September 17, 2010 Mr. Daniel F. Akerson
Chief Executive Officer
General Motors
300 Renaissance Center
Tower 300
Detroit, MI 48265 Dear Mr. Akerson, On behalf of the GM Retirees Association, congratulations on your new role leading GM! As President of GMRA, I would like to introduce our organization and give you some background. We are a national association of GM salaried retirees, including executive-level and classified members, as well as some union-represented members. GMRA was formed just ahead of GM’s bankruptcy proceedings, while decisions were being made about changes to benefits that directly affected the future of retirees. Ultimately, we had no voice in those tough decisions. We are a GM retiree advocacy group -- not an adversarial organization. Our goal is to protect the retirement future of our members, meaning our pensions, and what remains of our benefits, or total compensation. We work closely with the National Retiree Legislative Network, a group of about 2 million retirees nationwide and have regular two-way communication with GM retirees. There are about 120,000 GM salaried retirees in the U.S., -- a significant and loyal customer base. Traditionally, retirees represent a huge asset to GM as promoters of GM products. Unfortunately, we are hearing from an increasing number of members that their purchasing loyalties are changing as a reaction to GM’s treatment of retirees. This trend is extending beyond the GM retiree base to our affiliate retiree associations. We do not have specific data, but have heard statistics that suggest that every lost customer has the potential to influence an additional 14 vehicle purchasing decisions. We like to think that projection might be on the high end, but if it’s on target, retirees could influence the purchasing decisions of a half million customers. I’m sure your sales and marketing people could crunch numbers to get accurate statistics. Imagine how it looks when a 30- or 40-year GM employee purchases a Ford, or even worse, a Japanese product. They are making a statement. This trend concerns us and is proportionately escalating based on the recent high level of media attention to the inequitable treatment of Delphi salaried retirees. We strongly support our Delphi salaried retiree colleagues in their pursuit of equal and fair treatment. At the same time, we are concerned that there is someone at the helm who will ensure that decisions made with respect to the Delphi case are judicious and in the best interest of maintaining the health and viability of the GM salaried pension fund. Our members are watching closely as the events unfold. GM allegiance is at stake. We’ve had several conversations with GM representatives, including Mary Barra and Jean Rose, to discuss the situation and to share our ideas for turning this around. It is our understanding that GM marketing is working on a vehicle incentive program targeted toward the GM retirees market. This could help, but at the same time, we are concerned that a single marketing program will successfully rebuild the relationship that we see eroding. We are not making the progress we need to make. Once the retiree customers are gone, there is little chance to win them or those they influence back. We know our retirement future depends on GM’s success. We would be happy to meet you or your representative to discuss the feedback we receive and to identify new ways to turn this around and rebuild a productive working relationship that will contribute to the success of GM and its stakeholders. More information on the GM Retirees Association is available at www.gmret.org. Sincerely, John D. Christie President GM Retirees Association
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