General Motors Company · NYSE:GM
General Motors — Investor Presentation (March 2013)
24 slides from General Motors's investor presentation, Mar 27, 2013
Slide 1: Chuck Stevens, CFO, GM North America
CHUCK STEVENS CFO, GM North America Exhibit 99.1
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS 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,” “outlook” or
Slide 3: Agenda
AGENDA GMNA Performance Since 2010 2013… A Transition Year The Road to 10% EBIT- Adjusted Margin
Slide 4: GMNA Performance Since 2010
GMNA PERFORMANCE SINCE 2010 Design, Build, Sell Great Products Pricing/Incentive Discipline Fixed Cost Focus Maintain Low Break-Even Point Key Tenets of New Business Model And IPO
Slide 5: Design, Build, Sell Great Products
DESIGN, BUILD, SELL GREAT PRODUCTS Chevrolet Equinox Chevrolet Cruze Chevrolet Sonic Cadillac SRX Buick Lacrosse Segment Share Price Profitability
Slide 6: Pricing and Incentive Discipline
PRICING AND INCENTIVE DISCIPLINE 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 6% 7% 8% 9% 10% 11% 12% 13% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 $ /U n it In ce n ti v e % A T P GM Avg. Incentive % ATP U.S. Industry Avg. Incentive % ATP Avg. GM U.S. Retail Incentive 2010 2012 2011 Note: Incentive &
Slide 7: Strong Focus on Fixed Cost
STRONG FOCUS ON FIXED COST $26.9 $20.6 $20.3 $21.0 $15 $20 $25 $30 2007 2010 2011 2012 Fi x e d C o st ( $ B ) Fixed Cost Reduced by ~25% Since 2007 Pension Income ($B): $1.4 $1.7 $0.8 ~Flat Excluding Pension Impact Old GM New GM
Slide 8: Maintain Low Break-Even Point
MAINTAIN LOW BREAK-EVEN POINT 0 2 4 6 8 10 12 14 16 18 20 1990 1995 2000 2005 2010 Tot a l U .S . I n d u st ry U n it s (M ) Note: Break-even point is on an EBIT-adjusted basis Total U.S. Industry GM U.S. Average Breakeven 2010-2012
Slide 9: GMNA Financial Performance
GMNA FINANCIAL PERFORMANCE $5.7 $7.2 $7.0 6.9% 8.0% 7.4% 5% 6% 7% 8% 9% $0 $1 $2 $3 $4 $5 $6 $7 $8 2010 2011 2012 E B IT Ma rg in E B IT - A d ju st e d ( $ B ) EBIT- Adj. EBIT- Adj. Margin U.S. Industry Units (M): 11.8 13.0 14.8 Memo: U.S. Industry averaged 14.9M units over the past 10 years $20B T
Slide 10: Agenda
AGENDA GMNA Performance Since 2010 2013… A Transition Year The Road to 10% EBIT- Adjusted Margin
Slide 11: 2013 GMNA Outlook
2013 GMNA OUTLOOK Volume ¶ Expect U.S. industry increase of ~5% ¶ Expect modest share increase Mix ¶ Increased luxury vehicles offset with increased small cars ¶ Expect truck production to be flat Price ¶ Favorable price on new vehicles ¶ Unfavorable price on carryover vehicles ¶ Overall favorable C
Slide 12: Chevrolet Silverado and GMC Sierra
CHEVROLET SILVERADO AND GMC SIERRA
Slide 13: Design, Build, Sell Great Products
DESIGN, BUILD, SELL GREAT PRODUCTS Buick Encore Cadillac ATS Chevrolet Impala Cadillac XTS Chevrolet Stingray
Slide 14: Cadillac CTS
CADILLAC CTS
Slide 15: Agenda
AGENDA GMNA Performance Since 2010 2013… A Transition Year The Road to 10% EBIT- Adjusted Margin
Slide 16: Mid-Term Goal: 10% Margins
MID-TERM GOAL: 10% MARGINS 2010-2012 Average Mid-term Goal >=10% EBIT- Adj. ~7.4% EBIT- Adj. Near to Mid-Term ¶ Revenue Enhancement ¶ Fixed Cost Reduction Mid to Longer Term ¶ Material Optimization ¶ Logistics Efficiency
Slide 17: Revenue Enhancements (~100 bps)
REVENUE ENHANCEMENTS (~100 BPS) Revenue Product Portfolio Cadillac Dealer Network Residual Gap Banking Strategy
Slide 18: 2013-2016 CY Portfolio Refreshed
2013-2016 CY PORTFOLIO REFRESHED 39% 62% 78% 89% 0% 20% 40% 60% 80% 100% 2013 2014 2015 2016 % V o lu m e N e w S in ce 201 2 Carryover Vehicles New Vehicles 2013-2016 CY at 2x the pace of 2009-2012 Note: 2009 2010 2011 2012 % Volume 16% 25% 36% 45% New Since 2008
Slide 19: Cadillac Portfolio
CADILLAC PORTFOLIO 2014 CY SRX CTS ESCALADE STS DTS ATS: 2013 Car of the Year SRX – Refreshed in 2012 Escalade – New in 2014 XTS – New in 2012 CTS – New in 2013 ELR – New in 2013 2010 CY
Slide 20: Other Revenue Enhancement Opportunities
OTHER REVENUE ENHANCEMENT OPPORTUNITIES ¶ Enhanced dealer facilities – Over 4,000 dealers participating – Strong focus on California and New York ¶ Eliminate residual gap – currently 200 basis points ¶ Fully leverage banking strategy – GM Financial generating >20k incremental sales annually
Slide 21: Fixed Costs (~100 bps)
FIXED COSTS (~100 BPS) Targeting 6% reduction in SG&A ¶ Overhead ¶ IT Expect manufacturing efficiencies in the range of 5% ¶ Tier I/Tier II mix ¶ Skilled trades competitiveness ¶ Footprint optimization ¶ Project expense Intended to offset D&A, marketing and pension headwinds in 2013
Slide 22: Material and Logistics (~100 bps)
MATERIAL AND LOGISTICS (~100 BPS) Material cost optimization ¶ Global architectures from ~60% of today’s volume to ~95% by 2018 ¶ Supplier strategic sourcing ¶ Supplier footprint ¶ Further leverage scale Logistics efficiencies ¶ Premium freight ¶ Mode optimization ¶ Inbound freight optimization
Slide 23: Summary – GMNA
SUMMARY – GMNA ¶ Generated $20B EBIT-adjusted in the last three years ¶ Launch of several key products makes 2013 an important transition year ¶ Sound foundation being laid for ~10% margins by mid-decade
Slide 24: Everything Begins and Ends with Great Products
EVERYTHING BEGINS and ENDS with GREAT PRODUCTS a