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L. Foulds October 2, 20082008 Paris Auto Show
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 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 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 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 revisethese forward-looking statements to reflect new events or circumstances.
L. Foulds October 2, 20082008 Paris Auto Show
2© 2008 General Motors Corporation. All Rights Reserved
Laurie FouldsExecutive Director, GM Europe Sales,Marketing & Aftersales Finance
Laurie FouldsExecutive Director, GM Europe Sales,Marketing & Aftersales Finance
L. Foulds October 2, 20082008 Paris Auto Show
3© 2008 General Motors Corporation. All Rights Reserved
AgendaAgenda
Current Market Challenges
GME H1 2008 Highlights
Key GME Initiatives – 2008 Status
Conclusion
Current Market Challenges
GME H1 2008 Highlights
Key GME Initiatives – 2008 Status
Conclusion
L. Foulds October 2, 20082008 Paris Auto Show
4© 2008 General Motors Corporation. All Rights Reserved
European Industry Vehicle SAAREuropean Industry Vehicle SAAR
L. Foulds October 2, 20082008 Paris Auto Show
5© 2008 General Motors Corporation. All Rights Reserved
European Industry Regional GrowthEuropean Industry Regional Growth
L. Foulds October 2, 20082008 Paris Auto Show
6© 2008 General Motors Corporation. All Rights Reserved
Challenging European Market ConditionsChallenging European Market Conditions
Significant decline in consumer confidence in key markets– Housing market and credit tightness impacting
consumer behavior in UK
– Inflation concerns dampening German demand
– Severe economic slowdown in Spain
Recent economic events add volatility to emerging economies
Uncertainty over CO2 taxation
Significant decline in consumer confidence in key markets– Housing market and credit tightness impacting
consumer behavior in UK
– Inflation concerns dampening German demand
– Severe economic slowdown in Spain
Recent economic events add volatility to emerging economies
Uncertainty over CO2 taxation
L. Foulds October 2, 20082008 Paris Auto Show
7© 2008 General Motors Corporation. All Rights Reserved
European Industry Vehicle Sales MixEuropean Industry Vehicle Sales Mix
L. Foulds October 2, 20082008 Paris Auto Show
8© 2008 General Motors Corporation. All Rights Reserved
European Market TrendsEuropean Market Trends
Emerging markets (Central Eastern Europe region, including Russia) key drivers of growth
Slow decline in key mature WE markets
Shift in the mix towards fuel efficient vehicles
Continued intense price competition
Intense regulatory pressure
Emerging markets (Central Eastern Europe region, including Russia) key drivers of growth
Slow decline in key mature WE markets
Shift in the mix towards fuel efficient vehicles
Continued intense price competition
Intense regulatory pressure
L. Foulds October 2, 20082008 Paris Auto Show
9© 2008 General Motors Corporation. All Rights Reserved
GME – H1 2008 HighlightsGME – H1 2008 Highlights
All-time record sales of 1,161K units– Increase of 32k units compared to H1 2007
Record Chevrolet sales– 268k units in H1 -- up 24% YOY
Growth in Russia -- up 60% YOY
All-time record sales of 1,161K units– Increase of 32k units compared to H1 2007
Record Chevrolet sales– 268k units in H1 -- up 24% YOY
Growth in Russia -- up 60% YOY
L. Foulds October 2, 20082008 Paris Auto Show
10© 2008 General Motors Corporation. All Rights Reserved
GME Market Share Performance% of Total European MarketGME Market Share Performance% of Total European Market
1st Half Year1st Half Year
L. Foulds October 2, 20082008 Paris Auto Show
11© 2008 General Motors Corporation. All Rights Reserved
GME – Key DataGME – Key Data
H1 ’08H1 ’08
Industry Sales (000’s)
GME Sales (000’s)
GME Share
Revenue ($B)
Adjusted EBT ($B)
Adjusted EBT Margin
Industry Sales (000’s)
GME Sales (000’s)
GME Share
Revenue ($B)
Adjusted EBT ($B)
Adjusted EBT Margin
IncludesChevroletIncludesChevrolet
ExcludesChevroletExcludesChevrolet
Refer to Supplemental Charts in our earnings presentation on GM’s Investor website for reconciliation to GAAP figures
12,227
1,161
9.5%
20.5
0.3
1.5%
12,227
1,161
9.5%
20.5
0.3
1.5%
11,848
1,129
9.5%
18.0
0.4
2.3%
11,848
1,129
9.5%
18.0
0.4
2.3%
+3.2%
+2.8%
~ flat
+13.9%
(0.1)
(0.8) p.p.
+3.2%
+2.8%
~ flat
+13.9%
(0.1)
(0.8) p.p.
’08O/(U)
’07
’08O/(U)
’07H1 ’07H1 ’07
L. Foulds October 2, 20082008 Paris Auto Show
12© 2008 General Motors Corporation. All Rights Reserved
GME Adjusted Earnings Before TaxH1 AnalysisGME Adjusted Earnings Before TaxH1 Analysis
Refer to Supplemental Charts in our earnings presentation on GM’s Investor website for reconciliation to GAAP figures
L. Foulds October 2, 20082008 Paris Auto Show
13© 2008 General Motors Corporation. All Rights Reserved
Key GME Initiatives – 2008 StatusKey GME Initiatives – 2008 StatusExcellence in product execution
Multi-brand strategy– Continuing Chevrolet growth
Growth focused on Central & Eastern European markets and Russia
Systematic revenue and contribution margin management
Restructuring of cost footprint
Excellence in product execution
Multi-brand strategy– Continuing Chevrolet growth
Growth focused on Central & Eastern European markets and Russia
Systematic revenue and contribution margin management
Restructuring of cost footprint
L. Foulds October 2, 20082008 Paris Auto Show
14© 2008 General Motors Corporation. All Rights Reserved
GME Performance in Central & Eastern Europe Region Exceeding IndustryGME Performance in Central & Eastern Europe Region Exceeding Industry
L. Foulds October 2, 20082008 Paris Auto Show
15© 2008 General Motors Corporation. All Rights Reserved
GME – Emerging Markets (Russia)GME – Emerging Markets (Russia)
L. Foulds October 2, 20082008 Paris Auto Show
16© 2008 General Motors Corporation. All Rights Reserved
Chevrolet in EuropeChevrolet in Europe
L. Foulds October 2, 20082008 Paris Auto Show
17© 2008 General Motors Corporation. All Rights Reserved
Revenue and Contribution Margin InitiativesRevenue and Contribution Margin Initiatives
Improving quality of sales– Focus on retail and profitable fleet sales
– Focus on Residual Value by resizingshort-cycle volume
Growth via portfolio renewal– Insignia flagship, first in wave of new
Opel products
Improving quality of sales– Focus on retail and profitable fleet sales
– Focus on Residual Value by resizingshort-cycle volume
Growth via portfolio renewal– Insignia flagship, first in wave of new
Opel products
L. Foulds October 2, 20082008 Paris Auto Show
18© 2008 General Motors Corporation. All Rights Reserved
Quality Continuously ImprovingCustomer ComplaintsQuality Continuously ImprovingCustomer Complaints
Source: Internal customer survey/Top 5 major markets in Europe
L. Foulds October 2, 20082008 Paris Auto Show
19© 2008 General Motors Corporation. All Rights Reserved
GME Manufacturing Capacity Distribution% of Finished Unit Production CapacityGME Manufacturing Capacity Distribution% of Finished Unit Production Capacity
2006 12006 1 2008 22008 2
1 Opel/Vauxhall, SAAB, GM-Avtovaz 2 Includes GM-Uzbekistan and FSO
L. Foulds October 2, 20082008 Paris Auto Show
20© 2008 General Motors Corporation. All Rights Reserved
Headcount DevelopmentHeadcount Development
L. Foulds October 2, 20082008 Paris Auto Show
21© 2008 General Motors Corporation. All Rights Reserved
Productivity ImprovementProductivity Improvement
L. Foulds October 2, 20082008 Paris Auto Show
22© 2008 General Motors Corporation. All Rights Reserved
ConclusionConclusion
Short-term focusImprovement in quality of sales
Excellent execution of Insignia launch
Mid-term focusNext wave of portfolio renewalContinued growth under the multi-brandmodel with emphasis on the Emerging Markets
Realignment of the cost footprintRe-inventing the automobile
Short-term focusImprovement in quality of sales
Excellent execution of Insignia launch
Mid-term focusNext wave of portfolio renewalContinued growth under the multi-brandmodel with emphasis on the Emerging Markets
Realignment of the cost footprintRe-inventing the automobile
L. Foulds October 2, 20082008 Paris Auto Show
23© 2008 General Motors Corporation. All Rights Reserved