Gm Events & Presentations Canadian Dealer Conference
1. Forward Looking Statements
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,” “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. 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.
Industry and market data contained in this presentation is based on internal GM
market and industry analysis. Although management believes this data is reliable
as of its respective dates, this data has not been independently verified and we
cannot assure you as to accuracy or completeness of this data.
Unless specifically required by law, we assume no obligation to update or revise
these forward-looking statements to reflect new events or circumstances.
3. 2008 Earnings
$ Billions 2008 Q2 2008 CYTD
Total Reported Net Income (15.5) (18.7)
GMNA Restructuring (4.4) (4.6)
Delphi (2.8) (3.5)
GMAC Impairment (1.3) (2.8)
Other (0.7) (1.1)
Total Special Items (9.2) (12.0)
Total Adjusted Net Income (6.3) (6.7)
Memo: Figures have been adjusted for rounding
4. 2008 Adjusted Earnings
$ Billions 2008 Q2 2008 CYTD
GMNA (4.4) (5.0)
Other Regions 0.4 1.4
Total Automotive EBT (4.0) (3.6)
GMAC (1.2) (1.5)
Corp./Other (0.8) (1.0)
Taxes (0.3) (0.6)
Total Adjusted Net Income (6.3) (6.7)
EBT = Earnings before taxes
5. GMNA Adjusted EBT –
YTD 2008 vs. YTD 2007
$ Billions – Continuing Operations Only YTD
2007 Earnings Before Tax $(0.2)
Volume/Mix (4.7)
Price (2.2)
Net Material 0.3
Pension/OPEB/Manufacturing 1.1
Hedging/Exchange/Other 0.7
2008 Earnings Before Tax $(5.0)
2007 excludes results from Allison Transmission, recorded as Discontinued Operations
6. 2008 Cash Change
$ Billions
Cash 12/31/2007 27.3
Operating Cash Flow (7.2)
Other 0.9
2008 H1 Cash Burn (6.3)
Cash 06/30/2008 21.0
Memo: Cash includes readily available VEBA assets
8. North American Industry Volume
’07 Actual H1 ’08
Mil Units F/(U) H1 ’07
United States 16.5 (10.4)%
Canada 1.7 2.3%
Mexico 1.1 (0.6)%
Other 0.3 5.8%
Total 19.6 (8.5)%
9. U.S. Light Vehicle Industry SAAR
Source: GM Global Market and Industry Analysis
12. Summary Of Actions
2007 UAW retiree healthcare agreement (VEBA)
Introduction of two-tiered wage structure
Significant hourly headcount reductions
Approximately 53K related to 2006 and
2008 SAP programs
Capacity reductions
Installed production capacity is expected to reduce
1.8 million units from the beginning of CY 2005
through year-end 2010
Installed production capacity realigned to >60%
cars/crossovers by 2010
13. GMNA Structural Cost Outlook
Operating actions in North America, combined with
benefits of 2007 UAW agreement, are targeted to
reduce structural costs by $6-7B from 2007 to 2010
Memo: ($ billions)
Corp Sector/
Legacy Structural Cost 1.2 1.1 1.0 1.0 1.0 0.1
Note: Structural cost outlook based on negative plan amendment accounting for UAW VEBA
14. 2008 U.S. Industry vs.
GM Liquidity Plan
CY 2008 Liquidity Plan
Outlook 2008-2009
Light Vehicle Volume (SAAR) Low 14 Mil 14.0 mil
Fullsize Pickup % of Industry ~11.0% 10.0%
Fullsize SUV % of Industry ~3.0% 2.3-2.7%
Oil Price per bbl ~$120 $120-150
GM Market Share ~21% ~21%
15. GM Liquidity Plan
Operation and Other Actions $ Billions
GMNA Structural Cost ~$2.5B
Salaried Employment Savings ~$1.5B
Capital Expenditure Reductions ~$1.5B
Working Capital Improvements ~$2.0B
UAW VEBA Payment Deferrals ~$1.7B
Dividend Suspension ~$0.8B
Asset Sales and Capital Market Actions ~$5.0B
Total ~$15.0B
17. 2008 First Half Results – Rest of World
Industry Market EBT
SAAR (Mil) Share ($Mil)
GME 23.5 9.5% 297
GMLAAM 7.9 17.5% 962
GMAP 22.5 7.0% 221
Total 1,480
18. Global Growth Driven
By Emerging Markets
Brazil, Russia, India, and China are 4 of top 10 auto markets
in the world… and growing fast
Asia Pacific growth fueled by China, which is expected to
surpass U.S. market by mid-decade
Source: GM Global Market and Industry Analysis
20. One Global Company
Building functional and technical excellence
GM manages its key functional areas (e.g. engineering,
manufacturing, supply chain) globally
Leveraging products, powertrains, supplier base,
and technical expertise globally
Global product development a key enabler to utilizing high
volume architectures around the world
Global scope/scale yields engineering and sourcing efficiencies
Flow existing resources to support greatest,
highest return growth opportunities
22. Canada Industry Mix
Note: Canada mid-lux crossover has been included as truck Source: GM Global Market and Industry Analysis
23. Shifting U.S. Mix
The escalation of fuel prices has lead to a shift
in U.S. market preferences to smaller more fuel
efficient vehicles that have traditionally been more
important in Canadian markets
As the U.S. portfolio transitions to a mix more
comparable to Canada, increased volume and
investment in key Canadian segments will result
To date, GM has responded by positioning
18 of the next 19 U.S. launches in car or crossover
segments of which 18 will be available in Canada
25. Summary and Management Focus
GM is here to stay
Intense focus on implementing liquidity plan
Making changes to compete and win in midst of an industry revolution
Maintaining rapid expansion in fastest growing markets globally
Proof is in our cars and trucks
Cars/crossovers comprise 11 of last 13 U.S. launches, and 18 of next 19
Success of recent launches such as CTS and Malibu provide confidence
in product plan
Reinventing the automobile and GM
Committed to providing leadership in development of alternate fuel
propulsion systems
Targeting fuel economy leadership in every class of vehicle we introduce
Restructuring Business for Sustainable Profit and Growth
