General Motors (GM) 25 Jul 232023 Q2 Earnings call transcript

Good morning, and welcome to General Motors Company Second Quarter 2023 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, the conference call is being recorded, Tuesday, July 25, 2023.

I would now like to turn the conference over to Ashish Kohli, GM Vice President of Investor Relations.

good and Amanda, you, morning, everybody. Thank you results for appreciate joining XXXX. us financial GM's review we the as We second of quarter

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

We are call this also via webcast. broadcasting

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

on On statements risks make our expectations. that today's materially. in factors our management statements forward-looking our will cause content our include as of filing differ of call, management are will identified These the harbor about our uncertainties risks presentation review actual will could and this These results the language. to statement to by first and be the governed subject call SEC. page the uncertainties Please for the safe

over turn And with that, call to I'm the to delighted Mary.

good Thanks, Ashish, morning, and everyone.

Our around dealers, operating to and GM plan our growth, the trucks thanks our suppliers. strong new continue customer SUVs strong an by incredible to world of our response and team, execution business to and the results demonstrate

in about costs improvement new time. improve IRA over customers recalled EV including that million our our go decision that our we details EBIT made in in we Investor at $X.X traditional serve the charge and provide we're conscious the with The to in ways and delivered margin EV reflects we Together billion more Day benefits We'll LGE during steps charge commercial have Chevrolet and the an November. second agreements adjusted beyond will reduce new remedies, quarter, $XXX for and taking Bolt margins LGES. the

consecutive Our incentive deliveries pricing first commercial point total lead broad-based. calendar year discipline. now almost U.S. the in date. U.S. share we with was total the momentum both strong four and industry share half, to of full fleet in and delivered the our Year-over-year, retail in quarters higher up market have is one We and

led have quality in initial the in now We industry second the a year U.S. row. for

on and strong lower taking are spending. our to cost focused are capital We we additional discipline steps

we the free year full impacts cash guidance bottom flow, EPS this our year. line, second for time so of are and raising All earnings, this the

adjusted $X billion We billion, up $XX range to now be and per year expected in $X Adjusted be share. is $X expect EPS to expected to from in billion guidance. of flow full billion our to the $X.XX to EBIT be $XX of in $X.XX up billion range free $X.X range is of billion now cash now a a automotive earnings to

which high guidance, without our working of is that are we assumes negotiate agreements a The in to to be immediate be billion actions an to now about we billion on billion on prior end $XX expect work taking reductions. We XXXX and having less guidance more efficient spending. $XX are than capital labor stoppage. capital effect successfully This new more spending the in the range, we are also

we Our new new our Last results today. products we're vehicles the our underscore to strong quarter talked in guidance margins. support of strength launching about

retail XX At higher XX% end and the them market, customers. the connecting GMC the models sales. All duty heavy of are of pickup of with now Sierra are Denali

sales models the for mid-sized Premium GMC more account for of pickup. new also Canyon than XX%

growing. expect second Half to to driving to also ZXX high start Trax than are General models, performance our keep that quarter and Boss customers profitable more it's these growth. Motors. XX,XXX the Chevrolet Trax and more a sales. Trail ZRX solidly is off-road the In Colorado, than of off Chevrolet we represent of new fast very the The new the delivered retail we U.S., For half in and

us help a quarter, essentially increase vehicles $X,XXX inventory. with new incentives the per first U.S. deliver and these in flat compared flat of unit more to ATPs than All

ATP have by increase industry We largest in far. the the

The in Korea other the one continue compact now I growth Chevrolet The also is market America. it build segment. to Brazil has the four Montana America to other momentum. first Montana tracks in products the highlighted our is distribution in South of and in months just pickup expanding South last for third and earned quarter We're markets

earned have is deliver the more cost In International the Korea new success are like China team strong higher work year us to and to this adjusted just an the thirds great is market and done unqualified is track in EBIT the excluding GM of in Pricing equity has significantly its two share GM. on in on segment than income. hits it the These Trax XX% customers U.S. in has

goes this have late include the momentum this ahead we XXXX and growing several our In segments America these the that world into Looking Lansing, in Traverse, North production year. It keep launches around Michigan going. which we earlier will month. revealed Chevrolet

In transit the the in increasing. to target produce platform America and XX% the production of more reserve had We've Bolt electric than first June. About Cadillac vehicles Chevrolet North Hummer, achieved in EUV and EV we to XX,XXX were EV but platform, is market, EVs X,XXX dealers half. Ultium our LYRIQ end customer at GMC in the the

utility, year style, for remains from EVs increasing, roughly in EVs XXX,XXX both Platform production or of second Ultium we customers our continue purpose-built is not cell towing. Demand will vehicle vehicles very it there. and continue the strong because production half to for the to of and electric compromise force With and range does the performance, target on grow to

We equipment delivery assembly because that are with have capacity. supplier our issues ramp in constraining struggling unexpected automation been module the has delays experienced

behind as working multiple fronts on as things possible are to this put and us are We quickly improving. already

teams in we times. North increase lines to the address Ramos In supplier second Cells and hill fall plants American have Hummer second CAMI by on meantime work manual also in delivery and more great we example half improve demand beginning this installing with module our with at is and the summer; our capacity site and zero production For added next automation GM EV planning units. pent-up module spring EV to deployed engineering our year. to schedule. manufacturing quality is We've are from assembly we're production the quarter among thousands And LLC ahead Ultium of of Arizpe of to delivering customers, factory

Looking ahead is EV phase our focus. acceleration the into next of coming sharper

critical more we of we example on-shoring. process have sourcing XXXX now materials our half For many need and for with secured target significant direct raw than

facility venture included bring a to an and Louisiana. During this an the in expansion manganese our in quarter, Canada Cathode processing investment to joint new Active Material of sulfate

announcements, quarter. As key provide which strategy with agreements component us off-take significant EV favorable outlined last commercial other these the recent terms, we improvement with of margin and is a

about to relative net 'XX. in we identified This timeframe. costs. we XXXX, XXXX exit will depreciation over the $X same fixed fixed success Now to our new basis in cost amortization, that another fixed action of billion let's the costs announced billion means Due about offset that billion as the be automotive costs and fixed which have a on $X reduction billion plan we to $X will will down talk this year, earlier XXXX we deliver

administrative not have Officer marketing Norm new of the fresh of and Chief Greve, world-class by billion million course travel, marketing sales $X coming reduction to from costs. including stretch. in levels Key significant and on the remainder and a and components a put areas and business, expense about reduced the engineering We're in from separation asked our I another expense, efficiency. include take Mark de review done spending our any of program, deliver us voluntary Marketing $XXX all to

Our product embracing supplier complexity. teams complexity, strategy a are design simplicity we combinations, order and buildable reduce engineering expense, that call winning also with will manufacturing and cost,

greater pallets, are the even For color we applying discipline teams way features trim reuse. our and example, options around our package and and

trim we our ICE XX% customers and This represent fewer are want. and market the maintaining in through marketing, customer features maintaining all smart targeting are engineering, part of XX% U.S. and to segments options. For that XXXX. in segments bundling the EV price in we industry points about features ICE while volumes EV and the coverage Yet in will and for of a simplify levels best results a compete manufacturing, major vehicles, numbers reduction

full-size will will SUVs just be. show powerful how with Our simplicity winning next and pickup generation

We are that to and than vehicles better even and will content significantly customer-facing of expect deliver less margins investing levels have capital much today. higher

great efficient we example a that program Chevrolet Another capital of is next Bolt the plan execute. generation to

satisfaction sales of for Our customers delivering source GM. customers the the It Bolt. than the some also loyalty sales more are Chevrolet, been customer and company highest in scores industry. in and important conquest today's for XX% to of love It's of new record has

which delivers we an vehicle it with affordability, is to and delivering program simplicity the by technology all-new a keep engineering have will expense We and momentum come Ultium expect, technologies applying new what will Ultifi that customers some with lower and to range and by updating Bolt discipline. and more and execute quickly going with our investment winning significantly by great compared capital

to details share soon. more have will We

and to we its taken make to and Kyle profitable. before move has Q&A, Now, you business steps the it to on scale Paul's comments to invite like I'd update important Cruise

you. over Kyle to So,

Mary. Thanks,

market are engineering which continuous solid through driven trajectory extremely a going year is it's of, most growth, halfway We're scaling businesses exponential improvement, set. and and We well. first dream our on product rapid that of by innovation

one, Number we increase number for people Our supply use we the two, Number and the it of this we quite can the availability, simple. awesome. would make increase product is driving vehicles. service some more formula growth three,

numbers. we're doing the So about all get let's how those into and talk on

recently is in. This the a this We but several scale XXX are can AV also and changer which six fleet the thousands the On months. world. to growing AVs, we're for to we transition scale hit on are we times the incredible this you to concurrent AVs. see largest platform, will Yet supply Bolt the fastest of cost is side, which within game in next driverless and write origins, all about believe the

vehicles share that and OEM pleased our mode manufactured being today, confident And paths public has I'm major vehicle running the a despite first time driverless permitting roads this And our on regulatory already in we cities. are traditional in are test controls. in to without multiple a

the significantly reach and As with path we billions company result, a AV well-defined we're only de-risk believe a in revenue. to

availability, area. and On expanding hours we're the item, service second cities, rapidly

of plan San the across the portion significant in a days. to operate city. hours and our now Phoenix, we and Francisco expand recently, geofences Austin entire and XXxX fleet, We've next in XX very expanded significantly As we

next the we've times etcetera, have move following as acquisition, infrastructure, user things city more several to city. several ingredients, shortly critical we All become validation, efficient with we'll after. Lastly, ground mapping, alone, the like six as the done more from three or markets commercial bringing commercial many launch work cities weeks in as XX us two to more prep and service in

third, On from each update. XX,XXX, we alone. And the over making month thousands based potential opportunity on and software reviews revenue of will data demand product several multiple it's love product users growth. in tens it to gets us five-star Francisco better and San People have with years, the awesome, across on gives and the margin head be of clear us exceed this every of for supply now plan cities, that greatly new a a to

Now a rapid on. share additional few I'll points that we data before is scaling. move

retention it service over doing continues going rides Cruise average in the we're service, the rides upwards. just level We're but months. and at is availability extremely per XX two million product XX-day today. importantly, The week, exist growing per a user and of is is turn limitations now faster. hours human nearly despite on XX,XXX last to after million at be and month hitting miles ride-hill even to that matured six XX% the cracked fully three sticky million days more next miles, over the

All also occurring and of safety that down improving costs. scaling is while driving

take look at those. Let's a

complexity. Safety continues to increasing despite improve

shows get million human inattentive the primary much analysis and wider we are experience AV. with next a or similar over drivers, human Our caused the performance AV contributor. than collisions fewer gap human In months. not in XX% was between of miles to words, the fewer XX vast environments, AVs XX% the And AV by drivers expect majority the first of impaired and collisions other

On seeing side, the cost ideal we're trends.

improvements by down the operational XX% gone optimizations automation. infrastructure, month per process by six and led and average months, for Our cost travelled of per mile has last an

origin much most significantly also Our are fixed due training per investments reduces machine as architecture the the better decreasing life, cost, step to we and cost but simulation AV to techniques is will our efficiently, a time over service due see newer improvements in our due having simulation and longer vehicles is launched, mile. learning and to in exciting function cost

development than optimized an have first costs also which chips in of we the will next very We will architecture road, Cruise's It's XX% time origins. on custom stage year. first about the end compute what the before the be sensing hit less that late and expect

fleet As we'll magic the start see actually mile, a over than per rolls most which to our architecture, robots $X to become cheaper costs for this threshold below head people car. at owning

in that's disruptive to highly AV years disruptive Lastly, the on works a already we that have else is highly few fed industry, year. that later this something the more for

So getting together, momentum just in project. is it's incredible risk Cruise started. business There over a progress growing significant months transformational in and QX putting that excited now We're that in to one I'm ahead. longer a We've product it's to TAM. rapidly science in truly continue reasons you doubt, with things the QX, a clear now multi-trillion was made dollar a no but

Mary. to Back you,

and is Thanks, progress the that making just sharing is for Cruise thanks incredible. the team Kyle,

move before UAW, with to our So, which I'd the into Uniform. remarks, we address like kicked with Paul's and negotiations off just

want our ahead success, experienced workforce. manufacturing and There's proud most a we hard have future I importantly, and to First how between am connection and talented say their a our work of and direct great of us. I

we've today, SUVs. trucks, the full-sized like talked continued future investment vehicles, in the mid-sized strategic As and full-sized SUVs, includes ICE about

as Our in includes to the upscaling future company plans existing transform and rapidly also the retooling assembly team EVs. grow we

both success negotiating the our and fair business. We with unions of a employees long-term long have history our reward support that of contracts

Our time our constructive to suppliers, That's look investors, best of will for different. no this possible employees, all we and plant the communities, goal be dealers, outcome and forward talks.

call turn Paul. thank to So, you the let me now and over

collaboration Mary, morning, consistently exceeding by good quarter and start everyone. thanking their for yet another you, of on targets. results, team Thank Thank meeting for the delivering like joining you I'd our to financial strong and or us.

growing of results share adjusted At the and the the with four spend. growth retail auto-operating investments business incentive including QX, stable core same continues quarters performance charge our with the of consecutive from fuel $XXX agreements. growth, are time, we and $X.X U.S. billion, fund in year-over-year the even million The drive to business, to LG

are a by with guidance generated robust including LG EBIT-adjusted a basis from those a successfully also and a Aided the cost time and management. this product We products, for agreements. proactive consumer portfolio, headwind margins, XXX demand, by point we X.X% supply strong driven great raising second balancing year,

We on commitments, have achieve made to foundation. bold and solid a them, focusing we are

way fixed As our Mary to well mentioned, billion are the achieving we reduction. $X cost along automotive

making, also We our portfolios. EV investments significant depreciation are and have offset announcing been billion to cost fixed higher from manufacturing amortization another the and and we reduction ICE $X

ICE have product cost and EVs. This products the expands to incremental benefits pension the fixed future to non-operating the come, expected of the being lower to refresh as the with impact income, only plan in automotive a item. non-cash we The initiatives excluded years are simplification transition

taking also our approach to initiatives. are a growth capital-efficient We

a selectively strategy investments. Europe, for re-entering to Tesla, much announced with towards have incremental charging recently a access and we the profitability-driven we collaboration double customers our example, For without

the along this year. Community, savings spend, in a with second of year-over-year will with us about the these reduction a in overhead half headcount, $X of in and in factors, costs, benefit most cost realizing billion result fixed of coming XXXX, marketing

chain Getting Wholesale XX% and improvements up volumes into billion year-to-date. the by up were QX QX and results, XX% year-over-year year-over-year revenue pricing. in was driven $XX.X XX% supply stable

X% range. in diluted year margins billion EBIT end adjusted, For anticipate the adjusted. achieved We to now $X.XX adjusted of the high guidance X.X% in EBIT towards XX% EPS and full our we being $X.X

performance. driven had $XXX improvements more operating target, we up strong XXXX, year-over-year GM QX lower but ROIC million chain of company combined Total improving income were and also lower $X.X by billion agreements, financial our pension core XX% above versus was a LG supply demonstrating earnings. headwinds importantly, the and results from consistently

billion supply up $X.X cash earnings and conditions higher billion by flow driven auto-free year-over-year, Adjusted was year-over-year. chain $X.X improved

million we stock to retiring During and retired. total another shares bringing XX $XXX million million shares XXXX million repurchased the quarter, $XX $XXX the

cash allocation our of sheet forward. expect flow as share moving framework continued support balance strong part We capital our to repurchases and

up related ATPs seen and by impacted QX portfolio strength to year-over-year was share charge, warranty which of North again the two adjusted EBIT basis stable higher LG area costs, incentives. a $XXX closely. million million market agreement of of an billion EBIT delivered of segment. the growth, $XXX and the X.X%. quarters adjusted XXX We've we're headwind America was monitoring very in margin performance point America The consecutive product of supported margins $X.X higher North

the vehicles expenses ratings, incremental recall. factors ARC our strong have increased repair vehicles The to the of fundamental with seen quality inflator by also inflationary remain the airbag recent Power however we've cost evidenced as JD associated and

U.S. all from Total of on quarter at Chevy in-demand Bolt. our and and Inventory our trucks, end, XX flat new continue full Colorado was the SUVs, inventory new at XXX,XXX days, dealer run size Trailblazer units essentially last vehicles mid-size Canyon quarter. including and the Chevrolet to around dealer most the lots

chain trending targeting deliveries We wide are XXXX XX take there however end out in continue ongoing dealer actions timing to railcar to direction, take that logistics from are of this with inventory, time. we production us challenges industry and the right mitigate. schedules logistics are range to XX still capacity time congestion seasonality, to of although days days Supply fleet to shortages may of and and total

to team actions through year for million the income years aggressively up in I'd adjusted year-over-year challenging thank lapped $XXX QX multiple shutdowns million in a $XXX perseverance challenge. EBIT largely and offset environment. of equity their industry of million, the QX like as help XXXX China efforts $XXX tireless took delivered to COVID we over international and flat was GM year. China

GM EBIT the excluding results headwinds product $XXX mark-to-market would the $XXX FX the to recorded due down been adjusted year-over-year, items, the up the offsetting from gains a in income portfolio, increases LG with in driven these year. and than agreements million a we $XXX million million price million, year. to have second equity strength was in of of International more of year-over-year by half expect continue charge Absent prior $XXX China the the trend

of to to finance primarily and increased by income Financial leased $XXX million down higher with close expectations GM offset higher income, a EBT cost charge delivered of vehicle year-over-year due portfolio yield. in and million adjusted partially line from lower over $XXX and effective net a funds growth

metrics, key providing Financial's across GM support to the the economic and cycles. our balance and them remain strong sheet liquidity customers GM ability enterprise

our were As year taking in to in to $XXX due expenses quarter to billion year-over-year million full the year-over-year, $XXX adjusted a primarily guidance up range. portfolio. we are down $X.X Corporate EBT billion mark-to-market differences result, the $X the changes in million

in quarter, spend million million operating successfully. Cruise $XX up to driven the as they expenses by $XXX were an in continue increase operations year-over-year, expand

in the free in from to main the flow behind remain unchanged foreshadowed. $X outlook Most and we increased underlying performance billion $XX year the outlook, the due range assumptions look stronger billion range. $XX and automotive in core As our EPS with to $X again are QX full adjusted our we pricing, range, QX, to billion cash we as to EBIT-adjusted $X.XX of guidance $X.XX to the strong increasing driver forward, to adjusted billion the diluted guidance the

for $XX part to simplification In initiatives. in to neutral of $XX the full in We're XXXX $X range down bringing expect the our year. high to capital billion be billion billion commodities end guidance by better logistics costs to the addition, we due and year our this cost spend performance

in the the medium-term evaluating capital are year, from Investor our provide Day outlook to to $XX and spend update but later the billion expect an previous billion spend down we'll $XX at the come We range. on

the cells. But adjusted the automotive free assembly short-term lower to to module -- timing year from Mary of EBIT increases. challenges working we module benefit offset higher expect flow full guidance, revenue unwind For capacity expected cash adjusted headwinds capital assembly this the impact more result mentioned is as related

our well focusing profitability, We're sacrificing long-term on results very targets achieving remain as the for highlighted. for demonstrate our recent we positioned future we've and closing, medium not volume. our and In are and margin

decade. to our vehicle, us fundamentally half And making this this and We AV margin with the the decisions will stronger to in including you the factor sets we're strategy a revenue expected helping other the to company as businesses, when today, back up drive growth, new opportunities beyond software-defined the XXXX. we grow continue get from of

concludes our the now we'll the move portion Q&A This comments, of call. and to opening

of [Operator question Instructions] Research. Lache Wolfe first line comes with the Our Rod from

You may go ahead.

was broader a numbers. to hoping ask about these on maybe you question Congratulations EVs. I for

bit of your markets obviously, in when You with any on your What EV competitive update aggressive costs any have hoping put on cases hands made on more for And how manufacturing you some costs. assumptions you change us your different laid thoughts innovations you mid-decade thinking to And we're profitability. can also that? for And the I'm seeing of some pricing. with are and a EV your some to out led evolved pricing latest that plans? just just based your observations manufacturers drive down little

that Rod, the a I we're would say question. in lot space. Thanks, for doing

XXXX all there. for -- the remains we're things moving we in Our it Investor EV with gets unchanged. by mid-single-digit margins that, committed at to said portfolio getting that to Even year Day, our low what last are

of look going as the part think well out incredible better I think And at consumer when . actually make take cost now of discipline we're as every right be to with business more It's demonstrating cost winning perspective. efficient. and from you that everything just the simplicity. a we

to manufacturing relates there's it As quite costs, bit of a specifically work.

having drive efficiency, we've take team cost to battery now an course, by body in how a what And running. from with special we how that looking out perspective especially We we the is working is shop. at do on have LTM of up team learned the continue that do and

Paul, until and of still a to we're levers and stop we We don't to lot areas know, we're get there to have not think on. we pull. I industry-leading have want several margins, I working are if there So add you to anything. going intend

you covered I No, think it.

one we've the ramping call for asked that on things our pent-up strategy. as look at you we've up this pricing been think, of I demand demand. is we frequently about vehicles And have when production, and we Rod, the asked -- we're have still

from in I there consistent think lot orders. People some with as And producing. the that a we are with think EV of vehicles from out the ground that production, to did purpose-built road. see on demand continue we that which to I up, comes products strong identified more impress hanging for a of ramp I challenges we think get going we're And we is as the people the

Okay. on that. And follow-up just a

pricing. you're it mid-decade Just like for your not changing sounds expectations

million whether actions? wanted Just can and a or competitive LG maybe cost, And that elaborate whether actually made lower cost changes on $XXX to on but this growth charge? launch that else? was that wasn't or And means you've one-timer observations it then that just a was alluded what on clarify any based clear to something little bit been capacity secondly, there's you you

of products. So to the years I all, in things in one XX watch with from line in expects and first vehicles the course, incentives see the now with I think demonstrated think be customer for the be original what they're we're we're that was with -- plan, disciplined to very the going on going to you what's our marketplace. going going we we're But I think when and of to pricing we value look going on the at it very is for of announced our almost pricing when

so we're that. And seeing far

So LYRIQ, is feedback they're getting pent The owners a of demand. we believe the for right. have have instance, LYRIQ anecdotally from delighted vehicle. just the lot we we we're priced up Again with new vehicles

the So think got we've I pricing right. strategy

to course, profitability changing there's have going all we're our watch mid or levers -- not to We'll EV guidance. our get either XXXX the even challenges if Of that it stronger. pull we're make there And it. we

committed business, to And this there. a continues know think Rod, So to get say. we're they dynamic team I do again, able it's to we be leadership what but

the million, think As a to were was $XXX that recall goes but for chunk our of, beyond it many would back I doing to a of at thing expense that the happy to care that thing I perspective. our us customers can't it wanted by Actually, what enough we still right chose because take a as issues supplier right we we would be customers as the a relates to say look traditional we the there evidenced from the Bolts now. are timing And build strong. do right

we'll specifically Cells, what it we to -- what November. and EV to ES to everything LG have get with and take Ultium for and when continue margins the our our we So the about been more again, we share means are thought work partner, But thing was cost right to do, will out of of the

comes with question Itay Michaeli Citi. next from Our

results. the on congrats And

ramp. ask to Ultium questions couple a on of the wanted Just

First, the next talk the Can are volume targeting you you for still what first to be half fully $XXX,XXX the cumulative about automation equipment of that you the modules. when with issue resolved? expect identified year? of the by And you

any the a targets you're of out, year. not first them leading going half more in put to lot half from away And of half what this middle to is XXX,XXX it's whether in and . by second year XXX,XXX product. in of see year next we're next crank so Ultium-based up the we the of walking of really we then year, second this the Yes,

delivery they had. they for were on the better track we We thought were supplier, the in that surprised

continue say, our from last So going we're I'll seen have up the in four and seen the on them to lot to to we of automation help get teams improvement running. a that weeks, path. six We've already

of it, half we to the want we don't to And derisk also our module year XXX,XXX. we we're anyway the launch because second we have in to into next. lines that coming production the grow products of to going this we've gate continue continuing that beyond capability know added and But all assembly as additional need module

personally been lines. reviewing So disappointing, I've the

running. in I've know, ME earlier career you spent my As time in

very I'm us. have in of confident behind this get teams place. we'll So we the

as beginning us of into primarily third So the and it of by end through think of then end sooner. behind you'll improve year, get the be see so say, would fourth quarter, will it quarter, the I or month we a not I if

then been a very rising demand. all a broadly That's U.S. -- Terrific. EV on on just There's helpful. lot inventory. of follow-up focus And on

you So thinking EV how about just you competitor. slot you're just also given And recent action how as the orders curious from pricing Ultium products. the up your reservation Silverado ramp

Yes.

the work overall range, from the recent think performance. a Silverado truck, I true the So It's the telling action, truck. competitive look at capability, if you the

people compromises when to make or So trade-offs. aren't having

very for we and -- Silverado truck demand a the end the I'm perspective from the So work the have which well be as of RST, out will year. strong retail as toward confident, that's

So where pricing confident first with Silverado for the are -- EV. very And in that's the we your question, I'm was... Itay,

-- seeing months. what on demand, and products few you probably EV Just how just reservations in your you're the of seeing next what confident kind you're are for in

waiting got to the sold, a Yes. and SUV, list seeing the with not lots. I dealers' Frankly, truck the -- And Again, they're mean these they've seeing vehicles HUMMER the Bolt, people getting we're who already are LYRIQ, for we're them. with of are if

churn to for in still a and who And more The several for have So they're line. wait down. customer low. very, is who waiting on and there of decides put vehicle, people not the lot rare deposits reservations that we are -- the going very

efficiency we it's we that's have EVs. we criticism there's to very some We're wanted have were consumers again, been So to a can, us to we weren't faster should platform give we our accident. with because that we're sure and going been with fast as -- going going compromise. Ultium that to as by but leveraging It's not confident. make And

we confident the and very I'm the pricing with the So product portfolio coming, demand. have

comes next from Our Goldman question Mark with Sachs. Delaney

GM are and as mix borrowing costs had for for strong in inventory and the the even supply pricing higher. gradually are second and consumers again recovering quarter industry

performance some strong the the in the been GM you second talk of that You And you've expect levers there are to any in automotive sustain the for in half environment market . how particular seeing? to order year? of about to core help evolve

from somewhat it's increases or of Mark, kind We're prices for major Paul. average question. We're going of year. the cautiously pricing not forward. as said transaction assuming beginning operating Thanks in the the in we still

We've we that on. expect little that the XX- to we pretty really that consistent. with We've to we're for So working of to it our inventory to to grown get that range it a starts tried demand continue, vehicles. keep lower see and bit end XX-day the it

maintaining as well. overall, incentive side the on But discipline

focused So share on we've margin been really driving with performance.

team the good done job. has a think I

by our we're day long continue, it As And that is to we very perform. of to the for with think as we're to strong be vehicles, But by month demand whether kind as results. taking we we're it month. continuing as pleased continue as day, will see to going

could safety to has human on Cruise all driver. measuring you're on and you any And are safer as that that a vehicles features on vehicles to out that XX%. hear helpful. updates I And on the good bit Maybe being how forward? Cruise perhaps with of drivers making. mentioned you relates That's elaborate specific point the by as the Cruise its additional the origin a Cruise to is recall there it going the improvement of AVs safety of progress can you relative

happy sure. Yes, be to. I'd

way And research that matched of a by then drive. we human millions it XX-some-percent with measure the the kind subset collision. that So to looked we miles that million on all was clarify driving those in was of transportation fleet and reduction first EV at we as the of that miles based compare Cruise and number a to drivers that institute. across X miles established any human of a benchmark selected And the driving of leading

as So comparison. to possible apples-to-apples close it, as

collisions. XX-some collision got the of primary includes things really driver. look by beyond rare that, the AV. the the reduction story tell doesn't the But collisions really whole percent AV contributor, not and just because was That's sitting When was still XX% fewer where at AV fault you that where ended

it's the primary collision the that's of we've seen. towards the other that most any vehicle So time, contributor

AV And the just of is of collisions, the really injuries. fewer fender meaningful of then benders. with proud one low-speed I guess it another not severe collisions XX% These is more we're risk types are

exists specific which And update it tell this targets in emphasize month, a these story. the today, I is each new software that improvements. compelling very all product we this kinds would as push of aggregate -- is still So and safety a out

So how question to early humans. relative on on, there I do think was a AVs the

in rapid shows of think up I And as that and machine data the improving our to there's data, product. clip invest improvements. I we're the least it's going other to already continue from this safety technologies at we learning continue to drive ways of at strong evidence think a safety significant

America. with question Bank John next Murphy of Our from comes

I optimist just like you'll on and listen, listen, variable up variable capacity, in mean bring compression going add America. you're see recover. risk question wanted in A costs just out you're we a costs to often But need with volume, can I the of as will you viewed. all to might fixed running And to say, hold cap as skeptic coming on staff costs. down, hey, do more margin. and you say, might that's XXX.X pricing North an on and real pricing volumes ask bring

and where curious seem some you pricing I might because there if real does you some holds just it but actually upside time. up be sort margins costs, in think on to in real that of these I'm just opportunity there's the range significant are . bring variable like spectrum, over

Yes.

remaining months. despite the lot for certainly, first seeing what's a six part you're strapped working pretty growth for in flat utilization, that us in-transit of that And bucket. still the of much been higher inventory with So inventory has that capacity inventory or been

very and the that to and to them incentive us pricing the performance. dealers, way turning their sure consistent we into got continue still we've make very, making to that's are quickly, vehicles lean see As allowed

outperformance several And months I a last space industry GM the from seen whole. you've the over think some in compared to that as

we've cut the inventory kept we in to willingness supply flat strong. demand a utilization that balance margins where with to intentionally make as quarter, we the flat margins sure think shown sorry, and of some capacity I we did first So or kept --

going provided it going way. that. benefits seen, to manage so for that we're to But continue to to watch and far, continue as tremendous it's us we've we're So

costs that flex were cost with that to variable But that step-up it a there come on if with. fixed be need would you would up mostly buying volume, of would be along would come in? to Or some

be But it's trucks, Yes, et on utilized, for variable being mostly cetera. SUVs, the the it higher the company demand we've now, higher when costs. full-size end levels is the at the would with you think seen trim that about where

be in do you've you're across some smaller on got where linear lower-priced able if it a So we not the might vehicles to way. increasing production mix some board. of the

try we as So as watch can. we balance maintain to much and that

Okay.

Just And little the . When durable a potentially you is fleet in that is demand that pent-up even a carry and a has were Fleet the for on how that. been we follow-up the of resilience face economy the and bit of economy? if the little a rates see about guy in to just think industry. might massive risk and good bit you real on there patch day a some soft durability of the higher the even fleet. here,

Yes.

years due challenges the of challenges. COVID brunt of pent-up last captured you lot well, to capacity semiconductor the due where of think the John. it took from a demand some few got to Obviously, the fleet I and we've

first In of largely XXXX, the fleet fueled side by since year, at half fact, if you look the the year-to-date, it of performance best the business. was the commercial

fleet different past, effort the said volume. was before, to margins And drive in where very, as thin an was is than the very it very it business in we've

the Our performing margins with similar fleet very business to is side. very, well retail

job, for short perform, doing a medium to expect So the team and term. business and that we to is continues great the continue the

LG it's the Because you if that to charge billion $X.X was trying for in raise just before? actually guidance? raise is sorry, I'm one your if wasn't, were more it contemplated just housekeeping like outlook. -- question. issue, in the a initial today the XXX contemplating I'm The understand that

wasn't It's contemplated the raise guidance itself. we into contemplated It as came a year.

Okay.

It's is billion fair. today. So you than were Is significant operating the actually on to raise basis if that that back $X out. more

the back long said, the out we well. certainly we surpass business up we as held the and well continues to to Like quarter as going said see that you've July Yes. what can as held in second guidance what quarter month-to-date to put expected first able strong, very be up consumer the we we'd and perform that we through seen has the and what

with comes Our from Morgan next question Adam Jonas Stanley.

Bolt. new So a question the on

said technology. prepared you in and it be with will think Ultifi your updated remarks, I Ultium

just this here, are know, Ultium pedantic is I be ground-up Ultium? but want to full you attributes of Sorry using platform? Or a to

-- the comes Ultium-based product. will when will version out, it we an incorporate So new it's say

and about as that costs today's definitely technology So are going leveraging to get really we to from We Ultium. Bolt help Gen we started X battery is us launch. that's reduction down. saw our Remember, a because XX% second-generation technology to

going to really vehicle. profitability that's drive So of that help the

a Ultifi, will the perspective that have vehicle, we've with well. software-defined then from done that it work as And latest from

the into And a Bolt capital-efficient the this affordable getting vehicle to is response to way strong quick So out build. the marketplace. and very consumer have we

to super I'm something look frankly, experience, team continue before. the about as we look we've capital excited a it. gotten look for But drive took we as efficiency, is ways and to So this more

Okay.

of of non-Ultium Or potential you could the consumer? platform needs another China? going for wondering, for it's I'm are announced to strategy use EV just to SAIC's possibly, Since and specific Audi of the if some could also is adapt technology. the biggest EV open kind platform Chinese to China Ultium next-gen SAIC GM there address follow-up. using partner. Like even Chinese only your consider a Just platform you EV elsewhere. use is a JV SAIC's

Yes, question. Adam. Great

more much is platform Ultium the think efficient. I

look their the sure a to cost and that make think to in EV take costs market we're joint going I perspective. as always to at of party, partner that well. to already We're the what they've an platform that wasn't out from But dedicated we we're competitive bring competitive course, indicated can of from Ultium. perspective look continuing venture

the are the case, open considering going to this Chinese way whatever have to that's of, always no to vehicle we So is most and compromises meet consumer. a cost-effective performance in the have

Barclays. with Levy from comes Dan question next Our

review. which on the I 'XX is $XX the just to for ask 'XX, about to wanted First, noted you commentary $XX CapEx, billion under billion

the of manufacturing the at a you're us for give XXXX. sense trimmed you CapEx You just can Maybe how build-out. looking

Is a simplification differently that initiatives. I perhaps something the looking think little in a just Or was you of incremental? market at demand. some that that noted was that terms there's byproduct

way I guess that's demand in slowdown that you're you the to on simplification. wondering spending? else that purely little slow with causing something down bit market a the Or the just there is side the we're is manufacturing spend just

I the As both sure we there as making was EV we'll no segments, us ICE more and be really that market-driven and ways slowdown, portfolio to do looked -- absolute had the XXXX, and going XX% we're but for And efficiently. right by covering of was mentioned, this entries. looking we found to

do it and in reduction. vendor the you you complexity in done plant. But the that's a vehicle, Bolt The and then gone there we've vehicle by of past, capital I a an the we with the Ultium think leveraging the in design of you instead don't And have tooling example, drive doing the simplicity, in benefits having winning already really if good and platform. is as capital all-new lot the

is to working leading this the of of with last take we've capital perspective ways months. and as the manufacturing cost there's Mark teams. been something frankly, Reuss And from is several manufacturing marketing a on lot and And initiative out we well. this finding, for are a

it's significant. pretty So

see it. capital, of side. But the just I made to about You'll rid about vendor on comment getting less hear tooling trims the more especially correlates and directly that spending

may associated then just lot think question the with the product, question, expense Ultium be level of there's as unknowns with to of we should really, on How Bolt. pegs you accrue to is there how And product. warranty on a about much I these need as follow-up, conservatism pass mean, charge an new products, new I a this added a -- the think a and type to of the the need this -- more on wanted the the ramping? is And I

expense clearly initial on on vehicles there early far the wondering going -- was you that just you've clear have that be But greater your warranty will forward data you than that quality about how some to the is just on Bolt, new evolved need shows . the Or which think architectures.

was Yes. several the this time, been go the I occurred good defects now specific market was would ES the that if in process. caused issue back, LG have years performance. say manufacturing and warranty actually same two Bolt in Remember, very for at Bolt's the the on you had that

from them. following -- were what traceability we're the team of and there the doing hand-in-hand a with worked if that plants the We cell quality our and process error look fact that the have We at exactly what understand proofing issue, we're at the you wouldn't the When do we Ultium whole perspective happened. an to amount population. and have

All of that's been put in place.

So I think learnt. all those lessons

very would and strong across Motors Ultium that seeing, General these using good to when board. I or got systems we're we're on quality strong vehicles manufacturing again, warranty we're look performance, I because, you at from going see perspective we've already and say, an processes performance what think Then the what warranty confident

module and we quality measured that to struggling going things of necessarily our appropriate a checked processes using when have error and have when it's quality. we a know and have we cell, have we checks the for when So to think proofing to that's a is I that pack, issue. up think modules, not a the quality with we're the don't I drive new, suppliers start some because it's Again, with

Our next Evercore. Chris question from with McNally comes

quickly And to $XX room. just autonomous elephant question the back the in go quick I a billion wanted for tech to Kyle.

XXxX service sort city, it of X,XXX disruptive consumer you would to to of AVs the a the how for do broad then side. quarter, it the similar have favor, in will just to there's just Francisco internal but do industry's testing have I origin? with just And San the like the policy San Can sense goes Francisco curious X,XXX know San Francisco rides, sort when the consumer under city you in to Uber. blanketing on many that take a blanket happen where Assuming rollout So you're update a

Yes, good question.

that employees. so service right side, our is Francisco and significant a San the of portion fleet earlier, to is said on XXxX, So now, as operating open I

that employees. the to are are give good. public. we far we're from service opening Things But specific basically, not I that general operating dates. to So pretty up can't looking

So pretty soon. that is coming

city, And on goal up it's of in capacity. ramp I got is, make transitioning what And city to of vehicles. San a the We've absorb just that as said I are new those reasons to as a take think make to sure variety mobility. up blanket a is would calls it for previous form to ramp it to acclimates our sure practical Francisco, there as like manufacturing markets to we gradually

Francisco, sort sort XX,XXX day intention like all potentially how and our drivers a So That's count of city. vehicles much course, it's single you San working human Those on in There's a depending more not robotaxi than aren't drivers, our of it. a to hill over of them that, could. into ride XX perspective. just direct hours

city revenue minimum. city So it Francisco. at San to does capacity not like certainly, make a very high to number there's generate per several significant But in absorb a thousand

on capital And type before have question appreciate about you'd sort internal comes looks to funding funding. like consider funding a quarters X-plus high-level of Just Cruise? versus just it. Much thoughts to external on environment. any given for then there's the whoever Mary, the strategy it

in our see and cash are . the can best fund certainly right really expansion, look that to we what's comment don't We flow now. I have anything the interest shareholders. of to generating Cruise's free we'll

RBC. next Our Tom Narayan question from comes with

on Mary, from we you and of view planning potentially how Ultra to license autonomy are and FSD maybe how a they a -- question product. what Tesla one In heard light Cruise. philosophical an

Ultra center? plus the do a kind that of how profit curious enhancer. see for How X view would revenue Just you Or just you Cruise, you? to be a product Level product

Level about and we and forward. in product have to have when and plus as fall. And Super more Day we this continue with we'll very move pleased Investor we're as we see what with the to Cruise, enhance definitely revenue-generating to profit-generating We X get going share to the

Okay. a follow-up And as on Cruise.

a the strong on safety case, obviously, features. You made

a happening case see Is it regulatory a likely now the it you that was federal there than more Is arguing benefits? some mean, perhaps safety on is level, give And a kind of greater obstacles? now? on Just wondering of now maybe you're if perspective, like a all you're on that these are how I what could maybe that appeal kind you color before? stronger seeing

as think and several talking We're of now. but we've with the for the grow miles, not to continue I arguing first regulators. information, years we the doing to in which sharing been regulators we're all,

how And share did Kyle so safe understand we're continuing they what referred measuring with the what outside to with with groups information. we to and

what Department with for improve looking the of road and very it's think safety. I to goal us NYCTA aligned is Transportation

we're that optimistic where we're dialogue, to we're course, going of continue information, headed. share of the . So very and

question from Ryan with Brinkman last Our comes JPMorgan.

$X.X XQ from $XX to like equity Okay. looks income ago XQ, down I sort the be, billion, it know, a required, China share Great. from rounding in profitability billion similar of billion to restore to perspective? quarterly It to do year like $X.X China of don't sales was pre-pandemic. or think and you What to course, you where is a would or a

should like that in EVs, Is high-end traction seems think brands the really It we higher Wuling you've market? electrifying think strategy about your in your How for the do in for to profits such great that brand. as got for catalyst market lower-priced you that China?

already performance having clear go especially. Well, and are definitely, EVs we the and right for portfolio have as of to we winning strong forward ICE Cadillac is Buick there products

make XXX even right the needs. continuing of new vehicles those fact let's remember, efficient single-digit also in and a in have we're high -- lot to share entries. we there's EV launched right But in right customer so -- being And sure now, to they're now the we're that work market meeting all with market place now, the

EVs now where got ago at review to was and over we've price there right have I maybe spent and So guess, technology. a understanding months full our the of right is. competition right the did product the obviously with the line I time two

sell the that them there coming. got our got right to We've done. get products team and now to engage we've out think go I

by what between previously then And actions? just the for rejiggering being Is the for charge it GM agreement was like the on differently LG Bolt communicated? consumer maybe the previously charge. more Great. driven Or done the more versus lastly of announced cost-sharing Okay. and something of a is

longer. with a and announced a it's of some ES for what up you the then battery full we diagnostic time LG -- go battery time charge vehicle team that reduction the of Well, That over recall look period portion a then with going a the to to it, you of charge. took to back the the XX% as little take, come that can working from took indicates obviously, to the

we as of care so to to And maybe that, faster what battery we the did we we would make were needing taking have sure consumers, the wanted replacing do. up packs ended than

sure customer, And they again, we to a have we going and stand behind make very because attention wanted having it. strong just to we're understood them Bolt to that

well we looked And costs took the issue we So right us, right I as we that actions. fell. the was looked into we what from were at at that, where think behind we were as where having

said, So of us. strategic continue we together individually a LG work just our to improve position. partner right a lot that we're is like to cost the And very and doing were doing there's I thing. to

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

much, questions. everybody your want you and thank to for Thank so I

the and the execution the had ties quarter plan. business directly of second said I we've call, the in at and As we've opening to new great strong the of first our launched half the success vehicles

also investment the the for but over vehicles, EV optimized our second cost that years, as in shaped next several half be both and by and well opportunities our making, we're only portfolio, as outlook, discipline. Our will growth ICE the the increasingly not

agenda this who include And Abbott, strategy, of going be software look The a next Apple will Mike held Day us mid-November. Investor in by joined will our from -- that's at led be in detailed focus to May. our the

to opportunity STBs the to as Cruise. our also mentioned, I new You're Super capabilities, of drive experience going and expanding have the

new And EV truck you're to Chevrolet get one talked to is Silverado going of the drive about the most it. work vehicles important that we

an that going to And were the right that pains EV. be something to built the they now. we've need made to the because, far range, made Ultium purpose It think of to of I starting going Others charging greater competitors more benefits the again, was powerful get dedicated most offers XX% we than investments. platform. to platform. We faster it and on through growing they're up that's investment towing their examples do in XXXX as driving capability the

able and into business in to going excited to we be aspects what the I'm doing demonstrate to of that across about So very just execute in with QX. as QX to are November know we're and all continue we're discipline

and So before talk appreciate you everyone seeing look to most probably you then. and then forward to of

And hope So participation. thanks for your everybody great day. a I has

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

disconnect. may You