General Motors 2014 Annual Report Download - page 44

GENERAL MOTORS COMPANY AND SUBSIDIARIES
GMIO Total Net Sales and Revenue
The vehicle sales of our China JVs and of GM India prior to September 1, 2012, the date we consolidated GM India, are not
recorded in Total net sales and revenue. The results of our nonconsolidated joint ventures are recorded in Equity income.
In the year ended December 31, 2014 Total net sales and revenue decreased due primarily to: (1) decreased wholesale volumes
primarily related to discontinuing sales of the Chevrolet Spark, Aveo, Cruze, Captiva and Orlando in Europe and lower sales of older
version SUVs and trucks (including the Tahoe, Yukon, Suburban, Sierra, and Silverado) and other carlines (such as the Acadia and
Traverse) ahead of the new full-size truck introduction in the Middle East and lower sales of the Chevrolet Colorado, Sonic,
Trailblazer, Cruze and Captiva in Thailand; and (2) unfavorable Other of $0.4 billion due primarily to unfavorable net foreign
currency effect of $0.3 billion driven by the weakening of the Australian Dollar, South African Rand, Thai Baht and Indian Rupee
against the U.S. Dollar and decreased sales of components, parts and accessories of $0.1 billion; partially offset by (3) favorable
vehicle pricing due primarily to sales of new full-size trucks (including the Tahoe, Suburban, Yukon, Escalade, Sierra and Silverado)
in the Middle East and lower sales incentive offered on Chevrolet vehicles in Europe; and (4) favorable mix due primarily to an
improved sales portfolio of the Malibu and Trax in Korea and the Tahoe and Yukon in the Middle East.
In the year ended December 31, 2013 Total net sales and revenue decreased due primarily to: (1) decreased wholesale volumes due
primarily to lower sales of the Optra, Yukon, Colorado, Captiva, Sail and Aveo in the Middle East and lower sales of the Chevrolet
Orlando, Captiva, Cruze, Aveo and Spark in Europe partially offset by an increase from the consolidation of GM India effective
September 2012 resulting in an additional 57,000 wholesale vehicle sales (or 6.0%) in 2013; (2) unfavorable vehicle pricing due to
increased incentive support associated with strong competition, including an increase of $0.2 billion in Europe as a result of our
decision to withdraw the Chevrolet Brand from Europe, an increase of $0.2 billion in the Middle East due to the competition on SUVs
and trucks such as the Yukon, Tahoe, Suburban, Sierra and Silverado and increases of $0.1 billion in GM Holden, Ltd. (Holden) and
Association of South East Asian Nations (ASEAN) for the Colorado, Captiva, Commodore, Trailblazer and Sonic; (3) unfavorable
vehicle mix primarily in ASEAN due to a higher proportion of the lower priced Spin and a lower proportion of the higher priced
Colorado; and (4) Other of $0.7 billion due primarily to unfavorable net foreign currency effect due to the weakening of the
Australian Dollar, South African Rand and Egyptian Pound against the U.S. Dollar of $0.4 billion and decreased sales of components,
parts and accessories of $0.3 billion.
GMIO EBIT-Adjusted
In the year ended December 31, 2014 EBIT-adjusted decreased due primarily to: (1) decreased net wholesale volumes primarily
related to discontinuing sales of the Chevrolet Spark, Aveo, Cruze, Captiva and Orlando in Europe and lower sales of older version
SUVs and trucks and other carlines ahead of the new full-size truck introduction in the Middle East and Colorado, Sonic, Trailblazer,
Cruze and Captiva in Thailand; and (2) unfavorable net vehicle mix due primarily to higher cost of the Commodore and Colorado in
Australia, partially offset by (3) favorable vehicle pricing due primarily to sales of new full-size trucks in the Middle East; and
(4) favorable Other of $0.6 billion due primarily to favorable engineering cost of $0.3 billion, a decrease in selling, general and
advertising expense of $0.3 billion due primarily to the withdrawal of Chevrolet brand in Europe in 2013, favorable equity income
from China JVs of $0.3 billion, and favorable manufacturing costs and depreciation of $0.2 billion, partially offset by unfavorable
recall programs of $0.1 billion, a decrease in sales of components parts and accessories of $0.1 billion, tooling impairment charges of
$0.1 billion related to the Sonic in Thailand, the Aveo in Korea and the Spin in Indonesia, and unfavorable net foreign currency effect
of $0.1 billion.
In the year ended December 31, 2013 EBIT-adjusted decreased due primarily to: (1) unfavorable net vehicle mix primarily in the
Middle East due to deteriorated sales portfolio from the Yukon, Captiva, Optra and Australian markets due to deteriorated sales
portfolio from high margin vehicles such as the Cruze; (2) unfavorable vehicle pricing excluding $0.2 billion sales incentive related to
withdrawal of the Chevrolet brand from Europe; (3) unfavorable net wholesale volumes; and (4) Other of $0.3 billion due primarily to
unfavorable manufacturing costs of $0.4 billion, unfavorable net foreign currency effect of $0.2 billion, and a decrease in sales of
components, parts and accessories of $0.2 billion, partially offset by favorable material and freight cost of $0.3 billion, and increased
equity income, net of tax of $0.2 billion, from our interest in the increased net income of our China JVs.
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