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General Motors Corporation

General Motors Corporation. Randy Queen - Account Executive Governments, Public Utilities, Advanced Technology Vehicles. GM - Energy and Environment Vision. “Our goal is to take the automobile out of the energy debate… to be part of the solution…”. Beth Lowery Vice President

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General Motors Corporation

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  1. General Motors Corporation Randy Queen - Account Executive Governments, Public Utilities, Advanced Technology Vehicles

  2. GM - Energy and Environment Vision “Our goal is to take the automobile out of the energy debate… to be part of the solution…” Beth Lowery Vice President Energy and Environment General Motors Corporation

  3. Energy and Environment “At GM, we believe tomorrow’s automobiles must be flexible enough to accommodate many different energy sources. And a key part of that flexibility will be enabled by the development of electrically driven cars.” Rick Wagoner Chairman and CEO General Motors Corporation LA Auto Show 11/29/2006

  4. Solving the 3E Challenge! • Energy • Environment • Economics

  5. Global Energy Consumption • 35% of global energy needs arecurrently met by petroleum • Imported oil • China — 46% • United States — 64% • European Union — 79% • Japan — 100%

  6. Global Energy Consumption • Energy demand • 2% annual growth through 2030 • 70% more energy will be needed by 2030 • Over 800 million vehicles in the world today • 1.1 billion vehicles in 15 years

  7. Why E85? • E85 is a clean-burning, renewable resource • Reduced greenhouse gasses • Reduced dependency on foreign oil • Help the U.S. Economy • GM builds the engines flexible to run on unleaded gas or E85 ethanol

  8. GM Practical Estimate of Potential U.S. Ethanol(Portion of U.S. Light-Duty Fuels – Year 2020) All percentages are on an energy equivalent basis. Based on University of Toronto data.

  9. Environmental – Reduce Greenhouse Gases • Corn-derived E85: 20% CO2 reduction • Cellulose-derived E85: 75% CO2 reduction

  10. GM’s Energy Diversity Strategy • Improve internal combustion engine • Utilize alternative fuels • Produce electrically powered vehicles

  11. Advanced Propulsion Technology Strategy Hydrogen Fuel Cell ImprovedVehicle Fuel Economy and Emissions Displace Petroleum Battery ElectricVehicles (Hybrids & E-Flex) Bio Fuels (E85, Bio-diesel) IC Engine andTransmissionImprovements Time Petroleum(Conventional & Alternative Sources) Bio Fuels (Ethanol E85, Bio-diesel) Energy / Fuel Diversity Electricity (Conventional & Alternative Sources) Hydrogen

  12. Energy and Environment • Double production of E85-capable vehicles by 2010 • Single largest commitment to renewable fuels

  13. Replacing Gasoline E85 capable vehicles from GM, Ford, Chrysler: U.S. could save 22BILLION gallons of gasoline annually

  14. Replacing Gasoline With ALL Vehicles: U.S. could save 37BILLION gallons of gasoline annually

  15. The GM U.S. “FlexFuel Club” 13 models for 2008 MY! Over 2 million on the road Chevrolet Silverado GMC Sierra Chevrolet Impala & Police Impala GMC Yukon andYukon XL ChevroletUplander GMC Savana & Chevy Express Chevrolet Avalanche,Suburban and Tahoe & Police Tahoe

  16. GM Marketing • Yellow cap • Flex Fuel badging • “Live Green Go Yellow” campaign • Dealer training and point-of-sale materials • Celebrity endorsement • Direct mail E85 campaign • In-school (grades 5-8) education program • E85 Days of Summer • National radio tours

  17. West to East High Level Summary – The Positive • UL Testing • Going well and could be resolved as early as 4th quarter • Necessary for big box retailers to consider • Stations Continue to Open • The West, Southeast, and Northeast are key to deployment outside ethanol producing states • Ethanol Production Continues to Rise • E85 in high producing states is very competitively priced • Rail leases continue to be an issue so producers are looking to move volume in local market

  18. West to East Summary • Governor’s Coalition • GM has extended the Governors' Ethanol Coalition Vehicle program that provides flex fuel vehicles to 30 member governors for promotion and education • Partnership Update • New York: Two additional stations in May • Washington, D.C: First of five stations announced June 28 • California: Brentwood station fuel flowing in July • Iowa: Partnership announced in August at the State Fair • Efforts starting in Oregon, Arizona, Georgia, Florida, Alabama, Tennessee, and Wisconsin

  19. Live Green Go Yellow Campaign • Phase II Launched on Earth Day -- December 2007 • Focus on 13 key markets with high E85 stations and where GM has partnerships • Chicago, Cincinnati, Denver, Des Moines, Minneapolis, Washington DC, Columbia, Columbus, St. Louis, Pittsburgh, Austin, Dallas, Houston • “Green” sites and search term to drive to LGGY site: • Ecoworld.com, greennature.com, MSNBC Environment, lime.com and greenbiz.com

  20. National Advertising Campaign • Fuel For Thought Brochure • GM’s leadership in fuel economy and alternative fuels • Weekly Reader E85 Curriculum Kit • 25,000 kits sent to schools across country • Winner of Distinguished Achievement Award from the Association of Educational Publishers • DJ Ambassador Program (April – November) • 16 national and 31 local DJs • Corporate Messages: Warranty, OnStar, Fuel Economy, and E85

  21. Yellow Gas Cap / FlexFuel Badge Promotion • GM customers who purchased a 2006/2007 E85 vehicle received an advisory in late April to go to their dealership for a computer software improvement • Dealers have the option to offer a free yellow gas cap and FlexFuel badge • Dealers received quantities of caps/badges, E85 pamphlets and instructions

  22. ‘Fuel for Thought’ Display at GM Test Track at Epcot • Opened October 2006 communicating GM messaging on E85, fuel cell and hybrid technologies in an engaging, interactive environment • GM Test Track attraction attendance averages 15,000 daily; over 4.8 million guests came through GM Test Track in 2006

  23. Regional Promotions Partnerships Established Partnerships Initiated Future Opportunities

  24. Regional Activation Recap • Q1-Q2 Activation 50+ Promotions (E85 & Hybrid) • Trade Shows  Press ConferencesRide & Drives • GRAMMYS  Academy Awards  Auto Shows • “Green” Expos/Summits  Pump Openings  DOE Clean Cities • GM Test Track Activities • Q3-Q4 Activation 150+ Promotions (E85 & Hybrid) • Sport Team Sponsorships  Trade Shows/Expos  Auto Shows • Country Music Awards  PSAs  River Days • Speedway Sponsorships  Indy 500  MLB All Star Game • MTV Video Music Awards Project Driveway  State Fairs • Earth Day Fuel Card Promotion  Media Tour • The majority of event activation include the following elements: wrapped display and courtesy vehicles, product specialists, literature, signage, and premiums.

  25. Regional & Local Marketing Groups • South Central Region and Kroger • Advertising using Chevy, E85 and Kroger imagery in key markets • Luncheons in Houston & Dallas for ethanol stakeholders • Fuel Pump Grand Openings • Distribution of Fuel Gift Cards to FFV Owners in Q3 • North Central Region and American Lung Association • Participated in over 200 E85 events • E85 postcard initiative in Iowa

  26. Regional & LMG Best Practices • Western Region – Drive For E85 Initiative • To capitalize on an increase in available E85 gas stations (40) and Chevy’s full line-up as a competitive selling advantage • Enhance cooperation between Colorado government, E85 retailers and Chevy dealers – co-marketing opportunities • Change opinion and consideration • Set the foundation for Chevy Fuel Solutions • Northeast Region – Project Drive-a-way • Dealers paraded 75 Silverado Pickups from Philadelphia Autoshow to fuel up at the grand opening of an E85 station Southeast Region and Spinx • South Carolina Chevy dealerships and Spinx gas stations, signage will highlight FlexFuel vehicles and E85 • Activation includes hole in one insurance for (3) golf courses and a sweepstakes giveaway for a Tahoe

  27. GM & VeraSun May 2005 SD GM, Chevron & State of CA Jan 2006 CA GM & VeraSun, GM & Shell Feb 2006 IL GM & VeraSun Mar 2006 MN GM, Kroger, Abengoa & State of TX Mar 2006 TX GM, Meijer, CleanFuelUSA & State of MI Apr 2006 MI GM, Meijer & State of Indiana May 2006 IN GM, Kroger & State of Ohio July 2006 OH GM, VeraSun & State of PA July 2006 PA GM, Inland Food & State of Florida Aug 2006 FL GM, Western Convenience, Pester & State of CO Feb 2007 CO GM, NYSERDA & KNC LLC May 2007 NY GM, VeraSun, Mid Atlantic Petroleum & Enterprise June 2007 Wash, D.C. GM, Kum and Go and the State of Iowa Aug 2007 IA Partnerships: 14 states, 270 stations

  28. Farm Bureau Partnership • Private offer of $500 toward the purchase or lease of most new GM vehicles – OR – • $750 toward the purchase or lease of any new GM E85 FlexFuel vehicle to select Farm Bureau members (same offer for retail and fleet customers) ELIGIBLE SELECT FARM BUREAUS TOTAL MEMBERSHIP = 2,110,000 Illinois Iowa Kansas Kentucky Michigan Minnesota Nebraska New Mexico South Dakota Tennessee

  29. Additional Marketing Support GM AssetCentral E85 Collection Promotional kit available for dealership, LMG and regional promotions Ad slicks and radio scripts available for LMG on GM AssetCentral

  30. Updated info at www.gmaltfuels.com

  31. General Motors Corporation Thank You Randy Queen - Account Executive Governments, Public Utilities, Advanced Technology Vehicles

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