General Motors in China: Safe & Sustainable Mobility

1. General Motors in China:Safe & Sustainable Mobility Superteam A Lisa Altman, Stefan Bangerter, Martin Heuschkel, Georg Koromzay, Chris LeStorti, Ana Macía, Vithal Sanapala

2. Our Message The “Safe and Sustainable Mobility” Message A Chinese car should be more than some pieces of metal and plastic packaged in a car-body at lowest possible cost ! GM can design, manufacture and sell safe and sustainable mobility with a personalized touch for each individual customer. A CAR is only a product but MOBILITY is a service millions of Chinese customers do want and do need. GM can provide the combination of a product and a service in China, create better value and obtain fresh and long-term profits. Superteam A Shanghai March 30, 2006

3. Known Problems Chinese Mobility is limited by • High and growing population density • Crude oil availability and price • Pollution • Regulation • Infrastructure • Safety (active and passive) Road Traffic Accidents are THE main cause of accidental death for 15-45 year olds ! • Drivers Skills Superteam A Shanghai March 30, 2006

4. Known Solutions: Energy Green power technology: • Hybrid engines improving fuel efficiency • Green fuels made from plants as ethanol and diester • (Solar power) • (Hydrogen in fuel cells) All of above is available from GM ! P/Q problem may be solved in China. Superteam A Shanghai March 30, 2006

5. Known Solutions for Safety Issues: • Better Infrastructure(but not sufficient alone, not influenced by GM) In the car: • Active and Passive Safety Technology - ABS, ESP, EBA, Airbags, Tire Pressure Control, Maintenance… As a service: • Better Training and on-going Support for Drivers • Navigation and Traffic Telematics Services • OnStar… OnRedStar ! A lot of on-board and off-board electronics is required. (OBD2) The on-board P/Q problem can be solved in China, again ! And Motorola did already build the off-board electronics throughout China. Superteam A Shanghai March 30, 2006

6. Delivering the Message • Communicate the “Safe and Sustainable Mobility” as Chinese key value • Extend GM’s Website to the 100’s of millions of mobile phone users (most are potential or existent GM customers) • Support government activities and events around Safety and Sustainable Mobility • Team up with Chinese Mobile Network Operators and get directly in contact with the customer packaged in a Chinese community “GM User Group” • Become creative in providing mobility services to the Chinese customer (car sharing models, test drive events, localization services, any new value added services) Superteam A Shanghai March 30, 2006

7. Superteam A Conclusion • The “safe and sustainable mobility” strategy is not an alternate strategy. It is a must have! • The China opportunity forces GM to accelerate its evolution towards being the leader in providing safe and sustainable mobility solutions Superteam A Shanghai March 30, 2006

8. Action Items for GM in China • Sustainable mobility with green fuels made in China by Chinese farmers • Improve safety in providingservices (on-board, off-board) • Develop, design and manufacture cars in China for China. Leverage (only for now) the electronics manufacturing economies of scale to countries outside China (P/Q problem of electronics already solved in IT and consumer electronics…). • Strengthen the direct customer relationship advantage of first time owners and provide differentiated solutions for the different provinces • Be creative and join forces with mobile operators. The best friend of a Chinese is his/her mobile phone. Mobile phones and mobility provide three new main degrees of freedom for the Chinese and those can be combined by GM: Mobility, Identity, Safety Superteam A Shanghai March 30, 2006

9. General Motors in China:Safe & Sustainable MobilityThank you.Questions, Comments, Answers Superteam A Lisa Altman, Stefan Bangerter, Martin Heuschkel, Georg Koromzay, Chris LeStorti, Ana Macía, Vithal Sanapala