General Motors 2010 Annual Report Download - page 27

GENERAL MOTORS COMPANY AND SUBSIDIARIES
On October 5, 2010 our Board of Directors recommended that we amend our Certificate of Incorporation to increase the number of
shares of common stock that we are authorized to issue from 2.5 billion shares to 5.0 billion shares and to increase the number of
preferred shares that we are authorized to issue from 1.0 billion shares to 2.0 billion shares. Our stockholders approved these
amendments on November 1, 2010, and they were effected on November 1, 2010.
Use of Estimates in the Preparation of the Financial Statements
The consolidated financial statements are prepared in conformity with U.S. GAAP, which requires the use of estimates, judgments,
and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the
reported amounts of revenues and expenses in the periods presented. We believe that the accounting estimates employed are
appropriate and the resulting balances are reasonable; however, due to the inherent uncertainties in making estimates, actual results
could differ from the original estimates, requiring adjustments to these balances in future periods.
Overview
Our Company
Our company commenced operations on July 10, 2009 when we completed the acquisition of substantially all of the assets and
assumption of certain liabilities of Old GM through a 363 Sale under the Bankruptcy Code. As a result of the 363 Sale and other
recent restructuring and cost savings initiatives, we have improved our financial position and level of operational flexibility as
compared to Old GM when it operated the business. We commenced operations upon completion of the 363 Sale with a total amount
of debt and other liabilities at July 10, 2009 that was $92.7 billion less than Old GM’s total amount of debt and other liabilities at
July 9, 2009. We reached a competitive labor agreement with our unions, restructured our dealer network and reduced and refocused
our brand strategy in the U.S. to our four brands.
In November and December of 2010 we consummated a public offering of 550 million shares of our common stock and 100 million
shares of Series B Preferred Stock and listed both of these securities on the New York Stock Exchange and the common stock on the
Toronto Stock Exchange.
Automotive
We are a leading global automotive company. Our vision is to design, build and sell the world’s best vehicles. We seek to
distinguish our vehicles through superior design, quality, reliability, telematics (wireless voice and data) and infotainment and safety
within their respective segments. Our business is diversified across products and geographic markets. With a global network of
independent dealers we meet the local sales and service needs of our retail and fleet customers. Of our total 2010 vehicle sales
volume, 73.6% was generated outside the United States, including 43.0% from emerging markets, such as Brazil, Russia, India and
China (collectively BRIC), which have recently experienced the industry’s highest volume growth.
Our automotive business is organized into four geographically-based segments:
• GMNA, with sales, manufacturing and distribution operations in the U.S., Canada and Mexico and distribution operations in
Central America and the Caribbean, represented 31.3% of our total 2010 vehicle sales volume. In North America, we sell our
vehicles through four brands — Chevrolet, GMC, Buick and Cadillac — which are manufactured at plants across the U.S.,
Canada and Mexico and imported from other GM regions. In 2010, GMNA had the largest market share of any competitor in
this market at 18.2%.
• GME has sales, manufacturing and distribution operations across Western and Central Europe. GME’s vehicle sales volume,
which in addition to Western and Central Europe, includes Russia, the Commonwealth of Independent States and Eastern
Europe represented 19.8% of our total 2010 vehicle sales volume. In Western and Central Europe, we sell our vehicles under
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