2013 ANNUAL REPORT Relentless forward motion. Today’s GM is born of the passion of our people to bring our customers the finest cars and trucks we’ve ever built … and to reward our stockholders for their confidence in us. We’re doing all that and more. GM is moving forward. And the very best is yet to come. 2015 CHEVROLET SILVERADO HD FINANCIAL CONTENTS 12 Vehicle Sales and Net Revenue 48 Quantitative and Qualitative Disclosures 58 Consolidated Statements of Equity 13 Reconciliation of Non-GAAP Measures About Market Risk 59 Notes to Consolidated Financial Statements 14 Board and Management Team 54 Financial Statements and Supplementary Data 126 Controls and Procedures 15 Market for Registrant’s Common Equity 54 Consolidated Income Statements and Related Stockholder Matters 55 Consolidated Statements of 16 Selected Financial Data Comprehensive Income 17 Management’s Discussion and Analysis of 56 Consolidated Balance Sheets Financial Condition and Results of Operations 57 Consolidated Statements of Cash Flows To Our Stockholders: 2013 was an historic year for General Motors – a year in which we advanced every part of our long-term strategy for profitable growth. We strengthened GM’s fortress balance deserve when they buy a new GM car, sheet. We delivered solid earnings and truck or crossover. made a number of strategic investments This discipline is transforming our around the world. We also built on product design, quality and customer our reputation for product excellence care at a remarkable pace. It is also and world-class quality, thanks to our guiding our response to the large safety revitalized portfolio of highly regarded recalls announced in early 2014 that new and refreshed vehicles. involve the ignition switches in certain In June, Standard & Poor’s restored GM GM vehicles no longer in production. to the S&P 500, which opened the door Rest assured that we are completely to new investors, including index mutual focused on this issue at the highest fund holders and other investment levels of the company and we institutions. Then in September, Moody’s are working to exceed everyone’s Investors Service responded to our expectations for customer care, progress by elevating GM to investment responsiveness and transparency. grade. Finally, the U.S. Treasury sold its remaining stake in the company toward the end of the year, and we will be forever grateful for the extraordinary assistance we received. These were all important milestones. MARY T. BARRA But just as important, our culture is Chief Executive Officer changing and the entire company is now squarely focused on the customer: what they want, what they need and what they 3 Our culture is changing and the entire company is now squarely focused on the customer: what they want, what they need and what they deserve when they buy a new GM car, truck or crossover. Nothing is more important than the safety 2012 largely because of incremental tax RECORD SALES of our customers, so we are also making expense and the actions we took to make 9,700,000 changes to ensure that something like the business stronger for the long term. VEHICLES this does not happen again. One of our By contrast, our EBIT-adjusted – a figure first actions was to name a vice president that tracks how the underlying business of Global Vehicle Safety to oversee the is performing before interest, taxes and safety development of GM vehicle systems delivered around special items – was a robust $8.6 billion. the world on a global basis, the confirmation and That is up $700 million from 2012. validation of safety performance, and post-sale safety activities such as recalls. The largest contributors were our There will be more changes because we operations in North America, where we are determined to emerge from this crisis had record earnings, our China joint stronger and wiser so we can accelerate ventures and GM Financial, which also the momentum we generated through- posted record results. South America was out 2013. profitable and Europe, which significantly reduced its losses, remains on track to During the year, we delivered a record achieve its mid-decade break-even target. 9.7 million vehicles around the world and more than $155 billion in revenue. We saw All of this translates into 16 consecutive record sales in China, the world’s largest profitable quarters and almost $32 billion market; higher retail share in the United of cumulative EBIT-adjusted since the States; and Opel/Vauxhall’s first market beginning of 2010. These results also share increase in Europe in 14 years. paved the way, in early 2014, for our Board of Directors to declare a 30-cent per Net income to common stockholders share quarterly dividend on our common was $3.8 billion, which is down from stock – a first for today’s GM. 4 2013 ANNUAL REPORT 2015 CADILLAC ATS COUPE GM’s IPO: An Expression Financial’s International Operations of What Could Be in Europe and Latin America, and Returning capital to common stockholders we expect to acquire Ally Financial’s through a dividend was meaningful China joint venture in 2014. because it helps deliver on the promise of The year also saw the opening of a new GM’s historic 2010 initial public offering. state-of-the-art information technology We went public as a smaller company data center and the start of construction with far less debt and some very good on a second mirrored and fully redundant vehicles. However, a wide range of facility, as well as the retirement of several EBIT- ADJUSTED issues had to be addressed so that the billion dollars of high-cost preferred stock. However, no amount of restructuring, $8.6B company could better adapt to aggressive 2013 global competition, rapid-fire advances reorganization and investment would matter much if we had not made the in technology and increasingly stringent $7.9B government regulations. customer our compass. 2012 Working together, our team set out to Our products best tell this story. Today, rebuild the company’s organizational GM products are taking on the best capability in corporate and consumer vehicles in the world and winning – with finance, accounting, information customers and critics alike. For example, technology, risk management, research the new Cadillac ATS sedan, which was and development, and more. named the 2013 North American Car of the Year by a panel of distinguished Every year since the IPO, we have made journalists, helped Cadillac become the significant progress, and 2013 was no fastest-growing full-line luxury brand in exception. For example, we acquired Ally 2013. Just 12 months later, Chevrolet 5 2014 SILVERADO: North American Truck of the Year; 2014 CORVETTE STINGRAY: North American Car of the Year swept the group’s 2014 car and truck have made major strides because the awards with the Corvette Stingray and the entire organization is now on the same Silverado. About the same time, the new page. For example, back in 2011 we Cadillac CTS was named the Motor Trend aligned the compensation of salaried and Car of the Year. hourly employees in the United States around profits and quality. QUALITY The same story is playing out all over the world. The revitalization of Opel/ This provides a greater opportunity for Vauxhall is just one example. Opel won employees to share in the success of the more than three dozen awards for design, business. And getting our workforce fully performance, innovation and value in engaged was instrumental in helping us J.D. Power 2013, thanks in large measure to the earn eight Initial Quality Awards in the J.D. Initial Quality Awards new ADAM and Mokka. Power 2013 Initial Quality Study*, which in 2013 was more than any other automaker. Compelling design played a part in these success stories. So did value, and We are proud of our progress, but it is advanced technology in areas like safety, critical that we improve on these results connectivity and fuel economy. However, and then replicate them all over the world. there is one attribute that can make or That is why we created the Global Quality break a brand, and that is quality. & Customer Experience team in 2013. This group is helping us develop even Quality: Good Enough more robust product quality and durability Just Isn’t testing standards, and revamp how we handle customer concerns to move faster For years, GM’s quality was competitive. and get our designers and engineers Today “good enough” just isn’t, and we fully engaged. * The GM vehicles ranked highest in their segments in the J.D. Power 2013 Initial Quality Study were: Chevrolet Camaro (Midsize Sporty Car); Chevrolet Impala (Large Car); Chevrolet Tahoe (Large CUV); Chevrolet Silverado HD (Large Heavy-Duty Pickup); Chevrolet Avalanche and GMC Sierra (Tie - Large Light-Duty Pickup); Cadillac Escalade (Large Premium CUV); Buick Encore (Tie - Sub-Compact CUV). 6 2013 ANNUAL REPORT Playing Offense luxury market in the world by the end of the decade. We broke ground on this Everyone at GM knows that to get ahead facility in 2013, and it is one of several and stay ahead, we have to do more than investments that we expect will increase just get the fundamentals like quality our capacity in China to about 5 million right. We have to play offense with great units within a few years. products and exceptional value. For example, in 2013 and early 2014, we announced that GMC and Chevrolet Driving Innovation will reenter the mid-size pickup segment Another thing all great companies do is BUICK ENCORE in the United States by leveraging one of innovate, and GM is now doing a much our global truck architectures.