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The Case for Federal
 Support for GM and the
U.S. Automotive Industry
                November 2008




                                0
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.
Unless specifically required by law, we assume no obligation to update or
revise these forward-looking statements to reflect new events or
circumstances.




                                                                                   1
Overview

• GM has taken far-reaching actions over the last several years to
  restructure, be more competitive, and position its U.S. business for
  future viability and success
    – Dramatic cost reductions
    – Excellent product execution
    – Significant technology advancements
• However, the credit crisis is overwhelming operating plans --
  weakening U.S. vehicle market and closing off financial market
  funding
    – Wall Street crisis has moved to the real economy -- “Main Street”
• Bankruptcy filing would be catastrophic for the nation; would have
  massive and far-reaching systemic economic and social costs
• GM and U.S. automotive industry require immediate liquidity support




                                                                          2
GM Has Taken Bold Actions to
       Achieve Competitiveness
Cost Competitiveness & Productivity in North America
• Reduced structural cost by $9 billion from 2005-2007 (down 22%) with plans for
  further reductions of $5 to $6 billion by 2011 (down ~35%)
• Rightsized manufacturing capacity: From year-end 2004 to year-end 2007, GM
  removed 1.3 million units of assembly capacity (24% net reduction)
    – Further rightsizing planned with reduction of 0.7 million units by year-end 2010 (total
      net reduction of 36%)
    – More than 60% of remaining capacity at year-end 2010 will be dedicated to fuel
      efficient cars and crossovers
• Streamlined U.S. operations: Total headcount reduced from 177,000 in 2002 to
  93,000 today (47% reduction)
• 2007 UAW Hourly Labor Agreement provides basis for competitive manufacturing
  base in U.S. by 2010
• Historic agreement with UAW to fund retiree health care obligations with
  independent VEBA trust, eliminating majority of risk related to U.S. retiree
  healthcare starting in 2010
• GM leads in manufacturing productivity in 11 out of the 20 North America
  segments in which it competes (2008 Harbour Report)
    – GM also has 5 of the top 10 best rated engine plants in North America, and the #1
      transmission plant, all located in the U.S.

                                                                                                3
GM Has Taken Bold Actions to
        Achieve Competitiveness (continued)
Product & Technology Excellence
• Commitment to Product Excellence broadly recognized
    – North America Car of the Year: Chevrolet Malibu and Saturn Aura
    – Motor Trend Car of the Year: Cadillac CTS
    – European Car of the Year: Opel Insignia
    – Green Car of the Year (LA Auto Show): 2-Mode Hybrid Chevrolet Tahoe
    – 11 of last 13 U.S. launches have been cars or crossovers
    – J. D. Power Initial Quality Survey: In 2008, GM had more segment leaders than Toyota
      or Honda, and GM has improved overall survey performance by 25% in last 5 years
    – Reduced number of warranty repairs by 40% over the last 5 years, and are on track in
      2008 to achieve a further 15% reduction vs. 2007 levels
• Growing leadership position in fuel economy and advanced propulsion
  technologies
    – 20 GM vehicles with EPA highway fuel economy of 30 mpg or better (most of any
      manufacturer, domestic or import)
    – World leader in bio-fuel vehicles with over 3 million FlexFuel vehicles on U.S. roads
      today, with commitment to reach 50% of annual GM volume by 2012
    – 6 hybrids in U.S. today, and 2 more by year-end 2008 (most hybrid models of any
      automaker)
    – Largest hydrogen fuel cell vehicle test fleet in the world
    – Chevrolet Volt (E-REV) production on schedule to begin in 2010

                                                                                              4
Rapid Decline in U.S. Consumer Confidence Due to
                      Credit Crisis, Leading to Low Industry Vehicle Sales
• Falling U.S. home prices, mounting foreclosures and subsequent
  credit/financial crisis led to dramatic decline in consumer confidence
• October U.S. auto sales fell to levels not seen in more than 25 years
  and, after adjusting for population, the lowest levels since World War II


                     18   17.5             U.S. Vehicle Annual Selling Rate
                                 17.1            (Seasonally Adjusted, “SAAR”)
                                        16.5




                                                                                                                      Consumer Confidence Index
                                                15.8                                      U.S. SAAR
                     16                                15.7
                                                              15.4                        Consumer Confidence
                                                                     14.8   14.6
   Units, millions




                                                                                   14.1          14.0
                     14
                                                                                          12.7          12.8

                     12
                                                                                                               10.9


                     10
                          2005 2006 2007        Jan    Feb    Mar    Apr    May    Jun    Jul    Aug    Sep    Oct


                                                                                                                                                  5
Most Difficult Business and
        Credit Environment in 70 Years
• Housing price decline in U.S. and Europe precipitated financial
  turmoil which has spilled over to the broader global economy,
  leading to widespread uncertainty and volatility
    – U.S. economic downturn, declining employment, falling real income

• Worst financial/credit crisis in more than 70 years impacts auto
  business from all sides
    –   Consumer and dealer financing are severely restricted
    –   Suppliers under increasing pressure as volumes decline
    –   Capital markets are essentially closed to GM and suppliers
    –   Asset sales challenged because buyers also cannot find financing

• Coordinated global government measures are welcomed and have
  had some effect, but credit markets are far from stabilized and
  measures have not yet helped the real economy (“Main Street”)




                                                                           6
U.S. Auto Industry Is
      Significant Contributor to U.S. Economy
• Directly employs nearly 240,000 people
• Provides healthcare to 2 million Americans and pension benefits to
  775,000 retirees and spouses
• Supports another 5 million jobs at dealers, parts suppliers and
  service providers
• Comprises nearly 4% of U.S. GDP
• More than $225 billion invested in U.S. over last 2 decades,
  including $10 billion in 2007 alone
• $12 billion spent annually in U.S. on R&D, exceeding aerospace,
  medical equipment and communications
• Purchased $156 billion in U.S. auto parts in 2007, supporting jobs in
  all 50 states
• Largest purchaser of U.S. steel, aluminum, iron, copper, plastics,
  rubber and electronic chips

                                                                          7
Massive Employment Impact
              from Detroit 3 Collapse

                                   Full Collapse: Detroit 3 Cease                              Partial Collapse: 50%
                                       Manufacturing In 2009                                   Reduction By Detroit 3
                                        2009             2010             2011                2009              2010            2011
                                                                                                          (1)
  Detroit 3 Reduction                        100%             100%             100%                100%              50%              50%

  Direct Employment                      -239,341         -239,341         -205,611            -239,341          -119,671        -119,671

  Supplier Employment                    -973,969         -795,223         -544,598            -795,371          -491,719        -311,488

  Indirect Employment                  -1,738,034       -1,427,452       -1,021,354          -1,427,663          -886,345        -574,434

    Total Employment                   -2,951,344       -2,462,016       -1,771,563          -2,462,375         -1,497,735     -1,005,593
                                                                                           (1) Assumes supplier disruptions would initially
                                                                                               shut down all Detroit 3 carmakers


              Direct Employment:                   Jobs at Detroit 3 carmakers
              Supplier Employment: Jobs at companies that sell commodities, products or
                                   services directly or indirectly to Detroit 3 carmakers
              Indirect Employment:                 Expenditure related effects in general economy,
                                                   representing loss of economic activity due to reduced
                                                   spending of employees of Detroit 3 and their suppliers

Source:   Center for Automotive Research Memorandum: The Impact on the U.S. Economy of a
          Major Contraction of the Detroit Three Automakers, Nov. 4, 2008
                                                                                                                                              8
Chapter 11 Would Be Catastrophic

• Successful Chapter 11 filing would require both preservation of
  revenue (especially in a high fixed cost industry like the auto industry)
  and successful financing while in bankruptcy

• Filing would precipitate massive and rapid desertion by customers
    – Automobiles are the second largest purchase for most individuals, and
      purchase decisions are impacted by consideration of warranty, service,
      parts and residual value
    – Customers have other options: a June 2008 survey by CNW Research
      indicated that ~80% of customers would not purchase a vehicle from a
      bankrupt manufacturer

• In today’s credit market, financing while in bankruptcy would be very
  difficult – especially if the company was not able to protect its
  revenue base

• Significant negative effects on U.S. automotive industry, broader
  economy and global credit markets

                                                                               9
GM Taking Significant Actions in 2008 and 2009
        to Generate and Preserve Cash Through Downturn
• In light of ongoing global credit crisis, GM has planned conservatively and is
  expecting U.S. industry volumes significantly below trend for several years

• In July 2008, GM took difficult actions to generate and preserve cash through
  2009, announcing a combined $15 billion of operating and other actions that
  relied mostly on “self help”
    – $4 billion of North America structural cost, including idling truck and SUV
      assembly plants and the elimination of executive bonuses
    – $2 billion from working capital by slashing inventories
    – $1.5 billion reduction in capital spending
    – $2.5 billion by suspending the dividend and deferring payments to UAW VEBA
    – $5 billion of asset sales and capital markets activity (to date, unable to execute)

• GM recently announced further tough operating actions to preserve an
  additional $5 billion through 2009. Actions include cutting capital spending by
  delaying certain vehicle launches, taking out more North America structural
  cost and further reducing salaried headcount

• Importantly, GM has protected or increased spending for critical advanced
  technology and fuel economy programs (Chevrolet Volt, Chevrolet Cruze)

                                                                                            10
GM and Industry Need Liquidity Bridge
      to Cover Expenses Through Downturn
• GM needs federal funding as a bridge for engineering and
  technology spending, capital spending and operating requirements
  that cannot be covered in the current depressed industry conditions

      Engineering and Technology Spending
         Research for fuel economy and safety technologies, advanced
         batteries, and telematics developments
         Development of new vehicle models and powertrains, updates to
         current models

      Capital Spending
         Machinery and equipment investments for new products
         Modification of infrastructure; upgrading infrastructure, information
         technology

      Operating Requirements
         Paying suppliers for production parts, components and materials
         Paying wages, salaries and benefits of workers
         Taxes


                                                                                 11
GM Is Executing Its Plan to Build
        a Winning Auto Company for the Long-Term
• GM is building a winning auto company for the long-term
    – Using its global scale and scope to bring products that consumers want to every market
      GM competes in with industry-leading quality, safety, fuel economy and design,
      including the U.S. launch of the new compact Chevrolet Cruze in 2010
    – Landmark agreement with UAW provides new operating flexibility today, competitive
      U.S. hourly labor costs in 2010, and caps GM’s hourly retiree healthcare liability
• GM building the best cars in its 100-year history, with a resurgence in quality and
  styling across its entire product portfolio
    – Targeting fuel economy leadership in every class of vehicle we introduce
    – Cars and crossovers comprise 11 of last 13 U.S. launches, and 14 of next 15
    – Success of recent launches such as Cadillac CTS, Chevrolet Malibu and Buick Enclave
      provide confidence in product plan
• GM committed to pursuing industry leadership in fuel economy and advanced
  vehicle technology
    – 20 GM vehicles with EPA highway fuel economy of 30 mpg or better (most of any
      manufacturer, domestic or import)
    – World leader in bio-fuel vehicles with over 3 million FlexFuel vehicles on U.S. roads
      today, with commitment to reach 50% of annual GM volume by 2012
    – 6 hybrids in U.S. today, 2 more by year-end (most hybrid models of any automaker)
    – Largest hydrogen fuel cell vehicle test fleet in the world
    – Chevrolet Volt (E-REV) production on schedule to begin in 2010
• GM is reinventing the automobile – and the company
                                                                                              12

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Gm Events & Presentations The Case For Federal Support For Gm And The U.S. Automotive Industry

  • 1. The Case for Federal Support for GM and the U.S. Automotive Industry November 2008 0
  • 2. 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. Unless specifically required by law, we assume no obligation to update or revise these forward-looking statements to reflect new events or circumstances. 1
  • 3. Overview • GM has taken far-reaching actions over the last several years to restructure, be more competitive, and position its U.S. business for future viability and success – Dramatic cost reductions – Excellent product execution – Significant technology advancements • However, the credit crisis is overwhelming operating plans -- weakening U.S. vehicle market and closing off financial market funding – Wall Street crisis has moved to the real economy -- “Main Street” • Bankruptcy filing would be catastrophic for the nation; would have massive and far-reaching systemic economic and social costs • GM and U.S. automotive industry require immediate liquidity support 2
  • 4. GM Has Taken Bold Actions to Achieve Competitiveness Cost Competitiveness & Productivity in North America • Reduced structural cost by $9 billion from 2005-2007 (down 22%) with plans for further reductions of $5 to $6 billion by 2011 (down ~35%) • Rightsized manufacturing capacity: From year-end 2004 to year-end 2007, GM removed 1.3 million units of assembly capacity (24% net reduction) – Further rightsizing planned with reduction of 0.7 million units by year-end 2010 (total net reduction of 36%) – More than 60% of remaining capacity at year-end 2010 will be dedicated to fuel efficient cars and crossovers • Streamlined U.S. operations: Total headcount reduced from 177,000 in 2002 to 93,000 today (47% reduction) • 2007 UAW Hourly Labor Agreement provides basis for competitive manufacturing base in U.S. by 2010 • Historic agreement with UAW to fund retiree health care obligations with independent VEBA trust, eliminating majority of risk related to U.S. retiree healthcare starting in 2010 • GM leads in manufacturing productivity in 11 out of the 20 North America segments in which it competes (2008 Harbour Report) – GM also has 5 of the top 10 best rated engine plants in North America, and the #1 transmission plant, all located in the U.S. 3
  • 5. GM Has Taken Bold Actions to Achieve Competitiveness (continued) Product & Technology Excellence • Commitment to Product Excellence broadly recognized – North America Car of the Year: Chevrolet Malibu and Saturn Aura – Motor Trend Car of the Year: Cadillac CTS – European Car of the Year: Opel Insignia – Green Car of the Year (LA Auto Show): 2-Mode Hybrid Chevrolet Tahoe – 11 of last 13 U.S. launches have been cars or crossovers – J. D. Power Initial Quality Survey: In 2008, GM had more segment leaders than Toyota or Honda, and GM has improved overall survey performance by 25% in last 5 years – Reduced number of warranty repairs by 40% over the last 5 years, and are on track in 2008 to achieve a further 15% reduction vs. 2007 levels • Growing leadership position in fuel economy and advanced propulsion technologies – 20 GM vehicles with EPA highway fuel economy of 30 mpg or better (most of any manufacturer, domestic or import) – World leader in bio-fuel vehicles with over 3 million FlexFuel vehicles on U.S. roads today, with commitment to reach 50% of annual GM volume by 2012 – 6 hybrids in U.S. today, and 2 more by year-end 2008 (most hybrid models of any automaker) – Largest hydrogen fuel cell vehicle test fleet in the world – Chevrolet Volt (E-REV) production on schedule to begin in 2010 4
  • 6. Rapid Decline in U.S. Consumer Confidence Due to Credit Crisis, Leading to Low Industry Vehicle Sales • Falling U.S. home prices, mounting foreclosures and subsequent credit/financial crisis led to dramatic decline in consumer confidence • October U.S. auto sales fell to levels not seen in more than 25 years and, after adjusting for population, the lowest levels since World War II 18 17.5 U.S. Vehicle Annual Selling Rate 17.1 (Seasonally Adjusted, “SAAR”) 16.5 Consumer Confidence Index 15.8 U.S. SAAR 16 15.7 15.4 Consumer Confidence 14.8 14.6 Units, millions 14.1 14.0 14 12.7 12.8 12 10.9 10 2005 2006 2007 Jan Feb Mar Apr May Jun Jul Aug Sep Oct 5
  • 7. Most Difficult Business and Credit Environment in 70 Years • Housing price decline in U.S. and Europe precipitated financial turmoil which has spilled over to the broader global economy, leading to widespread uncertainty and volatility – U.S. economic downturn, declining employment, falling real income • Worst financial/credit crisis in more than 70 years impacts auto business from all sides – Consumer and dealer financing are severely restricted – Suppliers under increasing pressure as volumes decline – Capital markets are essentially closed to GM and suppliers – Asset sales challenged because buyers also cannot find financing • Coordinated global government measures are welcomed and have had some effect, but credit markets are far from stabilized and measures have not yet helped the real economy (“Main Street”) 6
  • 8. U.S. Auto Industry Is Significant Contributor to U.S. Economy • Directly employs nearly 240,000 people • Provides healthcare to 2 million Americans and pension benefits to 775,000 retirees and spouses • Supports another 5 million jobs at dealers, parts suppliers and service providers • Comprises nearly 4% of U.S. GDP • More than $225 billion invested in U.S. over last 2 decades, including $10 billion in 2007 alone • $12 billion spent annually in U.S. on R&D, exceeding aerospace, medical equipment and communications • Purchased $156 billion in U.S. auto parts in 2007, supporting jobs in all 50 states • Largest purchaser of U.S. steel, aluminum, iron, copper, plastics, rubber and electronic chips 7
  • 9. Massive Employment Impact from Detroit 3 Collapse Full Collapse: Detroit 3 Cease Partial Collapse: 50% Manufacturing In 2009 Reduction By Detroit 3 2009 2010 2011 2009 2010 2011 (1) Detroit 3 Reduction 100% 100% 100% 100% 50% 50% Direct Employment -239,341 -239,341 -205,611 -239,341 -119,671 -119,671 Supplier Employment -973,969 -795,223 -544,598 -795,371 -491,719 -311,488 Indirect Employment -1,738,034 -1,427,452 -1,021,354 -1,427,663 -886,345 -574,434 Total Employment -2,951,344 -2,462,016 -1,771,563 -2,462,375 -1,497,735 -1,005,593 (1) Assumes supplier disruptions would initially shut down all Detroit 3 carmakers Direct Employment: Jobs at Detroit 3 carmakers Supplier Employment: Jobs at companies that sell commodities, products or services directly or indirectly to Detroit 3 carmakers Indirect Employment: Expenditure related effects in general economy, representing loss of economic activity due to reduced spending of employees of Detroit 3 and their suppliers Source: Center for Automotive Research Memorandum: The Impact on the U.S. Economy of a Major Contraction of the Detroit Three Automakers, Nov. 4, 2008 8
  • 10. Chapter 11 Would Be Catastrophic • Successful Chapter 11 filing would require both preservation of revenue (especially in a high fixed cost industry like the auto industry) and successful financing while in bankruptcy • Filing would precipitate massive and rapid desertion by customers – Automobiles are the second largest purchase for most individuals, and purchase decisions are impacted by consideration of warranty, service, parts and residual value – Customers have other options: a June 2008 survey by CNW Research indicated that ~80% of customers would not purchase a vehicle from a bankrupt manufacturer • In today’s credit market, financing while in bankruptcy would be very difficult – especially if the company was not able to protect its revenue base • Significant negative effects on U.S. automotive industry, broader economy and global credit markets 9
  • 11. GM Taking Significant Actions in 2008 and 2009 to Generate and Preserve Cash Through Downturn • In light of ongoing global credit crisis, GM has planned conservatively and is expecting U.S. industry volumes significantly below trend for several years • In July 2008, GM took difficult actions to generate and preserve cash through 2009, announcing a combined $15 billion of operating and other actions that relied mostly on “self help” – $4 billion of North America structural cost, including idling truck and SUV assembly plants and the elimination of executive bonuses – $2 billion from working capital by slashing inventories – $1.5 billion reduction in capital spending – $2.5 billion by suspending the dividend and deferring payments to UAW VEBA – $5 billion of asset sales and capital markets activity (to date, unable to execute) • GM recently announced further tough operating actions to preserve an additional $5 billion through 2009. Actions include cutting capital spending by delaying certain vehicle launches, taking out more North America structural cost and further reducing salaried headcount • Importantly, GM has protected or increased spending for critical advanced technology and fuel economy programs (Chevrolet Volt, Chevrolet Cruze) 10
  • 12. GM and Industry Need Liquidity Bridge to Cover Expenses Through Downturn • GM needs federal funding as a bridge for engineering and technology spending, capital spending and operating requirements that cannot be covered in the current depressed industry conditions Engineering and Technology Spending Research for fuel economy and safety technologies, advanced batteries, and telematics developments Development of new vehicle models and powertrains, updates to current models Capital Spending Machinery and equipment investments for new products Modification of infrastructure; upgrading infrastructure, information technology Operating Requirements Paying suppliers for production parts, components and materials Paying wages, salaries and benefits of workers Taxes 11
  • 13. GM Is Executing Its Plan to Build a Winning Auto Company for the Long-Term • GM is building a winning auto company for the long-term – Using its global scale and scope to bring products that consumers want to every market GM competes in with industry-leading quality, safety, fuel economy and design, including the U.S. launch of the new compact Chevrolet Cruze in 2010 – Landmark agreement with UAW provides new operating flexibility today, competitive U.S. hourly labor costs in 2010, and caps GM’s hourly retiree healthcare liability • GM building the best cars in its 100-year history, with a resurgence in quality and styling across its entire product portfolio – Targeting fuel economy leadership in every class of vehicle we introduce – Cars and crossovers comprise 11 of last 13 U.S. launches, and 14 of next 15 – Success of recent launches such as Cadillac CTS, Chevrolet Malibu and Buick Enclave provide confidence in product plan • GM committed to pursuing industry leadership in fuel economy and advanced vehicle technology – 20 GM vehicles with EPA highway fuel economy of 30 mpg or better (most of any manufacturer, domestic or import) – World leader in bio-fuel vehicles with over 3 million FlexFuel vehicles on U.S. roads today, with commitment to reach 50% of annual GM volume by 2012 – 6 hybrids in U.S. today, 2 more by year-end (most hybrid models of any automaker) – Largest hydrogen fuel cell vehicle test fleet in the world – Chevrolet Volt (E-REV) production on schedule to begin in 2010 • GM is reinventing the automobile – and the company 12