General Motors 2010 Annual Report Download - page 187

GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
exposure of $100 million related to the second lien term loan facility. In February 2011 we exercised the warrants and sold the shares
and received proceeds of $48 million.
Ally Financial
We own 9.9% of Ally Financial’s common stock and preferred stock with a liquidation preference of $1.0 billion. Ally Financial is
a VIE as it does not have sufficient equity at risk; however, we are not the primary beneficiary and we currently lack the power
through voting or similar rights to direct those activities of Ally Financial that most significantly affect its economic performance.
Refer to Notes 11 and 32 for additional information on our investment in Ally Financial, our significant agreements with Ally
Financial and our maximum exposure under those agreements.
Saab
Our primary variable interest in Saab is the preference shares that we received in connection with the sale, which have a face value
of $326 million and were recorded at an estimated fair value that is insignificant. We concluded that Saab is a VIE as it does not have
sufficient equity at risk. We also determined that we are not the primary beneficiary because we lack the power to direct those
activities that most significantly affect its economic performance. We continue to be obligated to fund certain Saab related liabilities,
primarily warranty obligations related to vehicles sold prior to the disposition of Saab. At December 31, 2010 our maximum exposure
to loss related to Saab was $105 million. Refer to Note 5 for additional information on the sale of Saab.
HKJV
In December 2009 we established the HKJV operating joint venture to invest in automotive projects outside of China, initially
focusing on markets in India. HKJV purchased GM India in February 2010. We determined that HKJV is a VIE because it will
require additional subordinated financial support, and we determined that we are not the primary beneficiary because we share the
power with SAIC-HK to direct those activities that most significantly affect HKJV’s economic performance. Refer to Note 5 for
additional information on HKJV.
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