MAISA 2008 Summer Conference Global Competitive Assessment

1. MAISA 2008 Summer Conference Global Competitive Assessment Bob Purcell, GM Powertrain Vice President Global Planning, Sales & Strategic Alliances

2. Personal Education Background • Philosophy – Learn to think and express logically • Fine Arts – Learn to think and express creatively • Business – Applied learning for chosen career

3. 84 facilities 17 countries 48,700 people 37,000 engines/day 33,000 transmissions/day 24 Engineering Centers 28 Engine Plants 17 Casting & Component Plants 17 Transmission Plants Engineering Centers Engine Plants Casting & Component Plants Transmission Plants GM Global Powertrain Who We Are Today

4. Hydrogen Fuel Cell ImprovedVehicle Fuel Economy & Emissions Displace Petroleum Battery ElectricVehicles (E-Flex) Hybrid ElectricVehicles (includingPlug-In HEV) IC Engine andTransmissionImprovements Time Petroleum(Conventional & Alternative Sources) EnergyDiversity Bio Fuels (Ethanol E85, Bio-diesel) Electricity (Conventional & Alternative Sources) Hydrogen Advanced Propulsion Technology Strategy

5. Traditional Powertrain Components: - Engine, Transmission, Transfer case 3.6L Dual Overhead Cam V6: Cadillac CTS 6-Speed Transmission

6. Hybrid Powertrain Components – Electric Power Delivery 300V, 1.8 kW-hr NiMH Battery Electric Machines (Motors) Power Electronics • Inverter • TPIM – Traction Power InverterModule • 12 Volt DCDC Converter • APM – Accessory Power Module

7. Extended Range Electric Vehicle (EREV) 4 Cylinder Engine / Generator Lithium-ion Battery Pack: - Stores electricity from the grid Charge ports –recharges battery from household outlet 120 volt Electric Motor

8. Fuel Cell Vehicle Components Fuel Cell Stack - replaces gas engine - Power Electronics - Traction Motor H2 Storage Battery

9. Enlightenment: Help make students aware of science, math and technology issues Knowledge: Reinforce this awareness with solid concepts and real-world applications Attitudes: Help students personalize their relationship with the global environment Action: Help students learn how to make a difference GM’s Four Principles in Education

10. GM K-12 Education Criteria Enhance science, math, and technology curricula, Excite students about science, math and technology, Develop effective science, math, and technology teachers (teacher’s professional abilities), Apply technology to improve classroom learning (infrastructure), and Impact GM communities where employees live and work.

11. GM K-12 Education: Partnerships

12. FIRST Impact “38,530 studentsguided by GM mentorssince 1997!” • FIRST alumni are … • 88% college bound • 66% more likely than avg. to attend college • 4 times as likely to pursue a career in engineering GM participation(teams/students) 1997 2008 Robotics 2/60 64/1,920 Lego 0/0 480/4,800* Total GM 2/60 544/6,720teams/students *Fall 2007 data

13. FIRST Robotics 2008 GM Team Accomplishments • 7 Regional Wins • 8 Regional Finalists • 5 Regional Chairman’s Award Winners • 46 Other FIRST Award Winners 2008 Championship Event Accomplishments • Overall Event Champion • Championship Runner-up • 2 Divisional winners • Championship Highest Rookie Seed

14. The Art of Strategic Thinking – Kenichi Ohmae Analysis – Mechanical Systems Thinking Rearrangement of Elements Problem Prototype Solution Process of Thought

15. The Art of Strategic Thinking – Kenichi Ohmae Analysis – Mechanical Systems Thinking Rearrangement of Elements Intuition Local optimization, or seeing the tree not the forest Problem Prototype Solution Process of Thought

16. The Art of Strategic Thinking – Kenichi Ohmae Analysis – Mechanical Systems Thinking Rearrangement of Elements Intuition Local optimization, or seeing the tree not the forest Synthesis - Strategic Thinking Transformation or changed configuration Analysis of essence Problem Prototype Solution Process of Thought

17. Leadership Triangle Tactics: Single Mission Captain / Lieutenant Deployment

18. Leadership Triangle Operations: Multiple Missions Colonel / Major Systems Thinking Tactics: Single Mission Captain / Lieutenant Deployment

19. Leadership Triangle Strategy: Vision and Objectives General / Admiral Strategic Thinking Operations: Multiple Missions Colonel / Major Systems Thinking Tactics: Single Mission Captain / Lieutenant Deployment

20. What does it take to become an Industry Leader? • Clearly Defined Vision and Expectations • Fundamental Strategies • Capability and Will to Implement

21. What is an Industry Leader? LEADER... something or someone that shows the way

22. What is an Industry Leader? LEADER... something or someone that shows the way • Intellectual Leader – Superior Understanding of: • Customers, Markets and Products • Vision for the Industry and your company

23. What is an Industry Leader? LEADER... something or someone that shows the way • Intellectual Leader – Superior Understanding of: • Customers, Markets and Products • Vision for the Industry and your company • Capability Leader – Superior Ability to: • Develop and Maintain Your Core Competencies • Define Basis of Competition for the Industry

24. What is an Industry Leader? LEADER... something or someone that shows the way • Intellectual Leader – Superior Understanding of: • Customers, Markets and Products • Vision for the Industry and your company • Capability Leader – Superior Ability to: • Develop and Maintain Your Core Competencies • Define Basis of Competition for the Industry • Results Leader – Superior Sustained Performance in: • Market Share • Profitability / Cash Flow • Return to Shareholders

25. VISION GM’s vision is to be the world leader in transportation products and related services.

26. GM Powertrain GM Powertrain’s MISSION World’s BestPowertrains

27. GM Powertrain Business Management Process Strategy Development Plan Development LEARNINGS Plan Execution DECISIONS Plan Sufficiency Review

28. GM Powertrain Business Management Process Strategy Development Plan Development LEARNINGS Plan Execution DECISIONS Plan Sufficiency Review “In the long run the only sustainable source of competitive advantage is your organization’s ability to learn faster than it’s competition” The Fifth Discipline Fieldbook - Peter Senge 1994

29. Plan Sufficiency Review • Assess sufficiency of performance vs. the competition through: • Identifying key metrics … what is most important to the customer • Competitive intelligence … benchmarking industry leaders • Market research and industry trends • Identify gaps vs. Best in Class • Today and 5 years out • Prioritize on customer importance • Agree on potential solutions • Changes to plan • Changes to programs

30. World's Best Powertrain Competitive Snapshot Product Region: GM Vehicle, powertrain today GM Vehicle, powertrain +5 years => Global Review date: Blue =>Trans. Data 2007 competition 2012 competition Engine ATs / MTs / HP / Ft.Lb. Engine ATs / MTs / HP / Ft.Lb. GM vehicle & powertrain information GM vehicle & powertrain information Vehicle Competitor 1 vehicle and powertrain information Future competitor 1 vehicle and powertrain information Segment Competitor 2 vehicle and powertrain information Future competitor 2 vehicle and powertrain information PT type Competitor 3 vehicle and powertrain information Future competitor 3 vehicle and powertrain information Competitor 4 vehicle and powertrain information Future competitor 4 vehicle and powertrain information Cust. Need [1=high to 5=low] Powertrain Current GM Vehicle Current Best Competitor Future GM Vehicle Future Best Competitor Notes & Attributes Score & Position for attribute set Scores & Position for attribute set Weights Vehicle 1 Vehicle 2 Vehicle 3 QRD Eng Trans Best curr comp QRD Eng Trans Best future comp QRD Initial quality Reliability [1 to 5] Durability [1 to 5] NVH Eng Trans Best curr comp NVH Eng Trans Best future comp NVH Curb Wgt. Complaints Curr./Fut. Lb. Idle dBA GM In Veh: In Veh: In Veh: In Veh: WOT dBA In Veh: In Veh: In Veh: In Veh: Performance Std. Metric Best curr comp Perf Std. Metric Best future comp perf Comp 1 HP / kW / / / Ft.Lbs / Nm / / / Comp 2 Lb/HP & top speed / / Launch / Hwy Pass / Comp 3 Fuel Economy Best curr comp FE Best future comp FE U.Comb / L-00Km / / Comp 4 EPA City / Hwy / / Powertrain wgt. Product cost Engine Trans Best curr comp cost Engine Trans Best future comp Cost Plant utilization GM (over)/under competitor GM (over)/under competitor Eng / Trans GM vs. adj comp / / GM On Road Traction Comp 1 Best curr comp tract Best future comp tract Content & score Comp 2 na na na Smooth Ride Comp 3 Shift Feel Best curr comp ride Shift Feel Best future comp ride Complaints Comp 4 Tech. Image Best curr comp image Best future comp image Content & score na na na Tow Capacity Lbs. Kg. Best curr comp tow Lbs. Kg. Best future comp tow Pounds / Kg. / / / / Off Road Capability Best curr comp off-road Best future comp off-road Lowest ratio na na na Standard Categories Optional Categories

31. Spider Chart Format Benchmark

32. Success is driven by . . . - aPlan to Win

33. Success is driven by . . . - aPlan to Win. . . and - theWill to Win