General Motors' (GM) CEO Presents at 2014 Annual Meeting of Stockholders Conference (Transcript)

Jun.10.14 | About: General Motors (GM)

General Motors Company (NYSE:GM)

2014 Annual Meeting of Stockholders Conference Call

June 10, 2014 9:30 AM ET

Executives

Theodore M. Solso – Chairman

Anne T. Larin – Secretary

Mary T. Barra – Chief Executive Officer, General Motors Company

Michael P. Millikin – Executive Vice President & General Counsel

Dan Ammann – President, General Motors

Chuck Stevens – Executive Vice President and CFO, General Motors

Mark Reuss – Executive Vice President, Global Product Development, Purchasing and Supply Chain

Theodore M. Solso

Good morning ladies and gentlemen, and welcome to the 5th Annual Meeting of Stock Holders of General Motors Company. I’m Tim Solso, Chairman of General Motors and I will chair today's meeting.

The meeting is now called to order. I would like to begin by introducing Anne Larin, our Corporate Secretary of General Motors who will assist and act as secretary of the meeting. Also seated on the platform is Mary Barra, Chief Executive Officer, Michael Millikin, Executive Vice President & General Counsel, Dan Ammann, President, Chuck Stevens, Executive Vice President and Chief Financial Officer and Mark Reuss, Executive Vice President, Global Product Development, Purchasing and Supply Chain.

I would also like to introduce our incumbent directors and our director nominees. Please stand as I call your name and hold your applause until all have been recognized. Mary Barra, Erroll Davis, Neville Isdell, Kathy Marinello, Mike Mullen, Jim Mulva, Pat Russo, Tom Schoewe and Carol Stephenson. And we have a new nominee to our Board Joe Ashton, Vice President of United Auto Workers who wasn’t able to be with us today. Please recognize our incumbent directors and the new nominees.

Thank you, I would also like to recognize four directors who have retired since our last annual meeting Dan Akerson, David Bonderman, Rob Krebs and Cynthia Telles. All four directors served the Board in the company well and we thank them for their service.

Henry F. Phillips is here representing our auditor Deloitte & Touche, he will available for appropriate questions after the meeting. Henry would you please stand, he is over here, thank you. And finally, Gary Farrar of Broadridge Financial Solution which serves as inspector of elections is with us today. Gary is in-charge of the vote tabulation.

Let’s begin the meeting. Yang.

Unidentified Company Representative

Thank you Mr. Chairman. Notice was properly given and a quorum is present, the meeting is now opened for business. Copies of the minutes of last year’s meeting are available on the information table in the lobby.

Gary C. Farrar

We have eight items to consider today, six from the Board and two from stockholders. The first is the election of 12 directors nominated by our Board is set forth in the proxy statement. We received proper notice from a stockholder Mr. Love that he intends to make nominations for the Board. He will now have three minutes to introduce his candidate. Mr. Love, welcome.

John Love

Thank you sir. I just wanted – I don’t know – I was unclear on it when I asked about it if this was going to be a webcast, I understand its just the video is not going to be included in the webcast.

Gary C. Farrar

Yes, John it’s an audio webcast.

John Love

Well it should be video and for obvious reasons we've moved into the – out of the 20th century and I think its inappropriate for a company like this that claim to be transparent not to do that. So I would appreciate it if you would either adjust it now or correct it at some time. That’s one of the things that I want to talk about in my nominees what is needed to improve what's taking place here at General Motors.

I have been coming to all the public meetings for 15-years now, but I have never received a response from the thoughtful process that I put together to list specific improvements. I don’t want to come down here and just complain, I want specific actions that can be taken to improve the performance of this company and I have a great investment and we have a tale of two cities here, we have a bankrupt city of Detroit and we have had a bankrupt company.

I read in the newspaper in New York Times at Wagner on this ignition switch problem and 2004 drove a car what it happened to him and then here we have to finally have it resolved years later…

Gary C. Farrar

Mr. Love would you do your nominations, the regular comments we’ll see it at the end of the meeting.

John Love

Well this is what my platform is and I appreciate if you wouldn’t interrupt me that’s in consider…

Gary C. Farrar

You have only three minutes sir.

John Love

I will take my three minutes and I will talk about what I want to accomplish as a director and that’s entirely appropriate. I wish you would preset the time here so I don’t have to go over the time. Thank you. I want to deal with corruption. China and Mexico are corrupt operations, to function in those countries you have to make payments that’s how they do business. And China in addition to that they are hacking the computers and stealing technology, these people are not our friends, they’re taking advantage of us and that needs to be controlled.

There is no count on the sales, they include cars that we don’t receive any revenue are are accounted in these sales numbers from China and the Spratly Islands that’s what their intent is we are going to muscle our way around and Mr. Mullen should know about China and the performance, something should be done there. And the people from Wal-Mart know exactly what’s going on, this corruption at least two countries has to be dealt with and addressed that’s what I would want to do.

On the product side, the S10, I have one it’s a great vehicle, there is still a lot of them running around with this new pickup truck should have been a Montana from Brazil or smaller size as new one is too big and isn’t going to accomplish what should be intended. And as far as Opel goes, the mini van should be imported into the United States, so we have a mini van, it would also help the Opel economic situation that we’re dealing with. And I have an issue with driver distraction and I’ll give these copies to you about that.

I have a Cruze and there is two items that make it very difficult for me to use it that create a distraction. One is if you put your hand on the steering wheel you shut-off cruise control that’s very disruptive when you are driving along. The other one is these climate controls that are down practically next to the transmission selector. So you can’t read these buttons if you have bifocals if you can’t see them there is no tact or ability to search them out because they are all smooth and flush. So it makes it very difficult I practically have to stop the car-- I stop the car to change in the applications.

And I also have a copy of consumer report where they talk about the Cadillac and the tune system in there that’s the worst thing they have ever seen, because if you get close to it you are distracted. So these are issues that need to be addressed and one of the problems we say well the top management doesn’t know about these things. Well, I’m here to make you aware of this and the need to address those issues and that’s what I’m asking to do and that’s what my nominees, myself John Love and [indiscernible] Patrick would bore into to make sure that this isn’t just verbal transparency, this isn’t just verbal or going to change, but to actually make some changes and I appreciate a response to what I have put together on these different items.

Theodore M. Solso

Please leave the papers with the attendee there; we’ll take a look at it. Thank you very much.

John Love

All right, I appreciate it and thank you for your forbearance.

Theodore M. Solso

The second item is the ratification of the selection of Deloitte & Touche for 2014; the third item is an advisory vote on executive compensation; the fourth item is an advisory vote on the frequency of an advisory vote on executive compensation; the fifth item is the approval of the 2014 short-term incentive plan; the sixth item is the approval of the 2014 long-term incentive plan; the seventh item is a stockholder proposal regarding cumulative voting.

I will now recognize Mr. [Shevdon’s] (ph) representative to introduce the proposal…

Unidentified Company Representative

Anyway, cumulative voting; what that does is, it allows people to vote as many votes as they hold shares. And instead of voting for the individual directors, you can vote for a single candidate. So, in my case if I had 1,000 shares I can just vote 1,000 times the number of directors and vote them all for my candidacy. So, that’s what this proposal does to allow some better reflection of other view points.

The problem with many of these issues, is that they are not covered very well in the news media and it’s just – we just have shallow reporting in general, and that’s one of the things that makes it a little confusing on some of these different issues. We’re going to give -- contribute to the Detroit Institute of Art bankruptcy situation, [where they are comprising] $26 million.

We’re giving 10-times that amount of money to Illitch to build a new stadium in the City of Detroit. That’s how (indiscernible) all of our priorities are to build a hockey rink instead of having a great museum and having payments for our pensioners. The only place it really even covered it was the Metro Times, wasn’t even covered in any kind of detail in the local papers, because of the one-sidedness of it.

So, cumulative voting is an opportunity to try and address some of this, it’s kind of a difficult issue to comprehend, but…

Unidentified Company Representative

Thank you.

Unidentified Company Representative

Points involved. Thank you.

Unidentified Company Representative

The eighth item is a stockholder proposal regarding an Independent Board Chairman. I’ll now recognize Mr. Brasserie’s representative to introduce the proposal.

Unidentified Company Representative

Good morning.

Unidentified Company Representative

Good morning.

Unidentified Company Representative

Sorry fellows, out of order. I thought I read the same properly that item two is auditors, may I make my quick comment about that at this time.

Theodore M. Solso

Sure. Please do.

James Dollinger

Nothing against Deloitte & Touche, I don’t really know the company that well. I did a little research though and I saw they were the auditors for Parmalat and for Adelphia. And Parmalat had a $5 billion Cayman Island cash comp didn’t exist. They’re also auditor for just for fee -- $300 million to $400 million. We’re nothing.

We’ve had material weaknesses in our financial statements and we have had accounting irregularities. I don’t blame them for that, because they caught it, they disclosed it in financial statements. And my point is I think we should rotate the audit staff every five years, it is supposed to have the appearance of an arm’s length relationship, not hand in pocket and I’m not accusing anybody of anything.

I’m just saying as an accounting major, I’ve an accounting degree, familiar with stuff and congratulations to the management and staff here, we have good accounting though. But I think, maybe next year we have a proposal to rotate the audit staff, that’s all I have about that.

On the proposal number eight, our Chairman and CEO has spoke on this last year, we were fortunate about to have 35% approval rating. I think it’s important to look at this. And General Motors is very big company, one person to try to be Chairman and CEO, that’s just too much. And maybe that’s how we got in some of this recall stuff, product engineering stuff, sales and marketing needs to be looked at, and very glad to see that we have a separate independent Chairman and a CEO, Ms. Mary, you’re doing a fine job, [you got thrown to the wolf], proud to be representing you out in the field. Everybody up there, I know you guys, you’re good people.

I want to just tell you briefly, my name is James Dollinger, I’m a shareholder from Flint, Michigan. My dad was a GM dealer in New York. I was the nation’s top Buick salesmen six times. Then a General Manager of a couple of dealerships, and they have [won ability to ran a work in] for sales and marketing executives. I’m a licensed Michigan real estate broker, the founder of Generalwatch.com, kind of happened to be a guest in May on John McElroy, show Autoline, you might check it out.

I’m here today to speak on three topics; we already covered the audit staff. The second is the separate Chairman and CEO, I think it should be in the by-laws and I think the way that it’s proposed makes a lot of sense, people read it. Probably already voted on it, I don’t know how this stuff all works. But it’s just good business, good corporate governance, but I have no personal criticism of anybody up there on the dais, I’m behind you all the way and I think you’re doing a great job.

That’s all I have I’d like to speak on marketing at the general business section for just a few minutes.

Theodore M. Solso

I would ask you to come back at the end.

James Dollinger

Yes, at the end.

Theodore M. Solso

Okay, thank you.

James Dollinger

I don’t want to be out of order again.

Theodore M. Solso

All right.

James Dollinger

Once is enough, right?

Theodore M. Solso

You did a good job. Thank you. That completes the items for voting, there will be an opportunity following the meeting for questions. Any stockholder who has not voted or wishes to change an earlier vote please raise your hand now and one of our judges of election will give you a ballot. Is there anybody that needs to vote? Please raise your hand.

While you are completing your ballot and may we have the preliminary voting results.

Anne T. Larin

Mr. Chairman, for the first item the election of directors on a preliminary basis, each of the nominees for director identified in the GM proxy statement, received more than 87% of votes cast and has been elected a director.

For the second item, ratification of Deloitte & Touche. On a preliminary basis, 98% of the votes cast for the proposal, 1% was against and less than 1% abstained. Therefore on a preliminary basis, proposal is approved.

For the third item, advisory approval of executive compensation. On a preliminary basis, 96.5% of the votes cast were for the proposal, 3% were against and less than 1% abstained. On a preliminary basis, the proposal was approved.

For the fourth item, advisory approval of the frequency of the stockholder vote on executive compensation. On a preliminary basis, 83% of the votes cast were for a vote every year, less than 1% was for every two years, 16.5% were for every three years, less than 1% abstained. On a preliminary basis, the frequency of every year is approved.

For the fifth item, approval of the 2014 short-term incentive plan. On a preliminary basis, 96% of the votes casts were for the proposal, 4% were against and less than 1% abstained. On a preliminary basis, the proposal is approved.

For the sixth item, approval of the 2014 long-term incentive plans. On a preliminary basis, 95% of the votes cast were for the proposal, 5% were against and less than 1% abstained. On a preliminary basis the proposals is approved.

For the seventh item the stockholder proposal on cumulative voting. On a preliminary basis, 36% of the votes cast were for the proposal, 64% were against and less than 1% abstained. On a preliminary basis the proposal is not approved.

For the eighth item the stockholder proposal on independent board chairman. On a preliminary basis 38.5% of the votes casts were for the proposal, 61% were against and less than 1% abstained. On a preliminary basis the proposal is not approved.

Theodore M. Solso

Thank you, Anne. If you marked a ballot please hand it to one of our judges of election, so it maybe recorded for the final count by them. Judges please pick up any ballots, are there any ballots to be picked up.

We will provide the final voting results in a few days on our website and in an SEC filing. Thank you, stockholders for your votes and your support. That concludes the official portion of the meeting which is here by adjourned.

The next item on our agenda is the report on the state of GM's business and I’m very pleased to introduce, Mary Barra, our Chief Executive Officer.

All of us on the Board believe that Mary has done an outstanding job since becoming CEO in January. We did not envision the extremely difficult situation that she was faced with almost immediately, and we could not be prouder of the way she has represented General Motors. She and her management team have made a tremendous effort over the past few months and the Board has complete confidence that Mary and her team will lead General Motors to make the necessary changes. Mary.

Mary T. Barra

Again, thank you, Tim. And good morning and welcome to Detroit and the Global Headquarters of General Motors. I appreciate you being with us today.

Today’s meeting will show how we’re striving to serve the needs of both the stockholders and the customers by building great vehicles, working to create an exceptional ownership experience and embedding strong financial and operating disciplined into everything we do.

You can see our strategy at work in a number of ways. We have award winning products like the Chevrolet Impala, the Cadillac CTS, and the Chevrolet Corvette. Our dealers are building new and modern sales and service facilities, and we’re earning recognition on our sustainability efforts. I will also update you on our actions around the ignition switch recall.

But before I do that, I want to again express my personal and deepest sympathy for those who have lost loved ones or who have been seriously injured by this issue. I know there are no words that can capture and explain the grief and pain that each of you feel. So on behalf of the Company, please accept our apology.

You should know, as we move forward, I will be guided by two key principles. First, to do the right thing for those that were harmed, and second, to commit to doing everything in my power with the senior leadership team to make sure something like this never happens again.

I’m sure many of you know that we made two significant announcements last Thursday in connection with the ignition switch recall. The first was the completion of an independent investigation conducted by former U.S. Attorney Anton Valukas. Second, we discussed our commitment to create a compensation program for those who lost loved ones or who suffered serious physical injuries as a result of an ignition switch failure.

The Valukas report was drawn from more than 350 interviews with over 230 individuals and they reviewed more than 41 million documents. The report highlights a company that operated in silos, with a number of individuals seemingly looking for reasons not to act, instead of finding ways to protect these customers.

Repeatedly, individuals failed to disclose critical pieces of information that could have fundamentally changed the lives of those impacted by the ignition switch. If this information had been disclosed, I truly believe the company would have dealt with this matter appropriately.

Even though the investigators found no evidence that any employee made a trade-off between safety and cost in the investigation of the Cobalt, it is clear that no one did enough to protect these customers. The attitudes and the practices that allowed this failure to occur will not be tolerated. That is why 15 individuals who were determined to have acted inappropriately are now no longer with the company and five additional have received disciplinary actions.

The report also makes a series of recommendations in eight major areas and I’m committing the company to act on these recommendations. We’ve already taken action in each major area. As for the compensation program we announced, we are relying on the expertise of Kenneth Feinberg, who is experienced in designing and administering complex compensation programs is unmatched .

The program he will administer underscores our commitment to do the right thing and to treat accident victims and their families with compassion, decency and fairness. Pending Mr. Feinberg’s development of the final guidelines for the compensation program, we currently expect to begin accepting claims on August 1.

Our work to ensure customer safety and redoubling our efforts in this area explains to a large degree why we have had an increased number of recalls this year. It’s also important to note that about 70% of the vehicles we have recalled in 2014 in the United States involved vehicles that are no longer in production.

Having said that, we expect our redoubling efforts to be substantially completed by the end of the second quarter. In the near-term, you might expect to see a few more recalls, like those we announced last Friday. Nothing is more important to us than the safety of our customers. Absolutely nothing.

Today, General Motors is building the highest quality, safest, most efficient and best performing vehicles in our history. That’s just not my opinion, that’s represented by consumers, the media and others that evaluate our vehicles. The number support this as well. Last month, GM dealers delivered almost 285,000 cars, trucks, and crossovers in the United States. This was up 13% compared to a year ago and making it the company’s best May in seven years and the best total sales since August of 2008.

Our commitment to building the best products in the global marketplace guides our corporate strategy. We know, quite simply, that it is essential to both our near-term and our long-term success. This is why I’m optimistic about where we are and where we the company is heading.

For more than four years now, we have systematically and successfully executed a plan to grow around the world. We are deploying our capital more strategically to generate a higher degree of profitability. We have invested almost $11 billion of capital in the United States and 35 facilities since 2009.

Our joint ventures in China are working to produce production capability by 30% to more than 5 million units by the end of 2015. Our strategy there is to stay ahead of industry growth by answering the increased demand for luxury vehicles, SUVs, multi-purpose vehicles, and small passenger cars. Growth in China is one of the reasons that Cadillac sales are up nearly 10% this year, compared to a year ago.

In Europe, Opel is conducting the largest product offense in its history and will introduce 27 new models and 17 new engines by 2018. In South America, we have revitalized our Chevrolet product lineup with a full range of sophisticated, fuel-efficient and high-tech cars, crossovers and SUVs.

We are also working to build stronger businesses in South Korea, Australia and emerging markets around the world. And we are expanding GM Financial’s retail and wholesale finance product offerings in North America and growing its presence in Europe, South America and China.

These investments in our products and our plants have driven GM’s strongest and most consistent financial performance in decades. From 2010 through the first quarter of 2014, we have generated $630 billion in revenue, we have earned $32 billion before interest and taxes and delivered almost $18 billion in adjusted free cash flow. These numbers clearly show that North America and China, our largest regions, are strong and solidly profitable.

North America earned $7.5 billion before interest and taxes last year and equity income from our joint venture in China was a record $1.8 billion. GM Financial is also solidly profitable. Earnings before taxes were $900 million last year, and it is also helping us sell more cars and trucks around the world.

In South America, we were profitable in 2013, and we are taking the necessary steps to ensure consistent results going forward. In Europe, the team is doing a great job and relentlessly working to improve and strengthen the Opel brand to accelerate our turnaround. We will continue to strengthen our brands to keep this momentum going and to build on our successes around the world.

Key highlights for 2013 include: record sales from Chevrolet, which also swept the 2014 North American Car and Truck of the Year awards with the Corvette and the Silverado. Buick’s had its highest sale in its 110-year history. And Cadillac’s reemerged as one of the fastest growing full-line luxury brands around the globe.

In addition, we and our joint venture partners sold over 3.1 million vehicles in China in 2013. This represents an 11.4% increase over 2012. At Opel/Vauxhall we saw the first market share gain in Europe in more than 14 years. And GM received the U.S. Environmental Protection Agency’s Energy Star Partner of the Year Sustained Excellence Award in 2013, and again in 2014. This is for our ongoing leadership in protecting the environment.

These strong results have helped us achieved several important milestones. Your Board voted unanimously to declare a quarterly common stock dividend. The dividend for the first quarter of 2014 was paid on March 28.

GM is now part of the S&P 500 Index and Moody’s has elevated GM to investment grade status. Finally, the U.S. Treasury has sold its remaining share of the company. To be sure, we have faced some serious challenges since the beginning of 2013, and we had to make some tough calls. Among those were our decisions to wind down Chevrolet Europe and to restructure operations in Australia.

There will be more difficult decisions and issues ahead. But the path to success demands that we step up to every challenge and take decisive action, we are and we will continue to do so. The record I have just reviewed demonstrates that GM is changing rapidly and across-the-board for the good. And while I’m proud of these advances, I expect and I know you expect, more.

In my first few months as CEO, I have come to appreciate more than ever the full potential of this great company. The global automotive industry is among the most competitive businesses in the world today. In every market, consumers have more and better automotive choices than ever before and the competition is going to get tougher. This is the reality of this business.

Another reality is that GM is positioned to be stronger, leaner and more responsive than ever before. In my remarks last Thursday announcing the results of the Valukas report, I was totally candid about our shortcomings, but I also spoke about unleashing the full power of General Motors. Going forward, this is my mission. I want to unleash the full creativity and dedication of our 200,000 plus employees, the full power of our dealers to care for our customers and to build strong local relationships and the ingenuity of our engineers and suppliers to discover breakthrough technologies that benefit our customers.

Today GM is a very good company. Tomorrow we can be a truly great company. But we can only achieve this goal if we hold each other to the highest possible standards. Unleashing the full power of this company will not be easy to execute. That I know. But I believe it’s what we must do to make this the world’s best automotive company for consumers. Thank you.

Question-and-Answer Session

Gary C. Farrar

Thank you, Mary. Now we will take appropriate questions by stockholders from the floor. If you have a question or a comment one of ushers standing in the aisles can direct you to the microphone attended at the podium. Well, our ushers please raise your hand so that the stockholders know who you are. Thank you. Please keep your remarks brief and to the point and do not interrupt other stockholders. Speakers will have up to two minutes per turn. We’re now ready for the first question.

Theodore M. Solso

Good remarks. Thanks, Mary. Unleash creativity, I like that. You have sold 25,000 cars in my day, I read a book about Billy Durant. So I moved to Flint to get in the car business. Now I know you find folks. (indiscernible) with all my stuff, if you go to generalwatch.com my Return to Greatness plan that I wrote 10 years was on there. I recommend you have a look at it, talks about common sense like salary, sales, executives, spending a day in the dealership service department, some common stuff. Common sense stuff doesn’t cost anything like to have a look at it.

On John [Batchelor] show I spoke about Extra Mile, how we can give $500 free service to every license driving in the space. The dealers will pay for it in $50 every six months, costing $25, cars up [in the house] to get a test driver car. This is how we’re so fast. This is we’re doing. You’re fixing safety. Now we got to fix sales. If you fix sales and marketing they’ll put a statue for you in front of this place. I believe we can do it. We can do both. We got a great Chairman, great track record. I don’t know you, but I read about you, great track record, but I’ll tell you how we don’t do it.

86 pages of summary of what car you’re driving. If you’re leasing a GM car you’re going to rebate. If you own a foreign car you get a rebate. But if you own a GM car you don’t get a rebate. What county you live in? If you’re a member of this, if you’re in the Cattlemen’s Association USA ARP, it takes me a good two hours – and you got interview the customers. If they get all those stuff then you bought a car, you know what I’m talking about, I can call and get the price on a Toyota, takes 10 minutes, but I don’t want to sell one. But this is what needs to be really looked at. How are going to sell cars, how are we going to increase our market share. That’s what builds revenues, that’s what gets profit and the problems go away. Check you later.

Unidentified Analyst

Thank you very much.

Theodore M. Solso

You’re welcome.

Unidentified Analyst

Good morning. My name is [Bill Durant]. I’ve been a shareholder since you guys went public. Mary, first of all I want to congratulate you on receiving the new position. I want to congratulate your Board in doing a bold move and being the first of the big three to take the initiative. It was really needed. So I applaud on your leadership and the team, your Board and your executive leadership team for fine job they’re doing. Probably the concern (indiscernible) volunteer my time tirelessly. We’re trying to re-name the airport after (inaudible).

I’m just hoping that we can count on GM this time around, Delta assets for proposal. You guys are great corporate citizen. I’m just hoping that GM, the major company in this city will step up to the play to be accountable in helping us do the right thing. Mrs. Park was a great global citizen, but also a great icon of this country. So we got her statue by God’s grace and statute all last February. Unfortunately, Jim wasn’t able to be present, due to weather constraints here in Michigan, but it was a wonderful event. It was historical and that will open the door for you, your General Counsel to be here, diversity is your strength of your employees. So I pray to God that you guys do the right thing.

And then secondly, I just pray that you guys will be accountable. You don’t really need to go to Mr. Feinberg, do the right thing and make these people hold that will endure, that last about months. If any of you on your Board or your executive leadership team lost that level, I think you would want full accountability, full transparency and to do the right thing by whoever harmed you. So you don’t need to spend shareholders money to get Mr. Feinberg basically to tell you to do the right thing. You guys are capable in this organization of doing that. You got a fine legal team, do the right thing. I tell you, if you do it that way that only will be blessed in this country by God. You’ll be blessed globally and you sell a lot more cars. Thank you.

Gary C. Farrar

Thank you.

Unidentified Company Representative

Mr. Chairman, I want to express first of all thanks to GM for your impact across the years in making America better from the days of the (indiscernible). GM has been a breakthrough company. You’re working (inaudible) crisis in South Africa, you were there, fighting from the [last time] in this state you have been there and for these years of service we are all indebted. On the other hand, few years ago all banks and our automotive industry were virtually down. And thanks to President Obama there was a huge bailout.

Good news is that the bailout has turned into a blossoming new face and substance in this company and in the banks of America. What I am unconcerned about the day is number one, I want to express thanks and congratulations to further – Mary Barra. You faced the crisis with integrity and courage and transparency and contrition. Anything you [listen] with pretty great reaction, in the crisis because of lack of integrity and cowardice and lack of transparency and lack of courage. So we knew that and very specially want to express thanks to you for that leadership.

During this crisis, in the downturn how African Americans were about 12% of this company - market, the fuel is about 9% of Asian Americans about 4%, about 25%. If you recently represent a verdict on how horizontal are they at the level to come at this and top down, top environment like a snow capped mountain, which deserved to be an opportunity for the love of the company. We were at about 700 dealerships a few years ago. Now we’re down to about 250. There must be some plan of restoration. We lost about 500 dealers, about 500 suppliers during this season. The impact is astronomical in our communities. There is another dealership coming out even in Detroit and that’s a big deal to us.

I want to say that we’ve been working lot lately with Silicon Valley, trying to open up private America and they refuse Apple and eBay and the like Amazon refused to open up the [year yield] records. You’ve done just that, which is more of the transparency that we see. You set the model for the rest of the country. But now it’s time Madam, President, Madam Barra, [seizure] of our share of dealerships, suppliers and lawyers, ad agencies, professional services, there is no shortage of talent in those areas. They must be given the opportunity they’ve never had before.

I’m hastened to say that during the Akerson period Mr. Reuss did a great job. We thank you very much are being sensitive and they’re all the bill analysts and play that, (indiscernible) been out of business had not been for your sensitivity (inaudible) during that period, then we thank you for that. But now is the time to have a complete renaissance that’s vertical and horizontal. And this market, the 25% market deserves a place from a permanent than it has had historical than it has today. We took the biggest hit during the recession.

I hope Ms. Barra, there will be some plan that we can agree on together for restoration and reconstruction. Our experience of inclusion --of growth and that growth everybody wins. As a sense of many people that includes them that is they’re so famous, not so. And there’s inclusion, there’s more growth most of this – ship inside the city limits, most does not.

Chicago does not for example, Philadelphia does not, Washington D.C. does not. There’s what (inaudible) represents and not the price of doing business, we represent market, money, talent, location, which leads to growth. And just with that growth and the China market and the South Korean market, our markets were substantially closer, [moves it to and] just lucrative, please allow us to be a growing part of this company’s rebirth . thank you very much.

Mary T. Barra

As it relates to diversity, I think we have, since we came through other restructuring have made progress, but we have more progress to make as you mentioned in the areas of representation and our dealership of obviously working across our supply base. We are working to develop more robust programs in each of those areas, in addition to financial services. So we will continue to do that and welcome the dialogue and ideas to how we can continue to get better. So thank you very much.

Unidentified Company Representative

I wish you consider that we have a vast part about 110 -- colleges that you support in some level, some or another. There would be a more direct link between these supply bases of talent and the company, because if that happens. And then for them, they graduate not with a guaranteed debt without a guaranteed job. But one, they are the most talented, most gifted and yet also the most unemployed and some of them (inaudible) meet at the appropriate time, (inaudible) plan to have a pipeline between your procurement in that supply base. Thank you very much.

Unidentified Company Representative

Thank you.

Unidentified Company Representative

Thank you very much.

Unidentified Company Representative

Good morning.

Unidentified Company Representative

Good morning

Unidentified Company Representative

And my name is (indiscernible) I am a shareholder as well as the President of NAMAD which is the National Association of Minority Auto Dealers. and we want to thank Mr. Reuss last year for his leadership and working with him, and also I want to welcome you Ms. Barra and your leadership as well. And today, we represent, NAMAD represents all the [asset] minority and all new car dealerships in U.S. Currently, they are a little over 1,200 minority-owned new car dealerships of which about 270 are owned by African-American.

This last year, my (inaudible) for you as well as Raymond Jackson to bring a point of concern that we have with General Motors, particularly as it relates to its minority dealer body, specifically, it’s African-American dealer body. We want to bring to your attention that we are happy that with some improvements have been made, and (inaudible) has made a commitment to increase the dealer body, be aggressive than its searching, and advocating and searching for more stores, utilizing motors holding and that has been done over this past year. So we want to thank you for that. We don’t want to give it a pass, but we still have a lot more work to be done. This past year, I think over 10 appointments have been made, have been minority appointments, and of which five are African-American.

So again, we want to thank you for your commitment. thank you for honoring, but do what you said is we wanted to do, and that you plan and going with the urge that you continue to do, and be more aggressive than this upcoming years than years just come, to come up with a plan to increase the minority dealer party. Thank you.

Unidentified Company Representative

Thank you.

Unidentified Company Representative

Yes, I’ve spent hour in Harbor, Michigan. I wanted to complement you folks on getting GM to continue to improve. there are two things; one is the raising the debt grade up to investment grade, that’s a big financial plus for the corporation. The other is that either I have to disagree with the prior speakers, that you see get rid of the guy Fienberger, whatever is handling this key ignition problem, I do think an independent person, such as him is the way to go, but that’s all, that’s up to you guys.

As a shareholder and a person in-charge of a small mutual fund and have some contacts now more limited on Wall Street, I used to work in lower Manhattan in the 1980s. if there is grave concern with the public statement made by Mr. Williams, a newly elected head of the UAW. He wants to go back to the old pay level where everyone is at the high pay level, the two tier system now.

If that comes to pass and Ms. Barra, you’re going to have to potentially deal with him I think as the drift of it is that it will put a cost structure of GM once again to an uncompetitive level and a dozen years from now, it’s going to be back to bankruptcy and congress will not be so forgiving .

There is a serious concern in Wall Street about those public statements. Is it grandstanding or is it legitimate? I don’t know. But the out years, if it comes to pass, as he has projected it, the out years look very grim. And the only thing I can say as a bit of an outsider, and your background is much better at this know-how than people are in the skilled trade is that if Mr. Williams wants his children to have any future in the American auto industry, the car companies must survive although all will be working for the transplants, that’s basically yes, it’s for their children. So that’s about it.

Unidentified Company Representative

Thank you.

Unidentified Analyst

Good morning. We will say to more from Rochester Hills, Michigan, former GM’s salaried employee and shareholder. I complement you and all of the good things that you have done. I think those are all the right moves. What I do have, which is a little different than the other speakers is I have a question.

The question is that with all of the good things that you have done and you didn’t establish a dividend for the GM stockholders for $0.30 a share and – but that basically was there before it isn’t any better. A question is what is the board of director’s position with respect to dividends and share buybacks in the future?

Unidentified Company Representative

The board recognizes that we want to have outstanding shareholder returns both in terms of dividends, as well as in stock buybacks. And since the company is doing much better today, you can see the cash flow, our ability to both pay dividends, as well as do stock buybacks is greatly increased, but we support that there are certain portion of the capital we have should be returned to the shareholders and invested in the business, but we also want to maintain a very strong balance sheet. so we can withstand some of the variation and the changes in the marketplace that we’re faced with.

Unidentified Analyst

Thank you.

Unidentified Company Representative

Thank you.

Unidentified Analyst

Good morning, once again. my name is Bill Preston with Roots Worldwide. and I volunteer with Rosa and Raymond Parks Institute for Self-Development handy trade-off that is from the California, but…

Unidentified Company Representative

Great.

Unidentified Analyst

Thank you sir. thank you so much. I want you to thank you for great presentation, Mary. My question really goes back, I’ve spent a lot of time oversees with my company, and I was in Korea twice last year for the USC, MIMA Motors Global Conference and the two trips I made in February and May of last year. I just don’t see the GM product out on the street, and you have operations there. in the last earnings call, a few months, I mean a few quarters ago, you guys indicated, what Dan indicated that you guys would be pulling out of South Korea, if I understand that correctly. But as I interpret that correctly was several quarters ago during the earning call that I guess, you guys.

And then also in Australia that there will be less resources, allocated to Australia. but for South East Asia, that’s a good market . I’m just trying to get more clarity on that, because you indicate that Australia was area that you’re ramping up, and then also in Korea. but I’d just see kind of a disconnect between those two areas, right. I was a little concerned as obvious shareholder, and I just want to be able to give accountability of my wife and son, might be biggest shareholders. Thank you.

Mary T. Barra

Well, before your question as it relates we are building the Chevrolet brand in Korea, and we’re seeing increases, while evaluating the product portfolio to make sure. we have the right products that the customers are looking to buy in the key segments, and we’ll continue to do that, and build the Chevrolet brand in South Korea. and as it relates to Australia, we still have the Holden brand, a very strong brand and we’ll continue to sell vehicles. although, we did cease -- our plan to going forward cease our manufacturing operations in Australia, but we still plan to sell, have a national sales company and continue to sell vehicles in Australia.

Unidentified Analyst

Okay, sounds great. Can I have a follow-up question, I was in the conference last week in LA and the EU ambassador of the United States made a comment, and even though he is basically making a comparison between quality in terms of U.S. standard, which is out in the European Union. and I just want to get your take on that. it was just an interesting dialog that quite had a global market conference, let us focus on Europe. He says 500 customers are out there, we’re open for business with pretty small businesses such as myself and large companies like yours to participate in that new opportunity and the trade line – the trade agreement that’s been negotiated between our governments and I’m praying our governments will both sides get their act together. So we don’t have this missed opportunity, but just want to get your take on his drive in terms of quality in United States versus that in – I mean in Europe and European Union Zone in terms of quality?

Mary T. Barra

I don’t have the benefit of hearing his comments. so I don’t know if that will be appropriate for me to comment.

Unidentified Analyst

No, respectively. thank you, Mary. God bless, thank you.

Gary C. Farrar

But I would say that our quality standards should be and/or the same around the world in all of our markets and that is to have the best quality and safest cars that we can possibly have.

Unidentified Analyst

Yes sir. thank you so much.

Gary C. Farrar

Thank you.

Unidentified Company Representative

Thank you.

Operator

Any more questions or comments?

Unidentified Analyst

[Question Inaudible]

Gary C. Farrar

Why don’t you come up to the podium, so that everybody can hear you?

Unidentified Analyst

[Question Inaudible]

Gary C. Farrar

Don’t hold your breath okay. All right without any more questions or comments. I do want to thank everybody for attending today. Thank you for your comments and your questions. Thank you for your votes and support from the shareholders and I can tell you the Board, and Mary and the management team are committed to making GM a great company. So thanks and we’re adjourned.

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