year earnings guidance is approximately $5.60 per share, up from $4.60 per share. GM believes that net price retention for the second half of 2002 will not improve from the first-half levels.

GM remains optimistic about the remainder of the 2002 calendar year despite business risks such as the economic outlook in Latin America and the fierce pricing environment in North America. GM is on-track to deliver strong results in the 2002 calendar year, and remains focused on delivering the results required to drive shareholder value.

Note: GM sales and production results are available on GM Media Online at http://media.gm.com by clicking on News, then Sales/Production.

In this press release and related comments by General Motors management, our use of the words "expect," "anticipate," "estimate," forecast," "objective," "plan," "goal" and similar expressions is intended to identify forward looking statements. While these statements represent our current judgement on what the future may hold, and we believe these judgements 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-15, 16) 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.

Curr S/D: 26 Prev S/D: 26	May			Calendar Year-to-Date January - May
	2002	2001	% Chg per S/D	2002	2001	% Chg
Vehicle Total	403,036	459,050	-12.2	1,955,280	2,014,184	-2.9
Car Total	183,566	209,460	-12.4	844,566	994,311	-15.1
Truck Total	219,470	249,590	-12.1	1,110,714	1,019,873	8.9
Light Truck Total	215,605	244,594	-11.9	1,093,846	1,001,145	9.3
Light Vehicle Total	399,171	454,054	-12.1	1,938,412	1,995,456	-2.9
Market Division Vehicle Total
	May			Calendar Year-to-Date January - May
	2002	2001	% Chg per S/D	2002	2001	% Chg
Buick	32,934	34,678	-5.0	150,817	143,632	5.0
Cadillac	15,158	12,270	23.5	69,934	62,157	12.5
Chevrolet	219,787	250,234	-12.2	1,101,816	1,105,737	-0.4
GMC	43,493	55,872	-22.2	215,990	219,932	-1.8
HUMMER	45	76	-40.8	227	368	-38.3
Oldsmobile	10,462	20,461	-48.9	67,377	112,326	-40.0
Other - Isuzu	1,265	1,585	-20.2	5,596	6,940	-19.4
Pontiac	47,344	47,929	-1.2	215,841	227,379	-5.1
Saab	4,002	3,014	32.8	16,577	13,465	23.1
Saturn	28,546	32,931	-13.3	111,105	122,248	-9.1
Sales of Domestically Produced Vehicles
Car	179,554	205,132	-12.5	827,782	976,353	-15.2
Light Truck	215,605	244,594	-11.9	1,093,846	1,001,145	9.3
Twenty-six selling days for the May period this year and twenty-six for last year.
* American Isuzu Motors, Inc., dealer sales of commercial vehicles distributed by General Motors Corporation as reported to General Motors by American Isuzu Motors, Inc.