Power Information Network Reports: ``Employee Discount'' Campaign Dramatically Increasing GM's Market Share

WESTLAKE VILLAGE, Calif.--June 17, 2005--General Motors Corporation's retail share of the new-vehicle industry is 30.3 percent through the first 12 days of June -- up almost eight points from its retail share in May -- according to actual retail transaction data from more than 6,000 automotive franchises compiled by the Power Information Network (PIN).

PIN data shows that GM's market share is up nine points from April 2005 and seven points from June a year ago.

The last time GM's single-month retail market share exceeded 30 percent for a full month was September 2004, when the company sold 31.5 percent of all new vehicles.

During the first 12 days of June, the Chrysler Group's retail market share has dropped more than two points from May, while both Ford Motor Company's and Toyota Motor Corporation's shares have dropped by more than a point. Other manufacturers, including American Honda, Nissan Motor and Hyundai Motors, have experienced smaller declines in market share.

"The `GM Employee Discount for Everyone' incentive program is substantially moving the needle for them," said Tom Libby, senior director of industry analysis at the Power Information Network. "At this point it looks like this may be their most effective incentive program, in terms of market share gain, since the post-9/11 zero-percent financing program."

Jeff Schuster, executive director of global forecasting at J.D. Power-LMC Automotive Forecasting, believes GM's incentive plan could help it keep its market share near last year's level.

"This incentive program will function more as a share stabilizer for GM when looking at the impact on calendar year 2005 market share," Schuster said. "We had expected GM to end 2005 at 26 percent of the light-vehicle market, but could see a number closer to the 27.6 percent share GM had for 2004 if this campaign is used on an intermittent basis. However, over the long run, it will still be the product that makes the difference, not incentives."

Power Information Network trade data shows that in both May and June, more than 60 percent of the vehicles traded in on GM purchases have been GM vehicles. There has also been a mild increase in the number of Ford Motor Company vehicles being traded in for new GM models.

About Power Information Network (PIN)

PIN's automotive solutions are based on the collection and analysis of daily new- and used-vehicle retail transaction information from automotive franchises. PIN's industry-leading automotive solutions incorporate consumer demand and sales information to improve results in product planning, marketing, sales, and vehicle production and distribution processes for its customers including pricing, revenue management, incentives optimization, and vehicle remarketing. Additional information is available at www.powerinfonet.com

About J.D. Power and Associates

Headquartered in Westlake Village, Calif., J.D. Power and Associates is an ISO 9001-registered global marketing information services firm operating in key business sectors including market research, forecasting, consulting, training and customer satisfaction. The firm's quality and satisfaction measurements are based on responses from millions of consumers annually. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies

Founded in 1888, The McGraw-Hill Companies is a global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor's, BusinessWeek and McGraw-Hill Education. The Corporation has more than 280 offices in 37 countries. Sales in 2004 were $5.3 billion. Additional information is available at http://www.mcgraw-hill.com.