General Motors Company · NYSE:GM
General Motors — Corporate Update (June 2009)
16 slides from General Motors's corporate update, Jun 3, 2009
Slide 1: The New GM
Exhibit 99.1 The New GM June 2, 2009
Slide 2: Forward-Looking Statements
Forward-Looking Statements In this presentation and in related comments by our management, our use of the words “plan,” “expect,” “anticipate,” “ensure,” “promote,” “believe,” “improve,” “intend,” “enable,” “continue,” “will,” “may,” “would,” “could,” “should,” “project,” “positioned” or similar exp
Slide 3: Observations & Results 2005 to 2009
Observations & Results 2005 to 2009 • From 2005 through 2009, GM experienced substantial deterioration in financial results and condition, including OCF burn of more than $40B and decay in reported net worth by more than $100B • Business challenges massive and diverse, driven by GMNA and continued d
Slide 4: Situational Analysis
Situational Analysis Late 2008 • Massive cash burn depleted reserves in GMNA, Europe and other operations • Critical situation at GMAC as global capital markets and credit availability highly constrained • Lowest industry per-capita sales levels post-WWII in U.S. and almost equally depressed levels
Slide 5: The Last 60 Days
The Last 60 Days • Extensive due diligence with Presidential Task Force on Autos • April 27 “deeper and faster” restructuring plan • UAW and UAW VEBA negotiations completed – Competitive with U.S. transplants • CAW labor negotiations completed – Competitive with Canadian transplants • Progressed wit
Slide 6: The Last 60 Days (continued)
The Last 60 Days (continued) • Launched bond exchange • Finalized contingency plans • Obtained support of bondholders for “363” sale process • Reached agreement with UST and Canadian and Ontario governments on DIP Financing arrangements and future capital structure • Reached agreement with Delphi on
Slide 7: UAW Agreements
UAW Agreements Modifications to 2007 GM UAW Agreement • On May 29, UAW ratified modifications to 2007 GM-UAW Agreement addressing U.S. Treasury loan provisions – Agreement to fund New VEBA with greater than 50% equity – Significant modifications essentially close active wage and benefit gap to U.S.
Slide 8: UAW VEBA Agreement
UAW VEBA Agreement Key Terms • GM to continue PAYGO through 2H09 – Estimated $1.2B, net of health care plan changes • UAW will reverse $1.8B in “pension pass through” from 2007 Agreement • UAW VEBA to be funded with: – Transfer of ~$10B existing internal VEBA – $6.5B 9% cumulative perpetual preferre
Slide 9: U.S. Dealer Network Restructuring
U.S. Dealer Network Restructuring Participation & Wind-Down Agreements • Accelerating dealer network restructuring plans for higher throughput and profit opportunity to match key competitors • Dealers that GM looks forward to having as a part of the New GM will receive a participation agreement whic
Slide 10: Non-Core Brand Update
Non-Core Brand Update • Today announced completion of MOU with buyer for sale of HUMMER – GM would provide contract manufacturing and services for a transition period – Sale expected to close by end of Q3 • Continuing to pursue sale of Saturn – 16 parties expressed interest – Product continuation ag
Slide 11: Delphi Update
Delphi Update • GM and Platinum Equity reached agreement with Delphi – GM to acquire key UAW sites and global steering business – Platinum to acquire substantially all of remaining Delphi • Represents important step in resolving Delphi bankruptcy and advancing reinvention of GM • Delphi pursuing a M
Slide 12: Non-U.S. Restructuring Activities
Non-U.S. Restructuring Activities • Canada – Negotiated CAW concessions amounting to C$1.4B reduction in legacy obligations – Signed agreements with individual dealers to reduce dealer network from >700 to ~450 • Europe – Operations isolated from GM court supervised process – Opel/Vauxhall will cont
Slide 13: Executing on the Plan
Executing on the Plan U.S. Chapter 11 Filing & §363 Sale • GM has filed for relief under chapter 11 to complete aspects of our reinvention that we were not able to accomplish outside of court • Under agreement with U.S. Treasury (UST), GM will sell substantially all assets to a UST-sponsored entity
Slide 14: New GM Capital Structure
New GM Capital Structure • Critical to GM’s reinvention is a significantly healthier balance sheet – On March 31, 2009, GM reported consolidated debt of $54.4 billion along with approximately a $20 billion UAW VEBA obligation. • Other than $8B of debt, all other amounts owed to UST and Canadian and
Slide 15: Commitment to Advanced Technology
Commitment to Advanced Technology • GM committed to reduce fuel consumption and greenhouse gas emissions • Fully supportive of recently announced breakthrough national fuel economy policy, which harmonizes CAFE with greenhouse gas emission regulations • Expanding use of smaller displacement engines
Slide 16: Looking Ahead
Looking Ahead • New GM will be simpler and faster – Fewer people, fewer executives – Leaner management processes with faster decision making • New GM will benefit from a much improved operating structure – Still global – but a mix of wholly-owned and partially owned relationships – Significantly low