Auto Shanghai Summit 2013 April 19, 2013

Matt Tsien Vice President, Planning and Program Management & Strategic Alliances China GM International Operations

“General Motors: Driving Innovation in China” I want to begin by thanking the Shanghai organizers for the invitation to address this important summit on behalf of General Motors. Auto Shanghai has become the world’s largest auto show and one of the most influential. GM and our joint ventures have been part of the show for many years. This year, we’ll display more than 50 production and concept vehicle models. We look forward to showing the people of China our unmatched lineup of cars and trucks. As I’m sure you’ll all agree, China has been an amazing story. As the numbers on this slide show, it’s a story that continues to get better as we go along. We expect industry sales to grow another 7 to 8 percent this year. The growth of China’s vehicle market has had a major impact on the industry globally and on most of the world’s automakers.GM is proud to have played a key role. GM has been the sales leader among global automakers in China for eight consecutive years. In 2012, GM sold more than 2.8 million vehicles in China, increasing our market share to 14.6 percent. GM is leveraging our local manufacturing capability on a global basis. Our joint ventures exported a record 77,000 units in 2012 to other emerging markets. We expect to export between 100,000 and 130,000 units in 2013. We expect to continue growing this part of our business. We plan to be exporting about 300,000 units a year by 2015. We’re increasing the selection of models that we export from Shanghai GM and SAIC-GM-Wuling. GM’s success in China has been built on our valued partnerships. We currently operate 12 joint ventures in China. Eleven are with GM’s strategic partner, SAIC, and one with another great company, FAW. Our Shanghai GM, SAIC-GM-Wuling and FAW-GM joint ventures operate more than a dozen vehicle and powertrain manufacturing facilities in eight cities. Our focus is not just on manufacturing, however. We’ve built an integrated value chain that covers the full scope of our industry and functions seamlessly. It includes engineering and design, automotive financing, telematics and used cars. PATAC – the Pan Asia Technical Automotive Center here in Shanghai - has played an important role tailoring products from GM’s global portfolio for China. Among its successes is its involvement with the three products shown on this slide. The LaCrosse and Buick Regal upper-medium sedans are two of GM’s most popular products in China. The Cadillac SLS was the first luxury car designed for China and built in China. China has begun playing an important role in research and development for the world’s automakers. GM has led this trend. We have built the most advanced R&D and design facilities in China. Last year, PATAC opened the first climate wind tunnel operated by a Sino- foreign joint venture in China. It features several industry firsts in China. The climate wind tunnel can simulate a range of weather and road conditions for the development of products for different countries and regions. It can also simulate extreme weather conditions for on-site road tests. Breaking seasonal and regional restrictions, it can replace around 80 percent of climate road tests, improve the efficiency of vehicle development and speed up the development process. Also in 2012, the Guangde Proving Ground, China’s most comprehensive testing facility, started operation. It contains 67 kinds of typical events, with over 60 kilometers of test roads and comprehensive support facilities. There are eight types of test areas that cover all kinds of typical testing events in China. In September 2011, we opened the first phase of the GM China Advanced Technical Center in Shanghai. Last November, we opened phase 2. The ATC will become one of the largest tech centers for GM globally. It will carry out important research and development for GM on a worldwide basis. It will be China’s most comprehensive automotive technical center that conducts innovative work in five functions under one roof: advanced vehicle design, powertrains, vehicle engineering, telematics and R&D. The ATC will support leading-edge research, technology and vehicle development in cooperation with Chinese government, academic and corporate institutions. More than 300 designers, engineers and researchers will work on the development of new vehicles and innovative technologies for the world. We have already begun doing work on batteries. Battery cell fabrication and testing at the ATC will support the development of batteries with improved energy density. This will help reduce system size and costs. We have also begun producing prototype magnesium parts in the ATC’s Micro-foundry and Formability Lab. Lighter parts will support better fuel economy by reducing the weight of vehicles. Leading in the future will require making pioneering moves in technology today and thinking about solutions for sustainable urban transportation tomorrow. We plan to remain a leader in promoting the electrification of our industry in China. GM debuted the EN-V Electric Networked-Vehicle at Expo 2010 in Shanghai. The EN-V introduced a new automobile DNA based on electrification and connectivity. While it may be some years off, many of our solutions for a cleaner, greener tomorrow are already reaching the road. At last year’s Beijing auto show, we showed a sketch of the “real world” next-gen EN-V 2.0. We followed that up by signing a memorandum of understanding with the Tianjin Eco-City for a two-year pilot program. We’ll begin testing the EN-V 2.0 in the Tianjin Eco-City in the near future. GM has built a solid foundation for continued growth in China, with China, for China. We’re leveraging our extensive global capabilities to develop great vehicles for China. We’ve built the most advanced R&D facilities to foster the development of important new automotive technologies in China. We continue to hire local talent to cultivate China’s next generation of automotive industry researchers, engineers, designers and technicians. We’re ensuring that the demands of local consumers are integrated into GM's global product development process. GM plans to remain an important industry partner as we continue our exciting journey together with China. Thank you.

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