General Motors Company · NYSE:GM
General Motors — Investor Presentation (September 2008)
22 slides from General Motors's investor presentation, Sep 24, 2008
Slide 1: Forward Looking Statements
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," "projec
Slide 2: Walter Borst, Treasurer, General Motors Corporation
WGB_DB-Title Walter Borst Treasurer, General Motors Corporation
Slide 3: Agenda
Agenda Current Environment Focus On Implementing Liquidity Plan Great Products Are Key To Future Looking Forward
Slide 4: U.S. Markets
WGB_DB06 U.S. Markets U.S. auto market showed some signs of life in August as sales increased modestly from July and mix improved Trucks made up 29% of industry sales in August (up 7 p.p. from May) 2008 U.S. total industry expected to be in mid-14 million unit range Will need to monitor impact of un
Slide 5: U.S. Markets
WGB_DB06a U.S. Markets U.S. auto market showed some signs of life in August as sales increased modestly from July and mix improved Trucks made up 29% of industry sales in August (up 7 p.p. from May) 2008 U.S. total industry expected to be in mid-14 million unit range Will need to monitor impact of u
Slide 6: Global Markets
Global Markets Risk of recession in Western Europe Western Europe expected to be down by ~1M units vs. 2007, with Central and Eastern Europe up by almost 1M units LAAM region economic growth expected to ease but remain solid Asia-Pacific economic expansion continues, but moderating due to slowing ex
Slide 7: Delphi Update
Delphi Update GM has continued to work with Delphi to facilitate Delphi's efforts to emerge from bankruptcy GM agreed to enhance support and to pull support forward from emergence in exchange for administrative claim and Delphi release Agreements effective upon court approval Enables Delphi to devel
Slide 8: GMAC Update
GMAC Update GMAC taking steps to reduce risk across its auto finance and mortgage businesses GM and GMAC working together to develop subvention programs that reduce strain on GMAC balance sheet while allowing GM to remain competitive in marketplace GM and GMAC coordinating to reduce lease residual r
Slide 9: Advanced Technology Vehicles Manufacturing Incentive Program
Advanced Technology Vehicles Manufacturing Incentive Program Passed as part of the Energy Independence and Security Act of 2007 Objective is to provide assistance to the auto industry to develop and implement advanced technologies Estimated cost to U.S. auto industry in coming years to comply with r
Slide 10: Agenda
Agenda Current Environment Focus On Implementing Liquidity Plan Great Products Are Key To Future Looking Forward
Slide 11: 2008 U.S. Industry vs. GM Liquidity Plan
2008 U.S. Industry vs. GM Liquidity Plan Despite market turmoil, liquidity planning assumptions remain conservative with respect to outlook for CY2008 YTD Liquidity Plan 2008 2008-2009 Light Vehicle Volume (SAAR) 14.3 M 14.0 M Fullsize Pickup % of Industry 11.3% 10.0% Fullsize SUV % of Industry 3.1%
Slide 12: Liquidity Plan Targets
Liquidity Plan Targets On July 15, announced plans to bolster liquidity through YE2009 by approximately $15B through a combination of operating and other actions, asset sales and capital markets activities Primary focus is on actions within GM control GM intends to meet or exceed targets GM has a tr
Slide 13: Operating and Other Actions
Operating and Other Actions Significant progress has been made towards achieving or surpassing operating and other cash generation targets GMNA Structural Cost ~$2.5B 0% 100% Recent plant/shift capacity announcements Marketing spend aligned w/market volume and mix shifts Optimizing engineering resou
Slide 14: Asset Sales Initiatives
Asset Sales Initiatives Undertaking broad global assessment of assets for potential sale or monetization, expected to generate about $2-4B in liquidity Assets under review are significantly in excess of these amounts GM believes it can monetize these assets without impacting the strategic direction
Slide 15: Capital Markets Activities
Capital Markets Activities On September 18, completed the exchange of $322M of Series D senior convertible debentures (maturing June 2009) for equity On September 19, provided notice to draw down secured revolver Currently renewing receivables securitization facility Will continue to monitor and opp
Slide 16: Secured Revolver
Secured Revolver GM intends to draw down remainder of $4.5B revolving credit facility to maintain high level of financial flexibility for ongoing restructuring Revolver draw bolsters liquidity position at a time when capital markets have become more challenging Proceeds also available to repay matur
Slide 17: Agenda
Agenda Current Environment Focus On Implementing Liquidity Plan Great Products Are Key To Future Looking Forward
Slide 18: Gas-friendly to gas-free
— Gas-friendly to gas-free. “Pw BHYO FUEL EFFICIENCY E85 ETHANOL HYBRID ELECTRIC FUEL CELL Jd eee
Slide 19: Agenda
Agenda Current Environment Focus On Implementing Liquidity Plan Great Products Are Key To Future Looking Forward
Slide 20: Outlook For GM Performance Post-2010
Outlook For GM Performance Post-2010 Strong growth outlook for global automotive industry -- GM is well positioned in emerging markets Advanced propulsion technology investments potentially game changing - -- scale will matter Management actions set stage for improved financial results in 2010 Globa
Slide 21: Summary and Management Focus
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
Slide 22: WGB_DB-MTL
WGB_DB-MTL
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