The directors are pleased to submit their report to the members together with the audited financial statements for the year ended 31 st December 2007 which disclose the state of affairs of the company.

INCORPORATION AND ADDRESS

GM Nigeria Limited is incorporated in Nigeria under the Companies & Allied Matters Act 1990 as a private limited liability company, and domiciled in Nigeria . The address of its registered office is:

31, Mobolaji Johnson Street ,
Oregun Ikeja, Lagos .

PRINCIPAL ACTIVITIES

The principal activities of the company are: assembly of SKD (Semi Knocked Down) motor components to produce medium and heavy commercial trucks, importation of FBU (Fully Built Unit) pick-ups, marketing and distribution of vehicles through its network or branches and dealers nationwide. The company provides product support for parts and service at its Oregun plant, Port Harcourt branch, Abuja branch and through its numerous Parts and services dealers. The company is also involved in provision of technical training for employees, dealers and fleet customer's personnel.

The company's product range includes Isuzu Light, medium and heavy commercial vehicles (all with various body applications).

RESULTS AND DIVIDEND

The company’s results for the year are set out on page 18. The profit after tax for the year is N158, 573.  000 which will be used to pay the dividend of 167 kobo per share as recommended by the directors.

DIRECTORS

The directors who held office during the year and to the date of this report are shown on the Directors Page.

None of the directors has interest in the equity of the company.

APPOINTMENT AND RETIREMENT OF DIRECTORS

Since the conclusion of the previous Annual General Meeting , Mr. H. I. Uwagboe was appointed as a Director with effect from 16th Oct0ober, 2007.

In accordance with the Articles of Association, Mr. Steve J Koch will retire by rotation at this meeting, and being eligible, offers himself for re-election.

DIRECTORS INTERESTS IN CONTRACTS

None of the directors has notified the company for the purpose of section 277 of the Companies and Allied Matters Act 1990 of their direct and indirect interest in the contracts or proposed contracts with contracts with the company during the year.

SHAREHOLDING

According to the register of members at 31st December, 2007, the following shareholders of the company held more than 10% of the capital issued shared capital of the company:

DEALERS

The following were the company's dealers spread across the length and breadth of the country at the year end:

EMPLOYMENT OF DISABLED PERSONS

The company has a policy of fair consideration of job applications by disabled persons having regard to their abilities and aptitude. The company’s policy prohibits  discrimination of disabled persons in the recruitment, training and career development of its employees.

EMPLOYEE HEALTH, SAFETY AND WELFARE

The company enforces strict health and safety rules and practices at the work environment, which are reviewed and tested regularly. The company provides free medical care for its employees and their families through designated hospitals and clinics.

Fire prevention and fire-fighting equipment are installed in strategic locations within the company’s premises.

The company operates both Group Personal Accident and Workmen’s Compensation Insurance covers for the benefit of its employees. It also operates a contributory pension plan as well as a terminal gratuity scheme for its employees.

EMPLOYEE TRAINING AND INVOLVEMENT

We retain and motivate employees through training and development in order to achieve excellence in performance.

We also encourage employees to improve themselves academically or professionally through self development schemes. Communication is a major industrial relation activity in GM Nigeria Ltd, as such, all employees are kept informed not only on matters relating to them as employees but also on the challenges in the environment where they function and the state of the business. Regular team briefing, knowledge sharing, suggestion boxes and joint consultative committee (JCC) meetings and management & staff conference, are medium of exchange of ideals between staff and management, to improve the communication channel.

AUDITORS

The company’s auditors, PricewaterhouseCoopers, will continue in office in accordance with Section 357(2) of the Companies and Allied Matters Act, 1990 without any resolution being passed. A resolution will however be proposed at the Annual General Meeting authorizing the directors to fix their remuneration.

Dated the 19th day of February,2008
By order of the Board.

Godwin A. Samuel, Esq.
Company Secretary.