![]() 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 |
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![]() Cyclical + High operating leverage + Capital / engineering intensive + Highly leveraged / interdependent value chain INDUSTRY STRUCTURE INDUSTRY STRUCTURE |
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![]() 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 |
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![]() 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 |