January 17, 2011

Daniel F. Akerson
Chairman and Chief Executive Officer
General Motors Company
300 Renaissance Center
Detroit, MI 48265

Dear Mr. Akerson,

Congratulations on your role in closing out 2010 with a successful GM IPO!

We are encouraged to see GM back in the game. On behalf of the GM Retirees Association members who capitalized on the IPO opportunity, we appreciate being included in that historic event.

We are happy to see GM is taking action on contributing to the pension fund and is interested in getting funding levels where they need to be. Still, we are wrestling with a few issues that need your attention, and action. First, we’ve had a deluge of outrage mail based on media reports around the raises for GM executives and the cost of living catch-up bonuses for represented retirees. We understand the business logic, but the negative reaction from salaried retirees is justifiable as these moves represent a pattern of inequitable and unfair treatment with respect to salaried retirees versus other groups.

I am sure you know, the retirement benefits of salaried retirees were cut by two-thirds in the interest of “shared sacrifice” as part of the GM bankruptcy. Consumer and retiree purchasing decisions are influenced by a company’s ethics, and how they respond to their moral obligations and commitments.

According to a recent GM statement to Joanne Mueller of Forbes, “Things like the pension plan do not enter into the equation.” We like to think that this statement implies that the salaried pension plan will be fully funded and will no longer be a financial liability to GM. If the “selling” part of the priorities listed in this article is important, the support and purchasing loyalty of an army of GM ambassadors should be moved up on the priority list.

The concerns we’re hearing from retirees fall roughly into three areas: the health of the salaried pension fund; the lack of cost of living increases to pensions; and, in view of the drastic cuts to benefits, the need for a retiree-exclusive vehicle purchase incentive.

A lot has happened over the past year since we first raised the issue that a once-loyal retiree customer base is slipping away to the competition. In response, we’ve had conversations and meetings with the GM team and there have been ride-and-drive events. The GM team has been great to work with and we appreciate the stepped-up efforts and attention to retiree issues as they come up. But these efforts, though commendable, are just not getting the job done and accomplishing what GM needs to accomplish in the retiree market segment.

I look forward to discussing solutions with you, or your representative.

Our very best wishes and support for GM’s success in the New Year!

Sincerely,

John D. Christie

President
GM Retirees Association

cc: Mark Reuss
Mary Barra
Jean Rose
Marsha Hall-Jenkins