General Motors Company · NYSE:GM
General Motors — Investor Presentation (January 2008)
92 slides from General Motors's investor presentation, Jan 17, 2008
Slide 1: Forward Looking Statements
Forward Looking Statements In this presentation and in related comments by General Motors' management, we will use words like "expect," "anticipate," "estimate," "forecast," "initiative," "objective," "plan," "goal," "project," "outlook," "priorities," "target," "intend," "evaluate," "pursue," "seek
Slide 2: GM Turnaround
f “GM GM TURNAROUND ss airman
Slide 3: 2005 GMNA Turnaround Plan
2005 GMNA Turnaround Plan Product Excellence Revitalized U.S. Sales & Marketing Strategy Improve Cost & Quality Address Health Care/ Legacy Cost Burden
Slide 4: Other Key Corporate Strategies
Other Key Corporate Strategies GM Europe Turnaround Growth in Emerging Markets Strengthen Liquidity Address GMAC and Delphi Situations
Slide 5: 2005 GMNA Turnaround Plan
2005 GMNA Turnaround Plan Product Excellence Revitalized U.S. Sales & Marketing Strategy Improve Cost & Quality Address Health Care/ Legacy Cost Burden
Slide 6: Product Excellence Building Strong Momentum
Product Excellence Building Strong Momentum Increasingly broad-based recognition of GM products - -- Design, interior, performance Numerous important industry awards Saturn Aura and Chevrolet Silverado 2007 NAIAS Car and Truck of the Year 2008 Cadillac CTS, Chevrolet Malibu and Corvette Car and Driv
Slide 7: Product Excellence Renewing the Passion for Design
Product Excellence Renewing the Passion for Design GRW_AA06_FreePress
Slide 8: 2005 GMNA Turnaround Plan
2005 GMNA Turnaround Plan Product Excellence Revitalized U.S. Sales & Marketing Strategy Improve Cost & Quality Address Health Care/ Legacy Cost Burden
Slide 9: Revitalized Sales and Marketing Strategy
Revitalized Sales and Marketing Strategy Better differentiate our brands Simple, more compelling pricing -- go to market as "Value Leader" Align our distribution strategy -- especially Pontiac-Buick-GMC Stabilize U.S. retail share
Slide 10: GM U.S. Retail Share Stabilized
GRW_AA09_SalMarkStrat Sales & Marketing Strategy GM U.S. Retail Share Stabilized Source: GM Global Market and Industry Analysis
Slide 11: Incentive Spending Reduced Drastically
GRW_AA10-03 Sales & Marketing Strategy Incentive Spending Reduced Drastically Source: GM Global Market and Industry Analysis/JD PIN
Slide 12: Large Reduction in Daily Rental Sales
GRW_AA11-02 Sales & Marketing Strategy Large Reduction in Daily Rental Sales, Significant Profit Impact Daily Rental Contribution Margin per unit reflects 2006 MY (index = 100), 2007 MY and 2008 MY estimates
Slide 13: Product and Brand Building Focus Reflected in Reason to Purchase
Sales & Marketing Strategy Product and Brand Building Focus Reflected in Reason to Purchase 2007 MY 2004 MY 2005 MY 2006 MY Q1-Q3 #1 #2 #3 #4 #5 Source: GM Global Market and Industry Analysis Rebate Value for Exterior Exterior Incentives the Money Styling Styling Value for Rebate/ Value for Value fo
Slide 14: Distribution Channel Alignment
Sales & Marketing Strategy Distribution Channel Alignment 2004 2007 % of large market 61% 69% dealerships on-channel % of Buick-Pontiac-GMC 53% 72% sales through aligned dealerships Total number of GM ~7,400 ~6,800 U.S. dealerships
Slide 15: GM U.S. Dealer Inventories Leaner
GRW_AA15_USdealerInvent Sales & Marketing Strategy GM U.S. Dealer Inventories Leaner Source: GM Global Market and Industry Analysis
Slide 16: 2005 GMNA Turnaround Plan
2005 GMNA Turnaround Plan Product Excellence Revitalized U.S. Sales & Marketing Strategy Improve Cost & Quality Address Health Care/ Legacy Cost Burden
Slide 17: $9B Structural Cost Reduction Target Achieved
Improve Cost & Quality $9B Structural Cost Reduction Target Achieved 2005 GM-UAW retiree health care agreement 1M Unit GMNA capacity reduction 34,000 Participants in hourly attrition plan U.S. salaried retiree health care/pension revisions GM/IUE-CWA/Delphi attrition program GM-UAW-Delphi attrition
Slide 18: 2005 GMNA Turnaround Plan
Product Excellence Revitalized U.S. Sales & Marketing Strategy Improve Cost & Quality Address Health Care/ Legacy Cost Burden 2005 GMNA Turnaround Plan
Slide 19: Cash/Stock Contributions to Fund Legacy Pension and Health Care
GRW_AA21-02 Address Health Care/Legacy Cost Burden Cash/Stock Contributions to Fund U.S. Hourly and Salaried Legacy Pension and Health Care Memo: Includes DC VEBA contributions Total cash $103B or $7B per year
Slide 20: Retiree Health Care Legacy Cost
Address Health Care/Legacy Cost Burden Significant unfunded net liability of $61B per YE '05 Health care inflation risk Legacy Cost Disadvantage Largely Eliminated Challenge Action Result Retiree Health Care 2005 GM-UAW health care agreement 2006 Changes to salaried retiree health care 2007 GM-UAW l
Slide 21: Pensions Legacy Cost
Address Health Care/Legacy Cost Burden Fully funded pension, but risk of future contribution Legacy Cost Disadvantage Largely Eliminated Challenge Action Result Pensions Risk mitigation investment strategy 2006 Changes to salaried pension U.S. hourly and salaried pension funded status expected to be
Slide 22: Legacy Cost Disadvantage Largely Eliminated
Address Health Care/Legacy Cost Burden Legacy Cost Disadvantage Largely Eliminated Spending for U.S. hourly and salaried legacy pension and health care will decline from annual average of $7B over last 15 years to approximately $1B* per year in 2010 *Excludes $0.3B for IUE and USW currently in negot
Slide 23: Other Key Corporate Strategies
Other Key Corporate Strategies GM Europe Turnaround Growth in Emerging Markets Strengthen Liquidity Address GMAC and Delphi Situations
Slide 24: GM Europe Turnaround Key Strategies
GM Europe Turnaround Key Strategies Product excellence Multi-brand strategy Grow in Russia/Eastern Europe Contribution margin focus Reduce structural cost
Slide 25: Strong GME Sales Growth Driven by Chevrolet
GRW_AA25-02 GM Europe Turnaround Strong GME Sales Growth Driven by Chevrolet
Slide 26: GME Adjusted Pre-tax Income
GRW_AA26_GMEpretaxIncome GM Europe Turnaround GME Adjusted Pre-tax Income* *Adjusted pre-tax income after equity income and minority interests Refer to Supplemental Charts in our earnings presentation on GM's Investor website for reconciliation to GAAP figures
Slide 27: Other Key Corporate Strategies
Other Key Corporate Strategies GM Europe Turnaround Growth in Emerging Markets Strengthen Liquidity Address GMAC and Delphi Situations
Slide 28: Growth in Emerging Markets
Emerging Markets China 3,370 8,550 154% 140 1,030 636% Russia 1,210 2,710 124% 5 260 5100% Brazil 1,450 2,460 70% 330 500 52% India 890 2,000 125% 10 60 500% Other* 6,380 11,300 77% 780 1,290 65% Total Emerging 13,300 27,020 103% 1,265 3,140 148% Growth in Emerging Markets Industry Sales GM Sales Un
Slide 29: Other Key Corporate Strategies
Other Key Corporate Strategies GM Europe Turnaround Growth in Emerging Markets Strengthen Liquidity Address GMAC and Delphi Situations
Slide 30: Strengthen Liquidity
Strengthen Liquidity Liquidity Up $7B in 2 Years Adjusted Operating Cash Flow improved $6.0B from Q3 '05 to Q3 '07 GMAC sale -- net $9.4B received to date Divested non-core equity holdings -- $3.1B Allison sale -- $5.4B Restructured $4.6B credit facility and access to over $7B of unused credit facil
Slide 31: Other Key Corporate Strategies
Other Key Corporate Strategies GM Europe Turnaround Growth in Emerging Markets Strengthen Liquidity Address GMAC and Delphi Situations
Slide 32: Address GMAC and Delphi Situations
Address GMAC and Delphi Situations GMAC Sold 51% of GMAC Successfully de-linked GM and GMAC credit rating Preserved strong Auto Finance relationship Delphi All key agreements finalized; exit financing and court approval of Plan pending
Slide 33: Excellent Progress on the Turnaround... But
Excellent Progress on the Turnaround... But Significant pressures from: Weak U.S. auto industry sales High fuel prices High raw material and steel costs Regulatory issues Yielding insufficient financial results -- So, What's Next?
Slide 34: What's Next?
What's Next? Continue to execute great products Build strong brands and distribution channels Execute additional cost reduction initiatives Emerging markets growth Advanced propulsion leadership Running the business globally
Slide 35: Continue to Execute Great Products
Continue to Execute Great Products Stay focused on excellence in product execution -- Keep "Raising the Bar" Fully leverage global design, engineering and powertrain Use great products to build great brands
Slide 36: Build Strong Brands
Build Strong Brands Effectively integrate product and marketing strategies Build brand equity; special focus on key car segments Enhance marketing effectiveness Special focus on digital marketing Leverage unique advantages like OnStar
Slide 37: Build Strong Distribution Channels
Build Strong Distribution Channels Accelerate implementation of 4 channel strategy Cadillac/HUMMER/SAAB Chevrolet Buick/Pontiac/GMC Saturn Channel alignment key enabler for: Clearer product and brand differentiation Enhanced dealer profitability Greater flexibility in product portfolio and technolog
Slide 38: Execute Additional Cost Reduction Initiatives
Execute Additional Cost Reduction Initiatives Implement UAW health care deal by 1/1/2010 Accelerate implementation of UAW contract Execute competitive CAW contract Ensure 100% or more capacity utilization in higher cost countries
Slide 39: GM-UAW Attrition Programs
Execute Additional Cost Reduction Initiatives GM-UAW Attrition Programs Phase I launched in January at SPO and JOBS Bank sites Employees begin exiting in March Phase II to be launched in February, open to remaining workforce Employees begin exiting in April 46,000 Employees are eligible for retireme
Slide 40: Maximize Capacity Utilization
Execute Additional Cost Reduction Initiatives Maximize Capacity Utilization Need to consistently run manufacturing capacity in high labor cost countries at 100% or greater Based on current U.S. industry volume levels, additional capacity rationalization of assembly plants, plus supporting powertrain
Slide 41: Another ~$5B Improvement by 2011
GRW_AA47 Execute Additional Cost Reduction Initiatives Another ~$5B Improvement by 2011
Slide 42: Driving Global Automotive Structural Cost to Benchmark Levels
GRW_AA48-02 Execute Additional Cost Reduction Initiatives Driving Global Automotive Structural Cost to Benchmark Levels Structural cost down to 23% of revenue by 2012
Slide 43: Emerging Markets Growth
GRW_AA49-02 Emerging Markets Growth
Slide 44: Emerging Markets Growth GM Strategy
Emerging Markets Growth GM Strategy Expand/enhance emerging markets "lower cost" product portfolio Focus on brand building and distribution channels Expand capacity in cost effective manner New market opportunities
Slide 45: China Initiatives
Emerging Markets Growth China Initiatives Continue to build corporate reputation Continue to drive multi-brand strategy Accelerate distribution expansion Enhance brand building initiatives Expand/update product portfolio, with focus on fuel economy Develop local technology capability Keep "leaning f
Slide 46: Fuel Economy/Advanced Propulsion
Fuel Economy/ Advanced Propulsion Multi-pronged leadership strategy Improve conventional powertrain and vehicle performance Biofuels, especially E-85 -- heavy ramp up Hybrids -- multiple offerings across wide range of vehicles E-Flex -- lead in electrically driven, battery powered vehicles Fuel Cell
Slide 47: Running The Business Globally
Running The Business Globally Building functional and technical excellence Leveraging products, powertrains, supplier base and technical expertise globally Flow existing resources to support greatest, highest return growth opportunities
Slide 48: Conclusion -- Effective Execution of '05-'07 Plan
Conclusion -- Effective Execution of '05 - '07 Plan GMNA Turnaround Strong product momentum Progress in Sales & Marketing strategy $9B cost reduction, by addressing key historical competitiveness issues GME Turnaround yielding positive results Overachieving emerging markets growth plan Built liquidi
Slide 49: What's Next?
What's Next? Challenging headwinds: U.S. economy/auto industry Energy prices/regulatory costs High raw material/steel costs Stay focused on product excellence and revenue growth strategies Accelerate additional cost reduction activities Implement 2007 GM-UAW labor agreement Drive advanced propulsion
Slide 50: Forward Looking Statements
Forward Looking Statements In this presentation and in related comments by General Motors' management, we will use words like "expect," "anticipate," "estimate," "forecast," "initiative," "objective," "plan," "goal," "project," "outlook," "priorities," "target," "intend," "evaluate," "pursue," "seek
Slide 51: Fritz Henderson, Vice Chairman & CFO
Fritz Henderson Vice Chairman & CFO
Slide 52: Agenda
Agenda 2005-2007 Financial Recap GM Valuation 2008 Outlook Managing Downside Risk Other Risks/Opportunities Longer Term Outlook No Time Like the Present
Slide 53: 2005-2007 Financial Accomplishments
2005-2007 Financial Accomplishments Big cost moves: $9B structural cost Eliminated health care inflation risk Reduced GMNA capacity Tackled tough risk factors: GMAC, Delphi, UAW labor agreement Grew aggressively and profitably in emerging markets Strengthened liquidity Improved earnings and cash flo
Slide 54: Stock Price Performance 2005-2007
FAH_AA04_StockPrice Stock Price Performance 2005-2007
Slide 55: GM Bond and CDS Spreads 2005-2007
FAH_AA05a_BondCDSspreads GM Bond and CDS Spreads 2005-2007 Based on GM 10-year bond and 5-year credit default swaps Direct and inverse relationship between GM shares and bond/CDS spreads ~70% correlated with spread fluctuation Also a direct relationship between GM and ResCap CDS spreads ~60% correla
Slide 56: Why Is Stock Valuation So Low At Year-end 2007?
Why Is Stock Valuation So Low At Year-end 2007? Overall impact of credit crunch on non-investment grade companies GM spreads and stock price closely and inversely correlated Concerns regarding weaker U.S. market Impact of housing/credit crunch on U.S. consumers Impact of high fuel prices on vehicle
Slide 57: GM Stock Price Valuation
GM Stock Price Valuation Key Drivers of GM Stock Price 2008 Outlook U.S. Industry Risk Other Risks & Opportunities Longer Term Outlook
Slide 58: 2007 Recap - Total Automotive Metrics vs. 2006 Outlook
2007 Recap - Total Automotive Metrics vs. 2006 Outlook Results Delivered 1 Year Ago thru Q3 Global Industry GM Revenue Net Material Performance Structural Cost Adjusted Earnings Cash Flow Capital Spending Increase Increase Flat Decrease Improve Improve but Negative Increase Increase Increase Slightl
Slide 59: Agenda
Agenda 2005-2007 Financial Recap GM Valuation 2008 Outlook Managing Downside Risk Other Risks/Opportunities Longer Term Outlook No Time Like the Present
Slide 60: 2008 vs. 2007 Global Industry
2008 vs. 2007 Global Industry Projected 2008 (Units Millions) 2007 2008 O/(U) 2007 North America 19.6 19.0 (0.6) Memo: U.S. 16.5 low 16's down slightly Europe 23.0 23.5 0.5 Latin Am/Africa/ME 7.2 7.7 0.5 Asia Pacific 20.8 23.2 2.4 Total 70.6 73.4 2.8 2008 2007 H1 H2 U.S. GDP 2.2% 2.1% 2.6%
Slide 61: U.S. Economic Outlook
U.S. Economic Outlook U.S. economy is expected to slow, but avoid a recession Weak housing market remains a headwind, but economy-wide credit crunch is not expected Employment and income growth will slow, but stay positive Overseas demand expected to remain strong, aiding U.S. exports U.S. dollar li
Slide 62: U.S. Industry Outlook
U.S. Industry Outlook 2007 industry levels have remained relatively steady throughout year despite growing economic headwinds 2008 total industry is likely to be in the low 16 million range Lower consumer confidence Rising gas and oil prices remain a headwind Domestic manufacturers have moved to rat
Slide 63: Stabilizing Retail SAAR Trend
FAH_AA12_RetailSAAR Stabilizing Retail SAAR Trend Source: GM Global Market & Industry Analysis
Slide 64: Pronounced Shift to Cars and Crossovers
Pronounced Shift to Cars and Crossovers 2007 2008 (% of Total U.S. Industry Sales) 2005 2007 O/(U) 2005 Outlook Economy 1.0 2.4 1.4 Small 13.3 14.3 1.0 Midsize 20.8 20.7 (0.1) Entry Luxury 4.0 4.5 0.5 All Other 5.3 4.7 (0.6) Total Cars 44.4 46.6 2.2 47.4 Med/Large Pickup 18.3 16.4 (1.9) Small Utilit
Slide 65: U.S. Transaction Price Trends
U.S. Transaction Price Trends FAH_AA14_TransactionPric Source: GM Global Market & Industry Analysis
Slide 66: GMNA - 2008 Key Strategies
GMNA - 2008 Key Strategies Objective Structure business to withstand U.S. industry challenges and deliver sustained profitability longer term Revenue Actions Leverage CTS and Malibu to re-establish GM strength in car market Continued stabilization of U.S. retail share Continued focus on restoring br
Slide 67: GMNA - Key Metrics 2008 vs. 2007
U.S. Industry Down Slightly GM U.S. Inventory GM Revenue Flat to Increase Mix Unfavorable Net Pricing Flat Net Material Performance Structural Cost as % of Revenue GMNA - Key Metrics 2008 vs. 2007 Weakness in H1 followed by improvement in H2 Align with demand following reduction in 2007 Production m
Slide 68: GME - 2008 Key Strategies
GME - 2008 Key Strategies Objective GME delivering positive cash flow and slightly above breakeven adjusted earnings - now need to take to next level Revenue Actions Continued focus on multi-brand strategy and quality of share Continued growth in Central/Eastern Europe and Russia Continue to fully l
Slide 69: GME - Key Metrics 2008 vs. 2007
GME - Key Metrics 2008 vs. 2007 Industry Volume About Flat GM Revenue Increase Mix Unfavorable Net Material Performance Structural Cost as Slight % of Revenue Decrease Currency Exchange Unfavorable Weakness in Western Europe offset by growth in Russia & Eastern Europe Continued GM volume growth in C
Slide 70: GMLAAM - 2008 Key Strategies
GMLAAM - 2008 Key Strategies Objective Grow! ...and continue to deliver superior financial results Revenue Actions Maximize capacity in cost efficient way Optimize pricing given strong industry Continue progress on filling portfolio gaps Cost Actions Strengthen Middle East dealers and distribution L
Slide 71: GMLAAM - Key Metrics 2008 vs. 2007
GMLAAM - Key Metrics 2008 vs. 2007 Industry Volume Increase GM Revenue Increase Mix Flat Net Material Performance Structural Cost as % of Revenue Currency Exchange Flat Strong economic growth throughout region fueled by commodity exports Product availability, aggressive pricing, continued share grow
Slide 72: GMAP - 2008 Key Strategies
GMAP - 2008 Key Strategies Objective Continue to grow sales and share via portfolio updates and additions and network/brand initiatives Revenue Actions Continue to grow in China by further driving multi-brand strategy Rapidly grow India volume by leveraging new mini-car production Develop growth str
Slide 73: GMAP - Key Metrics 2008 vs. 2007
GMAP - Key Metrics 2008 vs. 2007 Industry Volume Increase GM Revenue Increase Mix Favorable Net Material Performance Structural Cost as % of Revenue Currency Exchange Unfavorable Strong growth throughout the region, led by China & India Continued growth in China & GMDAT exports as well as increases
Slide 74: 2008 Earnings Considerations
2008 Earnings Considerations While global automotive outlook relatively positive, GM earnings variability largely a function of GMNA in short term Qualitative guidance for 2008 earnings and cash flow outlook vs. 2007 will be provided when we announce Q4/CY 2007 earnings Beginning Q4 2007, will repor
Slide 75: Material Cost - Total Automotive
Material Cost - Total Automotive 2007 2008 (Increase)/Decrease ($ Billion) 2005 2006 Est. Outlook Baseline Performance 2.4 2.7 2.4 2.7 Delphi Reductions 0.0 0.1 0.2 0.3 Commodities (0.7) (0.6) (1.3) (0.5) Major Product Programs (1.2) (1.3) (1.5) (0.4) Total Net Performance 0.5 0.9 (0.2) 2.1 2008 Imp
Slide 76: Delphi-related Material Savings
Delphi-related Material Savings 2005 price premium on Delphi-sourced parts estimated to be approximately $2B Approximately $1.5B at YE 2007 volumes and sourcing/pricing Expect to recoup substantial portion of premium over next 3-5 years Combination of improved Delphi competitiveness, more competitiv
Slide 77: Steadily Improving Structural Cost as % of Revenue
Steadily Improving Structural Cost as % of Revenue * Baseline adjusted to present comparable cost structure and normalize for one-time items. $55B Global Auto 34% of Global Auto Revenue $52B Global Auto 30% of Global Auto Revenue ~$53B Global Auto ~29.5% of Global Auto Revenue Memo: GMNA/Corp Legacy
Slide 78: 2008 Liquidity Outlook
2008 Liquidity Outlook Strong projected 2007 year-end gross liquidity of $27B+ 2008 Drivers Sources Strong overseas cash flow Net Delphi proceeds GMAC lease asset carve out inflows Uses Negative North America OCF including lower working capital improvements Special Attrition Program Contributions re
Slide 79: Continued Commitment to Product Portfolio
FAH_AA31_ComitmentPortfol Continued Commitment to Product Portfolio Capital Spending - Total Automotive
Slide 80: Agenda
Agenda 2005-2007 Financial Recap GM Valuation 2008 Outlook Managing Downside Risk Other Risks/Opportunities Longer Term Outlook No Time Like the Present
Slide 81: U.S. Industry Downside Scenario
U.S. Industry Downside Scenario Contingency planning in place for downside scenario based on factors such as: Possible further retraction in consumer and corporate credit Concerns regarding oil prices and higher energy costs more generally Full brunt of housing correction Resulting impact on consume
Slide 82: Managing Liquidity in a U.S. Industry Downturn
Managing Liquidity in a U.S. Industry Downturn Ahead of a possible downturn, should target liquidity of at least $18-20B and access to $4-5B of credit lines Year-end projected liquidity of $27B+ and access to approximately $7B of undrawn credit facilities Confident of liquidity cushion through CY 20
Slide 83: Agenda
Agenda 2005-2007 Financial Recap GM Valuation 2008 Outlook Managing Downside Risk Other Risks/Opportunities Longer Term Outlook No Time Like the Present
Slide 84: GMAC Update
GMAC Update GMAC expects ResCap to meet its financial covenants at YE 2007 GM believes GMAC remains adequately capitalized $1.1B of preferred equity converted to common by owners in Q4 2007 $1B contribution by GM in Q1 2007 to true-up equity per sale agreement No other cash injections required from
Slide 85: Delphi Update
Delphi Update Agreements between GM, Delphi and each of Delphi's labor unions were signed during June through August 2007 GM and Delphi signed comprehensive agreements in September 2007 resolving all claims by and against Delphi and documenting GM's support of Delphi's reorganization Agreements woul
Slide 86: Agenda
Agenda 2005-2007 Financial Recap GM Valuation 2008 Outlook Managing Downside Risk Other Risks/Opportunities Longer Term Outlook No Time Like the Present
Slide 87: 2010 Industry Outlook
2010 Industry Outlook Projected (Units Millions) 2007 2010 North America 19.6 ~20 Memo: U.S. 16.5 ~17 Europe 23.0 ~24 Latin Am/Africa/ME 7.2 ~8 Asia Pacific 20.8 ~27 Total 70.6 ~79
Slide 88: GM View of Long Term U.S. Industry Mix
GM View of Long Term U.S. Industry Mix Car/truck mix likely to continue gradual shift to cars through 2010 Continued shift to CUVs from traditional utilities and mid vans, as CUV entries proliferate across size/price categories Large pickup likely at structural levels of about 13-13.5%, recovering w
Slide 89: Key Business Drivers - 2010 vs. 2007
Key Business Drivers - 2010 vs. 2007 Total Automotive Revenue Net Material Performance Structural Cost as % of Revenue Adjusted Pre-tax Earnings Adjusted Operating Cash Flow Mix Regulatory Costs Recovery in North America, continued growth in emerging markets Improved vs. 2007, with potential for up
Slide 90: Significant Potential for Mid-term Earnings Improvement
Significant Potential for Mid-term Earnings Improvement Opportunities Full impact of 2007 GM-UAW labor agreement ~$4-5B Delphi-related cost reduction ~$0.5B U.S. industry returning to trend ~$1-1.5B Pricing for stronger brands Material cost reductions Further profitable growth in emerging markets Im
Slide 91: GM Stock Price Valuation
GM Stock Price Valuation Key Drivers of GM Stock Price 2008 Outlook U.S. Industry Risk Other Risks & Opportunities Longer Term Outlook Challenging environment Aggressive plan to address $2-3B cash flow downside Sufficient liquidity available Risks/opportunities now more balanced GMAC profitable in 2
Slide 92: No Time Like The Present
No Time Like The Present Implement new GM-UAW labor agreement - right-size/transform the company Reduce risk and improve earnings at GMAC/ResCap Execute new product launches flawlessly Grow aggressively in emerging markets Build technological capability Maintain strong liquidity to finance turnaroun
General Motors — Investor Presentation (January 2008) on 6ix