2. Forward Looking Statements
In this presentation and in related comments by our management, our use of the words “expect,” “anticipate,” “estimate,”
“goal,” “target,” “believe,” “improve,” “intend,” “potential,” “continue,” “designed,” “opportunity,” “risk,” “may,” “would,”
“could,” “should” or the negative of any of those words 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. Such factors include, among others, the following: our ability to realize
production efficiencies, to achieve reductions in costs as a result of the turnaround restructuring and health care cost
reductions and to implement capital expenditures at levels and times planned by management; market acceptance of our
products; significant changes in the competitive environment and the effect of competition in our markets, including on our
pricing policies; our ability to maintain adequate liquidity and financing sources and an appropriate level of debt; shortages
of and price increases for fuel; adoption of new laws or changes in existing laws that may affect the production, licensing,
distribution, cost or sale of our products; the final results of investigations and inquiries by the SEC and other
governmental agencies; changes in GMAC’s ability to make distributions on the Preferred Membership Interests we hold;
completion of the final settlement with the UAW and UAW retirees, including obtaining court approval in a form acceptable
to us, the UAW, and class counsel; treatment of the terms of the 2006 Settlement Agreement pursuant to the Retiree
MOU in a form acceptable to us, the UAW and class counsel; our completion of discussions with the staff of the SEC
regarding accounting treatment with respect to the New VEBA and the Post-Retirement Medical Benefits for the Covered
Group as set forth in the Retiree MOU, on a basis reasonably satisfactory to us; and as applicable, a determination by us
that the New VEBA satisfies the requirements of section 302(c)(5) of the Labor-Management Relations Act of 1947, as
amended (LMRA), as well as bank and other regulatory approval; and changes in economic conditions, commodity prices,
currency exchange rates or political stability in the markets in which we operate. In addition, GMAC’s actual results may
differ materially due to numerous important factors that are described in GMAC’s most recent report on SEC Form 10-K,
which may be revised or supplemented in subsequent reports on SEC Forms 10-K, 10-Q, and 8-K. The factors identified
by GMAC include, among others, the following: possible downgrades for GMAC or ResCap by rating agencies; inability to
maintain adequate financing sources for its substantial capital needs; credit exposure to us and recent developments in
the residential mortgage market, especially in the nonprime sector. The most recent reports on SEC Forms 10-K, 10-Q or
8-K filed by us or GMAC provide information about these and other factors, which may be revised or supplemented in
future reports to the SEC on those forms.
1
3. Fourth Quarter & Calendar Year Highlights
Fourth Quarter
• GAAP net loss of $(0.7)B, $(1.28) EPS
• Adjusted net income of $46 million, $0.08 EPS, excluding special items
including significant unfavorable items related to Delphi
• Adjusted automotive earnings before tax (EBT) down $0.8B
• Total automotive revenue of $46.7B, an all-time record
• Adjusted automotive operating cash flow (OCF) of $(1.3)B
Calendar Year
• GAAP net loss of $(38.7)B, $(68.45) EPS due principally to Q3 charge of
$(38.3)B for valuation allowance taken against deferred tax assets
• Adjusted net loss of $(23) million, or $(0.04) EPS
• Adjusted automotive EBT improved $0.9B on strength of GMLAAM and GMAP
• Global market share of 13.3%, down 0.2 p.p. vs. CY 2006
– Share outside North America of 9.5%, up 0.4 p.p. vs. CY 2006
• Adjusted automotive OCF of $(2.4)B, improved $2.0B vs. CY 2006
• Year-end gross automotive liquidity of $27.3B
2
4. Calendar Year 2007 Adjusted Results
2007 F/(U)
($ Millions) 2005 2006 2007 2006
GMNA $ (7,431) $ (1,626) $ (1,535) $ 91
GME (460) 357 55 (302)
GMLAAM 197 561 1,348 787
GMAP 438 403 744 341
Auto Eliminations (51) (34) (59) (25)
Total Auto Earnings Before Tax (7,307) (339) 553 892
GMAC Earnings Before Tax 4,189 2,208 (1,147) (3,355)
Corp. Other Earnings Before tax (1,392) (1,241) (776) 465
Total Earnings Before Tax/(Loss) (4,510) 628 (1,370) (1,998)
Taxes 992 1,103 1,091 (12)
Total Net Income/(Loss) from Cont. Ops. (3,518) 1,731 (279) (2,010)
Discontinued Ops. - Allison Transmission 313 445 256 (189)
Total GM Net Income/(Loss) (3,205) 2,176 (23) (2,199)
EPS from Cont. Ops $ (6.22) $ 3.06 $ (0.49) $ (3.55)
EPS from Disc. Ops 0.55 0.79 0.45 $ (0.34)
Total EPS (Basic) $ (5.67) $ 3.85 $ (0.04) $ (3.89)
Total EPS (Diluted) $ (5.67) $ 3.84 $ (0.04) $ (3.88)
Worldwide Production (000's) 9,051 9,181 9,286 105
Global Market Share 14.1% 13.5% 13.3% (0.2) p.p.
Refer to Supplemental Charts for reconciliation to GAAP figures 3
5. Fourth Quarter Adjusted Results
2007 F/(U)
($ Millions) 2006 2007 2006
GMNA $ (129) $ (1,060) $ (931)
GME (12) (215) (203)
GMLAAM 76 424 348
GMAP 105 72 (33)
Auto Eliminations (32) (24) 8
Total Auto Earnings Before Tax 8 (803) (811)
GMAC Earnings Before Tax (508) (394) 114
Corp. Other Earnings Before tax (146) (383) (237)
Total Earnings Before Tax/(Loss) (646) (1,580) (934)
Taxes 731 1,626 895
Total Net Income/(Loss) from Cont. Ops. 85 46 (39)
Discontinued Ops. - Allison Transmission 95 - (95)
Total GM Net Income/(Loss) 180 46 (134)
EPS from Cont. Ops $ 0.15 $ 0.08 $ (0.07)
EPS from Disc. Ops 0.17 - $ (0.17)
Total EPS (Basic) $ 0.32 $ 0.08 $ (0.24)
Total EPS (Diluted) $ 0.32 $ 0.08 $ (0.24)
Worldwide Production (000's) 2,274 2,380 106
Global Market Share 13.3% 13.1% (0.2) p.p.
Refer to Supplemental Charts for reconciliation to GAAP figures 4
6. Fourth Quarter Taxes
• In Q3 2007 GM established valuation allowance for deferred tax assets
in the U.S., Germany and Canada
• In Q4 2007 GM re-measured pension and OPEB liabilities, resulting in
pension and OPEB related gains in Other Comprehensive Income (OCI)
– Gain in OCI generated tax related liability on balance sheet
• SFAS 109 sets forth guidelines for intra-period tax allocation, and
requires that tax expense on discontinued operations and OCI be
reduced to the level of tax benefit in continuing operations
• Since GM had a significant current year net operating loss and had tax
expense on OCI and discontinued operations, tax benefit is recognized
even when a valuation reserve is established
• As a result, GM recorded tax benefit of $1.6B in continuing operations
5
7. Adjustments to Income
($ Millions) Q4 CY
Adjusted Net Income (Loss) 46 (23)
Pre-Tax Adjustments
Delphi reserve (622) (1,547)
Delphi employee pension benefits (552) (552)
Restructuring related (290) (918)
Pension prior service - (1,561)
Impairments / Other (126) (187)
Tax-related Adjustments
DTA valuation allowance - (38,300)
Tax on regional special items 17 47
Discontinued Ops - Allison gain on sale 805 4,309
Total Adjustments (768) (38,709)
GAAP Net Loss (722) (38,732)
Exclusion of special items useful for:
• Management to measure operations
• Comparisons between reporting periods
• Investors to measure and assess company’s core performance
6
8. Fourth Quarter Allison-related Special Item
• As a result of the intra-period tax allocation, tax expense on the
Allison discontinued operations was reduced by $0.8B
• Change in tax expense allocation to discontinued operations results in
final net after-tax gain on sale of Allison of $4.3B
– Final tax on transaction of $1.0B vs. $1.8B previously calculated
• Additional pre-tax special item of $(25) million related to Allison gain
on sale due largely to purchase price adjustment related to post-
closing working capital adjustments
7
9. Fourth Quarter Delphi-related Special Items
• GM recorded Q4 charge of $622 million as result of amendments to
the GM-Delphi Settlement Agreements, support of Delphi’s sale
businesses, updated estimates of Delphi retiree healthcare costs and
possible support based on ongoing discussions with Delphi
– Total of approximately $7.5B in Delphi-related charges taken to date
• Estimate for combined annual labor-related and transitional payments
revised downward $100 million, to between $300-400 million thru 2015
– To be recognized in the future as incurred
• Additional Q4 charge of $552 million taken to reflect GM agreement to
pay pension benefit increases granted in 2007 GM-UAW labor contract
to Delphi employees and retirees/surviving spouses
– Non-cash in nature since GM pension plan to absorb payment obligations
– Expensed upfront instead of amortized since payments to be made to
individuals not part of the GM pension plan
8
10. Delphi Update
• Bankruptcy Court approved Delphi’s Disclosure Statement in December
– Included amendments to the GM-Delphi Settlement Agreements, whereby
GM agreed to accept a reduction in preferred stock recovery from
$1.2 billion to $1.0 billion at Plan of Reorganization Value
• Bankruptcy Court confirmed Delphi’s Plan of Reorganization in January
• Delphi currently seeking exit financing to support Plan consummation
– Market conditions causing difficulty in obtaining planned financing levels
– GM is exploring alternatives with Delphi in the event that the planned
financing level is not achieved
9
11. Fourth Quarter Other Items
• $0.3B of restructuring special items, largely related to GME
– Approximately $0.2B related to separation programs implemented
in Belgium, Germany and Sweden
– Balance of approximately $0.1B in GMNA largely related to
adjustments to plant closing reserve
• $0.1B or impairment/other special items primarily related
to vehicle-specific asset impairments in GMNA
• Corporate Other deteriorated by about $0.2B vs. Q4 2006
– Approximately $(0.1)B related to higher central office expense
– Approximately $(0.1)B related to increased legacy expense related
to additional Delphi flowbacks and continued health care inflation
10
12. GMNA Fourth Quarter Adjusted Results
2007 F/(U)
($ Millions) 2006 2007 2006
Revenue $28,516 $28,121 ($395)
Earnings Before Tax/(Loss) (129) (1,060) (931)
Earning Before Tax Margin (0.5)% (3.8)% (3.3) p.p.
North America:
- Production Volume (000) 1,107 1,042 (65)
- Market Share 23.2% 22.7% (0.5) p.p.
United States:
- Industry SAAR (Mil.) 16.9 16.5 (0.4)
- Market Share 23.6% 23.1% (0.5) p.p.
- Retail/Fleet Mix - % Fleet 25.8% 23.9% 1.9 p.p.
- Dealer Inventory (000) 1,055 908 147
Excludes results from Allison Transmission, now recorded as Discontinued Operations 11
13. GMNA Vehicle Revenue Per Unit
$23,000
Calendar Year Fourth Quarter
21,915
$22,000
21,487
Net Revenue
Gross Revenue less
$21,000
Sales Incentives
20,779
20,204
$20,000 20,189
19,417 19,759
Memo:
19,425 19,500
Q3 ’07 $21,605
$19,000
19,160 Q2 ‘07 $21,375
Q1 ’07 $21,072
$18,000
CY '03 CY '04 CY '05 CY '06 CY '07 Q4 '03 Q4 '04 Q4 '05 Q4 '06 Q4 '07
Vehicle revenue per unit excludes items such as daily rental accounting impact, Service Parts, OnStar, other outside sales
Adjusted to remove Allison. Refer to Supplemental Charts for reconciliation to GAAP figures 12
14. GMNA Adjusted EBT – Q4 2007 vs. Q4 2006
$ Billions – Continuing Operations Only Q4 (0.3) ~40k unit dealer
stock reduction
2006 Earnings Before Tax $(0.1) (0.2) ~30k unit daily
rent decline
Volume (0.5) (0.1) ~20k unit lower
U.S. industry
Mix 0.3
Larger stock adjust for
Price (0.4) higher full-size PU
inventory vs. Q4 2006
Material / Other Contribution Cost (0.1)
0.3 Mfg performance
Policy & Warranty / Campaigns 0.0 (0.2) Pension increase
due to labor contract
Pension / OPEB / Manufacturing 0.0 (0.1) Foreign exchange
Engineering / Exchange / Other (0.3) (0.3) Commodity
hedging
2007 Earnings Before Tax $(1.1) (0.2) Engineering
0.2 Other
Excludes results from Allison Transmission, now recorded as Discontinued Operations 13
15. GMNA Adjusted EBT – CY 2007 vs. CY 2006
(1.0) ~160k unit dealer
$ Billions – Continuing Operations Only CY stock reduction
(0.7) ~108k unit daily
2006 Earnings Before Tax $(1.6) rent decline
(0.5) ~80k unit lower
U.S. industry
Volume (2.7)
(0.5) GM share decline
Mix 2.0 1.5 Model & option mix
0.4 Product mix
Price 0.4
Material performance
Material / Other Contribution Cost (0.6) more than offset by
(1.0) Steel & non-ferrous
Policy & Warranty / Campaigns (0.5) 1.8 Pension/OPEB
Pension / OPEB / Manufacturing 2.8 1.0 Mfg productivity &
attrition
Engineering / Exchange / Other (1.3) (0.6) Engineering
(0.5) Commodity hedging
2007 Earnings Before Tax $(1.5) (0.3) Foreign exchange
Excludes results from Allison Transmission, now recorded as Discontinued Operations 14
16. Overview of Other Regions
• GM automotive revenue up 23% in regions outside of North America in Q4
– 40% of revenue and 54% of unit sales generated outside GMNA; 61% of unit sales
generated outside the U.S.
• GM market share gains continue outside GMNA, up 0.3 p.p. and 0.4. p.p. for
Q4 and CY, respectively
• GME volume and share both up in Q4, despite weakness in Germany which
led to financial losses
– GM was the fastest growing manufacturer in Europe in 2007
– Q4 volume and share in Russia up 89% and 2.6 p.p., respectively
– Robust Chevrolet growth due to continued strong imports from GMDAT
(significant GMDAT operating profit attributable to sales in Europe)
• GMLAAM revenue up over 50% and earnings before tax up over five-fold vs.
Q4 2006, on continued strong industry growth and pricing environment
• GMAP continues to deliver strong volume and share growth, but with
moderating financial results in Q4 due largely to cost increases to support
continued strong product development
– GM volume and share in China up 22% and 0.6 p.p., respectively
15
17. GME Fourth Quarter Adjusted Results
2007 F/(U)
($ Millions) 2006 2007 2006
Revenue $8,998 $10,692 $1,694
Earnings Before Tax/(Loss) (12) (215) (203)
Earning Before Tax Margin (0.1)% (2.0)% (1.9) p.p.
Total Europe:
- Production Volume (000) 443 457 14
- Industry SAAR (Mil.) 22.4 24.1 1.7
- Market Share 9.1% 9.3% 0.2 p.p.
Germany:
- Industry SAAR (Mil.) 4.1 3.6 (0.5)
- Market Share 10.1% 9.4% (0.7) p.p.
UK:
- Industry SAAR (Mil.) 2.7 2.8 0.1
- Market Share 14.4% 15.4% 1.0 p.p.
Russia:
- Industry SAAR (Mil.) 2.2 3.1 0.9
- Market Share 7.5% 10.1% 2.6 p.p.
16
18. GME Adjusted EBT – 2007 vs. 2006
$ Billions Q4 CY
2006 Earnings Before Tax $(0.0) $0.4
German Market Impact (0.3) (0.6)
Foreign Exchange (0.1) (0.1)
Volume / Mix / Price (ex. Germany) 0.1 0.4
Material / Structural Cost 0.2 0.2
Other (0.1) (0.2)
2007 Earnings Before Tax $(0.2) $0.1
17
19. GMLAAM Fourth Quarter Adjusted Results
2007 F/(U)
($ Millions) 2006 2007 2006
Revenue $3,975 $6,040 $2,065
Earnings Before Tax/(Loss) 76 424 348
Earning Before Tax Margin 1.9% 7.0% 5.1 p.p.
Total LAAM:
- Production Volume (000) 215 253 38
- Industry SAAR (Mil.) 6.2 7.4 1.2
- Market Share 17.9% 17.6% (0.3) p.p.
Brazil:
- Industry SAAR (Mil.) 2.1 2.7 0.6
- Market Share 21.0% 19.9% (1.1) p.p.
Argentina:
- Industry SAAR (Mil.) 0.45 0.6 0.15
- Market Share 17.3% 15.3% (2.0) p.p.
ANDEAN Markets
- Industry SAAR (Mil.) 0.9 1.1 0.2
- Market Share 29.8% 30.4% 0.6 p.p.
18
20. GMAP Fourth Quarter Adjusted Results
2007 F/(U)
($ Millions) 2006 2007 2006
Revenue $4,502 $5,534 $1,032
Pre-Tax Income/(Loss) 71 13 (58)
China JVs Equity Income 86 90 4
Minority Interest (52) (31) 21
Earnings Before Tax/(Loss) 105 72 (33)
Earnings Before Tax Margin 2.3% 1.3% (1.0) p.p.
Total Asia Pacific:
- Industry SAAR (Mil.) 20.2 21.7 1.5
- Market Share 6.6% 7.1% 0.5 p.p.
China:
- Industry SAAR (Mil.) 8.1 9.2 1.1
- Market Share 11.4% 12.0% 0.6 p.p.
Australia:
- Industry SAAR (Mil.) 0.9 1.1 0.2
- Market Share 15.6% 13.0% (2.6) p.p.
GM-DAT:
- Production (Complete Build Units) 201 250 49
19
21. GM China Results
• China industry continues to show explosive growth, with volume up
20% in CY 2007 vs. CY 2006
• GM, with its joint venture partners, became first manufacturer to sell
over 1 million units in China in 2007
– GM volume up 18% in CY 2007, and up 22% in Q4 2007 (ahead of industry
growth in Q4 of 16%)
• GM realized $425 million of equity income in GMAP in 2007, principally
driven by its China joint ventures
• GM will continue to work aggressively to keep pace with industry
– Focus on leveraging multiple brands and mid-cycle product updates; five
new/updated products to launch across four brands in 2008
• Capital spending at GM’s China JVs expected to total approximately
$1B/year thru 2010 in support of continued strong product and
technology development
20
22. GMAC CY & Fourth Quarter Overview
Fourth Quarter
• GMAC reported $(0.7)B net loss due to continued ResCap losses
– ResCap net loss of $(0.9)B driven by asset write downs/impairments,
restructuring costs and weaker consumer
– Global Auto Finance remained profitable, but reported lower results due to
lower gain on sale of receivables in North America and write downs
– Insurance results down predominantly due to lower capital gains, as
significant one-time gains were realized in the prior period
• Earnings before tax as realized by GM was loss of $(0.4)B
Calendar Year
• GMAC reported $(2.3)B net loss due entirely to ResCap loss of $(4.3)B
– Global Automotive Finance up over $0.2B or almost 20% vs. CY 2006
• Earnings before tax as realized by GM was loss of $(1.1)B
• GMAC ended 2007 with liquidity of $22.7B
21
23. GMAC Fourth Quarter Business Line Results
2007 F/(U)
($ Millions) 2006 2007 2006
Global Automotive Finance $ 593 $ 137 $ (456)
Insurance 735 68 (667)
Other* (184) (8) 176
Sub-Total Net Income/(Loss) $ 1,144 $ 197 $ (947)
ResCap (128) (921) (793)
Total Net Income/(Loss) $ 1,016 $ (724) $ (1,740)
Memo:
LLC conversion impact $ 791 $ - $ (791)
Capital gains 570 - (570)
Restructuring charges - (131) (131)
* Includes GMAC Commercial Finance and equity interest in Capmark
22
24. GMAC Calendar Year Business Line Results
2007 F/(U)
($ Millions) 2006 2007 2006
Global Automotive Finance $ 1,243 $ 1,485 $ 242
Insurance 1,127 459 (668)
Other* (950) 70 1,020
Sub-Total Net Income/(Loss) $ 1,420 $ 2,014 $ 594
ResCap 705 (4,346) (5,051)
Total Net Income/(Loss) $ 2,125 $ (2,332) $ (4,457)
Memo:
LLC conversion impact $ 791 $ - $ (791)
Goodwill impairments (695) (455) 240
Capital gains 570 - (570)
Restructuring charges - (131) (131)
* Includes GMAC Commercial Finance and equity interest in Capmark
23
25. GMAC Summary & Outlook
• Losses in Q4 2007 smaller than those in Q3 2007, showing that
actions undertaken in 2007 are starting to produce results
– Restructured ResCap
– Tightened lending standards
– Reduced balance sheet
– Accelerated Auto Finance “originate to distribute” model
– Took appropriate impairments and reserves
– Holding cash at high levels
• GMAC and ResCap are refocusing on core strengths
– Maintaining scalable platforms to capitalize on larger share of retail and
commercial auto finance and utilize exclusive relationship with GM
• GMAC is forecasting to return to profitability in 2008
• GMAC liquidity is at relatively high historical levels and GM believes
that GMAC remains adequately capitalized
24
26. GM Automotive Liquidity Position
• Strong gross automotive liquidity position of $27.3B at
year-end 2007
– Includes $0.6B of readily-available VEBA assets
(i.e. short-term VEBA)
– Represents increase of $0.9B from year-end 2006
• Reflects proceeds from sale of Allison Transmission, partially offset
by negative adjusted automotive OCF and other non-operating flows
• Net automotive liquidity of $(12.1)B at year-end 2007,
in-line with year-end 2006
25
28. Fourth Quarter Key Cash Flow Drivers
• Q4 2007 adjusted automotive OCF of $(1.3)B primarily
driven by negative EBT, traditionally higher capital
expenditures, and ongoing legacy payments
– Partially offset by seasonally favorable working capital
performance
• CY 2007 adjusted automotive OCF of $(2.4)B, an
improvement of $2.0B vs. CY 2006
– Second consecutive year-over-year improvement in OCF at all
four GM regions
– Year-over-year performance driven primarily by lower sales
allowance and net rental car payments
27
29. Automotive Cash Flow Summary
($ Billions) 2006 2007
Operating Related Q4 CY Q4 CY
Earnings Before Tax (Automotive & Corp/Other) * 0.3 (7.3) (2.9) (5.5)
Depreciation & Amortization 2.1 8.1 2.2 8.3
Capital Expenditures (2.4) (7.5) (2.6) (7.5)
Change in Receivables, Payables & Inventory 0.2 (0.8) 0.4 (0.5)
Pension/OPEB Expense (Net of Payments) (1.1) 3.4 (0.3) (0.5)
DC VEBA - (1.0) - (1.0)
Accrued Expenses & Other 1.2 0.7 1.9 4.3
Adjusted Operating Cash Flow 0.3 (4.4) (1.3) (2.4)
Allison Operating Cash Flow - Discontinued Operations 0.1 0.6 - 0.2
Proceeds from Sale of Allison - - - 5.4
Proceeds from Other Asset Sales 0.3 2.5 - 0.1
Cash Restructuring Costs (0.6) (2.3) (0.4) (1.4)
Delphi - Cash Restructuring Costs (0.2) (0.4) - (0.3)
Adj. Operating Cash Flow after Special Items (0.1) (4.0) (1.7) 1.6
Non-Operating Related
VEBA Withdrawals 0.1 4.1 2.7 2.7
Dividends (0.1) (0.6) (0.1) (0.6)
Change in Debt 1.7 1.6 (0.9) (0.6)
GMAC Purchase Price Adjustment - - - (1.0)
GMAC Transaction Proceeds 10.1 10.1 - -
Preferred Equity Investment in GMAC (1.4) (1.4) - -
GM-GMAC Intercompany Exposures (3.1) (3.1) - -
GMAC Dividends - 1.9 - -
GMAC Lease Asset Carve-out 0.1 0.1 0.2 0.9
Change in ST VEBA - (1.3) (2.9) (1.9)
Other (1.3) (1.4) 0.1 (0.2)
Total Non-Operating Related 6.1 10.0 (0.9) (0.7)
Net Change in Cash and Cash-related 6.0 6.0 (2.6) 0.9
* Earnings before Tax from Continuing Operations
Refer to Supplemental Charts for reconciliation to GAAP figures 28
30. Accrued Expenses and Pension/OPEB
• Accrued Expenses and Other reflects timing of cash flows vs. accruals
2006 2007
($ Billions) Q4 CY Q4 CY
Net Interest Accruals/ (Payments) 0.3 0.2 0.2 0.0
Net Sales Allowances (0.2) (1.6) (0.3) 0.0
Net Daily Rental Sales (0.4) (1.1) 0.1 (0.1)
Net P&W Accruals/ (Payments) 0.0 (0.1) 0.1 0.7
Non-Cash Charges 0.4 2.8 1.4 3.0
Net Tax Refunds/ (Payments) & Other 1.1 0.5 0.4 0.7
Total Accrued Expenses & Other 1.2 0.7 1.9 4.3
• Net variance related to Pension/OPEB driven primarily by lower net
pension and OPEB expense
($ Billions) 2006 2007
Q4 CY Q4 CY
Pension Expense/ (Income) (0.1) 4.9 0.2 1.7
Pension Contributions/ Payments (0.6) (1.3) (0.2) (0.9)
US OPEB Expense 0.5 3.3 0.5 2.1
US OPEB Payments (0.9) (3.7) (0.9) (3.6)
Other Pension/ OPEB Adjustments (0.0) 0.2 0.1 0.2
Total Pension/OPEB Expense (1.1) 3.4 (0.3) (0.5)
(Net of Payments)
29
31. U.S. Pension Expense
2006 2007 2008
($ Billions) Actual Actual Outlook
U.S. Pension Expense / (Income) 1 (0.6) (1.1) (1.4)
Related Interest Expense 1.0 1.1 1.1
Total Expense / (Income) 0.4 0.0 (0.3)
YE Funded Status 2 17.1 20.0 N/A
- Hourly 11.6 11.8
- Salaried 5.5 8.2
YE Discount Rate (%) 5.90% 6.35% N/A
3
Actual Asset Returns (%) 15.2% 10.7% 8.5%
2
Contributions 0.0 0.0 0.0
1
FAS 87 expense
2
Reflects U.S. Hourly and Salaried Pension Plans only
3
2008 assumption
30
32. U.S. Health Care Spending & OPEB Expense
($ Billions) 2006 2007 2008
Actual Actual Outlook
Assumptions
Year-end Discount Rate 5.90% 6.35% N/A
1
OPEB Health Care Trend Rate 10.00% 9.00% 8.25%
U.S. OPEB Expense 3.3 2.1 2.1
OPEB Liability 64.6 59.5 -
VEBA Assets 16.9 16.3 -
Net Liability 47.7 43.2 -
U.S. Health Care Cash Payments
Active 1.5 1.3 1.3
Retired 3.3 3.3 3.3
Total Cash 4.8 4.6 4.6
3
Mitigation VEBA contributions 1.0 1.0 0.0
1
OPEB trend rate in initial year; ultimate trend rate assumed to be 5.0% in six years
2
OPEB liabillity and expense reflect UAW & IUE legal service benefit for all years
3
Excludes $450 million Delphi-related payment to UAW to be paid into Mitigation VEBA
31
33. GM-UAW Healthcare Settlement Update
• Negotiations with the UAW and Class Counsel
progressing well
– Expect to complete negotiations and file Settlement Agreement
with court shortly
– Do not anticipate delays in court approval process
• Agreement in principle on two developments
– $4B short term note
– Restructuring of the $4.4B convertible note set out in the MOU
32
34. $4 Billion Short Term Note
• In Q4 2007 GM withdrew $2.7B from its VEBA,
representing residual salaried and hourly 2006 Healthcare
PAYGO capacity
– Post withdrawal, UAW-related portion of the hourly VEBA estimated
at $14.5B as of year-end 2007
• Under GM-UAW MOU, agreement to set aside $18.5B
upfront
• Agreement in principle with UAW and Class Counsel to
fund the difference of approximately $4B by way of short-
term note maturing January 2010 with 9% interest
• Win-Win for both UAW, GM and plan participants
– GM enhances interim liquidity
– UAW and plan participants receive 9% interest
33
35. Restructuring $4.4B UAW Convertible
• UAW and Class Counsel approached GM for adjustment to terms of
convertible note
• In spirit of cooperation, as part of the overall settlement agreement process
GM agreed in principle to effective conversion price of $36 versus $40 through
execution of derivative transactions
• Maximum potential value provided would be $0.8B if GM stock price is $63.48
after 3.5 years
– Provides mechanism for GM to recover additional economic value provided at stock
prices between $63.48 and $70.53
– Fair market value of derivatives approximately $0.2B
34
36. 2007 Recap – Total Automotive Metrics vs. 2006
Jan 2007 CY 2007
Outlook Results
Global Industry Increase Increase
GM Revenue Increase Increase
Net Material Slightly
Flat
Performance Unfavorable
Decrease Slight Increase
Structural Cost (down as % of revenue)
Adjusted Earnings Improve Improve
Improve but Improve but
Cash Flow Negative Negative
Capital Spending Increase About Flat
35
37. 2008 GM Automotive Overview
• Continued global revenue growth
• Continued improvement in material cost and structural
cost metrics
• U.S. total industry outlook in the low 16 million unit range
• Sufficient liquidity cushion even in event of further U.S.
industry decline
– Ahead of a possible downturn, should target liquidity of at least
$18-20B and access to $4-5B of credit lines
– Year-end liquidity of $27.3B and access to approximately $7B of
undrawn credit facilities
– One million unit downside in U.S. industry would have negative
liquidity impact estimated in $2-3B range
36
38. Total Automotive Outlook – 2008 vs. 2007
Global Automotive Increase
Revenue growth in all regions,
Revenue particularly in emerging markets
Net Material Footprint optimization, lower
Favorable commodity increases, fewer majors
Performance
Structural Cost as Down in all regions, particularly GMAP
% of Revenue Decrease & GMLAAM due to revenue growth
Adjusted Pre-tax Continued strength in emerging
Improved markets
Earnings
Continued strong product and
Capital Spending Increase advanced technology development
Improved earnings offset by higher
Operating Cash Flow About Flat capex, less favorable working capital
37
39. Special Attrition Program – Phase II
• In Dec 2007, GM and the UAW reached agreement on Phase I of a
new special attrition program (SAP)
– Offered to all Service Parts facilities and five other plants
• Today, GM and the UAW announced a comprehensive SAP to be
offered to all UAW-represented GM employees
• Eligible employees with 30 or more years service may choose
retirement pension incentives of $45k to $62.5k
– Funding for the retirement pension incentives will come from the GM Hourly
Pension Plan, which is currently overfunded
• Similar to the 2006 GM-UAW SAP, three other options are offered for
employees with less than 30 years service:
– Mutually satisfactory retirement for certain employees
– Pre-retirement leave program for employees with 26 to 29 years’ service
– Cash buyout option of $70k (less than 10 years’ service) or $140k
(10 or more years’ service) to voluntarily separate all ties to GM
38
40. Mid-term Outlook – 2010/11
Opportunities Downside Risks
• Full impact of labor contract • U.S. industry mix shift
$4B - $5B • Regulatory costs increase
• Delphi-related cost reduction • Continued competitive
~$0.5B environment
• If U.S. industry returns to trend Pricing, new entries
~$1-1.5B
• Pricing for stronger brands
• Material cost reductions
• Improved GMAC performance
• Further emerging markets
growth
39
41. Summary
• 2007 results improved, but near-term challenges remain
– CY adjusted automotive earnings before tax improved by $0.9B,
largely due to continued strength in GMAP and GMLAAM
– Q4 adjusted automotive earnings before tax deteriorated by
$(0.8)B, due largely to headwinds in the U.S. and Germany
– Continued share growth in GMAP and GMLAAM
• 2008 automotive pre-tax earnings outlook improved vs.
2007 on continued growth in emerging markets and focus
on cost performance in mature markets
– Anticipate adjusted automotive operating cash flow to be about flat
despite higher capital spending
– Automotive liquidity remains strong at $27.3B
• Potential for significant earnings improvement in 2010/11
timeframe
40
42. Supplemental Charts
The following supplemental charts are provided to reconcile
adjusted financial data comprehended in the primary chart set with
GAAP-based data (per GM’s financial statements) and/or provide
clarification with regard to definition of non-GAAP terminology
Note: As previously disclosed, GM restated its financial statements for the first
three quarters of 2006 for various accounting issues associated with derivatives
contracts, deferred income tax and other adjustments. The results reported for
the calendar year ending December 31, 2006 contained in this presentation
reflect the adjustments.
43. Reconciliation to Adjusted Net Income / EPS Q4 – 2007
Auto Total Corp. Other
$ Millions, except for EPS GMNA GME GMLAAM GMAP Elims Auto GMAC Other Financing Total
QTD December 31, 2007
Total Net Sales & Revenue 28,121 10,692 6,040 5,534 (3,695) 46,692 - - 393 47,085
Income (loss) before tax (1,252) (445) 424 72 (24) (1,225) (394) (1,641) 90 (3,170)
Tax (expense)/benefit - - - - - - - 1,553 90 1,643
Net income (loss) from Cont. Ops. (1,252) (445) 424 72 (24) (1,225) (394) (88) 180 (1,527)
Gain on sale of Disc. Ops. 805 - - - - 805 - - - 805
Net Income (loss) (447) (445) 424 72 (24) (420) (394) (88) 180 (722)
EPS ($1.28)
Pre-tax adjustments:
Delphi - - - - - - - 1,174 - 1,174
Other valuation allow adjust - - - - - - - - - -
Restructuring/Special attrition program 60 230 - - - 290 - - - 290
Product impairments 169 169 169
Plant closures (37) - - - - (37) - (6) - (43)
192 230 - - - 422 - 1,168 - 1,590
Tax adjustments:
Tax on regional special items - non DTA - - - - - - - (17) - (17)
Total Continuing Operations 192 230 - - - 422 - 1,151 - 1,573
Gain on sale of Allison (805) - - - - (805) - - - (805)
Total Adjustments (613) 230 - - - (383) - 1,151 - 768
Adjusted Net Revenue 28,121 10,692 6,040 5,534 (3,695) 46,692 - - 393 47,085
Income (loss) before tax (1,060) (215) 424 72 (24) (803) (394) (473) 90 (1,580)
Tax benefit - - - - - - - 1,536 90 1,626
Net income (loss) from Cont. Ops. (1,060) (215) 424 72 (24) (803) (394) 1,063 180 46
Gain on sale of Disc. Ops. - - - - - - - - - -
Adjusted Net Income (loss) (1,060) (215) 424 72 (24) (803) (394) 1,063 180 46
Adjusted EPS - Diluted $0.08
S1
44. Reconciliation to Adjusted Net Income / EPS Q4 – 2006
Auto Total Corp. Other
$ Millions, except for EPS GMNA GME GMLAAM GMAP Elims Auto GMAC Other Financing Total
QTD December 31, 2006
Total Net Sales & Revenue 28,516 8,998 3,975 4,502 (2,352) 43,639 6,486 (44) 722 50,803
Income (loss) before tax (30) (154) 76 29 (32) (111) 364 426 (347) 332
Tax (expense)/benefit - - - - - - - 256 267 523
Net income (loss) from Cont. Ops. (30) (154) 76 29 (32) (111) 364 682 (80) 855
Net income for Disc. Ops. 95 - - - - 95 - - - 95
Net Income (loss) 65 (154) 76 29 (32) (16) 364 682 (80) 950
EPS - Basic & Diluted $1.68
Pre-tax adjustments:
Special attrition related (53) - - - - (53) - - - (53)
GMAC transaction related - - - - - - (872) (631) 406 (1,097)
Restructuring - 142 - 76 - 218 - - - 218
Component plant settlement 224 - - - - 224 - - - 224
Gain on sale (270) - - - - (270) - - - (270)
(99) 142 - 76 - 119 (872) (631) 406 (978)
Tax adjustments:
Tax on or tax related regional spcl items - - - - - - 36 36
Tax of GMAC/FIO special items - - - - - - 172 172
Total Adjustments (99) 142 - 76 - 119 (872) (595) 578 (770)
Total Adjust. - Net Revenue - - - - - - (872) - - (872)
Adjusted Net Revenue 28,516 8,998 3,975 4,502 (2,352) 43,639 5,614 (44) 722 49,931
Income (loss) before tax (129) (12) 76 105 (32) 8 (508) (205) 59 (646)
Tax benefit - - - - - - - 292 439 731
Net income (loss) for Cont. Ops. (129) (12) 76 105 (32) 8 (508) 87 498 85
Net income for Disc. Ops. 95 - - - - 95 - - - 95
Adjusted Net Income (loss) (34) (12) 76 105 (32) 103 (508) 87 498 180
Adjusted EPS - Basic $0.32
Adjusted EPS - Diluted $0.32
S2
45. Reconciliation to Adjusted Net Income / EPS CY – 2007
Auto Corp. Other
$ Millions, except for EPS GMNA GME GMLAAM GMAP Elims Total Auto GMAC Other Financing Total
YTD December 31, 2007
Total Net Sales & Revenue 112,448 37,397 18,894 21,003 (11,543) 178,199 - - 2,923 181,122
Income (loss) before tax (3,314) (524) 1,348 681 (59) (1,868) (1,147) (3,605) 485 (6,135)
Tax (expense)/benefit - - - - - - - (37,129) (33) (37,162)
Net income (loss) from Cont. Ops. (3,314) (524) 1,348 681 (59) (1,868) (1,147) (40,734) 452 (43,297)
Net income from Disc. Ops. 256 - - - - 256 - - - 256
Gain on sale of Disc. Op. 4,309 - - - - 4,309 - - - 4,309
Net Income (loss) 1,251 (524) 1,348 681 (59) 2,697 (1,147) (40,734) 452 (38,732)
EPS ($68.45)
Pre-tax adjustments:
Delphi - - - - - - - 2,099 - 2,099
Pension prior service cost 1,310 - - - - 1,310 - 251 - 1,561
Restructuring/special atttrition program 289 579 - 50 - 918 - - - 918
Product impairments 264 13 277 277
Plant closures (84) - - - - (84) - (6) - (90)
1,779 579 - 63 - 2,421 - 2,344 - 4,765
Tax adjustments:
Tax on regional special items - non DTA - - - - - - - (47) - (47)
DTA valuation allow. & assoc. items - - - - - - - 38,177 123 38,300
Total Continuing Operations 1,779 579 - 63 - 2,421 - 40,474 123 43,018
Gain on sale of Allison (4,309) - - - - (4,309) - - - (4,309)
Total Adjustments (2,530) 579 - 63 - (1,888) - 40,474 123 38,709
Adjusted Net Revenue 112,448 37,397 18,894 21,003 (11,543) 178,199 - - 2,923 181,122
Income (loss) before tax (1,535) 55 1,348 744 (59) 553 (1,147) (1,261) 485 (1,370)
Tax benefit - - - - - - - 1,001 90 1,091
Net income (loss) for Cont. Ops. (1,535) 55 1,348 744 (59) 553 (1,147) (260) 575 (279)
Net income for Disc. Ops. 256 - - - - 256 - - - 256
Adjusted Net Income (loss) (1,279) 55 1,348 744 (59) 809 (1,147) (260) 575 (23)
Adjusted EPS ($0.04)
S3
46. Reconciliation to Adjusted Net Income / EPS CY – 2006
Auto Corp. Other
$ Millions, except for EPS GMNA GME GMLAAM GMAP Elims Total Auto GMAC Other Financing Total
YTD December 31, 2006
Total Net Sales & Revenue 116,653 33,278 14,627 15,532 (8,655) 171,435 33,629 (256) 793 205,601
Income (loss) before tax (7,534) (297) 518 1,199 (34) (6,148) 2,241 (1,185) (377) (5,469)
Tax (expense) benefit - - - - - - - 3,881 (835) 3,046
Net income (loss) from Cont. Ops. (7,534) (297) 518 1,199 (34) (6,148) 2,241 2,696 (1,212) (2,423)
Net income from Disc. Ops. 445 - - - - 445 - - - 445
Net Income (loss) (7,089) (297) 518 1,199 (34) (5,703) 2,241 2,696 (1,212) (1,978)
EPS ($3.50)
Pre-tax adjustments:
Special attrition program 6,387 - - - - 6,387 - - - 6,387
Sale of investments - - - (977) - (977) - - - (977)
GMAC transaction related - - - - - - (872) (631) 447 (1,056)
GMAC commercial finanace goodwill impair. 839 839
Restructuring (908) 654 43 76 - (135) - 5 - (130)
Component plant settlement 224 224 - - 224
Product impairments 475 - - - - 475 - - - 475
Gain on sale (270) (270) (270)
GMDAT DTA 105 105 105
Delphi - - - - - - - 500 - 500
5,908 654 43 (796) - 5,809 (33) (126) 447 6,097
Tax adjustments:
Tax on or tax related regional special items - - - - - - (2,298) (2,298)
Tax of GMAC/FIO special items - - - - - - 355 355
Total Adjustments 5,908 654 43 (796) - 5,809 (33) (2,424) 802 4,154
Total Adjust. - Net Revenue - - - - - - (872) - - (872)
Adjusted Net Revenue 116,653 33,278 14,627 15,532 (8,655) 171,435 32,757 (256) 793 204,729
Income (loss) before tax (1,626) 357 561 403 (34) (339) 2,208 (1,311) 70 628
Tax benefit - - - - - - - 1,583 (480) 1,103
Net income (loss) for Cont. Ops. (1,626) 357 561 403 (34) (339) 2,208 272 (410) 1,731
Net income for Disc. Ops. 445 - - - - 445 - - - 445
Adjusted Net Income (loss) (1,181) 357 561 403 (34) 106 2,208 272 (410) 2,176
Adjusted EPS - Basic $3.85
Adjusted EPS - Diluted $3.84
S4
47. Reconciliation of GMNA Revenue Per Unit
Fourth Quarter
Q4 2003 Q4 2004 Q4 2005
Revenue Revenue Revenue Revenue Revenue Revenue
$ (Millions) per unit $ (Millions) per unit $ (Millions) per unit
GAAP 31,963 $ 21,877 30,430 $ 22,326 29,945 $ 22,165
add/(less): Allied Sales (17) a (284) a 382 a
less: Non Vehicle Sales (2,859) b (2,084) b (2,828) b
less: Other Income Items (597) c (524) c (804) c
Managerial 28,490 $ 19,500 27,538 20,204 26,695 $ 19,759
*Q4 2006 * Q4 2007
Revenue Revenue Revenue Revenue
$ (Millions) per unit $ (Millions) per unit
GAAP 28,516 $ 24,207 28,121 $ 25,518
add/(less): Allied Sales (469) a (348) a
less: Non Vehicle Sales (3,084) b (3,104) b
less: Other Income Items (485) c (519) c
Managerial 24,478 $ 20,779 24,150 $ 21,915
* Excludes revenue from Allison Transmission, classified as discontinued operations
a). For GAAP reporting purposes, sales to other GM regions are eliminated whereas they are retained for managerial vehicle analysis
b). Includes SPO parts, Powertrain engines, MSP, and Onstar service outside sales- excluded from managerial vehicle analysis
c). Includes Interest Income, Daily Rental Income, and GM Credit Card Income- excluded from managerial vehicle analysis
S5
48. Reconciliation of GMNA Revenue Per Unit
Calendar Year
CY '03 CY '04 CY '05
Revenue Revenue Revenue Revenue Revenue Revenue
$ (Millions) per unit $ (Millions) per unit $ (Millions) per unit
GAAP 120,566 $ 21,537 119,071 $ 21,736 111,376 $ 21,838
add/(less): Allied Sales (1,270) a (925) a (827) a
less: Non Vehicle Sales 10,063 b (9,175) b (9,246) b
less: Other Income Items (1,973) c (2,607) c (2,236) c
Managerial 107,260 $ 19,160 106,364 $ 19,417 99,067 $ 19,425
CY '06 CY '07
Revenue Revenue Revenue Revenue
$ (Millions) per unit $ (Millions) per unit
GAAP 116,653 $ 23,671 112,448 $ 25,061
add: Allied Sales (1,674) a (1,343) a
less: Non Vehicle Sales (13,487) b (12,764) b
less: Other Income Items (2,003) c (1,929) c
Managerial 99,489 $ 20,189 96,412 $ 21,487
Note: Excludes revenue from Allison Transmission, classified as discontinued operations
a). For GAAP reporting purposes, sales to other GM regions are eliminated whereas they are retained for managerial vehicle analysis
b). Includes SPO parts, Powertrain engines, MSP, and Onstar service outside sales- excluded from managerial vehicle analysis
c). Includes Interest Income, Daily Rental Income, and GM Credit Card Income- excluded from managerial vehicle analysis
S6
49. Reconciliation of Automotive Cash Flow
Fourth Quarter & Calendar Year
General Motors Corporation
Automotive and Corp/Other
GAAP to Managerial Cash Flow reconciliation
$ Billions
Q4 2007 CYTD 2007 Q4 2006 CYTD 2006
Net Cash Provided By Operating Activities (GAAP) * 3.4 5.5 1.1 5.0
Reclassifications to/ (from) U.S. GAAP
- Expenditures for PPE & Special Tools (2.6) (7.5) (2.4) (7.5)
- VEBA Withdrawls (2.7) (2.7) (0.1) (4.1)
- Cash Restructuring Costs 0.4 1.4 0.6 2.3
- Delphi - Cash Restructuring Costs - 0.3 0.2 0.4
- Other 0.2 0.6 0.9 (0.5)
Total Reconciling Items (4.7) (7.9) (0.8) (9.4)
Total Operating before Special Items (1.3) (2.4) 0.3 (4.4)
* Operating Cash Flow from Continuing Operations
S7
