General Motors- Events & Presentations 2008 Gm Bank & Insurance Conference

F. Henderson May 13, 20082008 GM Banker & Insurance Conference

1© 2008 General Motors Corporation. All Rights Reserved

Forward Looking StatementsForward Looking StatementsIn this presentation and in related comments by our management, our use of the words “expect,” “anticipate,”“estimate,” “goal,” “target,” “believe,” “improve,” “intend,” “potential,” “continue,” “designed,” “opportunity,”“risk,” “may,” “would,” “could,” “should” or similar expressions is intended to identify forward-looking statements that represent our current judgment about possible future events. We believe these judgments are reasonable, but these statements are not guarantees of any events or financial results, and our actual results may differ materially due to a variety of important factors. Such factors include, among others: our ability to realize production efficiencies, to achieve reductions in costs and to implement capital expenditures at levels and times planned by management; market acceptance of our products; shortages of and price increases for fuel; significant changes in the competitive environment and the effect of competition in our markets, including on our pricing policies; our ability to maintain adequate liquidity and financing sources and an appropriate level of debt; labor strikes or work stoppages at our facilities or at our key suppliers; financial difficulties of our key suppliers; adoption of new laws or changes in existing laws that may affect the production, licensing, distribution, cost or sale of our products; the final results of investigations and inquiries by the SEC; court approval of the settlement agreement with the UAW and UAW retirees related to the 2007 National Agreement; satisfaction of the conditions to the effectiveness of the post-retirement healthcare benefit plan contemplated by the 2007 National Agreement; changes in economic conditions, commodity prices, currency exchange rates or political stability in the markets in which we operate; possible downgrades for GMAC or ResCap by rating agencies; GMAC’s inability to maintain adequate financing sources for its capital needs; and recent developments in the residential mortgage market, especially in the nonprime sector.

The most recent reports on SEC Forms 10-K, 10-Q and 8-K filed by us or GMAC provide information about these and other factors, which may be revised or supplemented in future reports to the SEC on those forms.

In this presentation and in related comments by our management, our use of the words “expect,” “anticipate,”“estimate,” “goal,” “target,” “believe,” “improve,” “intend,” “potential,” “continue,” “designed,” “opportunity,”“risk,” “may,” “would,” “could,” “should” or similar expressions is intended to identify forward-looking statements that represent our current judgment about possible future events. We believe these judgments are reasonable, but these statements are not guarantees of any events or financial results, and our actual results may differ materially due to a variety of important factors. Such factors include, among others: our ability to realize production efficiencies, to achieve reductions in costs and to implement capital expenditures at levels and times planned by management; market acceptance of our products; shortages of and price increases for fuel; significant changes in the competitive environment and the effect of competition in our markets, including on our pricing policies; our ability to maintain adequate liquidity and financing sources and an appropriate level of debt; labor strikes or work stoppages at our facilities or at our key suppliers; financial difficulties of our key suppliers; adoption of new laws or changes in existing laws that may affect the production, licensing, distribution, cost or sale of our products; the final results of investigations and inquiries by the SEC; court approval of the settlement agreement with the UAW and UAW retirees related to the 2007 National Agreement; satisfaction of the conditions to the effectiveness of the post-retirement healthcare benefit plan contemplated by the 2007 National Agreement; changes in economic conditions, commodity prices, currency exchange rates or political stability in the markets in which we operate; possible downgrades for GMAC or ResCap by rating agencies; GMAC’s inability to maintain adequate financing sources for its capital needs; and recent developments in the residential mortgage market, especially in the nonprime sector.

The most recent reports on SEC Forms 10-K, 10-Q and 8-K filed by us or GMAC provide information about these and other factors, which may be revised or supplemented in future reports to the SEC on those forms.



AgendaAgenda

Key Priorities and GM Operating Strategies

GM Product Strategies

Other Key Issues

Global Technology Leadership



Other Key Issues




Financial Accomplishments: 2005-2007Financial Accomplishments: 2005-2007

Grew aggressively and profitably in emerging markets

$9B structural cost taken out

Tackled tough risk factors

UAW labor agreement largely eliminates health care inflation risk

Continued reduction of GMNA capacity

Improved adjusted earnings and cash flow

Grew aggressively and profitably in emerging markets

$9B structural cost taken out

Tackled tough risk factors

UAW labor agreement largely eliminates health care inflation risk

Continued reduction of GMNA capacity

Improved adjusted earnings and cash flow

Stage set for significant mid-term earnings improvement



2005-2007 Adjusted Financial Results2005-2007 Adjusted Financial Results$ Billions 2005 2006 2007$ Billions 2005 2006 2007

GMNA (7.4) (1.6) (1.5)GME (0.5) 0.4 0.1GMLAAM 0.2 0.6 1.3GMAP 0.4 0.4 0.7

Total Auto Earnings Before Tax (7.3) (0.3) 0.6GMAC Earnings Before Tax 4.2 2.2 (1.1)Corp. Other Earnings Before Tax (1.4) (1.2) (0.8)

Total Earnings Before Tax (4.5) 0.6 (1.4)Taxes 1.0 1.1 1.1

Total Net Income from Cont. Ops. (3.5) 1.7 (0.3)Discontinued Ops. – Allison Transmission 0.3 0.4 0.3

Total GM Net Income (3.2) 2.2 (0.0)

Worldwide Production (000’s) 9.1 9.2 9.3Global Market Share 14.1% 13.5% 13.3%

GMNA (7.4) (1.6) (1.5)GME (0.5) 0.4 0.1GMLAAM 0.2 0.6 1.3GMAP 0.4 0.4 0.7

Total Auto Earnings Before Tax (7.3) (0.3) 0.6GMAC Earnings Before Tax 4.2 2.2 (1.1)Corp. Other Earnings Before Tax (1.4) (1.2) (0.8)

Total Earnings Before Tax (4.5) 0.6 (1.4)Taxes 1.0 1.1 1.1

Total Net Income from Cont. Ops. (3.5) 1.7 (0.3)Discontinued Ops. – Allison Transmission 0.3 0.4 0.3

Total GM Net Income (3.2) 2.2 (0.0)

Worldwide Production (000’s) 9.1 9.2 9.3Global Market Share 14.1% 13.5% 13.3%

Refer to Supplemental Charts in our earnings presentation on GM’s Investor website for reconciliation to GAAP figures



2008 Key Priorities2008 Key PrioritiesContinue to execute great products

Build strong brands and distribution channels

Execute additional cost reduction initiatives

Emerging markets growth

Advanced propulsion leadership

Running the business globally

Continue to execute great products

Build strong brands and distribution channels

Execute additional cost reduction initiatives

Emerging markets growth

Advanced propulsion leadership

Running the business globally



GM Operating StrategiesGM Operating StrategiesDeveloped MarketsDeveloped Markets Emerging MarketsEmerging Markets

Perfect launchesLeading qualityStrong brands

Perfect launchesLeading qualityStrong brands

Product execution/quality

Lower cost portfolioStrong brands &

distribution

Product execution/quality

Lower cost portfolioStrong brands &

distribution

Manage “bad” costsCapacity/supplier footprint changes

Manage “bad” costsCapacity/supplier footprint changes

Cost efficient capacity expansion

Lower structural cost as % of revenue

Cost efficient capacity expansion

Lower structural cost as % of revenue

Leverage global architectures and global sourcingLead in advanced technology development

Leverage global architectures and global sourcingLead in advanced technology development

Revenue & Contribution

Margin

Revenue & Contribution

Margin

Cost Management

Cost Management



North America TurnaroundNorth America TurnaroundGMNA financial results deteriorated in Q1 2008 due to significant weakness in the U.S. Industry and impact of the American Axle strike

Strong acceptance of new product launches

Key turnaround strategies remain unchanged– Execute great products Leading design & quality is key

– Build strong brands Special focus on key car segments

– Strengthen distribution Accelerate 4 channel strategy

– Additional cost reduction Implement labor contracts

GMNA financial results deteriorated in Q1 2008 due to significant weakness in the U.S. Industry and impact of the American Axle strike

Strong acceptance of new product launches

Key turnaround strategies remain unchanged– Execute great products Leading design & quality is key

– Build strong brands Special focus on key car segments

– Strengthen distribution Accelerate 4 channel strategy

– Additional cost reduction Implement labor contracts



U.S. Market ChallengesU.S. Market ChallengesCredit market environment continues to evolve, and banks continue to tightenlending standards

High gasoline prices driving mix shift from trucks to cars

Overall industry clearly under pressure– GM revised outlook for 2008 U.S. total industry to

mid-to-high 15 million units– Q1 industry consistent with GM outlook and plan, but

see more 2008 downside risk than upside opportunity

Credit market environment continues to evolve, and banks continue to tightenlending standards

High gasoline prices driving mix shift from trucks to cars

Overall industry clearly under pressure– GM revised outlook for 2008 U.S. total industry to

mid-to-high 15 million units– Q1 industry consistent with GM outlook and plan, but

see more 2008 downside risk than upside opportunity



Strategies in Other MarketsStrategies in Other Markets

Europe– New assembly plant in Russia to support growth

– Fully leverage GMDAT to support growthof Chevrolet

– Continued focus on multi-brand strategy and quality of share

– Further progress on shifting manufacturing footprint to low-cost

Europe– New assembly plant in Russia to support growth

– Fully leverage GMDAT to support growthof Chevrolet

– Continued focus on multi-brand strategy and quality of share

– Further progress on shifting manufacturing footprint to low-cost




Latin America/Africa/Middle East– Grow!

– New powertrain plant in Brazil to increase capacity of existing assembly plants

– Continue to fill portfolio gaps andoptimize pricing

– Maximize capacity to cost efficientlysupport growth

Latin America/Africa/Middle East– Grow!

– New powertrain plant in Brazil to increase capacity of existing assembly plants

– Continue to fill portfolio gaps andoptimize pricing

– Maximize capacity to cost efficientlysupport growth




Asia Pacific– Rapidly grow in India and pursue growth in

ASEAN markets; new powertrain plant there

– New powertrain plant in China

– Continue to grow in China via multi-brand strategy

– Improve material cost via increased localization

– Expand “lower cost” product portfolio

– Work with partners to increase capacity

Asia Pacific– Rapidly grow in India and pursue growth in

ASEAN markets; new powertrain plant there

– New powertrain plant in China

– Continue to grow in China via multi-brand strategy

– Improve material cost via increased localization

– Expand “lower cost” product portfolio

– Work with partners to increase capacity



AgendaAgenda



Other Key Issues




Other Key Issues




GMAC – Q2 2008 InitiativesGMAC – Q2 2008 InitiativesRefinancing existing GMAC and ResCap bank facilities and pursuing strategic alternatives to ensure liquidity

– GMAC negotiating 2-year $3.5B senior secured credit facility to ResCap, conditioned on successful completion of ResCap’scurrent debt tender and exchange offer

– GM and Cerberus are in discussions to acquire pro rata shared $750M first loss participation in proposed facility

Restructuring of North American Auto Finance operations

Restructuring and divesting assets at ResCap

Restructuring ownership of GMAC Insurance

Formalizing and growing GMAC Bank

Refinancing existing GMAC and ResCap bank facilities and pursuing strategic alternatives to ensure liquidity

– GMAC negotiating 2-year $3.5B senior secured credit facility to ResCap, conditioned on successful completion of ResCap’scurrent debt tender and exchange offer

– GM and Cerberus are in discussions to acquire pro rata shared $750M first loss participation in proposed facility

Restructuring of North American Auto Finance operations

Restructuring and divesting assets at ResCap

Restructuring ownership of GMAC Insurance

Formalizing and growing GMAC Bank



DelphiDelphiDelphi unable to emerge under its Plan of Reorganization,as Plan Investors terminated their investment agreementon April 4

– GM-Delphi Settlement Agreements and agreements with Delphi’s labor unions remain in place but are not generally effective

GM will agree to advance up to $650M to Delphi during2008 in anticipation of effectiveness of the GM-Delphi Settlement Agreements

– Within amount GM would have paid had Delphi emergedfrom bankruptcy

– Would be concurrent with Delphi DIP extension– GM would receive an administrative claim for advances

GM continues to work with Delphi and its stakeholders to facilitate Delphi’s efforts to emerge from bankruptcy

Delphi unable to emerge under its Plan of Reorganization,as Plan Investors terminated their investment agreementon April 4

– GM-Delphi Settlement Agreements and agreements with Delphi’s labor unions remain in place but are not generally effective

GM will agree to advance up to $650M to Delphi during2008 in anticipation of effectiveness of the GM-Delphi Settlement Agreements

– Within amount GM would have paid had Delphi emergedfrom bankruptcy

– Would be concurrent with Delphi DIP extension– GM would receive an administrative claim for advances

GM continues to work with Delphi and its stakeholders to facilitate Delphi’s efforts to emerge from bankruptcy



American Axle StrikeAmerican Axle StrikeThrough end of April, GMNA incurred production losses related to American Axle strike of approximately 230K units– Q1 financial impact of approximately $0.8B EBT

To date, strike has had minimal impact on GM’s ability to meet customer demands

GM will continue to proactively manage schedules across plants to maintain production to the extent possible

GM recently agreed to fund up to $200M to help facilitate a settlement of the work stoppage

Through end of April, GMNA incurred production losses related to American Axle strike of approximately 230K units– Q1 financial impact of approximately $0.8B EBT

To date, strike has had minimal impact on GM’s ability to meet customer demands

GM will continue to proactively manage schedules across plants to maintain production to the extent possible

GM recently agreed to fund up to $200M to help facilitate a settlement of the work stoppage



AgendaAgenda



Other Key Issues




Other Key Issues




Global Technology Leadership Advanced PropulsionGlobal Technology Leadership Advanced Propulsion



Why an Extended-Range Electric Vehicle?Why an Extended-Range Electric Vehicle?

Based on OmniStats Data posted by the U.S. Bureau of Transportation

Typical One-Way Miles from Home to WorkTypical One-Way Miles from Home to Work



Project DrivewayLargest fuel cell vehicle market test

100+ vehicles in the hands of customers

Project DrivewayLargest fuel cell vehicle market test

100+ vehicles in the hands of customers



SummarySummary

Stay focused on our key priorities, operating strategies, and business results

Mitigate risks associated with GMAC/ ResCap, Delphi and American Axle

Drive global technology leadership

Stay focused on our key priorities, operating strategies, and business results

Mitigate risks associated with GMAC/ ResCap, Delphi and American Axle

Drive global technology leadership

General Motors- Events & Presentations 2008 Gm Bank & Insurance Conference

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Transcript of General Motors- Events & Presentations 2008 Gm Bank & Insurance Conference