What Confidence!!!!

Health care costs!!!???

Page 2

Profits!!!(but where from???)

Page 44

Automotive lost89 mFinancingmade 2,894m

Page 60

Subtract this from net income

Page 48

This is the source of Profit !!!!

Page 4

Page 7

Where money was lost and why!!!!

GM published a whole page devoted to a national health program

Page 62

Total Assets

Page 62

Total Liabilities

Total EquityDebt/Equity Ratio = 461,480/27,726 or 16.64 – very high

Page 64

Further debt!!!

Page 83

Cumulative Debt!!!

Factors to consider

• GM is facing problems regarding “legacy costs”- agreements signed to provide health care and pension payments to retirees

• Health care costs in the US are the highest in the world, and pensioners are the largest consumers

• Cost per vehicle is estimated at $1,800

• It would be unthinkable for a major US company to advocate a national health care program in the past, but in this statement GM dedicated a whole page to making the case

Introduction by the CEO of General Motors

Confidence of 2004 is gone!!!!

Loss of 10.6 billion!!!

Consolidated Results

                                                                                                                     

                                 

Automotive Losses

Financial Profits

Tax Credit

Add this to automotive

loss of $12,925

$12,925 + 5,878 = 18,803

During 2004 and 2003, Auto & Other had cash outflows related to investments in companies, net of cash acquired, of approximately $50 million and $60 million, respectively.

                                                                                                                                                    

Interest Payments

Downgrading of corporate debt and increased borrowing means higher interest payments

GMAC’s Results

This time not enough to stop a loss!!

Total Assets

Total Liabilities

Total Equity

Debt/Equity Ratio = 460,442/14,597 = 31.54 – double the previous year

FOR RELEASE: 2006-04-03 CONTACTS

GM Reaches Agreement to Sell Controlling Stake in GMAC

Cerberus Led Consortium To Buy 51 Percent Of GMAC EquityGM To Receive $14 Billion In Cash Over Three-Year Period

DETROIT - General Motors Corp. (NYSE: GM) today announced it has entered into a definitive agreement to sell a 51-percent controlling interest in General Motors Acceptance Corp. (GMAC) to a consortium of investors led by Cerberus Capital Management, L.P., a private investment firm, and including Citigroup Inc., and Aozora Bank Ltd. GM expects to receive approximately $14 billion in cash from this transaction over three years, including distributions from GMAC, with an estimated $10 billion by closing.

The transaction strengthens GMAC's ability to support GM's automotive operations, improves GMAC's access to cost-effective funding, provides significant liquidity to GM and allows GM to continue to participate in the profitability of GMAC over the long term through its 49-percent ownership stake.

FOR RELEASE: 2006-04-03 CONTACTS

GM Reaches Agreement to Sell Controlling Stake in GMAC (cont’d)

GM to Receive $14 Billion in CashThe $14 billion in cash that GM is to receive as part of the transaction

includes $7.4 billion from the Cerberus-led consortium at closing and an estimated $2.7 billion cash distribution from GMAC related to the conversion of most of GMAC and its U.S. subsidiaries to limited liability companies. In addition, GM will retain about $20 billion of GMAC automotive lease and retail assets and associated funding with an estimated net book value of $4 billion that will monetize over three years.

General Motors has to sell GMAC – a profitable part Part of the company to get a cash inject.

Factors to consider

• Confidence expressed in 2004 is gone!!

• Real losses once adjusted for tax rebate and finance profits exceed $18.8 billion

• Troubles have been worsened by downgrade of credit interest is more expensive• GM finally announced that it would have to sell its

sole source of profitability – GMAC to raise cash

• Debt/Equity ratio doubled – on the road to insolvency??

CEO’s Opening Statement

The confidence of 2004 is gone

North American market can’t seem to turn a profit

Sales outside North America are doing much better –but still NA is the most important market

“unacceptable” perhaps, but what about the management???

Legacy costs still plague the company

Real Automotive operating loss

Total Assets

Total Liabilities

Total Equity

Equity is negative – GM is technically insolvent!!!

North American Market is worsening

Sales increased in most other markets, but the decrease in North America brought down overall sales

P.49

North American situation is serious – notice the loss in car market share

European losses are not as steep

No Profits

Then why dividends if there is no equity left????

“A century is a long time to be in business. For General Motors, it’s been a century of leadership and achievements, of challenges and opportunities. A centennial is a great time to reflect on and celebrate the past. But for us, it’s more than that…it’s an opportunity to look forward to our next 100 years.”

Opening Comments:

“2007 was another year of important progress for GM, as we implemented further significant structural cost reductions in North America, grew aggressively in emerging markets, negotiated an historic labor contract with our United Auto Workers union partners in the U.S., further developed a broad range of advanced propulsion technologies and, most importantly, introduced a series of breakthrough cars and trucks around the world.”

“GM’s core automotive business generated record revenue of $178 billion in 2007, a $7 billion improvement over 2006. In total, GM generated $181 billion in

revenue in 2007, compared with $206 billion in 2006.”

?

-21.7%

+2.9%

+37.1%

+39.1%

71%63% 72.5%

20% 17% 17%

7% 5% 4%

9% 5.5% 4.5%1% 1.5% 2%

P 53

P 49…our loss from continuing operations increased substantially as a result of the $39 billion valuation allowance established in the third quarter against our net deferred tax assets in the United States, Canada and Germany and was also increased by our share of losses from our equity investment in GMAC totaling $1.2 billion.

Deferred Income Taxes

In the third quarter of 2007, we recorded a charge of $39 billion related to establishing full valuation allowances against our deferred tax assets in the

United States, Canada and Germany. .. We had determined in prior periods that valuation allowances were not necessary for our deferred tax assets in the United States, Canada and Germany based on several factors including: (1) degree to which our three-year historical cumulative losses were attributable to unusual items or charges, several of which were incurred as a result of actions to improve future profitability; (2) long duration of our deferred tax assets; and (3) expectation of continued strong earnings at GMAC and improved earnings in

GMNA.

P. 73

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43.20

17.47

25.73 (-59.6%)

Accomplished since the announcement of GM’s turnaround plan in 2005:

• North America structural cost reduced by $9 billion

• Landmark GM-UAW contracts to address retiree health-care costs

• 34,000-plus workers participated in successful U.S. attrition program in 2006

• 51% stake in GMAC sold; total of $13 billion in proceeds over 3 years

• Allison, Isuzu shares, other assets sold generating $8.9 billion in proceeds

• Liquidity increased from $20 billion to $27 billion

• 3 North American International Auto Show Car or Truck of the Year awards

• Launched industry-best powertrain coverage of five years, 100,000 miles

in the U.S. and Canada

• Average U.S. transaction prices up $3,000

• Multi-Brand Strategy in Europe successfully executed

• GM sales in the world’s emerging markets grew 42%; GM is number one in China,

the world’s fastest growing automotive market by volume

FORM 10-KGeneral Motors CorporationFiled: March 5, 2009

Assets Dec 31 2008 Dec 31 2007 Dec 31. 2006Current Assets

Cash And Cash Equivalents

14,053,000   24,817,000   24,123,000  

Short Term Investments

13,000   2,139,000   138,000  

Net Receivables 7,711,000   9,659,000   20,173,000  

Inventory 16,405,000   20,222,000   20,046,000  

Other Current Assets 3,142,000   3,566,000   -  

Total Current Assets 41,324,000   60,403,000   64,480,000  

Long Term Investments 2,860,000   10,854,000   11,760,000  Property Plant and Equipment

41,877,000   49,983,000   53,728,000  

Goodwill -   736,000   799,000  

Intangible Assets 265,000   330,000   319,000  

Accumulated Amortization -   -   -  

Other Assets 4,623,000   24,461,000   22,139,000  

Deferred Long Term Asset Charges

98,000   2,116,000   32,967,000  

Total Assets 91,047,000   148,883,000   186,192,000  

Liabilities

Current Liabilities

Accounts Payable 24,827,000   64,291,000   63,370,000  

Short/Current Long Term Debt 18,472,000   6,047,000   5,666,000  

Other Current Liabilities 30,635,000   -   -  

Total Current Liabilities 73,934,000   70,338,000   69,036,000  

Long Term Debt 31,603,000   38,556,000   42,505,000  

Other Liabilities 69,027,000   72,502,000   78,902,000  

Deferred Long Term Liability Charges 1,823,000   2,967,000   -  

Minority Interest 814,000   1,614,000   1,190,000  

Negative Goodwill -   -   -  

Total Liabilities 177,201,000   185,977,000   191,633,000  

Stockholders' Equity

Misc Stocks Options Warrants -   -   -  

Redeemable Preferred Stock -   -   -  

Preferred Stock -   -   -  

Common Stock 1,017,000   943,000   943,000  

Retained Earnings (70,610,000) (39,392,000) 406,000  

Treasury Stock -   -   -  

Capital Surplus 15,755,000   15,319,000   15,336,000  

Other Stockholder Equity (32,316,000) (13,964,000) (22,126,000)

Total Stockholder Equity (86,154,000) (37,094,000) (5,441,000)

Net Tangible Assets ($86,419,000) ($38,160,000) ($6,559,000)

SEC Filing – Dec 31, 2009

Launch of General Motors Company

Prior to July 10, 2009 Old GM operated the business of the Company, and pursuant to the agreement with the SEC Staff, the accompanying consolidated financial statements include the financial statements and related information of Old GM as it is our predecessor entity solely for accounting and financial reporting purposes. On June 1, 2009 Old GM and three of its domestic direct and indirect subsidiaries filed voluntary petitions for relief under Chapter 11 (Chapter 11 Proceedings) of the U.S. Bankruptcy Code (Bankruptcy Code) in the U.S. Bankruptcy Court for the Southern District of New York (Bankruptcy Court). On July 10, 2009 in connection with the 363 Sale, we, through certain of our subsidiaries, acquired substantially all of the assets and assumed certain liabilities of Old GM. MLC continues to exist as a distinct legal entity for the sole purpose of liquidating its remaining assets and liabilities.

SOURCE: The Associated Press Published: July 10, 2009

GM ownership stake

Here is the breakdown of who will own the new General Motors:

61 percent: U.S. government

17.5 percent: United Auto Workers union through its retiree health-care trust

11.7 percent: Canadian government

9.8 percent: bondholders from the old company

GM raises price ahead of share issueUpdated: 13:36, Tuesday, 16 November 2010

US car maker General Motors has raised the price range for its initial offering of shares to between $32 and $33 per share, the company said in a statement today.

The estimated initial price had been between $26 and $29 per share.

The announcement came as the auto giant prepared to move away from government control on Thursday with a sale of 365m shares of common stock.

The sale is one of the largest in US history, and will reduce the US government's stake.

GM is re-entering the stock market after it was forced into a state-backed bankruptcy reorganisation in June 2009.

General Motors to Boost Workforce Wed, Oct 10, 2012 6:34 PM EDT   

General Motors Company is opening the second of its four planned Information Technology Innovation Center in Warren, Michigan. The company pans to hire up to 1,500 high-tech employees over the next few years to support its IT services.

General Motors will hire software developers, database experts, business analysts and other IT personals for the Michigan plant. Recent college graduates as well as experienced professionals are eligible for the positions. In addition, the company is conducting campus recruitment and participating in local job fairs.

Last month, the company opened the first information technology center in Austin, Texas. This facility provided job opportunity to 500 workers, who were engaged for improving the company’s internal information technology capabilities.

           

Questions to be Answered

1. Is there a detectable trend in the statements of General Motors?

2. Is General Motors considered to be a safe investment?

3. What are its prospects for the future?

4. Would you recommend this company to any of your friends?