Premier of GM Encore by Julius deChavez

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ENCS507

300 Renaissance Center M.C.: 482-C32-B71 P.O. Box 300 Detroit, MI 48265-3000

Forward-Looking-Statements Disclaimer: In this newsletter, we use words like “believe,” “expect,” “initiative,” “plan,” “goal,” “project,” “aim,” “priorities,” “may,” “continue,” or “designed” to identify forward-looking statements, which represent our current judgment about possible future events. We believe these judgments are reasonable, but GM’s actual results may differ materially due to a variety of important factors. GM’s most recent annual report on SEC Form 10-K and quarterly reports on Form 10-Q provide information about these factors, which may be revised or supplemented in future Forms 10-K, 10-Q, and 8-K.

To report a change of address or to inquire about pension, health care or life insurance benefits, contact the GM Benefits & Services Center at 1-800-489-4646 or www.gmbenefits.com.

DETROIT, MI PERMIT NO. 473

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SPRING 2007

Outlook Outperforms Competition

Energy Diversity and GM: The Future Is Now

High-Proﬁle Product Introductions

7/13/07 12:16:00 PM

LEADERSHIPmessage

CORPORATEturnaround

Energy Diversity –

Beth Lowery Vice President, Environment, Energy & Safety Policy

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We’re living in exciting times. The entire world has taken notice of the issues we face on the environmental and energy fronts. One thing is clear: if ever there was a time for action, it’s now. As you probably know, there are serious concerns today about energy supply, energy availability, sustainable growth, the environment and even national security issues that, collectively, have come to be called “energy security.”

The key to finding a solution is energy diversity, meaning alternative sources of propulsion using alternative fuels. At GM, we are taking action right now to achieve leadership in energy diversity. Our programs to improve the efficiency of the internal combustion engine, bring E85 ethanol vehicles to market, and expand and accelerate the development of electrically driven vehicles are proof positive of our commitment. We believe we have an extraordinary opportunity before us to make a difference in oil consumption and carbon dioxide emis sions. With an uncertain energy future, we must– as a business necessity– apply energy diversity to succeed in this global auto industry. GM is prepared to be more proactive regarding energy diversity (see related article, page 4). You can help us by informing your friends and family about our efforts. n

CONTENTS

Energy Diversity GM weighs in on the energy debate and brings solutions to the table.

High-Proﬁle Product Introductions Fabulous looks and great fuel efﬁciency go hand in hand with GM’s new models.

Debunking the Quality Gap Myth As GM raises the productquality bar, it’s time to revisit the perception that imported cars are superior

Integrated Health Management Program Personalized assistance for managing health care

GMencore

KEYcontacts

is published by GM Retiree Communications Susan Waun, Editor

www.gm.com

300 GM Renaissance Ctr. M.C.: 482-C32-B71 P.O. Box 300 Detroit, MI 48265-3000 Access online at http://retiree.gm.com

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http://retiree.gm.com

ABOUT the cover Saturn’s new Outlook XL crossover utility deftly negotiates the road, connecting style, comfort and fuel efﬁciency. (See related article on page 7.)

GM Benefits & Services Center 1-800-489-4646 www.gmbenefits.com GM Family First 1-800-235-4646 www.gmfamilyfirst.com

GM North America Turnaround Plan – A Brief Review At GM, a top priority continues to be the GM North America turnaround. We’ve been implementing our fourpoint turnaround strategy aggressively over the past year. Although our work is not yet done, we’ve made some real strides. In fact, the speed at which these strategies are working has surprised many people, according to GM Chairman and CEO Rick Wagoner. “We needed 2006 to be a big year, and it was,” Wagoner said. “Our performance last year reflects the significant progress we’ve made toward transforming GM into a more competitive, global business focused on long-term, sustainable success. The improvement is a credit to our employees, union partners, dealers and suppliers worldwide.” Recapping the highlights from 2006, GM sold 9.1 million vehicles worldwide. Net income, excluding special items, was $2.2 billion – marking a $5.4 billion improvement. Including special items, GM had a net loss of $2.0 billion for 2006, compared with a net loss of $10.4 billion in 2005.

In the first quarter of 2007, the global sales momentum continued with record sales of 2.26 million vehicles. Furthermore, consumer acceptance of new launch products contributed to improved financial performance for the quarter in North America. And there’s more evidence that GM’s North America turnaround plan is delivering results. Since the plan was announced in June 2005, GM has: • Cut $9 billion in structural costs on a running rate basis– $4 billion higher than the initial target. • Sold 51-percent stake in GMAC with total proceeds of $13 billion over three years. • Improved residual value through improved quality and product execution, a reduction in daily rental sales and reduced reliance on incentives. • Implemented the 100,000-mile/5-year powertrain limited warranty – the best coverage of any fullline automaker.

2007 Pontiac Solstice

“It’s important to point out that nobody at GM is declaring victory, because we all know there is still a lot more work to do to achieve our goals of steady growth, solid profitability and positive cash flow generation,” Wagoner said. “Still, we’re confident that the momentum we generated last year will continue to build through 2007 and beyond.” n

The GM North America Turnaround Plan

OBJECTIVE 1 Raise the Bar on Execution of New Products

OBJECTIVE 2 Revitalize Sales and Marketing Strategy

OBJECTIVE 3 Intensify Our Focus on Cost and Quality

OBJECTIVE 4 Address Our Health Care Costs

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A Key Strategy for GM’s Success

7/13/07 12:16:08 PM

TECHtalk

Energy Diversity and GM: The Future Is Now “We see energy and environmental leadership as a critical element of GM’s ongoing turnaround plan.” — Rick Wagoner Given the world’s growing need for transportation, it is unlikely that oil alone will be able to supply those demands over time. For GM and other automakers, this means developing alternative sources of propulsion and sustainable, dependable sources of fuel to meet the world’s transportation needs. GM believes the answer lies in energy diversity – using a variety of fuels and methods of propulsion – rather than a single, “one-size-fitsall” solution. In fact, GM Chairman and CEO Rick Wagoner says he views this point in history as an extraordinary opportunity to lessen the automobile’s impact on our environment and still meet the needs of our customers.

“By developing alternative sources of energy and propulsion, we have the chance to mitigate many of the issues surrounding energy availability,” he said. “We’ll be able to improve the profitability of the industry and have the opportunity to make the automobile more exciting, more functional and more fun to drive than ever before.” Wagoner said that even as GM continues to push for improved efficiency from the internal combustion engine that has served us well for decades, we must also aim to reduce our reliance on petroleumbased fuels. So what is GM doing about it? Here are a few examples: • Expanding our lineup of hybrid and FlexFuel vehicles – already more than two million vehicles sold.

• Planning to offer a biofuel powertrain across HUMMER’s entire lineup within three years. • Expanding our research into the development of electrically driven vehicles. One such example: the Chevrolet Volt concept vehicle. • Developing hydrogen fuel cell vehicles, which GM believes offer the best long-term solution for reducing our dependence on oil. Wagoner points out that GM’s commitment to improving fuel economy, reducing vehicle emissions, and developing electrically driven vehicles is a long-term strategy.

GM’s E85 Ethanol Leadership

Fuel cell: An electrochemical energy converter that produces electrical power and heat from a controlled reaction of hydrogen with oxygen, with water as the by-product. Hybrid: A mix of two dissimilar characteristics. In the case of automobiles, a hybrid vehicle uses a mixture of electricity, along with an internal combustion engine, to create the power it needs. Biomass: Organic substances such as plants, summer pruning, timber, etc. Biomass can be used as fuel. Ethanol: A high-octane liquid fuel produced by the fermentation of plant sugars. In the United States, ethanol is typically produced from corn and other grain products, although it may be produced from other biomass. E85 ethanol: A motor fuel mixture of 85 percent ethanol and 15 percent gasoline. E85 ethanol is a mostly renewable fuel that can be made from U.S.-grown corn. FlexFuel: GM’s line of vehicles that can run on E85 ethanol or gasoline. n

GM’s hybrid vehicles operate with an internal combustion engine and a battery pack. Electric energy is generated by the vehicle itself, stored onboard in a battery, and then used for vehicle propulsion or to run electric vehicle accessories. GM’s hybrid vehicles look similar to their nonhybrid counterparts. The difference comes with fuel economy, as hybrids allow the engine to run less often – for example, the engine shuts off when idling – therefore using less fuel. The “light hybrid” system offers a single operating mode used during low-speed driving. GM’s “2-mode” system offers one mode for low speeds and light loads, and another used primarily at highway speeds to optimize fuel economy. For 2007, GM’s hybrid lineup includes: Chevrolet: Silverado Classic 1500, Malibu, Tahoe GMC: Sierra Classic 1500, Yukon Saturn: VUE Green Line, Aura Green Line n www.gmability.com

GM has already sold more than two million vehicles that have the flexibility to run on either gasoline or E85 ethanol. And we are producing even more. Help us spread the word that GM has the best FlexFuel vehicle options with more choices than any other manufacturer. For the 2007 model year, GM offers 16 FlexFuel models – up from nine last year: Chevrolet: Avalanche, Impala, Monte Carlo, Silverado 1500, Silverado 1500 Classic, Tahoe, Suburban, Uplander and Express GMC: Yukon, Yukon XL, Sierra 1500, Sierra 1500 Classic and Savana Buick: Terraza Pontiac: Montana SV6 (in Canada only). n www.E85fuel.com

GMC’s 2008 hybridpowered Yukon is one step toward GM’s plan to achieve energy and environmental leadership.

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“We see energy and environmental leadership as a critical element of GM’s ongoing turnaround plan,” Wagoner said. “It’s a key part of our future business strategy.” n

The Industry’s Broadest Hybrid Selection

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• Planning to build a Saturn Vue plug-in hybrid vehicle, which

promises a significant fuel-economy improvement – as much as 45 percent – over the current, conventionally powered model.

Energy Diversity: A Glossary

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7/13/07 12:16:19 PM

PRODUCTadvantage

GM’s ongoing and dramatic product resurgence was in high proﬁle at this year’s premier auto shows.

2008 Buick Enclave coming this summer

High-Profile Product Introductions GM’s ongoing and dramatic product resurgence was in high profile at this year’s premier auto shows. Exhibitions in Detroit, Chicago, Los Angeles and New York provided the stage for several all-new entries by GM. 2007 Cadillac STS coming this summer

2007 Saturn Aura in showrooms now

BUICK With the debut of the 2008 Enclave, Buick’s first luxury crossover SUV creates its own niche in the marketplace. It also establishes the hallmark traits of future Buicks, by emphasizing elegant interior and exterior

design, coupled with quiet, comfortable, well-crafted interior, and powered by one of GM’s most powerful V6 engines. CADILLAC The new Cadillac STS conveys more of the design flair that has become a Cadillac signature. Distinctive features, such as the dual-textured, multifaceted grille, chromeplated door handles and the addition of polished-aluminum three-inch exhaust tips, give this luxury performance sedan a more sophisticated appearance. CHEVROLET The 2008 Malibu offers a new take on Chevrolet’s midsize car strategy. The clean, tailored design of the

all-new Malibu, along with great performance and fuel economy, gives Chevrolet a stylish package that stacks up well against the Toyota Camry and other competitors in this important segment. GMC The all-new Acadia crossover combines seating for up to eight with the capability of an SUV with a smooth, car-like driving experience. A comprehensive safety system includes six standard air bags and standard StabiliTrak electronic stability control system with rollover mitigation technology. SATURN The refined design of Saturn’s new Aura represents another step in the brand’s revitalization. This fun-to-drive midsize sports sedan represents the first application of a frontwheel-drive, six-speed automatic transmission. Aura received an early endorsement with its selection as Car of the Year at the North American International Auto Show in Detroit (for a list of other notable GM awards, see Page 8.) n

2007 Saturn Outlook in showrooms now

Saturn Outlook Outperforms the Competition When compared to the Honda Pilot, the volume leader in the crossover segment, the Saturn Outlook has clear advantages. Outlook is bigger, has more interior flexibility, a more attractive interior and exterior, and more standard equipment. It also provides a quieter ride and a better warranty. Importantly, Outlook also has better fuel economy with 26 miles per gallon on the highway while the Pilot just gets 24.

And the clincher? The Outlook is comparably priced, yet comes standard with a 3.6L engine that produces 270 horsepower mated to a 6-speed transmission – as compared to the Pilot’s 244-hp 3.5L engine and 5-speed transmission. The fact is, GM is introducing superior products that can stand up against very formidable competition. n

The Outlook offers seating for eight and safety all around.

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2008 Chevrolet Malibu coming this fall

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2007 GMC Acadia in showrooms now

7/13/07 12:16:30 PM

PRODUCTadvantage

GM Product Awards Cadillac STS

GMC Acadia

Forbes.com: “America’s Fastest Cars” (2007)

Consumer Guide: “Best Buy, Midsize SUV Category” (2007)

Chevrolet Malibu The Car Book & Center for Auto Safety: “Best Bet, Intermediate Category” (2007)

Chevrolet Silverado

Motor Trend “2007 Truck of the Year” Recently, GM products have claimed a roster of more than 250 awards. Here is just a snapshot: Buick Enclave Kelley Blue Book & Edmunds.com: “Cars Worth Waiting For” (2007)

Kelley Blue Book & Edmunds.com: “Cars Worth Waiting For” (2007) Insurance Institute for Highway Safety: “Top Safety Picks, Silver Award” (2006) Chevrolet Silverado Motor Trend: “2007 Truck of the Year” North American International Auto Show: “2007 Truck of the Year” Car and Driver: “Best Pickup of 2007”

MotorWeek: “Driver’s Choice Award, Best Crossover Utility” (2007) Saturn Aura North American International Auto Show: “2007 Car of the Year” BusinessWeek: “Best Production Car” (2007) Kiplinger’s Personal Finance: “Best New Car, $20,000 - $25,000 Category” (2007) Saturn Outlook Consumer Guide: “Best Buy, Midsize SUV Category” (2007) MotorWeek: Drivers’ Choice Award: “Best Crossover Utility” (2007) U.S. News & World Report: “Best Overall ‘Alternavans’” (2007)

Debunking The “Quality Gap” Myth Perception is reality, we’re often told. But what happens if the perception is wrong? Recent studies show that many consumers still believe that GM continues to lag behind its foreign-based competitors in quality. The truth is today GM is building the highest-quality vehicles in our 99-year history, as our cars and trucks have achieved worldclass levels. In its 2006 Initial QualSM ity Study , J.D. Power and Associates ranked GM highest in initial vehicle quality across two major segments: the large car and large pickup categories. And GM leads the assembly plant category with a fifth consecutive Gold Plant Quality Award for its facilities in North and South America.

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What’s more, GM continues to build value for customers. For

Bob Lutz, GM’s vice chairman of Global Product Development, has promised a “product renaissance” for GM. The shining proof can be found in award-winning products such as the Chevrolet Silverado (left) and Saturn Aura.

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instance, OnStar® has become standard equipment on nearly every vehicle. And the addition of GM’s 100,000mile powertrain limited warranty – which includes roadside assistance and courtesy transportation – offers the industry’s best coverage. Simply put, our cars are better-priced, better-equipped, and get great fuel economy. With attractive product styling, dramatically improved interiors and more standard features, GM believes it has the best value proposition in the marketplace. The smart choice is now the General Motors brands, and we want more customers to realize that. You can help by telling your friends that GM is eliminating the quality gap and changing consumer perceptions everywhere. n

2007 Models. Whichever comes ﬁrst. See dealer for limited warranty details.

THE BEST COVERAGE IN AMERICA.

100,000-mile 5 Year Powertrain Limited Warranty

100,000-mile 5 Years of Courtesy Transporation +

100,000-mile of 5 Years Roadside Assistance

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Forbes.com: “Most Fuel Efficient Luxury Cars” (2006)

7/13/07 12:16:37 PM

CLUBnews

FAMILYFirst

A timely tip from retiree John C. Eiden Jr. (left) to his new neighbor, Harl Romine Jr., resulted in one happy Buick Terraza owner – and another important sale for GM.

Perhaps it was the 34 years as a salesman for Service Parts Operations’ ACDelco group. Then again maybe it’s just his natural enthusiasm for GM. Whatever the case, John Eiden is personally responsible for helping at least six people become proud owners of GM products at a great price last year through the GM Supplier Discount for Friends program (formerly the GM in the Driveway program.) “It’s not something I have to think about doing,” said the GM retiree from Chantilly, Va. “I’m just a big believer in GM.” One example: A new neighbor moved in across the street from

Eiden and mentioned going to a nearby foreign car dealership to look for a new van. Eiden simply suggested some GM options and later that week, the neighbor drove up in a new Buick Terraza. “I point out that GM offers a lot of car for the money and that our quality has improved immensely in recent years,” he added. Eiden said he meets many new people socially now that he’s enjoying retirement. And he never fails to “plant the seed of an idea” if ever the topic turns to buying automobiles. “GM was good to me for all those years,” he said. “I like to think of it as a way I can give something back.” n

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Share the GM Discount with Friends How to share the GM Supplier Discount with GM Supplier Discount for Friends:*

tion number, or call the automated phone system at 1-800-235-4646.

1) Ask for your friend’s date of birth and the last four digits of his/her Social Security number.

3) Tell your friend to simply take the authorization number to a participating GM dealer to receive the GM Supplier Discount price.

2) Log on to www. gmfamilyfirst.com and choose “GM Supplier Discount for Friends” from the left navigation menu to get an authoriza-

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Did you know? If your family members, friends or neighbors have any questions or concerns that they are not able to resolve on

their own, you have special access to customer assistance. Just call our Ambassador 2 Customer Assistance line at 1-800-235-4646. Dedicated agents will partner with our dealer organization to provide assistance. n

1-800-235-4646

Ever hear the expres sion “one hand washes the other”? That’s an apt description of the kind of working relationship that exists among some retiree clubs and GM dealers. Dealers know that GM retirees are among the most loyal of the GM constituent groups. In addition to being reliable customers, GM retirees are known to be credible and persuasive when it comes to promoting GM products to friends and acting as ambassadors for the corporation. Retiree clubs, in turn, benefit from the relationship with local dealers. “Our club decided to focus on GM products in 2007,” said Don Van Roekel, president of the GM Retirees of Arizona. “Dealers bring vehicles to every meeting so our members can all take a close-up look and ask questions.” Olive MacLeod, president of Florida Suncoast GM Alumni Club, said GM dealers in the Sarasota area have helped them out by listing retiree club meetings as part of their print advertising – which helps get the word out to Florida’s transient “snowbird” population, who otherwise might not receive notice. According to Bill Webster, general sales manager at Sarasota’s Coast Cadillac, the retiree connection is a strong one. “We’ve helped them out with publicity and they, in turn, are some of our most dependable customers,” he said. n

When retiree groups and GM dealers join forces, both stand to beneﬁt. In Sarasota, Fla., salesman Dennis Boslet’s Coast Cadillac has been an enthusiastic sponsor, giving presentations and donations to the Florida Suncoast GM Alumni Club, led by Olive MacLeod.

GM Retiree Clubs Seek Members Retiree clubs in the following locations are welcoming new members:

Phoenix, Ariz.

Flint, Mich.

San Diego, Calif.

Lansing, Mich.

Denver, Colo.

Pinehurst, N.C.

Sarasota, Fla.

Rochester, N.Y.

Salaried Retirees (623) 584-8455 dvrdvr_09@yahoo.com

Buick Salaried Retirees (810) 655-2982 lanningbr@aol.com

Salaried Retirees Salaried Retirees (619) 267-1080 (517) 676-2676 rngard478@hotmail.com jbond@msu.edu Salaried and Hourly (303) 771-4780 albertstrand@aol.com Salaried Retirees (941) 383-0054 olivmcl@aol.com

Salaried and Hourly (910) 673-1461 amac17@earthlink.net Salaried and Hourly (585) 671-8184 jhbrouss28@aol.com

Retiree club meetings, such as this one in Phoenix, Ariz., are great opportunities for local GM dealers to show off new hot products.

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GM’s Friendly Neighborhood Ambassador

Retiree Clubs, GM Dealers Form Strong Connections

7/13/07 12:17:09 PM

YOURhealth

Generic Drugs – Your Questions Answered such as colors or flavorings, that do not affect their performance, safety or effectiveness. By law, generics cannot look exactly like their brand-name counterparts already on the market.

Personalized Assistance for Managing Health Care There’s a new Integrated Health Management Program available to GM retirees who currently are not receiving Medicare and are not enrolled in an HMO health plan. This program, provided by Blue Cross and Blue Shield and UnitedHealthcare, offers confidential and free services like precertification, disease management and case management.

Understanding health care benefits can be confusing. The services offered by the new health management program provided by your specific health care provider can help answer all of your questions and explain your coverage options. These programs are made through selfenrollment and health plan outreach. They’ll also help you navigate through today’s health care system.

Are you battling a chronic or complex condition?

Would you like to speak with a “real” person about your specific health needs?

Because your health issues don’t always fit into a 9 to 5 schedule, this new health management program offers a 24-hour nurse line that’s ready to address your health care concerns when you need it most.

These days, personalized service –like speaking with a real person – may seem to be a thing of the past. However, this new health management program is designed with you in mind because it provides health and wellness information that’s tailored for your individual needs.

If you are dealing with a condition like diabetes, asthma or heart disease, health management professionals can help you understand the latest available treatment options and coordinate specialized care with your physician or other health practitioners. Would you like access to a nurse 24 hours a day?

Whether you need complex disease management, an individualized wellness plan or someone to help you understand your benefit options, the new Integrated Health Management Program can provide the personalized care that you need to make informed decisions. n

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To find out more about this program, call the carrier on your ID card. Anthem – Blue Cross and Blue Shield: 360-Degree Health Support 1-800-311-2924

Blue Cross and Blue Shield of Michigan: Blue Health Connection 1-800-775-BLUE (2583) Hearing Impaired

UnitedHealthcare Health Savings Account Plan: Personal Health Support 1-800-261-3294

UnitedHealthcare (all other United plans):

Personal Health Support 1-800-241-9964

1-800-240-3050 If you choose not to participate in the programs offered, you will need to contact your carrier and notify them directly. In order for the carriers to contact members, we will be providing carriers with members’ phone numbers in order to conduct adequate outreach.

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Is my generic drug made by the same company that makes the brand-name drug?

If you’re considering switching over to a generic drug, here are some answers to make your decision easier: What is a generic drug? When a brand-name drug’s patent expires, generic versions of the drug are approved for sale. Generics work exactly like their brandname counterparts in dosage, strength, performance and use. And because they’re FDAapproved, they must meet their same quality and safety standards.

How does the FDA ensure that generic drugs are as safe and effective as brandname drugs? All generic drugs undergo a process that scrutinizes their ingredients and performance. The FDA also conducts periodic inspections of the manufacturing plant and monitors drug quality– even after approval. If generic and brandname drugs have the same active ingredients, why do they look different?

Possibly. Brand-name firms are resposible for manufacturing approximately 50 percent of generic drugs. Are generic drugs always made in the same kind of facilities as brand-name drugs? Yes. All generic drugmanufacturing facilities must meet FDA standards. The FDA conducts about 3,500 inspections a year to ensure its standards are met. n Source: U.S. Food and Drug Administration

Generic drugs look different due to certain inactive ingredients,

Generic Norvasc® Now Available If you’ve been taking the brand-name drug Norvasc® (commonly used to treat high blood pressure and angina), you can now get its lowercost generic equivalent, called amlodipine. Please check with your doctor and consider switching to this new generic.

Be sure to watch for additional new generic drugs expected in 2007, including those for Ambien® and Paxil CR®. For the latest listing of approved generics, visit the U.S. Food and Drug Administration (FDA) Web site at www. fda.gov/cder/org/ approvals n

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New Integrated Health Management Program

7/13/07 12:17:15 PM

ENCOREtidbits

YOURhealth

Almost

Health Care Cap

Then & Now

When GM announced a salaried retiree health care cap in 2006, GM’s health care team went on the road to explain the details of this move in more than 25 face-to-face retiree meetings.

In 1950, the U.S. per capita spending on health care was less than $100 a year – or $500 in today’s dollars. Last year it was almost $6,000. n

You have quality health care options. GM is addressing cost pressures while allowing retirees the security and protection of quality health care benefits.

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•

The cap does not place a limit on you as an individual. The cap applies to the group as a whole (i.e., to all eligible salaried retirees, surviving spouses and their dependents) and not on an individual basis. This means your coverage will not be cut off midyear because you exceeded a personal cap. Certain types of coverage, however, will continue to be subject to annual or lifetime maximums, such as dental and orthodontia.

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1,300

TAX CREDIT The IRS certified that Saturn Aura Green Line hybrid buyers qualify for a tax credit of $1,300. n

($500 in today’s dollars)

1950

Remember, everyone has a role in keeping costs in check. Making informed choices about your care helps keep costs down for both you and the company. Here are some questions that retirees asked during the meetings: will GM decide Q: How what changes to make each year? the costs for the A: Ifyear are expected to be higher than the cap amount, GM will adopt costsharing changes. This means that cost-sharing will be applied in higher deductibles, prescription co-pays, co-insurance and/or out-of-pocket maximums during annual enrollment. If actual costs are below the capped amounts, GM will provide relief on cost-sharing.

2006

New email address? Haven’t signed up yet? Go to the web site to register.

will I learn Q: How about changes each year? in the past, you A: As will learn about changes during annual enrollment. are other Q: What companies doing? a cap A: Industry-wide, on health care is not a major development. GM reviewed what other companies were doing in the auto industry and in other business sectors and found that many companies have already made changes – or eliminated retiree health care altogether. In fact, 63 percent of large private-sector companies have a cap on their contributions to retiree benefits. n

www.gm.com/retirees/signup.html Do you have a privacy service from your email provider? Enter this address to make sure Retiree eNews comes through: gmretiree.enews@ email.graction.com. n

The 50,000th person to register for Retiree eNews was Maria Alice Olsen, whose late husband retired from the Terex Division, in Hudson, OH. Alice lives in Brazil and recently traveled to Israel. No matter where she goes in the world, she stays upto-date on GM news! n

Go Further on Every Tank of Gas GM has the most models with an estimated 30 mpg highway or higher based on 2007 EPA Highway estimates. n

30 MPG

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•

The cap will require you to pay more for your health care as overall costs increase. When GM determines that costs will exceed capped levels, changes that reduce coverage or shift costs to retirees will be put in place.

$100

Since the team was unable to conduct these meetings everywhere, we want to share the key points:

•

$6,000

7/13/07 12:17:17 PM