Five GM Models Named Segment Leaders in IQS Study

Dubai, United Arab Emirates – 22 June 2005 – J.D. Power and Associates this month released their 2005 Initial Quality Study (IQS), widely considered to be the industry benchmark for new vehicle quality. GM and its assembly plants had many significant "wins" in the study, with 13 vehicles placing in the top three of their segment for the second consecutive year.

One of GM’s most popular SUVs in the Middle East was rated highest in its segment, the Chevrolet Suburban, while the GMC Sierra heavy duty full-sized pickup, which is an extremely popular model for GM’s regional Fleet customers also topped its class.

The overall result included six GM models that were rated highest in their segment, up from three that placed at the top of their segment in the previous year's study. These are: Chevrolet's Malibu/Malibu Maxx (Entry Midsize) and Suburban (Full-Size SUV), the GMC Sierra HD (Heavy Duty Full-Size Pickup) and Buick's Century (Premium Midsize) and LeSabre (Full-Size Car). This marks GM's best performance to date in terms of segment leadership.

"The 2005 IQS results contain some genuinely good news for General Motors,” said Chance Parker, executive director of product and research analysis at J.D. Power and Associates. “The improvements of the quality of several models and at their North American plants are both very positive signs."

Five GM models ranked second in their segment: the Cadillac Escalade EXT (Full-size Pickup Light Duty), Chevrolet’s Silverado HD (Full-Size Pickup), Tahoe (Full-Size SUV) and Impala (Premium Midsize), and the Pontiac Grand Prix (in a tie with Impala). Two models came in third: the Cadillac CTS (Entry Luxury Car) DeVille (Mid Luxury Car).

"While GM performed respectably in a relatively flat industry, we're not anywhere near where we need to be in terms of quality," said Kevin Williams, vice president of Quality for GM North America. "We are extremely proud that five GM models are segment leaders in initial quality, and that we have the top three assembly plants in North/South America, but the GM team must put greater emphasis on executing best in segment vehicles in all areas of quality: initial quality, long-term quality and perceived quality." Williams added that for GM to become the undisputed leader in quality, it will take "all the people, all the time, focused on quality every day of the year."

Findings Consistent with Strategic Vision Total Quality Study
The results of the IQS are consistent with the results of Strategic Vision's recently released Total Quality Study. Six GM vehicles got top ratings in five of the survey's vehicle categories, the highest number of any full-line manufacturer. The GMC Sierra was the top heavy-duty pickup, while the Pontiac G6 was the top mid-size car and the Buick Rainier was the top mid-size sport utility vehicle. The Cadillac Escalade and the HUMMER H2 tied with Land Rover's Range Rover in the luxury SUV category, while the Chevrolet Corvette came out tops among luxury specialty cars.

GM Dominates Premium Midsize Car Segment
In the very competitive Midsize Car segment, GM demonstrated its quality leadership in the IQS. GM dominated the Premium Midsize Car segment, with Chevrolet Impala, Buick Century, Buick LaCrosse and Pontiac Grand Prix taking the top four spots - all ahead of the Toyota Camry and Honda Accord. Overall, Buick Century was the No. 1 vehicle built in North America and the Buick LaCrosse was the highest-rated all-new redesigned launch vehicle.

Winning Assembly Plants
GM swept the top three North/South America plant awards, up from two award wins in 2004. Oshawa 2, which makes the Buick Century, Buick LaCrosse and Pontiac Grand Prix won the Gold award for top assembly plant in North/South America. Oshawa 1, which makes the Chevy Impala and Chevy Monte Carlo, won the Silver award for top assembly plant in North/South America. Hamtramck, which built the Buick LeSabre, Cadillac DeVille and Pontiac Bonneville during the survey period (and is gearing up to build the Buick Lucerne and Cadillac DTS) won the Bronze. GM has been recognized for having the top two assembly plants in North America for four consecutive years.

How GM Vehicles Compare to other Brands
Buick and Cadillac are among the top five brands, just behind Lexus, Jaguar and BMW. Four GM brands are above industry average: Buick, Cadillac, HUMMER and GMC.

Powertrain Performance
While J.D. Power and Associates doesn't report on GM Powertrain performance publicly, our own calculations, based on data from J.D. Power, shows that GM Powertrain improved 4 percent, passing Toyota for the first time. GM Powertrain is now in second place, with Honda setting the new benchmark in powertrain performance. In other findings, GM Powertrain became the industry leader in automatic transmissions, improving 25 percent year-over-year.

Other Key Findings
Following are some other significant wins for GM:

• HUMMER was among the top 10 brands and also was the "most improved" brand, with a 36 percent improvement. This is good news for the HUMMER H3, which began shipping to dealers this week
• The GMC Envoy had significant year-over-year improvement
• The Cadillac CTS finished third in the entry Luxury Car segment, ahead of the Chrysler 300 and BMW 3 Series

CONTACT(S):
Saada Hammad
Communications and Public Relations Manager
General Motors Middle East
Tel (+9714) 3143350
e-mail saada.hammad@gm.com

About GM
General Motors, the world’s largest vehicle manufacturer, was founded in 1908 and has been the global automotive sales leader since 1931. GM today employs about 324,000 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 from the previous year, and the second-highest total in the company’s history. GM’s global headquarters are in Detroit.

GM has been operating in the Middle East since the early 1940s. GM’s vehicle brands sold in the region are Cadillac, Chevrolet, GMC, HUMMER, Opel and Saab supported by a unique set of customer-focused services. GM parts and accessories are sold under the GM Parts and ACDelco brands. The regional office in Dubai covers the company’s operations in Bahrain, Iraq, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Syria, UAE and Yemen.

In 2004, GM sold around 89,000 vehicles in the Middle East, representing a 55 percent increase over figures recorded in 2003, and the company continues to introduce pioneering programs in the region. More information on GM and its products can be found on the company’s consumer websites www.gm.com and www.gmarabia.com.