General Motors 2010 Annual Report Download - page 39

GENERAL MOTORS COMPANY AND SUBSIDIARIES
The following table summarizes certain key operational and financial data for the China JVs (dollars in millions):
Years Ended
December 31, 2010 December 31, 2009
Total wholesale units ............................................................. 2,348,391 1,823,693
Market share ................................................................... 12.8% 13.3%
Total net sales and revenues ....................................................... $ 25,395 $ 18,098
Net income .................................................................... $ 2,808 $ 1,636
December 31, 2010 December 31, 2009
Cash and cash equivalents ......................................................... $ 5,247 $ 3,516
Debt .......................................................................... $ 61 $ 30
In November 2010 we and SAIC entered into a non-binding Memorandum of Understanding (MOU) that would, if binding
agreements are concluded by the parties, result in several strategic cooperation initiatives between us and SAIC. The initiatives
covered by the MOU include:
• Cooperation in the development of new energy vehicles, such as appropriate electric vehicle architectures and battery electric
vehicle technical development;
• Further expanding the role of PATAC in vehicle development, new technology development and participation in our global
vehicle development process;
• Sharing an additional vehicle architecture and powertrain application with SAIC in an effort to help reduce development costs
and benefit from economies of scale;
• Potential cooperation in providing access to our distribution network outside China for certain of SAIC’s MG branded
products;
• Providing training sources to assist a limited number of SAIC engineers with their professional development; and
• Discussions to determine possible areas of cooperation in the development of future diesel engines.
We expect definitive agreements will be reached in the first half of 2011 for the initiatives not yet agreed to at December 31, 2010.
Development of Multiple Financing Sources and GM Financial
A significant percentage of our customers and dealers require financing to purchase our vehicles. Historically, Ally Financial has
provided most of the financing for our dealers and a significant amount of financing for our customers in the U.S., Canada and various
other markets around the world. We maintain other financing relationships, such as with U.S. Bank for U.S. leasing, GM Financial for
sub-prime lending and a variety of local and regional financing sources around the world.
We expect GM Financial will allow us to complement our existing relationship with Ally Financial in order to provide a more
complete range of financing options to our customers, specifically focusing on providing additional capabilities in leasing and sub-prime
financing options. We also plan to use GM Financial for targeted customer marketing initiatives to expand our vehicle sales.
Secured Revolving Credit Facility
In October 2010 we entered into a five year, $5.0 billion secured revolving credit facility. While we do not believe the amounts
available under the secured revolving credit facility will be needed to fund operating activities, the facility is expected to provide
additional liquidity and financing flexibility. Refer to the section of this report entitled “— Liquidity and Capital Resources —
Secured Revolving Credit Facility” for additional information about the secured revolving credit facility.
General Motors Company 2010 Annual Report 37