General Motors Company · NYSE:GM
General Motors — Conference Presentation (August 2008)
27 slides from General Motors's conference presentation, Aug 14, 2008
Slide 1: Ray G. Young, Executive Vice President & CFO
a " — pi! Ray G. Young wit — } Executive Vice President & CFO =_-~* ™
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," "estimate," "goal," "target," "believe," "improve," "intend," "potential," "continue," "designed," "opportunity," "risk," "may," "would," "could," "should," "projec
Slide 3: Agenda
Agenda Key Investor Focus Areas Evolving view of the U.S. Industry GM Liquidity Plan vs. U.S. Market Risks GM Capacity and Product Plan Maintaining Global Momentum Summary and Management Focus
Slide 4: What is GM's Current View of the U.S. Industry?
What is GM's Current View of the U.S. Industry?
Slide 5: Current U.S. Economic Factors
Current U.S. Economic Factors Disappointing Factors Encouraging Factors Continued high energy/ commodity prices Lack of supply response from global market Difficult credit markets Job creation decline Delayed housing recovery Continued strength in exports Aggressive monetary and fiscal policy action
Slide 6: U.S. Market Factors
U.S. Market Factors Challenging market impacted by high gas prices, slumping housing market and consumer credit tightening Household spending on gas (as % of income) rose from 2.5% in 2003 to 5% in mid-2008 Sharp decline of used vehicle values impacting leasing YTD total industry SAAR of 14.6 millio
Slide 7: U.S. Industry Light Vehicle Retail Mix
U.S. Industry Light Vehicle Retail Mix RGY_JPMgn06_USretailMix Source: GM Market and Industry Analysis
Slide 8: U.S. Industry Light Vehicle Retail Mix
U.S. Industry Light Vehicle Retail Mix Source: GM Market and Industry Analysis RGY_JPMgn07_USretailMix
Slide 9: 2008 U.S. Industry Outlook
2008 U.S. Industry Outlook YTD 2008 CY 2008 (thru July) Outlook Light Vehicle Volume (SAAR) 14.3 mil Low 14 mil Fullsize Pickup % of Industry 11.0% ~ 10.5% Fullsize SUV % of Industry 3.1% ~ 3.0% Average Oil Price per bbl $114 ~$120 GM Market Share 21.1% ~21%
Slide 10: Does GM's Liquidity Plan Adequately Address the Risks in the U.S. Market?
Does GM's Liquidity Plan Adequately Address the Risks in the U.S. Market?
Slide 11: 2008 U.S. Industry vs. GM Liquidity Plan
Light Vehicle Volume (SAAR) Low 14 mil 14.0 mil Fullsize Pickup % of Industry ~ 10.5% 10.0% Fullsize SUV % of Industry ~ 3.0% 2.3-2.7% Oil Price per bbl ~ $120 $120-150 GM Market Share ~ 21% ~21% 2008 U.S. Industry vs. GM Liquidity Plan CY 2008 Liquidity Plan Outlook 2008-09
Slide 12: GM Liquidity Plan Operating and Other Actions
GM Liquidity Plan Operating and Other Actions GMNA Structural Cost ~$2.5B Salaried Employment Savings ~$1.5B Capital Expenditure Reductions ~$1.5B Working Capital Improvements ~$2.0B UAW VEBA Payment Deferrals ~$1.7B Dividend Suspension ~$0.8B Asset Sales and Capital Market Actions ~$5.0B Total ~$15
Slide 13: Timing of Liquidity Plan Cash Savings
Timing of Liquidity Plan Cash Savings Operating and Other Actions 2H 2008 CY 2009 GMNA Structural Cost 0% 100% Salaried Employment Savings ~10% ~90% Capital Expenditure Reductions 0% 100% Working Capital Improvements ~25% ~75% UAW VEBA Payment Deferrals ~40% ~60% Dividend Suspension ~30% ~70%
Slide 14: Delphi, GMAC and Other Risk Factors
Delphi Additional charge taken in Q2 reflects updated view of expected obligations (e.g. pensions) and potential recoveries upon emergence Factors driving this charge fully comprehended in GM Liquidity Plan In August GM agreed to increase amount that could be advanced to Delphi to $950 million Withi
Slide 15: Does GM's Capacity and Product Plan Align with Rapid U.S. Market Changes?
Does GM's Capacity and Product Plan Align with Rapid U.S. Market Changes?
Slide 16: GMNA Capacity Action Recap
GMNA Capacity Action Recap Objective Rebalance GMNA capacity towards cars/crossovers Minimize capital investment by leveraging existing footprint Continue leveraging global product programs Implemented or Announced Actions Substantial net reductions from 2005-2008 Recently announced production cessa
Slide 17: GMNA Installed Capacity and Utilization
GMNA Installed Capacity and Utilization Excluding JVs and Contract Assembly; utilization measured over full year based on timing of capacity actions RGY_JPMgn16a_GMNAcapcity Installed capacity realigned to over 60% cars/crossovers by 2010
Slide 18: Operating Capacity Flexibility
Operating Capacity Flexibility In addition to reductions in installed capacity, significant actions in 2008 to shift "operating capacity" by revising shifts, line speeds and headcount within existing footprint Truck operating capacity reduced ~850k Car/crossover operating capacity increased ~700k Fl
Slide 19: Global Architecture Development
Global Architecture Development Global architecture development team approach implemented in early 2005 Planning, design, engineering and program management run centrally and responsible for global engineering and capex budgets Significant product development efficiencies generated On plan to reduce
Slide 20: Global Architecture Case Study
Global Architecture Case Study Global architectures based on common underbody, motor compartment and corporate common component sets Differentiation via modular plug and play major component sets Facilitate international design, engineering and manufacturing Global midsize car will be the first vehi
Slide 21: How Will GM Maintain Momentum in Overseas Markets?
How Will GM Maintain Momentum in Overseas Markets?
Slide 22: Global Growth Driven By Emerging Markets
Global Growth Driven By Emerging Markets Brazil, Russia, India, and China are 4 of top 10 auto markets in the world... and growing fast Asia Pacific growth fueled by China, which is expected to surpass U.S. market by mid-decade FAH_KEY04_IndSGrowth
Slide 23: GME Outlook and Strategies
GME Outlook and Strategies Economic/Industry Trends Inflationary pressures forcing tight monetary policy in Eurozone & UK Initial signs of recession evident in key Western European countries, due to housing correction, credit crunch, consumer confidence decline 2008 industry volume expected to decli
Slide 24: GMLAAM Outlook and Strategies
GMLAAM Outlook and Strategies Economic/Industry Trends Energy and commodity boom supporting strong economic growth Industry volume still expected to be well above 2007 CY, due mostly to strong growth in South America Key Strategies Maximize capacity in cost efficient way Optimize pricing given stron
Slide 25: GMAP Outlook and Strategies
GMAP Outlook and Strategies Economic/Industry Trends Economic expansion continues, but moderating due to slowing exports, record high inflation, tightening bias of monetary policies 2008 industry volume still expected to be above 2007 due to solid growth in China and India Key Strategies Continue to
Slide 26: 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 27: RGY_JPMgn-MTL
RGY_JPMgn-MTL
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