General Motors Company · NYSE:GM

General Motors — 2008 Morgan Stanley Global Auto Conference

33 slides from General Motors's conference presentation, Mar 20, 2008

  1. Slide 1: 2008 Morgan Stanley Global Auto Conference / Forward Looking Statements

    2008 Morgan Stanley Global Auto Conference R. Young March 19, 2008 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,” “outl

  2. Slide 2: Ray G. Young, Executive Vice President & CFO

    2008 Morgan Stanley Global Auto Conference R. Young March 19, 2008 Ray G. Young Executive Vice President & CFO I © 2008 General Motors Corporation. All Rights Reserved 2

  3. Slide 3: Agenda

    2008 Morgan Stanley Global Auto Conference R. Young March 19, 2008 Agenda Q Key Focus Areas Q Perspectives on Key Investor Questions –U.S. Economy and Industry . . –Liquidity in Face of Uncertain Market –Sustainability of Emerging Markets –Pathway to Structural Cost Targets QMy Priorities © 2008 Gen

  4. Slide 4: Key Focus Areas

    2008 Morgan Stanley Global Auto Conference R. Young March 19, 2008 Key Focus Areas 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 © 200

  5. Slide 5: What is GM's current view of the U.S. economy and industry for 2008?

    2008 Morgan Stanley Global Auto Conference R. Young March 19, 2008 What is GM’s current view of the U.S. economy and industry for 2008? © 2008 General Motors Corporation. All Rights Reserved 5

  6. Slide 6: Current U.S. Economic Outlook

    2008 Morgan Stanley Global Auto Conference R. Young March 19, 2008 Current U.S. Economic Outlook Disappointing Factors Encouraging Factors Deepening housing Continued strength slump in exports Frozen credit markets Q Aggressive Fed actions Job creation decline Rapid fiscal policy Energy/commodity re

  7. Slide 7: Current U.S. Industry Outlook

    2008 Morgan Stanley Global Auto Conference R. Young March 19, 2008 Current U.S. Industry Outlook Total industry expected to be in low 16 million unit range, down from 16.5 million last year . Second half sales expected to improve Do not expect massive incentives or big push into fleet sales Mix and

  8. Slide 8: U.S. Retail Industry Mix Trends

    2008 Morgan Stanley Global Auto Conference R. Young March 19, 2008 U.S. Retail Industry Mix Trends Source: Polk © 2008 General Motors Corporation. All Rights Reserved

  9. Slide 9: U.S. Retail Industry Mix Trends

    2008 Morgan Stanley Global Auto Conference R. Young March 19, 2008 U.S. Retail Industry Mix Trends Source: Polk © 2008 General Motors Corporation. All Rights Reserved

  10. Slide 10: U.S. Retail Industry Mix Trends

    2008 Morgan Stanley Global Auto Conference R. Young March 19, 2008 U.S. Retail Industry Mix Trends Source: Polk © 2008 General Motors Corporation. All Rights Reserved 10

  11. Slide 11: U.S. Retail Industry Mix Trends

    2008 Morgan Stanley Global Auto Conference R. Young March 19, 2008 U.S. Retail Industry Mix Trends Source: Polk © 2008 General Motors Corporation. All Rights Reserved

  12. Slide 12: U.S. Industry Average Transaction Price Trend

    2008 Morgan Stanley Global Auto Conference R. Young March 19, 2008 U.S. Industry Average Transaction Price Trend Source: PIN, retail only © 2008 General Motors Corporation. All Rights Reserved 12

  13. Slide 13: U.S. Industry Average Transaction Price Trend

    2008 Morgan Stanley Global Auto Conference R. Young March 19, 2008 U.S. Industry Average Transaction Price Trend Source: PIN, retail only © 2008 General Motors Corporation. All Rights Reserved 13

  14. Slide 14: Impact of Credit Environment

    2008 Morgan Stanley Global Auto Conference R. Young March 19, 2008 Impact of Credit Environment Credit market situation continues to evolve, with total financial sector losses approaching $600B Banks continue to tighten lending standards in response Auto lending standards continue to tighten as well

  15. Slide 15: Does GM have sufficient liquidity to weather a downturn?

    2008 Morgan Stanley Global Auto Conference R. Young March 19, 2008 Does GM have sufficient liquidity to weather a downturn? © 2008 General Motors Corporation. All Rights Reserved 15

  16. Slide 16: Managing Liquidity in a Downturn

    2008 Morgan Stanley Global Auto Conference R. Young March 19, 2008 Managing Liquidity in a Downturn At year-end 2007, liquidity of $27.3B and access . to about $7B of undrawn U.S. credit facilities . . Ahead of a downturn, liquidity target of $18-20B and access to $4-5B of committed credit lines Con

  17. Slide 17: Drivers of Liquidity Impact

    2008 Morgan Stanley Global Auto Conference R. Young March 19, 2008 Drivers of Liquidity Impact One million unit downside in U.S. industry in . . 2008 would have negative liquidity impact estimated in the $2-3B range – Contribution margin impact resulting from lower volumes and pressure on pricing –

  18. Slide 18: Management Actions in a Downturn

    2008 Morgan Stanley Global Auto Conference R. Young March 19, 2008 Management Actions in a Downturn Operating actions: – Reduce manufacturing, commercial and administrative spending – Manage capital expenditures and product development expenses Liquidity enhancements: – Maximize available sources of

  19. Slide 19: Other Liquidity Considerations

    2008 Morgan Stanley Global Auto Conference R. Young March 19, 2008 Other Liquidity Considerations GMAC/ResCap –GMAC liquidity remains at relatively high historical levels, andGM believes GMAC remains adequately capitalized –GM does not expect to be required to make cash injections into GMAC due to m

  20. Slide 20: Is current performance in emerging markets sustainable?

    2008 Morgan Stanley Global Auto Conference R. Young March 19, 2008 Is current performance in emerging markets sustainable? © 2008 General Motors Corporation. All Rights Reserved 20

  21. Slide 21: Historical Emerging Markets Performance

    2008 Morgan Stanley Global Auto Conference R. Young March 19, 2008 Historical Emerging Markets Performance Industry Sales Units (000s) 2002 2007 % Growth China 3,370 8,470 151% Russia 1,210 2,710 124% Brazil 1,450 2,460 70% India 890 1,990 124% Other* 6,380 11,290 77% Total Emerging 13,300 26,920 10

  22. Slide 22: Strong Growth Continues in 2008

    2008 Morgan Stanley Global Auto Conference R. Young March 19, 2008 Strong Growth Continues in 2008 Jan/Feb2008 vs. Jan/Feb 2007 . GM O/(U) Industry GM Industry China +18% +6% (12) p.p. . . Russia +36% +89% 53 p.p. . . Brazil +39% +53% 14 p.p. . . India +6% +63% 57 p.p. . . Other* +14% +15% 1 p.p. .

  23. Slide 23: Industry Outlook for Emerging Markets

    2008 Morgan Stanley Global Auto Conference R. Young March 19, 2008 Industry Outlook for Emerging Markets Industry Sales Units (000s) 2007 2012 Est. . % Growth China 8,470 14,100 66% Russia 2,710 3,800 40% Brazil 2,460 2,900 18% India 1,990 3,700 86% Other* 11,290 13,500 20% Total Emerging 26,920 38,

  24. Slide 24: GM Actions to Grow Assembly Capacity

    2008 Morgan Stanley Global Auto Conference R. Young March 19, 2008 GM Actions to Grow Assembly Capacity Q China – Work with JVs to add capacity, improve utilization at existing sites –Evaluating longer-term capacity increases - QRussia –St. Petersburg plant on-line late 2008 . — ; will explore addit

  25. Slide 25: What is the pathway to GM's long-term structural cost targets?

    2008 Morgan Stanley Global Auto Conference R. Young March 19, 2008 What is the pathway to GM’s long-term structural cost targets? © 2008 General Motors Corporation. All Rights Reserved 25

  26. Slide 26: Automotive Structural Cost As % of Revenue

    2008 Morgan Stanley Global Auto Conference R. Young March 19, 2008 Automotive Structural Cost As % of Revenue Structural Cost down to 23% of revenue by 2012 © 2008 General Motors Corporation. All Rights Reserved 26

  27. Slide 27: Global Automotive Structural Cost Progress

    2008 Morgan Stanley Global Auto Conference R. Young March 19, 2008 Global Automotive Structural Cost Progress © 2008 General Motors Corporation. All Rights Reserved

  28. Slide 28: Pathways to Structural Cost Targets

    2008 Morgan Stanley Global Auto Conference R. Young March 19, 2008 Pathways to Structural Cost Targets Aggressive cost reductions in mature markets – $4-5B U.S. labor savings related to UAW contract — . . – Leverage attrition program to transition U.S. workforce . . – Continue to reduce headcount du

  29. Slide 29: U.S. Hourly People Cost Trend

    2008 Morgan Stanley Global Auto Conference R. Young March 19, 2008 U.S. Hourly People Cost Trend © 2008 General Motors Corporation. All Rights Reserved 29

  30. Slide 30: Revenue and Structural Cost Strategies

    2008 Morgan Stanley Global Auto Conference R. Young March 19, 2008 Revenue and Structural Cost Strategies Developed Markets Emerging Markets Maintain/Grow Aggressively Contribution revenue via strong grow volume Margin product and and revenue quality of share Hold or grow Reduce Structural nominally

  31. Slide 31: What are your priorities as the new CFO at GM?

    2008 Morgan Stanley Global Auto Conference R. Young March 19, 2008 What are your priorities as the new CFO at GM? © 2008 General Motors Corporation. All Rights Reserved

  32. Slide 32: Priorities as GM CFO

    2008 Morgan Stanley Global Auto Conference R. Young March 19, 2008 Priorities as GM CFO Cash flow and liquidity focus Support GMNA turnaround Sustainable earnings power for GME Profitable growth in emerging markets Address risks related to Delphi, GMAC Continue to strengthen financial reporting © 20

  33. Slide 33: March 19, 2008

    2008 Morgan Stanley Global Auto Conference R. Young March 19, 2008 © 2008 General Motors Corporation. All Rights Reserved 33

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