1. Central & Eastern Europe Developments Automotive News Global Conference - Detroit Jan ’08 Chris Lacey – General Motors

2. Today : Central & Eastern European Markets −What are they −How are they developing −GM’s go-to-market strategy −Conclusions …..and finally ………

3. GM’s “Central & Eastern Europe” 29 countries −East of Germany, North, West & East of both India & China! −12 time zones / 25 million sq. kilometers −475 million population [8% of the world, 54% of Europe] −84 million vehicles in car parc today [Average age = 12+ years] −30 languages, 4 religions GDP range (nominal 2006) GDP Total (million USD) Per Capita (USD) Russia 986 940 Slovenia 22 079 Moldova 3 266 Uzbekistan 753 Complex legislative environment Less than 20 years ago private vehicle retailing illegal – now one of the fastest growing vehicle markets in the world !

4. To put the Region in perspective

5. Diverse demand and usage

6. How are they developing ? Automotive Industry Market – C&E Region 13,30% of Europe 4,60% of Global 25,10% of Europe 8,70% Global Annual Growth 20%

7. GM’S “Go-to-market approach” Our 5 P’s −The right Partners within GM to provide products for the range of price points required −The right Partners in market place for manufacturing −The right Partners for component supply −The right Partners in the market for vehicle distribution and repair −The right Partner philosophy with our customers

8. The right Partners within GM for Product : EuropeanOpel & SAAB North AmericanCadillac / Hummer / Chevrolet SUVs Asian [GM DAT] Chevrolet cars and SUVs Russian [GM AvtoVaz]Chevrolet Niva Real evidence of GM’s Globalisation and “One Company” approach.

9. The right Partners within GM for Product:

10. The right Partners for manufacturing GM and GM DAT (formerly Daewoo) have a long history of manufacturing in the C&E Region from early 90’s GM in late 90’s actually stopped vehicle manufacturing in 3 GM plants in the region – Hungary, Poland (Warsaw), and Turkey Daewoo had 4 regional plants (licensed assemblers) all still operating (in Ukraine, Poland (FSO), Uzbekistan, & Romania) 180,000 GM DAT vehicle kits assembled in these plants are not recorded in GM Sales in the region Recent developments include the new GM plant in St Petersburg and manufacturing licenses being granted to Zastava in Serbia, Azia Avto in Kazakhstan, and FSO in Poland Currently GM vehicles are manufactured or assembled at 9 locations in the region

11. GM Manufacturing Footprint in C&E Region

12. The right Partners for component supply GM’s Global Purchasing and Supply Chain group aims to increase component sourcing close to where we build They extend supply channels, identify local suppliers and develop to GM standards for local and global manufacturing Purchases in C&E region increased by 81% from 2003 to 2007, now 21.4% of total GME purchases 440 TIER 1 Suppliers in C&E region Resident Global Purchasing staff in C&E region increased by 305% C&E region purchasing transactions 100% integrated in GPSC processes

13. Innovative customers need to be served well !

14. The right Partners for Distribution & Repair GM network growth [contracts] ‘95 = 202‘01= 402‘07 = 765 In depth blueprinting Best applicant selection: Management focus / site location / funding / customer service attitude Full multi-brand approach appropriate to location & opportunity Facilities to full European standards from day 1 Communication / motivation / training & guidance

15. The right Partners for Distribution & Repair NPB T n.a. 2,07% 2,75%

22. The right Partner philosophy with our customers. Changing the “old image” of the pre ’90’s industry & treating customers with respect −Transparent retail pricing [no premiums] −Warranty & “Policy” −Realistic labor / repair rates −Satisfaction survey −CRM activities −Retail finance and leasing options −Vehicle exchange or “buy back” policy −Excellent parts warehousing and fast delivery −Open communication /dialogue / CAC’s −G2 used car programme

23. Self Assessment / Learnings & Observations Could we have done better? Dealer in house systems Full portfolio - only in 60% of market covered - Full CV range - Low cost product < $8,000 Wholesale & Retail finance in all markets Faster manufacturing capacity increases More training & more training Learnings & Observations No phones to mobiles Cash to credit cards Brand is King High % Internet use Mobile / clothes / travel / car / apartment / house Millionaires Show [Russia] Distribution partners’ positive can do attitude and investment policy Entrepreneurs everywhere

24. Operational Difficulties and Legislation We try hard not be lost in the complex maze…

25. 2001 through 2007 – A Success Story GM Volume & Share Development – Central & Eastern Europe *Excludes 180K GM Daewoo Kits sold in the region in 2007

26. ……………..and finally Market Volumes : - Russia = 2,708,659 - Ukraine = 584,823 - Turkey = 625,843 - Poland = 372,054 - China = 8,190,436 -Brazil = 2,220,481 -India = 1,812,375

27. ….and finally ….Emerging Markets ??

28. ……………..and finally Request: Can all of the Global Automotive Industry stop calling these markets & Brazil, China and many others: “Emerging” Fact: They have “Emerged” and are our markets of “Growth & Opportunity” We forget / ignore/ mistreat them at our peril.

29. Playing To Win Central & Eastern Europe