General Motors 2010 Annual Report Download - page 110

GENERAL MOTORS COMPANY AND SUBSIDIARIES
• Availability of adequate financing on acceptable terms to our customers, dealers, distributors and suppliers to enable them to
continue their business relationships with us;
• The financial viability and ability to borrow of our key suppliers and their ability to provide systems, components and parts
without disruption;
• Our ability to take actions we believe are important to our long-term strategy, including our ability to enter into certain
material transactions outside of the ordinary course of business, which may be limited due to significant covenants in our
secured revolving credit facility;
• Our ability to manage the distribution channels for our products, including our ability to consolidate our dealer network;
• The ability to successfully restructure our European operations;
• The continued availability of both wholesale and retail financing from Ally Financial and its affiliates in the United States,
Canada and the other markets in which we operate to support our ability to sell vehicles in those markets, which is dependent
on Ally Financial’s ability to obtain funding and which may be suspended by Ally Financial if Ally Financial’s credit exposure
to us exceeds certain limitations provided in our operating arrangements with Ally Financial;
• Our ability to develop captive financing capability, including through GM Financial and to successfully integrate GM
Financial into our operations;
• Overall strength and stability of general economic conditions and of the automotive industry, both in the United States and in
global markets;
• Continued economic instability or poor economic conditions in the United States and global markets, including the credit
markets, or changes in economic conditions, commodity prices, housing prices, foreign currency exchange rates or political
stability in the markets in which we operate;
• Shortages of and increases or volatility in the price of oil, including as a result of political instability in the Middle East and
African nations;
• Significant changes in the competitive environment, including the effect of competition and excess manufacturing capacity in
our markets, on our pricing policies or use of incentives and the introduction of new and improved vehicle models by our
competitors;
• Significant changes in economic and market conditions in China, including the effect of competition from new market
entrants, on our vehicle sales and market position in China;
• Changes in the existing, or the adoption of new, laws, regulations, policies or other activities of governments, agencies and
similar organizations, including where such actions may affect the production, licensing, distribution or sale of our products,
the cost thereof or applicable tax rates;
• Costs and risks associated with litigation;
• Significant increases in our pension expense or projected pension contributions resulting from changes in the value of plan
assets, the discount rate applied to value the pension liabilities or other assumption changes; and
• Changes in accounting principles, or their application or interpretation, and our ability to make estimates and the assumptions
underlying the estimates, which could have an effect on earnings.
We caution readers not to place undue reliance on forward-looking statements. We undertake no obligation to update publicly or
otherwise revise any forward-looking statements, whether as a result of new information, future events or other factors that affect the
subject of these statements, except where we are expressly required to do so by law.
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108 General Motors Company 2010 Annual Report