Nuvell, a wholly owned GMAC subsidiary, offers vehicle financing for customers who are unable to obtain credit from traditional sources. Nuvell provides auto financing products and services to GM dealers looking for a variety of options for their organizations. Through National Auto Finance, Nuvell provides both prime and near-prime auto financing for non-GM dealers. In addition, the Private Label division of Nuvell allows motor vehicle manufacturers, Suzuki at present, to realize the value of having a dedicated auto finance company.

GMAC’s International Operations (IO) continues to be a strong contributor offering wholesale and retail financing products to Opel, Vauxhall, Holden, Buick, Cadillac, Chevrolet and Saab dealers and their customers across more than 30 countries in Europe, Latin America and Asia-Pacific. IO’s competitive advantages have been defined in its ability to tailor its wide range of products to meet unique dealer needs, consumer preferences and national requirements in local markets. GMAC IO provides full-service leasing and fleet management as well as vehicle-related insurance products.

GMAC SAIC was the first approved and operational Automotive Finance Institution (AFI) in China in 2004, and is a leader in this market segment by new volume and earning assets. As GMAC continues to realize lower cost of funds, IO is well positioned to profitably grow from existing platforms. In addition to China, the high growth rates expected in Latin America and entry into the Russian market with wholesale financing in 2007 are excellent prospects in IO’s future.

No longer a captive provider, we now are free to bring the benefits of GMAC leadership, expertise and product innovation to a diverse collection of automotive dealers while continuously improving the value we bring to the GM relationship.

We are broadening our horizons. In addition to diversifying our auto operations, we’re developing new cross-branding/selling opportunities, bringing them right to the dealership.

As we go forward, we expect to benefit from the positive effect GMAC independence can have on our cost of borrowings and pass those benefits on to our dealer customers—already evidenced by a reduction in retail rates for U.S. dealerships at year-end 2006. We will continue to pursue our originate-and-sell business model to best leverage our leading automotive financing acquisition network, appropriately manage risk and free up capital through our securitization strategies while retaining service fee income.