Stellantis: Building a world leader in sustainable mobility

• A new company with the agility, creativity and efficiency to capture the opportunities of the new era of mobility, offering innovative solutions that will help change the way society moves
• Rich heritage stemming from storied and iconic automotive marques, innovative mobility brands and deep roots in the communities in which it operates
• Well positioned to compete in global markets with 39 electrified vehicles available by the end of 2021
• Significant scale with well-established commercial positions in Europe, North America and Latin America
• Strong opening balance sheet
• Targeting more than €5 billion of annual steady state synergies
• Robust governance structure from Day One dedicated to creating superior value for all stakeholders
• Unwavering commitment of the 400,000 employees to exceed consumer expectations and pursue greatness

Carlos Tavares and John Elkann

Today marks the launch of Stellantis NV [STLA] (“Stellantis” or “the Company” or “Group”), a world leader for a new era of sustainable mobility dedicated to providing freedom of movement with distinctive, affordable and efficient transportation solutions uniquely positioned to capture the exciting opportunities of a global industry undergoing rapid and profound change.

Formed from the combination of two groups with strong track records and sound finances, Stellantis is a truly global company of 400,000 diverse, highly talented and experienced employees who design, develop, manufacture, distribute, and sell vehicles and mobility solutions around the world while remaining deeply rooted in the communities in which they live and work.

11-member Board of Directors is led by Chairman John Elkann. Carlos Tavares as Chief Executive Officer leads one of the most experienced and successful management teams in the industry whose diversity, experience and competitive spirit are amongst its key strengths. With a deep bench of executive talent relentlessly committed to improvement and innovation, Stellantis is well-positioned to continue its founding companies’ track record of value creation for all stakeholders guided by a common principle: challenge the status quo.

With a proud heritage stretching back 125 years, Stellantis is home to a full portfolio of storied brands that have graced the road and conquered the podium in the world of motorsport. Founded by visionaries who infused these marques with passion and a competitive spirit, the brands cover the full spectrum of market segments from luxury, premium and mainstream passenger vehicles to hard-charging pickup trucks, SUVs and light commercial vehicles, as well as dedicated mobility, finance and parts and service brands.

Stellantis already has a well-established presence in three regions – Europe, North America and Latin America – in addition to significant untapped potential in important markets such as China, Africa, the Middle East, Oceania and India. With industrial operations in more than 30 countries, the Company has the ability to efficiently meet and exceed consumer expectations and deliver vehicles and services of unparalleled quality in more than 130 markets.

Stellantis starts from a position of considerable strength with robust operating margins reflecting the Company’s leading positions in North America, Europe and Latin America. Company expects to leverage its size and economies of scale as an enabler to invest in innovative mobility solutions for its customers, targeting annual synergies of more than €5 billion at a steady state. These synergy estimates will be achieved through the implementation of smart purchasing and investment strategies, optimizing powertrain and platform utilization, applying cutting-edge R&D and a continuous focus on manufacturing and tooling efficiencies. These synergy estimates are not based on any plant closures resulting from the transaction.

Nine Governance Committees will ensure an efficient operating structure from Day One, including company-wide performance & strategy, planning, regions, manufacturing, brand and styling.

Stellantis’ portfolio is uniquely suited to offer distinctive, sustainable mobility solutions to meet its customers’ evolving needs, as they embrace electrification, connectivity, autonomous driving and shared ownership.  As the electrified market continues to grow, Stellantis is well positioned today with 29 electrified models available and plans to introduce ten additional vehicles by the end of this year.

Company is strongly committed to playing an active part in contributing to the societies in which it operates, as it works towards achieving a long-term goal of carbon neutrality across all products, assembly plants and other facilities.

Marking the occasion John Elkann said: “It is no coincidence that Stellantis is born precisely when our world requires a new kind of automotive company that will champion clean and intelligent solutions to provide freedom of movement for all. Our global scale and reach provide us with the resources to invest in state-of-the-art technologies, distinctive excellence and unmatched choice for our customers. But it is the geographic and cultural diversity of Stellantis’ people that from Day One is our greatest competitive advantage. It is they, with their energy, their knowhow and their constant commitment who make Stellantis what it is today. And it is they who day-by-day will build an even greater company for this new era of mobility.” Commenting on the first day of Stellantis’ journey, Carlos Tavares said, “This is a great day. One year after we announced this project, Stellantis is born, notwithstanding the unprecedented societal and economic disruption caused by the COVID-19 pandemic. I want to warmly thank all of the teams who made this possible and also thank the entire workforce who continued to move our operations forward during this exceptional year. This demonstrates the agility, creativity and adaptability of our company which aims to be great rather than big, determined to be much more than the sum of its parts. It is also a further signal of the new company’s determination to be a leading player in the automotive industry in this ever changing environment. Stellantis is dedicated to “pursuing greatness” and enhancing the well-being of its employees.”

New company began trading yesterday, January 18, on Euronext (Paris) and the Borsa Italiana (Milan) and today on the New York Stock Exchange.

Full year 2020 results will be reported on March 3, 2021.

Groupe PSA and FCA agree to merge

New entity will have the leadership, resources and scale to be at the forefront of a new era of sustainable mobility

• Combines companies’ extensive and growing capabilities to address the challenge of shaping the new era of sustainable mobility
• Combined company will be the 4th largest global OEM by volume and 3rd largest by revenue with annual sales of 8.7 million units and combined revenues of nearly €170 billion [1]
• Creates a diversified business with among the highest margins in its core markets of Europe, North America and Latin America and the opportunity to reshape the strategy in other regions
• Merger will deliver approximately €3.7 billion estimated annual run-rate synergies with no plant closures resulting from the transaction – synergies are expected to be net cash flow positive from year 1
• Strong combined balance sheet and high level of liquidity provide financial flexibility with an investment grade credit rating expected
• Combined company will leverage investment efficiency across a larger scale to develop innovative mobility solutions and cutting edge technologies in new energy vehicles, autonomous driving and connectivity
• Broad portfolio of well-established iconic brands offering best-in-class products covering key vehicle market segments and delivering higher customer satisfaction
• Excellent working relationship between the two management teams, which share successful track records in turnarounds, value creation and successful OEM combinations
• Strong governance structure to underpin combined company performance with John Elkann as Group Chairman and Carlos Tavares as Group CEO, with a majority of independent directors [2]
• Strong support of long-term shareholders (EXOR N.V., Peugeot Family Group, Bpifrance [3] who will be represented on the Board

Fiat Chrysler Automobiles N.V. (“FCA”) (NYSE: FCAU / MTA: FCA) and Peugeot S.A. (“Groupe PSA”) have today signed a binding Combination Agreement providing for a 50/50 merger of their businesses to create the 4th largest global automotive OEM by volume and 3rd largest by revenue. The proposed combination will be an industry leader with the management, capabilities, resources and scale to successfully capitalize on the opportunities presented by the new era in sustainable mobility.

With its combined financial strength and skills, the merged entity will be particularly well placed to provide innovative, clean and sustainable mobility solutions, both in a rapidly urbanizing environment and in rural areas around the world. The gains in efficiency derived from larger volumes, as well as the benefits of uniting the two companies’ strengths and core competencies, will ensure the combined business can offer all its customers best-in-class products, technologies and services and respond with increased agility to the shift taking place in this highly demanding sector.

The combined company will have annual unit sales of 8.7 million vehicles, with revenues of nearly €170 billion[ 4], recurring operating profit of over €11 billion [5] and an operating profit margin of 6.6%, all on a simple aggregated basis of 2018 results [6]. The strong combined balance sheet provides significant financial flexibility and ample headroom both to execute strategic plans and invest in new technologies throughout the cycle.

The combined entity will have a balanced and profitable global presence with a highly complementary and iconic brand portfolio covering all key vehicle segments from luxury, premium, and mainstream passenger cars through to SUVs and trucks & light commercial vehicles. This will be underpinned by FCA’s strength in North America and Latin America and Groupe PSA’s solid position in Europe. The new Group will have much greater geographic balance with 46% of revenues derived from Europe and 43% from North America, based on aggregated 2018 figures of each company. The combination will bring the opportunity for the new company to reshape the strategy in other regions.

The efficiencies that will be gained from optimizing investments in vehicle platforms, engine families and new technologies while leveraging increased scale will enable the business to enhance its purchasing performance and create additional value for stakeholders. More than two-thirds of run rate volumes will be concentrated on 2 platforms, with approximately 3 million cars per year on each of the small platform and the compact/mid-size platform.

These technology, product and platform-related savings are expected to account for approximately 40% of the total €3.7 billion in annual run-rate synergies, while purchasing - benefiting principally from scale and best price alignment - will represent a further estimated 40% of the synergies. Other areas, including marketing, IT, G&A and logistics, will account for the remaining 20%. These synergy estimates are not based on any plant closures resulting from the transaction. It is projected that the estimated synergies will be net cash flow positive from year 1 and that approximately 80% of the synergies will be achieved by year 4. The total one-time cost of achieving the synergies is estimated at €2.8 billion.

Those synergies will enable the combined business to invest significantly in the technologies and services that will shape mobility in the future while meeting the challenging global CO2 regulatory requirements. With an already strong global R&D footprint, the combined entity will have a robust platform to foster innovation and further drive development of transformational capabilities in new energy vehicles, sustainable mobility, autonomous driving and connectivity.

The merged entity will benefit from an efficient governance structure designed to promote effective performance, with a Board comprised of 11 members, the majority of whom will be independent [7]. Five Board members will be nominated by FCA and its reference shareholder (including John Elkann as Chairman) and five will be nominated by Groupe PSA and its reference shareholders (including the Senior Non-Executive Director and the Vice Chairman). At closing the Board will include two members representing FCA and Groupe PSA employees [8]. Carlos Tavares will be Chief Executive Officer for an initial term of five years and will also be a member of the Board.

Carlos Tavares, Mike Manley and their executive teams have a strong track record in successfully turning around companies and combining OEMs with diverse cultures. This experience will support the speed of execution of the merger, underpinned by the companies’ strong recent performances and already robust balance sheets. The merged entity will maneuver with speed and efficiency in an automotive industry undergoing rapid and fundamental changes.

The new group’s Dutch-domiciled parent company will be listed on Euronext (Paris), the Borsa Italiana (Milan) and the New York Stock Exchange and will benefit from its strong presence in France, Italy and the US.

Under the proposed by-laws of the combined company, no shareholder would have the power to exercise more than 30% of the votes cast at shareholders’ meetings. It is also foreseen that there will be no carryover of existing double voting rights but that new double voting rights will accrue after a three-year holding period after completion of the merger.

A standstill in respect of the shareholdings of EXOR N.V., Bpifrance [9], Dongfeng Group (DFG) and the Peugeot Family (EPF/FFP) will apply for a period of 7 years following completion of the merger, except that EPF/FFP will be permitted to increase its shareholding by up to a maximum of 2.5% in the merged entity (or 5% at the Groupe PSA level) by acquiring shares from Bpifrance and/or DFG and/or on the market [10]. EXOR, Bpifrance and EPF/FFP will be subject to a 3-year lock-up in respect of their shareholdings except that Bpifrance will be permitted to reduce its shareholdings by 5% in Groupe PSA or 2.5% in the merged entity. DFG has agreed to sell, and Groupe PSA has agreed to buy, 30.7 million shares prior to closing (those shares will be cancelled). DFG will be subject to a lock up until the completion of the transaction for the balance of its participation in Groupe PSA, resulting in an ownership of 4.5% in the new group.

EXOR, Bpifrance, the Peugeot Family and Dongfeng have each irrevocably committed to vote in favor of the transaction at the shareholders’ meetings of FCA and Groupe PSA.

Before closing, FCA will distribute to its shareholders a special dividend of €5.5 billion while Groupe PSA will distribute to its shareholders its 46% stake in Faurecia. In addition, FCA will continue work on the separation of its holding in Comau which will be separated promptly following closing, for the benefit of the shareholders of the combined company. This will enable the combined group’s shareholders to equally share in the synergies and benefits that will flow from a merger while recognizing the significant value of both Groupe PSA and FCA’s assets and strengths in terms of market share and brand potential. Each company intends to distribute a €1.1 billion ordinary dividend in 2020 related to fiscal year 2019, subject to approval by each company’s Board of Directors and shareholders. At closing, Groupe PSA shareholders will receive 1.742 shares of the new combined company for each share of Groupe PSA, while FCA shareholders will have 1 share of the new combined company for each share of FCA.

Completion of the proposed combination is expected to take place in 12-15 months, subject to customary closing conditions, including approval by both companies’ shareholders at their respective Extraordinary General Meetings and the satisfaction of antitrust and other regulatory requirements.

Groupe PSA CEO Carlos Tavares and FCA CEO Mike Manley

Carlos Tavares, Chairman of the Managing Board of Groupe PSA, said: “Our merger is a huge opportunity to take a stronger position in the auto industry as we seek to master the transition to a world of clean, safe and sustainable mobility and to provide our customers with world-class products, technology and services. I have every confidence that with their immense talent and their collaborative mindset, our teams will succeed in delivering maximized performance with vigor and enthusiasm.”

Mike Manley, Chief Executive Officer of FCA, added: “This is a union of two companies with incredible brands and a skilled and dedicated workforce. Both have faced the toughest of times and have emerged as agile, smart, formidable competitors. Our people share a common trait - they see challenges as opportunities to be embraced and the path to making us better at what we do."

[1] Represents FCA Net Revenues, excluding Magneti Marelli, and Groupe PSA Revenue excluding Faurecia Revenue to Third Parties

[2] In compliance with the Dutch corporate governance code

[3] Bpifrance shall include jointly Bpifrance Participations S.A. and its wholly-owned subsidiary Lion Participations SAS

[4] Represents FCA Net Revenues, excluding Magneti Marelli, and Groupe PSA Revenue excluding Faurecia Revenue to Third Parties

[5] Represents FCA Adjusted EBIT, excluding Magneti Marelli, and Groupe PSA Recurring Operating Income excluding Faurecia

[6] Excluding Faurecia and Magneti Marelli

[7] To meet the objective of having a “majority of independent directors”, 5 out of 9 non-executive directors need to be independent

[8] Employee representatives would be defined based on legal requirements at all levels

[9] Bpifrance shall include jointly Bpifrance Participations S.A. and its wholly-owned subsidiary Lion Participations SAS

[10] Up to 1% of the shares of the merged entity plus the percentage of shares sold by Bpifrance, other than to the Peugeot Family (subject to the overall maximum of 2.5%)

Groupe PSA and FCA plan to join forces to build world leader for new era in sustainable mobility

Discussions have opened a path to the creation of a new group with global scale and resources owned 50% by Groupe PSA shareholders and 50% by FCA shareholders. In a rapidly changing environment, with new challenges in connected, electrified, shared and autonomous mobility, the combined entity would leverage its strong global R&D footprint and ecosystem to foster innovation and meet these challenges with speed and capital efficiency.

• Combination would create the 4th largest global OEM in terms of annual unit sales (8.7m vehicles)
• At its inception, the combined company would realize among the highest margins in the markets where it would operate, based on FCA’s strength in North America and Latin America and Groupe PSA’s in Europe
• Combination would unite the groups’ respective brand strengths across Luxury, Premium, Mainstream Passenger Car, SUV and Trucks & Light Commercial – making them stronger together
• Merged entity would bring together the companies’ extensive and growing capabilities in the technologies shaping the new era of sustainable mobility, including electrified powertrain, autonomous driving and digital connectivity
• Approximately €3.7 billion estimated annual run-rate synergies without any plant closures resulting from the transaction
• Highly respected combined management team recognised for exceptional value creation and with proven success in previous OEM combinations
• Dutch parent company Board would have balanced representation and a majority of independent Directors. John Elkann as Chairman and Carlos Tavares as CEO and member of the Board

Supervisory Board of Peugeot S.A. and the Board of Directors of Fiat Chrysler Automobiles N.V. (“FCA”) (NYSE: FCAU / MTA: FCA). have each unanimously agreed to work towards a full combination of their respective businesses by way of a 50/50 merger. Both boards have given the mandate to their respective teams to finalize the discussions to reach a binding Memorandum of Understanding in the coming weeks.

The plan to combine the Groupe PSA and FCA businesses follows intensive discussions between the senior managements of the two companies. Both share the conviction that there is compelling logic for a bold and decisive move that would create an industry leader with the scale, capabilities and resources to capture successfully the opportunities and manage effectively the challenges of the new era in mobility.

The proposed combination would create the 4th largest global OEM in terms of unit sales (8.7 million vehicles), with combined revenues of nearly €170 billion[1] and recurring operating profit of over €11 billion[2] on a simple aggregated basis of 2018 results excluding Magneti Marelli and Faurecia. The significant value accretion resulting from the transaction is estimated to be approximately €3.7 billion in annual run-rate synergies derived principally from a more efficient allocation of resources for large-scale investments in vehicle platforms, powertrain and technology and from the enhanced purchasing capability inherent in the combined group’s new scale. These synergy estimates are not based on any plant closures.

It is projected that 80% of the synergies would be achieved after 4 years. The total one-time cost of achieving the synergies is estimated at €2.8 billion.

The shareholders of each company would own 50% of the equity of the newly combined group and would therefore share equally in the benefits arising from the combination. The transaction would be affected by way of a merger under a Dutch parent company and the governance structure of the new company would be balanced between the contributing shareholders, with the majority of the directors being independent. The Board would be composed of 11 members. Five Board members would be nominated by FCA (including John Elkann as Chairman) and five would be nominated by Groupe PSA (including the Senior Independent Director and the Vice Chairman)[3]. The Chief Executive Officer would be Carlos Tavares for an initial term of five years and he would also be a member of the Board.

Carlos Tavares said: “This convergence brings significant value to all the stakeholders and opens a bright future for the combined entity. I’m pleased with the work already done with Mike and will be very happy to work with him to build a great company together.”

Mike Manley said, "I'm delighted by the opportunity to work with Carlos and his team on this potentially industry-changing combination. We have a long history of successful cooperation with Groupe PSA and I am convinced that together with our great people we can create a world class global mobility company."

The new group’s Dutch-domiciled parent company would be listed on Euronext (Paris), the Borsa Italiana (Milan) and the New York Stock Exchange and would continue to maintain significant presences in the current operating head-office locations in France, Italy and the US.

It is proposed that the by-laws of the new combined company would provide that the loyalty voting program will not operate to grant voting rights to any single shareholder in the Shareholders Meeting exceeding 30%[4] of the total votes cast. It is also foreseen that there would be no carry over of existing double voting rights but that new double voting rights would accrue after a three-year holding period after completion of the merger.

A standstill in respect of the shareholdings of EXOR N.V., Bpifrance Participations SA, DFG and the Peugeot Family would apply for a period of 7 years following completion of the merger. EXOR, Bpifrance Participations and the Peugeot Family would be subject to a 3-year lock-up in respect of their shareholdings except that the Peugeot Family would be permitted to increase its shareholding by up to 2.5% during the first 3 years following the closing, only by acquiring shares from Bpifrance Participations and DFG.

Prior to the completion of the transaction, FCA would distribute to its shareholders a special dividend of €5.5 billion, as well as its shareholding in Comau. In addition, prior to completion, Peugeot would distribute to its shareholders its 46% stake in Faurecia. This would enable the combined groups’ shareholders to equally share in the synergies and benefits that would flow from a merger while recognizing the significant value of FCA’s differentiated platform in North America and strong position in Latin America, including its market-leading margins in those regions. It would also reflect the added value that FCA’s higher-end global brands Alfa Romeo and Maserati would bring given their substantial development potential.

Extended portfolio would cover all market segments with iconic brands and strong products based on rationalized platforms and optimization of investments.

Proposal would be submitted to the information and consultation process of the relevant employee bodies, and would be subject to customary closing conditions, including final board approvals of the binding Memorandum of Understanding and agreement on definitive documentation.

Rüsselsheim Engineering Center Develops Next Four-Cylinder Petrol Engine Generation for Groupe PSA

• Innovative four-cylinder petrol engine family for highest efficiency and low emissions
• Market-introduction as of 2022 in China, Europe and North America
• Optimised for use with electric motors in hybrid systems
• Global responsibility for new engine family adds to earlier announced competencies in Rüsselsheim

The Rüsselsheim Engineering Center will take on the global responsibility for the development of the next-generation of high-efficiency petrol engines for all Groupe PSA brands (Peugeot, Citroën, DS Automobiles, Opel and Vauxhall). The next generation of four-cylinder engines will be optimised for operation in combination with electric motors and will be used in the drive train of hybrid systems. Market-introduction will begin in 2022.

The new generation of engines is designated for use in all Groupe PSA brands in China, Europe and North America, meeting the future emission standards of these markets. The power units feature state-of-the-art technologies such as direct-injection, turbocharging and variable valve control. The engines are thus highly efficient and will deliver low fuel consumption and low CO₂ values.

“Rüsselsheim already had global responsibility for engine development when we were still part of GM. With the development of the new generation of four-cylinder petrol engines, we can exploit one of our key competencies. The economic direct-injection, in combination with hybrid technology, will consolidate the strong position of Groupe PSA in lowering CO₂ emissions,” said Opel’s Managing Director Engineering, Christian Müller.

The Rüsselsheim Engineering Center has decades of experience in the construction of efficient petrol engines. The engineers are now developing the new engine generation on the basis of the current Groupe PSA four-cylinder PureTech units. These all-aluminium engine, which have a displacement of 1.6 litres, already convince with a high level of efficiency and direct throttle response – virtues that the successor generation will build upon.

The upcoming four-cylinder units form the second petrol engine family of Groupe PSA from 2022 alongside the well-known three-cylinder PureTech turbo engine that only recently won the “Engine of the Year” award for the fourth time in a row. In addition to the responsibility for the new engine family, the engineering team in Rüsselsheim also leads the development of light commercial vehicles (LCVs) for the entire group. This includes the development of LCV platforms and modules from advanced development to production maturity. Furthermore, Groupe PSA has currently established 15 Centers of Competence in Rüsselsheim – from hydrogen & fuel cell to seat development.

Groupe PSA chooses Atlanta for its North American Headquarters

 • Groupe PSA North America’s headquarters will be operational by February

• The latest step of its 10-year plan for a progressive entry of Groupe PSA into North American market

• Highly skilled people will join the team as Groupe PSA North America grows into broader fields of the business

Groupe PSA has chosen to establish its new North American headquarters in Atlanta, Fulton County. The headquarters will be operational by February 2018. A core team has already been set up to build the strategy and steer its execution. The decision to locate in Atlanta came after a yearlong, nationwide search to find the optimal balance of business environment, standard of living and workforce.

“We’re thrilled that Groupe PSA – the second largest carmaker in Europe and one of the top mobility providers in the world – has picked Atlanta as its new North American home” said Governor Deal after his visit in France end 2017. “Groupe PSA joins a growing family of automotive manufacturers and suppliers operating here in Georgia. This announcement is a great win for our state and yet another testament to the strength of our business environment and infrastructure.”

“We looked at every aspect of the Atlanta community and found it to be the most suitable location for us,” said Larry Dominique, President of PSA North America. “While the overall business environment, standard of living and university system played an important part in our decision, our unique needs in terms of technology, mobility innovation and car culture ultimately identified Atlanta as our perfect choice.”

In April 2016, Groupe PSA announced the return to the U.S. market in three phases plan as outlined in the 

Push to Pass strategic plan: mobility services at first, mobility services with Groupe PSA’s vehicles then and finally retail sales. The first step has been already initiated with Free2Move aggregation platform launched in October 2017 in Seattle before rolling into other cities in the coming months. This application allows users to choose between a wide range of car, scooter and bike sharing transportation services.

“We are at the epicenter of North America’s auto industry and we are excited to welcome Groupe PSA to Georgia”, said GDEcD Commissioner Pat Wilson. “When we visited PSA in Paris with Governor Deal a few weeks ago, we quickly learned that Groupe PSA would be a fantastic addition to our automotive community.”

!NEW! GM Sold 7.2 Million Vehicles in the First Nine Months of 2015

General Motors Co. (NYSE: GM) sold 7.2 million vehicles globally in the first nine months of 2015. The company posted sales increases in four of its five largest markets, with record sales in China and strong retail sales gains in the United States. Total sales were down 1 percent, due primarily to the company’s previously announced decisions to strategically reduce its presence in certain markets, as well as difficult market conditions in South America.

“Our unwavering focus on the customer is paying off in our largest and most important markets as we execute one successful launch after another in the right segments,” said GM President Dan Ammann. “At the same time, we have reacted quickly to challenging macroeconomic environments in other markets and have shown the discipline to exit situations where we see no long-term path to acceptable returns.”

Examples of GM’s recent success include:

• GM truck sales in North America were up 16 percent in the first nine months of 2015, driven by a 17 percent increase in Chevrolet truck deliveries in the United States.
• Chevrolet had record crossover sales in North America in the same period, up 17 percent year over year.
• In China, crossovers like the Chevrolet Trax and Buick Envision represented more than 17 percent of sales by GM and its joint ventures in September, up from 6 percent a year ago.
• Cadillac had record sales in China with deliveries rising 12 percent to nearly 57,000 units.

GM is preparing to launch even more new trucks and crossovers during the next several months, including the all-new Cadillac XT5, a redesigned Chevrolet Silverado and a diesel-powered Chevrolet Colorado for North America, and the Baojun 560 in China. Key car launches include the all-new Chevrolet Malibu and Cruze in North America and the all-new Opel Astra in Europe.

Additional Highlights (vs. 2014)

First Nine Months 

• In the United States, Chevrolet has reported six consecutive months of retail sales and market share gains and has strategically reduced sales to rental companies by more than 50,000 units through September.
• Opel / Vauxhall increased its European market share and grew sales in 19 countries, including Italy, Spain, France, the U.K. and Germany.
• Buick had record deliveries in China, with sales up 4 percent to nearly 670,000 units.
• Baojun had record sales, with deliveries rising 236 percent to more than 270,000 units.
• GMC’s global sales increased 11 percent, and four of the brand’s SUVs and pickup trucks – the Yukon, Yukon XL, Sierra and Canyon – have the highest average transaction prices of any vehicles in their respective segments in the United States, according to J.D. Power PIN estimates.

Third Quarter

• Among GM’s largest markets, sales rose in the United States, the U.K. and Canada.
• Opel / Vauxhall, Buick, Cadillac, GMC and Baojun all reported higher sales.
• Chevrolet had record crossover sales in the United States, up 24 percent, while Chevrolet U.S. truck sales increased 16 percent.
• Deliveries in South Korea were up 11 percent to record of nearly 43,000 units.
• Global sales were down 3 percent.  

GM Global Sales: January - September 2015

Calendar Year-to-Date
Region	Total  Sales	YOY Change	Pct. Change	Total  Sales	YOY Change	Pct. Change
GM North America	930,758	46,110	5.2%	2,685,342	126,257	4.9%
GM Europe	287,690	3,137	1.1%	898,236	(60,131)	(6.3%)
GM South America	150,142	(66,956)	(30.8%)	485,557	(156,749)	(24.4%)
GM International	191,847	(21,928)	(10.3%)	589,854	(41,525)	(6.6%)
GM China **	773,226	(33,902)	(4.2%)	2,492,428	38,215	1.6%
Total	2,333,663	(73,539)	(3.1%)	7,151,417	(93,933)	(1.3%)

Quarter 3				Calendar Year-to-Date
Sales by Brand **	Total  Sales	YOY Change	Pct. Change	Total  Sales	YOY Change	Pct. Change
Chevrolet	1,078,847	(112,998)	(9.5%)	3,291,133	(252,280)	(7.1%)
Opel/Vauxhall	272,619	14,007	5.4%	864,338	31,256	3.8%
Buick	300,335	10,858	3.8%	852,289	21,635	2.6%
Cadillac	67,895	997	1.5%	198,993	6,228	3.2%
GMC	176,222	11,100	6.7%	499,343	48,933	10.9%
Baojun	110,977	69,395	166.9%	270,488	189,857	235.5%
Wuling	286,155	(55,358)	(16.2%)	1,050,327	(100,110)	(8.7%)
All Others	40,613	(11,540)	(22.1%)	124,506	(39,452)	(24.1%)
Total	2,333,663	(73,539)	(3.1%)	7,151,417	(93,933)	(1.3%)

Notes:

GM North America = United States, Canada, Mexico, and other North American markets*

GM Europe = Western, Central and Eastern Europe

GM International = Asia-Pacific, Africa and the Middle East*

** Includes China retail sales

* Cuba, Iran, North Korea, Syria and Sudan are excluded from sales volume calculations

!NEW! GM Reports Solid First Quarter Operating Performance

Reaffirms 2015 outlook

• EBIT-adjusted of $2.1 billion, up $0.3 billion from Q1 2014, excluding recalls
• Repurchased 10 million shares for approximately $0.4 billion
• GM North America EBIT-adjusted best since company was established in 2009, expanding core operating margin for seventh straight quarter year over year
• GM Europe increased Opel/Vauxhall share in 11 markets and improved operating performance, despite Russia market challenges
• First quarter net income of $0.9 billion, up $0.8 billion from first quarter 2014
• EPS of $0.56, EPS adjusted for special items of $0.86

General Motors Co. (NYSE: GM) today announced first quarter net income attributable to common stockholders of $0.9 billion, or $0.56 per diluted share. The current quarter included a net loss from special items of $0.5 billion, or $(0.30) per diluted share.

Special items in the quarter included $0.4 billion related to the decision to change the company’s business model in Russia and $0.1 billion for an adjustment to the estimated costs of the ignition switch compensation program.

In the first quarter of 2014, GM’s net income attributable to common stockholders was $0.1 billion, or $0.06 per diluted share, including a net loss from special items of $0.4 billion or $(0.23) per diluted share, and the impact of recall-related pre-tax costs of $1.3 billion, or $(0.48) per diluted share.

Earnings before interest and tax (EBIT) adjusted was $2.1 billion and included the impact of $0.1 billion in restructuring costs. This compares to the first quarter of 2014, when the company recorded EBIT-adjusted of $0.5 billion, which included recall-related pre-tax costs of $1.3 billion and $0.3 billion in restructuring costs.

Net revenue in the first quarter of 2015 was $35.7 billion, compared to $37.4 billion in the first quarter of 2014.  

“Our results in the first quarter provide a solid foundation to achieve our financial commitments for the year,” said GM CEO Mary Barra. “Continued execution of our plan, including our capital allocation framework, will drive profitable growth, return on invested capital and shareholder value.”

GM Results Overview (in billions except for per share amounts and ROIC)

	Q1 2015	Q1 2014
Revenue	$35.7	$37.4
Net income attributable to common stockholders	$0.9	$0.1
Earnings per share (EPS) diluted	$0.56	$0.06
Impact of special items on EPS diluted	$(0.30)	$(0.23)
EBIT-adjusted	$2.1	$0.5
Automotive net cash flow from operating activities	$0.0	$2.0
Adjusted automotive free cash flow	$(1.7)	$0.2
% Return on Invested Capital (ROIC)	19.5	16.9

Segment Results

• GM North America reported EBIT-adjusted of $2.2 billion. This compares with EBIT-adjusted of $0.6 billion in the first quarter of 2014, which included the impact of a $1.3 billion pre-tax charge for recall costs.
• GM Europe reported EBIT-adjusted of $(0.2) billion. This compares with EBIT-adjusted of $(0.3) billion in the first quarter of 2014, which included
  $0.2 billion for restructuring costs.
• GM International Operations reported EBIT-adjusted of $0.4 billion, compared with EBIT-adjusted of $0.3 billion in the first quarter of 2014.
• GM South America reported EBIT-adjusted of $(0.2) billion, approximately equal to the first quarter of 2014.  
• GM Financial reported earnings before tax of $0.2 billion, matching its results for the first quarter of 2014. 

“Key vehicles like our recently launched full and mid-size trucks, and our cost discipline helped us deliver a solid quarter,” said Chuck Stevens, GM executive vice president and chief financial officer. “We continue to take decisive actions to address issues head-on and to drive the company to generate strong results.”

Cash Flow, Capital Return, Liquidity and ROIC

First quarter automotive cash flow from operating activities of $0.0 billion and adjusted automotive free cash flow of $(1.7) billion, were down from $2.0 billion and $0.2 billion a year ago, respectively. The declines in automotive operating and adjusted automotive free cash flows were primarily related to one extra weekly payment cycle to suppliers during the quarter compared with the same quarter a year ago, and cash payments related to recalls and restructuring.

Since announcing its $5 billion common stock repurchase program on March 9, 2015, GM has repurchased 19.4 million shares through April 21. Of this total, 10 million shares were repurchased through the March 31 trading date for approximately $0.4 billion. Additionally, GM paid common stock dividends of approximately $0.5 billion to shareholders during the quarter.

GM ended the quarter with strong total automotive liquidity of $34.2 billion.  Automotive cash and marketable securities was $22.1 billion compared with $25.2 billion at year-end 2014.

As previously announced, GM will reinvest in its business with the objective of driving 20 percent or higher average return on invested capital (ROIC) through investments in world-class vehicles and leading technology. Beginning this quarter, the company will report trailing four quarter ROIC. On this basis, ROIC at the end of the quarter was 19.5 percent, compared to 16.9 percent at the end of the first quarter of 2014.

Based on its first quarter results, the company reaffirmed the 2015 annual outlook it communicated on January 14. GM expects its total EBIT adjusted and EBIT-adjusted margin to increase in 2015, compared to 2014, after adjusting 2014 for the impact of recall costs, with improved automotive results anticipated in all regions.

!NEW! GM Sold 2.4 Million Vehicles Globally in First Quarter

General Motors Co. (NYSE: GM) sold 2.4 million vehicles globally in the first quarter of 2015, up 2 percent compared to a year ago. Sales in China increased 9 percent and deliveries in North America were up 6 percent. Opel/Vauxhall increased its sales by 3 percent in Europe.

General Motors sold 2.4 million vehicles globally in the first quarter of 2015, up 2 percent compared to a year ago.

“The momentum our brands are building in China, the U.S. and Western Europe more than offset difficult conditions in some other large markets like Russia and Brazil,” said GM CEO Mary Barra.

“We are in the early days of a very aggressive onslaught of new products and customer-driven innovation,” she said. “Already, the Chevrolet Trax and Colorado are redefining segments in the United States, Cadillac is growing rapidly in China and establishing a new formula for prestige sedans with the CT6 and Opel’s revitalization is accelerating across Europe. At the same time, we are deploying OnStar with 4G LTE in North America, Europe and China to give our customers the best connectivity experience in the industry.” 

Other first quarter global sales highlights:

• Cadillac was up 2.5 percent, driven by a 23-percent increase in China.
• Opel/Vauxhall’s sales increase outpaced the European region’s growth by 0.2 percentage points.
• Buick was up 8 percent.
• GMC was up 15 percent, for its best first quarter sales since 2005.
• Chevrolet deliveries in the United States increased 5 percent on the strength of a 19 percent increase in crossover deliveries and a 31 percent increase in truck sales. Deliveries in China were up 7 percent.

In prior quarters, GM reported wholesale deliveries in China, which are vehicles sold to dealers. Beginning this quarter, GM is reporting deliveries to customers.  

!NEW! General Motors Outlines Strategic Plan

General Motors CEO Mary Barra talks with media Wednesday, October 1, 2014, before outlining the company's customer-focused strategic plan to become the most valued automotive company, at a conference for investors and financial analysts at the General Motors Milford Proving Grounds in Milford, Michigan

General Motors Co. (NYSE: GM) CEO Mary Barra and her executive leadership team outlined the company’s customer-focused strategic plan to become the most valued automotive company at a conference for investors and financial analysts today at the company’s Milford Proving Ground.

GM CEO Mary Barra

“In the nine months that this leadership team has been together, we have spent a significant amount of time setting our goals for the future of GM and developing a specific action plan,” Barra said. “Our strategic plan is a pathway to earn customers for life and create significant shareholder value in the process. Every chance to connect with a customer is an opportunity to build a stronger relationship.”

GM’s strategic plan includes several major initiatives that the company anticipates will help it achieve 9- to 10-percent margins on an EBIT-adjusted basis by early next decade.

• Lead in Product and Technology: In 2015, about 27 percent of GM’s global sales volume is expected to come from products new or refreshed within 18 months. That figure is expected to rise to 38 percent in 2016 and 2017, and reach 47 percent in 2019.

During the same time frame, GM plans to execute the world’s largest automotive deployment of 4G LTE high-speed mobile broadband, introduce vehicle-to-vehicle connectivity in the 2017 Cadillac CTS and launch a highly automated driving technology currently called Super Cruise, which allows for extended periods of hands-free driving on highways.

GM has also developed an innovative Mixed Material Body Structure that uses GM-patented welding technology and a combination of steel and aluminum stampings, castings and extrusions to deliver designs that are lightweight, use 20 percent fewer parts, have class-leading torsional stiffness and exhibit superior noise and vibration characteristics.

• Grow Cadillac: GM is establishing its flagship brand as a separate business unit headquartered in New York City to pursue growth opportunities in the luxury market with more focus and clarity. Cadillac expects to introduce four new vehicles in North America in 2015, including the recently announced CT6. In addition, Cadillac plans to introduce nine new models in the next five years in China, which is expected to become the world’s largest luxury car market later this decade.

• Continue Growing in China: GM’s joint ventures in China are planning to invest $14 billion from 2014 through 2018 to open five new vehicle- manufacturing plants and support sales of just under 5 million vehicles annually. In the same time frame, GM expects to launch 60 new or refreshed vehicles, including nine new sport utility vehicles.

• Continue Growing GM Financial: GM Financial, which has seen its earning assets grow from $8.7 billion in 2010 to $37 billion today, continues to invest to support the sale of new GM cars, trucks and crossovers around the world. GM Financial has sharply increased the number of GM customers it serves in the United States, Canada, South America and Europe. Later this year, GM Financial expects to enter the growing Chinese market.

• Deliver Core Operating Efficiencies: GM’s strategy to improve relationships with suppliers, derive more global volume from fewer vehicle architectures and lower enterprise costs for material and logistics is expected to deliver significantly better variable margins on upcoming high-volume product launches, including the Opel/Vauxhall Corsa and Astra in Europe, and the Chevrolet Cruze and Malibu in North America. By 2020, the company expects that about 99 percent of global production will be on core architectures.

Mid-decade Financial Targets

During the meeting, GM also reaffirmed the company’s previously announced near-term financial targets:

• In North America, the company expects to achieve EBIT-adjusted margins of 10 percent in 2016.
• In Europe, the company expects to return to profitability in 2016.
• In China, the company expects that its joint ventures will maintain net income margins in the 9- to 10-percent range. 
• In South America, the company’s core operations continue to improve as a result of recent product launches and material and logistics optimization. 
• GM continues to address challenges in its international operations outside of China, including brand strategy, cost structure and sourcing to return to consistent profitability.

GM intends to return excess cash flow to stockholders primarily through strong and growing dividends based on sustained improvements in the company’s underlying financial performance.

!NEW! GM Delivered 9.7 Million Vehicles Globally in 2013

General Motors Co. (GM) dealers delivered 9,714,652 vehicles around the world in the 2013, up 4 percent compared with 2012. Among GM’s top five global markets by volume, China and the United Kingdom posted the largest year-over-year sales increases on a percentage basis, with each up 11 percent. GM’s China sales set a new full-year record. Sales in the United States increased 7 percent.

“A healthy auto market in the United States and China, and very successful product launches at all of our brands worldwide drove GM’s growth in 2013 and helped us navigate difficult conditions in Europe and parts of South America and Asia,” said Dan Ammann, GM executive vice president and chief financial officer.

Ammann, who has been named president of General Motors, will discuss the company’s outlook and strategy at the 2014 Global Auto Industry Conference hosted by Deutsche Bank on Wednesday, January 15, in Detroit. GM’s presentation will begin at approximately 7:30 a.m. EST followed by a Q&A session.

A live webcast of the presentation will be available here. Presentation materials will be posted in the Investor section of gm.com shortly before the webcast.

Going forward, GM plans to announce its global sales on a quarterly basis using this new template as part of the company’s effort to provide insightful and easily accessible information about its global growth strategy.

Highlights (vs. 2012)

• Chevrolet sold a record 4,984,126 vehicles in 2013, an increase of 19,304 from the previous record set in 2012. Key product launches included the Silverado, named the 2014 North American Truck of the Year, and the Corvette Stingray, named the 2014 North American Car of the Year.
  
• Cadillac’s global sales were up 28 percent. The brand ended 2013 as the fastest-growing full-line luxury brand in the United States, with sales up 22 percent following the introductions of the all-new XTS and ATS. In China, Cadillac’s sales grew 67 percent to a record 50,005 vehicles. Cadillac broke ground on a new assembly plant in China last year and plans to add one new model per year in the country through 2016.
  
• Buick’s global sales were up 15 percent as it introduced redesigns of the LaCrosse and Regal in all of its major markets and added new models in North America, including the Encore crossover. Dealers delivered 1,032,331 vehicles for the best year in the brand’s 110-year history. The previous record of 1,003,345 vehicles sold was set in 1984, before the brand entered the China market.
• Opel / Vauxhall sold more than 1 million vehicles globally and delivered a slight increase in European market share to the mid-5 percent range, its first in 14 years, following the successful launches of the Mokka and ADAM.

General Motors Co. (NYSE:GM, TSX: GMM) and its partners produce vehicles in 30 countries, and the company has leadership positions in the world's largest and fastest-growing automotive markets. GM, its subsidiaries and joint venture entities sell vehicles under the Chevrolet, Cadillac, Baojun, Buick, GMC, Holden, Jiefang, Opel, Vauxhall and Wuling brands.