Tim LeePresident, GM International Operations

World’s Emerging Markets

2

“The equalizer of missed opportunities”

¶ Leaner company with a healthy balance sheet and a global focus

¶ Six consecutive quarters of profitability

¶ Sales and market share are increasing

¶ Growing focus on South Africa

The New GM

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Seismic Shift in Industry Demand

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¶ U.S., Western Europe and Japan drove growth in the industry’s first century

¶ Emerging markets are driving growth today

¶ In 2010, China set a new global industry sales record

GM International Operations

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Emerging Markets

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¶ Nominal GDP per capita below $10,000-15,000

¶ Growing personal incomes and rising middles classes

¶ New middle classes are driving demand for four-wheel transportation

¶ Huge opportunity as customers and as a source of talent

Nominal GDP Per Capita

97

31

35 49

31

148

2 143947New Vehicle Sales Per 1,000 People

2000 2010Country

Prosperity & Vehicle Sales

8

Country Car Parc /1,000 People

U.S. 812

Australia 717

China 57

Egypt 32

India 18

Japan 548

Korea 347

Russia 265

S. Africa 171

Vehicle Ownership

¶ Government policies that can change quickly

¶ Varying legal systems

¶ Popular unrest and rapidly changing political situations

¶ Varying industry standards

¶ Macroeconomics risks

¶ Poor infrastructure

¶ Fluctuating petroleum prices

Emerging Market Challenges

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No “Silver Bullet”

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India

S. Africa

China

Russia

S. Korea

Thailand

Indonesia

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Top Models/Segments (H1 2011)

Share of Industry

Toyota Avanza

Suzuki Alto

Hyundai Elantra

Lada Nova

VW Polo Vivo

Isuzu TFR

Hyundai Sonata

MPV-B (Small MPV)

Pickup-D (Medium Pickup)

Car-D (Midsize)

Car-C (Compact)

Car-C (Compact)

Car-B (Small)

Car-A (Mini)

Number 1 in BRIC Markets

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12.2% Market Share

¶ Signed an agreement with SAIC to co-develop a new electric vehicle architecture, opened the GM China Advanced Technical Center and broke ground for a new manufacturing plant

¶ Moving forward on a joint venture with SAIC and began production of a locally developed diesel engine at our new powertrain plant 

¶ Opened a new engine plant and began production of the next-generation Chevrolet Colorado pickup

¶ Announced we will reopen our vehicle manufacturing plant

¶ Expanding production capacity to about 350,000 units annually

¶ Preparing to begin commercial production at our new engine plant

GM is Not Sitting Still

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CompactCar-C

SmallCar-B

MiniCar-A

7.7M

5.4M

4.0M Spark/Spark Lite Spark/Beat

Excelle Cruze Volt Baojun 630

New Sail Aveo/Sonic

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Focus on Key Segments

Product Development Strategy

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GLOBAL ARCHITECTURES

1Chevrolet Cruze Chevrolet Sonic Chevrolet Spark

Product Development Strategy

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REGIONAL SOLUTIONS

2

GLOBAL ARCHITECTURES

1

Chevrolet Tavera Chevrolet Niva

Chevrolet Cruze Chevrolet Sonic Chevrolet Spark

Chevrolet Utility

Product Development Strategy

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PARTNER COLLABORATION

3

REGIONAL SOLUTIONS

2

GLOBAL ARCHITECTURES

1

Chevrolet New Sail

Chevrolet Tavera Chevrolet Niva

Chevrolet Cruze Chevrolet Sonic Chevrolet Spark

Chevrolet Utility

International

Global

Regional

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GMIO Brands

Electrification

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Chevrolet Volt Buick LaCrosse with eAssist

¶ Key component of GM’s emerging market strategy

¶ GM began doing business in South Africa nearly a century ago

¶ Sold nearly 55,000 vehicles in 2010, for market share of over 11%

¶ Sold more than 50,600 vehicles in the first nine months of 2011

South Africa

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¶ GM North Africa– Includes Libya, Algeria, Tunisia, Morocco, Western

Sahara and Mauritania– Integrated into Egypt operations

¶ GM Sub-Saharan Africa– Includes central and southern Africa– Integrated into South Africa operations

¶ Will enable GM to leverage resources across Africa and GMIO’s growing footprint

¶ Launching important new assembly programs

New Beginning in Africa

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New Chevrolet Utility

Growing Investment in South Africa

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Chevrolet Sonic Hatch

Growing Investment in South Africa

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Vehicle Conversion & Distribution Center

Growing Investment in South Africa

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Parts Distribution Center

¶ Invested over R 100 million in scholarship programs, supporting 2,000 students annually

¶ Partnered with Nelson Mandela Metropolitan University to develop key skills

¶ GM South Africa Foundation is contributing to education and housing improvements

Growing Investment in South Africa

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¶ Competing with other BRICS and other emerging markets globally

¶ South Africa accounts for less than 1% of global industry sales

South Africa Faces Competition

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Becoming Globally Competitive

26Establish clear and stable rules for investment and expansion

Becoming Globally Competitive

27Develop high-volume, world-class suppliers

Becoming Globally Competitive

28Establish free and preferential trade agreements

Becoming Globally CompetitiveNo. of Days Lost Due to Strikes -2009

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Address the labour issue

South Africa

Spain USA Poland Russia0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

Mill

ions

20.6 million days were lost in South Africa in 2010

Source: European Industrial Relations Observatory

Becoming Globally Competitive

30Increase investment in education

Becoming Globally Competitive

31Develop stable, cost-competitive infrastructure

¶ Market and volume opportunities

¶ Competitiveness of sourcing

¶ Future prospects

Factors Influencing Investment

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¶ Emerging markets are the driving force and have created new opportunities

¶ Winners will be companies that capitalize on opportunities and offer quality products and new technology

Automotive Industry Has Changed

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South Africa Can Become a Leader

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THANK YOU

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