GM Chairman and CEO Rick Wagoner Chairs IBLAC

Stresses Importance of Service Industries to Shanghai

Shanghai, China – General Motors Chairman and CEO Rick Wagoner today called on business and government leaders to work together to help Shanghai develop world-class service industries.

Wagoner made his comments during the 17th meeting of the International Business Leaders’ Advisory Council for the Mayor of Shanghai (IBLAC), which he chaired. The theme of this year’s meeting was Accelerating the Development of Service Industries to Support Shanghai ’s Major Business Sectors.

Participants discussed how Shanghai can become a modern metropolis with developed service industries, how the city can leverage the 2010 World Exposition in Shanghai to expand its service industries, and how specialized services can support advanced manufacturing industries.

“The growth and efficiency of services are critical to the welfare of an entire society. They serve as crucial inputs for manufactured goods, enabling companies large and small to compete effectively both domestically and on a global basis,” said Wagoner. “Today’s global knowledge-based economy makes service industries all the more important.”

“As an unmatched destination for foreign investment and an increasingly popular destination for visitors from around the world, Shanghai and China will increasingly be judged on the quality of their service industries,” Wagoner said. “Their significance therefore cannot be overestimated.”

Wagoner pointed out that in most developed economies services represent the largest productive sector. However, in China , services account for only about one-third of gross domestic product. As a result, he said, “there is tremendous room for growth and a tremendous need for growth.”

At the conclusion of today’s meeting, IBLAC participants drew up an action plan that the Shanghai Municipal Government can utilize to promote the development of its service industries.

Wagoner reminded participants that “today is just the first step of a long journey. We have an obligation to do our part to actively drive the implementation of the ideas and recommendations put forth for the good of Shanghai and the good of its people.”

IBLAC was created by Shanghai's mayor in 1989 to provide counsel from business leaders about how Shanghai can improve its investment environment. Its mission is to help Shanghai become a prominent business, educational and cultural center by 2010. IBLAC’s members, who are chosen by the mayor, meet annually to discuss a topic of relevance to the development of the municipality's economy.

General Motors Corp. , the world’s largest automaker, has been the global industry sales leader since 1931. Founded in 1908, GM today employs about 325,000 people around the world. It has manufacturing operations in 32 countries and its vehicles are sold in 200 countries. In 2004, GM sold nearly 9 million cars and trucks globally, up 4 percent and the second-highest total in the company’s history. GM’s global headquarters are at the GM Renaissance Center in Detroit. More information on GM can be found at www.gm.com.