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8-K - FORM 8-K - General Motors Cod8k.htm
CHRIS LIDDELL
Vice Chairman and CFO
Exhibit 99.1


In this presentation and in related comments by our management, our use of the words
“expect,”
“anticipate,”
“possible,”
“potential,”
“target,”
“believe,”
“commit,”
“intend,”
“continue,”
“may,”
“would,”
“could,”
“should,”
“project,”
“projected,”
“positioned”
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. Among other items, such factors might include:
our ability
to realize production efficiencies and to achieve reductions in costs as a result of our
restructuring initiatives and labor modifications; our ability to maintain quality control over our
vehicles and avoid material vehicle recalls; our ability to maintain adequate liquidity and
financing sources and an appropriate level of debt, including as
required to fund our planning
significant investment in new technology; our ability to realize
successful vehicle applications
of new technology; and our ability to continue to attract new customers, particularly for our
new products
GM's most recent annual report on Form 10-K and quarterly report on Form 10-Q provides
information about these and other factors, which we may revise or supplement in future
reports to the SEC.
FORWARD LOOKING
FORWARD LOOKING
STATEMENTS
STATEMENTS



Cyclical
+
High operating leverage
+
Capital / engineering intensive
+
Highly leveraged / interdependent value chain
INDUSTRY STRUCTURE
INDUSTRY STRUCTURE



HIGH OPERATING LEVERAGE
HIGH OPERATING LEVERAGE
Global OEM EBIT Margins
Global OEM EBIT Margins
Note: Global OEMs include GM, Ford, BMW, Daimler, Fiat, Honda, Hyundai, Nissan, Peugeot, Renault, Toyota, VW.


CAPITAL / ENGINEERING
CAPITAL / ENGINEERING
INTENSIVE
INTENSIVE
Not This
This
t
t
t
Business
Cycle
Engineering /
Capex Spend
$
$
$
$
t



DESIGN, BUILD and SELL
THE WORLD’S BEST VEHICLES
NEW BUSINESS MODEL
NEW BUSINESS MODEL
DESIGN
DESIGN
BUILD
BUILD
SELL
SELL
SELL
DESIGN
World's Best Vehicles
Fewer Brands,
Global Architectures
Higher
Capacity
Utilization
Reduced
Inventories
Lower
Incentives /
Higher Prices
Improved
Brand Equity
Higher
Residuals
Higher
Profitability
and ROA
Reinvest in
Vehicles
$


Strong investment grade credit rating
+
Minimal debt
+
Fully funded, de-risked pension plan
FINANCIAL STRATEGY
FINANCIAL STRATEGY


How realistic?
WACC?
Temporary strategy?
QUESTIONS
QUESTIONS


PROGRESS
PROGRESS
9/10
adjusted
for
completed
Q4
capital
actions,
planned
equity
contribution
to
pension
plan
and
funding
AmeriCredit
acquisition.
Perpetual
preferred
is
at
face
value.
Cash
includes
marketable
securities
and
Canadian
HC
Trust
restricted
cash.


WACC
WACC
Tax Shield
WACC
Debt Ratio
Financial Theory:
Debt
Tax Shield
WACC
GM tax losses = ~$40B


BACK TO THE FUTURE
BACK TO THE FUTURE
* Adjusted debt as of 9/30/2010.
Not rated but
Not rated but
minimal debt
minimal debt


CONCLUSION
CONCLUSION
Source: Motor Trend Magazine September 2010 Cover
Financial
strategy
will allow
us to play
OFFENSE,
not defense


Expect Q4 EBIT to remain positive, but at a
significantly lower run-rate than each of first
three quarters
Different production mix
New vehicle launch costs
Increased engineering expense in support of
future products
$0.7B non-cash charge associated with purchase
of Series A Preferred Stock held by United States
Department of Treasury
Q4 OUTLOOK
Q4 OUTLOOK


MARK REUSS
President, GM North America


GM U.S. MARKET SHARE
GM U.S. MARKET SHARE
GM
U.S.
market
share
based
on
Buick,
Cadillac,
Chevrolet
&
GMC
only


Product launches
Full year of Cruze, Regal, CTS Coupe,
Heavy Duty Pickups
Regal begins production in Oshawa
Increase in Terrain/Equinox production
Volt, Verano, Sonic, Camaro
Convertible
Flexible manufacturing
Build to market demands
Focus on quality
IT’S ALL ABOUT CARS,
IT’S ALL ABOUT CARS,
TRUCKS AND CROSSOVERS
TRUCKS AND CROSSOVERS


2011 CY GM PRODUCT LAUNCHES
UNITED STATES
CANADA
Chevrolet Camaro
Convertible
Buick Regal GS
Chevrolet Orlando
Chevrolet Volt
Chevrolet Sonic
4dr
Buick Verano
MEXICO
CENTRAL AMERICA/CARIBBEAN
Chevrolet Camaro
Convertible
Chevrolet Sonic
5dr
Chevrolet Camaro
Convertible
Buick Regal GS
Chevrolet Sonic
4dr
Chevrolet Sonic
5dr
Buick Verano
GMC Terrain
Chevrolet Sonic
4dr
Buick Verano


Maintain ATP (Average
Transaction Price) strength
Hold % incentive spend
vs. competition
Value story
GM Financial
U.S./Canada Lease penetration
Grow U.S. Sub-Prime APR
penetration
DISCIPLINE ON PRICE
DISCIPLINE ON PRICE


U.S. LEASE PERCENT OF RETAIL
U.S. LEASE PERCENT OF RETAIL
SALES
SALES
Source:  J.D. Power and Associates PIN


Dealer network a strength
Facility image program
981 Dealers have initiated
improvements
2,000 more will begin in 2011
Robust programs in place
Drive Dealership throughput
Encourage parts purchase loyalty
Support customer retention
DEALER NETWORK AND
DEALER NETWORK AND
CUSTOMER EXPERIENCE
CUSTOMER EXPERIENCE


Brand building initiatives
Chevrolet Carbon Reduction
Volt
Main Street in Motion
Consistent messaging through Tier 3
Partnership with MTV targeting
millennial generation
Focus on customer retention
Discontinued brands
Service/Parts
MARKETING AND
MARKETING AND
IMPROVING CONSIDERATION
IMPROVING CONSIDERATION


Made large scale changes to
organizational structure
in 2010
On-going adjustments will be
made as necessary
Getting our Soul back
REINVIGORATING OUR CULTURE
REINVIGORATING OUR CULTURE