GM Is Playing a Proactive and Expansive Role in Reducing the Impact of the Automobile on Our Environment

GM is playing a proactive and expansive role in reducing the impact of the automobile on our environment

Our Products General Motors 2004/05 Corporate Responsibility Report Our Products Overview

General Motors is committed to providing its customers with compelling products – products that reflect strong design themes, emphasize safety and quality, offer Key Issues fuel efficiency and low emissions, and meet customers' demands for performance Highlights and utility. Every day, GM employees strive for new and innovative ways to • Leading quality improve the vehicles the company builds and sells. performance >> • 350 Hybrid buses now in use >> What’s in the Chapter? • Continuous safety - GM's Vehicle Strategy Responsible Vehicle Use before, during and after GM's "gotta have" product strategy involves GM encourages drivers to use a crash >> delivering continuous improvement in Design, their vehicles responsibly, • GM's Fuel Economy/GHG Quality, Safety, Emissions, Fuel Economy, and both to reduce environmental emissions calculator >> Vehicle Recycling. impact and to increase the safety of vehicle occupants, Challenges Advanced Engines pedestrians and other road • Reducing vehicle New technologies such as Displacement on users. emissions >> Demand and Twin Port are the latest steps to • Expanding the range of enhancing engine efficiency. GM's latest Vehicle Design Hybrid vehicles we sell >> generation of cleaner diesel engines includes the GM's life-cycle thinking world's first diesel to meet the latest Euro 4 approach and initiatives such emission standards. GM also is introducing more as the Oil-Life System or lifecycle analysis (LCA) vehicles that can run on alternative fuels such as studies have helped GM make informed ethanol, LPG and CNG. decisions about materials, processes and implications for end-of-life disposal. This section Hybrids focuses on Design for Environment as well as Current production hybrids include full-size GM's leadership in design and how it supports pickups and hybrid derivatives for city buses, our technology and research towards more with more hybrid models coming to market over sustainable forms of mobility. the next several years. Vehicle Quality Fuel Cells Quality has been and will continue to be one of GM's goal is to validate and design a fuel cell GM's highest priorities. The latest performance propulsion system by 2010 with durability and results show that GM is attaining industry performance competitive with current internal leadership in many benchmarks of initial vehicle combustion systems that ultimately can be mass quality and long-term vehicle dependability. GM produced affordably. The company's latest tied for first in the Strategic Vision 2004 Quality concept, the Sequel, brings GM one step closer Study. According to J.D. Power, GM finished to this reality. second overall in Sales Satisfaction, was highest among multi-divisional manufacturers and Efficiency & Emissions scored above the industry average for all its From saving fuel by making engines work divisions. Buick and Cadillac ranked in the Top 5 smarter to smoothing transmission function for for Service Satisfaction according to J.D. Power; better performance and efficiency, GM is using second among multi-divisional manufacturers. technology to improve the internal combustion GM's plants earned the top three places in J.D. engine (ICE) while working toward the hydrogen Power's 2005 Initial Quality Study, and six of the future. GM has taken and is planning a wide top ten plants overall were GM facilities. range of actions to continue to improve vehicle fuel economy and emissions performance.

General Motors 2004/05 Corporate Responsibility Report 4-1 Our Products Overview

Vehicle Safety GM's focus is on safety at all times – before, during and after a crash. Only GM is making safety technologies such as Stabilitrack and OnStar available across its entire vehicle line-up. Because road safety also depends on safer drivers and safer roads, GM is also involved in initiatives in these areas.

Vehicle Recycling GM continues to develop end-of-life vehicle (ELV) infrastructures, designing its vehicles to be as recyclable and recoverable as possible, and provide ELV dismantling manuals and environmental brochures. The section gives details about regional efforts to meet vehicle recycling goals, identifies and explains the materials used to optimize recyclability and helps develop the market for recycled materials.

General Motors 2004/05 Corporate Responsibility Report 4-2 Our Products Our Vehicle Strategy

Key Issues and Challenges on producing hybrids first for vehicles that consume the most fuel. GM believes hybrid The automobile has contributed greatly to the buses can deliver the best benefits because world's prosperity. People rely on motor vehicles conventional buses contribute to high levels of for personal and business travel. Automobiles air pollution and are less fuel-efficient. help us work, take part in the community and transport passengers and goods. Sustainable Mobility Project But with over 700 million vehicles on the road, Working to make transportation more they have a significant impact on energy sustainable is one of the key challenges facing resources, the environment, health and safety. automotive manufacturers.

Global vehicle numbers are anticipated to Over the years, GM has focused on partner double by 2030 to a total of about 1.5 billion projects such as the Sustainable Mobility project vehicles. That fact presents great growth and run by World Business Council for Sustainable sales opportunities but it also presents major Development (WBCSD). The key issues addressed challenges. in this project include accessibility, congestion, safety, public health, greenhouse gas emissions The key product-related corporate responsibility and resource use. The project identified seven issues GM faces are: goals that, if achieved, would contribute significantly to the sustainability of mobility. The * Emissions of conventional pollutants. results of the project included defining what More on emissions >> areas of work were needed to be developed and • Fuel Economy. what roles public and private sectors should More on vehicle fuel economy >> assume. • Safety. More on safety >> The actions GM is taking to meet these GM intends to be at the forefront of efforts to challenges are outlined throughout this report. address these challenges. But it won't be easy. One of the direct results of this project has been GM's involvement in the Global Road Safety There are other challenges too. While GM has Partnership aimed at improving road safety in promoted responsible vehicle use with attention developing countries where an estimated 1.2 to fuel economy and safety, it is clear that more million people die in road crashes each year. needs to be done in all the regions where it More>> operates. GM also has improved its responses to stakeholder concerns over specific mobility GM Global Technology issues such as the growth of SUVs. GM is evolving the way it accounts for the impact its Strategy business has on society and the way it responds GM approaches the application of new to the different views of external stakeholders. technology to its vehicles with two simple and GM's governance processes describe this in more direct principles in mind: detail. • GM needs to offer vehicles that people want Control and Influence to buy. Only if people buy new technologies There are many challenges. In some areas GM in large volume will they become affordable has control in others it can only influence the and achieve the company's business outcome. GM's strategy must recognize the lim- objectives. In today's competitive market, its of its control or influence and focus its success only comes from selling vehicles at a resources on making the greatest positive price customers will pay and by keeping impact. An example of this approach is the focus production costs in line with those prices.

General Motors 2004/05 Corporate Responsibility Report 4-3 Our Products Our Vehicle Strategy

• GM must meet its basic business objectives. Fuel Economy and Emissions Technology cannot be sustained if it must be heavily subsidized. Advanced Propulsion Technology Strategy

Vehicle Safety GM strives to make each new model safer than the one it replaces. Hydrogen GM's vehicle-based safety strategy focuses on: Fuel Cell Hybrid Electric • Before a crash - technologies designed to Reduced Vehicle Vehicles help the driver in avoiding potential crashes; Emissions and Increased Vehicle Incremental Internal • During a crash - designs and technologies Fuel Economy Combustion Engine Hydrogen that help reduce the injury potential of a & Transmission Infrastructure crash; and Improvements • After a crash - systems that can help alert emergency rescue to a crash and help Today Tomorrow provide information to aid rescue specialists. GM has adopted a two-stage strategy for Quality improving fuel economy and emissions. The integrated quality strategy unites all parts of GM in initiatives to drive improvement Today – GM is continuing to innovate current toward common quality goals. Business plans in engines and technology and will add more mod- each functional group, such as Engineering, els to its current line-up of hybrid trucks and Purchasing, Marketing, and Manufacturing buses. provide linkage to the quality strategy and clarify the role each organization plays in the Tomorrow – GM is working toward selling fuel attainment of the quality goals. This focus cell vehicles with zero emissions and increased is generating real results. Latest surveys fuel economy. are showing increased quality, above industry-average performance and some Click here to read more on the total emissions class-leading results. from vehicles dimension (pdf - see page 33) >>

Design Future Vehicles Timeline>> Guided by the global life cycle analysis subcommittee, GM's engineers around the world Vehicle Recycling share crucial information about "design for GM's goal is to improve the end-of-life vehicle environment", life-cycle analyses of different (ELV) infrastructure through partnerships. materials and vehicle recyclability. GM design Across North America GM continue to develop engineers focus on designs that reduce fuel new technologies through the Vehicle Recycling consumption and emissions, improve safety and Partnership. The goal in Europe is to increase the facilitate recycling. Design is a major part of amount of recycled materials used to 20 percent GM's global operations and product by optimizing production procedures. This is development approach. GM employees, working supported by providing all dismantlers with on new design concepts around the world, have information about all removable plastic delivered results such as the Sequel, the first fuel components. Also, General Motors Asia Pacific cell vehicle in the automotive industry to offer has established the process and system required the range and performance people expect from for handling end-of-life vehicle recycling in their current vehicles. Japan.

General Motors 2004/05 Corporate Responsibility Report 4-4 Our Products Advanced Engines

As part of GM's overall strategy to reduce 1.0 TWINPORT ECOTEC engine, consumes only exhaust emissions and enhance fuel economy, 4.8 liters of fuel per 100 kilometers (MVEG GM is improving the internal combustion engine combined cycle), making this the world's most technology used in today's vehicles. These economical gasoline-powered compact car in its innovations also will help GM develop and class. This performance, for which the Corsa Eco bring to market more hybrids and eventually was awarded the best score of "five stars" in the fuel cell vehicles. "Eco Test 2003" from ADAC and FIA, is aided by the highly efficient engine and the Easytronic • Leaner Gasoline Engines automated manual transmission. • Cleaner Diesels • Greener Fuels Premiere of Gasoline Direct Injection at GM Europe While engines are a key area, GM also is The 2.2 Liter DIRECT ECOTEC engine consumes developing and incorporating many other fuel around 6 percent less fuel than the conventional efficiency technologies into its new vehicles. 2.2 liter engine and produces up to 10 percent more torque at lower engine speeds and is Leaner Gasoline Engines available in all models in the Vectra and TWINPORT: Powering the world's most Signum range. economical gasoline-powered compact More on advanced engines from GM Europe >> car in its class Displacement on Demand Displacement on Demand allows a vehicle to run on half its cylinders when full power is not needed. When engine loads demand full power, the system shifts seamlessly without any input from the driver and without any compromise in vehicle performance. Displacement on Demand is already available on the 2005 model year GMC Envoy XL and XUV and the Chevrolet TrailBlazer EXT sport utility vehicles. By 2008, GM plans to have more than 2 million GM vehicles whose V-8 and V-6 engines include this feature. On the U.S.

Opel Corsa Eco

Opel/Vauxhall engineers have designed this intelligent and technically simple solution for reducing the fuel consumption of small gasoline engines with displacement of up to 1.6 liters. The innovation was first introduced in the Astra 1.6 TWINPORT at the beginning of 2003 and there now are three more 1.0-liter, 1.2-liter and 1.4-liter TWINPORT units, which are used in the Agila, Corsa and Meriva models, as well as in the new generation Astra. The top fuel saver is the Corsa Eco which, with its 44 kW/60 hp Chevy TrailBlazer EXT

General Motors 2004/05 Corporate Responsibility Report 4-5 Our Products Advanced Engines

Environmental Protection Agency test Globally, diesel engines are available in many procedure, Displacement on Demand improves different displacements and can be integrated the fuel economy of vehicles with V8 engines by into the smallest car or the largest truck. GM, up to 8 percent. including Opel, Saab and Isuzu, currently offers more than 25 diesel-powered vehicles around Further Developments the world and has the manufacturing capacity GM/Opel engineers also are working on to build 1.9 million diesels worldwide. combinations of gasoline direct injection, variable valve trains, turbo charging and cylinder In the future, diesel usage in the U.S. will shutdown to achieve further reductions in fuel depend on customer acceptance, performance consumption with larger gasoline engines. characteristics, the price of diesel fuel and the ability of diesel-equipped vehicles to comply GM/Opel engineers' latest development is a 1.8 with emissions requirements. ECOTEC engine. The highly efficient four-cylinder gasoline engine, based on a new propulsion Fuel quality (i.e., low sulfur) is another important generation, debuts in the new Zafira and will factor for modern, high-performance diesel later be introduced in the Vectra, Signum and engines. GM's efforts to develop advanced other Opel model ranges. The most important emissions technology has resulted in a diesel advantages of this engine are a power increase engine that emits 70 percent less particulates of up to 14 percent with around 4 percent less and 90 percent less oxides of nitrogen (NOx) fuel consumption. than a diesel engine from 10 years ago. Cleaner Diesels Diesel-fueled Opel ECO Speedster Diesel engines have been dramatically re-engineered to be cleaner and quieter. Diesel engines use about 30 percent less fuel than gasoline engines. That is because the diesel engine operates more efficiently, and diesel fuel provides more power than gasoline, compressed natural gas or ethanol.

Today's new diesel engines use electronic, high- pressure fuel injection to monitor engine performance and vehicle activity, while at the same time optimizing the mix of air and fuel in the combustion chamber. When used with variable injection timing, a redesigned Opel Eco Speedster Concept combustion chamber and turbocharging, clean diesels optimize fuel combustion and reduce the amount of particulates and nitrogen The stunning Opel ECO Speedster concept car oxide emitted. demonstrates the abilities of GM Europe's new generation of diesel engines, powering the car to These vehicles produce fewer greenhouse gas 17 new world records after a 24-hour session emissions than comparable gasoline engine around a test track in Germany. The vehicle models and get significantly better attained: fuel economy.

General Motors 2004/05 Corporate Responsibility Report 4-6 Our Products Advanced Engines

• An average speed of 140.7mph over the ethanol is the most effective near-term pathway 24-hour period, breaking the previous to reducing automotive greenhouse gas class record by 61.4 mph emissions. When processes are fully developed • A top speed of 160.2mph to produce ethanol from bio-mass, greenhouse gases from automobiles could be virtually The ECO Speedster shows that enhanced power eliminated. capabilities can be achieved in balance with ECO efficiency. Greener Fuels Ethanol (E85) GM is the largest producer of E85 flexible fuel vehicles (FFVs) in the U.S. with more than 1 million E85 FFVs on the road. E85 technology is available in some of its most popular full-size pickup trucks and SUVs.

Chevrolet E85 Tahoe

Chevrolet Tahoe E85 Fact Sheet >> CNG and Dual Fuel Vehicles Thanks to the high hydrogen and low carbon content of natural gas, fewer emissions are produced compared to gasoline or diesel engines:

Saab Biopower • Carbon monoxide (CO) emissions drop 50-75 percent • CO2 emissions are only 144g/km (MVEG) In November 2004, Saab announced that it • Hydrocarbons (HC) drop by up to 80 percent would join GM's growing fleet of E85 vehicles • Nitrogen oxide (NOx) emissions are also with the launch of the Saab 9-5 BioPower in significantly lower than with gasoline or summer 2005. diesel, and help to lessen the risk of ozone build-up at ground level. E85, an alternative fuel composed of 85 percent ethanol and 15 percent gasoline, is a cleaner The Opel Special Vehicles (OSV) division produces alternative to petroleum-based fuels and helps the Astra station wagon 1.6 CNG and Zafira 1.6 reduce greenhouse gas emissions. CNG and is Europe's biggest manufacturer of natural gas-powered vehicles. The OSV division is Because the ethanol in E85 is a renewable fuel also the market leader in Germany. In May 2005, made today primarily from corn, it has the Opel launched its third natural gas vehicle, the potential to reduce America's use of petroleum. Combo 1.6 CNG. One way GME supports the nat- GM's "Wells-to-Wheels" energy use and ural gas trend in Europe is through targeted greenhouse gas emissions study shows that information campaigns, for example in Austria a regular CNG newsletter is published.

General Motors 2004/05 Corporate Responsibility Report 4-7 Our Products Advanced Engines

Vauxhall LPG Market leader in UK The Vauxhall Dual-fuel (LPG/Gasoline) lineup offers significant reductions in exhaust emissions, including particulates and oxides of nitrogen. Dual-fuel vehicles provide an immediate opportunity for improved air quality and lower levels of greenhouse gas emissions.

Since Vauxhall's pioneering role in the LPG market over five years ago, both the company and market have gained pace. Vauxhall has been the market leader for over six years in LPG Opel Combo CNG, launched in April 2005 vehicle sales. Cleaner Fuels Mean Reduced Emissions Opel CNG models set new standards in Emissions are a function of both fuel quality and environmental protection and resource-saving emissions control technologies. As automobiles mobility, as highlighted by the Verkehrsclub use more complex and precise emission control Deutschland VCD (German Transport technology, cleaner fuels with fewer Association) in its car environment list for contaminants and precise additives are required. 2004/2005. The Zafira 1.6 CNG took first place among the vehicles rated in the van category GM needs cleaner fuels to help meet the more and the Astra station wagon 1.6 CNG took stringent 2004 U.S. Tier 2 and LEV II emissions second place in the family car category. The standards and to realize the full potential of its Zafira also took first place in the Eco Top Ten powertrain emissions control technologies. GM initiative. continues to encourage governments worldwide to require improved gasoline and diesel fuels. In the United States, GM continues to Sulfur in fuel reduces the effectiveness of the manufacture dedicated CNG full-size vans and three-way catalytic converter. full-size pickups and Chevrolet Cavaliers that are CNG/gasoline capable. GM also has teamed up with companies such as British Petroleum, ExxonMobil and Shell to develop advanced engines/fuel systems that improve vehicle efficiencies and reduce emissions while meeting the performance expectations of GM customers.

Opel Zafira CNG FactSheet >>

General Motors 2004/05 Corporate Responsibility Report 4-8 Our Products Advanced Engines

Regional Information GM North America (GMNA) Further U.S. information on advanced engines Go here for more details on advanced engines in the U.S. >>

Industry Partners share funding of $175m in research projects In early 2005, U.S. Secretary of Energy Samuel Bodman announced the selection of projects to increase the energy efficiency of passenger and commercial vehicles while maintaining low emissions. Twelve projects, with a total value of $175 million (50 percent, or $87.5 million contributed by the private sector) will focus on development of advanced combustion engine 1.6 TWINPORT and waste heat recovery technologies. The projects support the U.S. Government's goal of exhaust gas recirculation is an example of improving efficiency of internal combustion progress in emission reduction. New in the engines from 30 percent (2004 baseline) to 45 Meriva is the 1.4 TWINPORT with nearly 15 percent by 2012 for passenger vehicles and from percent better fuel efficiency. Opel expanded its 40 percent (2002 baseline) to 55 percent by 2013 range of ECOTEC gasoline engines with the for commercial vehicles, while meeting cost, innovative fuel-saving technology. The newly- durability, and emissions constraints. developed 1.2 TWINPORT engine with 59 kW/80 Go here for more details >> hp has its premiere in the Corsa and Agila. It is not only more powerful than its 75 hp 1.2-liter GM Europe (GME) predecessor with conventional fuel-injection, it Continued Development of Current also boasts up to 12 percent better fuel efficiency. The Meriva now features the 66 Propulsion Technology kW/90 hp 1.4 TWINPORT instead of the 1.6-liter Through efficient engines, further engine (64 kW/87 hp) offered to date, improvements to powertrain technology and an increasing fuel efficiency by almost 15 percent. increase in the number of diesel vehicles with The innovation was first introduced in the Astra improved fuel efficiency, GME has made impor- 1.6 TWINPORT at the beginning of 2003. tant contributions to the reduction of CO2 emissions. GME is supporting the ACEA voluntary The top fuel saver is the Corsa Eco which, with commitment to reduce, by 2008, carbon dioxide its 44 kW/60 hp 1.0 TWINPORT ECOTEC engine, emissions in new car fleets by 25 percent in com- consumes only 4.8 liters of fuel per 100 parison to 1995. To this end, GME is working on kilometers(MVEG (Motor Vehicle Emissions the further development of both gasoline and Group) combined cycle) making this the world's diesel engines. most economical gasoline-powered compact car in its class. TWINPORT saves fuel in small gasoline engines The 2.2 DIRECT ECOTEC Engine The innovative TWINPORT technology with Direct injection technology is one area GME variable intake control and higher rates of focuses on in gasoline engines with larger dis-

General Motors 2004/05 Corporate Responsibility Report 4-9 Our Products Advanced Engines

placements. The first gasoline direct-injection development of modern diesel engines for pas- unit from Opel, the 2.2 DIRECT ECOTEC engine senger cars. The heart of this innovation is the with 114 kW/155 hp, which is available in all forced aspiration of the engine through two models in the Vectra and Signum range, con- exhaust-driven turbochargers, which, unlike sumes around 6 percent less fuel than the con- ‘biturbo' systems, operate sequentially rather ventional 2.2 liter engine and produces up to 10 than in parallel. Thanks to its superior efficiency, percent more torque at lower engine speeds the TWINTURBO system can achieve an extreme- with more power. ly high output - up to 50 percent more than a conventional diesel engine – without having the Opel Diesel: Economical, High-Tech and disadvantage of higher fuel consumption and Powerful exhaust emissions. Alternatively, the system can Diesel fuel continues to gain importance in be adapted for maximum consumption efficien- Europe. In 2004, 48.4 percent of new car regis- cy, meaning a reduction in fuel consumption of trations throughout Western Europe were for up to 25 percent is possible with constant power diesel-powered vehicles. Diesels are more eco- output. nomical and produce fewer particle emissions than before. Clean diesels not only yield lower Alternative Fuels to Help Reduce CO2 fuel consumption and reduced exhaust emis- A reduction in CO2 from vehicles can also be sions (Euro 4) to the environment, but also achieved through the efficient use of alternative ensure smooth and quiet running. Some ver- fuels. For example, GME's natural gas vehicles sions of the engine feature the electronic gas can also operate unrestricted on bio-methane pedal, the so-called E-Gas, that ensure accurate gas. Also, LPG vehicles are on the road in the U.K. responsiveness by converting the step on the gas and an ethanol "flex-fuel" vehicle is available in pedal into an electronic signal that is passed on Sweden. to the fuel injection system. Fuel is supplied to the cylinders at pressures up to 1600 bar via a Natural and Bio Methane Gas Vehicles: Opel common rail system. Thanks to innovative multi- Compressed Natural Gas Models Top VCD injection, the 120hp and 150hp variants of the Ranking engine are among the leaders in their class, set- The Opel Special Vehicles (OSV) division, which ting new standards of performance, torque, fuel produces the Astra station wagon 1.6 CNG and consumption, emission characteristics, and Zafira 1.6 CNG, is Europe's biggest manufacturer refinement. of natural-gas powered vehicles and the market leader in Germany. In May 2005, Opel launched Opel Twin-Turbo Revolutionizes Diesel its third natural gas vehicle, the Combo 1.6 CNG. Engine Technology One way GME supports the natural gas trend in Europe is through targeted information cam- There is up to 50 percent more power or 25 per- paigns, for example, in Austria a regular CNG cent less fuel consumption with the two-stage newsletter is published. Opel CNG models set turbocharged diesel passenger cars. The 1.9-liter new standards in environmental protection and CDTI twin-turbo engine which produces 156 kW resource-saving mobility, highlighted by the (212 hp) per liter displacement is a world record Verkehrsclub Deutschland VCD (German for turbo-diesel powered passenger cars. The 1.9 Transport Association) in its car environment list CDTI twin-turbo unit starts to deliver its maxi- for 2004/2005. The Zafira 1.6 CNG took first mum torque of 400 Nm at only 1400 rpm, com- place among the vehicles rated in the van cate- plies with Euro 4 exhaust emission standards, gory. The Astra station wagon 1.6 CNG also left and uses only 6.0 liters of diesel fuel per 100 most of the competition behind in the family car kilometers in the European test cycle. category, taking second place. The Zafira also took first place in the Eco Top Ten initiative. The This advance heralds the next big step in the

General Motors 2004/05 Corporate Responsibility Report 4-10 Our Products Advanced Engines

benefits of CNG compared to gasoline or diesel engines are:

• Carbon monoxide (CO) emissions drop 50-75 percent • CO2 emissions are only 144g/km (MVEG - Motor Vehicle Emissions Group) • Hydrocarbons (HC) drop by up to 80 percent • Nitrogen oxide (NOx) emissions are also significantly lower than with gasoline or diesel, which lessens the risk of ozone build-up at ground level

Filling Station Network Expanding There are currently more then 570 compressed natural gas or biomethane gas filling stations in Germany and well over 1,000 throughout Europe. In Germany, the "Erdgas Mobil" initiative, managed by natural gas market leader E.on, Saab Flex-fuel engine, 150 bhp has set the goal of installing natural gas pumps in 1,000 existing filling stations by the end of 2006. Initially current filling stations on high- The EU's latest directive on energy taxation, ways and busy roads will receive these natural effective from 1 January 2005, calls on member gas pumps. GME supports this development by governments to apply reduced taxation or a cooperating with local and regional providers. complete exemption for bio-fuels in pure or low blends. It follows a directive issued last year Saab encourages Sweden's ethanol requiring member states to introduce measures production as next-step towards by 2005 that will ensure bio-fuels account for at environmentally-friendly vehicles least 2 percent of total gasoline and diesel consumption in the transport sector, increasing to Saab Automobile called on Sweden to lead 5.75 percent by 2010. Europe's switch to the wide-scale production and use of ethanol, a renewable energy source. The Saab 9-5 BioPower is scheduled to go on sale In the summer of 2005, Saab launched its first in summer 2005. flexible-fuel vehicle (FFV), a Saab 9-5 BioPower model, which can run on ethanol-based (E85) fuel or gasoline in any combination.

Ethanol is distilled from agricultural crops. Ethanol is produced commercially from corn, for example in the United States, and from sugar cane, for example in Brazil, where in 2004 GM Brazil launched its unique Chevrolet Astra 2.0i Multipower sedan, which can run on ethanol, gasoline and even compressed natural gas (CNG).

General Motors 2004/05 Corporate Responsibility Report 4-11 Our Products Advanced Engines

GM Asia Pacific (GMAP) Laying the groundwork for future diesels GM Daewoo began developing a new diesel engine plant in Gunsan, Korea in May 2004. The new 19,200 square meter facility will produce a new family of advanced diesel engines which will meet the more stringent Euro IV emission standard. Representing an investment of KRW 475 billion, the new plant will produce diesel engines with the highest value and efficiency in the industry while also creating new employment opportunities and assisting the economic growth of the Jeonbuk Province of Korea.

GM Daewoo Gunsan diesel plant

Seeds for thought on future fuel The GM Technical Centre Bangalore R&D Chemical and Environment Sciences area is involved in a collaborative project with the Centre for Energy Studies at the Indian Institute of Technology in Delhi. The aim is to analyze an alternative fuel derived from the oil of karanja seeds, a plant with a wide rural economic potential in India. The methyl ester component derived from this oil, when blended with regular diesel, should lead to fewer engine emissions, including particulates. The fuel also offers opportunities for, as well as employment generation, and re-use of wastelands for karanja cultivation. A pilot project has been set up for production of the biodiesel, and the next steps include systematic evaluation of its on-road performance in a vehicle.

General Motors 2004/05 Corporate Responsibility Report 4-12 Our Products Hybrids

GM Hybrids vehicles include buses and full-size pickups, with plans for more hybrid models to be launched GM is making big strides in using new over the next several years. technologies to improve the efficiency and environmental impact of its vehicles. GMC Graphyte Concept vehicle with full hybrid capability unveiled at 2005 North American These include new six-speed automatic International Auto Show. transmissions, and Displacement-on-Demand, which lets engines run on half the cylinders The biggest gains in fuel savings from hybrid when less power is needed. technology are in the largest vehicles with the highest fuel consumption. By focusing on these Hybrids have certainly gotten much attention in vehicles first, GM can make a greater impact on the press lately, and in the near and mid-term, reducing fuel consumption. GM believes hybrids will play a significant role in the market place. • GM Hybrid Trucks • GM Hybrid Buses GM is also in the market with the world's first • GM Hybrid Technologies hybrid pickups, the Chevrolet Silverado and GMC Sierra. These products are delivering the highest When are they available? >> EPA city fuel economy of any current full-size or midsize pickup, and they are available at the retail level in all 50 states. GM Hybrid Trucks

In the next three years GM will introduce two additional hybrid systems - an affordable, high-value system on the new Saturn VUE Green line in 2006 and in 2007, the Chevrolet Malibu. Also in 2007, GM will launch the world's first two-mode full hybrid - co-developed with DaimlerChrysler - to add to GM's full-size SUVs, including the Chevrolet Tahoe and the GMC Yukon. The two-mode full hybrid will be mated with Displacement on Demand for a fuel- efficiency gain of at least 25 percent improved fuel economy. Chevrolet Silverado trucks are the industry's first to be equipped with hybrid technology But, hybrids are not the only fuel saving technology GM is bringing to the market. The ultimate vision is for a hydrogen economy. GM currently is offering the industry's first hybrid pickup truck, which features a GM continues to lead in developing fuel-cell conventional powertrain and driveline with an propulsion for the next generation of vehicles. electric motor integrated between the engine Fuel cells produce electricity to drive the vehicle's and transmission. The hybrid powertrain is one wheels and emit only clean water vapor. To read of a wide range of technologies being used to more about GM's fuel cell vehicle development, maintain GM's progress in light truck click here. fuel efficiency.

GM's hybrid strategy is one of a wide range of The engine provides the same performance as technologies developed to improve fuel today's V-8 Vortec engines, and with the hybrid economy in its vehicles. Current production system, fuel efficiency is improved by 10 percent.

More on Hybrid Trucks>>

General Motors 2004/05 Corporate Responsibility Report 4-13 Our Products Hybrids

GM Hybrid Buses including Seattle; Stockton and Orange County, California; Philadelphia, Houston, Tampa, and We take a proactive approach to the Albuquerque . In addition, a fleet of GM hybrid- preservation and restoration of wildlife habitats powered buses is operating in Yosemite and biodiversity both on land and in water. We National Park. partner with external groups with expertise in this area, such as The Nature Conservancy and Hybrid bus fact sheet >> Earthforce-GREEN, to undertake preservation projects GM Hybrid Technologies In addition to the parallel system in hybrid buses and the flywheel alternator starter system (below) in full-size pickups, GM is developing other hybrid propulsion system architectures: BAS (Belt Alternator Starter) and Two-mode full hybrid.

Flywheel Alternator Starter (FAS) System

The GM Hybrid Bus

GM is applying hybrid technology to mass transit buses across North America. These state-of-the-art buses are powered by an advanced hybrid-electric powertrain developed by GM's Allison Transmission division. This technology dramatically reduces emissions from the diesel engine - an environmental plus in GMC Sierra with FAS Southern California and other metropolitan locations across the United States. The hybrid- electric powertrain is a "strong" parallel hybrid Instead of a conventional starter motor and architecture. alternator, the hybrid truck features a compact electric motor integrated between the engine The System improves fuel economy and provides and transmission, known as a flywheel up to a 90 percent reduction in certain emissions alternator starter system. The electric motor over a conventional diesel system in a transit bus provides fast, quiet starting power, and the application. These results are based on the ability to generate up to 14,000 watts of Central Business District-14 (CBD-14) operating continuous electric power. cycle. GM hybrid pickup trucks with this technology We already have hybrid technology in get more miles from each gallon of gasoline, production. We started with hybrid systems for mainly because of the engine start/stop function transit buses where the fuel savings impact is and regenerative braking that turn the motor the highest. Today, we have 364 transit buses into a generator as the truck decelerates. For operating in 25 cities in the US and Canada, additional fuel savings, the flow of fuel is shut

General Motors 2004/05 Corporate Responsibility Report 4-14 Our Products Hybrids

off instantly any time the truck is coasting or Belt Alternator Starter (BAS) System braking. GM engineers developed the belt alternator starter (BAS) system to provide improved fuel The electricity generated by the system has economy in stop-and-go driving conditions by many uses. It may be stored temporarily in a shutting off the engine when it is idling and by 42-volt lead-acid battery pack and used later to enabling early fuel cut-off to the engine during enable auto starts and other hybrid functions. It decelerations. The BAS system is scheduled to also can be used to support on-board electric debut in 2006 on the Saturn VUE and in 2007 on accessories. It even can provide unique accessory the Chevrolet Malibu. power through four 120-volt outlets, two in the cab and two in the pickup bed, to operate power The system combines sophisticated engine tools at a construction site or to run essential controls with a precision electric motor/ home appliances during power outages. generator. Regenerative braking and efficient charging are among the other features of the This hybrid technology is currently available to system. The estimated fuel economy savings is at fleet and commercial customers throughout the least 10 percent. A 42-volt Nickel Metal Hydride country on the Chevrolet Silverado and GMC (NiMH) battery provides power, assisting the Sierra pick-up trucks. It is available to retail existing 12-volt electrical system. consumers in Alaska, Washington, Oregon, California, Nevada and Florida. Beginning with All vehicle accessories and passenger comfort the 2006 model year, it will be made available to systems are maintained during periods when retail consumers nationwide. the engine is stopped automatically. Other benefits of the BAS include the flexibility to use Parallel Hybrid the system on four- and six-cylinder engines, The hybrid system uses two sources of power to with minimal change to the engine move the bus: an internal combustion engine or transmission. and a hybrid transmission consisting of two 100 kW motors and a 600-volt, nickel metal hydride Two-Mode Full Hybrid battery pack. The engine is coupled to an GM and DaimlerChrysler are teaming up to electronically variable transmission that co-develop the world's first two-mode full hybrid provides an infinite range of gear ratios to drive system and to more rapidly advance the state of the wheels. The Control Module and Power hybrid technology in the industry. Electronics DPIM (Dual Power Inverter Module) provide precise controls for the system and its electric motors.

When the bus accelerates from a stop, the battery-powered electric motors assist the diesel engine for powerful acceleration. As the vehicle comes up to speed, the diesel engine provides the power to maintain the speed once the vehicle is under way. At the same time, the engine-driven generator charges the batteries, giving the vehicle self-sustaining mobility. In addition, the vehicle's regenerative braking captures energy normally lost as brake heat and Chevy Tahoe returns it to the vehicle's energy storage system (the battery) for reuse.

General Motors 2004/05 Corporate Responsibility Report 4-15 Our Products Hybrids

The two-mode full hybrid system has been transit buses. The hybrid bus will be used for established as the starting point for the commercial evaluation. Real world data will be GM-DaimlerChrysler collaboration. The two- used to study the feasibility of producing the mode system will be used for applications in GM, hybrid bus for Shanghai and China. The project Chrysler Group and Mercedes Car Group has the potential to greatly impact Shanghai's vehicles. Variants planned include rear, front, public transport system, with 17,000 buses and all-wheel drive versions for cars, trucks and currently in operation in the city. other vehicles.

The two-mode full hybrid will be launched in 2007 in two of GM's most popular full-size SUVs - the Chevy Tahoe and GMC Yukon. When combined with Displacement on Demand (DOD), the two-mode full hybrid will enable the SUVs to deliver a composite full efficiency improvement of 25 percent. Using this system on full-size SUVs and pickups is part of GM's strategy to apply advanced technologies on high-volume, higher fuel-consuming vehicle segments first.

The system uses an electrically variable transmission with two hybrid modes of operation that optimize power and torque for various driving conditions. The addition of a second mode to the drive system improves efficiency and reduces the need for large electric motors, which are used in single-mode systems. The smaller motors are lighter and more easily packaged in the space of a typical automatic transmission. Regional Information GM Asia Pacific New Hybrid Bus Program in China General Motors and Shanghai Automotive Industry Corp Group (SAIC) have launched a new hybrid bus program in China. The hybrid bus represents one of the first initiatives of a new partnership formed in 2004 between GM and SAIC, which is aimed at reducing the environmental impact of China's growing number of motor vehicles. GM's strategy is to initially apply hybrid technology in high volume and high consumption vehicles such as mass

General Motors 2004/05 Corporate Responsibility Report 4-16 Our Products Fuel Cells

Hydrogen Economy can propel a vehicle. Also, when hydrogen and oxygen combine in the reaction, there are no Hydrogen-powered emissions and the only by-products are heat and fuel cell vehicles water. offer the opportunity to provide enhanced Fuel cell propulsion is inherently more efficient mobility, reduced than other current propulsion systems and can (perhaps even zero) deliver important societal benefits, such as the emissions, energy use of renewable energy and significant reduc- independence and tion of emissions. Hydrogen can be produced greater safety. from a variety of energy sources, including petroleum and natural gas as well as renewable GM is working hard to make hydrogen fuel cell sources such as ethanol, hydro, wind or solar vehicles commercially viable. A total of about electricity. Ultimately, fuel cell vehicles powered 600 GM scientists and engineers are working at by hydrogen from renewable sources offers the five sites around the world including locations in opportunity to take the vehicle out of the energy the U.S., Germany and Japan to develop a and environment debate. commercially viable fuel cell vehicle. Significant resources are being devoted for collaborative More on how fuel cells work >> research and development programs and to date, we have spent more than $1 billion on fuel cell research worldwide. GM Fuel Cell Vehicles

GM's goal is to validate and design a fuel cell propulsion system by 2010 that is competitive with current internal combustion systems on durability and performance, and that ultimately can be mass produced affordably.

How quickly consumers will see significant vol- umes of exciting, safe and affordable fuel cell vehicles on the market depends on many factors, including: cost-effective and conveniently-available hydrogen re-fueling stations; uniform codes & standards for hydrogen and hydrogen-fueled vehicles; and supportive government policies to A patrol guard stationed along the Great Wall help overcome the initial vehicle and re-fueling in Beijing inspects the General Motors Hy-wire infrastructure investment hurdles. No single industry can accomplish this alone. GM is work- Prototype fuel cell vehicles offer the opportunity ing on these issues with governments, energy to reinvent the automobile: companies and other interested parties around the world . • AUTOnomy • Hy-wire • GM fuel cell vehicles • Sequel • Key Partnerships & Initiatives We are also putting fuel cell technology into How Fuel Cells Work today's vehicles as a learning platform: A fuel cell uses the reaction between hydrogen and oxygen to produce electricity. That electricity • HydroGen3 can then be used to run an electric motor, which How fuel cells work >>

General Motors 2004/05 Corporate Responsibility Report 4-17 Our Products Fuel Cells

AUTOnomy Sequel At the North American International Auto Show The Sequel is the most recent step in GM's in Detroit in January 2002, GM unveiled its vision reinvention of the automobile. Unveiled in of what is possible for future automobile design. 2005 at the North American International The AUTOnomy concept vehicle showcased the Auto Show in Detroit, it addresses several idea of combining a fuel cell propulsion system critical milestones for customer acceptance: and drive-by-wire technology to create a vehicle range and performance. Sequel proves that idea unlike any ever seen. AUTOnomy symbolizes engineers can create a fuel cell vehicle with GM's commitment to reinventing the automo- the real performance characteristics that bile and the auto industry. customers demand:

Hy-wire • 300-mile range; Building on the AUTOnomy concept, GM • Powerful acceleration. It goes from 0-60pmg introduced the Hy-wire, the world's first (and (0-100kmh) in less than 10 seconds; still the only) drivable fuel cell and drive-by-wire • A much more comfortable interface between concept vehicle. GM introduced the Hy-wire at the driver and the vehicle; the Paris Motor Show in September 2002. All of • A 25 percent more powerful fuel cell stack; Hy-wire's propulsion and control systems are • Improved electronic controls; contained within an 11-inch-thick skateboard- • Wheel hub motors delivering a 42 percent like chassis, allowing designers free reign to increase in torque and allowing for create an interior that maximized space for five unparalleled handling; and occupants. There is no engine to see over, no • Shorter braking distances. dashboard, no pedals to operate - merely a single, driver-control unit featuring hand con- In just three years since GM unveiled the trols for driving and stopping. The driver control AUTOnomy concept, it has made remarkable unit can be positioned for either left-hand or progress in fuel cell vehicle development. right-hand drive. Hy-wire has since been driven AUTOnomy was a vision of what could be: the by thousands of journalists, policy-makers, re-invention of the automobile. Hy-wire was the academic and industry leaders, and by the first drivable concept showcasing that vision - general public in North America, Asia, Europe combining fuel cell and by-wire technology to and the Middle East. re-invent the automobile. Sequel is the next step forward. It may not be affordable - yet, but it truly proves that it's doable . Find out more >>

The GM Sequel has a 300 mile range and accelerates to 60 mph in under 10 seconds. Find out more >>

HydroGen3 Building on the success of the HydroGen1 fuel cell prototype, GM is currently demonstrating a fleet of HydroGen3 vehicles, the latest- generation fuel cell prototype, which is based on the Opel Zafira minivan. With more power, a simpler start-up procedure, and a more compact Sequel fuel cell stack, the HydroGen3 demonstrates

General Motors 2004/05 Corporate Responsibility Report 4-18 Our Products Fuel Cells

53 fuel cell vehicles in two new trials

HydroGen3 President George W. Bush visits a Shell how fuel cell propulsion can be adapted to hydrogen fueling station in Washington, DC. today's vehicles and packaged as a single unit. GM currently is testing liquid and compressed hydrogen storage systems in its HydroGen 3 Beyond the partnerships outlined above, GM fleets. With a range of between 180 to 250 recently announced two exciting joint initiatives miles, depending upon storage system, in the U.S. to advance fuel cell development. At HydroGen3 has the same load space as the the end of March 2005, GM and the U.S. conventional Zafira in 5-seater mode and a top Department of Energy signed a five-year, $88- speed of 100 mph. million agreement to build a 40-vehicle fuel cell fleet that will be used in demonstrations in Hydrogen 3 fact sheet >> Washington, D.C., New York, California and Michigan. Each party will contribute half of the overall cost of the initiative. As part of this Key Partnerships & Initiatives program, GM will be working with Shell GM believes the quickest, most effective way Hydrogen LLC to provide the New York City to overcome the challenges involved in creating metro area with 13 fuel cell vehicles and the commercially-viable fuel cell vehicles and the city's first hydrogen service station. infrastructure to support them is to establish collaborative partnerships with technology Fuel Cell Truck for World's Largest Fleet experts. In April 2005, GM announced that it is working with the U.S. Army to provide the first fuel cell- In keeping with this strategy, GM has powered truck for non-tactical usage in military established several equity partnerships with service. The U.S. Army will evaluate the Chevrolet leading companies to work on developing fuel Silverado until July 2006 to assess performance cell technologies. These companies include and obtain first-hand experience with hydrogen QUANTUM Technologies Worldwide, Inc., and fuel cells. Improving fuel economy and Hydrogenics and General Hydrogen Corp., Inc. reducing the logistics of the fuel supply chain GM also is collaborating with Suzuki Motor Corp. could save millions of dollars as the U.S. Army to develop fuel cell vehicles and Toyota Motor has the world's largest fleet of vehicles. Corp. on fuel cell research, In addition, GM has partnerships with Shell, BP Amoco, ExxonMobil and ChevronTexaco to collaborate on fuel research.

General Motors 2004/05 Corporate Responsibility Report 4-19 Our Products Fuel Cells

Improved Hydrogen Storage Fuel Cell Demonstration in Japan Another example of GM's collaboration on fuel GM is taking part in a project to demonstrate cell development is its work with Sandia fuel cell vehicles in Japan. The Japan Hydrogen National Laboratory. In January 2005, GM joined & Fuel Cell Demonstration Project (JHFC) is the lab in a partnership to design and test an directed by Japan's Ministry of Economy, Trade advanced method for storing hydrogen. The and Industry (METI). GM and other automakers, four-year, $10-million program is intended to as well as energy companies and key suppliers, develop and test tanks that store hydrogen in are working together to better understand fuel sodium aluminum hydride. The goal is to create cell technology and how to create a hydrogen a way in which to store more hydrogen onboard infrastructure. The project is also educating the a vehicle than current hydrogen storage public about the use of fuel cells and about methods allow. hydrogen as a safe and clean fuel. Participants plan to use data generated in the project to Partnership in China support the establishment of standards and regulations pertaining to fuel cells and hydrogen.

Clean Energy Partnership in Germany The HydroGen3 is on public roads in Germany as part of the Clean Energy Partnership (CEP), which is a government-backed joint venture that includes energy companies and automobile manufacturers. In order to supply fuel for this project, Aral set up a public service station where hydrogen refueling is possible. Its opening in winter 2004 enabled a test in Germany's public traffic to begin with 16 hydrogen-powered GM and Shanghai Automotive Group executives passenger cars, including an Opel HydroGen3. sign an agreement for the development hybrid and fuel cell vehicles in China. California Fuel Cell Partnership GM is working with the California Fuel Cell GM and Shanghai Automotive Industry Corp Partnership, a collaboration of auto companies, Group (SAIC) also have formed a partnership to fuel providers, fuel cell technology companies, jointly pursue the development and and government agencies, to place fuel cell commercialization of hybrid and fuel cell vehicles on the road in California. vehicles in China. The agreement reinforces the two partners' strong commitment to provide solutions to reduce the environmental impact of China's growing number of motor vehicles. In addition, GM and SAIC are working together to advance local engineering capability for clean energy vehicles and to promote the development of a Chinese hydrogen infrastructure.

General Motors 2004/05 Corporate Responsibility Report 4-20 Our Products Fuel Cells

Electricity from Chemical By-Product Challenge X In 2004, GM and the Dow Chemical Company GM, along with the U.S. Department of Energy launched a joint project aimed at proving the and other industry organizations, will co-sponsor viability of hydrogen fuel cells. GM fuel cell a new competition series to challenge college modules are using by-product hydrogen from engineering students throughout North America Dow's chemical operations to power a portion of to re-engineer crossover vehicles to achieve Dow's Freeport, TX, chemical facility. The project better fuel economy and lower emissions. is capable of generating 35 megawatts. This Launched in the 2004-2005 academic year, the equates to enough electricity to power 25,000 Challenge X competition is a three-year program homes for a year. By taking vehicle fuel cell designed to allow students to closely follow technology to the stationary power market, GM real-world automotive design and engineering is learning how to reduce costs, manufacture key practices and so be better equipped with the components, and accelerate the development of tools to improve vehicle designs. GM will partner a hydrogen infrastructure. with MathWorks and National Instruments to provide teams with the hardware, software and More on our stationary fuel cells >> technical support they need to find solutions to this engineering challenge. Regional Information More on partnerships >> GM North America FreedomCAR GM Europe FreedomCAR (Cooperative Automotive Research) Opel Fuel Cell Marathon – Powered by is a partnership between the U.S. Council on GM: New Long-Distance World Record Automotive Research (USCAR), automotive companies (GM, Ford and DaimlerChrysler) and the U.S. Department of Energy. The goal of the partnership is to develop new technologies that allow for the development of emission and petroleum-free cars and light trucks. FreedomCAR focuses on a broad portfolio of technologies, but the primary emphasis is on enabling the transition to hydrogen fuel and fuel cell vehicles.

HyrdroGen3 - Marathon

In 2004, GM's HydroGen3 prototype completed a unique 37-day marathon across Europe to test the day-to-day reliability and durability of fuel- cell vehicles on public roads. The journey covered a distance of around 10,000 kilometers (6,210 miles) and started in Hammerfest, Norway. The marathon passed through 14 countries and The Chevrolet Equinox is the focus of the finished in Portugal. two-year Challenge X competition.

General Motors 2004/05 Corporate Responsibility Report 4-21 Our Products Fuel Cells

The Fuel Cell Marathon presented unique driving GM Asia Pacific challenges, including an enormous variety of road conditions, temperature differences of over Collaboration for future technologies 40°C (104°F), steep mountain passes in the Alps, Holden and the Commonwealth Scientific and violent downpours around the Industrial Research Organisation (CSIRO) have Mediterranean. But, after 23 days and 5,474 joined forces to research future global power- kilometers, (3401 miles) the HydroGen3 set a train technologies. Following an initial project in new long-distance record for fuel cell cars. 2000, which involved the development of a hybrid electric vehicle called the ECOmmodore, European Hydrogen and Fuel Cells Holden and the CSIRO will now focus their Technology Partnership efforts on power management systems and energy storage technologies such as supercapac- In 2002, the European Commission formed an itors. Holden and the CSIRO are, respectively, EU High Level Group on Hydrogen and Fuel Cells Australia's leading R&D investors in the private which by summer 2003 released its ‘Hydrogen and public sectors. This project will see them Energy and Fuel Cells – A Vision of Our Future' play a part in the global road to hydrogen as it report. The outcome was that the High Level contributes to General Motors' mission to design Group called for the implementation of a and develop hybrid and hydrogen-powered fuel concrete action plan, including: cell vehicles. • A deployment strategy on how to speed up the transition from prototype to commercialization of hydrogen fuel cell vehicles by using ‘beacon' projects. These projects would integrate local hydrogen power stations and transport networks to form the backbone of a trans-European hydrogen infrastructure. Only then would hydrogen vehicles be able to travel and refuel across the whole of Europe.

• A European ‘roadmap' for hydrogen fuel cells, which would guide the transition to a hydrogen future and support the commercialization of the fuel cell.

As a direct consequence of the report, the EU Commission launched a European Hydrogen and Fuel Cells Technology Partnership, which GME will actively co-operate with and contribute to.

General Motors 2004/05 Corporate Responsibility Report 4-22 Our Products Efficiency & Emissions

Objectives Looking farther ahead, GM is working on the transition to the hydrogen economy, which will From saving fuel by making engines work require the availability of a re-fuelling smarter to smoothing transmission function for infrastructure to support fuel cell vehicles being better performance and efficiency, GM is using available in the market. GM believes that technology to improve the internal combustion partnerships with industry and government engine (ICE) while working toward the hydrogen will help bring this vision to reality as soon future. as possible.

Greenhouse gas emissions and fuel economy are Fuel Economy of GM Vehicles >> directly related. Carbon dioxide (CO2), a greenhouse gas, is emitted by the combustion of More on CO2 emissions from GM facilities >> gasoline or diesel fuel in an engine. CO2 emissions are reduced from vehicles by reducing fuel consumption through improved vehicle Actions efficiency and responsible driver behavior. For Today this reason, control of CO2 emissions from Today, we already sell a range of vehicles with vehicles is tantamount to fuel economy controls. cleaner, more efficient technology and are committed to continuing and accelerating this Vehicle exhaust contains hydrocarbons and progress. Some of these initiatives include: oxides of nitrogen, which can form smog. Emissions of these substances are reduced by as • The recent introduction of Displacement on much as 99 percent from uncontrolled levels in Demand technology is just one example of today's vehicles. the improvements in gasoline engines. • Alternative fuels offer benefits too, so GM is GM has taken and is planning a wide range of continuing its commitment to greener fuels. actions to continue to improve vehicle fuel GM produces more than a third of all the E85 efficiency and exhaust emissions performance. flex fuel vehicles on the road in the U.S. The company has already produced more than GM's Approach one million E85 vehicles and is the market GM is focused on developing and bringing to leader for CNG in Germany and LPG in market technologies to reduce emissions and the UK. improve fuel efficiency to contribute to taking • Meanwhile, diesel engines are becoming the vehicle out of the energy and environment increasingly popular in Europe and the latest debate. high-tech versions offer enhanced fuel economy and excellent performance. GM Addressing Fuel Economy sells more than one million diesel-powered On a model-to-model comparison basis, GM cars and trucks around the world each year. leads the U.S. market in the number and And, over the past ten years, has reduced proportion of vehicles that are fuel economy overall diesel emissions by up to 60 percent. leaders. GM is putting great effort into In fact, GM's 1.7 liter diesel was the first to producing more fuel-efficient, advanced engines meet the highly stringent Euro4 emission and hybrid vehicles. The challenge is to get the requirements. latest fuel-saving and emission-reducing * And while engines are a key area, GM is technologies into as many new vehicles as developing and incorporating many other possible and at the same time ensure that those fuel economy technologies into its new vehicles provide the same level of service, vehicles including state-of-the-art electronics performance and style as conventional and electronic controls. equivalents and at the same price. More on Advanced Engines >>

General Motors 2004/05 Corporate Responsibility Report 4-23 Our Products Efficiency & Emissions

Hybrids will form an increasingly important part example, customers may only tow a trailer twice of GM's strategy. Hybrid propulsion systems a year, but they generally expect the vehicle to provide additional fuel economy improvements. be equipped to handle such a task at all times. Advances in electric drive components and controls in hybrids will also help GM develop Where feasible and applicable, efficiency commercially viable hydrogen fuel cell vehicles. improvements are utilized across GM's car and light truck fleets. For example, four-speed In the U.S., GM has launched a hybrid propulsion automatic transmissions and locking torque program that is focused on the highest fuel converters are now used in all GM vehicles sold consuming vehicles first, because that's where with automatic transmissions, and many are the technology can have the greatest impact in moving to 5-speed and 6-speed automatics. terms of gallons of fuel saved and reduced CO2 Many engines have incorporated low friction emissions. elements, variable valve timing, and Displacement on Demand technology. Electric GM already is offering the industry's first hybrid power steering, and high-efficiency alternators, pickup truck, which uses flywheel alternator and lower rolling resistance tires are used in starter technology and provides a fuel efficiency most applications and sequential port fuel improvement of 10 percent. In addition, the GM injection has been applied across the board in all Allison hybrid electric diesel propulsion system engines. GM's aerodynamics laboratory works to for transit buses is powering more than 350 reduce the aerodynamic drag of GM cars and transit buses throughout North America and a trucks as new products are introduced. fleet of these hybrid buses is operating in Yosemite National Park. GM will introduce more Regional Regulatory Pressures hybrid models to market over the coming years. United States In 2003, the U.S. Department of Transportation More on hybrids >> raised fuel economy standards (Corporate Average Fuel Economy standards-CAFE) for light GM also provides information to encourage trucks by more than 7 percent, the largest drivers to choose cleaner, more fuel-efficient increase in truck standards in 20 years. Since vehicles and to drive responsibly, which can CAFE is an average fuel economy of the vehicles significantly reduce fuel consumption, emissions produced for sale, a company's CAFE reflects and save money. which products its customers choose. In recent years, consumer trends for larger models, higher Tomorrow performance engines, and more features have GM believes that fuel cell-powered vehicles offset much of the fuel economy increases from will ultimately lead to truly sustainable technologies we've implemented. transportation and are striving for such vehicles to be commercially viable as soon as possible. The U.S. National Highway Transportation and Safety Administration (NHTSA) initiated a More on Fuel Cells >> rulemaking processes to further increase truck CAFE standards and potentially reform the Fuel Economy Technologies structure of the CAFE program. These reforms GM vehicles are sold in a wide range of sizes and may establish CAFE standards for different drivetrains. The basic vehicle attributes are categories of vehicles, perhaps based on vehicle derived from the functional requirements of our size or weight. GM will contribute constructively customers. Vehicles are purchased to carry to these rulemaking proceedings based on the passengers, cargo, or tow a trailer. Vehicle extensive experience it has gained working with designs must address customers' peak uses. For the CAFE program over the past three decades.

General Motors 2004/05 Corporate Responsibility Report 4-24 Our Products Efficiency & Emissions

European Union fuel economy has been relatively constant as ACEA (the European auto manufacturer consumers, reflecting increased disposable association) has committed to a 25 percent income and relatively low fuel prices, have not reduction in average CO2 emissions of new car preferred vehicles with high fuel economy. vehicle fleet over 1995 levels by 2008, reaching an average of 140g CO2/km on the European Greenhouse gas emissions and fuel economy are test cycle. The 2003 monitoring report has directly related. Carbon dioxide (CO2), shown that ACEA has met, or is even ahead of, a greenhouse gas, contributing to greenhouse all its interim targets set out in its Commitment. gas emissions, is emitted by the combustion of The EU has also adopted vehicle fuel economy gasoline or diesel fuel in an engine. CO2 labels, publishes fuel economy guides, and emissions are reduced from vehicles by reducing monitors industry performance. Government fuel consumption through improved vehicle pressure exists for further reductions to 120g efficiency and responsible driver behavior. For CO2/km (47 mpg) by 2012. this reason, control of CO2 emissions from vehicles is tantamount to fuel economy controls. Asia-Pacific In the Asia-Pacific region, the Japanese government established fuel economy standards for various vehicle weight classes for the 2010 model year and is considering even more stringent requirements. The 2010 requirement calls for an 11-30 percent increase in fuel economy from 1995 depending on the vehicle's weight.

China is developing fuel economy standards for light trucks that would require 5-10 percent fuel economy reductions in the first stage, and 15 percent improvement in the second stage.

In Australia, the auto industry has set a voluntary target under the National Average Fuel Consumption-NAFC of an 18 percent reduction in fuel consumption from 2000 to 2010. This translates into a reduction from 8.3 liters/100 km to 6.8 liters/100 km. The NAFC will be reported each year but there are no interim goals. Performance GM North America (U.S. and Canada only) Fuel Economy In the United States, the average fuel economy Fleets of vehicles, from which our 2004 of our new cars and light trucks has increased Corporate Average Fuel Economy (CAFE) is over 130 percent and 75 percent, respectively, calculated, are meeting the U.S. CAFE standards since 1974 (see graph). Since 1990, new vehicle of 27.5 miles per gallon (mpg) for cars and 20.7 mpg for trucks. Since CAFE is a sales-weighted

General Motors 2004/05 Corporate Responsibility Report 4-25 Our Products Efficiency & Emissions

average of the fuel economy of the models customers purchase, CAFE is not a good measure of whether manufacturers are improving the individual fuel efficiency of their various models. With consumers choosing larger models and additional features, the fuel-saving technology improvements on individual models are being offset, resulting in little change in CAFE averages. However, on a comparable model-to- model comparison, GM cars and trucks lead the industry in fuel economy.

GM conducted model-to-model fuel economy comparisons for 2004 Model Year vehicles Reducing exhaust emissions available for sale in the U.S. by all Exhaust emissions such as nitrogen oxides manufacturers. There are 89 unique (NOx), particulates, unburned hydrocarbons (HC) comparisons for cars and 83 unique comparisons and carbon monoxide (CO) can cause for light trucks (including vans and sport utility environmental impacts. Since the mid-1960s, vehicles). This analysis shows: emissions of hydrocarbons, carbon monoxide and nitrogen oxides have significantly • For cars, GM outperforms the competition in decreased. 40 out of 62 (65 percent) model-to-model fuel economy comparisons where the GM began meeting even more stringent Federal products compete. The next nearest Tier 2 and California low emission vehicle (LEV) II competitor leads in 15 of 60 comparisons standards in the 2004 model year. In 2004, GM in which it competes. sold 80 percent more cars and light duty trucks • For light trucks, GM has the best model-to- (LDT)s that meet the Tier 2 standard than model fuel economy in 50 out of 75 (67 required (45 percent sold compared to a 25 percent) comparisons where it has a product percent requirement). Once fully phased-in, all competing. The next nearest competitor GM cars and light trucks will meet these leads in 13 of 36 comparisons. standards, which cut smog-forming emissions (HC + NOx) by 99 percent relative to mid-1960's Compare GM model-to-model fuel models. GM is also meeting more stringent economy to other manufacturers >> standards for evaporative hydrocarbon emissions that began phase in 2004. In Canada, the fuel consumption (measured in liters per 100 kilometers or l/100 kilometer) of GM passenger cars and light trucks has followed similar trends as the U.S. fleets. GM Canada's car and truck fleets are meeting their Company Average Fuel Consumption (CAFC) targets of 8.6 l/100 km and 11.4 l/100 km, respectively.

General Motors 2004/05 Corporate Responsibility Report 4-26 Our Products Efficiency & Emissions

In 1989, GM was the first automobile manufacturer in Europe to supply all passenger cars with standard closed-loop, three-way catalytic converters. Since then GM has complied with Euro 2, Euro 3 and Euro 4 emissions standards long before they became mandatory. GM is on target to reach the 2006-2008 goals for CO, HC + NOx and PM.

Taking the lead with Diesel Particulate Filters GM's core brand in Germany, Opel, has a long tradition of particularly pro-environmental vehicles and technologies. With its newest- generation Diesel Particulate Filter (DPF), Opel again takes a leading role among German car manufacturers.

Europe Opel now offers all of its diesel passenger cars Reducing exhaust emissions with a particulate filter, probably the widest Europe has come a long way in reducing exhaust range of diesel models with this filter among emissions. With the latest Euro 4 standards volume producers. In Germany, Opel offers its taking effect in 2005, emission levels of carbon environmentally sound DPF technology as monoxide and combined emissions of standard in three important volume segments, hydrocarbons and nitrogen oxides have been with a particulate filter in all 1.9 CDTI versions reduced by 97 percent since 1970, when (100, 120 and 150 hp) of the Astra, as well as in emission standards were first introduced. The all diesel variants of the Vectra, Signum and new most significant reductions will be achieved Zafira. While focus is currently on the high- between 1993-2005, with CO emissions reduced volume market segments as this will most by 83 percent, combined HC + NOx by 69 percent rapidly improve air quality, Opel's long-term and particulate matter (PM - from diesel commitment to pro-environmental technology engines) by 82 percent. will be reflected in successively extending the range of vehicles it offers with a particulate filter as standard.

Opel's diesel particulate filter reduces particulate emissions to almost zero. The innovative DPF is integrated in the electronic engine management system. It operates without decreasing performance or increasing fuel consumption and represents state-of-the-art technology: the clever Opel DPF does not require fuel additives, thereby avoiding the disadvantages of other systems. A further benefit of Opel's DPF system is that it is completely maintenance-free over the entire vehicle life-cycle.

General Motors 2004/05 Corporate Responsibility Report 4-27 Our Products Responsible Vehicle Use

Safer Driving support increasing seat belt use nationwide." In 1996, we helped create the Council's Air Bag & Safer driving makes for safer roadways: Seat Belt Safety Campaign and continue to play a • Countries with high safety belt and child leading role in its activities. The Campaign has restraint use generally have lower fatality helped to pass primary enforcement safety belt rates than those with lower use rates. laws, now enacted in 22 U.S. states plus the • Countries with strong drunk driving laws and District of Columbia, and generally result in effective enforcement have fewer higher restraint use rates. alcohol-related fatalities. • Graduated licensing laws that allow In support of national efforts to increase safety teenagers and adult novice drivers to learn to belt use during May 2003, 2004 and 2005, drive and develop better driver judgment OnStar advisors reminded subscribers to buckle over time, help reduce the disproportionately up. Chevrolet also supported 'Buckle Up high fatality rates of inexperienced drivers. America!' with paid advertising and, in 2005, • We support initiatives and programs produced a Public Service Announcement with encouraging safe driving behaviors, including Dale Earnhart, Jr, to promote belt use. GM's reduced driver distraction. customer assistance advisors supported the ‘Buckle Up America! campaign' in 2003, 2004 GM Partnership Initiatives and 2005 by reminding our customers to GM supports community and policy initiatives buckle up. aimed at educating the public about ways to assure their safety when driving: Finally, the 'Buckle Up America!' campaign, the National Highway Traffic Safety Administration • Encouraging safety belt usage (NHTSA), and law enforcement nationwide have • Safe Kids Worldwide conducted national "Click It or Ticket" safety belt • Mothers Against Drunk Driving use enforcement mobilizations. These • Avoiding driver distraction mobilizations, which combine comprehensive • Distraction research public awareness with focused law enforcement • Teen driver safety activity, have helped increase the national safety belt use rate from 61 percent in 1996 to the Encouraging Safety Belt Use 2004 rate of 80 percent - the highest ever in the General Motors has been in the forefront of U.S. In 2004, the belt rate in six U.S. states supporting awareness and technological exceeded 90 percent, including Michigan. initiatives to help increase safety belt use. GM Launches First-Ever Driver Safety U.S. Safety Belt Initiatives Campaign in China In October 2004, the The campaign, tailored to the needs and State of Michigan interests of Chinese drivers, includes educational Office of Highway messages about the life-saving benefits of Safety Planning wearing safety belts, following traffic honored GM with an regulations, safe driving practices and an award to recognize explanation of how various vehicle safety GM's support for belt features work to help protect drivers and their use programs. passengers. According to a GM poll conducted earlier this year, 48 percent of motorists in In August 2003, the Shanghai admit that they do not always wear National Safety Council presented an award to safety belts, despite local laws requiring GM recognizing GM's "ongoing leadership and their use.

General Motors 2004/05 Corporate Responsibility Report 4-28 Our Products Responsible Vehicle Use

China is the fastest-growing vehicle market in Child Safety – Global Initiatives the world and is expected to grow dramatically GM's focus on child safety is reflected in activi- for some time. Driver behavior safety programs ties worldwide, for example: will play an important role in helping to reduce crashes as vehicles become more abundant on • In Thailand, GM and Chevrolet have been China's roads. As the world's largest vehicle focusing on child passenger safety since manufacturer, and a safety and technology 2000, promoting child safety seat installation leader, GM believes it can help educate its education and distribution programs as well customers in China - many who are buying a as safety belt use in general. The program has vehicle for the first time - about how to use the been recognized as a key part of the Thailand products safely. Chinese officials estimate that Global Road Safety Partnership. 77 percent of traffic deaths in China result from • In South Korea, GM Daewoo has donated drivers ignoring traffic rules, and anticipate child safety seats to the Seoul National that this program will help reduce crashes Children's Hospital and SAFE KIDS Korea, and significantly. provides child safety seats at a 50 percent discount at all domestic GM Daewoo Safe Kids Worldwide dealerships and service centers. In 1996, the National SAFE • In Australia, Holden's child passenger safety KIDS Campaign (now Safe program is targeting the 70 percent of Kids Worldwide) and parents and caregivers who incorrectly install General Motors recognized child restraints. Holden distributes brochures an opportunity for and videos to community groups and the automakers to play a general public to help raise awareness about valuable role in promoting the risks of incorrectly fitted restraints, correct child safety seat and complemented by a free mobile child safety belt use. Together, we created the SAFE restraint inspection program. KIDS BUCKLE UP partnership. The goal of this • In South America, GM do Brazil has been unprecedented collaboration is to make child working with SAFE KIDS on child passenger passenger safety educational materials and safety activities since 2001 and was joined by hands-on assistance available to families GM Chile. GM Argentina conducted a ‘Safety throughout America. for Kids' pilot program. GM Colmotores promotes a number of child safety programs, As of 2005, GM has donated 119 customized including one that promotes safety belt use Chevrolet minivans and vans to SAFE KIDS on school buses. Coalitions nationwide – there is at least one in • In the United Arab Emirates, GM is each state and the District of Columbia. These partnering with the American University of Chevy Venture and Chevy Express vans contain Sharja, American Hospital in Dubai, Dubai everything coalitions need to host car seat police and a major Dubai shopping mall to checks in convenient locations for parents, such raise awareness of the importance of child as malls and childcare facilities. To date, SAFE safety seats and teach people how to use KIDS Coalitions, with GM's support, have them correctly. checked nearly 650,000 child safety seats and • The GM-sponsored Beterem SAFE KIDS Israeli trained thousands of individuals in child Buckle-Up campaign combines a variety of passenger safety. programs in local elementary schools, baby care and other medical centers to raise In 2005, Chevrolet became the lead GM partner awareness about the proper use of child in SAFE KIDS BUCKLE UP partnership. restraint systems. More>>

General Motors 2004/05 Corporate Responsibility Report 4-29 Our Products Responsible Vehicle Use

Mothers Against Drunk Driving (MADD) the University of Iowa and Virginia Tech GM continues to support Transportation Institute. efforts to help rid America's highways of drunk drivers - Teen driver safety the leading cause of traffic Graduated Driving Licensing (GDL) systems are fatalities. GM is one of several auto manufactur- proven to help reduce the risks for new drivers. ers that support Mothers Against Drunk Driving In 2002, GM joined the National Safety Council, (MADD). To allow employees the opportunity to Nationwide Insurance, and the National provide direct financial support to MADD, the Highway Traffic Safety Administration to GM Charitable Giving Campaign includes MADD sponsor the "Symposium on Graduated Driver as a possible payroll deduction selection. Licensing: Documenting the Science of GDL." In 2004, with the support of GM and other Avoiding driver distraction organizations, the National Safety Council GM leads the automotive industry in the effort published the "Teen Driver: A Family Guide to to study and address the important issue of Teen Driver Safety," to help explain the elements driver distraction. In October 2000, GM launched of Graduated Driver Licensing systems to a $10 million safety initiative called ‘SenseAble families and their young drivers - download >>. Driving'. This initiative combines research, education and technology, to address driver Traffic Safety Partnership with U.S. Army distraction. In 2004, GM began a partnership to help the Army reduce privately-owned vehicle (POV) As part of the technology initiative, GM was the crashes involving servicemen and women. The first to announce a set of common-sense program includes a video, advanced driver principles that govern the design and use of training, and assistance on addressing the major telematics technology in future vehicles. GM's factors contributing to Army POV traffic deaths: communication systems are designed to: not wearing safety belts, impaired driving, fatigue and excess speed. These tactics will join 1. Keep drivers' eyes on the road and hands on an aggressive crash-reduction system that the the wheel. Army already is implementing. 2. Minimize the number of steps required to perform a task. Safer Road Travel in Emerging and 3. Create a common interface in how Transitional consumers interact with the system. Automotive Economies 4. Utilize a lock-out protocol to prevent the use of systems that create unnecessary and In December 2004, seven excessive attention demands on the driver. of the world's largest automotive and oil GM also conducts research in real world, companies announced a simulated and laboratory environments to bet- collaborative five-year, $10 ter understand driver workload and distraction. million project to help Research findings are used in the design of new reduce road traffic fatalities in-vehicle communications technologies to help and injuries in emerging and transitional auto- reduce their potential to distract the driver. GM motive markets. The World Health Organization experts are currently doing work internally and (WHO) estimates that about 1.2 million pedestri- in partnership with educational institutions ans, pedal cyclists, motorcyclists and motor vehi- including the Beckman Institute for Advanced cle passengers died in 2004 in roadway crashes Science and Technology - University of Illinois at and projects that number will increase signifi- Urbana-Champaign, Carnegie Mellon University, cantly in the next decade, unless actions change the trend. Press Release >>

General Motors 2004/05 Corporate Responsibility Report 4-30 Our Products Responsible Vehicle Use

The new collaboration, called the Global Road Greener Driving Safety Initiative (GRSI), includes GM, Shell, Ford, Honda, Michelin, Renault, and Toyota. The Global GM has introduced many innovations that Road Safety Partnership (GRSP) -- a partnership improve fuel economy and exhaust emissions. among business, NGOs, and governments But once customers drive off with their new established in 1999 and is hosted by the vehicles, the way they drive can influence fuel International Federation of Red Cross and Red economy by up to 15 percent. Crescent Societies – will manage and deliver the initiative. GM currently chairs the initiative's GM encourages drivers to reap these savings by Steering Committee. publishing greener driving tips. In Opel, Vauxhall More on GRSP >> and Saab vehicles for instance, detailed information on environmentally-friendly and In 2004, the World Health Organization, along fuel-efficient driving are printed in the operating with the World Bank, the GRSP and the FIA manual. The intelligent on-board computer in Foundation for the Automobile and Society many models also enables drivers to check fuel collaborated to produce the 'World report on consumption with the touch of a button. road traffic injury prevention,' which identified a number of areas for action including data GM also is active in multiple environmental collection for risk assessment; roadway partnerships. infrastructure to support multiple types of road users; roadway user behaviors, including safety The GM Fuel Economy and CO2 Calculator belt and helmet use, and alcohol; and the safety enables users to compare GM and competitor of pedestrians and cyclists. Good practice guides models are being developed to assist countries in developing and implementing plans to improve For general information on greener driving road safety. please see UNEP's greener driving guidance (non-GM website). GRSI will leverage these good practice guides, with a particular focus on safety belts, alcohol, Tips for improving fuel consumption and pedestrian safety, helmets and inappropriate reducing CO2 emissions: speed in targeted regions. It will train road • Avoid unnecessary short trips safety professionals and provide seed funding to • Begin driving as soon as you start the engine. establish pilot programs to address these critical Don't let the engine idle until warm, but issues. In addition to financial resources, the drive at moderate engine speed until it GRSI will provide expertise and linkages with warms up. Turning off the engine pays off for governments and communities in selected waits of as little as one minute regions and countries and will partner with • Maintain constant speed, avoid unnecessary additional organizations to leverage their acceleration and braking collective resources. On June 15, 2005, GRSP • Shift into higher gears early. In each gear, announced that ASEAN (Brunei Darussalam, stay in the lower engine speed range. While Cambodia, Indonesia, Laos, Malaysia, Myanmar, in coasting mode, don't step on the gas and Philippines, Singapore, Thailand, Vietnam) would don't disengage the clutch be the first region for GRSI focus. The GRSI • Give your vehicle regular maintenance and welcomes other organizations that may be tune-ups, check tire pressure regularly interested in participating. • Remove roof luggage racks when not in use and switch off devices that consume additional energy, such as air conditioning, heated windows, or fog lights, when not needed. • More tips >>

General Motors 2004/05 Corporate Responsibility Report 4-31 Our Products Responsible Vehicle Use

Regional Information GM Asia Pacific Promoting the safe use of vehicles in 2004, GM in Korea began supporting the development of the new national 'Wear Your Safety Belt' campaign for launch in 2005. Every Tuesday is a ‘Safety Belt Day' promoted using good driver examples, vigorous police attention and encouragement by business, public bodies and the press. An express toll lane and stop line compliance is also part of the campaign, focusing on taxis, buses, trucks and motorcyclists. The campaign accompanies existing themes, which focus on giving way to buses, anti-drunk-driving, good car maintenance, and car-pooling.

GM Daewoo has continued to promote the SafeKids Korea Program on traffic and domestic crash prevention. In 2004, GM Daewoo launched the ‘Children Safety Class' targeting 6 to 7-year- old children across the country. The goal is to educate 2,500 children per year. In 2005 GM plans to expand the activities related to the partnership program, SAFE KIDS Buckle Up, that it supports with the National SAFE KIDS Campaign. GM Latin America, Africa and the Middle East GM Israel continues to support the Beterem SafeKids Campaign with a multi-year commitment via the GM Foundation Israel Program. Beterem has been the official Safe Kids representative in Israel since 2001. The GM- sponsored buckle-up campaign combines a variety of programs in local elementary schools and medical centers. Local media campaigns raise awareness about the proper use of child restraining systems to save lives. Beterem has set a goal is to reduce the rate of driving related deaths among children by 30 percent by 2010.

General Motors 2004/05 Corporate Responsibility Report 4-32 Our Products Vehicle Design

Life Cycle Approach gallons of oil annually and more than $145 million dollars per year in unnecessary oil Life-cycle thinking is part of the design process change charges. Click for information on how at GM. Design engineers are aided by Design for GM's simplified vehicle maintenance can save the Environment (DfE) Engineers to apply the customers time and money. appropriate tools to make informed decisions on materials, processes and implications for end-of- These examples of life-cycle thinking provide the life disposal. Environmental improvements of customer with more convenience and value the components of a given model are tracked while improving the environmental performance through the design phase and reported in our of the vehicle in the use phase. Environmental Features brochures. This approach tracks environmental improvements Life-cycle analysis is used in concept design and made to the vehicle and identifies the plant material selection. The intent is to provide the where it was built. The Environmental Features designer-engineer with information through the brochures are available at many GM dealerships life-cycle of the product and guide them in their and on the web. decision-making. For instance, the potential to reduce weight and increase fuel capacity was This life-cycle the motivation for considering the use of thinking has high-density polyethylene for fuel tanks. These provided many tanks are lighter than steel and provide greater innovations from design flexibility because they can be molded in GM employees such more complex shapes than steel. However the as the development generation of solid waste from the plastic tank and use of long-life at the vehicle's end-of-life was a concern. A life engine coolant, cycle analysis (LCA) was conducted to better which extends the understand the environmental implications of change intervals GM Oil-Life System using plastic instead of steel, and in particular from two to five the solid waste generated. The LCA discovered years. Less that a similar amount of solid waste is maintenance of the coolant system is therefore generated from the plastic and steel materials. required and this adds value to the customer. The only difference is at what point in the life The development and adoption of the GM Oil- cycle the solid waste is generated. In the case of Life System in most of GM's North American the steel tank the waste is generated during the vehicles was another innovation spurred on by mining and production of the steel. In the case life cycle thinking. This monitoring system allows of the plastic tank the waste is generated at the customers to change the oil in a way consistent end-of-life of the vehicle. For the aforemen- with their driving habits. Those who drive more tioned cases, solid waste generation was roughly highway miles typically can extend oil change the same though the environmental advantages intervals because the driving cycle doesn't of a lighter weight material, which provides degrade the oil as quickly as someone who customer benefits in better fuel economy and drives short distances with frequent stop-starts. increased mileage between fuel fill ups, The net result is that many customers can helped drive the decision to use plastic in double, or in some cases triple, the oil change this application. intervals, collectively saving millions of gallons of oil in the process. Since 1995, GM has GM's life cycle approach is updated by the produced over 30 million vehicles with the following: system. Assuming that the Oil-Life System was used by all owners, it is estimated that their • a global life cycle analysis subcommittee vehicles could save approximately 6.6 million manages skills and resources

General Motors 2004/05 Corporate Responsibility Report 4-33 Our Products Vehicle Design

• GaBi 3 Professional software for life Some examples of recent concept vehicles cycle analyses include: • one of the largest databases of automotive life cycle inventory (LCI) data. • Alternative Propulsion Concept vehicles - past, present and future Part of GM's DfE approach includes: • AUTOnomy • Hy-wire • designing to reduce fuel consumption • Sequel and emissions • designing for safety • design for recycling Concept Vehicles Leadership in Design In 1927, General Motors revolutionized the automotive industry by recognizing the growing importance of a car's styling and emotional appeal among the burgeoning consumer market for automobiles. The company subsequently established the industry's first department devoted to automotive design. This newly Sequel concept at Shanghai Auto Show formed GM Art and Color Section - the forerunner of GM Design - would soon establish GM as the undisputed design leader in the U.S.

GM's design leadership is not limited to only its The Next Generation U.S. design team. Design is a major part of GM's The Sequel is the first fuel cell vehicle in the global operations product development automotive industry to offer the range and approach. Employees are working on new design driving performance people expect from their concepts on every continent except Antarctica. current cars. With a next-generation fuel cell stack from GM delivering 25 percent more GM designers have a long history of creating power, the Sequel achieves a range of 300 miles vehicles with cutting-edge designs. From the and acceleration from 0–60 mph in less than ten innovative styling of Harley Earl in the mid- seconds. The fuel cells and cylindrical tanks are twentieth century to AUTOnomy, which r housed in a unique 'skateboard' chassis. The evolutionized the way cars can be designed, GM concept car is equipped with drive-by-wire designers have created vehicles that have technology and all-wheel drive. changed the automotive landscape.

General Motors 2004/05 Corporate Responsibility Report 4-34 Our Products Vehicle Design

Awards GME Awards

Saab 9-3 Convertible

Opel Astra Twin Top SAAB 9-3 • Saab 9-3 Convertible named UK's most ASTRA secure open-top car - British Insurance Car • Opel Astra wins comparison test against nine Security Awards (BICSA) competitors - German motoring magazine, • Saab 9-3 Convertible receives top five-star AutoBild EuroNCAP safety rating. • Opel Astra 1.9 CDTI wins against VW Golf 2.0 • 9-3 Cabrio scores first place against BMW TDI and Ford Focus 2.0 TDCi - German motor- 320 Ci Convertible and Mercedes CLK 200 ing magazine, Auto Zeitung Compressor Convertible - Comparison Test • Opel Astra 1.9 CDTi wins comparison test against VW Golf 2.0 TDI, BMW 120d and Audi MERIVA A3 2.0 TDI - German motoring magazine, • Minivan of the Year 2004 in Catalonia - Radio Auto Zeitung and television audiences of local channels in • Opel Astra voted "Fleet Car of the Year 2004" Catalonia in Portugal - Jury of fleet specialists coming • Family Car 2004 - Belgian Tourist and from several of the most important Automobile Association ( Vlaamse Portuguese companies Automobilistenbond) • Opel Astra Earns Five Stars in Euro NCAP Tests Euro NCAP Test (June 2004) VECTRA • Vectra 1.9 CDTi wins comparison test. Vectra TIGRA 1.9 CDTi wins against Peugeot 407 SW Hdi • 'Cabrio of the Year 2004' - 74th Geneva 135, Honda Accord 2.2i-CTDi and Jaguar X- Motor Show by independent motoring Type 2.0 Diesel - German motoring magazine writers and automotive experts 'auto motor und sport .' (March 3, 2004) • Vectra 1.9 CDTi wins comparison test. Vectra was ahead of nine competitors - German SIGNUM motoring magazine, Autozeitung • Best gasoline car' - Winner of the ADAC Eco Test 2004 (Germany). Opel Signum 2.2 DIRECT is the most environmentally compatible gasoline car

General Motors 2004/05 Corporate Responsibility Report 4-35 Our Products Vehicle Design

ZAFIRA innovation, individuality and style. The Kalos was • Best Buy Award - readers of the British designed by Ital Design and Design Forum under magazine, Prima Baby the direction of GM Daewoo's Technology Institute. Asia Pacific Awards • Holden's flexible architecture has been awarded an Australian Design Award of the Year in the automotive and transport category • The Chevrolet brand in India won the "Automotive Brand of the Year Award" in 2004 - BS Motoring • Chevrolet Tavera was awarded the UV (Utility Vehicle) Award 2005 for its product attributes - OVERDRIVE • GM Daewoo's Kalos ranked top for the second consecutive year in the compact car category - 2004 Korea Design Power Index (KDPI) Daewoo Kalos Regional Information GM Asia Pacific Australian Design Award More on design at: Holden's flexible architecture has been awarded • Opel an Australian Design Award of the Year in the • Vauxhall automotive and transport category. The awards span 20 categories in which design experts assess functionality, environmental impact, safety, ease of manufacture, ergonomics and value for money.

Design Power Award GM Daewoo's Kalos ranked first for the second consecutive year in the compact car category of the 2004 Korea Design Power Index (KDPI) conducted by the Korean Management Association (KMA). The index is based on the interview responses of 20,000 consumers living in the six largest metropolitan Korean cities. The Kalos was selected as the winner based on consumers' assessment of its environmental, product and visual design and fashion factor. Commenting on the Kalos' award, a chief researcher at the KMA said that though many new competitive cars were launched, the Kalos scored high points for its design shape, sensitivity and convenience factors including

General Motors 2004/05 Corporate Responsibility Report 4-36 Our Products Vehicle Quality

Global Vehicle Quality Read case studies in the regional data sections for GM North America, GM Europe and GM Asia Pacific. Regional Information GM North America

GM's integrated quality strategy engages all regions and is focused on delivering segment-leading vehicles to customers around the world. Significant progress has been made in initial quality, warranty frequency and cost, dependability and perceptual quality. In North America, the focus on quality has helped us to reduce warranty costs and improve Download the full J.D. Power report providing quality according to J. D. Power and Associates. detailed comparison of GM with its competitors >> Download the full J.D. Power and Associates report providing detailed comparison of GM Integrated Quality Strategy with its competitors >> The integrated quality strategy unites all parts Plant Quality of GM in initiatives to drive improvement In the J. D. Power and Associates 2004 Initial toward common quality goals. Business plans in Quality Study, GM plants received the Gold and each functional group, such as Engineering, Silver awards for highest initial quality in Purchasing, Marketing, and Manufacturing North/South America for three years running. provide linkages to the quality strategy and Vehicle Dependability clarify the role each organization plays in the attainment of the quality goals. GM continues to focus on robust problem solving and rigorous production control to Performance provide outstanding quality. Its focus on quality Highlights: begins early in the design phase to develop • Three GM manufacturing facilities in North products that launch flawlessly with built in America were awarded top awards in the reliability and durability. 2005 first quarter J.D. Power and Associates Initial Quality study. • Warranty cases in GME have dropped 65 percent since 1999.

General Motors 2004/05 Corporate Responsibility Report 4-37 Our Products Vehicle Quality

Customer Satisfaction to the improvement in their companies, value The focus on quality continues to the customer and their demonstration of excellence of experience at the dealership. The J. D. Power and products made in Korea. The L6 Magnus was Associates 2004 Customer Service Index (CSI) cited for its exceptionally quiet ride and Study measures customer satisfaction with segment-leading engine performance including dealer service departments during the first three outstanding fuel efficiency and class years of ownership. leading torque. GM Europe ‘Excellent' Quality Teams Three voluntary ‘Quality Circle' teams of GM Over the last five years, GME's consistent quality India employees participated in an annual management has yielded measurable results. national convention organized by the Quality The number of warranty cases fell by 65 percent Circle Forum of India (QCFI) in December 2004. between 1999 and 2004. This has direct The GM Quality Circle teams select and work on correlation to warranty costs, which fell by 45 various quality improvement projects involving percent over the same period of time. products, processes and facility management. The three GM India teams – who were among Another indicator of improved quality is the very 441 Quality Circle teams representing various high satisfaction rate among Opel/Vauxhall industries - were all placed in the excellent dealers. In 2004, 96 percent expressed category by the QCFI. The QCFI is an satisfaction or complete satisfaction with the autonomous body, which promotes the delivery quality of Opel/Vauxhall cars. Quality Circle culture in India. GM Asia Pacific Technology Frontier Award

GM Daewoo Technology Frontier Award For Magnus

In 2004, the Daewoo L6 Magnus was awarded the 2004 Technology Frontier award by the Korean Standard Association. Designed to encourage improvements in quality and the development of world-class products by Korean companies, winners of the award are selected on the basis of their innovation, their contribution

General Motors 2004/05 Corporate Responsibility Report 4-38 Our Products Vehicle Safety

Introduction Motor vehicle safety involves not only the design of the vehicle, but the manner in which it is driven, and the driving environment as well. GM is committed to researching and implementing programs and technologies that enhance the safety of vehicles. GM wants to assist drivers to operate their vehicles to avoid hazards , and to help protect occupants in the event of a vehicle crash. GM also focuses on the circumstances that occur after a crash.

GM's vehicle safety priorities are guided by analysis of the real-world experience that customers have with motor vehicles. An understanding of injury risk, and potential ways to reduce it, are the main factors that help GM set safety policies, undertake advanced safety research, and implement product safety systems and features . GM also encourages governments, GM Donation for Child Safety Seats policy leaders and individuals to pursue data collection, safety policies, initiatives and responsible behaviors that are based on science Road safety is a complex system involving and the real-world potential to reduce vehicles, roadways and drivers. GM is proud to societal harm. be a leader in global research, engineering, product innovation and external engagements To summarize, GM pursues a continuous road to improve road safety and reduce injuries safety strategy: before, during, and after a crash. and fatalities.

Although road fatalities have declined sharply in Making Vehicles Safer developed countries, fatalities are projected to increase significantly in developing countries where it is often the most vulnerable users - pedestrians and cyclists - who are at greatest risk.

Road traffic safety is a function of a number of interrelated factors, including the condition of the road infrastructure, cultural norms, behaviors of all roadway users, emergency response, the vehicle and other technologies and the legal framework.

Helping drivers avoid crashes and making General Motors conducts its 15,000th vehicles safer is a priority for GM. Collaborating crash test with road safety stakeholders to help advance an understanding of the global and local road traffic challenges and help implement effective GM strives to make each new model safer than risk countermeasures is also a key element of the one it replaces. Vehicle-based safety GM's road safety strategy. strategies generally fall into three categories:

General Motors 2004/05 Corporate Responsibility Report 4-39 Our Products Vehicle Safety

• BEFORE: Collision avoidance - technologies velocity of the vehicle's center of mass. Also, GM designed to help the driver avoid potential vehicles are designed to help reduce injury risk crashes (sometimes called 'active safety' for occupants in the 'second' collision, which is technologies), between the vehicle interior as it responds to • DURING: Crashworthiness - designs and the forces imposed by object that collides with technologies that help mitigate the injury the vehicle, and the occupants. potential of a crash (sometimes called 'passive safety'), and The vehicle structure helps provide energy • AFTER: Post-crash - systems that can help absorption and occupant protection. GM alert emergency rescue to a crash and help develops its vehicles to address many types of provide information to aid rescue specialists. crashes. The vehicle's body is designed to help absorb energy by deforming in a controlled GM also encourages safer driving behaviors, manner during a collision. A high strength steel such as wearing safety belts and avoiding cage surrounds the passenger compartment to distractions. More >> help provide protection.

Before: Crash Avoidance • Design for Crash Compatibility >> Crash avoidance technologies are intended to • Automatic Air Bag Suppression Systems >> assist road users to avoid potential collisions • Saab Active Head Restraint System >> under various driving and adverse environmental or operating conditions (e.g., After: Post Crash lighting conditions, limited handling or braking). After crashes, GM's OnStar system can transmit a signal to alert the OnStar center of potential • StabiliTrak Control System >> circumstances that may require emergency help. • Daytime Running Lamps >> Also, OnStar customers can push a button to • AntiLock Brakes >> seek help from the OnStar Center for themselves • Traction Control >> or other road users. The Advanced Automatic • Tire Pressure Monitoring Systems >> Crash Notification system can provide data about the crash to the OnStar center that may During: Crashworthiness help emergency rescue provide trauma Vehicle crashworthiness is measured by analysis assistance specific to the crash. of real-world collision data and the likelihood of injury in a collision. Crashworthiness comes from • OnStar >> an optimized vehicle structure and by vehicle restraint technologies. StabiliTrak and OnStar as standard In January 2005, GM announced that OnStar and In every collision, the kinetic energy of the electronic stability control will become standard vehicle (a function of vehicle weight and speed) features for retail customers in the U.S. and must be dissipated. Energy dissipation comes Canada, covering all segments and prices (except primarily from the deformation of the vehicle or for a limited number of commercial vehicles). by friction, usually though the tires. How a vehicle responds to the forces, along with OnStar-equipped vehicles will be available on human tolerance levels, will determine virtually all cars and light duty trucks sold to occupant injury. retail customers by the end of 2007. The first year of OnStar safety and security service is GM vehicles are designed to help protect included on all OnStar-equipped vehicles. occupants in the 'first' collision, which acts to deform the vehicle structure and change the

General Motors 2004/05 Corporate Responsibility Report 4-40 Our Products Vehicle Safety

The StabiliTrak Control System will be standard StabiliTrak is GM's electronic stability control sys- equipment on all GM cars and trucks sold to tem (ESC), which enhances vehicle stability on a retail customers by the end of 2010, excluding variety of road surfaces, particularly on slick sur- medium duty trucks and the H1. StabiliTrak will faces or during emergency maneuvers. be standard on all GM SUVs and vans by the end of 2007. Today, StabiliTrak is standard on our The system: passenger vans, large SUVs, many mid-size SUVs, and is available or standard on other cars and • Maximizes handling and braking dynamics light duty trucks. As enablers of electronic by using a combination of systems and stability control, antilock brakes and traction sensors including ABS, traction control and control will become standard as well. electronic suspension • Continually monitors the driver's intended Read more about the latest safety features >> vehicle path, measuring steering angle, wheel speed, brake pressure, lateral Latest Safety Features acceleration, longitudinal acceleration and yaw rate. This information is provided to an Examples of continuous safety: before, during, electronic control module that continually and after a crash: monitors vehicle dynamics • Intervenes when it senses one or more of the Before: Crash Avoidance wheels slipping, loss of lateral traction (side • StabiliTrak Control System >> slip), or detects under-steer (snow-plowing) • Daytime Running Lamps >> or over-steer (fish-tailing). Although the • AntiLock Brakes >> system cannot overcome the laws of physics, • Traction Control >> it automatically adjusts engine torque or • Tire Pressure Monitoring Systems >> brake pressure at individual wheels to help to steer the vehicle in the intended path. During: Crashworthiness • Design for Crash Compatibility >> StabiliTrak can assist the driver by: • Automatic Air Bag Suppression Systems >> • Saab Active Head Restraint System >> • Helping to move the vehicle where the driver intends it After: Post Crash • Helping to control or minimize fishtailing on • OnStar >> snowy or wet roads • Assisting the driver in maintaining control StabiliTrak Control System while cornering on wet roads or uneven road surfaces, such as puddles or snow piles • Improving the stability and steering ability of the vehicle while driving on snowy or wet roads • Helping the vehicle respond more naturally and predictably to the driver's steering commands, even in avoidance maneuvers.

More than two million GM vehicles have been sold in North America with StabililTrak. GM has produced more vehicles in more different market segments with vehicle stability enhancement systems than any other manufacturer. GM was 15 Passenger Van With StabiliTrak the first automaker in the segment to add

General Motors 2004/05 Corporate Responsibility Report 4-41 Our Products Vehicle Safety

StabiliTrak as standard equipment on its Savana control on most slippery surfaces by reducing and Express 15-passenger 3500 155-inch wheel spin. extended wheelbase vans. Tire Pressure Monitoring System In 2006, GM will offer Proactive Roll Avoidance, Tire maintenance and proper use are important. an enhancement to StabiliTrak. Proactive Roll Overloading tires can cause overheating as a Avoidance is designed to help stabilize a vehicle result of too much friction and may result in an during concerning situations to help reduce the air-out. Under- inflated tires pose the same risk of a rollover. It is scheduled to be danger as overloaded tires. implemented on our full-size SUVs and vans. Currently, more than four million GM cars are Daytime Running Lamps equipped with tire pressure monitors (TPMs) - Daylight running lamps (DRLs) are exterior front more than any other manufacturer. The system lamps that automatically illuminate when a uses either the antilock brake system (ABS) or vehicle is started. DRLs increase vehicle visibility separate sensors mounted in each wheel. A for other drivers and pedestrians in a variety of warning light on the instrument panel or daytime conditions including fog, rain, dusk and message displayed on the driver information bright sunlight. In 1995, GM decided to include center, along with an audible warning, alerts the DRLs in all of its new vehicles in the US and driver to check air pressure. A survey of GM Canada. Research now shows that this safety vehicles equipped with TPM showed significantly feature reduces daytime, multi-vehicle crashes better tire pressure levels than in those not up to 12.5 percent and car-to-pedestrian crashes equipped. Correct inflation reduces tire wear by up to 15 percent. Statistically, GM customers and maintains performance characteristics. have probably avoided well over 37,000 collisions since 1995. To date, GM has sold more In 1968, GM opened a Tire and Wheel Systems than 30 million vehicles in the United States and Laboratory at the Milford (Michigan) Proving Canada with DRLs as standard equipment. Ground. The research lab helps to ensure the original equipment tires on our vehicles perform In December 2001, GM asked NHTSA to require safely and effectively. GM's focus on tire safety all automakers to install DRLs on new vehicles also includes bumper-to-bumper warranty sold in the U.S. The petition covered passenger protection, and its exclusive Tire Performance vehicles, multipurpose passenger vehicles, trucks Criteria (TPC) system. and buses. Daytime running lamps are already mandatory in Canada and in several European Design for Crash Compatibility countries including Finland, Sweden, Norway, Since the mid-1990s, GM has been designing Iceland and Denmark. many of its light trucks and vans to be less damaging to passenger cars in the event of a Antilock Brakes crash. Aligning light trucks' front structural Antilock brakes are available on virtually all GM components with the equivalent structures on vehicles. Antilock brakes help drivers control a cars can help reduce the likelihood of override vehicle during hard braking on most slippery and underride in a collision. In 2003, GM surfaces. They work by reducing wheel lock-up announced its support for a new, voluntary thereby helping the driver maintain steering commitment by the auto industry and the control. Insurance Institute for Highway Safety to improve compatibility in crashes between light Traction Control trucks and passenger cars. By September 1st, Traction control is available on many passenger 2007, 50 percent of all vehicles offered in the cars and trucks. It helps the driver maintain U.S. and Canada, by participating manufacturers,

General Motors 2004/05 Corporate Responsibility Report 4-42 Our Products Vehicle Safety

will be designed to meet the new voluntary seat is detected, or when a smaller person, such criteria. By September 1st, 2009, 100 percent of as a child who has outgrown child restraints, participating manufacturers' vehicles must meet occupies the passenger seat. It also is designed the criteria. to turn off the air bag if no occupant is detected.

Vehicles representing about 39 percent of GM's The passenger sensing system is designed to 2004 model year pickup, sport utility vehicle and turn on the passenger frontal air bag if the full-size van sales meet the guidelines covering system senses that a person of adult size is front-to-front crashes between light trucks and sitting properly in the right front passenger seat. vans and passenger cars. All 2004 GM minivans and crossover vehicles meet the guidelines. For some children who have outgrown child restraints and for very small adults, the To meet the voluntary safety criteria in front-to- passenger sensing system may or may not turn side crashes, GM will continue to enhance side off the passenger frontal air bag, depending impact protection for occupants and expand the upon the person's seating posture and body application of side impact air bag technologies build. Everyone in the vehicle who has outgrown such as seat-mounted and side curtain air bags. child restraints should wear a properly fitting Automatic Air Bag Suppression Systems safety belt – regardless of whether the air bag is on for that person. In 2002 GM achieved another major safety milestone by becoming the first automaker to The system met the Federal advanced air bag implement an advanced passenger frontal air requirements a year early. In 2006, GM's bag sensing system that automatically turns Passenger Sensing System will be implemented off the front passenger air bag under on many cars and light duty trucks across the certain conditions. vehicle fleet.

The result of nearly a decade of research, Child Safety development and testing, GM's passenger GM continues to recommend that children who sensing system collects information that helps are 12 years old and under should ride in a rear the vehicle's air bag computer determine seat, properly restrained. Crash statistics show whether the front passenger air bag should be that children are safer if they are restrained in a turned on (may inflate) or not. Sensors gather rear seat. Even in vehicles equipped with the information on the occupant's weight and the passenger sensing system, this recommendation type of pressure placed on the seat to help applies to an infant riding in a rear-facing infant determine whether the right front passenger seat, a child riding in a forward-facing child seat, seat is occupants by a smaller occupant, who an older child riding in a booster seat, and may be at greater risk of injury from a children large enough to wear a safety belt. For deploying air bag. further information on how to properly secure children in a motor vehicle, please visit The system also uses a sensor in the passenger- www.ourpreciouscargo.com. side seat belt to measure how much tension is exerted by the seat, which helps the system GM also has created a web site, determine the type of occupant that may be on http://www.gm.com/company/gmability/ the passenger seat. safety/protect_occupants/air_bags/index.html, which provides extensive information, including The passenger sensing system is designed to videos, about GM's air bag leadership, the turn off the passenger frontal air bag when an importance of air bags in vehicle safety, and how infant in rear-facing infant seat or a small child they work. in a forward-facing child restraint or a booster

General Motors 2004/05 Corporate Responsibility Report 4-43 Our Products Vehicle Safety

GM was the first manufacturer to announce a head restraint does not increase the cost of the feature to help prevent children from being repairs needed after the crash. trapped in car trunks, which includes an illuminated handle to open the trunk. The OnStar system also includes trunk latch and rear seat OnStar is a unique blend of cutting-edge devices to help prevent children from becoming technology and personal service that provides an trapped in the trunk. We are the only unparalleled level of safety, security, and peace manufacturer to conduct research to learn of mind. It is a key element in GM's approach to what devices might be more effective for continuous safety before, during, and after a children who become locked in a trunk. crash. General Motors is making OnStar a standard feature and providing one year of Saab Active Head Restraint System 2 service on all new retail vehicles sold in the The Saab Active Head Restraints (SAHR) system United States and Canada. This expansion will was introduced in 1997 as the world's first active be completed by the end of 2007. GM's head restraint designed to help reduce the risk commitment to increased OnStar availability can of neck injury and is standard equipment in all open new opportunities to help save lives and Saab models. SAHR 2, introduced in 2004, has an reduce the consequences of emergencies that improved activation mechanism in low-speed may occur on the road. rear-end impacts. The system provides multiple adjustment points to allow the head restraint to OnStar, a wholly-owned subsidiary of General be ideally positioned for most front-seat Motors, is the U.S. and Canada's leading provider occupants. A study of rear-end collisions on of in-vehicle safety, security and communication public roads shows that the first generation services using wireless technology and the SAHR gave a remarkable 75 percent reduction in Global Positioning System (GPS) satellite serious neck injuries. network to link the vehicle and driver to an OnStar Call Center, where advisors are available The system is entirely mechanical and is based 24 hours a day, 365 days a year. on the lever principle. An upper padded support is connected to a pressure plate in the backrest OnStar safety and security services include of the seat. In some rear collisions, the occu- automatic notification of air bag deployment, pant's body will be forced by the crash pulse into stolen vehicle location assistance, emergency the backrest, which moves the pressure plate services, roadside assistance, remote door towards the rear. Subsequently, the head unlock, and GM Goodwrench remote vehicle restraint is moved up and forward to help ‘catch' diagnostics. OnStar Hands-Free Calling allows the occupant's head before the head and neck drivers to make and receive hands-free, movement can start. The precise activation of voice-activated calls from their vehicle. More the system is determined by the force with information about OnStar can be found at which the occupant's back is thrown against the www.onstar.com. backrest, the magnitude of the collision and by the occupant's weight. OnStar advisors are available at the touch of a button. Pressing the blue button can A side benefit of the mechanical SAHR system is automatically connect the subscriber to the that in most crashes it needs no repairs to OnStar Call Center, where advisors help with restore it to operational condition after it has safety, security, and convenience services. In an been activated. The head restraint automatically emergency or life-threatening situation, reverts to its initial position and is immediately subscribers press the red OnStar emergency ready to operate again. As neck injuries usually button. The call is routed to a specially-trained occur in low-speed collisions in which the vehicle OnStar advisor who has access to emergency may sustain only limited damage, the active service providers. The advisor will give

General Motors 2004/05 Corporate Responsibility Report 4-44 Our Products Vehicle Safety

emergency providers the subscriber's vehicle TrailBlazer EXT; GMC Envoy, Envoy XUV, and location and request for help. The advisor can Envoy XL; Pontiac G6; Saab 9-7X; and certain stay on the line and conference in the Chevrolet Cobalts). Using a collection of emergency services provider. strategically located sensors, AACN automatically calls the OnStar center for help if High Value to Users the vehicle is involved in a moderate to severe Recent OnStar research has indicated that frontal, rear, or side impact crash, regardless of drivers place a high value on the OnStar safety air bag deployment. AACN provides crash and security services, especially automatic air severity information to OnStar advisors who bag deployment notification, remote door relay this data to 911 dispatchers, which can unlocks, stolen vehicle assistance, and remote help them quickly determine the appropriate diagnostics. On a monthly basis (based on combination of emergency personnel, interactions from February-April 2005), OnStar equipment, and medical facilities needed at the advisors responded to approximately 36,000 crash scene. remote door unlock requests, over 350 stolen Read more at www.onstar.com >> vehicle location requests, and 22,000 subscriber requests for remote vehicle diagnostic inquiries. Regional Information OnStar encourages its subscribers to be Good Samaritans and call OnStar to report situations GM Europe where emergency responders may be needed. Opel SAFETEC - State-of-the-Art Driver Advisors responded to about 4,500 calls a month and Passenger Protection from Good Samaritans helping others in need. With the use of OnStar's embedded cellular calling system and GPS technology, emergency responders can be quickly directed to the site of stranded motorists, a vehicle crash, or to individuals in need.

Helping the U.S. National Center for Missing and Exploited Children OnStar has joined with the National Center for Missing and Exploited Children in its efforts to help find missing children. OnStar's GPS and wireless technologies plus the expertise of its call center advisors can enable OnStar Opel SAFETEC subscribers to help bring missing children home safely.

Advanced Automatic Crash Notification Opel is committed to the development of state- (AACN) on 12 New Models of-the-art technology to continuously optimize OnStar also plays a key role in the event of a safety both before a crash (active safety) and crash. If an air bag deploys in an OnStar- during a crash (passive safety). The SAFETEC equipped vehicle, the OnStar call center is system integrates all standard active and passive automatically notified within seconds of the safety features , including the innovative IDS deployment. GM also offers the new Advanced Plus chassis, a comprehensive restraint system Automatic Crash Notification (AACN) on 12 of its and a safety bodyshell with all-around models in 2005 (Buick Rainier; Cadillac STS; protection. Chevrolet Malibu, Mailbu Maxx, TrailBlazer, and

General Motors 2004/05 Corporate Responsibility Report 4-45 Our Products Vehicle Safety

The networking of various state-of-the-art, It is important to Opel that all future electronic-based systems plays an increasingly developments of intelligent vehicle safety important role in active safety. In April, Opel systems make life easier for the driver. However, presented a Traffic Jam Assistant with vehicle even the most sophisticated electronics do not environment monitoring function as part of the relieve the driver of responsibility for control of INVENT initiative, which is supported by the the car. German Federal Ministry of Education and Research. This system is intended to help Active Safety Features simplify the driver's task in stop-and-go traffic, With the application and networking of state-of- as well as to increase road safety. Put simply, the the-art electronic systems, Opel plays an system is intended to help the car see, think and important part in helping prevent dangerous react appropriately to different situations. In situations, which can result in major collisions. traffic jams the system is intended to Powerful electronics control the Anti-lock automatically keep a pre-defined distance to the Braking System (ABS) together with Brake Assist vehicle in front, adapt its speed accordingly, and and Electronic Brake Force Distribution (EBFD), decelerate the car to a standstill when necessary. newest-generation Electronic Stability Program (ESPPlus), Traction Control (TCPlus), as well as At its presentation, Opel demonstrated the Cornering Brake Control (CBC). Opel's IDSPlus Traffic Jam Assistant's potential for further chassis with Continuous Damping Control (CDC) development for every day suitability, and Opel and Integrated Chassis Control (ICC) sets new engineers are now further developing the standards in active safety. The high-tech chassis system. Their work also has to take future costs has now been further developed for the new for the customer into account, since Opel's Zafira and makes its debut in the compact van guiding principle is to make usable, innovative class. Additional innovative technologies include technology accessible to as many drivers as Adaptive Forward Lighting (AFL) with steering- possible at affordable prices. A next step is linked bi-xenon headlamps, TPMS (Tire Pressure networking with other driver assistance systems Monitoring System) and 'pulsed' brake lights such as navigation systems or those that that flash prominently in the event of monitor local road traffic conditions. The emergency braking. Opel is one of the first engineers' goal is that, once the car has 'seen,' manufacturers to introduce these 'pulsed' 'thought,' and 'reacted,' it should be able to brake lights. communicate with other cars so as to make road travel even safer. Passive Safety Features Passive safety helps reduce the risk of injury to In addition, Opel is testing a Lane Departure passengers in the event of an crash. Opel designs Warning (LDW) system, which is designed to vehicle to internal development goals as well as identify when the car drifts - due to driver's lack compliance with compulsory requirements. The of attention or tiredness - too close to the lane main passive safety features are a safety edge. The system warns the driver with visual bodyshell with all-around protection system, and acoustic signals enabling immediate safety steering column, active safety belt system, correction of the car's course. Adaptive Cruise the patented Pedal Release System (PRS), Control (ACC) is also being tested. ACC comprehensive air bag systems, seat systems automatically decelerates the vehicle when it with active head restraints and child's seat comes too close to cars or other obstacles in system. front. As soon as the road becomes clear, the system accelerates the vehicle back to the Five Stars for Zafira specified speed. Opel Astra Earns Five Stars in Euro NCAP Tests Euro NCAP Test (June 2004)

General Motors 2004/05 Corporate Responsibility Report 4-46 Our Products Vehicle Safety

Saab 9-3 Convertible named UK's most secure Saab Develops Drivers Attention open-top car - British Warning System Saab is helping drivers stay focused on the road Insurance Car Security Awards (BICSA) by developing a safety system that monitors eye and head movements, issuing a warning signal if The new Zafira's highly effective safety concept the attention of the driver strays long enough to has earned the maximum five-star rating for risk causing a crash. passenger safety from Euro NCAP experts. The Zafira's optimized crash behavior is mainly due "The other car appeared from nowhere! I just to its newly developed body. The energy didn't see it." Such comments are often made by generated in a frontal collision is absorbed by drivers after a crash or a near-miss. In truth, it is pre-defined deformation zones, located directly an admission that for a brief moment they were in front of the high-strength occupant cell. In a not concentrating fully on what was happening side-impact collision, the force of the impact is outside the car. distributed through the stable sidewall design over a wide surface area into the vehicle If we're honest, it's an experience behind the structure. wheel that most of us would admit to having had at one time or another. It is understandable Zafira - One of the First Models to because drivers are only human beings and can Comply with New EU Guidelines on have their attention momentarily distracted for Pedestrian Protection a whole number of reasons. It could be a case of The new Zafira is the first Opel model and one of searching around for that favorite CD; looking at the first in the industry, to comply with EU an advertising billboard a little too long; 'rubber guidelines on pedestrian safety for new models, necking' while passing the scene of an crash, or which came into effect across Europe on trying to find a small turn-off along an October 1, 2005. unfamiliar road.

The Zafira incorporates a number of design- Taking into account vehicle speeds - at 90 kph, a related features intended to reduce the risk and car travels 25 meters in just one second - the level of injuries to pedestrians, including energy consequences of such lapses, no matter how absorbing foam in front of the aluminum innocent or brief, can be extremely serious. bumper beam and special bumper reinforcements. A series of design features Saab is now pioneering a unique driver attention relating to the engine hood were also required. warning system that is designed to overcome The hood hinges are deformable, as are the side the hazard of 'human error'. It is based on what fender mounting brackets. There is a defined the driver actually does behind the wheel, deformation zone in the impact-damage area instead of what he or she should be doing. under the hood, and the components located directly below it are designed to yield Two miniature cameras with infra-red lenses are under load. installed in the car to monitor the driver's eye and head movement. As soon as the driver's This makes an important contribution to the gaze moves away from what Saab calls the protection of more vulnerable road users and 'primary attention zone', the central part of the underlines Opel's expertise in implementing windshield in front of the driver, a timer starts innovative safety concepts. counting. If the driver's eyes and head do not return to the 'straight ahead' position within

General Motors 2004/05 Corporate Responsibility Report 4-47 Our Products Vehicle Safety

about two seconds, a buzzer will sound. And if road crash study conducted by Folksam, the there is still no response, a brake pulse will be country's leading insurance company. delivered through the car's ESP system. The Folksam report, 'How Safe is Your Car?', is The measurement and processing of the infra- published every two years and its findings are red image includes the relationship between eye based on an assessment of personal injuries in gaze direction and head movement. It is collisions on Swedish roads involving 138 sufficiently accurate to detect when the driver different car models. In winning Folksam's safest retains some peripheral vision of the road ahead car award, the Saab 9-5 and 9-3 hatchback were - such as while looking in the rear-view mirror or found to carry the lowest injury risk rating. turning a corner - and will consequently allow a slightly longer time to elapse before activating The findings are based on an analysis of 94,100 the warning buzzer. car-to-car road crashes in Sweden since 1994 involving injuries to 35,400 occupants. An injury The software is speed-sensitive. In this way, the risk measurement is produced for each car system can distinguish between a busy, city model on which there is sufficient data available. driving environment and more open highway driving at faster speeds. Apart from winning Folksam's overall award, the Saab 9-5 and 9-3 hatchback each topped their In low speed, as in city driving, there is a wide respective category, for large and medium -sized driver attention zone, allowing for plenty of cars. The Saab 9-5 also won the safest car award head movement but a shorter time 'buffer', two years ago. before the warning buzzer is triggered. High speed mode will revert to a narrower attention Both models have been developed according zone and a longer time buffer due to reduced Saab's real-life safety philosophy, which involves traffic densities. computer simulations and crash testing designed to replicate what happens in real To further distinguish between prevailing traffic collisions on real roads. These are derived from conditions, the warning system could also be reports in a Saab database now covering more linked to the satellite navigation system. The than 6,100 real-life crashes involving Saab cars 'buffer' time zone would then, for example, go to on Swedish roads. a short 'zero tolerance' setting when the car is near a school or a hospital. GM Asia Pacific Infra-red imaging has been chosen as it gives a Multinational Research clear reproduction independent of light Two new multinational road safety research conditions. For maximum accuracy, two cameras projects involving Holden funding and expertise are currently fitted to a 9-3 Sport Sedan test and may offer benefits for the entire worldwide road development car, one at the base of the driver's safety community. In the first project Holden is A-pillar and the other in the center of the front using its crash test expertise to replicate real fascia. In commercial production, these very world crashes in order to calibrate a computer small, mini lens cameras would be completely model for calculating brain injury. The other hidden behind the main fascia paneling. project focuses on far side impact crashes and was instigated following research data, which Saab 9-5 and Saab 9-3 hatchback rated identified that 40 per cent of harm from side as 'Safest Cars' impact crashes resulted from collisions to the side of the vehicle furthest away from the driver. The Saab 9-5 and Saab 9-3 hatchback are rated Both projects involve the Monash University as the safest cars in Sweden following the latest Accident Research Centre in Melbourne in

General Motors 2004/05 Corporate Responsibility Report 4-48 Our Products Vehicle Safety

collaboration Holden and Monash University Accident with Research Centre New Vehicle Simulator organizations Five Stars for Kalos such as Wayne State and George The Daewoo Kalos features high strength steel, Washington which accounts for 46 per cent of its body shell, Universities in innovative safety measures and the first the US, Sweden's application of side impact airbags by a Korean Autoliv, the automaker in the subcompact segment. Australian Research Council and the United States National Holden Brain model used Highway and to improve vehicle safety. Traffic Safety Administration.

Driver Behavior Steers Road Safety Holden and the Monash University Accident Research Centre have redeveloped a state-of- the-art vehicle simulator to carry out advanced research into the way people behave while driving. The simulator is the only one of its kind in the southern hemisphere and may help influence the design of future Holden products through its results. The new system is intended to help simulate real world driving conditions with real time performance feedback. It can measure interaction between the driver and vehicle controls, eye and head movement, and monitor distraction and fatigue. The research program will help contribute to the design of future vehicles and help assess and minimize driver distraction.

Holden and Monash University Accident Research Centre new vehicle simulator

General Motors 2004/05 Corporate Responsibility Report 4-49 Our Products Vehicle Recycling

Global Approach assembled at the Lansing Grand River Michigan Assembly Plant, uses 50 percent recycled tire Since 1994, vehicle manufacturers around the rubber in the radiator side baffles. For the 2004 world have been promoting the responsible model year, over 27,000 pounds of recycled tire treatment of end-of-life vehicles (ELV) regardless rubber were used for this application, which of where they are used and retired. In GM's equates to 2,000 scrap tires being diverted from North American, European and Asia Pacific the landfill. In the plant, over 90 percent of the regions, the goal is to improve the ELV vehicle purge solvent used for paint line cleaning is infrastructure through partnerships. For recycled. GMability.com details environmental example, across North America GM continues to features for several GM vehicles. develop new technologies through the Vehicle Recycling Partnership and its recycling GM is focusing on recycling-oriented design, infrastructure partners . utilizing recycled plastics in new vehicle production as well as working with a network of GM continues to design our vehicles to be as qualified end-of-life vehicle dismantlers. recyclable and recoverable as is reasonable, and Recycling old cars will increasingly become an to implement these designs on vehicles around economically feasible part of a car's life cycle as the world. GM has developed global standards the demand for recycled materials grows. For also in order to gain common benefits across example, Opel uses more than 30,000 metric regions. tons of re-processed plastics annually. The goal is to successively increase the amount of recycled GM is first among U.S. automakers to provide materials used by optimizing production access to vehicle recycling information by procedures. In cooperation with medium-sized posting dismantling manuals on GMability.com. suppliers, the International Technical GM now has the 2005 dismantling manuals Development Center (ITDC) in Rüsselsheim available online. The manuals provide worked out the requirements for using dismantlers with information on which parts of custom-made recycled materials in the a vehicle can be recycled and how to remove the production of headlight housings. part from the vehicle. Currently, around 80 percent by weight of vehicles at end of life (ELV) GM provides all dismantlers in Europe with are recycled. With ELV dismantling manuals now information on all removable plastic easily accessible, there is potential to components including weight, composition, and significantly increase non-metal recycling, the time it takes to dismantle. For example, it is increasing the overall percentage of the important in mechanical recycling that vehicle that is recycled. incompatible plastics are not mixed after shredding. The International Dismantling Also, pre-treatment manuals that provide detail Information System (IDIS) provides all for removing automotive fluids and substances dismantlers in Europe with detailed information of concern are available. GM is committed to on all removable plastic components including reducing the use of substances of concern in weight, composition, and the time it takes to vehicles. GM's global standard, GMW 3059, is dismantle. This is sent out annually on a DVD, used in all vehicle programs worldwide for with two interim updates on IDIS' website. The handling restricted and reportable substances. system encompasses around 900 models from 24 automakers with nearly 43,000 components. ‘Environmental Features' brochures are All information is available in 21 languages. By developed for new vehicle programs. The 2015, the proportion of materials from end-of brochures highlight examples of environmental life vehicles (ELVs) that must be recyclable is to performance of the vehicle and identifies where be increased to 95 percent of vehicle weight. it was built. For example, the Cadillac SRX,

General Motors 2004/05 Corporate Responsibility Report 4-50 Our Products Vehicle Recycling

Today GM works together with other The PMRV team continues to provide critical automakers on future separation technologies support during assessment of the materials to constantly increase the recycling quota and proposed for use at GM facilities. Timely review meet this ambitious goal. and communication to material and designing engineers and local HMCCs assist plants to Materials meet start-up deadlines and material needs. For example, a silicone sealant that provided Selecting the right material is vital for product improved performance at reduced cost was quality and protecting the environment. GM's reviewed for use at the Tonawanda Engine plant. designers seek to: Employee health and safety concerns were also alleviated by the PMRV process, and production • use non-toxic material, was not affected. The timeliness of these PMRV • increase the use of easy to recycle materials, reviews ensures a smooth transition for all new and production systems. • choose recycled over virgin material whenever possible. Manufacturing Planning Studies and DfE Assessments take a proactive look at GM uses various complementary information processes and materials in conjunction with systems and guides for relevant information the PMRV process. These early assessments and ideas about environmentally responsible analyze systems planned for use in facilities, product design. Product specifications list incorporating the DfE principles - prevent, industry and GM standards with references to reduce and recycle. The process considers a further data sources. GM specifications such on wide variety of items ranging from how the ‘restricted and reportable substances' give material is brought into the facility, stored and engineers and suppliers information on material transported, to correct ventilation and recycling inputs that are prohibited or subject to of any waste that may be created. declaration requirements. Creating a Market for Recycled Materials Health and Environmental Impact To optimize dismantling, GM addresses issues Assessments early in the vehicle development cycle and also is The materials recommended for use in our making a significant contribution to creating a products and manufacturing processes are market for recycled materials, which helps assessed for potential health and environmental stimulate demand for recycled plastics, impacts prior to approval using several encouraging greater levels of recycling in processes. Materials are assessed according to the future. the Productive Material Review Process (PMRV), which supports the release and material GM has continuously increased the number of engineering community and is part of the parts in each car line that can be manufactured Design for the Environment (DfE) process. If a from recycled plastic materials. Additional parts material is approved, the information is then are constantly being produced from recycled sent to the plant Hazardous Materials Control plastic. Committee (HMCC) for local approval and implementation. The HMCC assesses potential In 2000, the European Parliament passed a health and environmental impacts of those Directive that addressed costs, recycling and materials that support the manufacturing recovery targets and substance bans for ELVs. To process (indirect materials), but do not actually meet these requirements, GM has a dedicated become part of our products. group to coordinate the take-back and recycling of GM's European ELVs. The group is working Read more on chemicals management in our facilities >>

General Motors 2004/05 Corporate Responsibility Report 4-51 Our Products Vehicle Recycling

with Product Engineering to step up efforts GM continues to support sustainable solutions under way in each part of the company to to the treatment of ELVs. Research into new increase the use of recycled materials across its recycling techniques is focused on technical entire product range and to establish markets capability and economic viability. for recycled material. The Design for Recycling (DFR) concept has been adopted for all newly More on GM Europe's recycling approach >> designed vehicles. DFR includes, for example, reduced complexity of materials and improved International Material Data System fastening technology (easy to dismantle). All Details about the materials that suppliers use plastic components are marked to identify the in parts and components are essential. This material content. DFR concepts are conveyed to information is harmonized and made available design engineers and suppliers through global to the auto industry in the form of an specification GMW 3116. International Material Data System. GM has been using this information to assist our engineers to ‘design-in' the products and processes that benefit vehicle recycling at end-of-life and reduce the environmental footprint of our suppliers. It has also been a key information source to ensure compliance with the European Union ban on certain heavy metals.

GM operates a specialist website to provide information to suppliers on how to help it become best in class for environmental product and process development and improvement. For GM is developing effective partnerships with details, visit www.gmsupplypower.com. businesses involved in taking back, treating and recycling ELVs to reduce automotive waste going to landfill to five percent of a vehicle's weight over the next 15 years. The clear way forward for achieving this target is via post shredding technology (PST). PST enables the separation of organic (plastic) fractions, as well as additional metal recovery, from other fractions (i.e. inert fractions). One of many uses for the organic fraction is in blast furnaces, where it can serve as a substitute for coal or heavy oil as a reducing agent for the production of iron. From an environmental and economical point of view, such "feedstock" recycling is expected to play an increasingly important role in comparison to mechanical recycling.

General Motors 2004/05 Corporate Responsibility Report 4-52