General Motors 2012 Annual Report Download - page 24

GENERAL MOTORS COMPANY AND SUBSIDIARIES
In addition to the financing we provide through GM Financial, we also ensure availability of competitive financing for our
customers and dealers through operating relationships with financial institutions. Historically, Ally Financial provided a majority of
the financing for our dealers and a significant portion of the financing for our customers in the U.S., Canada and other major
international markets where we operate. Ally Financial continues to be the largest third-party provider of the financing for our dealers
and customers. We have added relationships with other financial institutions to increase our competitiveness and benefit from
additional financing sources, including arrangements to provide incentivized retail financing to our customers in the U.S., Canada,
U.K. and Australia.
Focus on Chinese Market
We view the Chinese market, the fastest growing global market by volume of vehicles sold, as important to our global growth
strategy and are employing a multi-brand strategy led by our Buick and Chevrolet brands. In the coming years we plan to increasingly
leverage our global architectures to increase the number of nameplates under the Buick, Chevrolet and Cadillac brands in China and
continue to grow our business under the Baojun, Jiefang and Wuling brands. We operate in Chinese markets through a number of joint
ventures and maintaining good relations with our joint ventures partners, which are affiliated with the Chinese government, is an
important part of our China growth strategy.
Refer to Note 10 to our consolidated financial statements for our direct ownership interests in our Chinese joint ventures,
collectively referred to as China JVs.
The following tables summarize certain key operational and financial data for the China JVs (dollars in millions, vehicles in
thousands):
Years Ended December 31,
2012 2011 2010
Total wholesale vehicles (a) ........................................ 2,909 2,573 2,348
Market share (b) ................................................. 14.6% 13.6% 12.8%
Total net sales and revenue ......................................... $33,364 $30,511 $25,395
Net income ..................................................... $ 3,198 $ 3,203 $ 2,808
December 31, 2012 December 31, 2011
Cash and cash equivalents ..................................................... $ 5,522 $ 4,679
Debt ....................................................................... $ 123 $ 106
(a) Including vehicles exported to markets outside of China.
(b) Market share for China market.
GME
During the second half of 2011 and continuing into 2012, the European automotive industry has been severely affected by the
ongoing sovereign debt crisis, high unemployment and a lack of consumer confidence coupled with overcapacity. European
automotive industry sales to retail and fleet customers were 19.0 million vehicles in 2012, representing a 5.6% decrease compared to
2011. In 2012 GME’s market share declined to 8.5% from 8.7% in 2011 and the region suffered EBIT (loss)-adjusted of $1.8 billion
in 2012 compared to EBIT (loss)-adjusted of $0.7 billion in 2011. During this timeframe, we began to experience deterioration in cash
flows.
In response, we formulated a plan to implement various actions to strengthen our operations and increase our competitiveness. The key
areas of the plan include investments in our product portfolio, a revised brand strategy, significant management changes, reducing material,
development and production costs, and further leveraging synergies from the alliance between us and Peugeot S.A. (PSA), as subsequently
discussed. The success of our plan will depend on a combination of our ability to execute the actions contemplated, as well as external
General Motors Company 2012 ANNUAL REPORT 21