General Motors (GM) 26 Apr 222022 Q1 Earnings call transcript

Good afternoon, and welcome to the General Motors Company First Quarter 2022 Earnings Conference Call.

During the opening remarks, all participants will be in a listen-only mode. After the opening remarks, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference call is being recorded Tuesday, April 26, 2022. I would now like to turn the conference over to Ashish Kohli, GM's Vice President of Investor Relations. ahead. go Please,

afternoon, as Good first thank for you of Thanks, review everyone, GM's us we the financial joining XXXX. Sue. and results quarter for

on this Our and were call Investor issued conference are website. materials available the GM Relations afternoon

call broadcasting webcast. We this are via also

is GM's us GM's CEO; Jacobson. Chair and today Joining Vice President and Paul Executive and Mary Barra, CFO.

Q&A call. will CEO Kyle Vogt, In and be us addition, Financial; joining Dan the of Berce, GM portion for the President of Cruise, of and CEO

Before would on attention first will The I to this we the page to the pleased our I'm by of turn presentation. Mary. your begin, language. call direct to like that, to And our forward-looking call the statements governed content with be of over

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that affordable have major of growth We Buick. Chevrolet will models be more will also for a and source

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in America trucks. North is in course, Of growth biggest our opportunity

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flexible many best capability, pickup available range, and larger, attributes Chevrolet four-wheel compared the EV's to Silverado the competitor. Cruise EV, including cab will of closest Super in HUMMER far a superior steering, see and You faster our bed fast-charging more

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We building advantage will EV competitive The weeks. Silverado EVs a a our in begin be chain of us. for production preproduction also supporting matter supply will

destiny. own our control to is strategy Our

long-term we So forge strategic relationships.

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technology the Silverado have Plant and launched improved help new Even and to major new reductions our portfolio. Super both designs, the Assembly at of AV In of ICE heavy-duty the XX.X-inch business Oshawa These functionality, we quarter, grow. same engineering businesses, models of currently summer for models, EV our Sierra most trailering Chevrolet demand, during To which the about our account and and third At with example, are build GMC ZRX first we trucks our ICE like spend, we screen meet the including the and new our Denali Silverado Ultimate. earnings premium will the off-road for on new and Cruise XX% infotainment will expense and shift hands-free across models. add as capital scale in power the a versions light-duty product executing time, complexity a and we Sierra.

from three Terrain today's example, for create us compressed the for two we expansion. footprint space Equinox white enabling and capacity For plants, EV to to

achieved a XX% about and build ICE Silverado combinations all XX% next-gen than of reuse part reduction on we're a the build avoidance more these applying our and sharply as in sharing these of combinations. reduce along We well, cost significant strategies also across We with models, programs.

Acadia up next-generation fewer today's Cruise. one-third with and have update to example, with like models. our on For and an Traverse, will launch parts higher wrap Enclave than unique I'd EBIT

position rapid the During bullish increase the we progress opportunity took to commercialization. are quarter, XX%, toward approximately our ownership team's on we to the because extremely

Cruise San San environment. more in to like to members And city of has distance turn XX its over and and launch make full from Already, City, call charge of approaches. operations city XX/X across is permitting ZERO a news on as New the York of Francisco all for shared it all public. a now, Francisco safely Cruise hundred the and San Kyle Francisco. the times process the the in in the I'd toward this at As driverless expanding is completes driverless to now as end traveled by Paul. We'll operating mode Cruise to includes call, continues about year. in for This our to rights have XX% moving about operating fleet Factory rides the the complex several entire and share Origin last to great highly Cruise deliberately, progress in

by Thanks, Thank full-size products, first the taking Mary, everyone. especially join very growth, for our SUVs. strong afternoon, for quarter, our fueled time us over for to delivered demand robust you and We a and year-over-year trucks XX% today. revenue including good

and semiconductor regular immediately April, into demand they with overcome for worked vehicles other running at as our team has to supply as largely dealers. were plants to continued continuing products customer Our most arrive Strong constraints. the turn production,

an XX% to over private utilized just at percentage market to in we very $X.X from cash opportunity approximately take shareholder approximately capitalize strategic highlighted, to accelerate of Mary investments AVs help will prioritize in case our and to that continued the create long-term growth. As In actions Cruise, we've designed to attractive on billion our and EVs XX% ownership value valuation. increase a

a our Our triggered ownership tax expected purposes year adjusted percentage X full to XX%. percentage effective increased and in by Cruise lowered for reconsolidation approximately points rate income tax

and result, drive outsized line see opportunities, our $X.XX we is this. allocation by a at invest diluted the to businesses directly long-term EPS capital our guidance increased that year full adjusted This As potential be we in to in to tremendous priorities transaction transparent, address growth given Cruise. with

generated ability EBIT billion XX.X% costs, adjusted, in let's and to results. as Now transition. team of We well as share the the EBIT per $X commodity to in higher growth $XX of the our in impacts and turn revenue, These resiliency EPS EV our results investments $X.XX adjusted diluted QX demonstrate adjusted. margin mitigate in billion in

consumer year to the inflationary from strength despite growth highlighting pressures. QX, Sequentially, volumes of similar XX% results quarter products demand first wholesale company In last and XXXX. $X.X environment. billion the is our were We costs, the in in saw of we total fact, of facing the higher recognize our

the downtime However, trucks, to and we customer including significant volume improve partially for full-size wholesale challenges. ongoing partners XX% was Financial with capital, our our $X.X breakeven cash supply worked to the continue against as to from and flow XX% continuing of of CapEx goal billion during driven Overall, impact Mary quarter, team year-over-year, year total We see full of the closely and by help continued chain working to refreshed of protect to were minimize dividend semiconductors effectively deliver the working GM improvement short-term a growth. of disruptions availability plant our the free pickup semiconductor see and vehicles, mentioned. Adjusted other an higher are offset demand automotive company non-recurrence strong quarter. our by to for able favorable we

and SUVs, North guidance Now investments achieve commodity North take in full XXXX America. year-over-year, offset let's XX.X%, our at delivered look year of America $X.X higher track pleased our costs by by on a strong margins XX%. trucks also of EBIT and In with North QX, closer full-size to billion, adjusted growth. pricing America of on driven in EBIT-adjusted flat We're

New at and quickly, vehicles units, less on grounded tight in That is have XXX,XXX with very of inventory lots remain continued around to this dealer US. turn transit. than days. inventory inventories much XX dealer

across ATP continue increases of XX% and increase crossovers. see our vehicle to XX% including We for segments, for trucks year-over-year

teams costs, these the While first for manage dynamics. challenges commodity are presented our to effectively and quarter logistics working

place protections ensure supply contractual provide have commodities cost some We in some protection volatility. to help and against for to

pricing We in also made some the bolster and proactive our protection. decisions provide early to year supply

we development these year-over-year our is increased vertically production sufficient we to primarily in help platforms. this year. with revenue drive we software end that and guidance, prior resources, around and of needs with to headwinds came through engineering in new integrate software example, Consistent secured expectations logistics as Through hardware palladium QX. in our billion For from to and inventory line saw the continue at meet $X our actions, investments, commodity our

partially excluding results income to COVID impacts, semiconductor with stabilization China, favorable Now, with in year-over-year, pricing primarily by offset EBIT in This of $XXX pricing QX, actions. by move continued year-over-year, GMI, International. XXXX. results and recent equity impacts. driven down million volume, in included GMI let’s offset and partially commodity both million million, delivered $XXX $XXX of was up cost million, $XXX by GM by consistent $XXX mix, EBIT-adjusted driven and first adjusted million China, quarter

current Used vehicle on favorable I'm momentum $XXX credit international in of doing. were has really GM would business, expenses. comments expect Financial were sequentially XX% the or year-over-year in year that expenses been in company. impact to prices up profitability Financial XX% results see the in of strong $XXX million quarter proud exclusively to work whole driven again, QX used performance, to which prices. lower the and for but changes, we the used modestly few the team driven to QX an includes full year-over-year. see with and prices $X.X differences the unless first mark-to-market from car the another billion, not solid decline QX, also values GM continue almost delivered corporate million A EBT -- and We by quarter, Corporate by vehicle adjusted

Moving to Cruise.

to event shares provide and billion modified to employees. acquire earlier, for initiated in given Cruise an opportunity the expense we vesting, previously time resulting the a opportunity a captured opportunity remove also previously the requirement mentioned in have As reached I their QX have adjusted, recognizing The $X.X liquidity treated threshold. the in would of this liquidity for to Cruise as ongoing existing to Cruise, a included for purposes recognized additional an we We program liquidity modification in equity for under EBIT would that expense special been terms. vesting QX expense compensation awards awards

vesting period be expenses recognized at stock expenses, we future Cruise over expect billion. XXXXX approximately the compensation expenses in full be at of the Cruise incremental forward, year to earnings. stock will Going $X compensation Inclusive

calendar our Turning XXXX the year. to outlook for

earlier We at in $XX production have have to to Cadillac help offset currently a EBIT also the of billion are as commodity to HUMMER and while guidance guidance $X.X mentioned, key active for of demonstrated, company. trade to launches. be the $X.X ensure commodities And costs tools well strategies executing steps to XX%. as to our include GMC and that Mary included as logistics to the offset in higher these global start finding as as pricing team year. EV billion cost price the and our efficiencies proactive we're disposal, we preparing In a which deliver of and higher in We're a environment, past, $XX margins our summary, are the utilizing strategies, volatility. we're this holding year, than dynamic being additional billion we the These and manage future in American approximately mass-market of LYRIQ, time inventory of similar North billion on the actions, cost to original good throughout the off projected our number laser-focused the full we've of adjusted range XXXX accelerating is product at and year launch same on EV taking of

right are for and shareholders. transformation long-term value decisions the the of strategic long-term for making We the on business, the earnings our will significant support power company creating executing that the

our to of company one are last it back of We future very and an future. the all-electric the over for about I optimistic now Mary comment. will vision turn

Thanks, Paul.

culture in attract our resiliency One been on accomplished a its creativity reinforce will compensation to equity in is At is and accountability. team to focused many me of said time and it part continue our shareholder to been our and return proxy total talent. program has has help a we'll much added that, will very for and have The drivers meeting volumes is has Cruise XX, designed we received so launch existing right company's it the metrics lead always to the mission, share the driven EV America, are so commitment now, I its the the measures. margin keep and wanted to stake which hand. one by in GM well quality The in EV to and that inspired That's said, to our the for to April brightest for why for to year, other and EV Paul EV the best I've should executive everyone no on and financial at so statement, is Cruise our by every that launch the news the this long-term to Now help GM, commitment but doubt success, timing quickly our is company's mission our significant new has why goals. link success. everyone has success, in today reason directly they team times compensation file EVs created underscore our are metrics and or future. EV our the and place passion this the compensation EBIT North appear Starting mission. to

Now questions. are happy your Paul to take I and

everyone A get reminder to your questions that to we and the on we call. to asking brief to follow-up, limit analysts, so are one may

Joe from comes question first Markets. Our with Capital Spak RBC

ahead. You may go

Thanks chain is highlighted you you've in control to and help for supply It important astutely is us a for own important for bit, something already time that plan, Mary, some XXXX XXX,XXX time. lithium your here like EV made cobalt. input you on how timing that letter, sounds that XXXX nickel. the over like all those is coming to your destiny the in much little announcements assuming though, units And raw goes agreements? frame? to on Can like secured

I'm the have for to in even million units working and X would we between going able So XXXX an not we're very to get Joe, that time XXXX confident that and during XXX,XXX to is, we going hit the we're with get units XXXX I to in frame, we're North But quantities. growth work as feel into what XXXX, EV X be specific million pretty time. and the aggressive say and to XXXX targets that all additional doing, our by China on America

and to announce It's work on on. that we'll things, but when agreements. gone over we a continue when tremendous there's not again, signed So, start well on working going year, been them, have has for

General a think advantage will So, this be again, for I Motors. competitive

talked about of you to two pricing of portfolio. realms bit pricing want strong the context a about in opportunity. talk guess, the little I your I EV On pricing, different

even Silverado, an Equinox seen on do cost need point, today's and is of scope, low-end then, First, rethink is we've in I pricing -- EV, sort and you XX,XXX environment? or input to still understand on possible given there but And trim, second is, costs? what is the the that that's entry

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Thanks.

question next Lache is you. Research. Wolfe from Thank The Rod with

ahead. go may You

level Thanks seen seeing inflation. of ask the able Hi, about you my America, might XX% over year. I a affects to I that And be expecting for high GM's everybody. hoping wanted see we in we're margin just about term. taking this us that just talk for to haven't intermediate I inflation you're North that question. was strategy Though, levels decades. to And how

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Good evening, for Thanks Yes. Hey. question. the Rod.

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happens variables don't the have too remember And these I is independently. think, is, is billion-dollar thing to the move question inflation we when what much.

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Thank Great. you.

you. Thank

Next, Suisse. with we have Dan Credit Levy

ahead. You my go

look then I to out you Mary, there? us Xs, just Tier walk and the up question, X. periodically on constraints mentioned of that's the think we're for Thank different far the on last challenges a Hi. And as through constraints sense some want pick we the supply Good to Where the us could you is are half. this on questions. to just hearing ease going side. the that at second give supply evening. the semis? just as taking of you on and how in Maybe the Tier semis, I

maybe through side So you to now? right think on run where what can you for full talk at rate is return supply And to the we expect I production? just prior can point the that at in mentioned of could the you the if also, supply year. to be call, risk Europe rate a you you you'd run full production in any back way? if And half address poses

to as for understanding we Europe, really aren't we our and a portfolio seeing start do go me with of make forward, let have opportunity growth our work presence as lot So don't although, suppliers that tremendous with we the We a impact. last we see tiers sure. Because question. a in EV their

those Ukraine chain to work fairly is European So in we and our limited, from situation mitigate any of perspective, the tragic to risks. exposure supply due the a

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So try as world, which Dan, of to the being as as is that's us it just a results dynamic is, can that QX. do I had solutions, point volatility situation. I but and to in we we find strong of everything in quickly a overall, I look able very we front with some it's the think get guess, happening proof There in

to supply the it's development that some a you a the lines then, go back half, I were at EVs to conceive in from that that to Great. production? a from, years could of the this presentation of time conference what I Thank product for of of to that is potentially if that process years chain limiting be pace? and conferences start the your going ago. reality have are Or the track think ask Mary, you what And from want which see to And still vehicle are want to you. two one one time couple development to just versus your the extent question, ready you've at call that, ramp you tracking the just development I are time your in announced? on there accelerated cut supply or two essentially portfolio on we the years. in time constraints four And dynamics second pipeline simple it, you to noted to

So, on and use of already platform it's way a the is system a time there of are and control EV from coming I the to And the think out to lessons acronym. -- the process, modular were battery delivered we we having learned. VDP, we that what said, development the this plug-and-play wireless the tremendous that and vehicle our take one benefits the HUMMER time dedicated able

ahead And looking we nine -- so, able the months. that will that, pull were LYRIQ at to,

we that learning have from definitely that. we're And every so, looking at

gives it have so we the that confidence And time. me shortened

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the that So, to speed will been I able EVs continue. think, that bring we've is on, something

Great. very Thank you much.

Thank you.

Sachs. Goldman with have we Delaney Next, Mark

go may You ahead.

and much been more than taking the of at not, very North at pressures. for auto offsetting raising least, some question. the if you Thank price The successful industry in very cost has America Yes.

on to talk Can confidence that you your prices this higher mentioned increasing spending call consumer weakness to being price of of seeing to the pressures you're in given continue a You pass consumers, in cost late? the to year. signs about in of able tool being offset potential today, some

Hey, question. Yes. for the Mark. Thanks

quite I see is the that quite production see demand grounded low. up, most the inventory strong, with dealerships. remains is the that soon as vehicles we that fact we've think, And in vehicles while as talked about, our deliver for for being spoken essentially as you they to

got So strong demand. we've really

think, pickups big forward. of going that also a the new I piece are

going we is So demonstrated morning, Good whether that to products, the high weakness we of the from quality that's and seen perspective unique confidence data our the whether forward. of because see in haven't any

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products. but we've and nimble see now, we got and nothing in for be But strength flexible. to GM consumer right the demand the So

in monetize That's can Thank employee holdings, Cruise Cruise monetize points you. a share to was Do you of to of for their helpful, ability terms retention more this them able their any employees is And be the my or you you. comments and ability while that? recruiting, stakes? to about the on Any have Paul. question on private. other data follow-up some you given made details even Thank for

the on is phone. Vogt Kyle Yes.

think, like I Kyle, question? take that you'd So to if

and for Sure. Thanks, Mary, question. Mark, the thanks,

work? you're even So, And this levels, at down unequivocally, pre-COVID early to attrition I guess, seen is did is, substantially, this really year which what getting the good. answer yes. We've is go

QX actually have engagement measured we compared last engagement perhaps from And and it it, time the our we candidates favorable are an up survey, really visits was in Career to page the substantially XXXX, ran employees also We is that and more existing pipeline. are up and our importantly, comments largest substantially. ever. jump

that exceeded on for, specifically the hoped we world's targeted given the and but AVs, have. this talents our the work retain was attract great what to help expectations, that's we So reactions can that talent also us really best

right. Thanks, Kyle. All

Thank The next you. Citi. question is from with Itay Michaeli

You may go ahead.

Thanks. Good everybody. Great. evening, Yes.

like you you're rest within pricing, is to to is some relative pricing about of curious Paul. from modeling of back the it seem that pricing for I pricing And for Because hoping that of like us you're strength, products relative of sort rolling year? QX. incremental new to averages? going talked does tightness from narrow the segment to the -- of how sort gaps year maybe have So much pricing rest can to Just some opportunity new outlook you help was opportunities the that, the the of trucks kind out? it into your much GM-specific the just relative mention supply-demand, how how of playing maybe you to for much industry the

doing. about won't I get what Well, Itay. pricing future Thanks, Yes. the and we're specific strategies any into

for consumer end I think, quite demand is our of we the as products the at day, strong. said, the

content going that and upgrades that's pickup strategy what look certainly you at the we've capture within So to we've well made the the models demand from and forward. the ability when trucks, and new the additions price to seen

there's component. industry think I an So

competitors we production, our increase a some the expect this more than even at forward. year, little heard As bit I beginning own what inventories we year, higher we've been said of think has substantially robust our which the don't from the of in going to of face industry

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EV reservations. regional if maybe talk a the about So in split you the little can bit

only focus from Yes. new We not General already both demand. are a definitely stronger Motors, West but the the to there where seeing are Coast, seeing customers and is a East we

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you. very helpful. Thank That’s

Thank you.

America. Next is John Bank of with Murphy

go may You ahead.

realize a actual net from Good pricing, on stick then that There's there's I the layers paid the the many you your in evening, things dealers. advance, apologize And from of the invoice or the on the pays. other assistance dealer plan the that that from then consumer floor vehicles everybody. for are or the MSRP, And to second. transaction right? going pricing but There there's price I'm you dealer. price impacts get and holdback There's

with from increasing there's of be egregious at the So more that deserved dealers I'm benefiting to might than you're floor you're in sort of that there's relationship invoice change just terms deploy almost the looking the generate or benefiting dealers, folks MSRP the that billions that or the to because earned, on astronomical changing side more might of even the so, moment. increasing anything plan be at grosses arguably by the that, your price, that any are way like this, actually strong it? dollars better in maybe as but dealer if capital at you're GPUs you look are curious pricing

the see long of first a over They're competitive do And question. believe, all, we the highly that is term, will experienced. appreciate network our dealer people So, advantage.

go do the have which to to they where only We cuts they want, online, meet whether something want a customers. not the the to lot actually the ability store, customer or of completely

kick still to working look to been unlock want and As those to better in the they doing together efficiencies. leverage literally is But them, find serve what way have at go the efficiencies to to a tires. customers we and we

cost is pie successful how as the Day, sale showed cost that we both divided. we've retail doing opposed And, plans, think the will out piece that. we our huge of confident share of our to been is a that And is I we we as again, support the sale. new at a be Investor in to the that, at the We're reduce going digital reduce looking network. to have and roll to be that of going we enabler the So in at very platform overall of

yet transparent phased of EV the customers the accurate will rollout going our XX% compare to over dealers. They be able across have for a year. to to preparing up have they expect and also platform signing can pricing, We opportunity. that's and this dealers give Chevrolet to And

that think a because and overall we're the work we to dealers, we be a customer experience an doing exceptional with see partner ownership distinguisher. our So customer that as is sure has making them the going

curious, fashion sorry, I'm is may the so going as MSRP those increases invoice announced, in invoice be MSRPs. because different that obviously a linear Mary, I'm with the about lot But, about the just think than think should a we up MSRP. the we

with look agreement allocation. a them. have that we at dealers with them not lose we with small deal we handful behaving see we of and they And the are there's as consistent -- MSRPs, Well, if

that. the most dealers they're committing part, doing MSRP. have had actually that I our the dealers send to respecting are For letters me me

customers address we think So handful most see. I but for will what the part, of those that's exceptions,

goes that The seen press quick Okay. -- has I missed that And I reiterated, talking Is still might were is I you or release I it XXXX the XX% something then, to But XX% the in that's apologize. guys before. missed being Maybe changed? wholesale that or volume think have guidance, something. about that it. just follow-up. it. assumption haven't into a FY I

yes. changed, not Has

you very Thank much. Great.

let And Itay's to me question, question, Hey. the I answer information. go next -- think, I before to the found we in

of are from are on GM, the to For EV, the Coast. the reservations new reservations XX% and example, West of East Silverado XX%

move So Operator, to we to didn't your I confirming I Itay, question. my numbers on. the quote without was numbers -- can answer that's the want them. behind But,

Thank you.

have we Next, with Stanley. Jonas Morgan Adam

ahead. You may go

Thanks, Hi, Mary. everyone.

Hi, Adam.

Hi.

real Could of your you America? of specific be volume there's charging to that time MSRP. MSRP said a in percentage dealers are your a transacting over You handful North over is us in that give

like Adam, number. I those it high, address that especially it's is we -- And high it, a small. said,

So and couple a the the a again, lot and into off dealers, of have investments especially sign necessary we percent of last have the don't done our my of head. over our as make agreements But our with work I years, sell dealers top they to EVs.

the So with we'll our customer experience. work to have continue provide we I’m dealers very well serve to confident – customer a and great

concerns that Is your of I supply really limit your battery any part some yours at emerging could And Mary. an that it okay, peers this some shortage, or chain plan bottlenecks EV remarks supply least there citing be of are are – the of want Okay, – battery ask the there way. – already, but that then will there that just in there's to

out. chain, you you there heard fading of and faded you're supply part Adam, out. battery say, then Hey, your I is any

you point? chance of you there flag a Is area think but battery understand, getting this does at that that volume chain you. to targets to part little a a the give any risk presents I situation supply wanted attention present any is fluid, your to Sorry. I – extra that's your from

are, and to X the barring upside I the million that's we numbers the we in find think XXXX XXXX, and out, and For that put by working XXXX XXX,XXX completely opportunity. unforeseen, where something we're

Mary. Thanks,

Thank you.

Next, Emmanuel Deutsche Bank. we Rosner have with

ahead. go may You

three the much. for months or understand you me very the outlook two versus help see maybe you so better this ago. now year, hoping I you or it way could Thank was

necessarily billion then of seems base it least commodities efficiency one strong, I wide this, now more just about on where What are up create Obviously, cost thinking And your you it than billion, the is guidance. but that then the of side are were a saw within you some to cost a function could you a opportunities can thinking And also $X some $X.X it's maybe be talk think of offsets the the guidance offsets? have at case. larger serve pricing a pricing would up? So, How months you maybe side, these on the on the headwind ago. remain EBIT here? the at you time, it not actually few year-over-year.

is you end higher it at at at case So the have you that be not also that lower end, now all? would be the you'd is thought the the case and or may

Emmanuel, thanks Hey, for the question.

terms assumptions us that specifically confident the But So heard about a reasonably Yes, combination we commented billion in the we what remarks vehicles we've the to and think see I from you've talked in seen we're the achieve. of the what demand that year-over-year pricing pricing. hadn't GM I that is And for increases, things. about We incremental from about able in about about been it's price we've of we've think talked pressure. and prepared of today perspective. $X.X environment the the

about that The that second rather maintain talked going within sooner putting in we in terms piece revenue said back of what growth. future full foundation for We flexibility. discretionary to of of the understanding increases room to we is, and about billion a sure making it the to prioritize couple year. what's There's dollars of cost later than to related converting

continue while cost pressures and cost forward. if in, time. it putting inflation manage because us comfort to talked on – to go I And that the to back seen were our inflation, remarks, going the environment we had we the you think in that around go we've allows about we at

improvement as as that of strong. in the So ads and as prioritizing track the at record using the company business is we've discretion, looking really between really, core new I think well done, cost

$X to said billion improving that we work that. do the to back profitability, done we that points programs it team's that go in almost ability XXXX. GMI, in $X.X XXXX, was by to to The billion over the where by billion You the we've done $X did, was

for the haven't look over of that at credit get when done, our team that the last ability the think and So of some team an execute adversity, competitors you think that. face should this number in we quarters have aggregate the the results while done we've some I of to several posted I the

the -- able then follow-up part quickly Understood. in some a was comfortable. And employees to early as data of program, you year? liquidity the has then, what themselves much feel how -- who about, to have us the availed on more you guess, second how expected, And hoping I ask popular this Cruise guidance on are how just of been, question, or to sort where the And that the liquidity cost recurring I give GM many opportunity? is has

XX%, part, as question. that Yes. we've the there's I'll beginning moving around, the XX% I the first the part that has of of we're with said which changed is take beginning. as and lot actually from second the year, said a your And we're comfortable perspective. think, just But -- the from nothing we've from first to

we're I in we we're where So were I similar would may an quarter. that where the earlier very say consistent with we've to and considerably, a outputs in inputs The spot been. change but pretty think

first tender early too giving really -- on start the it's in the to numbers. And question, those just any offer Cruise it's of

So it's early anything just, too there. to share

you. Understood. Thank

Thank you.

is Brinkman Next with Ryan JPMorgan.

ahead. go may You

or are even ensure day, that sounds, gyrating or taking supply, Hi. is supply you exposure know, another metals. to or there month-to-month, one for of might When if to one so MSRP, for battery this I'm you vehicles the order more Relative cobalt, recently some to a secured supply a the confirm for of to for the can taking metal my great which contract only how even think only certain than Thanks for any vertical in agreements question, metals as could upcoming prices question, of on do sense. Silverado long-term of whether change nickel hedge the which and time mining, it production, are there risk the these the and to orders the I even much for is a the lot integration think battery in prices light estimating that material, electric also help the I the between which somehow like insure, day or vehicles to to any way price is certain you answer intake quantity don't be at harder. the And is then -- a makes ability about as significantly ensure certain a also somehow year. battery of

issue. you're curious complicated Just how about this thinking

about ventures, of where we've Hey, preorders, the and can too. on some would where -- of We're for mix what people we're We’ve capital, et I that. with talked being about add, doing right? course, agreements is, Ryan, a start, strategic different supply talked thanks funding I'll partnering lot The a Mary, structures, say cetera. take-or-pay. we're

of there's variety a depending mix how structures on mechanisms So pricing quite wide those work. of

that extent the have the that we to exposure, course, forward. of some have of we, pricing ability markets So going some to in do hedge the

to think So long-run very, strike executed we in trying well run, rather want to end so the teams where short very overreact not we're the balance but up. And I right the for far. that

you. Thank helpful. Very

you. Thank

Johnson Next is Barclays. with Brian

You may go ahead.

I Thanks. I which, generally, goal kind and as business Hi, about great a broader question case step people, back Mary of and Paul. strategic/organizational study. with talked a ask to could given make want

similar dev a about ICE in a of market to organization preplanning different organization. where from GM competitors organizational you viable very level have both a EVs, type then chosen the and and that How thought to kind pursuing product approach rushing NewCo, in cross-town not is a separate OldCo terms minimal of you're creating principal of the strategy? backfilling with Your at of it the organization

reuse. also because that I things that to of will that -- the any we steer, that high compromises really everybody scalability products So handful like of all you us LTM is a a to higher investments ground-up the recognize cost And a and where needs appreciate range, charging, with the give us fast ago that to years design. think recognize like faster, EV degree I platform do platform we a gives of advantage this think going don't four-wheel can have made lead Silverado that I

changes. the EV think when get And So at made dedicated a system. you works really very in that already happy we on I organizational team we that look whole structure, I'm propulsion the have definitely and those

We have engineers a the EV dedicated Vice report. EV President programs where all programs, chief all and the all the

to how has in intelligence have the XXXX, rolling all all XXXX which capability so that go to we We allowed much time, of that And that going next transformation they're pretty vehicle been have the that's we and platform -- and last we I with creation over-the-air we every retail together. had across pulled market we're platform, the led of since level did, and to year. at in since digital now Ultifi. the that XXXX, XXXX, started taking out looks And think gives the software together, us EV the and whole -- where to what's it's accelerate. We come and software we vehicle shared that us Growth part out the point vehicle in that early

of and So matter the on, look to they're the XXXX a what organization, work lot talking And put of part that success our structure at and you whole to key we employees company, needs our and no when our future. as I XXXX. to of lot enable -- working time the to our they're spend in look be be a across was done a EV XXXX, across all-EV in of excited place

remember, employees five percent salaried Let's our technical the has General and Motors, even over of at with of higher or XX% company our talent been less. years

play an because important EV here work that well. on all in role EVs. EVs or is work interior working exist EV, seats design in to design, they're has as things they they believe the one of our of on them mission valuable they're or today for those and or we an whether future so And software on single And every

to the what there. organizations think focused we've on So way need be I really

focused. EDP the and to scale that our the we're with execution reuse EV out in of lead time take we So is enables us where high

On et And motor those mid-model product decisions, just will again, EV follow-on. just a changes platform, cetera, mid- talk architecture, refreshes, technology. decision-making, quick competitors year, not about of cycle battery, rapid

not XXXX, conditions given do new you plans in the So, technologies? XXXX, that current the as laid XXXX, frankly, might, opposed make remains sure to be part how organization that that, or right market of agile

of two that. so Well, components

software can buy we've to you bought taking with we're the or product download didn't is speed it we that VIP and the perspective, next out after already rolled and the can of better which it, as really already a going level from which improve then Ultifi, First, make you exist to changes your make vehicle. even you have over-the-air updates when features at

that. have It's and upgradable. many It perspective, think So, well I other you vehicle platform. platform best then an rooted from LTM battery research the mindset LTM We're agnostic. the and organization. for internal will reads working even companies is the look to you getting within better keeps and LTM that of can when software variation the agile doing just we in is with have -- -- And allows the our chemistry quick have remember, chemistry

be I So, went there energy to taking out density. was on we lot give to knowing into work continue plug-and-play a that and was can changing, Ultium work because that agile we and improving of the keep and how cost designed was needed think it chemistry to to going

Okay. Thanks.

Thank you.

with last Houchois Philippe comes from question Our Jefferies.

ahead. may go You

carmakers, financial I've year. you. having actually one good questions, many two But If look in guided is than you better year. lower and compared your earlier Yes, last I first at other last XXXX QX your maybe thank year, to contribution more services this is like afternoon the quick to got housekeeping. QX,

financial easing $X And of of quarter-by-quarter. creates and a market we from just wondering, some I'm You or XXXX? think have should to contribution, similar the earnings maybe your in didn't last have And tightness year Cruise that still as services the you is you. some you of opportunity Thank spike basically year? billion. of we point in the should EBIT we costs as revenue the a other question about at the for think comment guidance commercial in of have any you I about the consider is that Do was, your -- in do the contribution an peers of to much against $X remarks, still that made or billion an launch put service, cost

Dan on So, on question, first line. Berce the the is

to want you do one? Dan, take that So,

Mary. Sure, Yes.

XXXX earned $X year. billion. And our billion $X.X guide is last to pretax we for billion So $X

in a So, tail off earnings. we see do

quarter really year of was and quite will Now because primarily gains lower in volume; the unit slowed Number raising less be the value. will less, book the consider. be But per residual because depreciation, to rest things off-lease first we've strong. one, two of our gains

in prices out go And the But of we go frequency residuals and if gains not Then we as yes, as and factor is we market we're XXXX standpoint those and really higher for in have so today, from credit we're in we slowed normalization go We quite out both the of the taking is we marks depreciation years. value conservative a credit XXXX seeing is get factor even car as that other full maturities, we've So, the our expect been are market terminations used a then to on advantage XXXX do XXXX, rate selling XXXX, side. lower. other on the the as to lease through recovery book XXXX, much. the standpoint. strength.

the $X guide be would $X.X difference factors two $X those for of and to between billion billion yeah, the year. So our billion the

it And Kyle, you I'll specifically any haven't to opportunity, he we as about migration the all I'll done we guidance Kyle offer revenue what to are where to Philippe, wants anything Paul. if the commercial With respect in given relates if Cruise. extent to want. at And terms of and the Cruise haven't it, the talk say is it's question, already you

full now, increased place both only believe, for AV ownership, be the viable But a doing Paul, that AV to of be market, We've expanded Robo the a kind fence customer of expanded early year. XX/X public company We're business of feedback. is We where of is for in we're on short delight this car really sure geo going based fleet, road. size progressing, we're in And well. be down the from personal type in really business. going urban for reminder, XX% being our track operation. fleets we San over foundation this of though, which for customers that members applied the highly Sure, are and the disruptive, would a the said, mean, ride-hailing only the carrying Taxi making to hours operation which for able significant do in only early beginning from of maniacally term permit real XX%, early once. we're the the on I term Mary California our long the have have And focused briefly. the rides, strong revenue with and that businesses, permit, of company one on XX just to Francisco towards right as our our and we're build to as away to generation charge

Kyle. Thanks,

much. you very Thank

for Thank the comments. Barra over call Mary you. to like closing now I'd her turn to

thanks, Well, appreciate really Great. everybody. and and Paul your of questions. Kyle all Dan and I

we three the happened our and or forward, in this we I we incredible frame. when want with with going momentum and VDP. we're – as the we As look together have this we several either have products we made because be execution of with battery over happening move investments years between shortening the shortly to another of conversion plants of that are through are plants put four as And year, Ultium the well time the in now the mode, the reiterate, on now XXXX and announced with last we building to

company solve to long and you, That's with to that's commitment we the our that keep just stakeholders our to that And to and going commitment and have has we're work our do demonstrated that. our executing to going term. I really over value team keep, to toward create investors across EV opportunities. on just think So capitalize going we're keep leadership the goal. a We're challenges working our to

has appreciate And commitment, evening. I so hope I thanks. your everybody and great a

That for you. conference joining. today. concludes you call Thank Thank the for