A Car for Every

1
A Car for Every Qianbao and PurposeGMs
Multi-Brand Strategy in China
Troy A. Clarke GM Group Vice President President,
GM Asia Pacific April 20, 2005
2
Agenda

• How GM is applying Sloans idea in China today
• Development of stable of brands with tailored
  products
• Brands in overall context of development of
  world-class automotive industry

3
Chinas Changing Market

• Middle class is key industry driving force
• China passed Germany as 3 vehicle market in 2003
• China became GMs second-largest market in 2004
• China is now one of worlds most competitive
  markets

4
GMs Growth Strategy

• Leveraging global resources and capabilities to
  meet local market needs
• Incorporating knowledge and experience from
  sister operations
• Utilizing local partners to introduce locally
  engineered vehicles through domestic operations
• Reengineering global products for China

5
Our Brand Strategy

• Build strong brands that consumers can trust
• People buy individual brands
• Evolving brand portfolio

6
Expanding GM Brand Portfolio

• GMs original flagship brand in China
• Leader in 1920s and 1930s
• One of most well-known names in China vehicle
  market

7
Expanding GM Brand Portfolio

• GM China brand when Buick was launched
• Stalwart of GM China import lineup
• Appeals to small but highly influential group of
  consumers

8
Expanding GM Brand Portfolio

• Prominent name in Chinas mini-vehicle market
• Became part of GM brand portfolio in 2002
• Number two brand in Asia Pacific by sales (after
  Buick)

9
Expanding GM Brand Portfolio

• Officially introduced in 2004
• Cater to high-potential premium and luxury
  segments

10
Expanding GM Brand Portfolio

• Greatly expanding in China in 2005
• GMs largest global brand and worlds third
  largest
• Will become GMs second volume brand in China
  alongside Buick

11
GM Brand Pyramid
12
GM Brand Pyramid
13
GM Brand Pyramid
14
GM Brand Pyramid
15
GM Brand Pyramid
16
GM Brand Pyramid
17
Products Tailored for Brands Not Vice-Versa
18
Tailored Sales and Distribution Networks
19
There is an Ongoing Debate

• Chinese-owned brands vs. foreign-owned brands
• Two separate issues
• Development of Chinese brands
• Development of competitive automotive industry

20
Enhancing Competitiveness

• Key to continued development of Chinas
  automotive industry
• PATAC will have about 1,000 employees by year end
  to design and develop new models
• PATAC is becoming fully capable engineering and
  design organization
• Self-sufficiency is more secure, cost-effective
  and responsive

21
Developing Integrated Value Chain Vital

• Create more employment opportunities
• Generate greater benefits for Chinas economy
• Satisfy needs of Chinese consumers
• Promote competitiveness of Chinas automotive
  industry

22
(No Transcript)