General Motors at Deustche Bank Conference Notes

Mary T. Barra

Onstar helps give us some advantage in autonomous

“if you just look at the crowdsourcing work that we’re going to be doing with MobileI, I think it really leverages the fact that we’ve got all these vehicles that have OnStar. So we’ve got the connectivity because as we all know when you look at autonomous, one of the key is having accurate road information and surrounding information and it’s ever changing. So it’s not just get everything mapped once you got to constantly be updated. So when you think about our fleet in our car park that’s got OnStar that has the ability to upload that information for it to be processed working with MobileI I think that is a huge opportunity that our scale and our existing car park with the embedded connectivity that we’ve had for quite some time enables.”

Dan Ammann

Clearly there’s a lot of concern about the auto cycle maturing

“So just a quick opening comment on the macro-environment, I think clearly there’s a lot of concern in this room and around the investment community in general, but the automotive cycle is maturing and if you look just simply at the volume numbers coming out of 2009 for the global industry you see exactly that picture where the growth rate was initially pretty rapid, coming out of the trope and has begun to moderate going forward.”

As growth is decelerating we need to make shifts in the way we’re allocating resources

“when you get into an environment where it’s becoming arguably more challenging from a macro perspective decelerating growth. You couple that with fundamental change going on in your business, you get back to the central issue of how and where are we allocating our resources. And the usual momentum strategy no longer applies, so we need to bring a fundamentally different wins to the business and how we’re doing this.’

We believe that the first scale deployment of autonomous vehicles will be into this ride share business model

“as we engaged with people around the industry and in particular as we engaged with the team from Lyft we found we had this very common view that the first scale deployment of autonomous vehicles will not be selling them to individual consumers, but it will be into this ride share business model and there’s lots of reasons why that’s the case from safety and regulatory to the fundamental economics of taking an expensive new technology and deploying it into a high utilization model into the technical constraints in the early stages of this, which will lend themselves much more to an owned fleet in a controlled operating environment.”

We see a very clear convergence between autonomous and ride share

“So for all of those reasons we see a very clear convergence between autonomous on the one hand and ride share on the other and that’s what’s total unique about the partnership and alliance that we have put together with Lyft is the first time we have a major scale ride share platform combining with a scale car making platform and all of the technical capability in and around that from an autonomous perspective.”

Chuck Stevens

Pricing in the US has been reasonably rational

“pricing in the U.S. continues to be reasonably rational and you guys have accessed to the same data we do. Incentive spend as a percentage of transaction price went up a bit in 2015, but still overall very, very rational and we would expect that to continue. With that said one other reason we’re still focused on driving cost efficiency is we control cost, we don’t always control what happens in the market and again we would as a baseline assumption would expect continued rationality in the market at least in 2016.”

Commodities should be a tailwind in 16 again though not as large as ’15

“Commodities I’ve talked before about 2015 as a developed it was a several hundred million dollar tailwind force in ‘15 versus ‘14. I would expect kind of more of the same in ‘16 versus ‘15, it’s not $1 billion or $1.5 billion, but certainly several hundred million dollars of tailwinds at least not as things are developing right now and that’s factored into our outlook for sure.’