General Motors 2010 Annual Report Download - page 5

Signifi cantly Lower Risk Profi le
Leverage Global Growth
New
Business
Model
General Motors Company 2010 Annual Report 3
GM brands captured both of the prestigious Motor Trend
Car and Truck of the Year awards since Buick and Chevrolet
captured both awards in 1979.
And across the globe, other GM vehicles are gaining similar
acclaim for design excellence, quality and performance,
including the Holden Commodore in Australia, Chevrolet
Agile in Brazil, Buick LaCrosse in China and many others.
We also acquired AmeriCredit to form GM Financial,
expanding the fi nancing options for customers in the
United States and Canada who want to buy or lease
new GM vehicles.
We lowered our cost base and restructured operations
in North America to achieve a break-even level near the
bottom of the economic cycle. Despite depressed industry
conditions, GM posted $5.7 billion of earnings before
interest and taxes (EBIT) in North America. We signifi cantly
improved our balance sheet, reduced debt by more than
$11 billion and improved the funding level of our U.S.
pension plans with a $4 billion cash contribution. At the
same time, we maintained our strong liquidity position
through positive cash fl ow and a new $5 billion revolving
line of credit.
In November we completed a landmark $23 billion public
off ering, the largest in history, allowing the U.S. and
Canadian governments to reduce their ownership stakes
in the company. The successful off ering was an important
vote of confi dence for the progress and potential of the
new General Motors.
BRIGHTENING FINANCIAL PICTURE
We were pleased to achieve profi tability in our fi rst full
year as a new company, with 2010 net income attributable
to common stockholders of $4.7 billion on revenue of
$135.6 billion. We achieved earnings per share of $2.89
on a fully diluted basis.
“Our 2010 progress
is early evidence
of a new business
model that begins
and ends with great vehicles.”
GM recorded adjusted EBIT of $7 billion and positive
automotive free cash fl ow of $2.4 billion in 2010. Excluding
a $4 billion discretionary contribution to the U.S. pension
plans, free cash fl ow would have been $6.4 billion for
the year.
The company’s progress is early evidence of a new
business model that begins and ends with great vehicles.
We are leveraging our global resources and scale to
maintain stringent cost management while taking
advantage of growth and revenue opportunities around
the world, to ultimately deliver sustainable results for
all of our stakeholders.
The strength of the new GM:
a new business model centered on our
vision of designing, building and selling
the world’s best vehicles; a leader’s
leverage to economic growth in key
mature and emerging markets worldwide;
and a new balance sheet with a signifi -
cantly improved risk profi le.