EMPLOYEES

This is a general overview for information only. Subject to any restrictions imposed
by the court, the terms of the applicable benefit plans will control. General Motors
reserves the right to amend, modify, suspend, increase, decrease or terminate each
of its employee benefit plans or programs.

How will this affect my job?

We are t aking steps necessary to minimize the impact to current employees’ wages
and benefits. Employees will receive uninterrupt ed wages, including vacation and
benefits. Also, GM will maint ain its ot her benefit plans, such as its pension plans and
healt h care plans as spelled out in our wage motion, in their ordinary course. In fact,
it is GM’s objective that employees cont inue to receive regular compensation and
benefits to as great an extent as possible.

Should I keep coming to work as usual?

Yes. You should keep working according to your usual schedule. Your local
leadership will advise you of any further changes.

Does the company have enough cash to meet its payroll and benefit obligations?

During this process, you will continue to be paid and to receive benefits without interruption.

Will this filing affect payroll? When and how will I get my paycheck?

We will cont inue to meet our payroll obligations, as well as business expense
reimbursements, to all our employees on an ongoing basis, and in the usual manner.

Which employees will become employees of the New GM?

It is expected that GM employees as of the time of the launch of New GM will

become employees of the New GM.

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What happens to my job if I work in an area that will not become part of the New
GM?

During a transition period, we will need to ensure that the parts of our business that
will not become part of the New GM operate smoothly while they are sold or
wound-down in an orderly and customer-focused way. GM employees will become
part of the New GM.

Will there be additional salaried headcount reductions as a result of the filing?

Yes. In line with our structural cost reductions and the reinvention of our company, GM will
substantially reduce salaried employment in North America, from its current 32,300 to
approximately 27,200. Almost all of these reductions are expected to take place in 2009. In
the U.S. approximately 4,000 or 15% of GM’s 27,400 salaried employees will be impacted.
Additional information will be provided about our plans in t he near future.

What happens to the hourly workforce between now and the launch of New GM?

Between now and t he launch of the New GM, we will still be taking difficult but
necessary actions that are critical to its long-term viability. As GM announced on
April 27th, hourly employment levels will be reduced from about 61,000 in 2008 to
40,000 in 2010, and level off at about 38,000 starting in 2012. This planned
reduction is primarily the result of the previously discussed operational efficiencies,
nameplat e reductions, and plant closings. In addition, the terms of the recently
negotiated Addendum t o the UAW-GM National Agreement will be implemented.

Will employees continue to receive their health care benefits?

Yes. Employees will continue to receive healt h care benefits without interruption.

How does this affect the assembly operations downtime that was announced on
April 23, 2009?

On April 23, 2009, GM scheduled multiple down weeks at 13 assembly operations in

North America to more closely align inventories with even more conservative
market assumptions. Under that plan, approximately 190,000 vehicles will be
removed from GM’s North American production schedule in t he second and early

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third quarter of this year. The scheduled downtime is still in place at this time, and
you should continue with the schedule you have been provided. Your supervisor will
contact you should there be any changes to your schedule. Again, GM will continue
to compensate employees as usual under its policies and collective bargaining
agreements for downtime.

Does this affect employees who are not part of the assembly operations downtime?

No. You should keep working according to your usual schedule. Your local
leadership will advise you of any further changes.

Is my S-SPP or PSP 401(k) part of the GM bankruptcy?

Amounts contributed to a 401(k) plan (S-SPP or PSP) by or on behalf of a participant

constitute assets of the 401(k) plan and are held in trust for the benefit of the participant.
The participant’s 401(k) plan assets do not belong to the plan sponsor (GM), and are
segregated and separate from the plan sponsor’s (GM's) assets. Therefore, a participant’s
401(k) plan (S-SPP or PSP) assets, including any employer contributions, are not property of
General Motors and cannot be reached by GM creditors in a bankruptcy proceeding.

Where can I get more information about the S-SPP and PSP Plans?

Information regarding t he GM S-SPP and PSP Plans is available by going to gmbenefits.com

and clicking on “ GM Savings Plans 2009 Prospectus.”

What is the difference between a qualified and non-qualified pension plan?

The GM Hourly-Rate Employees Pension Plan (HRP) and GM Retirement Program for Salaried
Employees (SRP) are qualified pension plans. A pension plan is “ qualified” if it is “ tax
qualified” . To be “ t ax qualified” it must satisfy a number of important requirements
including that the employer must make contributions to the plan to fund benefits and the
contributions must be held in an independent trust.

The Executive Retirement Program (ERP/ SERP) is a non-qualified pension plan. The ERP
provides benefits in excess of “ tax qualified” plan limits. The benefits are not funded,
meaning there are no assets in a pension trust to pay those benefits.

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The sale agreement references necessary reductions under salaried plans, executive
plans and non-UAW hourly plans. What does this mean?

General Motors is working with t he U.S. Treasury to reduce some retiree benefit
obligations by roughly two-thirds. This reduction will impact salaried ret iree life
insurance, salaried retiree health care, executive non-qualified pension, executive
retiree life insurance and non-UAW hourly life insurance and we are still working on
how to accomplish this in the most appropriate way. We are currently in discussions
with the U.S. Treasury regarding the reductions and we will communicat e to the
affected employees and retirees as soon as this matter is resolved. It is our intent to
address this matter as quickly as we can.

I received a legal notice from the claims agent. Where can I get more information about
this notice?

Please visit t he Creating the New GM site on the company’s intranet site (Socrates) for more
information. Employees can reach this site by going to http:/ / myGM.gm.com.

I have noticed recent changes in GM stock price and volume. What’s happening?

GM management has noticed a recent elevation in the volume and price of its common stock.
While GM does not control the market or its stock price, GM management strongly believes
that any recovery for the common stockholders in the chapt er 11 bankruptcy process is highly
unlikely, even under the most optimistic of scenarios. Stockholders of a company in chapt er 11
generally receive value only if all claims of the secured and unsecured creditors are fully
satisfied.

Who can I contact with additional questions?

ADDITIONAL ANSWERS TO EMPLOYEE QUESTIONS ARE POSTED ON SOCRATES

EMPLOYEES MAY ALSO CALL 1-800-489-4646

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