Carl-Peter Forster President General Motors Europe „Innovation – The Future of the Automobile Industry in Europe“ May 5, 2005 Barcelona Automotive News Europe Congress

The European Automobile Market Stagnating demand New production facilities by 2007 Non-European car manufacturers entering the market Pricing pressure and decreasing margins

Conditions for Vehicle Development Economic, environmental and social issues Changing customer preferences Legal regulations

Market Situation Automobile Industry In Western and Central Europe: – stagnating demand – increasing competition – overcapacities – falling prices

Recent Market Development Newly registered passenger cars in Western/Central Europe: Q Q millions -2.5% 3.9 millions

Fundamental Changes in Model Segments Conventional cars in the mid-size segment: losing market share since 1999 Compact and mini-vans, such as Opel/Vauxhall Zafira and Meriva: market share has been growing for years

GME: Expansion of Product Portfolio Increase the share of innovative vehicle concepts, including niche models like Opel/Vauxhall Tigra TwinTop

Customer Demands on Individual Mobility Exciting design Versatile and flexible cars Fun to drive and expression of lifestyle

Optimizing Conventional Engines Gasoline and diesel engines: continually refined and developed further

Innovative Propulsion: Natural Gas Suitability for daily use Opel: market leader in Germany Environmental compatibility

Innovative Propulsion: Hybrid Technologies Hybrid study based on Astra GTC Proving the scalability of GM‘s hybrid technology Changing market needs: extension to diesel-hybrid

Innovative Propulsion: Fuel Cell Technology GM: investment of more than one billion dollars in the development of hydrogen-powered fuel cell vehicles HydroGen3: prototype based on the Opel Zafira Suitable for everyday use: FedEx delivery vehicle in the USA and Japan, taxi in Berlin

The Future of Automobile Electronics 2010: 35 % of production costs could be accounted for by electrical equipment and electronics 90 % of all future innovation will be based on electronics Volume of software doubles every two to three years

Increasing Efficiency in Development Avoid duplication of engineering activities Full integration of ITDC in Rüsselsheim and Saab Technical Development Center in Trollhättan in GM’s worldwide engineering organization

One Company – Strong Brands Strengthen each brand with the synergies of GM’s global network Create additional economies of scale and free up resources Customer benefit: wider range of models and innovative technologies

Continuation of Product Offensive in Europe 2005: Opel/Vauxhall Astra GTC, the new Zafira, Saab 9-3 Sport Combi and Chevrolet Matiz 2006: Opel/Vauxhall crossover SUV, new Chevrolet SUV, the new Corsa and a new two-seat roadster 45 new models or variants in the next five years

First Generation Zafira Redefined its class, took over market leadership Four years in row: best-selling car in its segment More than 1.4 million units sold

The New Zafira Further refined Flex7 seating system Progressive design and distinctive dynamic driving performance High-tech chassis and state-of-the-art engines Wide range of equipment

Million Mile Test Drive Largest test drive campaign ever conducted 35,000 cars available in 40 European countries for three-day test drives More than 700,000 people signed up to participate

Definition of GM Brands in Europe Cadillac in the premium/luxury top segment

Definition of GM Brands in Europe Cadillac in the premium/luxury top segment Saab as entry premium contender

Definition of GM Brands in Europe Cadillac in the premium/luxury top segment Saab as entry premium contender Opel/Vauxhall: innovative core brands of the volume business

Definition of GM Brands in Europe Cadillac in the premium/luxury top segment Saab as entry premium contender Opel and Vauxhall as innovative core brands of the volume business Chevrolet with growth potential in volume business