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Gm Events & Presentations Credit Suisse Group Annual Global Automotive Conference

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M. LaNeve Sept. 4, 2008 2008 Credit Suisse Automotive Conference 1 © 2008 General Motors Corporation. All Rights Reserved 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,” “project,” “projected,” “positioned” or similar expressions is intended to identify forward-looking statements that represent our current judgment about possible future events. We believe these judgments are reasonable, but these statements are not guarantees of any events or financial results, and our actual results may differ materially due to a variety of important factors. The most recent reports on SEC Forms 10-K, 10-Q and 8-K filed by us or GMAC provide information about these and other factors, which may be revised or supplemented in future reports to the SEC on those forms. Industry and market data contained in this presentation is based on internal GM market and industry analysis. Although management believes this data is reliable as of its respective dates, this data has not been independently verified and we cannot assure you as to accuracy or completeness of this data. Unless specifically required by law, we assume no obligation to update or revise these forward-looking statements to reflect new events or circumstances. 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,” “project,” “projected,” “positioned” or similar expressions is intended to identify forward-looking statements that represent our current judgment about possible future events. We believe these judgments are reasonable, but these statements are not guarantees of any events or financial results, and our actual results may differ materially due to a variety of important factors. The most recent reports on SEC Forms 10-K, 10-Q and 8-K filed by us or GMAC provide information about these and other factors, which may be revised or supplemented in future reports to the SEC on those forms. Industry and market data contained in this presentation is based on internal GM market and industry analysis. Although management believes this data is reliable as of its respective dates, this data has not been independently verified and we cannot assure you as to accuracy or completeness of this data. Unless specifically required by law, we assume no obligation to update or revise these forward-looking statements to reflect new events or circumstances.
Transcript
Page 1: Gm Events & Presentations Credit Suisse Group Annual Global Automotive Conference

M. LaNeve Sept. 4, 20082008 Credit Suisse Automotive Conference

1© 2008 General Motors Corporation. All Rights Reserved

Forward Looking StatementsForward Looking StatementsIn 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,” “project,” “projected,” “positioned” or similar expressions is intended to identify forward-looking statements that represent our current judgment about possible future events. We believe these judgments are reasonable, but these statements are not guarantees of any events or financial results, and our actual results may differ materially due to a variety of important factors. The most recent reports on SEC Forms 10-K, 10-Q and 8-K filed by us or GMAC provide information about these and other factors, which may be revised or supplementedin future reports to the SEC on those forms.

Industry and market data contained in this presentation is based on internal GM market and industry analysis. Although management believes this data is reliableas of its respective dates, this data has not been independently verified and we cannot assure you as to accuracy or completeness of this data.

Unless specifically required by law, we assume no obligation to update or revisethese forward-looking statements to reflect new events or circumstances.

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,” “project,” “projected,” “positioned” or similar expressions is intended to identify forward-looking statements that represent our current judgment about possible future events. We believe these judgments are reasonable, but these statements are not guarantees of any events or financial results, and our actual results may differ materially due to a variety of important factors. The most recent reports on SEC Forms 10-K, 10-Q and 8-K filed by us or GMAC provide information about these and other factors, which may be revised or supplementedin future reports to the SEC on those forms.

Industry and market data contained in this presentation is based on internal GM market and industry analysis. Although management believes this data is reliableas of its respective dates, this data has not been independently verified and we cannot assure you as to accuracy or completeness of this data.

Unless specifically required by law, we assume no obligation to update or revisethese forward-looking statements to reflect new events or circumstances.

Page 2: Gm Events & Presentations Credit Suisse Group Annual Global Automotive Conference

M. LaNeve Sept. 4, 20082008 Credit Suisse Automotive Conference

2© 2008 General Motors Corporation. All Rights Reserved

Mark LaNeveGMNA Vice President, Vehicle Sales, Service, & MarketingGeneral Motors Corporation

Mark LaNeveGMNA Vice President, Vehicle Sales, Service, & MarketingGeneral Motors Corporation

Page 3: Gm Events & Presentations Credit Suisse Group Annual Global Automotive Conference

M. LaNeve Sept. 4, 20082008 Credit Suisse Automotive Conference

3© 2008 General Motors Corporation. All Rights Reserved

AgendaAgenda

Industry Outlook

Market and GM Performance

GM Go-To-Market Strategy

Distribution Channels

Industry Outlook

Market and GM Performance

GM Go-To-Market Strategy

Distribution Channels

Page 4: Gm Events & Presentations Credit Suisse Group Annual Global Automotive Conference

M. LaNeve Sept. 4, 20082008 Credit Suisse Automotive Conference

4© 2008 General Motors Corporation. All Rights Reserved

Industry ChallengesIndustry Challenges

Market shift away from our traditional strength in trucks

Credit market has deteriorated buyer base of non-prime buyers

High fuel prices straining our owner base

Consumer confidence remains unstable

Perception gap to competition remains in quality and fuel economy

High cost of supporting leasing

Market shift away from our traditional strength in trucks

Credit market has deteriorated buyer base of non-prime buyers

High fuel prices straining our owner base

Consumer confidence remains unstable

Perception gap to competition remains in quality and fuel economy

High cost of supporting leasing

Page 5: Gm Events & Presentations Credit Suisse Group Annual Global Automotive Conference

M. LaNeve Sept. 4, 20082008 Credit Suisse Automotive Conference

5© 2008 General Motors Corporation. All Rights Reserved

Current U.S. Industry OutlookCurrent U.S. Industry Outlook

Total industry expected to be in mid 14M unit range, down from 16.5M last year

– CYTD total industry SAAR of 14.6M through August

Current calendar year outlook suggests balance of year SAAR of 13.5M

Do not expect massive incentives or big push into fleet sales

Mix shift is a concern but appears to have stabilized; GM has performed well in several growing segments

Total industry expected to be in mid 14M unit range, down from 16.5M last year

– CYTD total industry SAAR of 14.6M through August

Current calendar year outlook suggests balance of year SAAR of 13.5M

Do not expect massive incentives or big push into fleet sales

Mix shift is a concern but appears to have stabilized; GM has performed well in several growing segments

Page 6: Gm Events & Presentations Credit Suisse Group Annual Global Automotive Conference

M. LaNeve Sept. 4, 20082008 Credit Suisse Automotive Conference

6© 2008 General Motors Corporation. All Rights Reserved

U.S. Light Vehicle Industry SAARU.S. Light Vehicle Industry SAAR

Source: GM Global Market and Industry Analysis (GMIA)

Page 7: Gm Events & Presentations Credit Suisse Group Annual Global Automotive Conference

M. LaNeve Sept. 4, 20082008 Credit Suisse Automotive Conference

7© 2008 General Motors Corporation. All Rights Reserved

U.S. Industry Light Vehicle MixU.S. Industry Light Vehicle Mix

Source: GM Global Market and Industry Analysis (GMIA)/JD Power Information Network; Data through August 2008

Page 8: Gm Events & Presentations Credit Suisse Group Annual Global Automotive Conference

M. LaNeve Sept. 4, 20082008 Credit Suisse Automotive Conference

8© 2008 General Motors Corporation. All Rights Reserved

Shorter ownership lifecycle

Enhanced marketing dueto known trade date

Higher loyalty rate

Payment advertising todrive showroom traffic

Buy-up opportunity due to lower monthly payments

Shorter ownership lifecycle

Enhanced marketing dueto known trade date

Higher loyalty rate

Payment advertising todrive showroom traffic

Buy-up opportunity due to lower monthly payments

Higher incentive cost/unit

External risks toresidual values

Seasonal residual risk if not managed properly

More difficult to fund in financial markets

Off-lease vehicles cancompete with new vehicles

Higher incentive cost/unit

External risks toresidual values

Seasonal residual risk if not managed properly

More difficult to fund in financial markets

Off-lease vehicles cancompete with new vehicles

Pros and Cons of the Leasing BusinessPros and Cons of the Leasing Business

ProsPros ConsCons

Page 9: Gm Events & Presentations Credit Suisse Group Annual Global Automotive Conference

M. LaNeve Sept. 4, 20082008 Credit Suisse Automotive Conference

9© 2008 General Motors Corporation. All Rights Reserved

What’s Going Right for GMWhat’s Going Right for GMRecently launched products very well received

Despite industry downturn in large pickups and lower incentive spending, GM has gained share

Strong progress in dealer network channel alignment and consolidation

Dealer network is best at taking care of customers

Several much-anticipated launches upcoming over the next few quarters

Recently launched products very well received

Despite industry downturn in large pickups and lower incentive spending, GM has gained share

Strong progress in dealer network channel alignment and consolidation

Dealer network is best at taking care of customers

Several much-anticipated launches upcoming over the next few quarters

Page 10: Gm Events & Presentations Credit Suisse Group Annual Global Automotive Conference

M. LaNeve Sept. 4, 20082008 Credit Suisse Automotive Conference

10© 2008 General Motors Corporation. All Rights Reserved

Launch Successes in Key SegmentsLaunch Successes in Key Segments

Compact CarsCompact Cars

August YTD Retail Volume – 2008 vs. 2007August YTD Retail Volume – 2008 vs. 2007

Mid & Mid Lux CarsMid & Mid Lux Cars CrossoversCrossovers

Vibe +35%Vibe +35% Malibu +130%

Aura +6%

CTS +39%

Malibu +130%

Aura +6%

CTS +39%

Enclave +203%

Acadia +14%

HHR +7%

VUE +9%

Enclave +203%

Acadia +14%

HHR +7%

VUE +9%

Page 11: Gm Events & Presentations Credit Suisse Group Annual Global Automotive Conference

M. LaNeve Sept. 4, 20082008 Credit Suisse Automotive Conference

11© 2008 General Motors Corporation. All Rights Reserved

Launch Successes in Key SegmentsLaunch Successes in Key Segments

Compact CarsCompact Cars

August Retail Volume – 2008 vs. 2007August Retail Volume – 2008 vs. 2007

Mid & Mid Lux CarsMid & Mid Lux Cars CrossoversCrossovers

Vibe +114%Vibe +114% Malibu +212%

CTS +87%

Malibu +212%

CTS +87%

Enclave +87%

Acadia +29%

Outlook +4%

VUE +32%

Enclave +87%

Acadia +29%

Outlook +4%

VUE +32%

Page 12: Gm Events & Presentations Credit Suisse Group Annual Global Automotive Conference

M. LaNeve Sept. 4, 20082008 Credit Suisse Automotive Conference

12© 2008 General Motors Corporation. All Rights Reserved

Impact of EDE on Retail SalesImpact of EDE on Retail Sales

Note: Comparisons made to previous 90-day periods

Page 13: Gm Events & Presentations Credit Suisse Group Annual Global Automotive Conference

M. LaNeve Sept. 4, 20082008 Credit Suisse Automotive Conference

13© 2008 General Motors Corporation. All Rights Reserved

2004 MY 2006 MY 2008 MY Q1-Q2

Rebate/ Exterior ExteriorIncentives Styling Styling

Value for Value for Value for the Money the Money the Money

Price/ Fuel FuelMonthly Payments Economy Economy

Exterior Price/ Dealership SalesStyling Monthly Payments Experience

Fuel Rebate/ Dependable/Economy Incentive Reliable

2004 MY 2006 MY 2008 MY Q1-Q2

Rebate/ Exterior ExteriorIncentives Styling Styling

Value for Value for Value for the Money the Money the Money

Price/ Fuel FuelMonthly Payments Economy Economy

Exterior Price/ Dealership SalesStyling Monthly Payments Experience

Fuel Rebate/ Dependable/Economy Incentive Reliable

GM Top Reasons For PurchaseGM Top Reasons For Purchase

#1#1

#2#2

#3#3

#4#4

#5#5

Source: GM Global Market and Industry Analysis (GMIA)/TCE Buyer Behavior

Page 14: Gm Events & Presentations Credit Suisse Group Annual Global Automotive Conference

M. LaNeve Sept. 4, 20082008 Credit Suisse Automotive Conference

14© 2008 General Motors Corporation. All Rights Reserved

U.S. Average Transaction PricesU.S. Average Transaction Prices% Change2008 CYTD

2004 CY 2008 CYTD vs. 2004 CY

% Change2008 CYTD

2004 CY 2008 CYTD vs. 2004 CY

Source: GM Global Market and Industry Analysis (GMIA), Power Information Network (PIN)

GM Car $20,980 $21,852 4.0%

GM Truck $28,975 $30,348 4.5%

GM Crossover $24,142 $24,736 2.4%

Industry Car $22,849 $23,236 1.7%

Industry Truck $27,225 $27,956 2.6%

Industry Crossover $26,498 $26,257 (0.9)%

GM Car $20,980 $21,852 4.0%

GM Truck $28,975 $30,348 4.5%

GM Crossover $24,142 $24,736 2.4%

Industry Car $22,849 $23,236 1.7%

Industry Truck $27,225 $27,956 2.6%

Industry Crossover $26,498 $26,257 (0.9)%

Page 15: Gm Events & Presentations Credit Suisse Group Annual Global Automotive Conference

M. LaNeve Sept. 4, 20082008 Credit Suisse Automotive Conference

15© 2008 General Motors Corporation. All Rights Reserved

GM Dealer Inventories Are LeanGM Dealer Inventories Are Lean

Source: GM Global Market and Industry Analysis (GMIA)

Page 16: Gm Events & Presentations Credit Suisse Group Annual Global Automotive Conference

M. LaNeve Sept. 4, 20082008 Credit Suisse Automotive Conference

16© 2008 General Motors Corporation. All Rights Reserved

Go-To-MarketGo-To-MarketStrategyStrategy

Page 17: Gm Events & Presentations Credit Suisse Group Annual Global Automotive Conference

M. LaNeve Sept. 4, 20082008 Credit Suisse Automotive Conference

17© 2008 General Motors Corporation. All Rights Reserved

2008 and Future Business Plan Imperatives2008 and Future Business Plan ImperativesRe-establish Chevrolet as a Leader inMainstream Volume Cars and CrossoversRe-establish Chevrolet as a Leader inMainstream Volume Cars and Crossovers

Re-ignite Cadillac’s Renaissance to AchieveLeadership in the Luxury SegmentRe-ignite Cadillac’s Renaissance to AchieveLeadership in the Luxury Segment

Maintain Truck Leadership in Volume and ImageMaintain Truck Leadership in Volume and Image

Develop a Robust BPG Portfolio that AddsIncremental Sales and Leads to a Healthy ChannelDevelop a Robust BPG Portfolio that AddsIncremental Sales and Leads to a Healthy Channel

Develop a Profitable Market Position for Saturn in Line with Growth ExpectationsDevelop a Profitable Market Position for Saturn in Line with Growth Expectations

Leverage Saab as Incremental Luxury OpportunityLeverage Saab as Incremental Luxury Opportunity

Conduct Strategic Review of HUMMERConduct Strategic Review of HUMMER

Page 18: Gm Events & Presentations Credit Suisse Group Annual Global Automotive Conference

M. LaNeve Sept. 4, 20082008 Credit Suisse Automotive Conference

18© 2008 General Motors Corporation. All Rights Reserved

Re-establish Chevrolet as a Leader In Mainstream Volume Cars and CrossoversRe-establish Chevrolet as a Leader In Mainstream Volume Cars and Crossovers

New Malibu must establish Chevrolet credibility in critical mid-car market

Utilize Malibu as the foundation for rebuilding brand health with future entries

Leverage Camaro to bring excitement and design leadership back to the brand

Develop Chevy entries to meet new car buyers’(Aveo) and Gen-Y needs (Cruze)

Achieve best-in-segment fuel economy

Grow incremental volume

New Malibu must establish Chevrolet credibility in critical mid-car market

Utilize Malibu as the foundation for rebuilding brand health with future entries

Leverage Camaro to bring excitement and design leadership back to the brand

Develop Chevy entries to meet new car buyers’(Aveo) and Gen-Y needs (Cruze)

Achieve best-in-segment fuel economy

Grow incremental volume

Page 19: Gm Events & Presentations Credit Suisse Group Annual Global Automotive Conference

M. LaNeve Sept. 4, 20082008 Credit Suisse Automotive Conference

19© 2008 General Motors Corporation. All Rights Reserved

Traverse Marketing ApproachTraverse Marketing ApproachTraverse will be superior in all the important practical aspects: utility, safety, and fuel economy

Traverse has a great opportunity to reach a verydesirable target:

– Successful, educated women who have a lot going on in theirlives – career, family, community, socially. They have high functional needs, but want to meet those needs in style.

Traverse has the best fuel economy (24 mpg) of any 8-passenger crossover, as well as best-in-class cargo room

Messaging for Traverse, like all Chevy models, will emphasize fuel economy and value

Traverse will be superior in all the important practical aspects: utility, safety, and fuel economy

Traverse has a great opportunity to reach a verydesirable target:

– Successful, educated women who have a lot going on in theirlives – career, family, community, socially. They have high functional needs, but want to meet those needs in style.

Traverse has the best fuel economy (24 mpg) of any 8-passenger crossover, as well as best-in-class cargo room

Messaging for Traverse, like all Chevy models, will emphasize fuel economy and value

Chevy Traverse: It’s everything you’ve ever wished for… and then some

Page 20: Gm Events & Presentations Credit Suisse Group Annual Global Automotive Conference

M. LaNeve Sept. 4, 20082008 Credit Suisse Automotive Conference

20© 2008 General Motors Corporation. All Rights Reserved

Re-ignite Cadillac’s Renaissance to Achieve Leadership In the Luxury SegmentRe-ignite Cadillac’s Renaissance to Achieve Leadership In the Luxury Segment

Design and engineer products to meet global expectations of luxury buyers

Provide a full product line-up and features to fit global luxury segments

Align execution of luxury image in all aspects of the retail channel

Leverage CTS launch as momentum-builder to strengthen brand health:– CTS SportWagon, Coupe, SRX in 2009

Design and engineer products to meet global expectations of luxury buyers

Provide a full product line-up and features to fit global luxury segments

Align execution of luxury image in all aspects of the retail channel

Leverage CTS launch as momentum-builder to strengthen brand health:– CTS SportWagon, Coupe, SRX in 2009

Page 21: Gm Events & Presentations Credit Suisse Group Annual Global Automotive Conference

M. LaNeve Sept. 4, 20082008 Credit Suisse Automotive Conference

21© 2008 General Motors Corporation. All Rights Reserved

Address Needs of Growing Customer Segments(Fuel Economy, Volt, etc)Address Needs of Growing Customer Segments(Fuel Economy, Volt, etc)

GM is investing in multiple pathways to meet customers’ fuel economy and environmental needs:

– MPG, E85 Ethanol, Hybrids, Electric, Fuel Cell

GM has 18 models with 30 MPG or better EPA highway – more than any other automaker

Fuel efficiency leader in subcompact and midsize segments

GM currently offers eight hybrid models, and 18 flex-fuel models that operate on E85 ethanol

We will continue to be the technology leader by offering safety, security and connectivity options, such as:

– OnStar Stolen Vehicle Slowdown– Destination Download– eNav– Bluetooth and USB-compatible radios

GM is investing in multiple pathways to meet customers’ fuel economy and environmental needs:

– MPG, E85 Ethanol, Hybrids, Electric, Fuel Cell

GM has 18 models with 30 MPG or better EPA highway – more than any other automaker

Fuel efficiency leader in subcompact and midsize segments

GM currently offers eight hybrid models, and 18 flex-fuel models that operate on E85 ethanol

We will continue to be the technology leader by offering safety, security and connectivity options, such as:

– OnStar Stolen Vehicle Slowdown– Destination Download– eNav– Bluetooth and USB-compatible radios

Page 22: Gm Events & Presentations Credit Suisse Group Annual Global Automotive Conference

M. LaNeve Sept. 4, 20082008 Credit Suisse Automotive Conference

22© 2008 General Motors Corporation. All Rights Reserved

DistributionDistributionChannelsChannels

Page 23: Gm Events & Presentations Credit Suisse Group Annual Global Automotive Conference

M. LaNeve Sept. 4, 20082008 Credit Suisse Automotive Conference

23© 2008 General Motors Corporation. All Rights Reserved

Customer Satisfaction For All Eight BrandsAbove Industry AverageCustomer Satisfaction For All Eight BrandsAbove Industry Average

Page 24: Gm Events & Presentations Credit Suisse Group Annual Global Automotive Conference

M. LaNeve Sept. 4, 20082008 Credit Suisse Automotive Conference

24© 2008 General Motors Corporation. All Rights Reserved

GM Go-To-Market PlanGM Go-To-Market Plan

Page 25: Gm Events & Presentations Credit Suisse Group Annual Global Automotive Conference

M. LaNeve Sept. 4, 20082008 Credit Suisse Automotive Conference

25© 2008 General Motors Corporation. All Rights Reserved

Evolution of Buick, Pontiac, GMC to a BPG ChannelEvolution of Buick, Pontiac, GMC to a BPG Channel

2005 20082005 2008

7 3

8 6

9 7

24 16

7 3

8 6

9 7

24 16

The combined BPG channel includes 16 models that cover 80% of the market segment resulting in an improved profit opportunity for GM and our dealers at lower investmentThe combined BPG channel includes 16 models that cover 80% of the market segment resulting in an improved profit opportunity for GM and our dealers at lower investment

(Number of Product Entries)(Number of Product Entries)

Page 26: Gm Events & Presentations Credit Suisse Group Annual Global Automotive Conference

M. LaNeve Sept. 4, 20082008 Credit Suisse Automotive Conference

26© 2008 General Motors Corporation. All Rights Reserved

U.S. Action Plans for Balance of 2008U.S. Action Plans for Balance of 2008Continue to improve car and crossover market shareand profitability

Shift marketing spend to growing segments, driven by fuel efficiency (Cobalt, HHR, Malibu, VUE, G6, etc.)

Defend trucks through loyalty programs, targeted conquest,and trade assistance

Utilize 100 Year Anniversary, Employee Discount Sale as big merchandising event to smooth transition away from lease in Q3

Implement focused incentive plans to address customer concerns and ongoing leasing issues in Q4

Last 90 days at sub-13M market likely represents the low point of the market downturn

– Plan business at 14M, maintain ability to leverage inevitablemarket recovery

Continue to improve car and crossover market shareand profitability

Shift marketing spend to growing segments, driven by fuel efficiency (Cobalt, HHR, Malibu, VUE, G6, etc.)

Defend trucks through loyalty programs, targeted conquest,and trade assistance

Utilize 100 Year Anniversary, Employee Discount Sale as big merchandising event to smooth transition away from lease in Q3

Implement focused incentive plans to address customer concerns and ongoing leasing issues in Q4

Last 90 days at sub-13M market likely represents the low point of the market downturn

– Plan business at 14M, maintain ability to leverage inevitablemarket recovery

Page 27: Gm Events & Presentations Credit Suisse Group Annual Global Automotive Conference

M. LaNeve Sept. 4, 20082008 Credit Suisse Automotive Conference

27© 2008 General Motors Corporation. All Rights Reserved


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