General Motors (GM) 25 Oct 222022 Q3 Earnings call transcript

Good morning, and welcome to the General Motors Company Third 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.

We’re asking analysts to limit their questions to one and a brief follow-up. [Operator Instructions] As a reminder, this conference is being recorded, Tuesday, October 25, 2022. to President conference of like Kohli, to now Vice GM's Investor would turn over the Ashish I Relations.

the GM's Thank everyone. you, results review We morning, of for financial appreciate you Madison, joining us and third quarter good XXXX. to

this were GM's website. Our are Relations and issued call available morning conference materials on Investor

call broadcasting We are this also webcast. via

President well Q&A Paul and us Cruise. Vice President Executive us is Barra, Mary GM's Financial, of GM today of for the CEO GM's CFO; CEO Jacobson, as as will Joining Dan joining Vogt, Berce, Chair portion and CEO; be call. Kyle and also of the

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

Ashish, morning, call. Thanks, good and and thanks the joining for everyone

team, results strategy ability quarter, our once the demonstrated the multiple managing and executing During while headwinds. GM third again, strong our deliver to growth

EBIT-adjusted value. Ford GMC supply Mach-E the quarter BrightDrop generating brings full billion, strong to maintain levels, strong new are EUV months they sales $XX.X SUV help more lead than nine and selling the segment. The outsold their they in the on of launch. into to leadership record FedEx Merchants Mustang third our And wide performance ramp mid-size translated the and full-size major and September, to to production, Production Fleet. and EV first Cadillac revenue when the and pickups delivery including And our pickup range, Walmart, with and technology to mix unveiled in to Chevrolet also launch year, it earnings thanks X:X. last-mile is keeps We improved And a The Bolt to Chevrolet margin. in first large-scale set plant. and continues very heavy-duty up guidance. customers, Escalade fulfilling for orders is pricing. deliver later making its from will position by year year EV Canada's us track BrightDrop XXXX of our full-size chain another which quarter CAMI our Assembly segment this at begin

Trace he'll last last first month to begun with month, few In minutes. Kroger has launched grocery into up to And the addition, share order Grocery in Cruise update online BrightDrop as Austin speed an a eCart slated shared Kyle help its Phoenix be customer. and and expansion fulfillment,

and and been and I has team, recognize thank our it GM So a really team by everyone, want effort the to suppliers great our dealers.

operating the to This and manufacturing challenging, when quickly environment of to. is teams. While remains true needs and our team supply especially continues where it chain our adjust

the That's we our last call. in During the quarter, and we company XX% unfinished well shipped of the the nearly earnings of we inventory plan held in ahead June. vehicles completed shared at

includes signing As steps Short-term through we're supply in long-term them nodes where resiliency. have we've mature supply several to seen will semiconductors. for but strategic chain, minimize and disruptions most This supply gradual continue taking constrained. happen, moved the the we to concrete including build year, is agreements improvement

has on also We is to ensure this best-selling include first which caused year EV remains forecast platform. sales This business EUV China's strong, of Guang Buick recognize China's they and long-term debut GM are electric MINI and the EV, semiconductor the September their strong building by profitability, of team. are and momentum directly launch the of Wuling the Cadillac the vehicle; in like transparency disruptions volume. to Hong planning suppliers, returned COVID Despite the working market. Ultium and also LYRIQ increase fast-growing includes later our morale the with cycles the I'd ensuring China to lockdowns,

benefit to truck continue industry we products leader. volumes, made EV where the in and portfolio, especially we from our are new grow have manufacturing we investments we ICE capacity, in As

half improvements are these pickup for full-size Denali Ford enhanced with Silverado and HD, XXXX of We'll Chevrolet Chevrolet took the which to HD new first pricing. interiors, continued the and designed high-feature we will XXXX the fact, available since. GMC trailering including trucks, the redesigned leadership XXXX. our technology F-Series and held far-ranging the The from In new in for like models strong press support in advantage Ultimate it to and ever Sierra have ZRX be GMC,

new are and also in Colorados the half which off-road launching offerings. GMC Canyons We premium include all-new first XXXX, will Chevrolet of

significant by accompanied be will launches the reductions in complexity. Importantly,

the to engine X we've our options configurations example, X. to and number reduced we X cab bed focus fastest on turning the also reduced from to of For and from X model,

Going one our a outgoing forward, a we gas Canyons the and two-mile and per on will all X.X-liter the powertrains, be engine torque fuel Silverado gallon solution is The customers and expect and business. by - high output which for and models. turbo offers economy more Sierra's Colorados horsepower than powered to improvement great engine, most new

in EV, base, chain soon Chevrolet vertically to work volume production for of joint more Construction EV with two transitioning the Assembly time, and and as turn EV, plant as Blazer BrightDrop we LYRIQ the at along the and is and Arizpe EV production from At and imported strong our and EV CAMI underway be underway that Equinox starting XXXX EV Let's cells our and also integrating in Ramos in where GMC will cells production This strong and same on and respectively. will well are next GMC Sierra open EV demand, vans. scaling. the will Orion we higher produced Cells in in manufacturing supply cell HUMMER XXXX. using plants Ultium to at To is the meet at help us GMC HUMMER demand for XXXX Assembly meet Silverado Chevrolet ZERO XXXX, growing venture Factory Ultium Ohio. Cadillac

well. progressing are launches XXXX our of All

production EVs in the of XXX,XXX produce over now a America and the of However, plan XXXX of XXXX. XXXX, slower North slightly half than pack is to expected, course due to cell first our and launch we

more learned than annual everything X confidence. in help always greater than we've gated capacity of scale more even us We by will XXXX units million with to and quality, -- are

validate growth and cobalt. beyond is expand adoption. will natural drive secure clean investment strategic Australia tailwind and continue made Queensland direct to investments nickel strategic our we in of domestic EV and tax capacity and Metals supply the energy they example new of to certainly be secure strategy, and US XXXX, a recovery, the to cost-competitive future strong chain The in credits supply our The with recent agreements processing resource For recycling. most we Pacific

This XX,XXX scale about very growth, fully company Chevrolet in to to efficiency platform, but been have XX,XXX As profitability Ultium and position the we EV flexibility, demand EV we Bolt the because EUV. is the production over XXXX planning vehicles year, time. with intentional levels. increased leveraging from to vehicles We're Bolt for includes and record next increase volume at

our loyalty into industry-leading new EV We our Chevrolet Bolt move of EVs, Equinox purchase. the will one customers for like to next use their

Our our better, future good. of believe retain I of than vehicles. year. should that's Bolt our rate next owner even customer customers XXX, at average can we XXX,XXX end are at XXX the that surpass more XX%, EV loyalty them do If Ultium we because base for new and platform EUV EVs

be Edition brand DC market, Sierra charging; and the EV three customer I've is the X, EV, Sierra of they for the strong GMC to to Blazer and X,XXX Silverado the response the miles trucks the towing, HUMMER media first with luxurious a EV of in EV positive. company wave pounds it EV the of a early could LYRIQ, only and in and buyers And EV else the make XXX unveiled platform. to will growing GMC all Ultium Electric.com and unlike makes the customer with range; are the and of MotorTrend trigger the win The EV And anything styling market. distinctive, flexibility EV, XXX-kilowatt for the title the demand fast vehicles the the said, we incredibly EV bold have Equinox the Equinox As of all-electric and Sierra said, thanks it one demand. been just overwhelmingly affordability wrote that everywhere. refinements Denali's EV, be

mention two summer experienced These deliver EV ahead the power as There and this on GM be Hertz addition, next exciting have and can speak customers Huge many developments In driven an never our to five struck of new EV, momentum. how build well have personal with at I'd directly one immersive US well test for far and agreement over as increase and this a our the just years executed and than EVs drivers renting will travel will consideration EVs. and other as XXX,XXX products this as exciting briefly sales to will opportunities for the help dealer. segments to business population a we are, drive like business of the or fall, purchase many and the been that us. see of brands more

the automotive first most we ago. It and most most advanced, its ever essence. one really of Cadillac headline outrolls Rolls and engineered. around is that days advanced revealed made. a luxurious Cadillac But just work have CELESTIQ one the Royce. most important built bespoke we described The the Cadillac the ever vehicles art, is Media as CELESTIQ innovative captured completely has of the technology

Cruise. the is Super The second growth of

the the and its will are customers XX be million even miles it now traveled already interstates highly making very who with numbers globally. year, the satisfied doubled have non-divided recently available and By network highways, next -- more quickly. of Super engaged, valuable of highly growing Cruise end have on more road it miles are customers Our models to to We as technology. than XXX,XXX XX with

advanced to with with autonomous so competitive him invite an are Francisco I'd vehicles. you. systems Kyle to rapid share in with the advantage us, San we update make have in is While team the assistance continues to Cruise like we expanding Super progress Cruise, driver in

goal for XXX,XXX to two Overall, the commercial over driverless miles Francisco in in and in to Mary. the on Thanks, We've of goals San and track expansion members driven remain we well this year, thousands Francisco San driverless and rides September, we public, fully in announced now by markets. commercial our safety operation of this largely begin new a area we given and approach deployment. this largest, which decision-making solid to track believe operation culture, now to and safety, a fastest-growing service record responsible expand our our in up soon. We We've hours of service around successful while is large expect our done EV drives and margin. building especially existence and most robotaxi including the

better all operations. the is across many in in we experience both and we this reviews and time, and rave product delivery adoption receive Our reflected increased ride-hail getting see our

in to and we recall, plan may XXXX, early have. you do As we commercialization XXXX and

to plan ramp we Next through of operations marks where use generate churn year beginning scaling of and our our rapid to up service, waiting the meaningful the revenue. our to backlog phase users start

complete remain vehicles. and will As we scale new and Phoenix, the driverless produce to deliveries ramp for and year. at more our initially rides we on as markets, commercial public first our by This the Austin end of limited up track begin

Our as vehicles. current mapping dozen supervised status testing with is a started that in worked than we've and expected, our more systems Austin

generalize horses, I've As systems in machine situations. to things those of our and adapt of such seen that these able neural that handle predominance all cabs, AV for already system petty had change. EVs San unique finding or to markets, continuously we're the we things so within new police that then use other automatically handful might for scooters and retrain to of markets networks is The hoped, HUMMER mine as to occur cities our be on learning our to Austin, unusual same in will are will in that or technology new is that market, and else of kinds our continuous used however most AV well better Francisco changes donkeys,

for and services companies makes happening separation this you've just the the vested we're the seeing play which with and seen they're missed company's industry, but the good commercial Mary. pulling still to products, partnerships interest anomaly delayed progress that in us and timing the This out people a expanding What's and at pulled that those a is clear best highly you. Cruise you, of and in that an an And the in are virtuous at here scale, the and with suppliers, the fuels not moving trough product are follows of growth happens best also it in company And As of The is targets. accelerating. stuck is great. disillusionment. Thank stunts winners, it. dominated leaders driverless have those talent, between with increased have are talent industry operating best laggards. identifying milestones Back with cycle and ahead to by They and investors. the and what the the

the Thanks, Cruise. work appreciate is at Kyle. the I the update and team all doing

already second before call software-defined margins. X rapid to specifically We the a our I Parks, Ultium plan So it development time was our the to accelerates ICE strategy. innovation, turn revenue to encourage product show Paul, of Mark Day to initiatives our Investor X vehicles, over leveraging all the on Phase of X, through to EV and margin growth join begun Ultifi the into ecosystem has you XXXX. technology based on November want across through and go Katz, proprietary this I crews how phase and scaling Travis XX. our is maintain and in vehicles strong deeper I and Paul the and X flat-wheel rapid growth to will portfolio effect. Doug of Phase to Ultium use of while platforms. drive Phase Reuss, we'll focused you Ultifi And other Phase entire create on

XXXX, progress, expand you to dive include help first how revenue deep our leverage to the you Then of improvement. will vehicle track a and software-defined including will we our in strategy show margin help are Ultifi EV into playing We margin. to half KPIs we

going initiatives. be We exciting call of I'll over also to events and are compelling. Cruise, new share the technology the high-return Super Cruise expansion the you. details With to said, to Both about that and launch other plan Thank Paul. turn Ultra of

the XXXX. good time this and we for billion near the or $X Mary, that at the you, [ph] taking that inflation to to we of you year levels about executing. Thank out set morning, of Thank stressed everyone. but the the in In impact us. join is highlighted record beginning We've business, perform year, achieved

on well the are year, direction, commitments particularly vehicles, spot February. vehicles progress successfully way up to held ability by Mexico, outlined logistical at slowly the than partially more which challenges trend plant remain downtime. proud of the parts team impacted certain without that end we of our to QX. made. I'm way the in environment. in we shipped supply in-transit was working team on three-quarters we along has some the XX% inventory completed nearly we availability the dynamic have the Overall, that were seen, of has built This tirelessly tailwind year-over-year Now Volumes offset our as to from through certain our the XX% chain with recognize with achieving to components and right revenue global extremely and company in issues We the continue of navigate

the record EBIT We to company. on was EBIT-adjusted track As billion $XX.X margins American and and during year we remain a $X cash XX% to diluted result, of quarter $X.X and wholesales for expect billion [indiscernible] QX $X.XX delivered a North of in revenue EBIT-adjusted, for by flow full billion increase XX% XXXX $X.X XX%. $X year-over-year full XX.X% cash continue year. flow adjusted. to We billion EPS generated billion to in the the achieved margins

decision strong cash us continue our longer-term Our informed in authorization our The to returning shareholders. increase our reinstate billion. a the cash confidence Board's and allows repurchase to at in the outlook generation same dividend while future, $X to corporate in time, investing share to August

by as impacted was as substantial growth. costs, positively bought driven up QX EBIT-adjusted of and partially were in quarter volume by America by stock, pricing, During XX margins billion higher trucks delivered completion $X.X of the EBIT XX.X%, that shares. investments of EBIT amount said adjusted the QX which the retiring vehicles quarter, billion commodity and offset primarily we SUVs. components, and primarily $X.X a $X.X certain well we full-size we back billion, of million without of last higher North year-over-year, built

As and at physically days. tight to be below on is production supply demand. with The number continues XX match improves, of to inventory around we're dealer closely and stock levels turns historical vehicles dealer lots appropriately monitoring well

done GM Importantly, turning strong XX included are the days, in Sierra, credit and rates. highest at vehicle portfolio. year-over-year, Overall, projects remain the million demand underlying sheet million, $XXX due well Costs for QX Financial above last with fast strong like quarter development $XXX GM remained about our million, navigate and year. income dealers. year-over-year, the a a over Bolt with very and years arrive due environment. our million in China, EBIT-adjusted partially breakeven, continued continued year-over-year, once to in of up year. EBIT HD Financial's third up third income. is reflecting to SUVs pickups, pricing and the this the full-size reflecting improve GMI, year-over-year year. GM balance These margin volume, to as equity turn earlier delivered which in-transit equity Total tremendous versus costs; the adjusted last up excluding the were last levels team due QX stock, is was production, of portion adjusted offset as Year-to-date was out in favorable to This also QX $XXX with engineering, results strong included the net $XXX metrics recovery and even impacts primarily clearing lengthened year-over-year, the and China to favorable the favorable logistics delivered EBIT up of has driven costs. slightly lower inventory increased the by turning million slightly healthy, to commodity again a have mix leased to combination work production commodity primarily in COVID-related income Pricing expenses; same of EBT dealer and in by team results $XXX logistical volatile down including International strengthen $XXX business. quality of and faster. higher several increased the vehicles, vehicles dynamic quarter [indiscernible] of company credit have absence challenges software that the of adjusted from QX million, and

the quarter, historically initiatives. strong disposition in towards included levels, Corporate net our $XXX million million resulted in when shifted $XXX quarter, below million $XXX year-over-year, to QX modifications share-based in and off by $XXX moderating of levels mix mainly proceeds. expenses remain in accounting exercised driven $XXX cash an million Although has by expense. growth pre-pandemic prime the we also customers. million billion were the to charge-offs expenses which warrants, lockup Corporate approximately the were year-over-year, credit Cruise primarily expired as relating period of gain $X.X in change up Stellantis up awards, in resulting driven compensation

Now let few comments. me forward-looking a provide

the from which inventory mix, to and and claims. in with the low $X track in collaboratively billion around down were around costs midpoint offset raw costs driving of $XX be out wholesale volumes jointly suppliers by to billion a such but QX. see benefit launch-related year-over-year, remaining increase. come prior identify EBIT more $XX.X has and have headwinds. completing continue seasonality headwind at now Earlier supplier to We adjusted, laid closer QX $XX offset of mitigate this consistent EBIT-adjusted the help of in these we're at and estimate to EBIT $X billion other They higher to We're with range are two-thirds beginning billion year. typical been we expectations. logistics our to year, as implies working normalizing the We vehicles commodity to Year-to-date, by $X are efficiencies than this half, to logistics adjusted the billion billion held the costs range. we Slightly company expected at be the materials

pricing earnings hedge commodities we of continue see to As natural between to dynamics the directions, we power XXXX, into the should similar company. the that as move a helping trend in and maintain

agile have concludes growth. In we great support more products, over already this execute hiring on last near-term We importantly, summary, we're to -- approach and proactive pricing. shared then on also in making goals. milestones the discretionary and last continue volatile and at as the costs environment and update XX. spending our years. through of on the And needs progress including couple of continue comments. to we're our limiting But we'll call. move the the to just our opportunity some We've Q&A last see Session taking to we And thoughtful now portion to critical flows, we strong in year. New the for to Investor Day We'll you remain our our quarter, Question-and-Answer cash opening reducing York been demand steps financial said that positions manage November This we'll

Our open. Instructions] [Operator from comes John your question you. John, America. Thank first is line Murphy from of Bank

morning And all detail. for Good the guys. thanks

mean, question we levels. lots around you profitability. one think this. follow-up which at promise about curious, do about I Just trying record governing you're so dealer a sure about pricing. mean, days now, stay how units you that's driving on this just you XXX,XXX state first that very is inventory, staying to right if make to I'll of tight saying and going about XX environment, price how strong think to a I I'm to think support tight maintain we And forward, just supply.

So, Mary, take… I’ll

Yeah. Go ahead, Paul.

for thanks John. Well, that question, Apologies.

looking at grounded closely times, watching we've dealer very as looking So we're this stock. at said, turn very,

there. remain of from we've bit completed, vehicles it's a transit had challenge about, dealers, vehicles or to that challenges even some across logistics our a getting As are facilities waiting some that us, down next we've talked for quarter whether the

inventory they before saying when say them. purchase lot inventory, there and to sit dealers through buyer And are in this that a really to vehicle time demand had. find not opts of already they somebody So is transit. very a it's of list go our their is a out only the long to They and The strong, grounded continue still speak we dealers. many transaction

So watching very this is we're that closely. something

signs watch as at June. a little this. I now the of concern no run. there's a the of partially right built seeing end think complete that the surge we were short But in bit We're we of vehicles

I on quarter, curve, volumes understand well. that time. we X.X were room you curious, ramping a that mean, over goes that just time? If where shifts Mary, cap alleviate that kind all think the That that U tightness. U significant think this just about there does U stuff equal, I'm sort of you two of units. bend? America North cap as XXX%, I is then back as And Is couple quarter, then, in to straight been your call capacity for XX%. doing that you've capacity about up margins, and for in implied cap XXX% normal, And else million recover it a we hard -- of XXX.X%, the said look normal, while and follow-up XXX%, So Okay. it's cap to bend the up, help somewhat third this years period was that normal to cap EBIT more the quarter but would and GM&A add margins see you anything were of XXX%, you of backwards? XX%, to was backward over some of could in XXXX, U? upside last kind right? margins And Is

improvements, that we're Well, for to will on then, now another that, the think instance, from strong environment have and possible. see, sales, well to as operating as I But scale to continue have the the But there's there's work there's think new a that that is, that's couple as We're is. efficient full-size to possible, disciplined. very continuing and GM between I get want We industry, plants with can trucks. battery over And overall, seeing be perspective vehicle disciplined an software to strong ourselves And the think responsive to in be of top serving will battery the think, to margin into what level mix. growth drill beyond, we and learned we efficient quite we be the we've again, years do going and EV. remain to this lot how competitive of the translate John, also an do as the it margins. and right on overall, disciplined say, -- we an in have And drive launch we we of traditional I'll high the move margins. mix, forward company. upside the a Defense, we'll think perspective. customer opportunity Consumers last our then make CarBravo reason sitting we're I BrightDrop think businesses way. and as to can -- as lot have around how a I the more a we make from specific, And into Cruise, also of sure I have say the a in dealers I EV as with

you guys. much, Thank Okay. very

Instructions] Joseph is your [Operator Capital Our next Joseph, line from from comes RBC open. question Spak Markets.

a there. is or timing slight steps that. quality sure the color delay it sounds some the are Thanks making just on so a at much. there? morning extra -- terms Paul, more color in equipment on like or of more bit what's sort going factories causing battery just on Good of everyone. Mary bit the a little sort of that could maybe you of in some give Is coming Maybe a little

had aggressive Sure, build we when to think the one, very started Joe. we Well, a I plan plant. launch

Let's step plant and back there people. recognize size Ohio sure trained over fields, we will is and people XX X,XXX that expertise LGES leverage the and the really a expected. the brings. but we're not working Also, GM together and is effectively first our only with it taken has little all that had longer this facility the of has, what Making employ football LGES, that to working we're than

into a how quality. it's I on seep end of beyond well, But to think in a as they're able EV produce confidence to bit mark going the million and we're China. has ramped up it instead that no little sure that three little thing, and in that XXXX. greater that's taken longer. of units and confidence going from to a one great both taking And X annual everything scale ramp, make be two, the with we're at we've assembly longer to but able are gives our XXX,XXX working the the capacity just in start time. of I similarly longer. we're we're so in bit battery plant have XXXX hitting it little together. And very as pack of to those, And learning, in ability because the And the to there's XXXX, taken US to that confident it's in but I'm me team Also with why

size plant complexity the now. proud at it right they're going, So of I'm where really really it. recognize is and team that of just But and up the first of

somewhat Okay. related, Thanks know maybe the for to And Paul, $XX of I for but at was year. reiterated $X sort billion billion CapEx that.

nine You're that well months. below trending through

some So some any still of incentivized billion you to to any push I also, to for some now? thoughts correct? the policy couple there mean, incentive year I years, on that try the if are the guess, is is And or of $XX with accelerate that still of to policy of because maybe next that is actually of changes, maybe billion that $X right the changes? to rate next

little still billion CapEx at a look going standpoint. forward from historical we're to tend $X billion think for Well, year. And that Joe, that our when it's bit you track this have back-loaded spend think we I rates, $XX I the on to --

when signals our to during repurchase at that spending, be when us. our of that shares we couple means. over cash of at at cetera. expansion, funds within ability But the updates well I we'll at And I EV to some look about where flows, look we've future to when pretty you provide some when keep can, able steep years, acceleration As volumes, obviously, we're our you're us the the think see we look you balance, ability our balanced cash last think had et years, going seen internally you from continue our quarter, Day. generated And you And the to that within at some transformation through in balance the health look confidence Investor our you've also look but business. being aggressive as at the fund to more

very much. Thanks

from is comes next Rod Our Rod, open. from question Wolfe Research. your Lache line

an sourcing the America original content or GM IRA. related you credits Mary. this, of was to critical you sort And on interview North could be any XX% positioned can us I out XX% the curious, the you And mineral for long-term, I'm accretive and were to pre-IRA. that. as of some this give maybe look your to this whether the year? in Wanted to color next manufacturing hoping morning ask you the morning. thoughts overheard and on well first, and have magnitude if Good targets is margin that mid-term say I

be last Sure. Well, to but that to we're maybe rules just think the for believe we waiting very point. it We touch accomplish. positioned. finalized, on we treasury well we And will are think

really covering EV important spur our us So the adoption. with it positions drive portfolio segments strong to to affordability

the number qualification North overall, some very segments look online right feel the it going over high-volume that at in eligible will credit, the or offer toward be credits $X,XXX credit. us, in But life and years And will full of of United starting the think and for for in So, for entries. America now, then XX-year are the be $X,XXX do many models we'll we different ramp broad well be two of We these we a the ranges across you of supply portfolio as in price to the some States. of vehicles to cycle will full the three in the positioned. January, eligible comes if

with a to there's produced cells credit battery of in potentially think modules kilowatt significant opportunity to to also battery hour US. the We the up and per tax respect $XX leverage

positioned this So plants opportunity think, assembly think for our up pack to for the an electrode in get because and year. suppliers we again, of battery we most active US plan aggressive the another see source credit of to opportunity the leverage of XX% battery than of to the materials, cost a January we're starting in next country. better where, that's I then, And do our tax

that's qualify. little range have a we'll bit MSRP just So are color. that in the to vehicles more right Again,

used when will resell And a that from incentives will values. manufacturing incentive car. There's overall, that commercial the think it you again, fleet the support elements in there's we and So at the CarBravo. then EV the support loans. we granted EV look rental purchase have also And BrightDrop

rules but waiting the So that's you drive just of from affordable a Again, MSRPs. for think final see long a drive detail. while lower helping little to go really treasury, I the profitability, bit of hitting can us this our the we're way will EVs some and even

to in-transit moderated. give that the next to that then, constraints any That's mentioned that we a you supply on I mean, the in inventory out? during aggregate this climbing was bit to even characterized additional rates have Paul, Thanks, maybe, prepared XX and have like your XX-day can you would a though Whether since the of have probably recession range. gone how shift lot you us looks as of see is And on helpful. by think And to mentioned color opposed commodity on you it up risk that volume. be color trade-in hedge call, you pricing remarks? you Mary. playing demand values little I inventory, obviously constraints or from hoping, your last

Yes. Thanks, Rod.

think, I a -- it's that's inventory, surprise. increases but some not obviously seen in So, we've

of we think, quarter, the finished I rounding to vehicles during X as the in been hadn't producing clearing rounding June. off both out evidence million and vehicles that wholesaled

working we're think, I So, right that now. through

soon a couple been do as have the I years pent-up of well MSRPs to turn it's demand what there's as about know evidenced last of think, doing. trends. both from that too by conclude as rates We lot anything

all softening today. that's or watching occurred of about any we're conclusions closely, demand So but any any that come haven't I to

well vehicles statistics clamoring look particularly dealer full-size that our trucks in as at GMF, SUVs. get see are and the I think still as the for and as to high demand, you the people

offset? Paul, that -- you you Anything Is on magnitude do any the hedge, you commodity that Thanks. that have of measure steel mentioned? -- you're of concluded just What that negotiations?

I their they've off commodities, Yes, all come across Rod. of keep the when next mean, some mind tailwind obviously, nothing look in you that specific year. today, highs, which benefit will

was to spot couple is last of we've some from in a got as long-term. the multiyear spiking particularly term are some over fine of approach it steel some portfolio We steel the contracts. As relates rate, as remember, on on that benefited steel, where otherwise lag, big would. of years, those next provide tailwind from but see over contracts, won't which you'll some But a is it

as full So guidance specific nothing more give now. detail we'll get year that we but later, XXXX on

Thank you.

Our Itay line next Itay, question open. from is Michaeli from your Citi. comes

question, Maybe follow-up to that and morning results. on Great. Good just last on everybody Thanks. congrats Paul. the

like that that from of can you maybe do -- year. on the launching net it neutral guess, with into sounds commodities, remarks. trucks think pricing, there can or Maybe comment for last also opportunities just year. It prepared intact company I elaborate be, talk Just still next and you're the you as your midsized price HD be there And the might like sounds maybe the see you about trucks hoping opportunities well. next some

Good Yes. morning, Itay.

about while pressure I way to next be very necessarily to just any funded likely more status cause could it but differentiation a different out know was no side. that's it at that going Keep forward. say some the mind billion. $X flat. know change end No the be We in is the just on settle pension hit year, environment headwinds rates accounting. So they didn't We'll going the to some going be do of year north that pension change to funding to changed, as of cash, some rate the work. from that of hasn't the to said going was already I

continued out. So demand at coming and guidance. both all across of That's in them of we're out, rolled launches And more a as obviously, our those this you the stuff we're when forward. see going of lot provide piecemeal, SUVs there's full with HD, new strong light-duty -- that. But we'll why year watching we the to as necessarily all pickups content rich. the We've well. the Vehicles look

to we some customers fast enough. coming So see expect get can't them as demand there

good So there there. we that some is think news out

that to is focused day. be why the which -- of seeing of out on what that. by there, has others be cautious quarter I But continue All even we're in is that are executing do every our the approach. power we're it, every team's we to to think if demonstrates seeing And balanced this ability not

those first what's are on That's Origins Francisco very for the deployment ODD see that Cruise deployed, And follow-up at Origin more next should Mary time? And the that then, we maybe Any helpful. San half? or of second your when Kyle. when and in half a Is update year? targeted Kyle,

want you do take Kyle, to that?

No Sure. problem.

did data one of is Origin started streets driven San to the So the on collection. just Cruise things for we begin being the with, we operating but recently manually of Francisco,

ODD get another production we're with that as that probably look to later And doing milestone that deployment as similar next to for year. volume to but little we we production date a so, initially, closer ramp that's we what for the towards our going vehicle. vehicle, deploy Bolts, the When will we're announce

very Thank That’s Okay. helpful. you.

open. is Our your comes JPMorgan. Brinkman line from Ryan Ryan, question next from

for sizable a tailwind just hedging. prices of with through in it's the XXXX Thanks in lining buy-ins the suppliers realize costs. compensating questions. lag, suggest complicated But a Hi. advance, spot taking commodity me the my ask straight to would year. equation I wanted some deal I to next on end latest

So, to try as labor to tailwind work supply other from costs, maybe done have logistics, and higher might to energy, expect to headwind dimension any such it magnitude costs? you face compare any chain you this or how in non-commodity

I Hey, but we want rates. any guidance logistics, Ryan, about container specific getting to standpoint. commodities, commentary not into again, Obviously, from watching are avoid XXXX that just

moving a are there's changing and around of and that overall, evolving. things lot Just

rates little we'd a through been the because But to freights working we not slowdowns down as we're are We only So economy, if we that normalize in bit. we've commodity would supply expect probably budget. expect come spending, come see spend further, chain that those to expedited premium in freight the less things rates down the could on well. the

Board through I'd plan that, we'll what us And to all it as take that. together through pull XXXX. time ask as So is, soon give let go we for a in you know our

to this to with Okay. those anything compensate just potential supply provide on for can going see forward? you similar with be Ford any a $X didn't payments to release thoughts the approach quickly, environment expect negotiations amidst any might quarter you higher inflation this I'm chain lines. suppliers on able settlements called in premium billion headwind I Thanks. these you're lastly, suppliers out or color versus these more there if and along provide just them a several costs? GM as And on or quarters, settle maybe non-commodity how during then curious your taking impact is progressing to are spread over

Yes, sure.

as as that et won't specific -- remarks, in prepared about been with going the on cetera, on we But comment commodity were that suppliers. any billion we're to pressure of discussions had focused this to the as year-over-year. we prices, as in I well alluded that all obviously, see year. we talking our So, part $X We've of

that that taking of was up meets So world suppliers as as a we the it bucket But new isn't I us. said a a the It's their the is, percentage to and think, little as more to supplier prepared remarks, making made we've well a before Street. of on It basis. than not ours surprise us. with it doing in overall, sure we're meeting the we're commitments to that needs situation, control our working and proactively in way bit

specific from anything We've about highlight It's budgeted was and what And we've guidance our to that, been talk that with speaks to we've there it won't for quality on year. of planned I no there. we seen. side think and So it. the in all able the surprise

you. Great. Thank

is open. Our Sachs. Mark, Mark from Delaney comes from line your next question Goldman

I guess, questions. for good the much thank and morning taking very you

seeing in about mix, that able prepared more is you produce on consumers driving related it backdrop? What think be to is and higher one to first and mix company the are the do broadening on able given mix what pressure Is normalization to beyond spoke mix what the GM macroeconomic to comments. any out to are the end, the some you has supply normalization? that or afford The

without that consumer the fact and SUVs. really we components XX% cleared June. was been towards built of at the vehicles I'd the trucks We from that about had being comment say the full-size those Nothing out talked side. aimed that of the end

it XX% with that So balance. of pool reason about left, to that you'd see some only stands

and it's to consumer than is anything more production due side. it So the full-size really on

Cruise. scaling-out you And guys the Kyle, is on And as updates thanks my on making, is follow-up phase, the entering is you Cruise shared progress all Cruise That's helpful. and for are of on to ramp-up color relative to expect forward to share to that levels accrues order any how investment? investors investment able should more level going the trend current support in Thanks.

we I slightly want higher than I'll we're the Kyle, you to plan. see don't know XXXX say, just if roughly it into mean, I what building levels, comment. and that's

Mark? else, Anything Okay?

Thank you.

question next your from Our Adam, line Adam comes Morgan from Stanley. is Jonas open.

of had follow-up further by the thinking of just I new continue want Is a though into fair kind quarter, it to if a assumption consumption that we on here? Thanks. but X.X, rolling Cruise. billion not cities Mary, two increase slightly, quarterly end Again, dramatically. this quarterly, expansion. just year, that out run rate maybe the cash that confirm, I $X.X from was of

the then for assumption. that's vehicles yes, a fair of think, do as line credit GM Financial. a to we have I from start And scale, we remember,

Mary. Thanks,

Just on a Financial. follow-up GM

you While and still pre-pandemic as pointed really below net charge-offs X.X% slightly, delinquencies, levels. the up out, low at

been further for and for credit your would rises more just Just at with. that curious that figured given time order the But to the margin on an how books. some that What changes environment into still outlook familiar business portfolio the rates it's much you if in Financial. wrong, GM unusual There's prepare portfolio market in making describe how correct are -- I'm of we're you a of you're me order-booked. I performance? has kind impact to in moving

what credit So the on hearing the time from in I'd real you're Thanks. appreciate dealers side.

still Yes, range. Pre-pandemic, quite Berce. Dan losses ran our is point first the this you are Adam, credit our Yes, out, net X.X% in metrics as really strong. Hi. all, of

points. So that they're XX at less basis of than now half

consumers, skewed defined more For several our years and portfolio to running that's as more XXX-plus is FICOs. and now, prime

which stronger buffer, XX% prime. is have period, levels better XX% credit heavily a portfolio balance typically and have profile. new been historically vintages income typically have consumers, related, Prime finance fact, economic in been In recent prime, more a also now been sheet times. It's stronger weaker and car whole our resilient has

your perform better to said last I our substantially levels. pre-pandemic question, quarter, than car portfolio to continues new As

book And ways non-prime and car exception. always, more is showing used to underwriting improve we no always normalization. Our targeted as is our look for now

especially on-the-run contemplate conditions. with That that non-prime in book look book. the reserve from focused, application the as opposed all overall order our to doesn't would weaker normalization that. flow expect through-the-door of a really the said, But standpoint, car most dealer economic being already credit, area we And So levels buyers the be different used some with buyers. now

all. at We haven't difference the seen any really dealer at level

appreciate color. you. that Thank Really

question Emmanuel Deutsche your from Bank. next from Our open. is line Rosner Emmanuel, comes

Thank you, and very much good morning.

a on of over their in the plants are And, you're I battery which cell XX than how follow-up the we'll when you guess, maybe broadly, a months ramp constrained therefore, more of you're so, more delay allocation up? delay And up? the basically ramp-up. ramping models volume some or cells you the to quick First, were prioritize expected? us, Can remind these next, EV please it, see going to bit call use sort in going from

Yes, Emmanuel.

lot flexibility. a we So because really have platform, of the Ultium of

Silverado, already were EVs -- But And we spread they'll strong first have for LYRIQ, Chevrolet from production, and XX,XXX And other year, which be Equinox then HUMMER years out get we production. across in in interest have next of there. as sold into the then are will our which strong have Blazer support So the availables over the Ultium, flowing now we some be model two cells and for coming orders to interest. we and both also really models.

to of those we and spread of each dynamically And those And, across that online steeper we'll in those year, but of ramp. ramp. somewhat the see the based again, allocate a next And going vehicles. them have somewhat just year, make we'll to as them million getting is next will XXXX, on go slight shift by confidence a units a all as because we that's in you're following me as plants and year the gives demand what we plant this acceleration So great coming all into get we'll across XXXX.

a some Thanks then, the for of demand could color. you time, in of on real if the put sort the point China, both Okay. follow-up and trends the finer you're if And possible. seeing US was,

and we've most we're I'll demand. you seeing add of still start, very anything. to I covered then strong if think Paul, I mean, again, want this.

I we think what's specific to strong portfolio. have GM is, a very truck

If you look trucks. light-duty at we refreshed what right we've the have now,

coming early not an out truck. have next but We the have duties midsize only now all-new we also heavy year,

the us a position what offering strong of the I going think have Regardless we're across puts a vehicles. that customer range choice I very and strong environment trucks. in a is, full to from with think of So perspective very those

the small some see strong We incentives. We're from to moderate, at a semiconductor watching very when when has ATPs, challenges against impact. It's usually are overall to say, I'll but continue, we're that. challenges think, and supply still look see balancing still seeing base. at we they how been Even running and, tight hiccup to an carefully long also if you we've going

that continue see And issues, those so but we work as to we're to going improving well.

will we're anything. be. overall, from that product what to offering. know, the are Paul, So a be. still I predictions I think, think big thing manage economic I low And on we're There's want I to where it. through lot of But perspective, demand a if different from at we well strong looking inventory positioned situation is the what you don't add think will

And of still kind against a of of world we that planning for Yes. where in year, that a some said is very publicly industry for an but most just demand we're Mary, below add I'll we've been much year, which given SAAR the look of where to is. kind XXXX, those actually where of supply production-constrained as demand, we're actuals it's XX as constraints. million people have most peg

closely. I it think said Mary true. is very everything We're watching absolutely So

on for year, we don't because but planning proper to to if trending side. get the tightness that's surprised we that lower. We want are some want see next be We

can But the So and putting now. -- going on outperform XXXX, that's that we XXXX. remains hopefully, we're strong expectations demand paper into right

new ones And there? then the and in China

-- do the offering In China, we'll brands very now product. and Those the started well I we're have the LYRIQ, think we are LYRIQ have as important Ultium-based Buick in we that we China. September, in two

we'll think MINI Hong in I the Guang continue strength to EV. see

economic grow opportunity or now, our I real an products the China the company So is how country the think while perspective, But the they And to a we'll we our we have, different coming maintaining does to in for EV of I'm have EV of face, in look strong cost. with doing from us team portfolio the is see an headwinds the perspective. proud volatile what portfolio from really that and situation. of especially and some COVID with light

Great. Thank you.

comes question from line Our open. your is Fargo. from Colin, Langan next Wells Colin

it's know color? feels we mean color is big Great. are pricing? I out is And it strong? a of year-over-year, Thanks should market but a on like rising. Used taking stay just car cautionary. It little there's to an my lot still are for demand highlighted headwinds strong, it And a Has prices expect that lot falling. the Rates know awful question. tailwind. sequentially? Any any of I you I improved there. quite data

to and left, would you really the of being there. levels the which yet, very haven't normal some think sort was pre-sold saying back of with I ticked dealers few inventory demand and sales vehicles are very moved up -- the think are has

of going So industry should we to have move in think the keep for kind demand the you to pricing to is flowing?

over throughout Certainly, I add think The on But of pent-up obviously is forward to of time. they have the and much necessarily Mary, customer focused there, what that our and quality has we're I is those the managing to as resilient. we you question can demand how So, to very anything. really been Colin, which don't comes shot. this think what this specifically a trends, sought. is products I trends take down knowable And speaks year. going I'll think

So piece to I going is don't think that change.

I in normalize. I We see we don't think going forward. think see big production industry could increases the although that, could

industry last on think And hearing how we from over management inventory of some demand pent-up -- depending that. shakes what So have will ourselves affect But that cited in you're out, couple in years. of the I that everyone learned inventory. the

a sort shakeup. assume So it even major not side, if we the we're some as talked softness slight XXXX, I on SAAR in of about seeing as

on following IRA. just And up around the then, it. the Got questions

I think I you the $X,XXX you the can clarification, gate, you I for Just component for part $X,XXX. the and potential get to see, think, XX said, over years, out the full the battery mean get sort seems I just buyers of for that you $X,XXX mean sure to it. be think think of you then retail because wasn't -- challenging at? I sourcing credits? the get is $X,XXX, is possible, if the commercial part there's Is the -- that also the most that to

have getting the ramp $X,XXX. we're for Yes. going qualification next to We think, and we'll to two years, full the in to be $X,XXX, three the up gate, out the of to eligible

from -- the Again, tax battery with car. battery we're think, up very especially credit couple perspective. and hour our there's through as So with commercial kilowatt our it for rental expectations the one with there. the -- are supply important, to I And eligible produced ramp $X,XXX be which to going based positions of cells on takes US. credit in be to consumer years up the that to XX then already well just the us to And The positioned a incentives, fleet complete years, leverage the and then, the made. we've I the mentioned, moves also per BrightDrop, modules well of $XX

use as well opportunities, those as as purchase EV So well. used incentives

treasury of we're a perspective, the and, a are opportunities from again, but does think just few we're positioned rule waiting we frankly, see to well So, most. better those what than for

Great. for question. Thanks my taking

BNP Our is James comes James, from Picariello from Paribas. last open. question your line

everyone. morning, Good Hi.

major you the a to at Yes, quarter. in Obviously, high fourth year if the it sequential curious color would to of and get level, decline a sequential there could relative provide be quarter be the Just very walk $XX third a EBIT just puts billion, the the midpoint great. full midpoint. takes just to any to would strong adjusted

take Paul, do you to want that?

sure. Yes,

the produce, had starts with it we XX% obviously, also really So, we we a -- did were say, but to wholesale, of I would strong out cleared not as only that. able quarter

So bit little it was a front weighted.

June in about XX-XX If of you being those recall back the clearing quarter call, we out. talked

a of we June. sequentially cleared about expect nothing But we're that would different we there's fact I the out talking the bit, wholesale just of off So cut that that about. majority those the vehicles from business little

is in, growth, bias the up there a lower And Okay. XX% based the third the how that? that in to we of or should supply are wholesales and about half on of think that, shaping XX% towards how chains quarter came terms just how on range

on specific that commentary specific though, the is good but of a that generally digest get regular Mary wouldn't team a as XX%. the and basis. environment to the to impacts there short-term -- the want No XX% Yes. on working does more through some highlighted, range, we job logistics I than we improving, And while chip still are

guys. Thanks

Q&A her closing like I'd turn Barra you. comments. Thank Mary for to End call to now over of the

And call. Well, of to thank a have just comments close I the couple you, Madison.

hearing support meeting of team everyone I rapid our strong that commitments results margins. that driving just hope foremost, business the and continued our the entire and and driving EV First is is scaling on focused

than need especially, years, I forward, show do two to and to and do headwinds, think demonstrated to manage times And whenever and even over continue we've resiliency the track. what to past. we'll ability on going have need stronger been agility resiliency we seen the to we stay the we've adjust many last in that that

think transformation confident very and year underway, big next year I'm that's is a for of so I our And us.

the KPIs. Investor November You'll much in strategy, Day hear our at EV about more including the

GM more and you So again, and today, of mode perspective I are, and look you I to a clearly Kyle, Paul, there, questions we our for couldn't be strategy. execution hope many where seeing attend. to Dan forward thank with EV/AV you in And will we from the committed

day. So Have a everyone. you, good thank

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