General Motors (GM) 24 Oct 232023 Q3 Earnings call transcript

Good morning, and welcome to the General Motors Company Third Quarter 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded today, October 24, 2023. I would now like to turn the conference over to Ashish Kohli, GM's Vice President of Investor Relations.

Thanks, Amanda, and good morning, everybody. We appreciate you joining us as we review GM's financial results for the third quarter of 2023.

Our conference call materials were issued this morning and are available on GM's Investor Relations website. call this broadcasting also via webcast. We're

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portfolio steps and our environment. a Let's in taking keep we're into -- ICE strong to EBIT with very the deeper dig a little competitive margins during

lifted trucks. of capacity series MultiPro innovations and expanding have Cruise in We bolstered to factory our premium we let including Super with the we're offer up. demand, to this that pickups, SUVs the trim Over position several And high-margin the full-size not range in segments, did full-size SUVs. and managing like large years, last luxury Tailgate by going we and meet

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Here profit the drivers. are

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and lineups XX%. parts build powertrain combinations XX% we're XX% using the reduce of simplified have We where to the by

let's Now at EVs. look

Our commitment mentioned. consistent XXXX. X EV as a as of have million scaling way the we will allow in This discipline future us operating strong the is but we are to also as capacity and plan in continue upside, units I we all-EV to annual EV that's exit market to to with an America participate ever, North

venture year. plant in Over The of are targeting progress. joint they manufacturing running made be Ohio capacity million cell of will tremendous the has production XX course as our month next the this and cells planned, at XXXX, battery full

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over the decreased cost XX% our already Ohio cell in volume production last up. has per example, ramped For as months XX has

improvement significant and complexity, battery trucks order complexity. achieve improvements, cost to engineering through We also buildable electric on and expect margin manufacturing our and supplier reducing combinations efficiency

Bolt I speculation is in developing Bolt know there launch next-generation market the new for Another the to some has why EV. EV. a we Chevrolet key us as are been

brand the on it tremendous to is do strategy possible. Our as and the to we in have efficiently as equity build

Our newly plans of a entry-level billion commitment prior over included the and portfolio capital vehicles several designed in next $X years. the several segments

and know we well an saving in cost we our delivering to the using of ownership love. In Bolt pack lower. the X even experience NACS, We're America process, leveraging by will be we This capital and customers with and engineering first faster, driving, LTM deliver are market North as will our of in years a improved battery getting better at unit purchased attributes our vehicle billions be However, in EUV platform. Ultium, substantially latest LFP cells. deployment least charging significantly and best expense as the a software will technology LFP cost today's

eclipse X logged we our to now the to future more X Cruise. continue Since driverless In turn that's today, Fast let's early the miles. they GM celebrated transportation been they today and company, becoming million to have So and true with more February, days to the expand. Cruise. and defining company Cruise first than ever of of than forward million has miles,

week, roads. we that XXXX. vehicle purpose-built last are to bring autonomous with working We'll and that Honda Just announced driverless world's with Cruise first-ever on do early origin, in rides for Tokyo to the our driving GM public

continues this continuously what AV they the safety As can push is technology is to Cruise boundaries something forefront, deliver of improving. the are and at always to society,

regulators costs ongoing federal now know let's remains of some state In of impact in drivers. fact, than data I levels. And government the We U.S. our the forward, discussions we many we U.S. far about Cruise involved concerned know partners X collisions and and talk the higher that the it's labor fewer AVs facilities. This of ongoing pressing business strikes. crash at are our have keeps and are us at from in with strikes about of our focus on vision that you know their human the

been we've and would we have for cover our I need at mid-single-digit like we of inflation the Let on would summer, majority proposed to confident employees agreement's costs for high out-of-pocket been this is started negotiations better represented our UAW. our will also UAW reinstatement, UPS has that substantial, work living The how bargain our risk term. ratified. The we've at the start the and and U.S. the that head and does current of XXXX. and demand The that the outlook Caterpillar, laid that's in many of contract for and have benefits. Since workforce by grow that low job $XX,XXX and offer work premiums that changing to other that and with coming pricing that salary our team not make success. XX/X It's is me XX% have contracts unsustainably time sectors will Permanente to company believe been They've there. out EBIT clear companies benefits macro Accepting of has the XXX(k) the factors. increase world-class It's company's job simply environment, but available per our out that to because target I'll members with not and contract, several future to some given demanded for and It off labor end a the enhanced care increases, higher company. their $XX.XX significant this exactly time with offered And now, I This includes or paid behalf the out margins we playing an ensure members we've across and in record with on put economy achieve record -- positioning this costs, have a roughly weeks the will achieve table already world-class record has the and a COVID we historic that then risk. now. something a the health health is on. or of cost rewards address offer GM and wages security care. industry's jobs increase we're the than Kaiser senior do. Clearly, other begun, that EV our members, hour business team to ever targets contributions, are offer for members I'm year from wages I'll to put the and it of deductibles at the and GMT most no what do

add XX% will through should XXXX. things be more we've margins clear you strong X% up decisive taken to our when far, So and all talked take while about steps sustaining than America to the to ever so that EBIT in North continue it have revenue grow we

We portfolio and to to ICE cost profits. deliver structure our are our optimizing strong both continue

we us. streams time world-class then for truly And and a business, EV team our strengthening are We remain deliver accelerate we further. will to from vehicles. high-margin new exciting It reoccurring assembled software-defined does have a revenue

third the quarter take So Paul in I'll you financials now greater to then to and move ask we'll through detail, Q&A.

like members the build our strike had and in results million by through start passion once EBIT I'd thanking you, those face quality challenges. to for of the delivering employees your team good several to Thank vehicles strong deliver the our customers. In To and for your uncertainties to you of the UAW that again to Mary, everyone. products to continue UAW great strike, focus, a thank impact. roughly $XXX QX, morning, commitment

in And million production lost estimate so $XXX EBIT has we an QX, impact. the far, had incremental

were towards a strike After half business our full Moving extent as forward, even we of impact of this costs we strike because will and impacted million based year contract, guidance XXXX $XXX ratified the estimate forward. We're prior to underlying the update fundamentals to of we've not that we to uncertainty, investor strike. the the quantify week UAW as strong the yesterday. duration strike approximately to range us chosen of of pushing withdraw the any upper well speculate have moving impact And provide the an facilities though going the on UAW labor on metrics, per as the the of our to be final impacts.

of challenges, the announced $X net doing in Despite focus drive Higher even incremental business. is will working and Winning we the fixed program the continue earlier are cost work significant with year costs cost Simplicity labor on further team it mentioned already imperative the margin-accretive Mary the parts to offset and to and the that these initiative we most costs. efficiencies the to the with more make billion great savings.

our now than company volumes, higher up up pricing results. Total QX by consistent to X% wholesale move $XX Let's X% and the which to revenue year-over-year. was driven were more billion, primarily the in inclusive UAW EPS volumes $X.X were EBIT-adjusted and diluted EBIT-adjusted, strike quarter. Production achieved million and adjusted X.X% during margins up year-over-year. the $X.XX We $XXX billion of pricing in impact

offset business a mix our $XXX in operating more by these billion, $X.X with than auto from decrease other driven Financial, the year-over-year, $X.X performance. and However, parts strength and EVs of cash was along of the auto in resulting investments were benefits GM up normalizing, million free including our continued continued billion Adjusted year-over-year. flow Cruise core

North to to QX about $XXX our costs continued strong are savings program, America see the deliver continued $X.X and benefits marketing of robust, with billion in in cost EBIT-adjusted. people from we fixed to year-over-year starting savings. be results realizing reduction Pricing lower and million

UAW Expected in decrease with resulting mix headwinds pension income, than strike from tailwinds warranty costs year-over-year. and more these along $XXX million the impact a of the offset

claim quarter's As by as vehicles the year-over-year. we continues decrease our our in shared costs, in quality of warranty be demonstrated to prior rates the strong update on

the However, we in to vehicles have factors. cost increase an of experienced repairing due inflationary

to X.X in that guided top continue XX% points QX, and the to retail reducing costs committed continued begin marketing number low finding year-over-year. X% will of was growing the are headwinds minimize share efficiencies our claims In At at and by moderating in are We and optimistic profitable market the with to range. spend we fleet the and year-over-year QX. EBIT-adjusted of incentive and warranty year-over-year X.X% hold margin consistently we to same million spend growth percentage $XXX drive time, share. reduced to both target U.S.,

as the million, a EBIT-adjusted decrease the updated our continue significant ex-China to is more performance This $XXX to income, a was thank million of Financial quarter, their of line new help portfolio XXX,XXX improved of $XXX the with X.X QX equity the GM units XXXX our profitable improvements uncertainties in to $X,XXX range hard product challenges. GM challenges QX. vehicle ever XXXX, the work was help XXXX UAW X and EBIT a to average logistics point mentioned, values. U.S. X.X%. new improvement inventory XXXX have for over percentage who net XXXX. I and EBIT-adjusted results, to completely solid strategy. fourth-highest shows of and profitability, consistent equates point and car to industry industry remained want million, to with vehicle continued work to average incentives momentum. Total have amounted years. to through mitigate has EBIT-adjusted had percentage performance ATP, to attributable disciplined will due coming Power strong modified the Despite year-over-year. the with a annualized of interest lower strike. GM within million $XXX from entire we take And $XXX $XXX in in U.S. sales to and navigated our of per in $X.X inventory and J.D. increase XX- testament in from of a industry are improvement deliver including the the Mary breakeven China of income. PIN billion the doing moment our in incentive have International lower sequential X%. our XXXX rates to team and strong the technology higher data at a and related In pricing about International We our slight QX spite percentage China products in QX a to to a actions was of designs XX-day for primarily than international as which million, the end with is used quarter leased last to approach an This of bold team they're trending few above This relative spend some expectations had was performance below which

similar XXX,XXX the in further quarter portfolio also increased half drove the XXXX and our shared and of target balance million operations associated higher few by efficiencies. forward previous a $XXX and expenses from impact product and yield rate of interest the fleet and increased items offset $XXX targets, we expenses income with had second the we on with Mary with and charge the AVs additional We incremental half including our that XXXX. the to quarter, XXX,XXX resources of finance production EV expenses year-over-year. I a million also effective production as to saw A will were These moving growth highlight expanding Cruise for EV the expense. Corporate actions volume of quarterly first EV decisions. year. run were larger million a want $XXX cumulative in expect EVs retime prior XXXX they consistent

are approach EV demand more are We moving production EVs. We facilities profitability. adjust positioned evaluate and targets, to flexibility agile to to but and built production be providing to uniquely between ICE and our our able to are our competitors continually purposely new a manufacturing not schedules maximize flex into among

EBIT-adjusted versus margin through to helps our ICE along and builds example, These software-defined the existing profitability builds For cash Ramos solidify X% Hill, in And of of flows both and prioritize our funding businesses. with Blazer variants volume, Cadillac the target America the North Ultium new facility vehicles which with EV which future along the LYRIQ XX% ICE our Spring AVs, and XXXX. actions Equinox other vehicles. EVs,

our production clarity Given We and everything transition, to we plant, agile manufacturing more see we is building. profitability want improvements cell I provide to accelerating our to around emphasize costs. In from expect closing, have it implement that profitability in Orion $X.X We'll EV approach software. EV on of momentum at capital trucks. battery prior production a now electric to our labor more detail once improve billion to spending EV at of to retime least engineering EV

adjustments the the find confident that to will rather move has preferences. efficiencies We the the our and make EV drive further have over the Q&A continue capacity we'll not and the strengthening for team and opening mindset grow continue numerous both to accelerate come, to top everyone's portion moderate likely expect The be forward. company. This we're example years, labor tackled remain but in transition last decisiveness costs we adapt and and a mind, statements, are solutions another to done, of to at this I our few customer to significant Higher challenges implementing of to the cost but concludes will of we'll moving agility or now are fundamentally to EPS call. execute years to and change initiatives one install

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

market are growth was getting an I more EVs. the with assessment for are willing expectations? Ultium on a fastest-growing lower you're And market. provide little this of hoping the still slower bit level, could within investments year? the Or IRA And products, that a the why next just Obviously, on EV the just or point-of-sale you to XXXX demand less assumptions high kind color of segment just premium that making, given you pricing started you is GM the the think a optimistic at becoming now earnings mass buyers is volume pay? benefit wouldn't EV affect

competitor the What about. about EV et cetera. been I right something growth seeing that seen in to would demand our we're say everybody profiles, want not now. that is We've is has talking earnings in clear, observation I slowing be it But portfolio

are out that's versus in than others we're demand that and considerably increasing admittedly, EV we production Xx, continue up to volumes Ultium progress XQ strong our see Ultium making portfolio, Now products on with XQ. But some there. for lower

what that aggressively stages. foundation do advantage in scale of slow before engineering that And we upwards. to down the learnings to take allows and to is manufacturing what stronger build us an of seen early is scaling. and So scaling we've some some are it here the through the of we But we've a opportunity process seen

what continuing the really portfolio price. our resilient in the up seeing order customers that's books. is I necessarily seeing. what wouldn't book our chalk to their been we're have it And orders So keep we're on to in remarkably

a your scenario costs net for adjust UAW this billion can $X labor that company's of a higher product affects contemplates that you level, do business. to need clarify will think And GM change And adjustments the you whether costs? high in strategy make for competitors. almost just consequences the secondly, there's to of some obviously, fixed cost any At to kind to reduction

committed about. continue that we And the to Rod, work talked underway $X out of this the to we're tremendous already is to costs have we've business. Yes, billion take Mary.

our really So think changes product I portfolio. don't this

a as said, to the bit Paul unexpected. transformation which not it's bumpy, is As we EV, get into further

And make we're our much right the a sure we is that much way to so that -- and something vehicles, that more in agile are believe portfolio react have I we more what moving can we have make looks buy. mean at that the segments that that for important strong entries want EVs we the actually most sure I already when we're to entries. right and have people demand seeing have to we --

think in there's of right a to I to just have more So lot ourselves but focus cells, the the portfolio give flexibility.

the the versus EV the Bolt think AV get had We able I previous And we EV example. Bolt a to the more is were great that portfolio quickly. in

As Bolt it strong require less EV. have customer leveraging people lot a the that And will to enthusiasm deploy. capital frankly, we're the for we've mentioned,

it's portfolio, perspective. that we're it and more timing to going still decisions So like from where cost a but have effectively the right do

from comes Citi. with Itay question next Michaeli Our

of factors touch a bit profitability. the Ultium the from some given kind you recent the alluded changes could enhance if can back first to you just to to maintain can the volume, And Maybe Can changes that maybe in Just engineering upon are that to the targets lower relationship LG changes allowing you also, XXXX. there? EV of maybe margin quantify any target? mid-single-digit low to that going you review you

to margin -- it's low for ourselves position are XXXX mid-single-digit thing, one Sure. Thanks, Itay. expand. much we steps we multiple not it's committed in target very to EVs. But as said, as our And better And exactly, the to there's taking things. Paul we're

cetera. a And I right right charging. one. the the right the So have a the is features, think that first, the I the example has just look minute and it's at ago, prime segments bidirectional right that vehicle as you in range, mentioned the number range et right EV functionality, having when That's Silverado products

feedback as So the well. the on getting is Blazer that also outstanding we're EV

on come from And fully already just On So down plants. plant at examples. It's the in cells plan, that has I cost of have that well then year. scale those having other battery point fact X mentioned Lordstown by be of how just are time. end we're much into to the the we'll the module and the having X also ramped the for we'll virtually the track the

with battery in we important So going doing a getting another for piece. I consumer we're because the about simpler And not is line time way think of Ultium better market Simplicity tremendous need a get in to and be the really will not frankly, choices they're then with and Winning out talked complexity make. seen it order the designing to engineering cost to kind of complexity they cell honing amount of improvements. from number planning sight. And combination it, build what the making we've drops it, and bottom overwhelmed it that, for that product scaled and taking sourcing line to they're with last --

important the it's appropriate can that generation. Bolt which part giga round then how a make vehicles the on EV improvements first platform application designed Ultium that haven't lot vehicles of beyond the that and announced in CTX. And make already these efficient. our went an is we're it already castings, learned We Ultium yet there's of into, products. part like more in be a them the make will first things It the seeing With CA. we from We -- it CELESTIQ, Ultium, on this lot will we will to we can of of. that be and we was a But improvements learned other

at frankly frankly, it's another just it's to there's And get fundamentally is there. trending committed remain we -- where -- but everything, So are looking enabler. lithium prices

a kind of multiple maybe stage scaling as thoughts thoughts quick strategic out share really we any a Any just to of kind goes the funding wanted I touch to can as well And growth? helpful. very all Cruise upon With next follow-up, forward as into of That's and you going lot Cruise, progress. -- Cruise. on cities making of

Well, we're Conference. about will In going at this part Cruise. to Paul have a latter be year, the lot of more Barclays to say

then quarter We also and will fourth have our earnings Investor Day.

tremendous work the has deploying Cruise Safety factor that will to we're opportunity and do do grow believe to we our as that be continuing cities we that with gating and expand. So in.

more later a say support we we'll rest But So plans have have will funding do that to assured, date. at expansion. Cruise's

Our next Joseph with question comes from UBS. Spak

And here. program being you talked for that up need -- these finding some products? today Just we're flexible implement as sort of other on you what these years make on to to platform Ultium strategy about that some market? the of the in basically, of Silverado the to learnings follow of that like of plan Or couple you are we think should to to be should sort an again versus a these seeing changes? Ultium able about How a changes and in also think there X.X are scalable we

to makes change of this together perspective without mindset Again, and them our I already it's significant. that complexity parts as being to make person, is from many the we've this chemistry in -- will as forward, well the latter to at frankly, Ultium to There'll get be, we explain look we decade of agnostic, when Investor build. vehicle. Ultium of of we're as to we think will that we had the so Day And other go As adapt. make pretty as hard programs. can continue and said, the -- the do the easier the platform simplification vehicles X.X really I a think, is And we'll we've we part do into

improvements. across it's the continue to to there's -- be efficiencies platform, drive Ultium but again, the it's We'll in broadly yes, also entire vehicle. So going

battery by there JV Okay. be And was year. of end at this the about the comment to on then able Mary, capacity a Ohio full the -- being

hours, like correctly. if I that's think gigawatt XX I recall

there So time some ramp maybe and owner, the own GM's of coming of with like a I only other you're how stock this -- and additional and to going sort produce or or demand? plan does also look that JV, there that line know balance JVs a any battery does offtake which part impact online? to build EV for Is continued revised be

all we then Hill need Michigan work ramp strongly we have then Lordstown. as track with in is, those comes believe continue We'll Plant because that No. in on the year. online next and we at We Samsung. keep having And cells. plant X We'll the plan those of the on Spring follows and it that

to have need we're that, have the do the to we the to a to that don't something again, respond and time, here. reiterate, just that we've I but products this we obviously, on want and not but right slow overbuilding. right to we outlined with if down, we're Now at we're sure see Joe, going evaluate to time, going make plans at demand,

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

I think flexibility it like mean more did it on a think product very it Paul, be to decisions mean and historically. and you did a think on capital products Because commitment about obviously, the -- things shifting you large. it's on shift be give EV but of we the XX-year seems plans, I they folks are capital when with more sounds we it and about so there's to in X- the bit thinking about flexible. this real into always more business, you be opportunity an side? dated going might Or just than I to also they uncertain, little is returns But -- Bolt? shorter potentially make changes that's think like that has more and on still sort lot a risk, bit higher Mary little of ICE the EVs technology world, a there's are you dynamic with like that we can this as

Yes. John, it's Paul.

complexity I foundation simpler us and going forward. reducing I combinations and aiming going is think, design, think more that agility we're buildable to manufacturing, of give engineering the I think that's to, and what creating

a that the I you're see thing announcement Orion the going to think think is other example and also is us, the on this engineering good improvements I of fly. we're

look vehicle. record, think So -- you historical if would I you'd produce be it the a at

that those and You'd improve changes. And the go improvements actually more an really say, improvement of software et the of line. let's wait says, in to to would features, it's ahead conducive really I profitability, opportunity to a identify vehicle, put customer a for that's, and capability it in implement and you'd some go mindset mid-cycle cetera, in more the here's model profitability,

we ground make future opportunity where seen the of to an from the nimble we've growth, to decision the to more in I up. more application create think it's So And and early in going the expand as represents demand up and the slowing in Orion a scale that lead go build ultimately these ROIC. us and consistent

the the visibility sight market moment. retail line by customers. Okay. really better seems buoyed And orders then And fleet usually you have in U.S. fleet guys be more from a than of follow-up sales into year-to-date. your strength at just on The to and sales one

that, relative or the kind in is wonder last did 'XX as and expectations there of has if cyclical could really the of this it fleet driver by So of recovery? early 'XX 'XX, like that upside driven going that I consistent in visibility beginning year. And the been the of strength two, is of the to you confirm sort to cycle at a

talking Well, from customers. evident fleet in I that's the been retail the customer the of and well. the think, performance strong the retail gains that But John, I consistently demand has years, about we've pent-up been of share and as last would couple been really say

while we've market while increased both in while fact, marketing from retail down pretty production, and incentives we've have fleet spend. from share have gains kept year, seen we and this we reduced consistently In

on strength. consistent we that the of what haven't cetera, macro consumer be So and been I there that the done testament, well. vehicles, especially reports out that face we've the might while hear in about seen that we through a in to sentiment think they've it's demand the in side as retail real for et pretty weakening, and our performed they've team America North what for And

of I from to we're improvement disciplined that. think result in as a a much So what we're transformation. around continuing enjoy operating margin And lens that more we've seen

comes Bank. Deutsche question next Our Rosner from Emmanuel with

XXXX couple EV the a on clarifications of targets business. for the First,

margin. low mid-single-digit So to

But to you the could are guidance, including this be including Or gone have to them, I think that you the was very saying mid- that you think still manufacturing excluding I you when that credit. IRA cell at IRA, much initiated would high the so now, single case? Is target flexible consider between piece. EVs capacity in volume than the as to mid-single your is then capacity that and the demand the To guess the the piece, I industry low or the reducing weaker dynamics was ICE, would on digits? And XXXX capacity you EV future extent digits. expected?

before we on low margins the remain committed changed question, first, there. to first has IRA. Nothing Well, single-digit

to we We with And a we margins to Ramos, are for from know like waiting flexibility we'll to believe so be said, the again, I flexibility respond similar we Paul clarification on it have. of capacity be. in that. And Spring IRA where what down in that to then have plants, as that final demand. be still they and aspects we'll as with would couple you we think the ICE quickly with treasury that amount outlined, the our have It's customers Hill to don't and on very EV the depending that of able we're just what the adjust AV, it's or of going

to be in positioned period. have EV the the going need for ICE to we is, going transition the market going GM the serve I flexibility again, that is we're And better one capacity. think we both as be that think, to and this move I to So ways of

helpful. business. And overall then guess I the broadly That's Okay. more for

labor are expected you include from offset actions target what contract, is cost And try your be the can new assume billion. reduction that cost increase? the does I clarifying -- this additional that contemplating is assuming inflation? What could please billion $X inflation $X to that of and sort and net this done beyond inflation cost net Just this? This of not clarify cost before reduction, offset any in labor to above you the any but

controllable is billion being I goods that. $X when through say contract significantly implications around will it's the Emmanuel, agreed we flow in of do Paul. and our What to would remain UAW cost of performance. the fixed costs, to and to is ratified committed sold is largely it that able So The and margin

look So forward. cetera, have at profitability, are that things you offset the when that going to that, we the et affect those ways EV

jobs compete that good So we sure the know the are good company we franchise one, going and global protecting can to marketplace over. people that that, got want we sure we in for make contract a make are to what the next brand, they're these the the well and we've as taking do We're is future. the in jobs number because that sign to

some We're costs get and engineering with of a the inflationary at earlier board fixed bit saw to taken pressures of in have to the to across little steps So that's we're going the to of further. to have going look that potentially at this year. reducing trying look we've those we and vehicles, ahead efficiencies designing that

it cut So look for we're some going at to to doing work. And us, we're but continue that. work got we've making committed out to

with Our question Morgan from next Adam comes Stanley. Jonas

for credit the acknowledged share you've Motors really getting price Mary, some time Cruise any for General business. is the that not

reckon that be think would many a implying might stock the you argue pretty $XX, would think which I Cruise, for value negative I even at be ridiculous.

in your know a to business, or anything Board possibly So unlock else next learn could Is my management there the sides for lot business? to I on question growing we're Cruise executing is, the and value and the on going continuing that year. do team

I all, of completely with first you. Adam, right. All agree

if undervalued, was I think just it software stock the and company. ICV an is even

think I piece the Cruise further. of is it

we Cruise as very will Motors start we to unlock. thoughtful a the have in focused week, I and just we think on and Cruise way, opportunity expand people that I with last continue mean, General Japan. and see to think Honda I in announced safety,

part to going be United success. States, be an Cruise's in to in think mid- able to of but of just the to important longer-term be expansion, future driving involved not so globally, it's I And

So the do believe in we technology.

that's in and getting remarks, it As human my and I doing. focused it's is what constantly better, improving safer said and than on a driver we're

growth in that the I know every day. Francisco. see San to amazing really people It's use it

for a Paul. follow-up Just

high least I the very at XXXX within without single have mid- of specific, target range been guys a You of EV digits think, to IRA. a

You're margins obviously not disclosing are today. EV where

I'm So it. on because that going to disclosed not you press would you have

-- today? of delta. will Is labor. what point through year loss-making can will standoff said situation a think of get you commit is we but if in something that the we you you in you're the delta doing have clearer the this correctly, I starting of you to, EVs because can the UAW, next picture when heard you of But Paul, that specific the from how had put are not greater understand on get they're it it please? the so be loss-making, to investors could You're Clearly, choosing I transparency on that I today labor your we the not until with you some expect comments, or so number to. But can

your just to the to is digits in target comments, mid-single ex-IRA. clarify low all, of First

want mid- to because correct board. But this infrastructure yes, I said to just for question, the big relatively nonsensical, the in a across repeatedly as year, just I high margins mainly think your look, record. in EVs we've you the scaled with we've said got clearly, limited are production

the Day and make push are that do -- dominated we'll something that we out to to We that UAW. by the got of that put there. decision good want to Investor wasn't it sure Investor was out Day. And data presenting lot was map, So really at road points absolutely strategic to a our committed we've

of weather making to that where in and target, kind including a bit internally. Day. and going good when in we're come have progress to that we've Charlotte warmer little get provide March, where we're mid-single-digit we'll low to gets margin So map, from that the Investor We'll road

question from next Paribas. Our comes James with BNP Picariello

Curious the get are of now. I spend in the quarter to strike and overall -- on North there incentive America. your right limitation have for obviously, mean, we types backdrop production fourth just thoughts pricing

yes, U.S. inventory would there are be just great. today trending how any relative quarter-end? Just And to supply color day

Yes.

of the I around has how for we really just and credit in contributor think backs across the and that consumers we're the vehicles like strength the team strategy really terms board strategy, that to is deserves I transforming and of not market products the some incentives the lot of board. but across remarks, prepared on the profitability the a in that huge in said incentive approach, the of the a had the So my go-to-market producing we've been

a as this we're getting very expect we in closely that them. inventories of have continue. Certainly, I partnership sure watching make and, try our that quarter are product-by-product have to light varies in to trended on bit of at strategy to that we course, work And to we little dealers So a basis. the end, higher vehicles market looked stoppage with where

our manage the vehicles, to is continue that continue rest very demand right board. and tactically But of to pretty strong through we're year. going the for now set we're the across that So everything the in that we to seeing expect

guide then we based about XXXX at an follow-up, believe costs? on just Okay. there about should think -- bucket think a in this And my the the you guide, quarter? how for XXXX. just current we would for visibility XXXX level, prior we have the I in can Any That's be great. supplier And color helpful. the high impact you of confirm as how freight materials expectation commodity might pricing, next cost year neutral. Just and spot any can

challenges, have of some the We're America about we've get what pressure now. and Yes. we It's with that. a little before, that cetera. budget seen early particularly coming rail But I to is Mexico in say would et delivery from talked right into process logistics North midst vehicles into our with

where it's my rebuild, chain in couple said the full ability chain coming can't as peaks of the say over been will to supply to in we've have we I the we tempered up quickly up getting shortage, expedited end et we So 'XX important finalized we're there's some on Obviously, from can. expect and as concern this has chain's as bit cetera. ramp to a spend that there's the has as amount pressure. the on shortages down the parts years, up been of production inflationary because et after cetera, work supply 'XX. I of mind focused ramp in where supply terms don't there a chip But on situation of we the will stoppage. that and logistics, that some last be But the

on But the sure as through making work we So budget. and position. we're we're a closely work through to come more that and that watching XXXX in that

Our from Levy Dan next question with comes Barclays.

start to volume call units. from wanted Pre-COVID, you year first just X.X were it, This of price units interplay. volume. closer million the to, aside, consensus it, to call a X be X at, annual mix will I numbers, on the anywhere million strike with -- of million question on X.X versus some

more absorbing in way labor costs. of Now the you're

most be with cost I waiting to think happens would but to a EVs EVs, we're challenge. see view what

job So benefits and pivoting of you've units. showing done the already good profitable really to mix a us

the you and mix volume. alluded think business that your do I shown and on profitable something way, can volume? in a units How reduce think you remarks away in focus that more slight focus on prepared relatively more to from business really pivots much you've, was and a

Well, but General at appreciate the We both, the Dan, customers I just I XX% and really vehicles, ICE Trax, even to are Motors. you it's of the EVs to question. focus new on for want When be got that to profitable look new growth. mentioned the our the Trax

winning to coast EV adoption years. several that So we from a for and where point the going products an going And the focus on ICE is that's winning to next want to us to growth be that people have think along over higher, opportunity just EV continuing buy. we're specifically, EV's

going That's your like And is saying, to question the our not I felt I And is shrink? you -- so don't just are answer no. intent.

then and and that. think and the profitable grow have do be to expand, opportunity we we to is intent Our

have the with that Dan, quality a of love. years, us think the of And that few all I customers add lot our ourselves about last the when it challenges starts I taught products that And I'll think about I create think, and you products.

opportunity about the an think have business. to You

we've and improvement doing on the really the we're et the examples driving the level, the that. been are some we've have focused at up, combinations, cetera. margins what what that really with while been doing focused buildable It's spend, across with But So gone board. profitability of unit on marketing margin

vehicles premium focusing mixes premium supply demand So the focusing we where constraints. is the those on there's on know where

that are is with going the can focused just that and future but help not performance lessons we on us consistent forward to take are strategy margins, Those the into ICE also forward. and help EV an really going for margin profitability pave going way

what to more certainly the done of come. think So has organization proud there's and incredibly

this and to should that Now the really we've been board. get ability normal about SAAR we volumes at in all feel doing across historical levels our a higher of environment continue more to back lower good

permanent good So waste. let lessons I some seen and been for where think go it's a learned, learnings you good I really never good long-term crisis the And think organization. we've to that's

Great. And behind a starting dynamics Hill, capacity question, plants. to I that the commentary on for sounds just at the like battery Spring run you're earlier go to delay. the second that into wanted you Thank that's then slight Lordstown.

to that. a listening this other to on versus the more other the the battery just was And X that so plants? at launch demand? after supply battery could on saying you to, delay what ramp think can more Lansing you is factor give plants stand? to And near-term Maybe I gating year the if just where on is the some X investment need sense extent us XXXX. you

capacity it early that get the due plants. And the have So as will year, start we to some plant, But plant to learnings. delays. of we pushes then both with it's There before, I a weeks, to Spring that a on the next believe the track, supposed those couple in think year full Michigan a will going year, you at demand which originally weeks the year. construction mentioned start this of was need be end up all plant couple benefit end when ramp at the and to it year. full of to of then going there. The again, of And fully this Hill it next all now will have we're Lordstown we cells was to for is -- from the there's allows of it

is. demand But continue very start We cadence can the talked obviously now, when resilient plants fourth though I where changes right early about there. be agile some the 'XX, is plant and with customer make those will to progress likely and and having to be Samsung. We good build

So of plants we're the the ramp down battery all. not at slowing

you as the constraint cells battery industry. know, the think I are of

some programs even it's ramp we're in going going -- just we've we're with made with so a I Orion months the couple to this to think those other need And cases. on we mentioned. and that of It's change all of of -- most

Colin question next Wells from Our with Fargo. comes Langan

big made deal a about the announcement at UAW -- The big battery the plant. concessions

that's you any there Just of give a how color venture, have wasn't on because nature what agreement able them you the how because in concessions. kind I I joint wondering if you're actually with of that surprised a there? sure and so was bit Any terms could come to is to color

at the a voted is company separate Lordstown negotiating is Ultium to now, the Right team that employees unionize.

put cell have different own we at But scope getting put leadership LTM their is we would now. local allow it that flexibility and team of than conversations, the and And the offer own point, it open, would under that so because negotiating agreement. operations master the must economics an very is on did did of at traditional believe the some the the their to have for with we the We table offer benchmark operating agreement. have cells And some right the that remains also plant agreement. UAW focus battery time that is this Ultium on but which won

Got it.

days at has become you a to it's bit think right? And like in of but Do doesn't flexibility of pushing switch future. and aren't the between hit early challenge of to push ICE, in the point change EV out that would a of of U.S. only just in seems there's and sell margins, targets? at There great your the least EVs regulations to in any way the those some Because potentially interested Washington still we're demand it buying be of them tone have the in EV eased kind of already. EVs. the in you some kind Just consumers

I regular in EV I've demand, Yes. can't enabled regulatory provide charging and front regulations obviously, record on which -- get we mean, the some robust administration of is very having the a of by will agencies. the been input infrastructure. be that into the clear

and we'll as takes do conversations, have it regularly the meet to we those well. regulatory So environment what

with Our from Sachs. Mark next question comes Goldman Delaney

of was and that in the cadence there mid-single-digit amount need Very of may the you inputs the to But be reductions. margin plan GM some if your help scale given to can EV much key a XXXX? better that low on is appreciate to profits, flexible in incremental be to the EV of cost one opportunity ramp the for at certain in EV understand target minimum volume us reach to you order implement

what as up plant a a a we build or to So maximize we've so it's say got would that step a Mark, little Yes. plant, transform I function, bit efficiency. is of to right? fill

So full can the Orion really it build decision example rushing to defer not we fill of is that an to up. that we infrastructure before know

transition. So an more ultimately, of efficient to it leads

and that as those quickly scale working can. we've facilities good to we've capacity capacity got say we're is So we what that the at transformed, already I would to as

our mid-single-digit plans. It's on there. to XXXX EVs our of big So capacity grow changes that But you're margins on the part into think online. a then bit it, the bring it transformation step ability to we a all rolled but incremental remains the as through of see from targets I outlined we've of low little going part in that's hit and to that

you speak profitable, progress international a And market on more Can you what's the company will the China how think international business, including from backdrop. on market despite been in here? the was detail in difficult

countries exchange it's We're like them to a in that operating all we Middle currency because in with the markets some continue again, right from America hold the first East for really seeing cases, cetera. having discipline. improvement for strength of those to understanding see South Korea, it. markets one the ex-China, -- the foreign to current the start GMI Well, in And It's the market and to products strong happening where up. of again, we're America, of if going we across on perspective, what's we're focus South et we from products the price and also especially a

still optionality China, potentially China the we're products Buick get and is -- pleased with focus looking the we very there So modest General to markets QX. are. And as a right is make products focus our where But you perspective an for gives and into real in position then Ultium uncertain sure And are the import, us on S-GM-Wuling the China and for say, lot remember, us we I'll of and the Motors the from in initiatives market value on GMI top perspective. out for also Cadillac of recovery but continuing we're at a the, a focus those then part also facing market. from market, think we're mid level China, the X then that and of a premium well going in expanding an to entry at market part the of part

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

uncertainty and we'll thank everybody, say, I to It's dealing going the to joining of with clear deliver to our call And we're ICE that we transition well to it's purpose, that that then ups a have near-term to business to the going have has respond hope downs. we're a a I'll business EV future. for and remain and we're thanks, system But that is the agile today. and the also with ability EVs profitable you, Well, lot as as we're for equally the acting strong Amanda, Great. strong be commitment a sure and our -- -- that profitable clear market making where is. and

point safely. tremendous them. as UAW into today. And challenging plans. across and want Paul an tremendous perspective, deeper to business and is right I discuss the said, will we a to we to contract a our our our work will one in a the than profile and isn't have have we I this an at event economics the for and that to for you When go in the Abbott Cruise for allow our and responsible really shortly and But vehicle that see upside sure we in we Investor to the what a and agreement, will organization different our software compete our is to for the I remind March foundational we ICE EVs margins I reach sure addition, allows opportunity business. When built to AV employees of -- shareholders. also with deeper earlier, with business software, We if is especially sources support specifically, deploy win ICE, we make and EV, market very that agree capture look strong now. we now, what Cruise be know at do us going with us able strategy from biggest country host a Mike and finally, to the regulators even inflection need to of make schedule of us thereafter we see and to have of businesses, we'll the to managing next And into additional only with contract is has that growth. think right margin software to the with you for we're growth continue we uncertainty Day look opportunity In an you not Cruise, that then contract aspects this our working said our can revenue some not

And so we look forward to we of more with each discussing in forward. them as you move detail

that to make no make all-EV mistake, our we transformation. changing successful very sure this So manage the more company we agile We're to resilient be trying just future. and any as can an We're GM not committed so is is there. goals of

and for day. So Thanks a has thank your joining for to questions, us. I again want you hope I everyone good

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