General Motors 2012 Annual Report Download - page 22

Download and view the complete annual report

Please find page 22 of the 2012 General Motors annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 182

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182

GENERAL MOTORS COMPANY AND SUBSIDIARIES
Automotive
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. Our business is diversified across products and geographic markets. We meet the
local sales and service needs of our retail and fleet customers with a global network of independent dealers. Of our total 2012 vehicle
sales volume, 72.1% was generated outside the U.S.
Our automotive business is organized into four geographically-based segments:
• GMNA has sales, manufacturing and distribution operations in the U.S., Canada and Mexico and sales and distribution
operations in Central America and the Caribbean. GMNA represented 32.5% of our vehicle sales volume in 2012 and we had
the largest market share in this market at 16.9%.
• 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 Eastern Europe (including Russia and the other members of the
Commonwealth of Independent States among others) represented 17.3% of our vehicle sales volume in 2012. In 2012 we
estimated we had the number four market share in this market at 8.5%. GMIO distributes Chevrolet brand vehicles which,
when sold in Europe, are included in GME vehicle sales volume and market share data.
• GMIO has sales, manufacturing and distribution operations in Asia-Pacific, Eastern Europe (including Russia and the other
members of the Commonwealth of Independent States among others), Africa and the Middle East. GMIO’s vehicle sales
volume, which includes Asia-Pacific, Africa and the Middle East is our largest segment by vehicle sales volume. GMIO
represented 38.9% of our global vehicle sales volume including sales through our joint ventures in 2012. In 2012 we had
approximately 14.6% market share in China as compared to 13.6% in 2011. In 2012 GMIO derived 78.4% of its vehicle sales
volume from China. GMIO records the financial results of Chevrolet brand vehicles that it distributes and sells in Europe.
• GMSA has sales, manufacturing, distribution and financing operations in Brazil, Argentina, Colombia, Ecuador and Venezuela
as well as sales and distribution operations in Bolivia, Chile, Paraguay, Peru and Uruguay. GMSA represented 11.3% of our
vehicle sales volume in 2012. In 2012 we estimated we had the number two market share for this market at 18.0% and the
number three market share in Brazil. In 2012 GMSA derived 61.4% of its vehicle sales volume from Brazil.
Automotive Financing — GM Financial
GM Financial specializes in purchasing retail automobile installment sales contracts originated by GM and non-GM franchised and
select independent dealers in connection with the sale of used and new automobiles. GM Financial also offers lease products through
GM dealerships in connection with the sale of used and new automobiles that target customers with sub-prime and prime credit
bureau scores. GM Financial primarily generates revenue and cash flows 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 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.
In April 2012 GM Financial commenced commercial lending activities in the U.S. centered on floor plan financing of dealer
vehicle inventory and dealer loans to finance dealer sites, facilities, facility improvements and working capital. These loans are made
on a secured basis. We believe the availability of financing for our dealers is important to our business. GM Financial plans to launch
similar commercial lending in Canada during the first half of 2013.
General Motors Company 2012 ANNUAL REPORT 19