Tom Stephens (Vice Chairman, Global Product Development)



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DC Auto Show 1/26/2010

Tom Stephens (Vice Chairman, Global Product Development)

­­­­­­­­Good morning.
Thank you for joining us today.
As many of you know, GM has been talking about, and preparing for, the electrification of the automobile, for some time now.
In 2007, we introduced the Chevrolet Volt concept car…

an extended range electric vehicle… that's on schedule

for production later this year.
Just a few weeks ago, three years to the day, after showing the Volt concept… we opened a battery assembly facility, in Michigan, that is now producing, the first battery packs for the Volt.
Today, I'm pleased to announce, that GM will be the first

U.S. automaker, to design and manufacture, its own electric motors.
We've had some experience with electric motors over the years.
The 1912 Cadillac, which featured the first electric starter… eliminated the need for a hand-crank… and revolutionized automotive travel for our customers.
We think the electrification of today's automobiles will be just as revolutionary, for our customers and country.
If the battery pack is the heart of the electric vehicle… the electric motor is its muscle.
It literally makes the wheels go round.
We intend to lead the industry, in advanced propulsion technology.
To do that, it's important for us to make electric motors, an in-house core competency for GM.
The same is true for lithium-ion battery technology, and power electronics.
Automotive electric motors face a more rigorous set of demands, than electric motors for other applications.
In short, electric motor applications in cars, require a lot

of knowledge, capability, and expertise.
At GM, we've already begun the process, and we plan to continue it.
Bringing this in-house, will improve our performance, quality, and reliability… and make electric motors more affordable.
We'll build these electric motors in the U.S.
We'll invest in U.S. facilities, and create local jobs.
By producing electric motors in-house, we can improve them and thereby increase the efficiency of the battery …

resulting in greater vehicle range and lower vehicle costs.

Our goal is simply to establish GM, as a leader in automotive electric motors.
We see that leadership as a key enabler, -- both to our long-term success -- and to our nation's move away from its dependence on oil.
We want to contribute, to America's leadership in this growing technology, and to provide solutions to match our nation's energy, and environmental priorities.
The development of electric and hybrid vehicles is creating entire new sectors in the auto industry.
It's creating an 'ecosystem' of battery developers and recyclers… builders of home and commercial charging stations… electric motor suppliers… and much more.
We won't be doing everything in-house, so there is room for many partners and suppliers.
Companies and universities are creating new jobs across the U.S. - green jobs.
They're doing it, by developing new technology, establishing new manufacturing capability, and strengthening America's long-term competitiveness.
Our commitment to that process has particular relevance today, to the Washington, D.C. area.
I'm pleased to announce, that Washington D.C. will join California and Michigan, as an initial launch market, for the Chevrolet Volt, when it goes on sale later this year.
Launching in California, Michigan, and here in Washington, gives us important East Coast, West Coast and Midwest platforms to launch the Volt.
Now, to tell you a little more, about the future of Chevrolet's U.S. strategy… in which the Volt plays a key role… I'm pleased to introduce Chevrolet general manager,

Jim Campbell.

JIM CAMPBELL (General Manager, Chevrolet)

Thank you, Tom.
Good morning.
Building on Tom's remarks, I'd like to give you an overview of Chevrolet's growing family of efficient small and compact cars.
Each one designed to be a Chevrolet from the ground up… for markets across the globe.
This range of cars is designed to appeal to the wide variety of customers that are looking for... safe, reliable transportation... with great value and leading fuel efficiency.
In fact, our "gas-friendly to gas-free" theme is well represented in these cars.
Tom Stephens has shared the exciting news that Washington will be one of the lead markets for the Chevrolet Volt.
The Volt will offer most drivers a commute that is gasoline-free.
Volt is not a hybrid... or a plug-in hybrid.
It's in a unique category... an electric vehicle with extended-range capability.
That means Volt is a complete electric vehicle that can be recharged simply, affordably and conveniently -- providing up to 40 miles of gas-free driving.
That's important because nearly 80% of drivers commute... like me and many of you... less than 40 miles per day.
However, if your lifestyle requires you to go a little further on any given day, Volt is the answer for you.
When the battery is depleted and you don't have time to recharge... a generator seamlessly extends your range about 300 miles.
So for today's eco enthusiasts, Volt offers peace of mind by eliminating range anxiety.
It also offers technology beyond the battery…
Just a few weeks ago, Chevrolet and OnStar demonstrated

the auto industry's first smartphone application to enhance

the Volt ownership experience.
This technology will give Volt owners a 24/7 remote connection to their vehicle.
With this mobile app, owners can use their smartphone to check the battery level, set a charging schedule, warm or cool their car remotely, and much more.
We also wanted to inject some style and fuel efficiency into the small car segment.
That's why Chevrolet's all-new mini-car for North America, the Chevy Spark, will be big on style... big on fuel economy, as one of the most fuel-efficient four-door entries in its segment...
The intent was to develop a fun and stylish mini-car with versatility and expressiveness... that would appeal to younger buyers all over the world.
The Spark is launching in Europe right now, to be followed by other markets around the globe… with production starting for the U.S. late next year.
And, last month we introduced the North American version of the Chevrolet Cruze.
It’s already on sale in Asia and Europe with strong market acceptance... in fact Cruze has achieved 5-star safety-ratings everywhere we sell it today.
When we start Cruze production for the U.S. market later this year at our Lordstown, Ohio facility, it will come standard with 10 airbags... unmatched in its segment.
Cruze also brings midsize car presence to the compact car class with... more interior room than the competition and upscale amenities such as Bluetooth, USB and navigation.
The new Cruze will lead the way for Chevy in small displacement turbocharged engines that are highly

fuel efficient... and fun to drive.
In fact, we project Cruze will get up to 40 miles per gallon on the highway with our high-efficiency model powered by a 1.4 liter Ecotec Turbo-charged engine.
Now, when the Spark mini-car is introduced in the U.S. ... it will be our smallest entry.
And Cruze will offer mid-size car presence in the compact car class.
That leaves room for another entry between Spark and Cruze in our growing Chevy car line-up... and we intend to fill that space with the next generation Aveo.
The vehicle on display to your right is the Chevrolet Aveo RS show car, which provides a hint of what the next generation Aveo might look like…
This show car is Chevy's expression of a Euro-inspired "hot-hatch" aimed at younger buyers.
Far from being an econobox, the RS show car looks like

a performance car.
It's built on an all-new architecture and it's longer than the current Aveo, with a wide performance stance.
The exterior style is bold with an aggressive face... an integrated spoiler and center exhaust with tuner-inspired chrome tips.
The interior is spacious, stylish and functional, featuring... Chevrolet's signature dual cockpit design… with a motorcycle-inspired cluster and readouts, ice-blue illumination, and black leather with contrast blue stitching.
The Aveo RS showcar demonstrates the key attributes of the next generation Aveo… roomier, more refined, and with a lot more attitude
The Aveo RS is powered by a 1.4-liter turbocharged Ecotec engine...with a six-speed manual transmission... for that great combination of fuel economy and performance.
Hopefully, you can see how this new Aveo ... would fit in nicely with this family of smart and efficient cars from Chevrolet...
I'd also like to mention that Chevrolet is committed to build the next generation Aveo for the US market here in the US.
The Aveo will be manufactured in our facility in Lake Orion, Michigan in 2011.
Each one of these vehicles is designed to appeal to

a different set of customers, with style and performance that reflects their personality… all on a budget they can afford.
Together, these new cars stretch the boundaries of traditional small and compact car segments... and present a clear value in the marketplace.
With that, I'd like to thank you for your attention.
Vice Chairman Tom Stephens, and I are available for any questions you may have.
Thank you.


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