1. GM Diesel Technology Charles E. Freese V Executive Director, Diesel Engineering General Motors Corporation

2. GM’s Long Term Vision Remove the automobile from the energy and environmental equation

3. Advanced Propulsion Technology Strategy Reduced Vehicle Emissions and Increased Vehicle Fuel Economy Near-TermMid-Term Long-Term Incremental Internal Combustion Engine and Transmission Improvements Hydrogen Fuel Cell Hydrogen Infrastructure Hybrid Electric Vehicles

4. The Propulsion Application Map Drive Cycle Duty Cycle Stop-and-Go (City) Continuous (Highway) Commercial (High Load) Consumer (Light load)

5. Drive Cycle Duty Cycle Stop-and-Go (City) Continuous (Highway) Commercial (High Load) Consumer (Light load) The Propulsion Application Map Heavy Duty Pickup Truck Commuter Car Diesel Hybrid Bus Over the Road Truck Non-towing Highway Gas Car & SUV City Car (Gas Hybrid)

6. Diesel Powertrain Market Today Globally –Medium and heavy duty vehicles (Class 4-8 vehicles) European –Penetration rates in light-duty cars approaching 50 percent Asia-Pacific (Korea, India and potentially China are growing markets) –Strong diesel bias in Korean SUV market (over 90% diesel) North America –Heavy duty pick-up trucks for towing and hauling

7. Why Use Diesels? Heavy duty towing and hauling Fuel economy improvement objectives –Positive influence on CO 2 and fuel economy Improve vehicle performance with lower displacement engine –Fun to drive Achieve benefit of tax incentives in European markets

8. Challenges to North American Light-Duty Diesel Market

9. Chart Assumptions:20,000 Annual vehicle miles Diesel Fuel Economy Advantage: Europe 30%, Bin 5 North America 25% 6% Annual Financing Rate Available Vehicle Mileage, miles Vehicle Mileage Required to Recover Diesel Engine Cost Economic Model – Diesel Break-Even Point Comparison between U.S. & Europe 0 100,000 200,000 300,000 400,000 500,000 010002000300040005000 Initial Purchase Price, U.S. $ 35 MPG 30 MPG 25 MPG 20 MPG Gas=15 MPG North America Gas=Diesel=$1.50/Gal 15 20 25 30 Gas=35 MPG Europe Gas=$3.50/Gal Diesel=$2.75/Gal

10. Europe and U.S. Tier 2 FTP-75 Emissions Light-Duty Emission=Emission IndexXFuel Consumption (g/mile)(g/kg fuel)(kg fuel/mile) StandardNO x PM Bin 100.60 g/mile0.080 g/mile Bin 80.20 g/mile0.020 g/mile Bin 50.07 g/mile0.010 g/mile Bin 40.04 g/mile0.010 g/mile Euro 30.50 g/km0.050 g/km Euro 40.25 g/km0.025 g/km Euro 5 (TBD) 0.08-0.20 g/km0.0025-0.010 g/km NO x (g/km) Bin 10 Euro 4 Euro 3 0.10.20.30.40.50.6 PM (g/mile) PM (g/km) 0.02 0.05 0.06 0.04 0.02 0 Bin 8 NO x (g/mile) 1.00.90.8 0.7 0.60.50.40.3 0.2 0.10 0.08 0.05 0.03 0.01 0.09 0.07 0.06 0.04 0.03 0.01 Euro 5 (TBD) Bin 5

11. Moving to a lower bin adds incremental cost to gasoline off-set vehicles Bin 4 offset 0.07 NO x Fleet 2008 MY + 1 - Bin 8 Diesel 0.20g NO x /mile Diesel penetration 0.04 NO x 4.33 - Bin 4 Gas to Offset Offsetting Diesel NO x Emissions – Tier 2

12. Aftertreatment Systems Balancing the requirements of FTP with US06 NO x Conversion Efficiency (%) 0 20 40 60 80 100 0 200300400500600 SCR Effective Range LNT Effective Range Typical Thermal Operating “Windows” Catalyst Operating Temperature (degrees C) Light Duty Diesel US06 Catalyst Temps Light Duty Diesel FTP Catalyst Temps

13. Advanced Controls Diesel Engine Enabling Technology Development Advanced Boost Configuration s HCCI Homogeneou s Combustion PCCI Pre-Mixed Charge Comb. Reduced Compression Ratio Enhanced EGR Cooling Advanced EGR Systems DPF, SCR & LNT Aftertreatment Low Temp / Low Soot Combustion VVT / VVA

14. Summary Portfolio approach is required for advanced powertrain strategies To compete globally, diesels will be a critical component of the powertrain portfolio Emission regulations, fuel price, taxation based on engine displacement and fuel consumption largely dictate markets where diesels are popular today Diesel technology advancements over past 15 years have radically changed public perception of diesels

15. Summary Market Factors in North America GM continues to apply North American diesel engines where they maximize customer benefits: –Larger vehicles –Towing and hauling utility applications U.S. market has benefited from diesel technology Growing market share of diesel vehicles in the full- size truck segment implies improved U.S. consumer acceptance of diesel powered vehicles Must address North American NO x standards (one sixth that of Europe) at an acceptable cost

16. GM Diesel Technology Charles E. Freese V Executive Director, Diesel Engineering General Motors Corporation

17. Diesel Powertrain Market Today Global diesel demand continues to grow For 2004, European light-duty diesel penetration is approaching 50 percent Asia-Pacific region opening to diesel North American diesel volume is dominated in heavy duty (Class 2) New light duty diesel entries into United States (starting 2004CY)

18. Economic Model – Fuel Price as an Influence Comparison between U.S. & Europe Fuel Price (Dollars/Gallon) 71% 67% 58% 47% 39% 26% 3% 0 1 2 3 4 5 6 7 AustriaFranceSpainItalyGermanyU.K.U.S. Gasoline Base Diesel Base Gasoline Tax Diesel Tax Diesel Penetration Source: U.S. Department of Energy Report, October 2003; Association of European Automobile Manufacturers, April 2003 Note: All Data Valid through December 2002 Correlation with fuel price: R2=0.61