GM 2014 10K

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http://edgar.sec.gov/Archives/edgar/data/1467858/000146785815000036/gm201410k.htm 1/234

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TableofContents

UNITEDSTATESSECURITIESANDEXCHANGECOMMISSIONWashington,DC205491004

Form10K

ANNUALREPORTPURSUANTTOSECTION13OR15(d)OFTHESECURITIESEXCHANGEACTOF1934

ForthefiscalyearendedDecember31,2014

OR

TRANSITIONREPORTPURSUANTTOSECTION13OR15(d)OFTHESECURITIESEXCHANGEACTOF1934

Forthetransitionperiodfromto

Commissionfilenumber00134960

GENERALMOTORSCOMPANY(ExactNameofRegistrantasSpecifiedinitsCharter)

STATEOFDELAWARE 270756180(StateorotherjurisdictionofIncorporationorOrganization)

(I.R.S.EmployerIdentificationNo.)

300RenaissanceCenter,Detroit,Michigan 482653000(AddressofPrincipalExecutiveOffices) (ZipCode)

Registrantstelephonenumber,includingareacode(313)5565000

SecuritiesregisteredpursuanttoSection12(b)oftheAct:

TitleofEachClass NameofEachExchangeonwhichRegisteredCommonStock NewYorkStockExchange/TorontoStockExchange

Warrants(expiringDecember31,2015) NewYorkStockExchangeWarrants(expiringJuly10,2016) NewYorkStockExchangeWarrants(expiringJuly10,2019) NewYorkStockExchange

SecuritiesregisteredpursuanttoSection12(g)oftheAct:None

Indicatebycheckmarkiftheregistrantisawellknownseasonedissuer,asdefinedinRule405oftheSecuritiesAct.YesNo

IndicatebycheckmarkiftheregistrantisnotrequiredtofilereportspursuanttoSection13orSection15(d)oftheAct.YesNo

Indicatebycheckmarkwhethertheregistrant(1)hasfiledallreportsrequiredtobefiledbySection13or15(d)oftheSecuritiesExchangeActof1934during the preceding 12months (or for such shorter period that the registrantwas required to file such reports), and (2) has been subject to such filingrequirementsforthepast90days.YesNo

Indicate by check mark whether the registrant has submitted electronically and posted on its companyWeb site, if any, every Interactive Data FilerequiredtobesubmittedandpostedpursuanttoRule405ofRegulationST(232.405ofthischapter)duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtosubmitandpostsuchfiles).YesNo

IndicatebycheckmarkifdisclosureofdelinquentfilerspursuanttoItem405ofRegulationSKisnotcontainedherein,andwillnotbecontained,tothebestofregistrantsknowledge,indefinitiveproxyorinformationstatementsincorporatedbyreferenceinPartIIIofthisForm10KoranyamendmenttothisForm10K.

Indicatebycheckmarkwhethertheregistrantisalargeacceleratedfiler,anacceleratedfiler,anonacceleratedfiler,orasmallerreportingcompany.Seedefinitionoflargeacceleratedfiler,acceleratedfilerandsmallreportingcompanyinRule12b2oftheExchangeAct.(Checkone):

LargeacceleratedfilerAcceleratedfilerNonacceleratedfilerSmallerreportingcompany

Donotcheckifsmallerreportingcompany

Indicatebycheckmarkwhethertheregistrantisashellcompany(asdefinedinRule12b2oftheExchangeAct).YesNo

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Theaggregatemarketvalueofthevotingstockheldbynonaffiliatesoftheregistrant(assumingonlyforpurposesofthiscomputationthatdirectorsandexecutiveofficersmaybeaffiliates)wasapproximately$58.2billiononJune30,2014.

AsofJanuary28,2015thenumberofsharesoutstandingofcommonstockwas1,610,365,961shares.

DOCUMENTSINCORPORATEDBYREFERENCEPortionsof theregistrant'sdefinitiveProxyStatementrelated to theAnnualStockholdersMeeting tobefiledsubsequentlyare incorporatedbyreference

intoPartIIIofthisForm10K.

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INDEX

PagePARTI

Item1. Business 1Item1A. RiskFactors 13Item1B. UnresolvedStaffComments 18Item2. Properties 18Item3. LegalProceedings 19Item4. MineSafetyDisclosures 19

PARTIIItem5. MarketforRegistrantsCommonEquity,RelatedStockholderMattersandIssuerPurchasesofEquity

Securities 20Item6. SelectedFinancialData 21Item7. ManagementsDiscussionandAnalysisofFinancialConditionandResultsofOperations 21Item7A. QuantitativeandQualitativeDisclosuresAboutMarketRisk 49Item8. FinancialStatementsandSupplementaryData 55 ConsolidatedIncomeStatements 55 ConsolidatedStatementsofComprehensiveIncome 56 ConsolidatedBalanceSheets 57 ConsolidatedStatementsofCashFlows 58 ConsolidatedStatementsofEquity 59 NotestoConsolidatedFinancialStatements 60 Note1. NatureofOperationsandBasisofPresentation 60 Note2. SignificantAccountingPolicies 61 Note3. AcquisitionofBusinesses 68 Note4. MarketableSecurities 69 Note5. GMFinancialReceivables,net 71 Note6. Inventories 73 Note7. EquipmentonOperatingLeases,net 73 Note8. EquityinNetAssetsofNonconsolidatedAffiliates 74 Note9. Property,net 76 Note10. Goodwill 78 Note11. IntangibleAssets,net 79 Note12. VariableInterestEntities 80 Note13. AccruedLiabilitiesandOtherLiabilities 81 Note14. ShortTermandLongTermDebt 82 Note15. PensionsandOtherPostretirementBenefits 85 Note16. DerivativeFinancialInstruments 94 Note17. CommitmentsandContingencies 95 Note18. IncomeTaxes 101 Note19. RestructuringandOtherInitiatives 104 Note20. InterestIncomeandOtherNonOperatingIncome,net 105 Note21. StockholdersEquityandNoncontrollingInterests 106 Note22. EarningsPerShare 108 Note23. StockIncentivePlans 110

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Note24. SupplementaryQuarterlyFinancialInformation(Unaudited) 111

Note25. SegmentReporting 112

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Page Note26. SupplementalInformationfortheConsolidatedStatementsofCashFlows 115Item9. ChangesinandDisagreementswithAccountantsonAccountingandFinancialDisclosure 115Item9A. ControlsandProcedures 116Item9B. OtherInformation 116

PARTIIIItem10. Directors,ExecutiveOfficersandCorporateGovernance 117Item11. ExecutiveCompensation 117Item12. SecurityOwnershipofCertainBeneficialOwnersandManagementandRelatedStockholderMatters 117Item13. CertainRelationshipsandRelatedTransactionsandDirectorIndependence 117Item14. PrincipalAccountantFeesandServices 117

PARTIVItem15. Exhibits 118Signatures 121

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TableofContentsGENERALMOTORSCOMPANYANDSUBSIDIARIES

PARTI

Item1.Business

GeneralMotorsCompany(sometimesreferredtoaswe,our,us,ourselves,theCompany,GeneralMotors,orGM")was incorporatedasaDelawarecorporation in2009.Wedesign,buildandsellcars, trucksandautomobilepartsworldwide. We also provide automotive financing services through General Motors Financial Company, Inc. (GMFinancial).

Automotive

Ourautomotiveoperationsmeetthedemandsofourcustomersthroughourfourautomotivesegments:GMNorthAmerica(GMNA),GMEurope(GME),GMInternationalOperations(GMIO)andGMSouthAmerica(GMSA).Ourtotalworldwideretailvehiclesaleswere9.9million,9.7millionand9.3millionincludingsalesbyjointventuresonatotalvehiclebasis,notbasedonthepercentageownershipinthejointventureintheyearsendedDecember31,2014,2013and2012.

GMNA primarily meets the demands of customers in North America with vehicles developed, manufactured and/ormarketed under theBuick,Cadillac,Chevrolet andGMCbrands.The demands of customers outsideNorthAmerica areprimarilymetwithvehiclesdeveloped,manufacturedand/ormarketedundertheBuick,Cadillac,Chevrolet,GMC,Holden,OpelandVauxhallbrands.Wealsohaveequityownershipstakesdirectlyorindirectlyinentitiesthroughvariousregionalsubsidiaries,primarilyinAsia.Thesecompaniesdesign,manufactureandmarketvehiclesundertheAlpheon,Baojun,Buick,Cadillac,Chevrolet,JiefangandWulingbrands.

Inadditiontotheproductsweselltoourdealersforconsumerretailsales,wealsosellcarsandtruckstofleetcustomers,includingdailyrentalcarcompanies,commercialfleetcustomers,leasingcompaniesandgovernments.Wesellvehiclestofleetcustomersdirectlyorthroughournetworkofdealers.Ourretailandfleetcustomerscanobtainawiderangeofaftersalevehicle services and products through our dealer network, such as maintenance, light repairs, collision repairs, vehicleaccessoriesandextendedservicewarranties.

CompetitivePosition

Theglobalautomotiveindustryishighlycompetitive.Theprincipalfactorsthatdetermineconsumervehiclepreferencesin themarkets inwhichwe operate include price, quality, available options, style, safety, reliability, fuel economy andfunctionality.Marketleadershipinindividualcountriesinwhichwecompetevarieswidely.

VehicleSales

Wepresentbothwholesaleandretailvehiclesalesdatatoassistintheanalysisofourrevenueandourmarketshare.Wedonotcurrentlyexportvehicles toCuba,Iran,NorthKorea,SudanorSyria.Accordingly, thesecountriesareexcludedfromindustrysalesdatainthetablesbelowandcorrespondingcalculationsofourmarketshare.

WholesaleVehicleSales

Wholesalevehiclesalesdata,whichrepresentssalesdirectlytodealersandothers,isthemeasurethatcorrelatesvehiclesales to our revenue from the sale of vehicles, which is the largest component of automotive Net sales and revenue.Wholesalevehiclesalesexcludevehiclesproducedbyunconsolidatedjointventures.IntheyearendedDecember31,2014,52.9%ofourwholesalevehiclesalesvolumewasgeneratedoutsidetheU.S.Thefollowingtablesummarizestotalwholesalevehiclesalesofnewvehiclesbyautomotivesegment(vehiclesinthousands):

YearsendedDecember31, 2014 2013 2012GMNA 3,320 55.0% 3,276 51.1% 3,207 49.8%

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GME 1,172 19.4% 1,163 18.1% 1,231 19.1%GMIO 655 10.9% 921 14.4% 957 14.8%GMSA 886 14.7% 1,053 16.4% 1,050 16.3%Worldwide 6,033 100.0% 6,413 100.0% 6,445 100.0%

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RetailVehicleSales

Retailvehiclesalesdata,whichrepresentsestimatedsalestotheendcustomer,includingfleets,doesnotcorrelatedirectlytotherevenuewerecognizeduringtheperiod.However,retailvehiclesalesdataisindicativeoftheunderlyingdemandforourvehicles,isthebasisforourmarketshare,andisbaseduponthegoodfaithestimatesofmanagement.Retailvehiclesalesdataincludessalesbyjointventuresonatotalvehiclebasis,notbasedonthepercentageofownershipinthejointventure.Certain jointventureagreements inChinaallowfor thecontractual right to reportvehicle salesofnonGMtrademarkedvehiclesbythosejointventures.Marketshareinformationisbasedprimarilyonretailvehiclesalesvolume,butestimatesmaybeusedwhereretailvehiclesalesvolumeisnotavailable.

Incountrieswhereendcustomerdataisnotreadilyavailableotherdatasources,suchaswholesaleorforecastvolumes,areusedtoestimateretailvehiclesales.Certainfleetsalesthatareaccountedforasoperatingleasesareincludedinretailvehiclesalesat the timeofdelivery to thedaily rentalcarcompanies.The following table summarizes total industry retail salesvolume,orestimatedsalesvolumewhereretailsalesvolumeisnotavailable,ofnewvehiclesandtherelatedcompetitivepositionbygeographicregion(vehiclesinthousands):

YearsEndedDecember31,

2014 2013 2012

Industry GM GMasa%ofIndustry Industry GM

GMasa%ofIndustry Industry GM

GMasa%ofIndustry

NorthAmerica UnitedStates 16,858 2,935 17.4% 15,894 2,786 17.5% 14,794 2,596 17.5%Other 3,379 478 14.1% 3,201 448 14.0% 3,041 423 13.9%TotalNorthAmerica 20,237 3,413 16.9% 19,095 3,234 16.9% 17,835 3,019 16.9%Europe Germany 3,357 237 7.1% 3,258 242 7.4% 3,394 254 7.5%UnitedKingdom 2,845 305 10.7% 2,597 301 11.6% 2,335 272 11.7%Russia 2,541 189 7.4% 2,834 258 9.1% 3,006 288 9.6%Other 9,988 525 5.3% 9,715 592 6.1% 9,878 655 6.6%TotalEurope 18,731 1,256 6.7% 18,404 1,393 7.6% 18,613 1,469 7.9%Asia/Pacific,MiddleEastandAfrica China 23,861 3,540 14.8% 22,202 3,160 14.2% 19,394 2,836 14.6%Other 19,119 838 4.4% 19,117 898 4.7% 19,113 919 4.8%TotalAsia/Pacific,MiddleEastandAfrica 42,980 4,378 10.2% 41,319 4,058 9.8% 38,507 3,755 9.7%

SouthAmerica Brazil 3,498 579 16.6% 3,767 650 17.3% 3,802 643 16.9%Other 1,803 299 16.6% 2,173 387 17.8% 2,044 408 20.0%TotalSouthAmerica 5,301 878 16.6% 5,940 1,037 17.5% 5,846 1,051 18.0%TotalWorldwide 87,249 9,925 11.4% 84,758 9,722 11.5% 80,801 9,294 11.5%UnitedStates Cars 7,688 1,085 14.1% 7,556 1,067 14.1% 7,174 1,031 14.4%Trucks 4,753 1,113 23.4% 4,247 998 23.5% 3,946 933 23.7%Crossovers 4,417 737 16.7% 4,091 721 17.6% 3,674 632 17.2%TotalU.S. 16,858 2,935 17.4% 15,894 2,786 17.5% 14,794 2,596 17.5%

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ThefollowingtablesummarizesthevehiclesalesatourChinajointventures(ChinaJVs)thatareincludedinourretailvehiclesales(vehiclesinthousands):

YearsEndedDecember31, 2014 2013 2012SAICGeneralMotorsSalesCo.,Ltd.(SGMS) 1,710 1,515 1,331SAICGMWulingAutomobileCo.,Ltd.andFAWGMLightDutyCommercialVehicleCo.,Ltd. 1,830 1,644 1,501

IntheyearendedDecember31,2014weestimatewehadthelargestmarketshareinNorthAmericaandSouthAmerica,thenumbersixmarketshareinEuropeandthenumbertwomarketshareintheAsia/Pacific,MiddleEastandAfricaregion.IntheyearendedDecember31,2014theAsia/Pacific,MiddleEastandAfricaregionwasourlargestregionbyretailvehiclesalesvolumeandrepresented44.1%ofourglobalretailvehiclesales.

Ourretailvehiclesalesvolumes in theyearendedDecember31,2014grewat a slightly slowerpace than theoverallindustry,resultingina0.1%industrysharedecline.Allnewandrefreshedvehiclesgainedsharein2014,butwereoutpacedby losses on vehicles thatwere late in their lifecycle, largely due to an aggressive competitive environment.Our retailvehicle sales volumes in the year ended December 31, 2013 reflect continued recovery in the U.S. despite an intensecompetitiveenvironment.Growthwaslargelyattributedtoneworrefreshedmodels.OurretailvehiclesalesvolumesintheyearendedDecember31,2012reflectanintensifiedcompetitiveenvironmentintheU.S.,includingaggressivecompetitorpricingandmediaspending,aswellaskeycompetitornewproductlaunches.

FleetSalesandDeliveries

Thesalesandmarketsharedataprovidedpreviouslyincludesbothretailandfleetvehiclesales.Certainfleettransactions,particularlydailyrental,aregenerallylessprofitablethanretailsales.AsignificantportionofthesalestodailyrentalcarcompaniesarerecordedasoperatingleasesunderU.S.GAAPwithnorecognitionofrevenueatthedateofinitialdeliverydue to guaranteed repurchase obligations. The following table summarizes estimated fleet sales and those sales as apercentageoftotalretailvehiclesales(vehiclesinthousands):

YearsEndedDecember31, 2014 2013 2012GMNA 814 758 775GME 505 490 500GMIO 414 415 408GMSA 176 184 190Totalfleetsales 1,909 1,847 1,873

Fleetsalesasapercentageoftotalretailvehiclesales 19.2% 19.0% 20.2%

ThefollowingtablesummarizesU.S.fleetsalesandthosesalesasapercentageoftotalU.S.retailvehiclesales(vehiclesinthousands):

YearsEndedDecember31, 2014 2013 2012Dailyrentalsales 450 439 431Otherfleetsales 254 217 242Totalfleetsales 704 656 673

FleetsalesasapercentageoftotalU.S.retailvehiclesales

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Cars 29.5% 26.4% 30.6%Trucks 21.8% 24.2% 25.3%Crossovers 19.1% 18.6% 19.2%Totalvehicles 24.0% 23.6% 25.9%

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ProductPricing

Severalmethodsareusedtopromoteourproducts,includingtheuseofdealer,retailandfleetincentivessuchascustomerrebates and finance rate support.The levelof incentives isdependent in largepartupon the levelof competition in themarkets in which we operate and the level of demand for our products. In 2015 we will continue to price vehiclescompetitively,includingofferingstrategicandtacticalincentivesasrequired.Webelievethisstrategy,coupledwithsoundinventorymanagement,willcontinuetostrengthenthereputationofourbrandsandresultincompetitiveprices.

CyclicalNatureofBusiness

Retailsalesarecyclicalandproductionvariesfrommonthtomonth.Vehiclemodelchangeoversoccur throughout theyearasaresultofnewmarketentries.Themarketforvehiclesdependsongeneraleconomicconditions,creditavailabilityandconsumerspending.

RelationshipwithDealers

Wemarketvehiclesworldwideprimarilythroughanetworkofindependentauthorizedretaildealers.Theseoutletsincludedistributors,dealersandauthorizedsales,serviceandpartsoutlets.

Thefollowingtablesummarizesthenumberofauthorizeddealerships:

December31,2014 December31,2013 December31,2012GMNA 4,908 4,946 5,015GME 6,633 7,087 7,574GMIO 7,699 7,472 6,915GMSA 1,272 1,201 1,250Totalworldwide 20,512 20,706 20,754

Weandour jointventuresenter intoacontractwitheachauthorizeddealeragreeing tosell to thedealeroneormorespecifiedproductlinesatwholesalepricesandgrantingthedealertherighttosellthosevehiclestoretailcustomersfromanapprovedlocation.OurdealersoftenoffermorethanoneGMbrandatasingledealershipinanumberofourmarketsinordertoenhancedealerprofitability.Authorizeddealersofferparts,accessories,serviceandrepairsforGMvehiclesintheproductlines that theysellusingGMpartsandaccessories.Ourdealersareauthorized toserviceGMvehiclesunderour limitedwarrantyprogramandthoserepairsaretobemadeonlywithGMparts.Ourdealersgenerallyprovidetheircustomersaccesstocreditorleasefinancing,vehicleinsuranceandextendedservicecontractsprovidedbyGMFinancial,AllyFinancial,Inc.(AllyFinancial)andotherfinancialinstitutions.

ThequalityofGMdealershipsandourrelationshipwithourdealersanddistributorsarecriticaltooursuccessasdealersmaintain the primary sales and service interfacewith the end consumer of our products. In addition to the terms of ourcontractswithourdealersweareregulatedbyvariouscountryandstatefranchiselawsthatmaysupersedethosecontractualtermsandimposespecificregulatoryrequirementsandstandardsforinitiatingdealernetworkchanges,pursuingterminationsforcauseandothercontractualmatters.

Research,ProductDevelopmentandIntellectualProperty

Costsforresearch,manufacturingengineering,productengineeringanddesignanddevelopmentactivitiesrelateprimarilytodevelopingnewproductsor servicesor improvingexistingproductsor services includingactivities related tovehicleemissionscontrol,improvedfueleconomyandthesafetyofdriversandpassengers.IntheyearsendedDecember31,2014,2013and2012researchanddevelopmentexpenseswere$7.4billion,$7.2billionand$7.4billion.

Oneofourprioritiesforresearchistocontinuetodevelopandadvanceouralternativepropulsionstrategybecauseenergy

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diversity and environmental leadership are critical elements of our overall business strategy.Our objective is to be therecognizedindustryleaderinfuelefficiencythroughthedevelopmentofawidevarietyoftechnologiestoreducepetroleumconsumption.

FuelEfficiency

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Wearefullycommittedtoimprovingfuelefficiencyandmeetingregulatorystandardsthroughacombinationofstrategiesincluding:(1)extensivetechnologyimprovementstoconventionalpowertrains(2)increaseduseofsmallerdisplacementengines and improved and advanced automatic transmissions and (3) vehicle improvements including increased use oflighter,frontwheeldrivearchitectures.

AlternativeFuelVehicles

We believe alternative fuels offer the greatest nearterm potential to reduce liquid petroleum consumption in thetransportationsector.Leveragingexperienceandcapabilitydevelopedaroundthesetechnologiesinourglobaloperationswe continue to develop FlexFuel vehicles that can run on gasolineethanol blend fuels aswell as vehicles that run oncompressednaturalgas(CNG)andliquefiedpetroleumgas(LPG).

Wecurrentlyoffer13FlexFuelvehiclesintheU.S.forthe2015modelyearplusanadditionalfourmodelstofleetandcommercialcustomerscapableofoperatingongasoline,E85ethanoloranycombinationofthetwo.WecontinuetostudythefutureroleFlexFuelvehiclesmayplayintheU.S.inlightofrecentregulatorydevelopmentsandtherateofdevelopmentoftherefuelinginfrastructure.InBrazilasubstantialmajorityofvehiclessoldwereFlexFuelvehiclescapableofrunningon100%ethanolblends.WealsomarketFlexFuelvehiclesinAustralia,Thailandandotherglobalmarketswherebiofuelshaveemergedinthemarketplace.

WeproduceCNGbifuelcapablevehiclesinEuropesuchastheOpelZafiraandintheU.S.withtheChevroletExpressandGMCSavanafullsizevans(fleetandcommercialcustomers)andtheChevroletSilveradoandGMCSierra2500HDpickup trucks (commercial and retail customers) that are capable of switching between gasoline or diesel andCNG. InadditionwerecentlylaunchedtheCNGbifuelChevroletImpalafullsizesedantobothfleetandretailmarketsintheU.S.WeofferLPGcapablevehiclesgloballyinselectmarketsreflectingtheinfrastructure,regulatoryfocusandnaturalresourceavailabilityofthemarketsinwhichtheyaresold.

Wesupportthedevelopmentofbiodieselblendfuels,whicharealternativedieselfuelsproducedfromrenewablesources,andweprovidebiodieselcapabilitiesinothermarketsreflectingtheavailabilityofbiodieselblendfuels.

Hybrid,PlugIn,ExtendedRangeandBatteryElectricVehicles

We are investing significantly inmultiple technologies offering increasing levels of vehicle electrification includingeAssist,pluginhybrid,extendedrangeandbatteryelectricvehicles.WecurrentlyoffersevenmodelsintheU.S.featuringsomeformofelectrificationandcontinuetodeveloppluginhybridelectricvehicletechnology(PHEV)andextendedrangeelectric vehicles such as theChevroletVolt,OpelAmpera andCadillacELR. In 2014we introduced theCadillacELRextendedrangeluxurycoupeandintroducedasecondgenerationChevroletVoltatthe2015NorthAmericanInternationalAuto Show. The nextgeneration Chevrolet Volt symbolizes our continued commitment to expansion of vehicleelectrificationandthedevelopmentofaccompanyingelectrificationtechnologiesincludingbatterysystems,electricmotorsandadvancedelectroniccontrols.

HydrogenFuelCellTechnology

Aspartofourlongtermstrategytoreducepetroleumconsumptionandgreenhousegasemissionswearecommittedtocontinuing development of our hydrogen fuel cell technology. Our Chevrolet Equinox fuel cell electric vehicledemonstrationprograms,suchasProjectDriveway,haveaccumulatedmorethan3millionmilesofrealworlddrivingbyconsumers,celebrities,businesspartnersandgovernmentagencies.Theseprogramsarehelpingus identifyconsumerandinfrastructureneedstounderstandthebusinesscaseforpotentialproductionofthistechnology.

GMandHondaenteredintoalongtermagreementtocodevelopanextgenerationfuelcellsystemandhydrogenstoragetechnologies,aimingforthe2020timeframe.Thecollaborationexpectstosucceedbysharingexpertise,economiesofscaleandcommonsourcingstrategiesandbuildsuponGM'sandHondasstrengthsasleadersinhydrogenfuelcelltechnology.

OnStar,LLC

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OnStar,LLC(OnStar)isawhollyownedsubsidiaryofGMservingmorethan6.8millionsubscribersintheU.S.,Canada,Mexicoand,throughajointventure,China,withexpectationstoexpandtoEurope.OnStarisaproviderofconnectedsafety,securityandmobilitysolutionsandadvancedinformationtechnologyandisavailableonthemajorityofour2015modelyearvehicles.OnStar'skeyservicesincludeautomaticcrashresponse,stolenvehicleassistance,remotedoorunlock,turnbyturnnavigation,vehiclediagnostics,handsfreecallingand4GLTEwirelessconnectivity.

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OnStarhasdevelopedasystembasedonthefindingsofaCenterforDiseaseControlandPreventionexpertpanelwhichallowsOnStaradvisorstoalertfirstresponderswhenavehiclecrashislikelytohavecausedseriousinjurytotheoccupants.OnStar alsooffers amobile application toprovide subscriberswithuptodatevehicle information such asoil level, tirepressureandfuellevelaswellasprovidingremotestart,remotedoorunlockandnavigationservicesfromamobilephone.

ProductDevelopment

Ourvehicledevelopmentactivitiesareintegratedintoasingleglobalorganization.Thisstrategybuildsonearliereffortstoconsolidateandstandardizeourapproachtovehicledevelopment.Wedefineaglobalarchitectureasaspecificrangeofperformancecharacteristicsanddimensionssupportingacommonsetofmajorunderbodycomponentsandsubsystemswithcommoninterfaces.

Acentralizedorganizationisresponsibleformanyofthenonvisiblepartsofthevehiclesuchassteering,suspension,thebrakesystem,theheating,ventilationandairconditioningsystemandtheelectricalsystem.Thisteamworksverycloselywiththeglobalarchitecturedevelopmentteamsaroundtheworld,whoareresponsibleforcomponentsthatareuniquetoeachbrand,suchasexteriorand interiordesign, tuningof thevehicle tomeet thebrandcharacter requirementsandfinalvalidationtomeetapplicablegovernmentrequirements.

IntellectualProperty

Wegenerateandholdasignificantnumberofpatentsinanumberofcountriesinconnectionwiththeoperationofourbusiness.Whilenoneofthesepatentsbyitselfismaterialtoourbusinessasawhole,thesepatentsareveryimportanttoouroperations and continued technological development.We hold a number of trademarks and servicemarks that are veryimportanttoouridentityandrecognitioninthemarketplace.

RawMaterials,ServicesandSupplies

We purchase a wide variety of raw materials, parts, supplies, energy, freight, transportation and other services fromnumeroussuppliersforuseinthemanufactureofourproducts.Therawmaterialsareprimarilycomposedofsteel,aluminum,resins, copper, leadandplatinumgroupmetals.Wehavenot experiencedany significant shortagesof rawmaterials andnormally do not carry substantial inventories of such rawmaterials in excess of levels reasonably required tomeet ourproductionrequirements.

Insomeinstances,wepurchasesystems,components,partsandsuppliesfromasinglesourceandmaybeatanincreasedriskforsupplydisruptions.Theinabilityorunwillingnessofthesesourcestosupplyuswithpartsandsuppliescouldhaveamaterial adverse effect on our production capacity. Total purchases from our two largest suppliers have ranged fromapproximately10%to11%ofourtotalpurchasesfrom2012to2014.

EnvironmentalandRegulatoryMatters

AutomotiveEmissionsControl

Wearesubjecttolawsandregulationsthatrequireustocontrolautomotiveemissions,includingvehicleexhaustemissionstandards, vehicle evaporative emission standards and onboard diagnostic (OBD) system requirements. AdvancedOBDsystemsareusedtoidentifyanddiagnoseproblemswithemissioncontrolsystems.ProblemsdetectedbytheOBDsystemmayincreasewarrantycostsandthechanceforrecall.EmissionandOBDrequirementsbecomemorechallengingeachyearasvehiclesmustmeetloweremissionstandardsandnewdiagnosticsarerequiredandwillcontinuetobecomeevenmorestringentthroughouttheworld.

U.S.andCanada

TheU.S.federalgovernmentimposesstringentemissioncontrolrequirementsonvehiclessoldintheU.S.andadditional

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requirementsareimposedbyvariousstategovernments.Canadasfederalgovernmentvehiclecriteriaemissionrequirementsaregenerallyalignedwith theU.S. federal requirements.These requirements includevehicleexhaustemissionstandards,vehicleevaporativeemissionstandardsandOBDsystemrequirements.EachmodelyearwemustobtaincertificationforeachtestgroupthatourvehicleswillmeetemissionrequirementsfromtheU.S.EnvironmentalProtectionAgency(EPA)beforewecansellvehiclesintheU.S.andCanadaandfromtheCaliforniaAirResourcesBoard(CARB)beforewecansellvehiclesinCaliforniaandotherstatesthathaveadoptedtheCaliforniaemissionsrequirements.

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WhilewebelieveallourproductsareincompliancewithEPAandCARBcertificationrequirements,bothagencieshaveongoinginuseevaluationsofcomplianceforproductsfromallmanufacturers.Itispossiblethatweoreitheragencycouldidentifypotentialnoncompliance,whichcouldleadtosometypeoffieldactiontoremedytheissue.Testingincludespreproductiontestingofvehiclesaspartofcertificationandinusetestingofcustomervehiclesatspecifiedmileages.

CARBhasadopteditsnextroundofemissionrequirementswhichphaseinwiththe2015modelyear.Theserequirementsincludemorestringentexhaustemissionandevaporativeemissionstandardsincludinganincreaseinzeroemissionvehicles(ZEV)suchaselectricvehiclesorhydrogenfuelcellvehicles.CARBhasadopted2018modelyearandlaterrequirementsforincreasingvolumesofZEVstoachievegreenhousegasaswellascriteriapollutantemissionreductionstohelpachievethestate'slongtermgreenhousegasreductiongoals.TheEPAhasadoptedsimilarexhaustemissionandevaporativeemissionstandardswhichphaseinwiththe2017modelyear.Thesenewrequirementswillalsoincreasethetimeandmileageperiodsoverwhichmanufacturersareresponsibleforavehicle'semissionperformance.

TheCleanAirActpermitsstatesthathaveareaswithairqualitycomplianceissuestoadopttheCaliforniacarandlightdutytruckemissionstandardsinlieuofthefederalrequirements.Thirteenstatescurrentlyhavethesestandardsineffectand10ofthese13stateshaveadoptedtheZEVrequirements.

Europe

Emissions are regulated by two different entities: the European Commission (EC) and the United Nations EconomicCommissionforEurope(UNECE).TheECimposesharmonizedemissioncontrol requirementsonvehiclessold inall28EuropeanUnion(EU)MemberStatesandothercountriesapplyregulationsundertheframeworkoftheUNECE.WemustdemonstratethatvehicleswillmeetemissionrequirementsfromanapprovalauthoritybeforewecansellvehiclesintheEUMemberStates.Theregulatoryrequirementsincluderandomtestingofnewlyassembledvehiclesandamanufacturerinusesurveillanceprogram.EUandUNECErequirementsareequivalentintermsofstringencyandimplementation.

Anewlevelofexhaustemissionstandardsforcarsandlightdutytrucks,Euro5,waseffectivein2011.FutureEuropeanemissionstandardsfocusparticularlyonfurtherreducingemissionsfromdieselvehicles.TheEuro6emission levelswillbecomeeffectivein2017.Thenewrequirementswillrequireadditionaltechnologiesandfurtherincreasethecostofdieselengines,whichcurrentlycostmorethangasolineengines.TocomplywithEuro6standardsweexpectthatwewillneedtoimplement technologies identical to thosebeingdevelopedtomeetU.S.emissionstandards.These technologieswillputadditional cost pressures on the already challenging European market for small and midsize diesel vehicles. Gasolineenginesare alsoaffectedby thenew requirements.Themeasures forgasolinevehicles that require technology to reduceexhaustpollutantemissionswillhaveadverseeffectsonvehiclefueleconomywhichdrivesadditionaltechnologycosttomaintainfueleconomy.

Inthelongterm,notwithstandingthealreadylowvehicleemissionsinEurope,theECwillcontinuedevisingregulatoryrequirementsontheemissiontestcycle,realdrivingemission,lowtemperaturetesting,fuelevaporationandOBD.Wearecurrentlyincompliancewithallmaterialcomponentsoftheserequirementsorexpecttobeincompliancebytherequireddate.

China

ChinahasimplementedEuropeantypeChina4standardsnationallywithEuropeanOBDrequirementsnationwideforallnewlyregisteredvehicles.Beijing,ShanghaiandGuangzhoueachrequiredChina5standardsbytheendof2014fornewlyregisteredvehicles.Tianjin,HebeiProvince,thePearlRiverandtheYangtzeRiverdeltaregionsareeachexpectedtorequireChina5standardspriortonationwideimplementationofChina5in2017.TheBeijingmunicipalityiscurrentlyconsideringtheimplementationofaChinauniqueemissionstandardforChina6withthepotentialtocombineelementsofEuropeanandU.S.standardsasearlyas2017.Wearecurrentlyincompliancewithallmaterialcomponentsoftheserequirementsorexpecttobeincompliancebytherequireddate.

AutomotiveFuelEconomy

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U.S.

Corporate Average Fuel Economy (CAFE) reporting is required for three separate fleets: domestically produced cars,importedcarsandlightdutytrucks.Bothcarandlightdutytruckstandardswereestablishedusingtargetsforvariousvehiclesizes and vehiclemodel sales volumes. In 2015 our domestic car standard is estimated to be 34.8mpg, our import carstandardisestimated

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at 38.4mpg, andour lightduty truck standard is estimated to be 25.6mpg.Our current product plan is expected to becompliantwiththefederalCAFEprogramthroughthe2015modelyear.InadditiontofederalCAFEtheU.S.EPArequirescompliancewithgreenhousegasrequirementsthataresimilartotheCAFEprogram.Ourcurrentproductplanisexpectedtobecompliantwiththefederalgreenhousegasprogramthroughthe2015modelyear.CARBhasagreedthatcompliancewiththefederalprogramisdeemedtobecompliantwiththeCaliforniaprogramforthe2012through2016modelyears.

Europe

Legislation regulating fleet averageCO2 emissionswas implemented for passenger cars in 2012with full compliancerequired by 2015. Requirements must be met through the introduction of CO2 reducing technologies on conventionalenginesorultralowCO2vehiclessuchastheChevroletVoltandOpelAmpera.TheEUhasadoptedanevenmorestringentCO2regulationasof2020.Alongwiththepassengercartarget,theEUalsoadoptedanewfleetaveragetargetasof2020.WearedevelopingacomplianceplanbyadoptingoperationalCO2targetsforeachmarketentryinEurope.

Effectivein2012anECregulationrequiredlowrollingresistancetires, tirepressuremonitoringsystemsandgearshiftindicators.AnadditionalECregulationhasbeenadopted thatwill require labelingof tires fornoise, fuelefficiencyandrollingresistance,affectingvehiclesatthepointofsaleaswellasthesaleoftiresintheaftermarket.

China

China has both an individual vehicle passfail type approval requirement based onPhase 2 standards and a fleet fuelconsumption requirementbasedonPhase3 standardsbasedonvehicle curbweight for the2012 through2015calendaryears.Implementationbeganin2012withfullcomplianceto6.9L/100kmrequiredby2015.Chinahascontinuedsubsidiesforfuelefficientvehicles,pluginhybrid,batteryelectricandfuelcellvehicles.ChinaisnowworkingonamoreaggressivePhase4fleetfuelconsumptionstandardthatisexpectedtoapplybeginningin2016,withfullcomplianceto5.0L/100kmrequiredby2020.

IndustrialEnvironmentalControl

EnvironmentalMatters

Ouroperationsaresubjecttoawiderangeofenvironmentalprotectionlawsincludingthoselawsregulatingairemissions,water discharges,wastemanagement and environmental cleanup.Certain environmental statutes require that responsiblepartiesfundremediationactionsregardlessoffault,legalityoforiginaldisposalorownershipofadisposalsite.Undercertaincircumstancestheselawsimposejointandseveralliabilityaswellasliabilityforrelateddamagestonaturalresources.RefertoNote17 to our consolidated financial statements for additional information on environmental matters including siteremediation.

Tomitigatetheeffectsourworldwideoperationshaveontheenvironmentwearecommittedtoconvertasmanyofourworldwide facilities as possible to landfillfree facilities. At December 31, 2014, 88 (or approximately 50%) of ourmanufacturingfacilitieswerelandfillfreefacilities.Additionallywehave34nonmanufacturingfacilitiesthatarelandfillfree.Atour landfillfreemanufacturing facilitiesapproximately93%ofwastematerialsare recycledor reusedand6% isconvertedtoenergyatwastetoenergyfacilities.Includingconstruction,demolitionandremediationwastes,weestimatethatwerecycled,reused,orcompostedover2millionmetrictonsofwastematerialsatourglobalmanufacturingoperationsandestimatethatweconvertedapproximately100,000metrictonsofwastematerialstoenergyatwastetoenergyfacilitiesintheyearendedDecember31,2014.

Inadditiontoprovidingenvironmentalbenefitsourlandfillfreeprogramandtotalwastereductioncommitmentsgeneraterevenue from the saleofproductionbyproducts, reduceour carbon footprint, andhelp to reduce the risks and financialliabilitiesassociatedwithwastedisposal.

Wecontinuetosearchforwaystoincreaseouruseofrenewableenergyandimproveourenergyefficiency.AtDecember31,2014wehaveimplementedprojectsgloballythathaveincreasedourrenewableenergycapacitybyover35megawatts,

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bringingour total renewableenergycapacity toover100megawatts. In2014wealsomet theEnvironmentalProtectionAgencyEnergyStarChallengeforIndustryatanadditional14ofoursitesgloballybyreducingenergyintensityanaverageof17%.TomeettheEPAchallengeindustrialsitesmustreduceenergyintensityby10%infiveyearsorfewer.All14sitesachievedthegoalinnomorethanfouryears,withmostmeetingitinlessthantwoyears,bringingthetotalnumberofGMownedsitestohavemettheEnergyStarChallengeto70.ChemicalRegulations

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Wecontinuallymonitortheimplementationofchemicalregulationstomaintaincomplianceandevaluatetheireffectonourbusiness,suppliersandtheautomotiveindustry.U.S.andCanada

GovernmentalagenciesinboththeU.S.andCanadacontinuetointroducenewregulationsandlegislationrelatedtotheselectionanduseofchemicalsorsubstancesofconcernbymandatingbroadprohibitions,greenchemistry,lifecycleanalysisandproduct stewardship initiatives.These initiativesgivebroad regulatoryauthority tobanor restrict theuseofcertainchemicalsubstancesandpotentiallyaffectautomobilemanufacturers'responsibilitiesforvehiclecomponentsattheendofavehicle'slife,aswellas,chemicalselectionforproductdevelopmentandmanufacturing.ChemicalrestrictionsinCanadaareprogressingmorerapidlythanintheU.S.asaresultofEnvironmentCanadasChemicalManagementPlantoassessexistingsubstances and implement risk management controls on any chemical deemed toxic. These emerging regulations willpotentially lead to increases in costs and supply chain complexity. We are currently in compliance with all materialcomponentsoftheserequirementsorexpecttobeincompliancebytherequireddate.

TheU.S.CongressiscurrentlypursuinganupdateoftheToxicSubstancesControlActtogranttheEPAmoreauthoritytoregulateandbanchemicalsfromuseintheU.S.which,ifpassed,isexpectedtogreatlyincreasethelevelofregulationofchemicalsinvehicles.

Europe

In2007theEUimplementeditsregulatoryrequirements,theEUREACHregulationamongothers,toregister,evaluate,authorize and restrict the use of chemical substances. This regulation requires chemical substances manufactured in orimportedintotheEUtoberegisteredwiththeEuropeanChemicalsAgencybefore2018.Underthisregulation,substancesof very high concern may either require authorization for further use or may be restricted in the future. This couldpotentiallyincreasethecostofcertainalternativesubstancesthatareusedtomanufacturevehiclesandparts,orresultinasupplychaindisruptionwhenasubstanceisnolongeravailabletomeetproductiontimelines.Ourresearchanddevelopmentinitiativesmaybedivertedtoaddressfuturerequirements.Wearecurrentlyincompliancewithallmaterialcomponentsoftheserequirementsorexpecttobeincompliancebytherequireddate.

Safety

In theU.S. if a vehicle or vehicle equipment doesnot complywith a safety standardor if a vehicle defect creates anunreasonablesafetyriskthemanufacturerisrequiredtonotifyownersandprovidearemedy.Wearerequiredtoreportcertaininformationrelatingtocertaincustomercomplaints,warrantyclaims,fieldreportsandnoticesandclaimsinvolvingpropertydamage, injuriesand fatalities in theU.S. andclaims involving fatalitiesoutside theU.S.Wearealso required to reportcertaininformationconcerningsafetyrecallsandothersafetycampaignsoutsidetheU.S.

OutsidetheU.S.safetystandardsandrecallregulationsoftenhavethesamepurposeastheU.S.standardsbutmaydifferintheir requirements and test procedures. Other countries sometimes pass regulations which are more stringent than U.S.standards.RefertoNote13formoreinformationonsignificantrecallactivitiesin2014.

VehicularNoiseControl

IntheU.S.passengercarsandlightdutytrucksaresubjecttostateandlocalmotorvehiclenoiseregulations.Weidentifythe most stringent state and local requirements and validate to those requirements. Medium to heavyduty trucks areregulatedatthefederallevel.

OutsidetheU.S.noiseregulationshavebeenestablishedbyauthoritiesatthenationalandsupranationallevel.Webelievethat our vehiclesmeet all applicable noise regulations in themarketswhere they are sold. In 2014 theEUpublished adirectivethatmandatesasignificantdecreaseinvehiclenoiseemissionswithamandatoryapplicationbeginningin2016.ThedirectiveoftheEUalsoformsthebasisforamendmenttoUNECEvehicleregulations,withtheeffectthatmaximum

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noiseregulationswillbecomemorestringentinallmarketsoutsideofNorthAmerica.

While current noise emission requirements regulate maximum allowable noise levels, formal proposals are underdevelopment to regulate minimum sound levels. These proposals stem from concern that relatively quiet vehicles,specificallyhybridsand

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electrics,may not be readily heard by pedestrians. In theU.S.,NationalHighwayTransportation SafetyAdministration(NHTSA)issuedaNoticeofProposedRulemakinginJanuary2013andtheU.S.DepartmentofTransportationindicatedafinalruleisexpectedtobepublishedin2015.TheUNECEisdevelopingaGlobalTechnicalRegulation,sponsoredbytheU.S.,Japan,andtheEU,formanufacturerstoequipvehicleswithpedestrianalertingdeviceswherethevehiclefailstomeetminimumsoundemissionlevels.

AutomotiveFinancingGMFinancial

GMFinancialisourglobalcaptiveautomotivefinancecompany.GMFinancialconductsitsbusinessinNorthAmericaand,asaresultofthe2013acquisitionoftheAllyFinancialinternationaloperations,inEuropeandLatinAmerica.LatinAmericaincludesoperationslocatedinBrazil,Chile,ColombiaandMexico.InJanuary2015GMFinancialcompletedtheacquisitionofAllyFinancial'sequityinterestinSAICGMACAutomotiveFinanceCompanyLimited(formerlyknownasGMACSAICAutomotive FinanceCompanyLimited) (SAICGMAC)which conducts automotive finance and financialservicesoperationsinChina.

GMFinancialprovidesconsumer lending,both loanand lease,across thecredit spectrum.AdditionallyGMFinancialofferscommercialproductstodealercustomersthatincludenewandusedvehicleinventoryfinancing,inventoryinsurance,workingcapital,capitalimprovementloans,fleetfinancingandstoragecenterfinancing.

InNorthAmericaGMFinancial'sconsumerautomobilefinanceprogramsincludesubprimelending,fullcreditspectrumleasing and,more recently, prime lending. The subprime lending program is primarily offered to consumerswith FICOscoresoflessthan620whohavelimitedaccesstoautomobilefinancingthroughbanksandcreditunions,andisexpectedtosustainahigher levelofcredit losses thanprimelending.GMFinancial iscurrentlyseekingtoexpanditsprimelendingprograms through our franchised dealers and anticipates that prime lending will become an increasing percentage oforiginationsandtheconsumerportfoliobalanceovertime.Theleasingproductisofferedthroughourfranchiseddealersandprimarilytargetsprimeconsumersleasingnewvehicles.

Internationally GM Financials consumer automobile finance programs focus on financing prime quality consumers,leasinginseveralcountriesandfinancerelatedinsuranceproductsthroughthirdparties,suchascreditlife,gapandextendedwarrantycoverage.

GMFinancial seeks to fund itsoperations ineachcountry through local sourcesof funding tominimizecurrencyandcountryrisk.GMFinancialprimarilyfinancesitsloan,leaseandcommercialoriginationvolumethroughtheuseofsecuredand unsecured credit facilities, through securitization transactions where such markets are developed and through theissuanceofunsecureddebt.

GM Financial retains an interest in the securitization transactions in the form of restricted cash accounts andovercollateralization,wherebymorereceivablesaretransferredtothesecuritizationtruststhantheamountofassetbackedsecuritiesissuedbythesecuritizationtrusts,aswellastheestimatedfutureexcesscashflowsexpectedtobereceivedbyGMFinancialoverthelifeofthesecuritization.Excesscashflowsresultfromthedifferencebetweenthefinancechargesreceivedfromtheobligorsonthereceivablesandtheinterestpaidtoinvestorsintheassetbackedsecuritiesnetofcreditlossesandexpenses.Excesscashflowsinthesecuritizationtrustsareinitiallyretainedtofundcreditenhancementrequirementsinorderto attain specific credit ratings for the assetbacked securities issued by the securitization trusts. Once targeted creditenhancementrequirementsarereachedandmaintainedexcesscashflowsaredistributedtoGMFinancial.

Employees

AtDecember31,2014weemployed216,000 employeesofwhom136,000 (63%)werehourly employees and80,000(37%)weresalariedemployees.AtDecember31,2014,51,000(56%)ofourU.S.employeeswererepresentedbyunions,amajorityofwhichwererepresentedbytheInternationalUnion,UnitedAutomobile,AerospaceandAgricultureImplementWorkersofAmerica(UAW).Thefollowingtablesummarizesworldwideemployment(inthousands):

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December31,2014 December31,2013 December31,2012GMNA(a) 110 109 101GME 37 37 40GMIO 33 36 36GMSA 29 31 32GMFinancial(b) 7 6 4TotalWorldwide 216 219 213

U.S.Salaried 40 36 30U.S.Hourly 51 51 50_________(a) Increase inGMNA employees in the year endedDecember 31, 2013 includes an increase of approximately 4,000 employees due to

insourcing of certain information technology support functions that were previously provided by outside parties and an increase ofapproximately3,000employeesduetoincreaseinlaunchesandrampupinmanufacturingvolume.

(b) Increase inGMFinancialemployees in theyearendedDecember31,2013 isdue to theacquisitionof theAllyFinancial internationaloperations.

ExecutiveOfficersoftheRegistrant

AsofFebruary4,2015thenamesandagesofourexecutiveofficersandtheirpositionsandofficeswithGMareasfollows:

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Name(Age) PresentGMPosition(Effective

Date) PositionsHeldDuringthePastFiveYearsifOtherthanPresentGM

Position(EffectiveDate)

MaryT.Barra(53)

ChiefExecutiveOfficerandMemberoftheBoardofDirectors(2014)

ExecutiveVicePresident,GlobalProductDevelopment,Purchasing&SupplyChain(2013)SeniorVicePresident,GlobalProductDevelopment(2011)VicePresident,GlobalHumanResources(2009)

DanielAmmann(42)

President(2014)

ExecutiveVicePresident&ChiefFinancialOfficer(2013)SeniorVicePresident&ChiefFinancialOfficer(2011)GMVicePresident,Finance&Treasurer(2010)MorganStanleyManagingDirectorandHeadofIndustrialInvestmentBanking(2004)

JaimeArdila(59)ExecutiveVicePresident&President,SouthAmerica(2013)

VicePresident&President,SouthAmerica(2010)PresidentandManagingDirectorofGMMercosur(2007)

AlanS.Batey(51)

ExecutiveVicePresident&President,GMNorthAmerica(2014)

SeniorVicePresident,GlobalChevroletandBrandChiefandU.S.SalesandMarketing(2013)GMVicePresident,U.S.SalesandService,andInterimGMChiefMarketingOfficer(2012)VicePresident,U.S.ChevroletSalesandService(2010)Chairman&ManagingDirector,Holden,Ltd.(2009)

JamesB.DeLuca(53)ExecutiveVicePresident,GlobalManufacturing(2014)

VicePresident,Manufacturing,GMInternationalOperations(2013)VicePresident,Quality,GMInternationalOperations(2009)

StefanJacoby(56)

ExecutiveVicePresident,GMConsolidatedInternationalOperations(2013)

VolvoCarCorporationGlobalChiefExecutiveOfficerandPresident(2010)VolkswagenGroupofAmericaChiefExecutiveOfficerandPresident(2007)

MichaelP.Millikin(66)(a)ExecutiveVicePresident&GeneralCounsel(2013)

SeniorVicePresident&GeneralCounsel(2011)GMVicePresident&GeneralCounsel(2009)

KarlThomasNeumann(53)

ExecutiveVicePresident&President,GMEurope&ChairmanoftheManagementBoardofOpelGroupGmbH(2013)

CEO,OpelGroupGmbH&President,GMEurope(2013)VolkswagenGroupChinaChiefExecutiveOfficerandPresident(2010)VolkswagenGroupExecutiveVicePresident,Electromobility(2009)

MarkL.Reuss(51)

ExecutiveVicePresident,GlobalProductDevelopment,Purchasing&SupplyChain(2014)

ExecutiveVicePresident&President,NorthAmerica(2013)GMVicePresident&President,NorthAmerica(2009)GMVicePresident,GlobalVehicleEngineering(2009)

CharlesK.Stevens,III(55)

ExecutiveVicePresident&ChiefFinancialOfficer(2014)

ChiefFinancialOfficer,GMNorthAmerica(2010)InterimChiefFinancialOfficer,GMSouthAmerica(2011)ExecutiveDirector,Finance,GMdeMexico(2008)

MatthewTsien(54)

ExecutiveVicePresident&President,GMChina,Inc.(2014)

GMConsolidatedInternationalOperationsVicePresident,Planning,ProgramManagement,&StrategicAlliancesChina(2012)ExecutiveVicePresident,SAICGMWuling(2009)

ThomasS.Timko(46)

GMVicePresident,Controller&ChiefAccountingOfficer(2013)

AppliedMaterialsInc.CorporateVicePresident,ChiefAccountingOfficer,andCorporateController(2010)DelphiAutomotiveCorporationChiefAccountingOfficerandController(2006)

__________(a) RetiringeffectiveJuly2015andavailableforconsultingservicestotheCompanythrough2015.

Therearenofamilyrelationshipsbetweenanyoftheofficersnamedaboveandthereisnoarrangementorunderstandingbetweenanyoftheofficersnamedaboveandanyotherpersonpursuanttowhichheorshewasselectedasanofficer.EachoftheofficersnamedabovewaselectedbytheBoardofDirectorsoracommitteeoftheBoardofDirectorstoholdofficeuntilthenextannualelectionofofficersanduntilhisorhersuccessoriselectedandqualifiedoruntilhisorherearlierresignationorremoval.TheBoardofDirectorselectstheofficersimmediatelyfollowingeachannualmeetingofthestockholdersand

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mayappointotherofficersbetweenannualmeetings.

SegmentReportingData

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OperatingsegmentdataandprincipalgeographicareadatafortheyearsendedDecember31,2014,2013and2012 aresummarizedinNote25toourconsolidatedfinancialstatements.

WebsiteAccesstoOurReports

Ourinternetwebsiteaddressiswww.gm.com.Inadditiontotheinformationaboutusandoursubsidiariescontainedinthis2014Form10Kinformationaboutuscanbefoundonourwebsiteincludinginformationonourcorporategovernanceprinciples.Ourwebsiteandinformationincludedinorlinkedtoourwebsitearenotpartofthis2014Form10K.

OurannualreportsonForm10K,quarterlyreportsonForm10Q,currentreportsonForm8KandamendmentstothosereportsfiledorfurnishedpursuanttoSection13(a)or15(d)oftheSecuritiesExchangeActof1934,asamended(ExchangeAct)areavailablefreeofchargethroughourwebsiteassoonasreasonablypracticableaftertheyareelectronicallyfiledwithorfurnishedtotheSecuritiesandExchangeCommission(SEC).ThepublicmayreadandcopythematerialswefilewiththeSECattheSEC'sPublicReferenceRoomat100FStreet,NE,Washington,DC20549.Thepublicmayobtaininformationontheoperationof thePublicReferenceRoombycalling theSECat1800SEC0330.Additionally theSECmaintainsaninternetsitethatcontainsreports,proxyandinformationstatementsandotherinformation.TheaddressoftheSEC'swebsiteiswww.sec.gov.

*******

Item1A.RiskFactors

We face a number of significant risks and uncertainties in connection with our operations. Our business, results ofoperationsandfinancialconditioncouldbemateriallyadverselyaffectedbythefactorsdescribedbelow.Whilewedescribeeach risk separately, some of these risks are interrelated and certain risks could trigger the applicability of other risksdescribedbelow.

Ourbusinessishighlydependentontheglobalautomobilemarketsalesvolume,whichcanbevolatile.

Ourbusinessandfinancialresultsarehighlysensitivetosalesvolume.Anumberofeconomicandmarketconditionsdrivechangesinvehiclesales,includingrealestatevalues,levelsofunemployment,theavailabilityofcredit,fluctuationsinthecost of fuel, consumer confidence and global economic conditions. We cannot predict future economic and marketconditionswithcertainty.

Ourabilitytomaintainprofitabilityoverthelongtermisdependentuponourabilitytointroducenewandimprovedvehiclemodelsthatareabletoattractasufficientnumberofconsumers.

Theautomotiveindustry,particularlyintheU.S.,isverycompetitivewithmarketparticipantsroutinelyintroducingnewand improved vehiclemodels designed tomeet consumer expectations, and in the past our competitors have been verysuccessfulinpersuadingcustomersthatpreviouslypurchasedourproductstopurchasetheirvehiclesinstead.Producingnewand improvedvehiclemodelsonabasis competitivewith themodels introducedbyour competitors andpreservingourreputationfordesigning,buildingandsellingsafeandhighqualitycarsthatmeetcustomerpreferencesiscriticaltoourlongtermprofitability.Wewilllaunchasubstantialnumberofnewvehiclesin2015.Asuccessfullaunchofournewvehiclesiscriticaltoourshorttermprofitability.

The pace of our development and introduction of new and improved vehicles depends on our ability to implementsuccessfullyimprovedtechnologicalinnovationsindesign,engineeringandmanufacturing,whichrequiresextensivecapitalinvestmentandtheabilitytoretainandrecruitnewtalent.Insomecasesthetechnologiesthatweplantoemploy,suchashydrogenfuelcellsandadvancedbatterytechnology,arenotyetcommerciallypracticalanddependonsignificantfuturetechnological advancesbyus andbyour suppliers.There canbeno assurance that our competitors andotherspursuingsimilartechnologiesandothercompetingtechnologieswillnotacquiresimilarorsuperiortechnologiessoonerthanwedooronanexclusivebasisoratasignificantpriceadvantage.

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Ourprofitabilityisdependentuponthesuccessofourhighermarginvehiclesandluxurybrands.

Whilewe offer a balanced and complete portfolio of small,midsize and large cars, crossovers, sport utility vehicles(SUVs)andtrucks,wegenerallyrecognizehigherprofitmarginsonourfullsizepickuptrucksandSUVs.Oursuccessisdependentuponconsumerpreferencesandourabilitytomarketourhighermarginvehicles.

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Our futurecompetitivenessandability toachieve longtermprofitabilitydependsonourability to controlourcosts,whichrequiresustosuccessfullyimplementrestructuringinitiativesthroughoutourautomotiveoperations.

Wearecontinuingtoimplementanumberofcostreductionandproductivityimprovementinitiativesinourautomotiveoperations,includinglabormodificationsandsubstantialrestructuringinitiatives.Ourfuturecompetitivenessdependsuponourcontinuedsuccessinimplementingtheseinitiativesthroughoutourautomotiveoperations.Whilesomeoftheelementsofcostreductionarewithinourcontrol,others,suchasinterestratesorreturnoninvestments,whichinfluenceourexpenseforpensions,dependmoreonexternalfactors,andtherecanbenoassurancethatsuchexternalfactorswillnotmateriallyadverselyaffectourabilitytoreduceourcosts.Reducingcostsmayprovedifficultduetoourfocusonincreasingadvertisingand our belief that engineering expenses necessary to improve the performance, safety and customer satisfaction of ourvehiclesarelikelytoincrease.

Anydisruptioninoursuppliers'operationscoulddisruptourproductionschedule.

Ourautomotiveoperationsaredependentuponthecontinuedabilityofoursupplierstodeliverthesystems,components,rawmaterialsandpartsthatweneedtomanufactureourproducts.Ouruseofjustintimemanufacturingprocessesallowsus tomaintainminimal inventory quantities of systems, components, rawmaterials and parts.As a result our ability tomaintainproductionisdependentuponoursuppliersdeliveringsufficientquantitiesofsystems,components,rawmaterialsandpartsontimetomeetourproductionschedules.Insomeinstanceswepurchasesystems,components,rawmaterialsandpartsfromasinglesourceandmaybeatanincreasedriskforsupplydisruptions.Whereweexperiencesupplydisruptions,we may not be able to develop alternate sourcing quickly. Any disruption of our production schedule caused by anunexpectedshortageofsystems,components,rawmaterialsorpartsevenforarelativelyshortperiodoftimecouldcauseustoalterproductionschedulesorsuspendproductionentirely.

Anincreaseincostofrawmaterialscouldmateriallyharmourbusiness.

Weusevariousrawmaterialsinourbusinessincludingsteel,aluminum,copper,platinumandpalladium.Thepricesforthese raw materials fluctuate depending on market conditions. In recent years freight charges and raw material costsincreased.Substantial increases in theprices forour rawmaterialscould reduceourprofitability ifwecannot recoup theincreased costs through increased vehicle prices. Some of these rawmaterials, such as corrosionresistant steel, are onlyavailablefromalimitednumberofsuppliers.Wecannotguaranteethatwewillbeabletomaintainfavorablearrangementsandrelationshipswiththesesuppliers.Anincreaseinthecostorasustainedinterruptioninthesupplyorshortageofsomeoftheserawmaterials,whichmaybecausedbyadeteriorationofourrelationshipswithsuppliersorbyeventssuchaslaborstrikes,couldnegativelyaffectournetrevenuesandprofitabilitytoamaterialextent.

Weoperateinahighlycompetitiveindustrythathasexcessmanufacturingcapacityandattemptsbyourcompetitorstosellmorevehiclescouldhaveasignificantnegativeeffectonourvehiclepricing,marketshareandoperatingresults.

Theglobalautomotiveindustryishighlycompetitiveandoverallmanufacturingcapacityintheindustryexceedsdemand.Manymanufacturershaverelativelyhighfixedlaborcostsaswellassignificantlimitationsontheirabilitytoclosefacilitiesandreducefixedcosts.Ourcompetitorsmayrespondtotheserelativelyhighfixedcostsbyattemptingtosellmorevehiclesby adding vehicle enhancements, providing subsidized financing or leasing programs, offering marketing incentives orreducingvehicleprices.ManufacturersinlowercostcountriessuchasChinaandIndiahaveemergedascompetitorsinkeyemergingmarketsandannouncedtheirintentionofexportingtheirproductstoestablishedmarketsasabargainalternativetoentrylevelautomobiles.Theseactionshavehad,andareexpectedtocontinuetohave,asignificantnegativeeffectonourvehiclepricing,marketshareandoperatingresults,andpresentasignificantrisktoourabilitytoenhanceourrevenuepervehicle.

Ourcompetitorsmaybeabletobenefitfromthecostsavingsofferedbyindustryconsolidationoralliances.

Designing,manufacturingandsellingvehiclesiscapitalintensiveandrequiressubstantialinvestmentsinmanufacturing,machinery, research and development, product design, engineering, technology and marketing in order to meet bothconsumer preferences and regulatory requirements. Large original equipment manufacturers are able to benefit from

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economiesof scaleby leveraging their investments andactivitiesonaglobalbasis acrossbrandsandnameplates. Ifourcompetitorsconsolidateorenterintootherstrategicagreementssuchasalliances,theymaybeabletotakebetteradvantageoftheseeconomiesofscaletoenhancetheircompetitivenessorliquidityposition.

Our business plan contemplates that we restructure our operations in various European countries, but wemay notsucceedindoingso.

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Wefacedifficultmarketandoperatingconditionsincertainpartsoftheworldthatmayrequireustorestructure,impairorrationalize theseoperations. Inmanycountriesacrossour regionswehaveexperiencedchallenges inouroperationsandcontinue to strategically assess the manner in which we operate in certain countries. As we continue to assess ourperformancethroughout theregions,additionalrestructuring, impairmentandrationalizationactionsmayberequiredandmaybematerial.Thekeyareasofourplaninclude:(1)investmentsinourproductportfolio(2)arevisedbrandstrategyand(3) reducingmaterial, development and production costs.The success of our planwill depend on a combination of ourabilitytoexecutetheactionscontemplated,aswellasexternaleconomicfactors,whichareoutsideofourcontrol.

We could bematerially adversely affected by a negative outcome in unusual or significant litigation, governmentalinvestigationsorotherlegalproceedingsrelatedtotheIgnitionSwitchRecall.

Wearesubjecttolegalproceedingsinvolvingvariousissues,includingproductliabilitylawsuits,stockholderlitigationandgovernmental investigations, including class actions related to the IgnitionSwitchRecall, such as a lawsuit for theallegeddiminishedvalueofvehiclesaffectedbytheIgnitionSwitchRecall.Refertothe"GMNorthAmerica"sectionofManagement's Discussion and Analysis of Financial Conditions and Results of Operations (MD&A) for additionalinformation on the IgnitionSwitchRecall.At this pointwe are unable to predict the duration, scope, developments in,resultsoforconsequencesofthegovernment'sinvestigations.Suchlawsuitsandinvestigationscouldinthefutureresultintheimpositionofdamages,substantialfines,civillawsuitsandcriminalpenalties,interruptionsofbusiness,modificationofbusinesspractices,equitableremediesandothersanctionsagainstusorourpersonnelaswellassignificantlegalandothercosts.Becausethemattersareongoingtherecanbenoassuranceastohowtheresultingconsequences,ifany,mayimpactourbusiness,reputation,consolidatedfinancialcondition,resultsofoperationsorcashflow.Wecannotcurrentlyestimatethe potential liability, damages or range of potential loss as a result of the legal proceedings and governmentalinvestigations.ForafurtherdiscussionofthesemattersrefertoNote17toourconsolidatedfinancialstatements.

Thecostsandeffectonourreputationofproductrecallscouldmateriallyadverselyaffectourbusiness.

Fromtimetotimewerecallourproductstoaddressperformance,complianceorsafetyrelatedissues.Thecostsweincurinconnectionwith these recalls typically include the cost of the part being replaced and labor to remove and replace thedefectivepart.Inadditionproductrecallscanharmourreputationandcauseustolosecustomers,particularlyifthoserecallscauseconsumerstoquestionthesafetyorreliabilityofourproducts.Converselynotissuingarecallornotissuingarecallonatimelybasiscanharmourreputationandcauseustolosecustomersforthesamereasonsasexpressedabove.

Wearesubjecttoextensivegovernmentallaws,regulationsandpoliciesincludingsafety,fueleconomy,andgreenhousegasemissions,theenforcementofwhichorchangestoexistingones,mayhaveasignificanteffectonhowwedobusiness.

Weareaffectedsignificantlybygovernmentalregulationsthatcanincreasecostsrelatedtotheproductionofourvehiclesandaffectourproductportfolio.Weanticipatethat thenumberandextentof theseregulations,andtherelatedcostsandchanges toourproduct lineup,will increase significantly in the future.Thesegovernment regulatory requirementscouldsignificantlyaffectourplansforglobalproductdevelopmentandmayresultinsubstantialcosts,includingcivilorcriminalpenalties.Theymayalsoresultinlimitsonthetypesofvehicleswesellandwherewesellthem,whichcanaffectrevenue.

In the U.S. automotive safety standards are regulated by the NHTSA, whose regulators require that automotivemanufacturers implementsafetymeasuressuchas recalls forvehicles thatdonotormaynotcomplywithrelevantsafetystandards.Duetotheseregulations,wecouldbesubjecttocivilorcriminalpenaltiesormayincurvariouscostsincludingsignificantcostsforfreerepairs,ifwearerequiredto,orvoluntarilydecideto,implementsafetymeasuressuchasarecall.Forexample, we are currently facing U.S. Attorney for the Southern District of New York, Congressional, SEC, TransportCanadaandstateinvestigationsrelatedtotheIgnitionSwitchRecall.

In the U.S. vehicle fuel economy and greenhouse gas emissions are regulated under a harmonized national programadministeredbytheNHTSAandtheEPA.

We are committed tomeeting or exceeding theseU.S. regulatory requirements.We expect that to complywith these

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requirements we will be required to sell a significant volume of hybrid electric vehicles, as well as implement newtechnologiesforconventionalinternalcombustionengines,allatincreasedcostlevels.Thereisnoassurancethatwewillbeabletoproduceandsellvehiclesthatusesuchtechnologiesonaprofitablebasisorthatourcustomerswillpurchasesuchvehiclesinthequantitiesnecessaryforustocomplywiththeseregulatoryprograms.

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Ifwearenotabletocomplywithspecificnewrequirementsthenwecouldbesubjecttosizeablecivilpenaltiesorhavetorestrictproductofferingsdrasticallytoremainincompliance.Environmentalliabilitiesforwhichwemayberesponsiblearenotreasonablyestimableandcouldbesubstantial.Violationsofsafetyoremissionsstandardscouldresultintherecallofoneormoreofourproducts,negotiatedremedialactions,possiblefinesoracombinationofanyofthoseitems.Wemustalsocoverthecostofrepairsconductedunderemissiondefectandperformancewarrantieswhichapplyforspecifiedperiodsoftimeandmileage. In turnanyof theseactionscouldhavesubstantialadverseeffectsonouroperations includingfacilityidling,reducedemployment,increasedcostsandlossofrevenue.

Our defined benefit pension plans are currently underfunded and our pension funding requirements could increasesignificantlyduetoareductioninfundedstatusasaresultofavarietyoffactors,includingweakperformanceoffinancialmarkets,declininginterestrates,changesinassumptionsandinvestmentsthatdonotachieveadequatereturns.

Our employee benefit plans currently hold a significant amount of equity and fixed income securities. A detaileddescriptionoftheinvestmentfundsandstrategiesisdisclosedinthe"CriticalAccountingEstimates"sectionoftheMD&AandNote15 toour consolidated financial statements,which alsodescribes significant concentrationsof risk to theplaninvestments.

Thereareadditionalrisksduetothecomplexityandmagnitudeofourinvestments.Examplesincludeimplementationofsignificantchangesininvestmentpolicy,insufficientmarketliquidityinparticularassetclassesandtheinabilitytoquicklyrebalanceilliquidandlongterminvestments.

OurfuturefundingrequirementsforourU.S.definedbenefitpensionplansqualifiedwiththeInternalRevenueService(IRS) depend upon the future performance of assets placed in trusts for these plans, the level of interest rates used todetermine funding levels, the level of benefits provided for by the plans and any changes in government laws andregulations.Futurefundingrequirementsgenerallyincreaseifthediscountratedecreasesorifactualassetreturnsarelowerthanexpectedassetreturns,asotherfactorsareheldconstant.OurpotentialfundingrequirementsaredescribedinNote15toourconsolidatedfinancialstatements.

FactorswhichaffectfuturefundingrequirementsforourU.S.definedbenefitplansgenerallyaffecttherequiredfundingfornonU.S.plans.CertainplansoutsidetheU.S.donothaveassetsandthereforetheobligationisfundedasbenefitsarepaid.IflocallegalauthoritiesincreasetheminimumfundingrequirementsforournonU.S.plans,wecouldberequiredtocontributemorefunds.

Shortagesofandvolatilityinthepriceofoilmaycauseshiftsinconsumervehicledemand.

Volatileoilpricesinrecentyearshavetendedtocauseashiftinconsumerdemandtowardssmaller,morefuelefficientvehicles,whichprovidelowerprofitmargins.Anyincreasesinthepriceofoiloranysustainedshortageofoil,includingasaresultofpoliticalinstabilityintheMiddleEast,SouthAmericaandAfricannations,couldweakenthedemandforourhighermargin fullsizepickup trucks andSUVs,which coulddecrease.Loweroil prices inoil producing countries could alsoimpactourabilitytosellvehiclesinthosecountries.

WerelyonGMFinancial toprovide financial services toourdealersandcustomers inamajorityof themarkets inwhichwesellvehicles.GMFinancialfacesanumberofbusiness,economicandfinancialrisksthatcouldimpairitsaccesstocapitalandnegativelyaffectitsbusinessandoperationsanditsabilitytoprovideleasingandfinancingtoconsumersandcommerciallendingtoourdealerstosupportadditionalsalesofourvehicles.

WerelyonGMFinancialinNorthAmerica,Europe,SouthAmericaandChinatosupportleasingandsalesofourvehiclesto consumers requiring vehicle financing and also to provide commercial lending to our dealers.Any reduction ofGMFinancial'sabilitytoprovidesuchfinancialserviceswouldnegativelyaffectoureffortstosupportadditionalsalesofourvehicles and expand ourmarket penetration among consumers and dealers. The factors that could adversely affect GMFinancial'sbusinessandoperationsandreduceitsabilitytoprovidefinancingservicesatcompetitiveratesinclude:

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Theavailabilityofborrowingsunderitscreditfacilitiestofunditsconsumeranddealerfinanceactivities

Itsabilitytoaccessavarietyoffinancingsourcesincludingtheassetbackedsecuritiesmarketandothersecuredandunsecureddebtmarkets

Theperformanceofloansandleasesinitsportfolio,whichcouldbemateriallyaffectedbydelinquencies,defaultsorprepayments

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Wholesaleauctionvaluesofusedvehicles

HigherthanexpectedvehiclereturnratesandtheresidualvalueperformanceonvehiclesGMFinancialleases

Fluctuationsininterestratesandcurrenciesand

Changestoregulation,supervisionandlicensingacrossvariousjurisdictions.

Ourplannedinvestmentinnewtechnologyinthefutureissignificantandmaynotbefundedatanticipatedlevelsand,eveniffundedatanticipatedlevels,maynotresultinsuccessfulvehicleapplications.

Weintendtoinvestsignificantcapitalresourcestosupportourproductsandtodevelopnewtechnology.Inadditionweplan to investheavily inalternative fuel andadvancedpropulsion technologies in2015, largely to support our plannedexpansion of hybrid and electric vehicles. However if our future operations do not provide us with the cash flow weanticipate,wemaybeforcedtoreduce,delayorcancelourplannedinvestmentsinnewtechnology.

Insomecasesthetechnologiesthatweplantoemployarenotyetcommerciallypracticalanddependonsignificantfuturetechnologicaladvancesbyusandbysuppliers.Therecanbenoassurancethatadvancesintechnologywilloccurinatimelyorfeasibleway,thatthefundsthatwehavebudgetedforthesepurposeswillbeadequateorthatwewillbeabletoestablishourrighttothesetechnologies.

Securitybreachesandotherdisruptions toour informationtechnologynetworksandsystemscould interferewithouroperationsandcouldcompromisetheconfidentialityofourproprietaryinformation.

Werelyuponinformationtechnologynetworksandsystems,includinginvehiclesystemsandmobiledevices,someofwhicharemanagedbythirdparties,toprocess,transmitandstoreelectronicinformation,andtomanageorsupportavarietyof business processes and activities, including supply chain management, manufacturing, invoicing and collection ofpaymentsfromourdealernetworkandfromcustomersofGMFinancial.Additionallywecollectandstoresensitivedata,includingintellectualproperty,proprietarybusinessinformation,proprietybusinessinformationofourdealersandsuppliers,aswellaspersonallyidentifiableinformationofourcustomersandemployees,indatacentersandoninformationtechnologynetworks. The secure operation of these information technology networks, and the processing andmaintenance of thisinformation,iscriticaltoourbusinessoperationsandstrategy.Despitesecuritymeasuresandbusinesscontinuityplans,ourinformation technologynetworksandsystemsmaybevulnerable todamage,disruptionsorshutdownsdue toattacksbyhackersorbreachesduetoerrorsormalfeasancebyemployees,contractorsandotherswhohaveaccesstoournetworksandsystemsorcomputerviruses.Theoccurrenceofanyof theseeventscouldcompromiseournetworksand the informationstoredtherecouldbeaccessed,publiclydisclosed,lostorstolen.Wehavebeenthetargetofthesetypesofattacksinthepastwithnomaterialknownimpactsandfutureattacksarelikelytooccur.Ifsuccessful,thesetypesofattacksonournetworkorsystems, including invehicle systemsandmobiledevices,or service failurescouldhaveamaterialadverseeffectonourbusinessandresultsofoperations,due to,amongother things, the lossofproprietarydata, interruptionsordelays inourbusinessoperationsanddamagetoourreputation.Inadditionanysuchaccess,disclosureorotherlossofinformationcouldresult in legal claims or proceedings, liability or regulatory penalties under laws protecting the privacy of personalinformation,disruptoperationsandreducethecompetitiveadvantagewehopetoderivefromourinvestmentinadvancedtechnologies.Ourinsurancecoveragemaynotbeadequate tocoverall thecostsrelatedtosignificantsecurityattacksordisruptionsresultingfromsuchattacks.

Asignificantamountofouroperationsareconductedbyjointventuresthatwecannotoperatesolelyforourbenefit.

Manyofouroperations,primarilyinChina,arecarriedoutbyjointventuressuchasShanghaiGeneralMotorsCo.,Ltd.Injointventuresweshareownershipandmanagementofacompanywithoneormorepartieswhomaynothave thesamegoals, strategies, priorities or resources aswe do andmay competewith us outside the joint venture. Joint ventures areintendedtobeoperatedfortheequalbenefitofallcoowners,ratherthanforourexclusivebenefit.Operatingabusinessasajoint venture often requires additional organizational formalities as well as timeconsuming procedures for sharinginformationandmakingdecisions.Injointventureswearerequiredtofosterourrelationshipswithourcoownersaswellaspromotetheoverallsuccessofthejointventure,andifacoownerchangesorrelationshipsdeteriorate,oursuccessinthe

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jointventuremaybemateriallyadverselyaffected.Thebenefitsfromasuccessful jointventurearesharedamongthecoowners,sothatwedonotreceiveallthebenefitsfromoursuccessfuljointventures.

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OurbusinessinChinaissubjecttoaggressivecompetitionandissensitivetoeconomicandmarketconditions.

MaintainingastrongpositionintheChinesemarketisakeycomponentofourglobalgrowthstrategy.Theautomotivemarket in China is highly competitive, with competition frommany of the largest global manufacturers and numeroussmaller domestic manufacturers. As the size of the Chinese market continues to increase we anticipate that additionalcompetitors,bothinternationalanddomestic,willseektoentertheChinesemarketandthatexistingmarketparticipantswillactaggressivelytoincreasetheirmarketshare.Increasedcompetitionmayresultinpricereductions,reducedmarginsandourinabilitytogainorholdmarketshare.InadditionourbusinessinChinaissensitivetoeconomicandmarketconditionsthatdrivesalesvolumeinChina.

Wecouldbemateriallyadverselyaffectedbychangesor imbalances in foreigncurrencyexchangeratesand interestrates.

Given thenatureof theautomotive industryandglobal spreadofourbusiness,wehave significantexposures to risksrelatedtochangesinforeigncurrencyexchangeratesandinterestrates.InpreparingtheconsolidatedfinancialstatementswetranslateourrevenuesandexpensesoutsidetheU.S.intoU.S.Dollarsusingtheaverageforeigncurrencyexchangeratefortheperiodandtheassetsandliabilitiesusingtheforeigncurrencyexchangerateatthebalancesheetdate.

OurbusinessesoutsidetheU.S.exposeustoadditionalrisks.

ThemajorityofourvehiclesaresoldoutsidetheU.S.WearepursuinggrowthopportunitiesforourbusinessinavarietyofbusinessenvironmentsoutsidetheU.S.Operatinginalargenumberofdifferentregionsandcountriesexposesustopolitical,economicandotherrisksaswellasmultipleforeignregulatoryrequirementsthataresubjecttochange,including:

Economic downturns in foreign countries or geographic regionswherewe have significant operations, such asChina

Economic tensions between governments and changes in international trade and investment policies, includingimposingrestrictionsontherepatriationofdividends,especiallybetweentheU.S.andChina

Changes in foreign regulations impacting our overall businessmodel restricting our ability to buy and sell ourproductsinthosecountries,especiallyChina

Differing local product preferences and product requirements, including fuel economy, vehicle emissions andsafety

ImpactofcompliancewithU.S.andotherforeigncountriesexportcontrolsandeconomicsanctions

Liabilities resulting fromU.S. and foreign laws and regulations, including those related to the ForeignCorruptPracticesActandcertainotheranticorruptionlaws

Differinglaborregulationsandunionrelationships

Consequencesfromchangesintaxlaws

Difficultiesinobtainingfinancinginforeigncountriesforlocaloperationsand

Politicalandeconomicinstability,naturalcalamities,warandterrorism.

*******

Item1B.UnresolvedStaffComments

None

*******Item2.Properties

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At December 31, 2014 we had over 100 locations in the U.S., excluding our automotive financing operations anddealerships,which are primarily formanufacturing, assembly, distribution,warehousing, engineering and testing.Leasedpropertiesareprimarilycomposedofwarehousesandadministration,engineeringandsalesoffices.

Wehave15locationsinCanadaandwehaveassembly,manufacturing,distribution,officeorwarehousingoperationsin61 other countries, including equity interests in associated companies which perform assembly, manufacturing ordistribution

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operations.Themajor facilities outside theU.S. andCanada,which are principally vehiclemanufacturing and assemblyoperations,arelocatedin:

Argentina Colombia Indonesia SouthAfrica UzbekistanAustralia Ecuador Kenya SouthKorea VenezuelaBrazil Egypt Mexico Spain VietnamChile Germany Poland Thailand China India Russia UnitedKingdom

We,oursubsidiaries,orassociatedcompaniesinwhichweownanequityinterest,ownmostoftheabovefacilities.

GMFinancialleasesfacilitiesforadministrationandregionalcreditcenters.GMFinancialhas46facilities,ofwhich22arelocatedintheU.S.ThemajorfacilitiesoutsidetheU.S.arelocatedinCanada,theUnitedKingdom,BrazilandSpain.

*******

Item3.LegalProceedings

RefertoNote17toourconsolidatedfinancialstatementsforinformationrelatingtolegalproceedings.

*******

Item4.MineSafetyDisclosures

Notapplicable

*******

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PARTII

Item5.MarketforRegistrantsCommonEquity,RelatedStockholderMattersandIssuerPurchasesofEquitySecurities

MarketInformation

SharesofourcommonstockhavebeenpubliclytradedsinceNovember18,2010whenourcommonstockwaslistedandbegan tradingon theNewYorkStockExchange and theTorontoStockExchange.The following table summarizes thequarterly price rangesof our common stockbasedonhigh and lowprices from intraday trades on theNewYorkStockExchange,theprincipalmarketonwhichthestockistraded:

YearsEndedDecember31, 2014 2013 High Low High LowFirstquarter $ 41.06 $ 33.57 $ 30.68 $ 26.19Secondquarter $ 37.18 $ 31.70 $ 35.49 $ 27.11Thirdquarter $ 38.15 $ 31.67 $ 37.97 $ 33.41Fourthquarter $ 35.45 $ 28.82 $ 41.85 $ 33.92

Holders

AtJanuary28,2015wehadatotalof1.6billionissuedandoutstandingsharesofcommonstockheldby420holdersofrecord.

Dividends

Sinceourformation,wehadnotpaidanydividendsonourcommonstockthroughtheyearendedDecember31,2013.Beginninginthefirstquarterof2014ourBoardofDirectorsdeclared,andwepaid,quarterlydividendsoncommonstockintheamountof$0.30pershare.Itisanticipatedthatdividendsonourcommonstockwillcontinuetobedeclaredandpaidquarterly.Howeverourpaymentofdividendsinthefuture,ifany,willbedeterminedbyourBoardofDirectorsandwillbepaid out of funds legally available for that purpose. Our payment of dividends in the future will depend on businessconditions,ourfinancialcondition,earnings,liquidityandcapitalrequirementsandotherfactors.

IssuerPurchasesofEquitySecurities

PurchasesofEquitySecuritiesforCash

NosharesofcommonstockwerepurchasedforcashinthethreemonthsendedDecember31,2014.

OtherPurchasesofEquitySecurities

TotalNumberofShares

Purchased Average

PricePaidperShare

TotalNumberofSharesPurchasedUnderAnnounced

Programs

ApproximateDollarValueofSharesThatMayYetbePurchasedUnderAnnounced

Programs

October1,2014throughOctober31,2014 1,886,328 $ 32.68 N/A N/ANovember1,2014throughNovember30,2014 2,833 $ 31.28 N/A N/ADecember1,2014throughDecember31,2014 509,219 $ 32.53 N/A N/ATotal 2,398,380 $ 32.65

Sharespurchasedconsistof (1) sharesof commonstock retainedbyus for thepaymentof the exercisepriceupon the

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exerciseofwarrantsand(2)sharesofcommonstockdeliveredbyemployeesordirectorsbacktousforthepaymentoftaxesresultingfromissuanceofcommonstockuponthevestingofRestrictedStockUnits(RSUs)andRestrictedStockAwardsrelatingtocompensationplans.RefertoNote23ofourconsolidatedfinancialstatementsforadditionaldetailsonemployeestockincentiveplansandNote21ofourconsolidatedfinancialstatementsforadditionaldetailsonwarrantsissued.

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*******

Item6.SelectedFinancialData

Selectedfinancialdataissummarizedinthefollowingtable(dollarsinmillionsexceptpershareamounts):

AtandfortheYearsEndedDecember31,

2014 2013 2012 2011 2010IncomeStatementData: Totalnetsalesandrevenue $ 155,929 $ 155,427 $ 152,256 $ 150,276 $ 135,592Incomefromcontinuingoperations(a) $ 4,018 $ 5,331 $ 6,136 $ 9,287 $ 6,503Netincomeattributabletostockholders $ 3,949 $ 5,346 $ 6,188 $ 9,190 $ 6,172Netincomeattributabletocommonstockholders(b) $ 2,804 $ 3,770 $ 4,859 $ 7,585 $ 4,668Basicearningspercommonshare(c) $ 1.75 $ 2.71 $ 3.10 $ 4.94 $ 3.11Dilutedearningspercommonshare(c) $ 1.65 $ 2.38 $ 2.92 $ 4.58 $ 2.89Dividendsdeclaredpercommonshare $ 1.20 $ $ $ $ BalanceSheetData: Totalassets(d) $ 177,677 $ 166,344 $ 149,422 $ 144,603 $ 138,898Automotivenotesandloanspayable $ 9,410 $ 7,137 $ 5,172 $ 5,295 $ 4,630GMFinancialnotesandloanspayable(d) $ 37,431 $ 29,046 $ 10,878 $ 8,538 $ 7,032SeriesAPreferredStock(b) $ $ 3,109 $ 5,536 $ 5,536 $ 5,536SeriesBPreferredStock(e) $ $ 4,855 $ 4,855 $ 4,855Equity(f) $ 36,024 $ 43,174 $ 37,000 $ 38,991 $ 37,159_________(a) In theyear endedDecember31,2014we recordedchargesof approximately$2.9billion inAutomotive cost of sales related to recall

campaignsandcourtesytransportation,acatchupadjustmentof$0.9billionrecordedinthethreemonthsendedJune30,2014relatedtothechangeinestimateforrecallcampaignsandachargeof$0.4billionrelatedtotheignitionswitchrecallcompensationprogram.Intheyear ended December 31, 2012 we recorded Goodwill impairment charges of $27.1 billion, the reversal of deferred tax valuationallowancesof$36.3billion in theU.S. andCanada, pension settlement charges of $2.7billion andGME longlived asset impairmentchargesof$5.5billion.

(b) InDecember2014weredeemedalloftheremainingsharesofourSeriesAPreferredStockfor$3.9billion,whichreducedNetincomeattributabletocommonstockholdersby$0.8billion.InSeptember2013wepurchased120millionsharesofourSeriesAPreferredStockheld by theUAWRetireeMedical Benefits Trust (NewVEBA) for $3.2billion, which reduced Net income attributable to commonstockholdersby$0.8billion.

(c) IntheyearsendedDecember31,2012and2011weusedthetwoclassmethodforcalculatingearningspershareastheSeriesBPreferredStockwasaparticipatingsecurity.RefertoNote22toourconsolidatedfinancialstatementsforadditionaldetail.

(d) GMFinancialacquiredAllyFinancial'sinternationaloperationsinEuropeandLatinAmericaintheyearendedDecember31,2013.(e) InDecember2013allofourSeriesBPreferredStockautomaticallyconvertedinto137millionsharesofourcommonstock.(f) InDecember2012wepurchased200millionsharesofourcommonstockforatotalof$5.5billion,whichdirectlyreducedstockholder's

equityby$5.1billionandwerecordedachargetoearningsof$0.4billion.

*******

Item7.ManagementsDiscussionandAnalysisofFinancialConditionandResultsofOperations

BasisofPresentation

ThisMD&Ashouldbereadinconjunctionwiththeaccompanyingconsolidatedfinancialstatements.

InthethreemonthsendedMarch31,2014wechangedourmanagerialandfinancialreportingstructuretoreclassifythe

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resultsofourRussiansubsidiariespreviouslyreportedinourGMIOsegmenttoourGMEsegment.Wehaveretrospectivelyrevisedthesegmentpresentationforallperiodspresented.

NonGAAPMeasures

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Managementusesearningsbefore interest and taxes (EBIT)adjusted to review theoperating resultsofour automotivesegmentsbecauseitexcludesinterestincome,interestexpenseandincometaxesandincludescertainadditionaladjustments.GMFinancialusesincomebeforeincometaxesadjustedbecausemanagementbelievesinterestincomeandinterestexpenseare part of operating results when assessing and measuring the operational and financial performance of the segment.ExamplesofadjustmentstoEBITandGMFinancial'sincomebeforeincometaxesincludecertainimpairmentchargesrelatedtogoodwill,otherlonglivedassetsandinvestmentscertaingainsorlossesonthesettlement/extinguishmentofobligationsandgainsorlossesonthesaleofnoncoreinvestments.RefertoNote25toourconsolidatedfinancialstatementsforourreconciliationofthesenonGAAPmeasurestothemostdirectlycomparablefinancialmeasureunderU.S.GAAP.

Managementusesadjustedfreecashflowtoreviewtheliquidityofourautomotiveoperations.Wemeasureadjustedfreecash flow as cash flow from operations less capital expenditures adjusted for management actions, primarily related tostrengtheningourbalancesheet,suchasaccruedinterestonprepaymentsofdebtandvoluntarycontributionstoemployeebenefit plans.Refer to the Liquidity section ofMD&A for our reconciliation of this nonGAAPmeasure to themostdirectlycomparablefinancialmeasureunderU.S.GAAP.

Management uses these nonGAAPmeasures in its financial and operational decision making processes, for internalreporting and as part of its forecasting and budgeting processes as they provide additional transparency of our coreoperations.Thesemeasures allowmanagement to viewoperating trends, perform analytical comparisons and benchmarkperformancebetweenperiodsandamonggeographicregions.

OurcalculationofthesenonGAAPmeasuresmaynotbecomparabletosimilarlytitledmeasuresofothercompaniesduetopotentialdifferencesbetweencompaniesinthemethodofcalculation.AsaresulttheuseofthesenonGAAPmeasureshaslimitationsandshouldnotbeconsideredinisolationfrom,orasasubstitutefor,relatedU.S.GAAPmeasures.

Overview

Ourstrategicplan includesseveralmajor initiatives thatweanticipatewillhelpusachieve9%to10%marginsonanEBITadjustedbasis(EBITadjustedmargins,calculatedasEBITad

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GM 2014 10K