(cefam) fin220 - gm/ford

FIN 220 PRESENTATION

Désir Mporamazina Alexis Cuny Saly Diop Térence Vergne

Bankruptcy

When businesses become insolvent, meaning they service their debts, they have two possibilities Reorganization (Chapter 7)

IR down Term to maturity up Some debt exchanged for equity

Liquidation (Chapter 11) When the company is deemed

to be to far to be saved

Why GM and Ford are going Bankrupt !

Part I

Risks due to Political and Economic Situation Volatility of gas prices .> shift in demand: SUVs and

light trucks to smaller cars Slowing economic growth ->cars=durable goods->

purchases delayed Commodities prices -> GM/Ford dependent of steel

and plastics Cessations of govt incentives on certain vehicles Geopolitical events such as war of restrictive

customs are bad for the business Currency

Comparisons

0 1

-0.20-0.100.000.100.200.300.400.500.600.700.800.901.001.101.201.301.401.501.601.701.801.902.002.102.20

-0.11

0.59

0.62

0.950.95

1.50

1.62

1.791.88

1.93

2.10 Beta Coefficients

Tata Motors, Ltd.

General Motors Corporation

Daimler AG

Ford Motor Company

Fiat S.p.A.

Nissan Motor

Bayerische Motoren Werke AG

Fuji Heavy Industries

Honda Motor Company

Toyota Motor Corporation

Volkswagen AG

229.460

149.733

149.021

148.979146.277

111.863

92.758

80.094

76.65858.167 13.764 8.102

TTM Sales ($million) Toyota Motor Corporation

Daimler AG

Volkswagen AG


Ford Motor Company

Honda Motor Company

Nissan Motor

Fiat S.p.A.


Industry Average


Tata Motors, Ltd.

Industry overview: Beta Coeffi cient, TTM Sales, Market Capitalization, and

Number of Employees

0

50

100

150

200

250

300

350

400 369.927999999999

322.045

273.215999999999

243.000213.000

198.348186.421000000001

158.201

100.041

36.36427.884

Number of Employees (in thousands)

Volkswagen AG

Toyota Motor Corporation

Daimler AG


Ford Motor Company

Fiat S.p.A.

Honda Motor Company

Nissan Motor


Tata Motors, Ltd.


Company NameMarket Capitalization

($million)

Toyota Motor Corporation 102,527

Volkswagen AG 84,633

Honda Motor Company 44,440

Daimler AG 30,599

Fuji Heavy Industries 24,992

Industry Average 19,069

Bayerische Motoren Werke AG 18,662

Nissan Motor 18,128

Fiat S.p.A. 8,466

Ford Motor Company 6,535

General Motors Corporation 2,045

Tata Motors, Ltd. 1,966

Industry overview: Headquarters Location

Years Sept. 2005 to May 2006

May 2006 to July 2006

July 2006 to June 2007

June 2007 to March 2009

Auto & Truck Manufacturer

S&P 500 Index

+26.44 -20.64

+8.88 -7.35

+46.37

+25.97

-95.17

-60.49

Industry overview: Stock Price Comparative Chart

+0% to +26.44%+2644 basis points

+0% to +8.88%+888 basis points

+26.44 to +5.80%-2064 basis points

+8.88% to +1.53%-735 basis points

+5.80% to +52.17%+4637 basis points

+1.53% to +27.50%+2597 basis points

+52.17% to -43.00%-9517 basis points

+27.50% to -32.99%-6049 basis points

Industry overview: Segmentation

Industry overview: General Motors Product Differenciation


Volume Carmakers Luxury Brands

Chevrolet GM Daewoo GMC Holden Opel

SaturnSaabPontiac WulingVauxhall

Buick Cadillac

Hummer

Industry overview: Ford Motors Product Differenciation

Ford Motors Company

Volume Carmakers Luxury Brands

LincolnMercury

Volvo

Ford Mazda

GENERAL MOTORS CORPORATIONDividend Max: $1.50 Dividend Min: $0No Dividend

Frequent Dividend Moderately Frequent

Dividend

Frequent Dividend

Moderately Frequent Dividend

No Dividend

FORD MOTORS COMPANYDividend Max: $12.06 Dividend Min: $0

General Motors and Ford Motors Dividend History

Net Sales and Revenue

Net Income

-20,000

-10,000

0

10,000

20,000

30,000

40,000

50,000 42,383

-3,251

38,010

-15,471

37,808

-2,542

30,778

-9,596

2008 (Dollars in million)

1st Quarter

2nd Quarter

3rd Quarter

4th QuarterNet Sales and Re-

venueNet Income

-40,000

-30,000

-20,000

-10,000

0

10,000

20,000

30,000

40,000

50,000 43,094

62

46,519

891

43,567

-38,963

46,804

-722

2007(Dollars in million)

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Net Sales and Re-venue

Net Income0%

10%

20%

30%

40%

50%

60%

28%

11%

26%

50%

25%

8%

21%

31%

2008(Amounts in percentages)

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter


Net Income0%

20%

40%

60%

80%

100%

120%

24%

0%

26%

2%

24%

101%

26%

2%

2007 (Amounts in percentages)

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

General Motors Quarterly Loading of Sales and Income

30 778

50

-38 963

101

46 804

Comparative One-Day Income Statement: Vertical Analysis

TOTAL COMPANY 2008 2007

$M GM Ford GM Ford $ % $ % $ % $ %Net Sales 414 100 406 100 500 100 479 100Cost of good sold -415 -100 -353 -87 -460 -92 -396 -83Gross Profit -1 0 53 13 -40 -8 83 17Selling general and administrative expenses

-40 -10 -60 -15 -40 -8 -59 -12

Other income (expense) net

-19 -4 -7 -2 -12 -2 -9 -2

Operating Income (loss)

-59 -14 -14 -3 -12 -2 16 3

Interest expenses -7 -2 -27 -7 -9 -2 -30 -6Interest income - GMAC -

1 0 0 0 4 1 1 0

Earnings from continuing operations

-64 -16 -40 -10 -18 -4 -14 -3

Income Tax -5 -1 0 0 -103 -21 4 1

Net Income (Loss) from affiliated companies

-17 -4 0 0 0 0 3 1

Equity income net of tax

1 0 -1 0 1 0 -1 0

Minority interests, net of tax

0,3 0 0 0 -1 0 0 0

Income from continued operations

0 0 0 0 13 3 0 0

Net earnings -86 -21 -41 -10 -108 -22 -8 -2

AUTOMOTIVE 2008 2007

$M GM Ford GM Ford $ % $ % $ % $ %Net Sales 147 732 100 129 166 100 177 594 100 154 379 100Cost of good sold -149 723 -101 -127 103 -98 -164 946 -93 -142 587 -92Gross Profit -1 991 -1 2 063 2 12 648 7 11 792 8Selling general and administrative expenses

-13 147 -9 -11 356 -9 -13 590 -8 -13 660 -9


-610 0 0 0 0 0 -2 400 -2

Operating Income -15 748 -11 -9 293 -7 -942 -1 -4 268 -3Interest expenses -884 -1 -1 938 -2 -1 042 -1 -2 252 -1Interest income - GMAC -

0 0 -755 -1 0 0 1 161 1

Income from affiliated company

0 0 163 0 0 0 389 0


-16 632 -11 -11 823 -9 -1 984 -1 -4 970 -3

Income Tax 0 0 0 0 0 0 0 0Equity income net of tax

184 0 0 0 522 0 0 0


103 0 0 0 -406 0 0 0

Loss before income tax – automotive

-16 345 -11 -11 823 -9 -1 868 -1 -4 970 -3

-100

13

-92-87

-2-14

-10 -8

0 -8-8317

-12-15

-3 3

-86 -21

-108 -22

-41 -10

-8 -2

-5 -1 0 0 -103 -21 4 1

-149 723

-1 991

-942

-16 345 -11

-164 94612 648

-15 748

-127 103

-142 587

2 08311

792

-9 293

-4 268

-11 823 -9

-1 868 -1-4 970 -

3

Comparative One-Day Income Statement: Horizontal Analysis

TOTAL COMPANY 2008 2007 V$ V%

$M GM Ford GM Ford GM Ford GM Ford $ $ $ $ Net Sales 414 406 500 479 -86 -73 -17% -15%Cost of good sold -415 -353 -460 -396 45 43 -10% -11%Gross Profit -1 53 -40 83 39 -30 -98% -36%Selling general and administrative expenses

-40 -60 -40 -59 0 -1 -1% 1%


-19 -7 -12 -9 -7 1 56% -14%

Operating Income (loss)

-59 -14 -12 16 -47 -29 394% -187%

Interest expenses -7 -27 -9 -30 2 3 -31% -11%Interest income - GMAC -

1 0 4 1 -2 -9 -68% -100%


-64 -40 -18 -14 -47 -27 264% 197%

Income Tax -5 0 -103 4 98 -4 -95% -105%Net Income (Loss) from affiliated companies

-17 0 0 3 -17 -3 0% -86%

Equity income net of tax

1 -1 1 -1 -1 0 -65% -31%


0,3 0 -1 0 1 0 -127% 0%

Income from continued operations

0 0 13 0 -13 0 -100% -78%

Net earnings -86 -41 -108 -8 22 -33 -20% 439%

-86 -73 -17% -15%

-47 -29 394% -187%

45 43 -10% -11% 39 -30 -98% -36%

AUTOMOTIVE 2008 2007 V$ V%

$M GM Ford GM Ford GM Ford GM Ford $ $ $ $ Net Sales 147 732 129 166 177 594 154 379 -29 862 -25 213 -17% -16%Cost of good sold -149 723 -127 103 -164 946 -142 587 15 223 15 484 -9% -11%Gross Profit -1 991 2 063 12 648 11 792 -14 639 -9 729 -116% -83%Selling general and administrative expenses

-13 147 -11 356 -13 590 -13 660 443 2 304 -3% -17%


-610 0 0 -2 400 -610 2 400 #DIV/0! -100%

Operating Income -15 748 -9 293 -942 -4 268 -14 806 -5 025 1572% 118%Interest expenses -884 -1 938 -1 042 -2 252 158 314 -15% -14%Interest income - GMAC -

0 -755 0 1 161 0 -1 916 0 -165%

Income from affiliated company

0 163 0 389 0 552 0 -58%


-16 632 -11 823 -1 984 -4 970 -14 648 -6 853 738% 138%

Income Tax 0 0 0 0 0 0 0 0%Equity income net of tax

184 0 522 0 -338 0 -65% 0%


103 0 -406 0 509 0 -125% 0%

Loss before income tax – automotive

-16 345 -11 823 -1 868 -4 970 -14 477 -6 853 775% 138%

98 -4 -95% -105%

Market Segments

GM F

Automotive

FinancialAutomoti

veFinancial

FORD NORTH AM

FORD CREDIT

FORD EUROPE

FORD SOUTH AM

GMAC

GMAP

GMLAAM

GME

GMNA

FORD APA

VOLVO

Market Segments

Cars 200841%

Trucks 200856%

Change 4%

GM 2008

Cars 200739%

Trucks 200761%

GM 2007

Cars 200834%

Trucks 200863%

Change 3%

F 2008

Cars 200732%

Trucks 200769%

F 2007

Risks due to production techniques

Decline in market -> increase of cost/unit. Companies cannot reduce their capacity as quickly as they lose market shares

Suppliers’ distress: Giving up financial support to them for avoiding bankruptcy

Single source of components: Bankruptcy from the sole supplier

Overcapacities (17M/year), very competitive market Company incentives = pricing pressure ->

Op. Margin decreasing

Risks due to production techniques

Decline in market -> Comparative Stock Price

Suppliers’ distress & Single source of components: Ford: 1,600 today; 750 in the future GM: One large source of components

Delphi: Bankrupt since 2005

Op. Margin: Income Statement Overcapacity of 24M in 2008, industry-wide

(est.) Pricing pressure due to Japanese and Korean

competitors

Risks from Strategy and R&D

Lack of reliability or defects in new vehicles Warranty stable , no delays, no recalls

New laws: Environmental law: California

Capacity to succeed in implanting brands in emerging countries: Ford Fiesta, Ford Edge and Ford Transit (last

two ,good)

Lower than anticipated acceptance of new vehicles.

Risks linked to Credit Companies

Credit Risk: Paymt Default & collection and servicing problems

Residual Risks: Lower-than-expected salvage value = lower transaction profitability

Strong competition: banks/other financial institutions Int’l: Credit Companies = Banks

Reserve Required Ratios Residential Mortgage: Weakness Interest Rates Change: Strong impact on the

consolidated company Banks and Portfolios

Income Statement 2yr Horizontal Analysis

Total Company 2008 2007 V$ V%

$M GM Ford GM Ford GM Ford GM Ford

$ $ $ $

Net Sales 148 979

146 277 179 984172 455

-31 005

-26 178 -17% -15%

Cost of good sold -149 311

-127 103

-165 573

-142 587 16 26215 484 -10% -11%

Gross Profit -332 19 174 -14 411 29 868 14 079-10 694 -98% -36%

Selling general and administrative expenses -14 253 -21 430 -14 412 -21 169 159 -261 -1% 1%

Other income (expense) net -6 699 -2629 -4 308 -3 068 -2 391 439 56% -14%

Operating Income (loss) -21 284 -4 885 -4 309 5 631-16 975

-10 516 394%

-187%

Interest expenses -2 345 -9 682 -3 388 -10 927 1 043 1 245 -31% -11%

Interest income - GMAC - 424 0 1 316 389 -892 -389 -68%-

100%

Earnings from continuing operations -23 205 -14 567 -6 381 -4 907-16 824 -9 660 264% 197%

Income Tax -1 766 -63 -37 162 1 294 35 396 -1 357 -95%-

105%Net Income (Loss) from affiliated companies -6 183 163 0 1 161 -6 183 -998 0% -86%

Equity income net of tax 186 -214 524 -312 -338 98 -65% -31%

Minority interests, net of tax 108 0 -406 0 514 0-

127% 0%

Income from continued operations 0 9 4 565 41 -4 565 -32-

100% -78%

Net earnings -30 860 -14 672 -38 732 -2 723 7 872-11 949 -20% 439%

Income Statement 2yr horizontal Analysis

Automotive 2008 2007

$M GM Ford GM Ford

$ % $ % $ % $ %

Net Sales 147 732 100 129 166 100 177 594 100

154 379 100

Cost of good sold -149 723 -101

-127 103 -98

-164 946 -93

-142 587 -92

Gross Profit -1 991 -1 2 063 2 12 648 7 11 792 8

Selling general and administrative expenses -13 147 -9 -11 356 -9 -13 590 -8 -13 660 -9

Other income (expense) net -610 0 0 0 0 0 -2 400 -2

Operating Income -15 748 -11 -9 293 -7 -942 -1 -4 268 -3

Interest expenses -884 -1 -1 938 -2 -1 042 -1 -2 252 -1

Interest income - GMAC - 0 0 -755 -1 0 0 1 161 1

Income from affiliated company 0 0 163 0 0 0 389 0

Earnings from continuing operations -16 632 -11 -11 823 -9 -1 984 -1 -4 970 -3

Income Tax 0 0 0 0 0 0 0 0

Equity income net of tax 184 0 0 0 522 0 0 0

Minority interests, net of tax 103 0 0 0 -406 0 0 0

Loss before income tax – automotive -16 345 -11 -11 823 -9 -1 868 -1 -4 970 -3

Income Statement 2yr vertical analysis

Total Company 2008 2007

$M GM Ford GM Ford

$ % $ % $ % $ %

Net Sales 148 979 100

146 277 100

179 984 100

172 455 100


-127 103 -87

-165 573 -92

-142 587 -83

Gross Profit -332 0 19 174 13 -14 411 -8 29 868 17Selling general and administrative expenses

-14 253 -10

-21 430 -15 -14 412 -8 -21 169 -12

Other income (expense) net -6 699 -4 -2629 -2 -4 308 -2 -3 068 -2

Operating Income (loss) -21 284 -14 -4 885 -3 -4 309 -2 5 631 3

Interest expenses -2 345 -2 -9 682 -7 -3 388 -2 -10 927 -6

Interest income - GMAC - 424 0 0 0 1 316 1 389 0Earnings from continuing operations

-23 205 -16

-14 567 -10 -6 381 -4 -4 907 -3

Income Tax -1 766 -1 -63 0 -37 162 -21 1 294 1Net Income (Loss) from affiliated companies -6 183 -4 163 0 0 0 1 161 1

Equity income net of tax 186 0 -214 0 524 0 -312 0

Minority interests, net of tax 108 0 0 0 -406 0 0 0

Income from continued operations 0 0 9 0 4 565 3 41 0

Net earnings -30 860 -21

-14 672 -10 -38 732 -22 -2 723 -2

Income Statement 2 yr vertical analysis

Automotive 2008 2007

$M GM Ford GM Ford

$ % $ % $ % $ %

Net Sales 147 732 100

129 166 100 177 594 100

154 379 100


-127 103 -98

-164 946 -93

-142 587 -92

Gross Profit -1 991 -1 2 063 2 12 648 7 11 792 8

Selling general and administrative expenses

-13 147 -9

-11 356 -9 -13 590 -8 -13 660 -9

Other income (expense) net -610 0 0 0 0 -2 400 -2

Operating Income -15 748 -11 -9 293 -7 -942 -1 -4 268 -3

Interest expenses -884 -1 -1 938 -2 -1 042 -1 -2 252 -1

Interest income - GMAC - 0 0 -755 -1 0 0 1 161 1

Income from affiliated company 0 0 163 0 0 0 389 0Earnings from continuing operations

-16 632 -11

-11 823 -9 -1 984 -1 -4 970 -3

Income Tax 0 0 0 0 0 0 0 0

Equity income net of tax 184 0 0 0 522 0 0 0

Minority interests, net of tax 103 0 0 0 -406 0 0 0Loss before income tax – automotive

-16 345 -11

-11 823 -9 -1 868 -1 -4 970 -3

Mix Analysis – General Motors

% $Other Financing 1% 1% -562% -27% -48% -1143GM AutoGMNA 58% 62% -16% -3% -23% -26261GME 23% 21% -8% -1% -8% -3090GMLAAM 14% 10% 6% 7% 7% 1366GAAP 12% 11% -7% 3% -12% -2489Corporate -7% -6% 52% 32% -5% 612Total 100% 100% -20% -3% -17% -31005

Mix Analysis GM

2008 2007 2008 2007Change in Sales

Operating Percentage to Sales

Percentage of Sales

Mix Analysis GM

Percentage of SalesOperating Percentage to

SalesChange in Sales

Change in Operating Percentage sales

Total

2008 2007 2008 2007 % $ % $ $

Other Financing 1% 1% -562% -27% -48% -1143 -535% -5218 -6361

GM Auto

GMNA 58% 62% -16% -3% -23% -26261 -13% 15648 -10613

GME 23% 21% -8% -1% -8% -3090 -7% 755 -2335

GMLAAM 14% 10% 6% 7% 7% 1366 -1% -1409 -43

GAAP 12% 11% -7% 3% -12% -2489 -9% 739 -1750

Corporate -7% -6% 52% 32% -5% 612 20% -2645 -2033

Total 100% 100% -20% -3% -17% -31005 -16% 7870 -23135

Mix Analysis – Ford Consolidated

Total% $ % $ $

Bank 11% 10% -2% 1% -6% -8 -2% -3590 -3774Non-bankFord NA 36% 41% -7% -2% -24% 408 -5% -6737 -6109Ford SA 6% 4% 1% 1% 14% 7 0% 236 58Ford Europe 27% 21% 1% 0% 7% 12 0% 339 226Volvo 10% 10% -1% -2% -17% 49 0% 615 1028Ford APA 4% 4% 0% 0% -8% 0 0% -292 -292Mazda 0% 0% 0% 0% 0% 0 0% -259 -287Other 0% 0% -1% -1% 44% -1 -1% -853 -694Jaguar LR&AM 5% 9% 0% 0% -54% -41 0% -686 -814Total 100% 100% -10% -2% -15% 569 -8% -7637 -10658

Change in Sales

Change in Operating Percentage sales

2008 2007 2008 2007

Percentage of Sales

Operating Percentage

to Sales

($M) Percentage of Sales & Revenues

Operating Percentage to Sales & Revenues

Change in Sales &

Revenues

Change in Operating Percentage

Sales & Revenue Total

2008 2007 2008 2007 % $ % $ $

Bank 11% 10% -2% 1% -6% -8 -2% -3590 -3 774

Non-bank

Ford NA36% 41% -7% -2% -24% 408 -5% -6737

-6 109

Ford SA 6% 4% 1% 1% 14% 7 0% 236 58

Ford Europe 27% 21% 1% 0% 7% 12 0% 339 226

Volvo 10% 10% -1% -2% -17% 49 0% 615 1 028

Ford APA 4% 4% 0% 0% -8% 0 0% -292 -292

Mazda 0% 0% 0% 0% 0% 0 0% -259 -287

Other 0% 0% -1% -1% 44% -1 -1% -853 -694

Jaguar LR&AM 5% 9% 0% 0% -54% -41 0% -686 -814

Total 100% 100% -10% -2% -15% 569 -8% -7637-10 658

Net Sales and Revenue

Net Income

-20,000

-10,000

0

10,000

20,000

30,000

40,000

50,000 42,383

-3,251

38,010

-15,471

37,808

-2,542

30,778

-9,596


1st Quarter

2nd Quarter

3rd Quarter

4th QuarterNet Sales and Re-

venueNet Income

-40,000

-30,000

-20,000

-10,000

0

10,000

20,000

30,000

40,000

50,000 43,094

62

46,519

891

43,567

-38,963

46,804

-722

2007(Dollars in million)

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter


Net Income0%

10%

20%

30%

40%

50%

60%

28%

11%

26%

50%

25%

8%

21%

31%


1st Quarter

2nd Quarter

3rd Quarter

4th Quarter


Net Income0%

20%

40%

60%

80%

100%

120%

24%

0%

26%

2%

24%

101%

26%

2%


1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

General Motors Quarterly Loading of Sales and Income

30 778

50

-38 963

101

46 804


Net Income

-10,000

0

10,000

20,000

30,000

40,000

50,000 43,528

100

41,512

-8,667

32,045

-129

29,192

-5,976


1st Quarter

2nd Quarter

3rd Quarter

4th Quarter


Net Income0%

10%

20%

30%

40%

50%

60%

30%

1%

28%

59%

22%

1%

20%

41%


1st Quarter

2nd Quarter

3rd Quarter

4th Quarter


Net Income-5000

0

5000

10000

15000

20000

25000

30000

35000

40000

4500043019

-282

44242

750

41078

-380

44116

-2811


1st Quarter

2nd Quarter

3rd Quarter

4th Quarter


Net Income0%

20%

40%

60%

80%

100%

120%

25%

10%

26% 28%24%14%

26%

103%


1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Ford Motors Quarterly Loading of Sales and Income

29 192

44 116

59103

41512

Global Balance Sheet - Assets

GM FordDecember 31, 2008 2007 2008 2007

(Dollars in millions)

Assets Current assets 45 731 77 124 175 379 214 658

Non-current assets 45 316 71 759 43 700 64 769

Total assets 91 047148 883

219 079

279 427

Liabilities

Current liabilities 75 733 75 323 68 926 76 047Non-current liabilities 100 654 109 040 165 518 196 168

Total Liabilities 176 387 184 363 234 444 272 215

Minority interests 814 1 614 1 195 1 421

Owner Equity -86 154 -37 094 -17 311 5 628

Total Liabilities&Owner's Equity 91 047

148 883

218 328

279 264

$91b $219b

$176b $234b

-40% -22%

Global Balance Sheet - Assets GM Ford VERTICAL V% HORIZONTAL V$

HORIZONTAL V%

December 31,2008 2007 2008 2007

2008 2007GM Ford GM Ford

(Dollars in millions) GM Ford GM FordCurrent Assets

Cash and cash equivalents14

05324 817 22 049 35 283 15% 10% 17% 13%

-10 764

-13 234

-43% -38%

Loaned securities 0 0 0 10 267 0% 0% 0% 4% 0-10 267

0% -100%

Marketable securities 141 2 354 17 903 5 248 0% 8% 2% 2% -2 213 12 655 -94% 241%Total cash and marketable securities

14 194

27 171 39 952 50 798 16% 18% 18% 18%-12 977

-10 846

-137%

104%

Finance Receivables 7 711 9 659 99 657 117 916 8% 45% 6% 42% -1 948-18 259

-20% -15%

Inventories13

04214 939 8 618 10 121 14% 4% 10% 4% -1 897 -1 503 -13% -15%

Equipment on operating leases, net 5 584 11 995 23 120 30 309 6% 11% 8% 11% -6 411 -7 189 -53% -24%

Equity in net assets of affiliated companies 491 7 079 0 0 1% 0% 5% 0% -6 588 0 -93% 0%

Other current assets and deferred income taxes 4 709 6 281 4 032 5 514 5% 2% 4% 2% -1 572 -1 482 -25% -27%

Total current assets45

73177 124

175 379

214 658 50% 80% 52% 77%-31 393

-39 279

-342%

23%

Non-Current AssetsEquity in net assets of nonconsolidated affiliates 1 655 1 919 1 592 2 853 2% 1% 1% 1% -264 -1 261 -14% -44%

Property, net39

65643 017 28 352 35 979 44% 13% 29% 13% -3 361 -7 627 -8% -21%

Goodwill and intangible assets, net 265 1 066 1 593 2 069 0% 1% 1% 1% -801 -476 -75% -23%

Deferred income taxes 98 2 116 3 108 3 500 0% 1% 1% 1% -2 018 -392 -95% -11%

Prepaid pension 109 20 175 0 0 0% 0% 14% 0%-20 066

0 -99% 0%

Assets of discontinued/held for sale operations 0 0 198 7 537 0% 0% 0% 3% 0 -7 339 0% -97%

Other assets 3 533 3 466 8 857 12 831 4% 4% 2% 5% 67 -3 974 2% -31%

Total non-current assets45

31671 759 43 700 64 769 50% 20% 48% 23%

-26 443

-21 069

-37% -33%

Total assets91

047148 883

219 079

279 427

100% 100% 100% 100%-57 836

-60 348

-4 0

$14b $40b

$13b$8b $100b

$23b$0.5

b

$12b

LiquidityCurrent = CR = CA / CLQuick = Q = CA-Inv / CL

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 latest Qtr

Current Ra-tio

0.64000000000000

1

0.58 0.66000000000000

1

2.9 3.45 3.27 3.21 0.95000000000000

1

0.86000000000000

1

0.56 0.56

Quick Ratio 0.3 0.27 0.39 1.48 2.29 2.2 1.92 0.47 0.52 0.29 0.29

0.250.751.251.752.252.753.25

GM’s Cr < .7,GM is illiquid since

2006. So ,there is risk of

bankruptcy

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 latest Qtr

Current Ratio

1.02 0.81 0.76000000000000

1

1.01 1.1 1.06 1.18 0.75000000000000

1

2.32 2.22 2.22

Quick Ratio

0.70000000000000

1

0.5 0.45 0.70000000000000

1

0.65000000000000

1

0.74000000000000

1

0.83000000000000

1

0.55 2.06 1.78 1.78

0.25

1.25

2.25

3.25

Ford’s Cr > 2.00,Ford is in excess of liquidity

since 2007; it can either invest in Fixed Assets, R&D, Buy back

shares, pay dividends, retire bonds, buy a Co., put money into bond

sinking fund, develop the banking activities, or advertise more

CR = 0.56Q = 0.38

IndustryCR = 0,83 Q= 1,05

CR = 1.23Q = 1.17

2008CR = 0.56Q = 0.38

CR = 1.23Q = 1.17 ERROR!!!

10 Year Efficiency1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Days Sales Outstanding

11.1 10.8 11.6 20.6 35.7 39.4 34.9 20.9 8.3 9.5

Days Inventory

32.9 27 26.6 23.8 25.1 26.5 28.4 31.3 31.7 33.9

Payables Period

59.7 59.2 65.9 63.9 63.5 61.9 62.7 64.3 63.2 62.7

Cash Conversion Cycle

-15.8 -21.3 -27.7 -19.4 -2.7 4 0.60000000000000

1

-12.1 -23.3 -19.3

-15

35

85

135

185

235

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Days Sales Outstanding

9.7 13.3 9.5 4.8 5.3 9.2 14.9 18.6 123.6 260.3

Days Inventory

18.5 20.2 19.4 19.2 22.7 26.8 26.5 26.7 27.8 26.9

Payables Period

42.7 42.7 43.5 44.2 42 49.4 55.8 56.7 56.8 51.1

Cash Conversion Cycle

-14.4 -9.3 -14.6 -20.2 -14 -13.4 -14.4 -11.4 94.6 236.1

-15

35

85

135

185

235

124 260

95 236

DSO= A/R x 360 / SalesICD= Inv x 360 / CGSAPD= A/P x 360 / CGS

CCC= DSO + ICD - APD

Error?!

GM F2008 2007 2008 2007

Liquidity CURRENT CA/CL 55,8 86,5 1.22 1.03QUICK (CA-INV)/CL 38,1 65,0 1.16 0.97

Profitability ROA NI/TA -34% -26% -7% -1%ROE (NI-PS Div)/CE 36% 104% 85% -48%ROS NI/SALES -21% -22% -10% -2%

Cash Management DSO REC/(SALES7360) 19 19 15 17ICD INV/(CGS/360) 31 32 24 26APD PAY/(CGS/360) 54 64 42 53CCC DSO+ICD-APD -4 -12 -2 -10

Market Value DPS DIV/WSO $0 $1 $0 $0EPS (NI-PSD)/WSO -$53,30 -$68,43 -$6,45 -$1,38DIV PAYOUT DPS/EPS 0% -1% 0% 0%WSO 579 566 2273 1979MKT CAP O/S*Mkt price $1 953 546 339 $1 811 389 597 $0 $0

Turnover ASSET TURN SALES/TA 1,6 1,2 0,7 0,6INV TURN CGS/INV 11,4 11,1 14,7 14,1REC TURN SALES/REC 19,3 18,6 24,1 21,0

Leverage DEBT/ASSETS TL/TA 194% 124% 107% 97%DEBT/EQUITY TL/TOE -204,7% -497,0% -1354,3% 4836,8%TIE Op. Inc./Int.Exp. -9,1 -1,4 16,3 15,3

Productivity SALES/EMPLOYEE $613 082 $676 632 $686 746 $701 037NI/EMPLOYEE -$126 996 -$145 609 -$68 883 -$11 069

Comparative Ratios

Bond AnalysisBond Ratings:•The higher the risk, the higher the return demanded• Nationally Recognized Statistical Rating Organizations

• Moody’s• S&P

Short Term US Treasury Bills

AAA bonds

A bonds

BB bonds

CCC bonds

Risks and Returns on Different Classes of Securities

Risk of Investors

Rate of Return

Bond Analysis - Ford

Even THEY would not buy themselves

- Negative trend- Speculative Bonds to Substandard

Ones- (Horrible to Very Bad…)

Consequence:- Difficulty to generate capital to the

Company- => Bankruptcy

Bond Analysis - GM

GM GMAC ResCap

NRSRO Corporat

e Secured

Senior Unsecure

d Outlook Senior Debt Outlook Senior Debt Outlook

DBRSCC

CCC (low) CC Negative RD

Watch - Positive D

Watch-Positive

FitchC CCC C Negative C Developing C Stable

Moody’s Ca B3 C Negative CCC Negative CC Negative

S&PCC CCC C Negative CCC

Review-Negative C

Review - Negative

GM Ford VERTICAL V% HORIZONTAL V$

HORIZONTAL V%

December 31,2008 2007 2008 2007

2008 2007GM Ford GM Ford(Dollars in millions) GM Ford GM Ford

Current LiabilitiesAccounts payable (principally trade) 22 259 29 469 14 772 20 832 24% 7% 20% 7% -7 210 -6 060-24% -29%Short-term borrowings and current portion of long-term debt 16 946 10 955 21 759 27 543 19% 10% 7% 10% 5 991 -5 784 55% -21%Accrued expenses 35 921 34 024 32 395 27 672 39% 15% 23% 10% 1 897 4 723 6% 17%Other liabilities and deferred income taxes 607 875 0 0 1% 0% 1% 0% -268 0-31% 0%Total current liabilities 75 733 75 323 68 926 76 047 83% 32% 51% 27% 410 -7 121 1% -9%

Non-Current LiabilitiesLong-term debt 29 594 33 384132 437 141 244 33% 61% 22% 51% -3 790 -8 807-11% -6%Postretirement benefits other than pensions 28 919 47 375 5 358 23 760 32% 2% 32% 9% -18 456

-18 402-39% -77%

Pensions 25 178 11 381 11 435 6 678 28% 5% 8% 2% 13 797 4 757121

% 71%Other liabilities and deferred income taxes 16 963 16 900 16 233 19 662 19% 7% 11% 7% 63 -3 429 0% -17%Liabilities of discontinued/held-for-sale operations 0 0 55 4 824 0% 0% 0% 2% 0 -4 769 0% -99%

Total non-current liabilities 100 654 109 040165 518 196 168 111% 76% 73% 70% -8 386-30 650 -8% -16%

Total Liabilities 176 387184 363234 444272 215 194% 107%124% 97% -7 976-37 771 -4% -14%

Minority interests 814 1 614 1 195 1 421 1% 1% 1% 1% -800 -226-50% -16%Stockholders’ Deficit / Equity

Common Stock 1 017 943 24 22 1% 0% 1% 0% 74 2 8% 9%Capital surplus (principally additional paid-in capital) 15 755 15 319 9 076 7 834 17% 4% 10% 3% 436 1 242 3% 16%

Retained earnings (deficit) -70 610 -39 392 -16 145 -1 485 -78% -7% -26% -1% -31 218-14 660 79% 987%

Accumulated other comprehensive income/loss -32 316 -13 964 -10 085 -558 -35% -5% -9% 0% -18 352 -9 527

131%

1707%

Treasury Stock 0 0 -181 -185 0% 0% 0% 0% 0 4 0% -2%

Owner Equity -86 154 -37 094 -17 311 5 628 -95% -8% -25% 2% -49 060-22 939

132%

-408%

Total Liabilities&Owner's Equity 91 047

148 883

218 328 279264 100% 100%

100%

100%-57 836

-60 936 78%

-437%

Global Balance Sheet - Liabilities

$14b

-$8b-4%-

$31b-16%

-$18b

Global Balance Sheet - Assets GM Ford VERTICAL V% HORIZONTAL V$

HORIZONTAL V%

December 31,2008 2007 2008 2007

2008 2007GM Ford GM Ford

(Dollars in millions) GM Ford GM FordCurrent Assets

Cash and cash equivalents14

05324 817 22 049 35 283 15% 10% 17% 13%

-10 764

-13 234

-43% -38%

Loaned securities 0 0 0 10 267 0% 0% 0% 4% 0-10 267

0% -100%

Marketable securities 141 2 354 17 903 5 248 0% 8% 2% 2% -2 213 12 655 -94% 241%Total cash and marketable securities

14 194

27 171 39 952 50 798 16% 18% 18% 18%-12 977

-10 846

-137%

104%

Finance Receivables 7 711 9 659 99 657 117 916 8% 45% 6% 42% -1 948-18 259

-20% -15%

Inventories13

04214 939 8 618 10 121 14% 4% 10% 4% -1 897 -1 503 -13% -15%

Equipment on operating leases, net 5 584 11 995 23 120 30 309 6% 11% 8% 11% -6 411 -7 189 -53% -24%

Equity in net assets of affiliated companies 491 7 079 0 0 1% 0% 5% 0% -6 588 0 -93% 0%

Other current assets and deferred income taxes 4 709 6 281 4 032 5 514 5% 2% 4% 2% -1 572 -1 482 -25% -27%

Total current assets45

73177 124

175 379

214 658 50% 80% 52% 77%-31 393

-39 279

-342%

23%

Non-Current AssetsEquity in net assets of nonconsolidated affiliates 1 655 1 919 1 592 2 853 2% 1% 1% 1% -264 -1 261 -14% -44%

Property, net39

65643 017 28 352 35 979 44% 13% 29% 13% -3 361 -7 627 -8% -21%

Goodwill and intangible assets, net 265 1 066 1 593 2 069 0% 1% 1% 1% -801 -476 -75% -23%

Deferred income taxes 98 2 116 3 108 3 500 0% 1% 1% 1% -2 018 -392 -95% -11%

Prepaid pension 109 20 175 0 0 0% 0% 14% 0%-20 066

0 -99% 0%

Assets of discontinued/held for sale operations 0 0 198 7 537 0% 0% 0% 3% 0 -7 339 0% -97%

Other assets 3 533 3 466 8 857 12 831 4% 4% 2% 5% 67 -3 974 2% -31%

Total non-current assets45

31671 759 43 700 64 769 50% 20% 48% 23%

-26 443

-21 069

-37% -33%

Total assets91

047148 883

219 079

279 427

100% 100% 100% 100%-57 836

-60 348

-4 0

-$20b 0

-$3b -$8b

50%

50%

52%48%

Current assets Non-current assets

2008

2007

80%

20%

77%

23%

Current assets Non-current assets

20082007

Structure of the Global Balance Sheet

29%

38%

0%

33%34%

49%

1%

17%

Current liabilities Non-current liabilitiesMinority interestsOwner Equity

20082007

Assets

27%

65%

0%7%

27%

70%

1% 2%

Current liabilities Non-current liabilitiesMinority interestsOwner Equity

20082007

Liabilities, Minority interests & Owners Equity

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 latest Qtr

Financial Leve-rage

13.31 10.04 16.44 54.41 17.75 17.3 32.61 0 0 0 0

Debt/Equity 6.28 4.72 8.32 29.64 10.75 10.83 19.58 0 0 0 0

5

35

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 latest Qtr

Financial Leve-rage

10.03 15.28 35.52 52.81 27.12 18.24 20.8 0 49.62 0 0

Debt/Equity 5.61 9.11 22.05 29.97 15.55 10.78 11.91 0 29.94 0 0

52545

Leverage

2008

Debt to Assets194%

Debt to Equity-204,7%

Interest Coverage

-9,1

2008

Debt to Assets107%

Debt to Equity-1354,3%

Interest Coverage

16,3

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 TTM

Cash from Operations 27030 19750 9166 17109 7600 13061 -16856 -11759 7731 -12065 NaN

Cash from Investing -34994 -33773 -23171 -41377 -55492 -31768 8565 19695 -1760 -1764 NaN

Cash from Financing 8610 14120 22372 26667 58922 21475 3480 -3767 -5593 3843 NaN

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 TTM

Cash from Operations 29811 33764 22764 18633 20195 24514 21674 9609 17074 -179 NaN

Cash from Investing -40282 -36151 -17169 -3620 -6325 -14851 7457 -24864 -6483 -3143 NaN

Cash from Financing 12213 3771 -2976 -10333 -5132 -9865 -20651 15273 -5242 -9104 NaN-1797 457

-16 856 -11 759

-3 767 -5 5938 565 19 695

15 273

10 year Cash Flow

2006: $.50 Dividend per share

2005: Sales of Electro-Motive Division (EMD) for $201M

2006: Sale of 51% of GMAC for $7.4b

2005: Delphi restructuring activities2006: $3.5b Net loss from continuing operations

2006:

Ford sold Hertz in 2005 for $200M

ProfitabilityROS= NI / SalesROA = NI / TAROE= NI / TOE

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Return on Assets 0.0281 0.0123 -0.0195 -0.0035 0.0016 0.0115 0.0072000000000000

1

-0.046 -0.0098000000000000

2

-0.059

Return on Equity 0.2835 0.1496 -0.4143 -0.1488 0.0574 0.2518 0.1396 0 0 0

-50.00%

-40.00%

-30.00%

-20.00%

-10.00%

0.00%

10.00%

20.00%

30.00%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Return on Assets 0.0223 0.015 0.0016 0.0049000000000000

1

0.0093000000000000

2

0.0060000000000000

1

-0.0221 -0.0060000000000000

1

-0.2312 -0.2572

Return on Equity 0.332400000000001

0.1709 0.0201 0.1274 0.2383 0.1059 -0.4994 -0.4321 0 0

-50.00%

-40.00%

-30.00%

-20.00%

-10.00%

0.00%

10.00%

20.00%

30.00%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 TTM 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 TTM

Operating Margin

0.095 0.091 0.057 0.052 0.067 0.068 -0.00600000000000

001

-0.037 -0.024 -0.143 -0.143

EBT Margin

0.051 0.039 0.00900000000000

001

0.011 0.016 0.00600000000000

001

-0.08800000000000

01

-0.024 -0.035 -0.197 -0.197

Gross Margin

0.282 0.211 0.188 0.179 0.18 0.173 0.112 0.206 0.082 -0.011 -0.011

-12.50%

-7.50%

-2.50%

2.50%

7.50%

12.50%

17.50%

22.50%

27.50%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 TTM 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 TTM

Operating Margin

0.114 0.104 0.021 0.06 0.04900000000000

01

0.062 0.04 -0.051 0.033 -0.094 -0.094

EBT Margin

0.068 0.048 -0.047 0.00600000000000

001

0.00800000000000

002

0.028 0.011 -0.094 -0.022 -0.09800000000000

02

-0.09800000000000

02

Gross Margin

0.268 0.258 0.205 0.234 0.209 0.209 0.182 0.069 0.173 0.131 0.131

-12.50%

-7.50%

-2.50%

2.50%

7.50%

12.50%

17.50%

22.50%

27.50%

10 year Margin (% of Sales)

10 year Free Cash Flow1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Cash from Operations

27030 19750 9166 17109 7600 13061 -16856 -11759 7731 -12065

Cap Ex

-30549 -31605 -26671 -24067 -19091 -22077 -23675 -7933 0 -7530

Free Cash Flow

-3519 -11855 -17505 -6958 -11491 -9016 -40531 -19692 0 -19595

-45000

-35000

-25000

-15000

-5000

5000

15000

25000

35000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Cash from Operations

29811 33764 22764 18633 20195 24514 21674 9609 17074 -179

Cap Ex

-8535 -8348 -7008 -7278 -7749 -6745 -7517 -6848 -6022 -6696

Free Cash Flow

21276 25416 15756 11355 12446 17769 14157 2761 11052 -6875

-15000

-5000

5000

15000

25000

35000

-4 531

0

-6 875

25 416

Capital Expenditures Analysis - Ford

Capital Expenditures Analysis

Pb Assets/ ($M) Assets % P&E additions % P&E addition 2008 P&E addition 2007

Segments 2008 2007 2008 2007 % of Assets % to Dep % of Assets % to DepBank (Ford Credit) 67% 57% 1% 0% 0% 0% 0% 0%

Other Financing Services 5% 4% 0% 1% 0% 86% 0% 153%Elims -4% 0% 0% 0 % 0% 0% 0% 0%

Non-bank (Automotive) 33% 40% 99% 99% 3% 60% 2% 88%Other -1% -1% 0% 0% 0% 0% 0% 0%

Total 100% 100% 100% 100% 3% 0% 2% 46%

Capital Expenditures Ford Automotive

Pb Assets/ ($M) P&E additions % P&E addition 2008 P&E addition 2007Segments 2008 2007 % of Assets % to Dep % of Assets % to Dep

Ford NA 2% 1% 2% 45% 1% 76%

Ford SA 0% 0% 0% 112% 0% 156%

Ford Europe 1% 0% 1% 101% 0% 96%

Volvo 0% 0% 0% 74% 0% 98%

Ford APA 0% 0% 0% 126% 0% 99%

Mazda 0% 0% 0% 0% 0% 0%

Jaguar LR&AM 0% 0% 0% 0% 0% 135%

Total Automotive 3% 2% 3% 58% 2% 88%

Capital Expenditures Analysis - GM

Segments % of Assets Dep % to Dep % of Assets Dep % to DepBank (GMAC) 5072 6% 12110 8% 0 0% 0 0% 0% 8100 0% 0% 0 0%Other Financing -565 -1% 4879 3% 0 0% 4 0% 0% 157 0% 0% 0 0%Non-bank 0%GMNA 68037 75% 95433 64% 4064 54% 4988 66% 6% -989 -411% 5% 1594 313%GME 19265 21% 25201 17% 1563 21% 1311 17% 8% 1175 133% 5% 90 1457%GMLAAM 7039 8% 7733 5% 370 5% 220 3% 5% 35 1057% 3% 5 4400%GAAP 10940 12% 15567 10% 818 11% 899 12% 7% 67 1221% 6% 14 6421%GMA Eliminations -12117 -13% -11313 -8% 178 2% 41 1% -1% 0 0% 0% 0 0%Corporate -6624 -7% -727 0% 537 7% 79 1% -8% 765 70% -11% 38021 0%Total 91047 100% 148883 100% 7530 100% 7542 100% 8% 9310 124% 5% 39724 19%

2008 2007 2008 2007

Capital Expenditures GM

Assets % P&E additions % P&E addition 2008 P&E addition 2007

Segments 2008 2007 2008 2007 % of Assets % to Dep % of Assets % to Dep

Bank (GMAC) 6% 8% 0% 0% 0%

Other Financing -1% 3% 0% 0% 0%

Non-bank

GMNA 75% 64% 54% 66% 6% -411% 5% 313%

GME 21% 17% 21% 17% 8% 133% 5% 1457%

GMLAAM 8% 5% 5% 3% 5% 1057% 3% 4400%

GAAP 12% 10% 11% 12% 7% 1221% 6% 6421%

GMA Eliminations -13% -8% 2% 1% -1% 0% 0% 0%

Corporate -7% 0% 7% 1% -8% 70% -11% 0%

Total 100% 100% 100% 100% 8% 124% 5% 19%

Banking

GM General Motors Acceptance Corporation ResCap

Ford Ford Credit

GMAC vs. GM

GMAC GMA Total-$50,000

$0

$50,000

$100,000

$150,000

$200,000

Comparative Income &Sales 2008

EBT Financing Revenue

GMAC GMA Total GMAC GMA Total-50,000

0

50,000

100,000

150,000

200,000

Comparative Income & Sales 2007


GMAC GMA Total$0

$50,000$100,000$150,000$200,000$250,000

Comparative Total Li-abilities 2 years

TL 2008 TL 2007

GMAC GMA Total$0

$50,000$100,000$150,000$200,000$250,000$300,000

Comparative Total Assets 2 years

2008 2007

Ford Credit vs. Segments

-$50,000$50,000

$150,000


EBT SALES

Ford CreditFord Automotive Total-50000

050000

100000150000200000


EBT SALES

Ford

Cre

dit

Ford

Aut

omot

ive

Ford

Tot

al A

sset

s$0

$150,000

$300,000

Comparative Total Assets 2 years

2008 2007

FC FA FT$0

$50,000$100,000$150,000$200,000$250,000$300,000

Comparative Total Li-abilities 2 years

2008 2007

GMAC Income Statement – Vertical Analysis($M) FOR THE YEARS ENDED

DECEMBER 31,2008 % OF REVENUE 2007

% OF REVENUE

RevenueConsumer 6 737 37% 9 469 45%Commercial 2 368 13% 2 947 14%Loans held-for-sale 1 092 6% 1 557 7%Operating leases 8 198 45% 7 214 34%Total Financing Revenue 18 395 100% 21 187 100%Interest expense 11 870 65% 14 776 70%Depreciation expense on operating lease assets

5 483 30% 4 915 23%

Impairment of investment in operating leases

1 234 7% 0 0%

Net financing revenue/(loss) 192 -1% 1 496 7%Other Revenue

Servicing fees 1 782 10% 2 193 10%Amortization and impairment of servicing rights

0 0% 0 0%

Servicing asset valuation and hedge activities, net

284 -2% 544 -3%

Insurance premiums and service revenue earned

4 329 24% 4 378 21%

Gain/(loss) on mortgage and automotive loans, net

1 560 -8% 508 2%

Gain on extinguishment of debt 12 628 69% 563 3%Investment (loss) income 446 -2% 473 2%Gains on sale of equity-method investments, net

0 0% 0 0%

Other income, net of losses 601 3% 2 732 13%Total other revenue 17 050 93% 10 303 49%Total Net Revenue 16 858 92% 11 799 56%Provision for credit losses 3 683 20% 3 096 15%

Noninterest expensesCompensation and benefits expense 2 229 12% 2 453 12%Insurance losses and loss adjustment expenses

2 522 14% 2 451 12%

Other operating expenses 6 505 35% 5 286 25%Impairment of goodwill and other intangible assets

58 0% 455 2%

Total noninterest expense 11 314 62% 10 645 50%EBT 1 861 10% 1 942 -9%Income tax expense/(benefit) 7 0% 390 2%Net income/(loss) 1 868 10% 2 332 -11%

GMAC Income Statement – Horizontal Analysis

($M) FOR THE YEARS ENDED DECEMBER 31, 2008 2007 % V%

RevenueConsumer 6 737 9 469 45% -29%Commercial 2 368 2 947 14% -20%Loans held-for-sale 1 092 1 557 7% -30%Operating leases 8 198 7 214 34% 14%Total Financing Revenue 18 395 21 187 100% -13%Interest expense 11 870 14 776 70% -20%Depreciation expense on operating lease assets 5 483 4 915 23% 12%Impairment of investment in operating leases 1 234 0 0% N/ANet financing revenue/(loss) 192 1 496 7% -113%

Other RevenueServicing fees 1 782 2 193 10% -19%Amortization and impairment of servicing rights 0 0 0% 0%Servicing asset valuation and hedge activities, net 284 544 -3% -48%Insurance premiums and service revenue earned 4 329 4 378 21% -1%Gain/(loss) on mortgage and automotive loans, net 1 560 508 2% -407%Gain on extinguishment of debt 12 628 563 3% 2143%Investment (loss) income 446 473 2% -194%Gains on sale of equity-method investments, net 0 0 0% 0%Other income, net of losses 601 2 732 13% -78%Total other revenue 17 050 10 303 49% 65%Total Net Revenue 16 858 11 799 56% 43%Provision for credit losses 3 683 3 096 15% 19%

Noninterest expensesCompensation and benefits expense 2 229 2 453 12% -9%Insurance losses and loss adjustment expenses 2 522 2 451 12% 3%Other operating expenses 6 505 5 286 25% 23%

Impairment of goodwill and other intangible assets 58 455 2% -87%

Total noninterest expense 11 314 10 645 50% 6%EBT 1 861 1 942 -9% -196%Income tax expense/(benefit) 7 390 2% -102%Net income/(loss) 1 868 2 332 -11% -180%

GMAC Income Statement Analysis

GMAC GMA Total

-50,000

0

50,000

100,000

150,000

200,000



GMAC GMA Total

-50,000

0

50,000

100,000

150,000

200,000

Comparative Income &Sales 2008


FOR THE YEARS ENDED DECEMBER 31, 2008 % 2007 %

Financing RevenueOperating leases 6 519 40% 6 343 38%Retail 3 270 20% 3 475 21%

Interest supplements and other support costs earned from affiliated companies

4 774 29% 4 592 27%

Wholesale 1 721 10% 2 132 13%Other 133 1% 174 1%Total Financing Revenue 16 417 100% 16 716 100%Depreciation on vehicles subject to operating leases -9 019 -55% -6 188 -37%

Interest expense -7 634 -47% -8 630 -52%

Net Financing margin -236 -1% 1 898 11%

Other revenueInvestment and other income related to sales of receivables

199 1% 391 2%

Insurance premiums earned, net 140 1% 169 1%

Other income, net 758 5% 1 362 8%

Total financing margin and other revenue 861 5% 3 820 23%

ExpensesOperating expenses 1 548 9% 1 929 12%Provision for credit losses 1 769 11% 588 4%Insurance expenses 103 1% 88 1%

Total expenses 3 420 21% 2 605 16%

EBT -2 559 -16% 1 215 7%

Provision for / (Benefit form) income taxes -1 014 -6% 446 3%

Income from continuing operations -1 545 -9% 769 5%

Gain on disposal of discontinued operations 9 0% 6 0%

Net income/(loss) -1 536 -9% 775 5%

Ford Motors Credit Income Statement – Vertical Analysis

Ford Motors Credit Income Statement – Horizontal Analysis

FOR THE YEARS ENDED DECEMBER 31, 2008 2007 V V%

Financing RevenueOperating leases 6 519 6 343 176 3%Retail 3 270 3 475 205 -6%Interest supplements and other support costs earned from affiliated companies

4 774 4 592 182 4%

Wholesale 1 721 2 132 411 -19%Other 133 174 41 -24%Total Financing Revenue 16 417 16 716 299 -2%Depreciation on vehicles subject to operating leases -9 019 -6 188 2 831 46%Interest expense -7 634 -8 630 996 -12%Net Financing margin -236 1 898 2 134 -112%

Other revenueInvestment and other income related to sales of receivables

199 391 192 -49%

Insurance premiums earned, net 140 169 29 -17%Other income, net 758 1 362 604 -44%Total financing margin and other revenue 861 3 820 2 959 -77%

ExpensesOperating expenses 1 548 1 929 381 -20%Provision for credit losses 1 769 588 1 181 201%Insurance expenses 103 88 15 17%Total expenses 3 420 2 605 815 31%EBT -2 559 1 215 3 774 -311%Provision for / (Benefit form) income taxes -1 014 446 1 460 -327%Income from continuing operations -1 545 769 2 314 -301%Gain on disposal of discontinued operations 9 6 3 50%Net income/(loss) -1 536 775 2 311 -298%

Ford Credit Ford Automotive Total-$50,000

$0

$50,000

$100,000

$150,000

$200,000


EBT SALES

Ford Credit Ford Automotive Total-50000

0

50000

100000

150000

200000


EBT SALES

Ford Motors Credit Income Statement Analysis

Comparative Balance Sheet 2 years

Assets($M) December 31, 2008 % 2007 % V V%Cash and cash equivalents 15 473 10% 14 137 8% 1 336 9%Marketable securities 8 606 6% 3 155 2% 5 451 173%Finance receivables, net 93 331 62% 111 468 66% 18 137 -16%Net investment in operating leases 22 506 15% 29 663 18% 7 157 -24%Retained interests in securitized assets 92 0% 653 0% 561 -86%Notes and accounts receivable from affiliated companies 1 047 1% 906 1% 141 16%Derivative financial instruments 3 791 3% 2 811 2% 980 35%Assets of held-for-sale operations 214 0% 0 0% 214 N/A

Other assets 5 067 3% 6 230 4% 1 163 -19%

Total Assets 150 127 100% 169 023 100% 18 896 -11%

Liabilities & Owner’s Equity

($M, as of December 31,) 2008 % 2007 % V V%

Liabilities

Accounts PayableCustomer deposits, dealer reserves and other 1 781 1% 1 837 1% 56 -3%

Affiliated companies 1 015 1% 2 308 1% 1 293 -56%

Total accounts payable 2 796 2% 4 145 2% 1 349 -33%

Debt 126 458 84% 139 411 82% 12 953 -9%

Deferred income taxes 2 668 2% 5 380 3% 2 712 -50%

Derivated financial instruments 2 145 1% 1 376 1% 769 56%

Liabilities of held-for-sale operations 56 0% 0 0% 56 N/A

Other liabilities and deferred income 5 438 4% 5 314 3% 124 2%

TL 139 561 93% 155 626 92% 16 065 -10%

Shareholder's interest

Shareholder's interest 5 149 3% 5 149 3% 0 0%Accumulated other comprehensive income 432 0% 1 733 1% 1 301 -75%

Retained earnings 4 985 3% 6 515 4% 1 530 -23%

Total Shareholder's interest 10 566 7% 13 397 8% 2 831 -21%

Total liabilites and shareholder's interest 150 127 100% 169 023 100% 18 896 -11%

Comparative Balance Sheet 2 years

Assets2 008 % 2 007 % V V%

($M) December 31,

Cash and cash equivalents 15 151 8% 17 677 7% 2 526 -14%

Investment securities 8 445 4% 16 740 7% 8 295 -50%

Loans held-for-sale 7 919 4% 20 559 8% 12 640 -61%

Finance receivables and loans, net of unearned income

Consumer 63 963 34% 87 769 35% 23 806 -27%Commercial 36 110 19% 39 745 16% 3 635 -9%

Allowance for credit losses 3 433 -2% 2 755 -1% 678 25%

Total finance receivables loans 96 640 51% 124 759 50% 28 119 -23%

Investment in operating leases 26 390 14% 32 348 13% 5 958 -18%

Notes receivable from GM 1 655 1% 1 868 1% 213 -11%

Mortgage servicing rights 2 848 2% 4 703 2% 1 855 -39%

Premiums and other insurance receivables 2 995 2% 2 030 1% 965 48%Other assets 27 433 14% 28 255 11% 822 -3%

Total Assets 189 476 100% 248 939 100% 59 463 -24%

Comparative Cash Flow - GMACGMAC Cash Flow

Operating 2008 2007 V V%

Net income 1 868 -2 332 4 200 -180%

Depreciation and amortization 6 239 5 937 302 5%

Operating lease impairment 1 234 0 1 234 N/A

Impairment of goodwill and other intangible assets 58 455 397 -87%

Amortization and valuation adjutments of mortage servicing rights 2 250 1 260 990 79%

Provision for credit losses 3 683 3 096 587 19%

Loss/(Gain) on sale of loans 1 825 -508 2 333 -459%

Net losses (gains) on investment securities 1 203 737 466 63%

Gain on extinguishment of debt -12 628 -563 12 065 2143%

Originations and purchases of loans held-for-sale -132 023 -128 576 3 447 3%

Proceeds from sales and repayments of loans held-for-sale 141 312 121 620 19 692 16%

Net change in Trading securities 741 628 113 18%

Net change in Deferred income taxes -396 95 491 -517%

Net change in Interest payable -651 -332 319 96%

Net change in other assets -1 213 -121 1 092 902%

Net change in other liabilities 178 686 508 -74%

Net change in other, net 415 -622 1 037 -167%

Net cash provided by (used in) operating activites 14 095 1 460 12 635 865%

Investing

Purchase of AFS securities -16 202 -16 682 480 -3%

Proceeds from sales of available-for-sale securities 14 068 8 049 6 019 75%

Proceeds from maturities of AFS securities 7 502 8 080 578 -7%

Net increase/(decrease) in finance receivables and loans 5 570 -41 972 47 542 -113%

Proceeds from sales of finance receivables and loans 1 366 70 903 69 537 -98%

Purchases of operating lease assets -10 544 -17 268 6 724 -39%

Disposals of operating lease assets 7 633 5 472 2 161 39%

Change in notes receivable from GM -62 138 200 -145%

Sales/(Purchases) of mortgage servicing rights, net 797 561 236 42%

Acquisitions of subsidiaries, net of cash acquired 0 -209 209 -100%

Proceeds from sale of business units, net 319 15 304 2027%

Settlement of residual support and risk-sharing obligations with GM 0 0 0 0%

Other,net 471 1 157 686 -59%

Net cash provided by investing activities 10 918 18 244 7 326 -40%

Financing

Net change in short-term debt -22 815 -9 248 13 567 147%

Net increase/(decrease) in bank deposits 6 447 3 078 3 369 109%

Proceeds from issuance of long-term debt 44 724 70 230 25 506 -36%

Repayments of long-term debt -59 627 -82 134 22 507 -27%

Proceeds from issuance of senior preferred interests 5 000 0 5 000 N/A

Proceeds from issuance of preferred interests 0 0 0 0%

Dividends paid -113 -179 66 -37%

Other, net -1 784 675 2 459 -364%

Net cash used in financing activities -28 168 -17 578 10 590 60%

Effect of exchange-rate changes on cash and cash equivalents 629 92 537 584%

Net increase/(decrease) in cash and cash equivalents -2 526 2 218 4 744 -214%

GMAC Cash Flow

Operating 2008 2007 V V%

Net income 1 868 -2 332 4 200 -180%Depreciation and amortization 6 239 5 937 302 5%

Operating lease impairment 1 234 0 1 234 N/A

Decrease in Impairment of goodwill and other intangible assets 58 455 397 -87%

Decrease in Amortization and valuation adjutments of mortage servicing rights 2 250 1 260 990 79%

Decrease in Provision for credit losses 3 683 3 096 587 19%

Loss/(Gain) on sale of loans 1 825 -508 2 333 -459%

Net losses on investment securities 1 203 737 466 63%

Gain on extinguishment of debt -12 628 -563 12 065 2143%

Increase in loans held-for-sale -132 023 -128 576 3 447 3%

Decrease in sales and repayments of loans held-for-sale 141 312 121 620 19 692 16%

Decrease in Trading securities 741 628 113 18%

Increase in Deferred income taxes -396 95 491 -517%

Increase in other assets -1 213 -121 1 092 902%

Increase in Interest payable -651 -332 319 96%

Increase in other liabilities 178 686 508 -74%

Increase in other, net 415 -622 1 037 -167%

Net cash provided by (used in) operating activites 14 095 1 460 12 635 865%

Net cash provided by investing activities 10918 18244 -7326 -40%Financing

Dividends paid -113 -179 66 -37%

Purchases of short-term debt -22 815 -9 248 13 567 147%

Net increase in bank deposits 6 447 3 078 3 369 109%

Proceeds from issuance of long-term debt 44 724 70 230 25 506 -36%

Payments of long-term debt -59 627 -82 134 22 507 -27%

Issuances oif Senior preferred interests 5 000 0 5 000 N/A

Iissuance of preferred interests 0 0 0 0%

Increase/(Decrease) Other, net -1 784 675 2 459 -364%

Net cash used in financing activities -28 168 -17 578 10 590 60%

Effect of exchange-rate changes on cash and cash equivalents 629 92 537 584%

Change in Cash Position -2 526 2 218 4 744 -214%

Comparative Cash Flow – Ford Credit 2008 2007V V%

Operating

Net income/(loss) -1536 775 -2311 -298%

Provision for credit losses 1769 588 1181 201%

Depreciation and amortization 9667 6778 2889 43%

Amortization of upfront subvention -1278 0 -1278N/A

Increaseon sales of finance receivables 0 -5 5 -100%

Increase in deferred income taxes -2688 -1382 -1306 95%

Decrease/(Increase) in other assets 2539 -288 2827 -982%

Increase in other liabilities 124 286 -162 -57%

Increase in other operating activities 531 21 510 2429%

Net cash provided by operating activities 9128 6773 2355 35%

Net cash provided by /(used in) investing activites 1852 -483 2335 -483%

Financing

Cash distributions/dividends paid 0 0 0 0%

Increase of long-term debt 41720 34373 7347 21%

Principal payments on long-term debt -45090 -39311 -5779 15%

Increase/(Decrease) in Short Term Borrowings -5433 86 -5519 -6417%

Other financing activities -352 -105 -247 235%

Net cash provided by/(Used in) financing activities -9155 -4957 -4198 85%

Effect of exchange rate changes on cash and cash equivalents -489 473 -962 -203%

Change in cash and cash equivalents 1336 1806 -470 -26%

Marketable Securities Why?

Substitute for transactions balances, for:- Compensating balances (to be able to pay interest

payment) - Precautionary balances (kept for unforeseen

fluctuations) - Speculative balances

Temporary investment- To finance seasonal or cyclical operations- To amass funds to meet financial requirements

in the near future

Characteristics: Maturity

Short Term (few days or weeks) Risk

Short Run is less uncertain- So, less risk than for the Long Run

Liquidity Very liquid

Return (Yield) Low

- But given the purpose, treasurers should not sacrifice safety for higher return

Companies don’t want cash on their balance sheet.

But Today, the more cash you have the winner you are.

Investing - GMACInvesting 2008 2007 V V%

(Increase)of AFS securities -16202 -16682 480 -3%

Proceeds from sales of available-for-sale securities 14068 8049 6019 75%

Proceeds from maturities of AFS securities 7502 8080 -578 -7%

Increase/(decrease) in finance receivables and loans 5570 -41972 47542 -113%

Proceeds from sales of finance receivables and loans 1366 70903 -69537 -98%

(Increase) in operating lease assets -10544 -17268 6724 -39%

Decrease of operating lease assets 7633 5472 2161 39%

Decrease/(Increase) in notes receivable from GM -62 138 -200 -145%

Sales/(Purchases) of mortgage servicing rights, net 797 561 236 42%

(Purchases) of subsidiaries, net of cash acquired 0 -209 209 -100%

Proceeds from sale of business units, net 319 15 304 2027%

(Purchases)/Sales in Other,net 471 1157 -686 -59%

Net cash provided by investing activities 10918 18244 -7326 -40%

Investing – Ford CreditInvesting 2008 2007 V V%

Purchases of finance receivables -32983 -39005 6022 -15%

Collection of finance receivables 34594 37263 -2669 -7%

Purchases of opearing lease vehicles -11230 -16517 5287 -32%

Liquidations of operating lease vehicles 7413 7808 -395 -5%

Decrease in wholesale receivables 3545 1986 1559 78%

Decrease in retained interests in securitized assets 281 401 -120 -30%

Net change in notes receivable from affiliated companies -184 148 -332 -224%

Proceeds from sales of receivables and retained interests 0 697 -697 -100%

Purchases of marketable securities -23831 -8795 -15036 171%

Proceeds from sales and maturities of marketable securities 18427 15974 2453 15%

Proceeds from sales of businesses 4413 167 4246 2543%

Settlements of deritatives 1342 -188 1530 -814%

All other investing activities 65 -422 487 -115%

Net cash provided by /(used in) investing activites 1852 -483 2335 -483%

Securitization

Bond Analysis (Plus)

GMAC ResCap

Senior Debt Outlook

Senior Debt Outlook

RDWatch - Positive D

Watch-Positive

C Developing C Stable

CCC Negative CC Negative

CCCReview-Negative C

Review - Negative

Ford Credit

Long-Term SeniorUnsecured

Short-Term Unsecured

Outlook / Trend

B R-5 Negative

B- C Negative

Caa1 NP Negative

CCC+ NR Negative

0

500

49 49

General Motors Corporation Major Holders Breakdown

% of Shares Held by All Insider and 5% Owners

% of Shares Held by Ins-titutional & Mutual Fund Owners

Number of Institutions Holding Shares 343

Number of Holders 493

Total Shares Held 295,833,180

Holder Shares Reported

Lutz Robert A. 81,390 March 20th, 2008

Szygenda Ralph J. 39,953 March 20th, 2008

Wagoner G. Richard Jr.

35,290 March 20th, 2008

Cowger Gary L. 35,008 March 20th, 2008

Stephens Thomas G.

21,621 June 2nd, 2008

Number of Institutions Holding Shares 464

Number of Holders 590

Total Shares Held 1,263,916,332

Holder Shares Reported

Ford William Clay Jr.

4,956,971 Sept. 18th, 2008

Ford Edsel B. II 2,156,644 Dec. 31st, 2008

Parker John G. 205,361 March 11th, 2009

Fields Mark 146,651 March 11th, 2009

Cheng Meiwei 141,685 March 11nd, 2009

0

50

1005

55 57

Ford Motors Company Major Holders Breakdown

% of Shares Held by All Insider and 5% Owners% of Shares Held by Institu-tional & Mutual Fund Owners% of Float Held by Institu-tional & Mutual Fund Ow-ners

Maj

or D

irec

t Hol

ders

Major D

irect Holders

General Motors and Ford Motors Insider/institutional Trading

Treasury Stock

Treasury Stock GM

# (in M) $(in M) % # $ %Common Stock 610 483 231 1017 76% 566 059 249 943 75%Treasury Stock 190 454 310 - 24% 190 578 292 - 25%Total 800 937 541 1017 100% 756 637 541 943 100%

2008 2007Treasury Stock Ford

# (in M) $(in M) % # $ %Outstanding Stock (Common and Class B, Average) 2 273 24 94% 1979 24 90%Treasury Stock 139 181 6% 216 185 10%Total 2412 205 100% 2195 209 100%

2008 2007

GM 2008 2007

# (in M) $(in M) % # $ %

Common Stock 611 1017 76% 566 059 249 943 75%

Treasury Stock 190 - 24% 190 578 292 - 25%

Total 801 1017 100% 756 637 541 943 100%

FORD

2008 2007

# (in M)$(in M) % # $ %

Outstanding Stock (Common and Class B, Average) 2 273 24 94% 1979 24 90%

Treasury Stock 139 181 6% 216 185 10%

Total 2412 205 100% 2195 209 100%

75%

25%

76%

24%

General Motors

Common StockTreasury Stock

90%

10%

94%

6%

Ford Motors

Outstanding Stock (Common and Class B, Average)Treasury Stock

Share Price Evolution

Correlation Coefficient

GM100%

Ford 95%100%

S&P500 60% 93% 100%

GM FordS&P5

00

Slow Growth

1st Oil Shock

Slow Growth

2st Oil Shock

NTIC Rapid Growth

Crisis?

Internet Bubble

Bubble Burst + 09/11 + Oil Shock + Subprime Lending Crisis

Comparative Stock Price Chart: General Motors Corporation VS Ford Motors

Company VS S&P 500 Index

GM F IndustryGM vs

IndustryF vs

IndustryValuation Ratio Beta 1,84 1,75 0,89 W WPrice to sell 0,01 0,05 0,35 Dividends Dividend yield 0,00 0,00 0,02 W WDividend yield - 5 year average 5,49 2,70 1,62 B BDividend 5 year growth rate -24,21 - 30,92 W Payout ratio (TTM) - - 68,48 Growth rates Sales (MRQ) vs Qrt 1 yr ago -34,24 -33,83 -25,00 W WSales (TTM) vs TTM 1 yr ago -17,23 -15,18 7,30 W WSales 5 yr Growth Rate -4,32 -2,51 9,74 W WEPS (MRQ) vs Qtr 1 yr ago -482,14 -88,77 -130,88 W BEPS (TTM) vs TTM 1 yr ago 28,65 -362,56 - EPS - 5 year Growth Rate - - 14,98 Capital spending - 5 year Growth Rate 1,21 -2,82 16,96 W W Financial Strength Quick Ratio (MRQ) 0,38 1,17 0,83 W BCurrent (ratio) 0,56 1,23 1,05 W BLT Debt to Equity (MRQ) - - 47,14 Total Debt to Equity (MRQ) - - 109,93 Interest Coverage (TTM) - -3,42 0,01 W Profitability Ratios Gross Margin (TTM) -1,09 6,49 15,38 W WGross Margin (TTM) - 5 yr average 8,41 9,96 22,03 W WEBITD Margin (TTM) -7,56 -0,61 - EBITD - 5 yr average 1,34 4,22 12,80 W WOperating Margin (TTM) -14,29 -9,44 3,00 W WOperating Margin - 5 yr average -5,21 -4,20 7,97 W WPre Tax Margin (TTM) -19,73 -9,85 3,35 W WPre Tax Margin - 5 yr average -6,26 -3,39 8,33 W WNet Profit Margin (TTM) -20,91 -9,89 1,76 W WNet Profit Margin - 5 yr average -9,37 -0,89 5,11 W WEffective Tax Rate (TTM) - - 37,93 Effective Tax Rate - 5 yr average - - 36,41 Management Effectiveness Return on Asset (TTM) -25,97 -5,81 1,38 W WReturn on Asset - 5 yr average -5,53 -1,73 4,40 W WReturn on Investment (TTM) -66,27 -9,01 2,26 W WReturn on Investment - 5 yr average -8,10 -2,53 6,98 W WReturn on Equity (TTM) - - 5,20 Return on Equity - 5 yr average - -83,61 12,79 W

Efficiency

Revenue/Employee (TTM) 613 082,00686

746,0060 296 348,00 W W

Net Income/Employee (TTM)-128

206,00 -67 920,00 1 261 184,00 W WReceivable Turnover (TTM) 17,15 1,44 9,79 B WInventory Turnover (TTM) 10,67 14,60 7,86 B BAsset Turnover (TTM) 1,24 0,59 0,67 B W

Ratios - Reuters -

Bankruptcy

($M, except for shares)GM GM Ford Ford

2008 2007 2008 2007Cash $13 953 $24 549 $22 049 $35 283

Marketable Securities 13 2 139 17 411 5 248

Receivables 7 711 9 659 6 073 8 210

Other CA 3 142 3 566 $122 422 $105 930

Inventory 13 042 14 939 8 618 10 121

Net P&E 39 656 43 017 28 565 36 239

Fire Sales $77 517 $97 869 $205 138 $201 031

CL 73 911 69 510 143 855 159 656

Net Cash $3 606 $28 359 $61 283 $41 375

LTL 100 654 109 040 90 534 107 735

Sub-total ($97 048) ($80 681) ($29 251) ($66 360)PS 0 0 0 0

Net Liquid Value ($97 048) ($80 681) ($29 251) ($66 360)WSO (in millions) 579 566 2 273 1 979

Net Liquid Value per Share -$167.61 -$142.55 -$12.87 -$33.53

Hot News GM

‘GM slashes summer production, cites Delphi risk’ (Reuters) ‘One of the deepest cutbacks by any of the

major U.S. automakers’ 13 assembly lines = 21,000 workers

GM's lengthy plant closures will ripple out (Yahoo) However, ‘Clarke said the shutdowns are not a sign that GM

is headed into bankruptcy protection.’

Hot News Ford

‘Ford seen posting Q1 loss, focuses on sector turmoil’ (Reuters)

‘Ford VP expects same concessions as GM, Chrysler’ (Yahoo)

(Current Month)

Strong Buy (1)

Buy (2)

Hold (3)

Underperform (4)

Sell (5)

TOTAL

Rating

Number of Analysts Average

0 analysts 0

0 analysts 0

3 analysts 9

6 analysts 24

2 analysts 10

11 analysts 3.91

Underperform

Number of Analysts Average

1 analysts 1

0 analysts 0

6 analysts 18

2 analysts 8

2 analysts 10

11 analysts 3.36

Hold

Recommendation Summary

Mean Recommendation (this week)

Mean Recommendation (last week)

Change

Ford Motors Company

3.3

3.4

-0.1


3.9

3.9

0.0

Date

Research Firm

Action

From

To

March 20th, 2009

Dec. 22nd, 2008

Nov. 10th, 2008

Oct. 8th, 2008

UBS Credit Suisse

Barclays Capital

Deutsche Securities

Initiated Downgrade Downgrade Downgrade

Neutral Equal Weight

Hold

Sell Underperform

Underweight

Sell

March 20th, 2009

Dec. 22nd, 2008

Nov. 10th, 2008

Oct. 8th, 2008

UBS Credit Suisse Barclays Capital

Deutsche Securities

Initiated Downgrade Downgrade Downgrade

Neutral Equal Weight Hold

Sell Underperform

Underweight Sell

Analysts Opinion: Yahoo! Finance

WW

W

BB

B

Morningstar Company Grades

Company Name Growth Profitability Financial Health Total


B F D D+ / Sell

Ford Motors Company

D F D+ D / Sell

Industry Average C+ D D D+ / Sell

Growth Profitability Financial Health Total0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.00

0.00

1.001.33

1.00

0.00

1.30

0.77

2.30

1.00 1.001.43

Morningstar Company Grade Valuation

General Motors CorporationFord Motors CompanyIndustry Average

Analysts Opinion: Morningstar

B

B

BW

W

W

W

W

Tool Name Description Min Max Rating

GM F

Value Measure of stock’s current worth

0.00 Unlimited $0.25/share (overvalued)

$0.18/share (overvalued)

RV (Relative Value) Long-term appreciation potential

0.00 2.00 0.03 (Very poor) 0.05 (Very poor)

RS (Relative Safety) Indicator of risk 0.00 2.00 0.75 (Poor) 0.79 (Poor)

RT (Relative Timing) Indicator of stock’s price trend

0.00 2.00 1.64 (Excellent) 1.70 (Excellent)

VST (VST-Vector) Vectorvest Ranking Indicator

0.00 2.00 1.10 (Good) 1.15 (Good)

Recommendation (REC)

Analyst opinion Sell Buy Hold Hold

GRT (Earnings Growth Rate)

Indicator of earnings growth

Unlimited negative Unlimited positive -9.00% (Very poor) -6.00% (Very poor)

EPS (Earnings per share)

Indicator of 12 months earnings per share

Unlimited negative Unlimited positive $-33.47 $-4.22

P/E (Price to earnings ratio)

Measure stock valuation

Unlimited negative Unlimited positive -0.11 -0.67

EY (Earnings Yield) Earnings per share as a percent of price

Unlimited negative percentage

Unlimited positive percentage

-924.54% -148.59%

GPE (Growth to P/E Ratio)

Measure stock valuation

Unlimited negative Unlimited positive -83.22 -8.92

Summary Analysis:GM is overvalued compared to its price of $3.62 per share, has somewhat below average safety, and is currently rated a hold.

Summary Analysis:F is overvalued compared to its price of $2.84 per share, has somewhat below average safety, and is currently rated a hold.Ford would be a better investment

Analysts Opinion: Vector Vest

B

B

BB

B

B

B

B

B

B

(Current)

Buy(1)

Outperform (2)

Hold (3)

Underperform (4)

Sell (5)

No Opinion

TOTAL

Rating


Number of analysts Average

0 0

0 0

2 6

5 20

4 20

0 0

11 4.18

Underperform

Ford Motors Company

Number of analysts

Average

2 2

0 0

5 15

2 8

2 10

0 0

11 3.18

Hold

Analysts Opinion: Reuters Finance

W B

Analyst Opinion: Market Watch

Average Recommendation

Number of Ratings


Current Last Month

Underweight Underweight

12 10

Ford Motors Company

Current Last Month

Hold Underweight

12 12

Date

Broker

New

Old

Comments

3/20/2009 11/10/2008 10/3/2007

UBS Barclays Capital

Bank of America Securities

Sell Underweight Neutral

X Equal Weight Sell

X On Labor Agreement

Price target at $26

3/20/2009 11/10/2008 9/17/2007

UBS Barclays Capital

Bear Stearns

Buy Underweight Outperform

X Equal Weight Peer Perform

X Cash Concerns + Deteriorating International Business

Amid Health Care Costs

LONG WAY TO GO…

Otherwise…

Conclusion

You love fi nance, even when you don’t get a chance to … sleep!

(cefam) fin220 - gm/ford

Documents

income net of tax

equity income net

net income revenuerevenue

income expense

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tata motors

ford motor company300