1. 1 Troy A. Clarke GM Group Vice President President, GM Asia Pacific April 20, 2005 A Car for Every “Qianbao” and Purpose: GM’s Multi-Brand Strategy in China

2. 2 Agenda How GM is applying Sloan’s idea in China today Development of stable of brands with tailored products Brands in overall context of development of world- class automotive industry

3. 3 China’s Changing Market Middle class is key industry driving force China passed Germany as #3 vehicle market in 2003 China became GM’s second-largest market in 2004 China is now one of world’s most competitive markets

4. 4 GM’s 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. 5 Our Brand Strategy Build strong brands that consumers can trust People buy individual brands Evolving brand portfolio

6. 6 GM’s original flagship brand in China Leader in 1920s and 1930s One of most well-known names in China vehicle market Expanding GM Brand Portfolio

7. 7 GM China brand when Buick was launched Stalwart of GM China import lineup Appeals to small but highly influential group of consumers Expanding GM Brand Portfolio

8. 8 Prominent name in China’s mini-vehicle market Became part of GM brand portfolio in 2002 Number two brand in Asia Pacific by sales (after Buick) Expanding GM Brand Portfolio

9. 9 Officially introduced in 2004 Cater to high-potential premium and luxury segments Expanding GM Brand Portfolio

10. 10 Greatly expanding in China in 2005 GM’s largest global brand and world’s third largest Will become GM’s second volume brand in China alongside Buick Expanding GM Brand Portfolio

11. 11 GM Brand Pyramid

12. 12 GM Brand Pyramid

13. 13 GM Brand Pyramid

14. 14 GM Brand Pyramid

15. 15 GM Brand Pyramid

16. 16 GM Brand Pyramid

17. 17 Products Tailored for Brands – Not Vice-Versa

18. 18 Tailored Sales and Distribution Networks

19. 19 There is an Ongoing Debate Chinese-owned brands vs. foreign-owned brands Two separate issues: 1.Development of Chinese brands 2.Development of competitive automotive industry

20. 20 Enhancing Competitiveness Key to continued development of China’s 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. 21 Developing Integrated Value Chain Vital Create more employment opportunities Generate greater benefits for China’s economy Satisfy needs of Chinese consumers Promote competitiveness of China’s automotive industry

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