GM GM Global Global Purchasing Purchasing and and Supply Supply Chain Chain

““ Global Global Purchasing Purchasing in in the the Automotive ” AutomotiveIndustry Industry” Martin MartinLarsson Larsson

Director DirectorClosures Closuresand andScandinavia Scandinavia Global Purchasing and Supply Global Purchasing and SupplyChain Chain

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Scope of General Motors Q Q

Global Global automotive automotive industry industry sales sales leader leader for for 76 76 years years

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Founded Founded in in 1908 1908

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GM GM turnover turnover in in 2006 2006 over over $190 $190 billion billion

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GM GM employs employs about about 284,000 284,000 people people

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GM GM products products sold sold in in 200 200 countries countries

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Vehicle Vehicle assembly assembly in in 33 33 countries countries

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Over Over 99 million million vehicles vehicles sold sold in in 2007 2007

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12 12 vehicle vehicle brands brands

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10,000 10,000 dealers dealers

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Global Industry Did You Know… Q Q

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Global vehicle sales in 2007 will have increased by over 12 million units and auto revenue will be up $300 billion since CY 2002 China unit sales in CY 2000 were less than half of Japan and equal to Germany -- in 2007 sales in China will exceed Japan by almost 3 million units and will be over twice as many as Germany In 2007 China is the third largest market in terms of auto revenue ($100 billion) Sales in Russia almost equal to the U.K. 2007 (up 119% since 2001) Did you know that the Emerging 11 markets have grown from 16% of the industry in 2001 to over 25% today 3

Global Vehicle Sales

Source: GMIA 4

The Industry – Then & Now

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GM Sales Performance Emerging 11 Markets Q Q

GM sales growth has outpaced Industry year-over-year growth since 2003 –– GM GM sales sales this this year year will will have have increased increased over over 150% 150% since since 2001 2001

–– Greater Greater than than 100% 100% growth growth in in China, China, India, India, Russia Russia and and Turkey Turkey

–– E11 E11 markets markets will will account account for for 25% 25% of of GM GM global global sales sales in in 2007 2007

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Global Product Development: Architecture Development Teams Germany

United States

Compact Vehicle Midsize Vehicle

Luxury RWD Vehicle Compact Crossover

Korea Small Vehicle

Performance Vehicle

Mini Vehicle

Full-size Truck FWD Truck Vans Commercial Truck

Brazil Int´l Mid-size Truck

Australia RWD Vehicle

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Supplier Footprint Migration – How it usually works

Opportunity a. Follow global suppliers footprint change Æ passive (OEM only needs to follow suppliers) Æ mainstream in automotive industy

Opportunity b.

ÆRequire suppliers to follow OEM

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GM Approach to Footprint Migration: Develop Local Suppliers

Opportunity c.

•Develop local suppliers to GM standards • Active (GM selects and develops suppliers) • Competitive advantage for GM • Buying where GM sells cars • Sustainable investments in CEE leading to stronger local economies

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Global Purchasing and Supply Chain Group Vice President Global Purchasing and Supply Chain Bo Andersson

SPO Christine Sitek

•Global PT Programs •Global Sourcing

PT Comp / Raw Mtl Kari Kuvaja Interior & CFB Kim Brycz

•SBM •Splr Ride & Drive

Elec Vehicle/PT Akhil Puri

China SFO

HVAC/Elec Comp David McKean

Korea SFO

Chassis Randy Pappal Exterior Susanna Webber

•Full Size Trk •Global RWD Luxury

Europe Eric Alstrom

•Global Compact Car •Global Mid Size Car •CEE SFO

LAAM John Saldanha

•Global Supplier Council •Global Mid / Small Trk •India SFO

Asia Pacific Jim Bovenzi

•Global Small Car •Global Compact Crossover •Global Mini Car

Supplier of the Year •GPSC Process •Vendor Tooling

M&E/Indirect Barbara Whittaker

•Chair Multicultural Women’s Comm •Diversity Council

Global SQ & Dev Dale Kitchen

North America Bo Andersson

Gl Logistics Tom McMillen

Mexico

Struct & Closures Ralf Huenerfeld

Adv Purchasing Murat Aksel

Powertrain Paris Pavlou

Gl Supply Chain Bill Kala*

ISP Assignment

Citizenship * Interim

Key

1804 / 1810

Mat Cost Red/PPM Dan Larabell Finance Susan Tuohy

Rev : August 14, 2007

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GSPC Complexity 3,200 Suppliers

# of Suppliers? # of Creativity Teams? # of Countries?

119 Global Creativity Teams People Located in 87 Countries

# of Part Numbers?

160,000 Part Numbers

# Vehicles Shipped?

9.2M Vehicles Shipped

Logistics/indirect Spend? $ Material Purchases?

$7.2B Logistics/$13B Indirect M&E $89B Direct Material Purchases

Balancing GPSC Complexity:

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Global Purchasing Organization Germany Sweden - Conv. Tops

Canada United States - (75 Remaining CTs)

Mexico - Seat Belts - HVAC - Control Heads - Compressors - Cranktrain - Speakers & Amps - Antennas - Hoses and Lines

Belgium

- Labels - Stampings

- Wheels

Spain - Rubber Sealing - Fasteners

- Seat Structures - Clutches - Valvetrain - Glass - Pwt Cooling - Turbo SC

- Locksets & Latches - Lighting - Halfshafts - Conn Rods/Pistons - VID - Eng Mgt. Syst

Russia

Poland - Accessory Drive Comp

Romania

Korea - Regulators

China India - Tools & Cables

Brazil - Conveyors

- Electrical SMT Leadership - Electronic Modules - Batteries - Switches and Horns - Battery Cables - Iron Castings - SM/Med Iron Castings - Emblems/Decals - CCC Interior Door Handles - CCC Interior Sun visors - CCC Interior Grab Handles

119 Creativity Teams 12

2007 GPSC Priorities Global Global Purchasing Purchasing and and Supply Supply Chain Chain

Supply Supply Chain Chain

Develop & Execute Best Supply Chain Capabilities Schedule, Build & Ship the Plan Daily:

Quality/ Quality/ Launch Launch

Program Program Management Management

Current/Future Current/Future Business Business

Total Cost Approach Supporting Quality/Cost Improvements

Launch New Programs @ Right Quality, Right Time, Right Cost

Best Landed Cost Globally

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Driving Clear Direction and Focus Structure

Priorities Global & Regional Scorecard XXX XXX

Commodity / Exec. Director Scorecard

• Top Down • Global • CrossFunctional • Cross-Priority • W/ Suppliers

Commodity / Director Scorecard Creativity Team / Manager Scorecard Supplier Scorecard

Alignment Internal / External 14

Characteristics of Best Suppliers Superior Culture Q Q

“Can “Can Do” Do” Attitude Attitude

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Obsessed Obsessed with with Continuous Continuous Improvement Improvement

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Saying Saying “No” “No” the the Right Right Way Way Strive Strive for for Stretch Stretch Targets Targets

Superior Organizational Capability

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Bring Bring Best-in-Class Best-in-Class Designs Designs Breakthrough Breakthrough Technology Technology

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Speed Speed -- Go Go Fast Fast

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Global Global Presence Presence

Superior Competitive Advantage

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Product Product Focus Focus

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Quality Quality Performance Performance

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Flawless Flawless Launches Launches and and Program Program Execution Execution

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Sustainable Sustainable Cost Cost Advantage Advantage

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Best-in-Class Best-in-Class Value Value

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Results (2002 – 2006) Q

46% reduction in spills/plant disruptions

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70% reduction in charters

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Parts delivered to station on time exceeds 99% 41% reduction in warranty cost Implemented competitive sourcing process based upon best quality and total landed cost GPSC: One Global Organization 16

The Potential of the Industry Q

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Mirroring the economy, global industry continues to set new records and become less volatile Global over-performance in recent years has led to stronger than anticipated volume growth -- despite sluggishness in the U.S. Vast potential exists: China and India (38% of global population) are just entering the take-off stage of mass vehicle ownership -- also Eastern Europe has upside potential 17

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