8-KMaterial AgreementsOther Events

General Motors Co 8-K Report, Material Agreement (Jan 15, 2010)

Filed January 15, 2010For Securities:GM

Summary

This 8-K filing from General Motors Company (GM), filed on January 15, 2010, primarily concerns two key operational and financial events. Firstly, GM formalized a consulting arrangement with one of its directors, Stephen J. Girsky, appointing him as Senior Advisor to the Office of the Chairman. This role includes compensation in the form of a monthly salary stock grant valued at $75,000, reimbursement of living expenses, and travel costs, effective retroactively from December 1, 2009. Secondly, the filing details GM's continued financial support for its European Opel/Vauxhall business. Following a €600 million financing provided in November 2009, GM extended an additional €650 million (approximately $930 million) in early January 2010. This latest funding was structured as an acceleration of payments owed for engineering services, effectively acting as a bridge to more permanent financing solutions for the Opel/Vauxhall group, which GM has decided to retain. The European operations, excluding Saab, require a total funding of €3.3 billion.

Key Highlights

  • 1General Motors has entered into a material definitive agreement for a consulting arrangement with director Stephen J. Girsky, who will serve as Senior Advisor to the Office of the Chairman.
  • 2Mr. Girsky's compensation for his advisory role includes a monthly salary stock grant valued at $75,000, plus reimbursement for living and travel expenses.
  • 3The consulting arrangement with Mr. Girsky is effective retroactively from December 1, 2009.
  • 4GM has provided an additional €650 million (approximately $930 million) in financial support to its Opel/Vauxhall business in early January 2010.
  • 5This new funding for Opel/Vauxhall is structured as an acceleration of payments for engineering services, intended to provide interim operational funding.
  • 6GM's decision to retain the Opel/Vauxhall business is reaffirmed, with ongoing discussions for more permanent financing sources for the European operations.
  • 7The total funding requirement for GM's European business (excluding Saab) is estimated at €3.3 billion.

Frequently Asked Questions

The agreement appoints Mr. Girsky, a GM director, as Senior Advisor to the Office of the Chairman. He will provide consulting services to the company.

Mr. Girsky receives a monthly grant of salary stock valued at $75,000, in addition to his regular Board retainer. He is also reimbursed for his living expenses in Detroit and travel expenses.

GM has decided to retain the Opel/Vauxhall business and is providing this additional €650 million to support its operations until more permanent financing can be secured. This funding is structured as an accelerated payment for engineering services.

According to GM's viability plan, the European business (excluding Saab) requires a total funding of €3.3 billion. This filing indicates ongoing efforts to secure these funds.