Growing North American market that generates significant profits and cash flow Sizable losses in European operations and only modest profits elsewhere outside of North America Still-high dependence on light trucks (especially full-size pickups) for profitability in North America, although new car introductions in recent years have performed well Exposure to persistent industry risks, including volatile demand, high operating leverage, and limited pricing power Expectation for continued favorable finance profitability benefitting from improved volumes, low credit losses, and strong used-car prices Adjusted debt to automotive EBITDA expected to improve to about 3.5x or less in 2013 Pension and other postretirement employee benefits (OPEB) underfunding remains very sizable at about $25 billion as of year-end 2012 Adequate liquidity and substantial cash balances
