I know you have heard a lot in the media about General Motors and Pontiac. I would like to give you, as I know and view this situation, what is happening. 1. General Motors has stated they want to reduce their dealers from 6,200 to 3,600, a reduction of 2,600 dealers. The 6,200 are the approx. number of dealers as of December 2008. a. Unfortunately there have been a number of dealers that have already gone out of business throughout the nation, therefore reducing the 2,600 dealers down into the low 2,000’s already. b. Between Saab, Saturn and Hummer there are approx. 500 dealers that will no longer be a part of GM, now getting down to the 1,500 dealer range. c. Throughout the nation, there are a number of dealers that sell less than 50 new vehicles per year that are earmarked dealers, therefore reducing the dealers to the 1,000-1,200 range that are going to be “Targeted” dealers with which General Motors would like to have a conversation. 2. General Motors criteria, as I understand it, for the “Targeted” dealers is as follows: a. GM will be looking at geographical areas and the concentration of dealers in the area, be a metropolitan area or a suburb, they will look to dealers to consolidate, turn in their franchises or have their franchises terminated. b. Market effectiveness, how well dealers have performed over the past in selling and servicing GM products in their marketplace. c. Facilities, if they are newer or older facilities and their convenience to the consumer. d. The dealer’s individual CSI (Customer Satisfaction Index) rating showing how well they have been taking care of the customer. e. Dueled with a non GM franchise and how much of the dealers business comes from each. For example, GM franchise and an import franchise, how much does the dealer market the one over the other? f. Stocking history, if a dealer has been inventorying enough of the General Motors vehicles, displaying and marketing properly and regularly. g. There are more I am sure, however, these are the main “target” areas. 3. About Pontiac a. General Motors has decided after careful and painful deliberation, Pontiac will be phased out through 2010. GM will have 4 core brands, ie. Chevrolet, Cadillac, Buick and GMC trucks with 3 marketing lines of Chevrolet, Cadillac and Buick/GMC, which is not much different from now with just Pontiac being removed from the current Pontiac/Buick/GMC marketing line. b. Pontiacs will still be sold, just like when Oldsmobile phased out, and this will be over the next 12 to 18 months. c. Why buy a Pontiac now? i. Still have Pontiac excitement along with very aggressive deals and “The Total Confidence Plan” 1. The warranty is a fully backed 5 year/ 100,000 mile warranty 2. Guaranteed Future Values 3. Family protection of a full ONE Year OnStar subscription on select Pontiac models. 4. Payment protection plan, that will cover up to 9 payments of up to $500.00 each if you would unfortunately lose your job. 4. Where does all this leave Premier Pontiac GMC a. First of all, we will be unfortunately losing Pontiac. Pontiac has been a big part of this dealership for 50+ years, however, times have changed and so shall we, as a better and stronger business. We will continue to provide the GMC product which has been phenomenal for us and that has been are best franchise. New GMC products are coming and we are very excited. We will, of course, continue providing quality used vehicles and GM Certified vehicles along with servicing your vehicles just as we currently do and as we have in the past. b. Let’s look at the “Target” Points General Motors will be using when evaluating dealerships. i. Looking at geographical area, we are the only GMC dealer in the immediate marketing area, with a new facility and great access for the consumer, located only 3 miles south of I-76, on Route 57,. ii. Market effectiveness-We have exceeded GM’s expectations in the marketplace. iii. Facilities, our ace in the hole. The Leatherman’s had the vision, over 4 years ago, to build this new facility for the future, and the future is here. This dealership is only 4 years old and is equipped with the latest service and diagnostic equipment to better serve our current and future customers. iv. The dealers individual CSI (Customer Satisfaction Index) rating, Premier Pontiac GMC, continually exceeds General Motors expectations in customer CSI due to our loyal and dedicated staff. v. Dueled with a non GM franchise and how much of the dealers business comes from each. We only promote General Motors products in our new vehicle department and look forward to continuing this 50+ year history into the future. vi. Stocking history. We always have maintained a nice selection of new General Motors products plus if for some reason we would not have a particular vehicle in stock, locating that vehicle for a customer has never been an issue. vii. We are the area’s ONLY GM Certified Used Vehicle dealer, continually ranking tops in our region in providing top quality GM vehicles backed by GM’s Certified program. This is the most up to date information at my disposal. However, I really feel with our ownership by the Leatherman family; the Leatherman’s and the dealerships commitment to you, our valued customers and the community; and our loyal and dedicated employees that Premier Pontiac GMC will remain and continue, stronger than ever, to service you and provide you with quality General Motors products and the service your are accustomed to and deserve to receive. If you have any questions, comments or concerns, I am available at my office or by phone and I look forward to discussing these historic times with you. Thank you for your past business and everyone at Premier Pontiac GMC looks forward to a long and happy automotive relationship with you. Sincerely, Thomas F. Casto General Manager Premier Pontiac GMC | 
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