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GM $20.8 BILLION ACCOUNTING CHARGE AS EXPECTED, NOTES FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Feb. 2 /PRNewswire/ -- General Motors Corp.'s (GM) announcement of a $20.8 billion after-tax, non-cash charge to 1992 earnings for adopting the new accounting standard for postretirement benefits other than pensions (FAS 106) is consistent with the company's previous indications. The company had estimated its "transition obligation" liability in a range of $16 billion-$24 billion, depending largely upon medical cost inflation assumptions.
 The charge covers GM's U.S. and Canadian automotive operations, as well as its General Motors Acceptance (GMAC), GM Hughes Electronics (GMHE), and Electronic Data Systems subsidiaries. Of the $20.8 billion, $283 million relates to GMAC and $832 million to GMHE; EDS does not provide such benefits.
 On a pro forma basis for the Sept. 30, 1992 balance sheet, GM had shareholders' equity of $31.9 billion, which the charge will lower to $10.1 billion. At that date, GM's total manufacturing debt was $8.7 billion, and manufacturing company cash and equivalents were $6.3 billion. Pro forma debt
leverage for the charge is approximately 46 debt to A-' from A+' and affirmed GMAC's F-1' commercial paper ratings. However, this charge was not a key factor in the analysis, except as it underscored the competitive disadvantage of these obligations and the company's serious efforts to restructure its costs.
 For 1992 and going forward, GM will book incremental ongoing non- cash expenses of $1.4 billion related to the new standard. At the same time, the company is pursuing all avenues to contain these liabilities, particularly as it concerns its salaried employees. GM is also discussing these cost concerns with union representatives, but its scope of action remains limited by the current labor contract, which expires in September 1993.
 GM's credit trend is improving while GMAC's credit trend is stable. The credit trend is an indicator of expected financial performance over the near term.
 GM is the world's largest producer of passenger cars and light trucks. GMAC provides wholesale and retail financing for GM products.
 -0- 2/2/93
 /CONTACT: Mary Anne Sudol, CFA of Fitch, 212-908-0562/
 (GM)


CO: General Motors Corp. ST: Michigan IN: AUT SU:

WB -- NY029 -- 1735 02/02/93 10:17 EST
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Date:Feb 2, 1993
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