The rating reflects Standard&Poor's Ratings Services' view that, among other things, Detroit-based General Motors Co.'s (GM's) prospects for generating free cash flow and profits in its automotive manufacturing business continue to solidify, because of its cost base in North America, combined with prospects for some gradual improvement in light-vehicle sales in North America into 2012. We estimate GM's automotive free operating cash flow (FOCF) during 2011 will be at least $5 billion (roughly equivalent to around 10% of our estimate of adjusted automotive and post-retirement debt in 2011). We also assume that GM can sustain its pretax automotive EBIT margin in North America in the upper–single-digit percentage area and in the mid-single-digit area in total for automotive, and
