Economically, we believe in participating as a good corporate citizen in every market where we do business—creating jobs, seeding technology, contributing tax revenues, improving standards of living, supporting sustainable economic development. In 1977, we were proud to become the first company to adopt Rev. Leon Sullivan’s “Sullivan Principles” and help hasten the end of apartheid in South Africa. Now, in 2004, we are thrilled to be returning full-time to South Africa to help build the nation’s auto industry and the promise it represents for the citizens of South Africa.

Socially, GM has a long history of supporting the communities where we do business, including minority communities. In 1968, GM established the auto industry’s first supplier diversity program. Since then, we have purchased more than $44 billion in goods and services from minority suppliers, including $7.2 billion in 2003 alone. In 1972, we were the first domestic automaker to institute a minority dealer development program. Today, we’re proud to have more than 400 minority-owned dealerships, more than any other company in the business.

Environmentally, we continue to minimize the impact of the automobile on the world around us. In the U.S., we’ve launched a hybrid propulsion program focused on larger vehicles, like full-size trucks and SUV’s, because that’s where most of the fuel is consumed in the U.S. We’re currently conducting pilot programs in nine U.S. cities with our innovative GM hybrid transit buses, and in May 2004, delivered the first of 235 of these buses to King County, Washington. Our hybrid buses can deliver up to 60 percent better fuel economy than traditional transit buses, and could save as much as 750,000 gallons of fuel every year for King County. We continue to invest heavily in the development of hydrogen fuel cells. In June 2004, our HydroGen3 demonstration vehicle established a new distance record for fuel cell technology, travelling more than 6,000 miles in a 38-day marathon drive across Europe. And we continue to improve the environmental performance at our plants and facilities by increasing recycling and reducing waste generation, water and energy use, and emissions. We have established a goal of reducing our global greenhouse gas emissions from our facilities by 8 percent between 2000 and 2005, and we are making steady progress toward that target.

At GM, we will continue to work toward innovative solutions to our global stakeholder’s economic, social, and environmental challenges. We invite you to review our progress in our 2004 Social Responsibility Report, and to join us as we extend our practice of doing business the right way.

Rick Wagoner
Chairman and Chief Executive Officer