GM Thailand and ASEAN Plan for Future as Part of New GM

• GM Thailand and ASEAN Operations Function Normally
• All GM Thailand and ASEAN Customer Programs Continuing Uninterrupted
• GM Expedites Reinvention via a court process in the U.S.

Bangkok (June 2, 2009) – In response to the recent announcement by General Motors Corporation (GMC) in the US, GM Thailand and ASEAN Operations held a media briefing session to provide an update on its position in Thailand and ASEAN, relative to its parent company in the US.

Mr. Steve Carlisle, President of General Motors Southeast Asia Operations and Chevrolet Sales Thailand and Mr. Antonio Zara, Vice President of Sales, Marketing and Aftersales Service for Chevrolet Sales Thailand, reaffirmed that GM Thailand and ASEAN operations do not expect any impact to its business after GMC announced it would accelerate its reinvention through a court supervised process in the United States.

None of GMC’s operations outside of the U.S. are included in the court filings and these filing have no direct impact on GMC’s non-US operating plans and non-US operations. Under the agreement of the filing, several of GMC’s strongest operations and brands will be sold to a ‘New GM’.

“GM Asia Pacific, including GM Thailand and ASEAN, will be an important part of the ‘New GM’ and will maintain normal business operations. As I’ve mentioned before, we are separate entities from GMC and have the capability, resource and technology to continue our operations,” said Carlisle.

He added, “’New GM’ is not the official name of the company which GM Corp’s strongest operations and brands will be sold to. It’s just a ‘working title’ for now. Nevertheless, GMTH customers can rely on their Chevrolet cars and trucks, service and warranty, as they always have, while employees and suppliers to GMTH will be paid as usual.”

Carlisle also reaffirmed GM Thailand’s focus on continued growth in Thailand and the ASEAN region, and cited GM Asia Pacific’s growth as an example of the potential for growth in this region.

“Despite the economic crisis, GM Asia Pacific recorded unprecedented growth in the first quarter of this year, and all indications point to the continuation of this trend for the rest of 2009,” Carlisle said.

In addition to growth, GMTH will also continue its focus on leading in alternative fuels and future propulsion and powertrain technologies.

“We will continue to offer great products that represent the best in automotive technology, such as our first global compact car, the Chevrolet Cruze. We will also continue to play our role in building Thailand as the hub of the automotive industry in the ASEAN region,” Carlisle said.

He continued, “Our plans for alternative fuels and greener, industry-leading technologies remain on track. For example, our progress on the Chevrolet Volt is not affected and everything regarding the Volt remains on schedule.”

According to Mr. Carlisle and Mr. Zara, it is important for GM’s non-U.S. audiences to understand that under U.S. law, a Chapter 11 bankruptcy filing does NOT mean a company is liquidating, becoming insolvent or closing down its business. Under Chapter 11, a company continues to operate, and management continues to lead the business. Even though this legal process does not exist in most other countries, it is a well-established process in the U.S., and many U.S. companies have successfully utilized the Chapter 11 process.

Mr. Zara said, “We will put the customer first in all that we do, and we will be covering all bases to ensure that customers can continue to have total confidence in GM. We have always taken care of our customers and stood behind our products and we will continue to do so.”

“Customers of GM Thailand can rest assured that warranties and all other customer obligations will be honored without interruption. We will also increase our emphasis and focus on our after-sales service. In other words, if you have bought or are planning to buy a Chevrolet vehicle, you know you’ve made the right choice. In fact, we will soon launch a campaign aimed directly at addressing the issue of enhancing sales, support and after-sales service,” Zara said.

Chevrolet will remain as the core brand and focus of the company in ASEAN.

GM Reinvention Summary
Meanwhile, GMC yesterday announced that it has reached agreements with the U.S. Treasury and the governments of Canada and Ontario to accelerate its reinvention and create a leaner, stronger ‘New GM’ that is positioned for a profitable, self-sustaining and competitive future. This agreement must be approved and completed through a court-supervised process that is covered by Chapter 11 of the U.S. Bankruptcy Code.

Under the agreement, a new company that includes selected operations and brands from around the world will soon be launched. The ‘New GM’ will accelerate the strong advances that have been made in developing award-winning cars and trucks. Worldwide, the ‘New GM’ will remain a leader in the areas of fuel efficiency and advanced green technologies; quality and reliability; appealing designs; customer service; and, above all, value.

GMC will sell substantially all of its assets to the New GM with the support of the U.S. Treasury, the United Auto Workers (UAW) and a substantial portion of GM’s unsecured bondholders. GM’s management team will operate the New GM.
It is expected that the New GM will be launched as a separate and independent company from the current GM in about 60 to 90 days.
“Today marks a defining moment in the reinvention of GM as a leaner, more customer-focused, and more cost-competitive company that, above all, can quickly generate winning bottom-line results,” said Fritz Henderson, GMC President and CEO. “The economic crisis has caused enormous disruption in the auto industry, but with it has come the opportunity for us to reinvent our business for the next 100 years. We are going to do it right and do it quickly.”

“The court-supervised process we are pursuing provides us with powerful tools to accelerate and complete our reinvention, as well as strong safeguards for our customers and our business. Our products are our future, and our lineup of new cars and crossovers are a great foundation for success. The ‘New GM’ will remain a long-term global leader in the development of fuel-efficient and advanced-technology vehicles such as the Chevrolet Volt extended-range electric vehicle, which will be introduced in China in 2011.”

In order to provide more information about GM’s court-supervised process, GM has launched a dedicated online website. Materials are available in Thai and English at www.new-gm.com/thailand-asean.