Gm Events & Presentations Canadian Dealer Conference


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Gm Events & Presentations Canadian Dealer Conference

  1. 1. 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.
  2. 2. Ray G. Young Executive Vice President & CFO
  3. 3. 2008 Earnings $ Billions 2008 Q2 2008 CYTD Total Reported Net Income (15.5) (18.7) GMNA Restructuring (4.4) (4.6) Delphi (2.8) (3.5) GMAC Impairment (1.3) (2.8) Other (0.7) (1.1) Total Special Items (9.2) (12.0) Total Adjusted Net Income (6.3) (6.7) Memo: Figures have been adjusted for rounding
  4. 4. 2008 Adjusted Earnings $ Billions 2008 Q2 2008 CYTD GMNA (4.4) (5.0) Other Regions 0.4 1.4 Total Automotive EBT (4.0) (3.6) GMAC (1.2) (1.5) Corp./Other (0.8) (1.0) Taxes (0.3) (0.6) Total Adjusted Net Income (6.3) (6.7) EBT = Earnings before taxes
  5. 5. GMNA Adjusted EBT – YTD 2008 vs. YTD 2007 $ Billions – Continuing Operations Only YTD 2007 Earnings Before Tax $(0.2) Volume/Mix (4.7) Price (2.2) Net Material 0.3 Pension/OPEB/Manufacturing 1.1 Hedging/Exchange/Other 0.7 2008 Earnings Before Tax $(5.0) 2007 excludes results from Allison Transmission, recorded as Discontinued Operations
  6. 6. 2008 Cash Change $ Billions Cash 12/31/2007 27.3 Operating Cash Flow (7.2) Other 0.9 2008 H1 Cash Burn (6.3) Cash 06/30/2008 21.0 Memo: Cash includes readily available VEBA assets
  7. 7. What Happened?
  8. 8. North American Industry Volume ’07 Actual H1 ’08 Mil Units F/(U) H1 ’07 United States 16.5 (10.4)% Canada 1.7 2.3% Mexico 1.1 (0.6)% Other 0.3 5.8% Total 19.6 (8.5)%
  9. 9. U.S. Light Vehicle Industry SAAR Source: GM Global Market and Industry Analysis
  10. 10. U.S. Industry Retail Mix Source: GM Global Market and Industry Analysis
  11. 11. What Are We Doing?
  12. 12. Summary Of Actions 2007 UAW retiree healthcare agreement (VEBA) Introduction of two-tiered wage structure Significant hourly headcount reductions Approximately 53K related to 2006 and 2008 SAP programs Capacity reductions Installed production capacity is expected to reduce 1.8 million units from the beginning of CY 2005 through year-end 2010 Installed production capacity realigned to >60% cars/crossovers by 2010
  13. 13. GMNA Structural Cost Outlook Operating actions in North America, combined with benefits of 2007 UAW agreement, are targeted to reduce structural costs by $6-7B from 2007 to 2010 Memo: ($ billions) Corp Sector/ Legacy Structural Cost 1.2 1.1 1.0 1.0 1.0 0.1 Note: Structural cost outlook based on negative plan amendment accounting for UAW VEBA
  14. 14. 2008 U.S. Industry vs. GM Liquidity Plan CY 2008 Liquidity Plan Outlook 2008-2009 Light Vehicle Volume (SAAR) Low 14 Mil 14.0 mil Fullsize Pickup % of Industry ~11.0% 10.0% Fullsize SUV % of Industry ~3.0% 2.3-2.7% Oil Price per bbl ~$120 $120-150 GM Market Share ~21% ~21%
  15. 15. GM Liquidity Plan Operation and Other Actions $ Billions 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 ~$15.0B
  16. 16. What Is Happening Outside GMNA?
  17. 17. 2008 First Half Results – Rest of World Industry Market EBT SAAR (Mil) Share ($Mil) GME 23.5 9.5% 297 GMLAAM 7.9 17.5% 962 GMAP 22.5 7.0% 221 Total 1,480
  18. 18. 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 Source: GM Global Market and Industry Analysis
  19. 19. Running GM Globally
  20. 20. One Global Company Building functional and technical excellence GM manages its key functional areas (e.g. engineering, manufacturing, supply chain) globally Leveraging products, powertrains, supplier base, and technical expertise globally Global product development a key enabler to utilizing high volume architectures around the world Global scope/scale yields engineering and sourcing efficiencies Flow existing resources to support greatest, highest return growth opportunities
  21. 21. Implications for Canada
  22. 22. Canada Industry Mix Note: Canada mid-lux crossover has been included as truck Source: GM Global Market and Industry Analysis
  23. 23. Shifting U.S. Mix The escalation of fuel prices has lead to a shift in U.S. market preferences to smaller more fuel efficient vehicles that have traditionally been more important in Canadian markets As the U.S. portfolio transitions to a mix more comparable to Canada, increased volume and investment in key Canadian segments will result To date, GM has responded by positioning 18 of the next 19 U.S. launches in car or crossover segments of which 18 will be available in Canada
  24. 24. Closing Remarks
  25. 25. 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. launches, and 18 of next 19 Success of recent launches such as CTS and Malibu provide confidence in product plan Reinventing the automobile and GM Committed to providing leadership in development of alternate fuel propulsion systems Targeting fuel economy leadership in every class of vehicle we introduce Restructuring Business for Sustainable Profit and Growth