General Motors 2010 Annual Report Download - page 28

GENERAL MOTORS COMPANY AND SUBSIDIARIES
the Opel and Vauxhall (U.K. only) brands, which are manufactured in Europe, and under the Chevrolet brand, which is
imported from South Korea where it is manufactured by GM Daewoo of which we own 70.1%. In 2010, GME had the number
five market share in this market, at 8.8%.
• GMIO, with sales, manufacturing and distribution operations in Asia-Pacific, Russia, the Commonwealth of Independent
States, Eastern Europe, Africa and the Middle East, is our largest segment by vehicle sales volume. GMIO’s vehicle sales
volume, which includes Asia-Pacific, Africa and the Middle East represented 36.7% of our total 2010 vehicle sales volume
including sales through our joint ventures. In these regions, we sell our vehicles under the Buick, Cadillac, Chevrolet, Daewoo,
FAW, GMC, Holden, Isuzu, Jiefang, Opel and Wuling brands, and we plan to commence sales under the Baojun brand in
2011. In 2010, GMIO had the second largest market share for this market at 8.8% and the number one market share in China.
Of GMIO’s vehicle sales volume 76.4% is from China in 2010. Our Chinese operations are primarily comprised of three joint
ventures: Shanghai General Motors Co., Ltd. (SGM); of which we own 49%, SAIC-GM-Wuling Automobile Co., Ltd.
(SGMW); of which we own 44% and FAW-GM Light Duty Commercial Vehicle Co., Ltd. (FAW-GM); of which we own
50%.
• GMSA, with sales, manufacturing and distribution operations in Brazil, Argentina, Colombia, Ecuador and Venezuela as well
as sales activities in Bolivia, Chile, Paraguay, Peru and Uruguay represented 12.2% of our total 2010 vehicle sales volume. In
South America, we sell our vehicles under the Chevrolet, Suzuki and Isuzu brands. In 2010 GMSA had the largest market
share for this market at 19.9% and the number three market share in Brazil. Of GMSA’s vehicle sales volume 64.1% is from
Brazil in 2010.
We offer a global vehicle portfolio of cars, crossovers and trucks. We are committed to leadership in vehicle design, quality,
reliability, telematics and infotainment and safety, as well as to developing key energy efficiency, energy diversity and advanced
propulsion technologies, including electric vehicles with range extending capabilities such as the new Chevrolet Volt.
Automotive Financing
On October 1, 2010 we completed the acquisition of AmeriCredit Corp. for cash of approximately $3.5 billion and changed its
name to General Motors Financial Company, Inc.
GM Financial specializes in purchasing retail automobile installment sales contracts originated by franchised and select
independent dealers in connection with the sale of used and new automobiles. GM Financial generates revenue and cash flows
primarily through the purchase, retention, subsequent securitization and servicing of finance receivables. To fund the acquisition of
receivables prior to securitization, GM Financial uses available cash and borrowings under its credit facilities. GM Financial earns
finance charge income on the finance receivables and pays interest expense on borrowings under its credit facilities. GM Financial
periodically transfers receivables to securitization trusts that issue asset-backed securities to investors. The securitization trusts are
special purpose entities that are also variable interest entities that meet the requirements to be consolidated in the financial statements.
Our Strategy
Our vision is to design, build and sell the world’s best vehicles. The primary elements of our strategy to achieve this vision are to:
• Deliver a product portfolio of the world’s best vehicles, allowing us to maximize sales under any market conditions;
• Sell our vehicles globally by targeting developed markets, which are projected to have increases in vehicle demand as the
global economy recovers, and further strengthening our position in high growth emerging markets;
• Improve revenue realization and maintain a competitive cost structure to allow us to remain profitable at lower industry
volumes and across the lifecycle of our product portfolio; and
• Maintain a strong balance sheet by reducing financial leverage given the high operating leverage of our business model.
26 General Motors Company 2010 Annual Report