General Motors (GM) 30 Jan 242023 Q4 Earnings call transcript

Good morning, and welcome to the General Motors Company Fourth Quarter and Calendar Year 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded Tuesday, January 30, 2024. I would now like to turn the conference over to Ashish Kohli, GM's Vice President of Investor Relations.

Thank you, Amanda, and good morning, everyone. We appreciate you joining us as we review GM's financial results for the fourth quarter and calendar year 2023.

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

We webcast. also are broadcasting this call via

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

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

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

good everyone. and Ashish, morning, Thanks,

I As on that performance GM in XXXX. we strong positioned and learned is builds of year for importantly XXXX, believe begin a financial everything accomplished we well

auto is growing continue XX the the resilient. U.S. units. to of economy, Consensus market that GM, expect sales healthy sales million be about industry will At we and job

ICE in We well. unmatched continues perform production and GM portfolio LTM an North Financial to EV America, on have the rising platform

a XXXX, in foundation that We're building more love. the In products on customers GM U.S. our than of else. vehicles sold anyone

U.S. average. industry stable and the incentives pricing our year-over-year, and more with to thanks XX% we their below of brands All sales share that grew margins, gained U.S. healthy market than were

lead and sales the the making industry highest in now The record combined ATP fleet a the quadrant second us year pickup, leader to in SUV market And J.D. for led consecutive XX according years, industry full-size Chevrolet We the market. the have Bolt us for and in and quality in EV EUV had we initial van the sales. the row of led Power. helping commercial full-size

is one winning which and trucks and vehicles Toyota XX Driver's the of most buyers. which best passed in Buick younger and profitable Car affordable and have is like Envista, to Chevrolet with thanks And attractive and Trax, the we SUVs, Honda quadrant, the

in fact, In XX. more customers the Envista ages X XX than are and X of between

broad-based important the for our the is loyal are industry. because customers most have in momentum The our we today future

full and All auto success free adjusted of billion $XX.X our to more $XX.X of year than XXXX, 'XX. flow $XX of 'XX contributed for EBIT which this adjusted billion total billion cash in to and brings

and $XX of the immediately in announced of November. that share dividends we shares is retired we share in being that million impact shareholders program X/X Almost ASR, Through including billion returned XXX the fourth cash the to through accelerated repurchases, repurchase quarter. the common

fewer count peak. million and current share is at than XXX to further which we reduce less would than outstanding, are be this less about X X.X billion billion, even shares common Our working our to than

to deliver look ahead, margins Across and and our As grow commitments opportunities important our portfolio, on strong the cash refocus we are deliver are They our the [indiscernible] steps with relaunch priority. taking our winning we business profitably, clear. priorities EV and enterprise, maximize Cruise. are flow and each to ICE

Let's start ICE with portfolio. our

year. segments. had in compete which we're enhancing its record And important last models, of crossover lineup Chevrolet's X sales growing this most year,

we will Traverse the model. on be premium Cruise for first a and Super example, available new For off-road the time, introduce ZXX will

It than projected importantly, outgoing example. will and And technology. margins unveiled strong focus truck-inspired equipment, that have Equinox we a Chevrolet last the is Traverse new has safety more XXXX styling the standard model. higher week and The another great both Equinox on

growth. EV for variable Buick in U.S. we year will our Strong on commodity half business, are expectations the and of our portfolio and crossovers going. in new momentum In be positive factors our the also other production to our support vehicles, prices us. current this GMC launching second keep based to and interest product our expect lower EV year demand

Ultium-based wholesale guided but is has by of has It's to true plan growth year, customer some and demand. XXX,XXX created Cadillac be America EVs produce to the XXX,XXX GMC, Chevrolet, and [indiscernible] pace will North we slowed, EV Our in which uncertainty. this

We build and at XXXX, 'XX many are the we encouraged U.S. record sales. have year will that which demand, EV XX% EV of of industry another from about in in mean third-party deliveries rising would to to forecasts X% least

production Equinox Cadillac Escalade Chevrolet work course have the the Chevrolet showrooms year Denali truck. We the the the believe arriving HUMMER over competitive in RST, the GMC position EV We're of the Silverado EV Sierra excited will year. our EV EV also higher LYRIQ, the Cadillac of based throughout [indiscernible] EV, and improve the Silverado on the Blazer GMC to and the and

are We vehicles. design the these of performance in confident and

winter For storms month example, every across September, should sequentially the country. growth Cadillac. sales at despite since December the LYRIQ be with January is Its increased have in line driving and deliveries

or than XXX,XXX excuse for EV fulfill and expect that 'XX. -- and have also XX,XXX me, We more 'XX pickups reservations to we orders in

advantage build and change, fewer We can EVs. follow of Spring ICE flexibility Hill also mix more Zero. Ultimately, we However, will in the products our customer. and different Factory models we'll take manufacturing demand at between if conditions EV Ramos to

have software will The changes our supply made support and chain, manufacturing growth. we

in quarter. Tennessee front, Cells in battery plant full at joint shipping the begin is production will And new cells Ultium our Ohio. On venture the this

Blazer our qualify the resource the cell In IRA U.S. the change updated credit. [indiscernible] quickly to full for forward means supply its EV that has X in components the December. will $X,XXX production very and addition, LYRIQ moved guidelines after This new team minor published of Treasury Chevrolet Cadillac chain going

pricing We impact customers, our no for estimate our than XX,XXX we work will dealers vehicles. which ensure with closely to consistent more about

equipment the schedule. module new battery plants and at The has Our automated to assembly be our of team production assembly should by modules, complete improved midyear. used lines is the installation build high-capacity on

that of and soon. screens And stability huge sense charging to lift process a the Chevrolet with resolving is issues impacted some on Blazer their experienced have experience. working services team with they the sales Our software urgency stop customers and are of EV the

customers, these we it. know disappointed and We

the get to software determined are and we right, will. We

several made have going the that process experience forward. organizational help improvements We deliver best possible customer will us and

include level. the applied on several and getting for metrics important has improved has quality current the we test and forward. programs level And development are development gates this test of services the increased at established team activity and within software release standardization additional focus realignments, the and all retrospective across the process, improved vehicle and they and Outcomes a software organizational performing the quality enterprise. the to that division EV software going vehicle a been software Among of on at Blazer automation software processes

reduction offset From cash costs $X billion as of will labor we and making efficiency. a which XXXX, we our progress fixed higher on capital good are and of XXXX, margin cost Compared be net exit depreciation and the with flow costs. amortization down perspective, will impact

also want programs for make beginning are embraced and We the that of all with standalone far important have this to creating with And our see vehicles to team way and winning from future simplicity. trim designing customers very options. of current responsible is content order series easy fewer Each savings products.

eliminate unique standard equipment can and literally more software numbers of with and we thousands part price making trim logical walks, of releases. By dozens series

importantly, For current them. software, and hardware, programs, the which our selectable is ordering and near-term example, reducing product we costs have across manufacturing eliminated over associated options complexity all and X,XXX with

our over In grow be same million. talking time These be we're will $XXX $XXX to plan. next-generation savings as savings XXXX, to To expected the savings apply pickups. are million discipline the to full-size product clear, we the like about products of about future execute

to free generation. continuing capital cash also We're and priorities balance consistent flow

We $XX.X down which billion roughly considerably will in top from the year-over-year our XXXX and be flat expect $XX.X that spending billion capital our to of initial is XXXX guidance. billion, the $XX

to forward Our our hybrid technology plug-in in include vehicles bringing select America. plans North

remains GM vehicles to our clear, committed XXXX. be from by me light-duty eliminating emissions tailpipe Let

But in charging continues environmental to as its segments plug-in in strategic of of EVs the benefits deploying build deliver infrastructure. the nation will the interim, some technology

that because to in fuel more we being road. the tailpipe the us with in technology are plan share a We already have other launches this stringent capital- way the And markets. in proposed. production about to the are help timing cost-efficient more down and emission to program economy We'll standards is and comply deliver

the Moving third-party Last of better released build to changes reviews, significant week, implement to to we the a results begun and Cruise. we've Cruise. already

are the our committed earning through trust the We back to with regulators public our actions. and

targets Our planned XXXX developing deliberate investment road in map. new go-to-market cadence a strategy. Cruise and we our more And financial new reflects are and

technology road and is capabilities. the AVs timetable look Spending our will and the people in scalable, will to business. forward for we our safety profitable are hardware which be software, to but soon. vision, year, continue This the to considerably deliver reflects our self-driving commitment Cruise specialized of who benefits returning invest to AI advancing I this a the down to sharing

XXXX. learned shareholder we our our helping value. a those building us build and the are summarize, committed on strengths creating addressing momentum team on challenges. our To is Everyone and in lot learnings to And

financial tied our meeting software targets. You'll spring, more proxy in and executive see delivering our EV, comprehensive closely our while statement this plans even is compensation to ICE, AV

are with So aligned yours. goals truly our

ICE, will give our until software call tangible software the pillars are it Because to focus and about to thoughts we for the be launches. the more next on think to underway all over time share This the that to on year our our GM to X strategy: able And team would turn in host significant at and event. our points will later we an I sense Day. software. I some changes share to Paul, Before upcoming of AV wait EV, Investor of Cruise, like makes proof

we're show as provided In tell updates do and on finalize going And do. get technology profitability road together, already relaunch will map a we'll plans. you for When what done, share we Cruise we've not EV we've what just to you in meantime, the the XXXX. we we

financials With questions. it Paul to XXXX our over that, go your turn to take we'll through and XXXX our more provide details Then on outlook. I'll

by I us GM revenue in good in what last impressive over EPS they to team Thank you consistency the cash appreciate of accomplished you, trend generation. morning. for Mary, the all growth, joining look And show entire an morning, back this like when XXXX. I'd the and everyone. you results begin years, and recognizing couple

the $XXX above came grew continued the guided by generated strength slightly a to EBIT record the diluted midpoint adjusted year-over-year For in the thanks business. of $X.XX revenue year, EPS to full billion $XX.X to core and adjusted. November, we of of XX% billion range the in We our of

And by focus profitable keeping growing full the U.S. key we incentives points been share industry basis growth. by market year, averages. for while has XX demonstrated below A this well

program. actions the progress reduce the costs taken we've mention billion XXXX cost to on to fixed the made important reduction $X It's net and

million $XXX realizing the well simplicity by by as reduced was as engineering virtual driven portfolio drive automotive winning example, with For our benefits to from simplification, engineering.

offset and spend approximately reduced And we $XXX year. saw of million from and BrightDrop business growth impact another by $XXX spend million with million, expect along voluntary the lower Marketing other the was $XXX this we of partially program depreciation of These to separation cost the our by enterprise. in half $X.X amortization, were $X $XXX fixed meeting program target million across billion achieve of reductions billion and XXXX. the higher

billion auto with adjusted securities, the dividends We free accelerated returned through the approximately program billion $XX to initiated generated in billion and shareholders of $XX of impact auto repurchase began $XX.X including share full repurchases, of year $XX and cash marketable billion QX. and share cash our flow XXXX

cash roughly with higher capital and to Coming dividend to and our balance XXXX, new positioned with into to repurchases well through $XX marketable rate. the continue auto plan securities. priorities appropriately billion our our And capital return are shareholders allocation of we'll we

$XX consistent Let's get QX company impact revenue of despite the the was into billion, year-over-year strike. results. Total

cost have we However, in do to performance items a expect our number margin that the XXXX in impacted we not did quarter. of reoccur that

production. margins billion $X.X full EPS losing in the $X.X primarily $X.XX QX These EBIT-adjusted billion estimated impacted in units had achieved XX,XXX X.X% from and for EBIT-adjusted million a $XXX adjusted. also diluted We results and impact a strike, EBIT an of were which by the year, in adjusted, impact

increasing $X.X EVs increased This was year-end. in at and EV we company cell inventory. holding versus and billion for quarters production held EV allowances remeasure by a to inventory valuation inventory driven prior preparation our larger in battery Additionally, in of by cell our acceleration combination QX more significantly XXXX adjustment

for Adjustments full billion. year the $X.X totaled

EVs. substantially lower EBIT this to we as targets progress make be on toward expect to continue in our We XXXX margin

by costs, primarily performance North billion America driven delivered QX EBIT billion, the driven adjusted impact $X.X down discussed. The mix and also fixed by $X $XXX which offset lower of and year-over-year adjustments of I million headwinds. higher pricing strike more was inventory just $X billion than

XX% and levels, our of from of to from for our margin a impact incentives. to proactively America within full strike inventory the helping percentage North X.X% the managing the point is this adjustments. X% and Part X.X included year range performance was minimize targeted inventory

ended days target that pleased range of average. were below the at more inventory, the our U.S. the end of I'm which low at to we than that year XX-day XX% and XX industry incentives is XX-

solid consistent to which $XXX delivering thank was adjusted. execution quarter another adjusted EBIT year I for another of million, had International good GM international want QX with the of and year-over-year. entire team of $X.X billion EBIT

metrics due to GM part a slightly billion, $X.X credit the QX million, $XXX EBT continue due to moderation performance. with billion Financial well Full to charge-offs credit strong end results credit performed prime the billion to down were net range. of with $X of predominantly in also year be mix year-over-year. in adjusted $X Portfolio slightly guidance at top up

integral GM were million consistently year-over-year of paying Financial supporting been million our customers, up similar in level dividends and $XXX quarter, XXXX. the part to the in an and QX. the in dealers has our supporting $X.X Cruise to GM expenses spend $XXX business, of billion

look ahead XXXX. to let's So

automotive range, expect the range, based $X.XX the $X.XX $XX EPS accelerated year's in share adjusted an EBIT to the repurchase be free rate interest $X.XX in on including per balances. roughly billion adjusted last price, the $XX for cash estimated which share be range billion share adjusted to and billion a higher partially to in We the flow $XX lower to current And from benefit $X.XX year. will diluted lower billion by cash headwind tax from and $X income offset

$XXX going that in and expect to a I These don't the impact our help us of of for substantial year adjustments this prices. headwinds. macro a outlook improve LG include want contribute from of will realizable from and EV to to reminder, save XXXX to an as inventory, per through cell we repeat impact potential EBIT-adjusted and profitability. EBIT-adjusted some few path agreements. work this additional vehicle benefit items million EV on lithium despite strike net the billion summarize higher our $X.X a billion forward $X,XXX from we as $X.X the profitability the the to value And will amount the lower

volumes XXXX XX market the total around current million with we units. of In anticipate environment, light macro a similar to industry U.S. of

grow share We continue we primarily track as expect volume to from rebound the impact volume. the of gains higher wholesale strike our and record market EV of from

we ICE driven manage levels. However, headwinds our assume to do mix anticipated production actions full-size truck by inventory from proactively

ability in a balance North assume in margins But levels and our to year-over-year. confident also inventory and sustain range. X.X% we profitability pricing to overall, X% growing America while We our to the headwind XX% X% remain revenues production,

and including cost benefit XXXX. track net with of took on to marketing, the actions to fixed similar year, are areas engineering last savings of we $X benefits We in realize full the billion the coming from remaining year the

labor in logistics costs billion due vehicle slight to primarily higher along a cost. headwind by finished shipping with $X.X being higher driven year-over-year expect -- We

overall along lower, on our impact to will cell a compared $X margin largely more EV Cruise driven the to of America volume fixed battery around from 'XX expenses of higher exclude EV volumes operational In EV update percentage This and an gave benefit the expected when EV 'XX all by be with both are North than being platform. leverage and on Ultium you cost mentioned the the given in with even inventory our lower we the be plan of and manufacturing adjustments. of EBIT path points estimated Mary earlier. profitability XX to new improvement an November, billion loss

We today at are an cell JV and produced battery improvement already seeing material plant first costs raw utilization. by better higher from prices in pricing driven capacity significantly cells lower our on

For GM relative South our International, expect we operations. and East Middle in stability America

plan income starting the profitability actions to balance QX China, a inventory equity in pressure in with loss These QX. slight ongoing However, being result in we a levels. QX will likely reduce return anticipate production in including dealer to to China

we year credit prices billion from Financial, used GM the billion performance and returning retail to normal $X and throughout in commercial loan the with earning along originations vehicle EBT-adjusted For with expect loan growth asset the range again to $X.X portfolio.

year of another accruals with adjusted payments not robust example, year, inventory year-over-year forecasting flow, for levels. working free we automotive and capital are higher of last we recognized cash assumed We modest benefits anticipate timing from that 'XX the will repeat tax and but warranty, associated headwinds assume

QX our year. modeling is the a remember flow From of seasonally quarter weakest cash that perspective,

similar million be investments our $XXX expect in capital battery billion $X to spend We of XXXX, of to our inclusive to JVs.

effective the of incremental EPS the the and the reduce range price global spend. will of to billion share mix actual during count average excludes is XX%, assumed ASR, ASR. tax share impact X.X including year impact on the expect from share This earnings remaining to purchased and settlement, once a diluted count XX% credits assumes shares the year XXXX final several the fully share will to through diluted And repurchases of lower which ASR execution guidance beyond due slightly X.XX rate depend average share factors Our last to The we that our to weighted impact due count the billion primarily be R&D the of fully completed. Cruise to any shares below full shares. our be includes below up in primarily lower

levels continued and incentive pricing we grow This are know given support and to help going balance And to will capabilities unique our is demand. inventory discipline. production, build EV closing, In customer prepared linearly. and flex ICE our between we not the EV to to market manufacturing

we about excited EV remain to successful a forward are faced address working and some look challenges them our to we While in actively have future and transition, XXXX. our

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

line Ethan first [ McKelly ] with Citi. from Our Instructions] comes the from [Operator question

Congratulations.

Just outlook. a couple of questions the on

you days Maybe assuming First, pricing, what And you're share mentioned the bit dealer inventory you what X%, I X.X%. individual assuming there? Paul, maybe talk for supply? on can for segments of you're U.S. end-of-year think a

thanks your questions. comments for your Yes, and

say what XX to XX inventory. of continuing the pursue on is would range our question, to inventory of I targeted hand days on First, we're

to provided think, think ability of some has that. team for utilized and the think us advantage job clearly, And I I incentives a good has, that balancing the really competitive couple the disciplined resulted in a of last that's for of with done I we've years. be

As make we performance. similar to that would to generate our for We assumption see done drive to free of the X.X%, call rather think that we about we've that hit I X% we planning -- we last that ensure that's cash what couple can to cash a expectation to sure flow of than an do the for pricing. where want that flow investment targets, needed sure and make the years,

if we into similar get that, that as don't talked can expect we So upside to I the some that years past, see about. we've numbers would

assigned gone So helps. expectation and I something That's top-sided any process. in particular categories. an the we to that through haven't hope planning do we

follow-up. help. does quick A It

broader On on to positive be able you're those how the targets? hit about talk second can per and just still what you for much the unit, have on cushion price the EV VP you half target environment, mix side maybe competitive assuming

is obviously, feel profile. very we in quite about into on a without the variable range of detailed get consistent profit can That's confident low that based it getting that I units mentioned. demand the hitting positive would because target pretty So what specifics probably Mary XXX,XXX say complicated,

up. producing can for we're them, the way we've that seen demand think and So received customers as vehicles that keep that the we we have the

have extent revisit demand see might feel softness that. about So right that now. to to that pricing any retreat, the or But we're we trajectory on good very we we the

Research. next Our Rod question with comes from Wolfe Lache

that to lot adjustments from spending. capital least, and looks allocation. BrightDrop more a being for posture to scrutiny outside the about EV you're applied like like Cruise Wanted just to about first it and at the ask I'm the talking thinking there's

to pendulum has cash growth from Are is about to moved are question thinking these a surface, temporary it kind bit strategy? my the or of just on changes adjustments little like So looks GM of the you flow. kind

I Rod, thanks comments. your change strategy. our in it's wouldn't for necessarily a

in ways more with the think we've continued we progress EV I efficient as much found to transformation, capital. have to be more

a And I I statement correct said options for want across was target eliminated we where have really made although earlier team to the take our I X,XXX I stretch global. XXX, new initiative we'd the selectable portfolio. do as the It think I

optimize sets of cetera. the initiatives capital. our to products ICE we ways new When platforms, up SUVs, you portfolio, all full-size really it's like the trucks, last the look full-size existing of to continuing have in -- But for that investment sets decade midsize the SUVs, look that to last part at coming it's off made the et whether us well up

we're continue cash And to through the make us the transformation also to we to return to go so our our to business, think generate return. do that. shareholders business, of to our with going looking we strength it's right capital And because especially are this we ICE continuing sure prioritizing I allows as say to be very focused would

the we the give opportunity got and can started others, was for on them you we it's look I at BrightDrop but say more on as much GM clarity some real where as a make we was, mentioned to business important strategy. in like business, change as those room, efficient. So them think some businesses it not would the of we I

year. see on do structure continue work still of And capital we're we mean But cost a I opportunity. dollar going we count. XX% to to of every revenue last had make our growth to growth that to

many going we grow. -- We're very in which in to to we're just a it do So way. still initiatives still have optimized

with from question Wedbush. comes Our Ives next Dan

confidence should That's into What you mean you So of get look mean Cruise? Cruise, and sort to the long about we to way that targets think there? from the just year that right? that one I give that you are about more these that how just corner best the through committed of we've term. can are an think this situations. about talk would some to investor I perspective turned

Yes. question, the Appreciate Dan.

are that Cruise. demonstrated foundational had driver. is Cruise a human already We validated we at technology committed is technology, We technology already and than look the to When the sound. externally safer

we've expect things And level technology other is the the to learned than humans on much of that. for We of computers be already do can that to have that be think their are with consumers' technology safe One the expectations. knowledge, people. expectations needs more working what they we to meet the we

transformative the and where incredible safety, local, the you're a state as with to are benefits and how the way that working go do has technology learning was committed, working We're plan the and we'll also federal now as are have looking detailed really we to you So you other right it we as is in roll level at big out first of on regulators as as forward. -- this responders. well

do. anywhere, relationships, roll in weeks. to understand as plans for So the of more we're technology, the technology, as and build we in the that's the hear they make right benefit have we'll going we what the we out about they underlying the our confidence we you'll develop the Cruise But sure technology, plan and understand upcoming

UBS. Our Spak next with question Joseph from comes

lower a is that, and about you factors. Mary portion back sounds of the Paul. big mentioned It charge you going some talked other like mean variable the profit. just positive also EVs, the LC I to but NRV Maybe

basis is give a bit there. profit? you if this variable more that little could wondering was track quarter-by-quarter give will you you're I making towards And something to continually a So sort us on that of detail the positive progress then

for the for the inventory. a cost or to market it's the Joe, questions. lower Probably adjustment EV on Thanks digress Paul. second just on

there on things. any Clearly, you from us So think is not that. important. are of at, about impact -- year-over-year the metrics a I couple not of an our we're looking journey. that Number a metrics think when in benefit X that it in the But one, isn't they're that's for

first costs positive. about forward. more lot is variable from a going lower so how forward, profit So mainly EBIT profit not is to of a material to relates contributor This think benefiting and sort we and that scale Variable that. going

And go that going we'll then margin about forward. when we the be getting And XXXX, that there that's to you isn't in mid-single-digit out is, carrying really that. would expect necessarily to we target call if think inventory as there

think it's calculations what not is we in to journey But going our [indiscernible] our be.

and question surprised appreciate it, along. part What's the of think the continuing question I on? the not your but So question? about your sorry, second the of by -- part When Apologies. we're to was march you second

to to it Yes, We'll tracking. sure give our Not on on points. as disclose. Oh, when to continue we'll we'll continue data talk but quarterly about that going update specific on as journey far and confidence yet, we're do progress. our

question next Our Morgan comes from Adam Stanley. Jonas with

the strategy. and may the of R&D to on follow-up. given year confirm dial market? integration, up changing think Rod's first portion your to Can CapEx -- you Auto X.X? you dedicated scope have EV that to on battery, follow I this is the vertical what question one projects, want back one reason question, Any to Just AV forward that

the you'd most then of in whether comment, recently reaction was then spending follow-up talked absence because barriers said the the think will on know I again, Musk think that China of in to your was follow-up but well that Elon demolish said EV you I trade changing. in about and agree. was wanted if years Curious players. that recent past, you've I to my Western half, the just And on of over And your that that,

Thanks, Yes. Adam.

we the been our And has from already already capital spend of built I Remember, said perspective, mentioned, as architectures So with is capital the a capital perspective for an strong from really majority our ICE that Rod, and on build of portfolio, toward what I the plant. foundation, ICE to EV. the all have deployed.

for is a just to to the Equinox this an very truck, us the mentioned Traverse, as continue to great vehicles the from opportunity full-size with really capital few. and do So optimized with just ICE name portfolio an

the as market on point your integration. infrastructure technology of will and we continue capital evolves To evolves, evaluate level our vertical battery as deployed an perspective, to from

done the and on done form with that well and we've positioned. and gives we've the factor prismatic cells, a X, cylindrical think X LTM motors plant joint and X work us X, I and with with the plant ventures electric then work think different on with we're Samsung, I our fourth is --

as move we forward, we'll that. But evaluate

there's need. the down capital as with really think overall get we initiatives options can but we number we see, you to are all So of still I there. the working have, that And programs take

if helps. hope you Adam, Happy that there. have additional So I questions

And have about We China, features, competitor. focused I have at competitive Elon's look, vehicles right base. any to the designed the beautifully and then right so need much I we're safety And the cost cost make we why comments base, sure that's a on discount to right we have do experience. customer it that on think, our don't and

mean you barriers, going Now between comes consumers, Chinese and any struggle need if playing compete. there is the tariff when field we a a to industry nontariff playing do level I mentioned field. not level to a where point it's

against any. cost playing field, and structure up put So continue that products we give us our I'll a to level improve in our

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

seeing coming in line wanted from tectonic strategy that fits to we as Rod it are there. the and China, the in particularly starts get seeing at shift Adam just will competition, Mary, and follow But [indiscernible] I we're this mean alluded have to. here. time, on I Adam same eventually and up technology,

too for of will how ago. extreme up set the have pretty business strategy be a and But few You pronouncements shifts not been these years recently. more long made sort

strategy you you the the from in X shifts margin been potential Can the focus truly changes in and as past of where things China, the is protect return really the of where of curious, highest down a move It's from make think land position. might kind shy the strategy will in and which years real years. company, in big think rebranding sort sounds out, a but to include heresy we and like position just to a position the approach of Europe. it a the be like of which maybe making for like of exiting exiting in best might profitability XX of for I'm the highest might business years flow line, to and maybe Cruise X about So haven't years really X where be cash to position weaker XX taking new company strength sort to XX X about instead

John, thanks to we for regular the a continue question. the And strategy basis. evaluate on

discussions robust have leadership We our the Board team. with and strategy very with

agree an with changing et it's that And software, doing generate from to And mentioned, whether a to is we'll EV, evaluate capital and that we're whether strength. appropriate we're that. as continue I autonomy, the of position opportunity to return. you you deploy we going to and respond have it's do cetera, quickly world the where

for participate the at said and when General win Europe, win-win-win, a in And like me, made -- a we for actually win time, excuse we Motors just we that, the decision happened. PSA for for we it looked Opel that. China what be because did team, warrants, for We said the the a we or and at has a would win

or in earnings here. have in segment. calls So to making top the to shy We maybe right if and expect to calls protect that the our America. now leading mentioned years, we're people wouldn't been several we're ensure tough most we profitably for think that the have, it's I business whether away thing North we that for on strengths going not it's do the markets we've from affordable the call, we taken the quartile,

tremendous in a South of from our only international view have business point mentioned, we America not China, strong competitive technology view. there's a but of many markets. point a of Paul And changing as in

well, It the opportunity We play. that do we But strong can the evaluating a tremendous if to that's has off profitability and is in to a return there's we're goal. so is growth future right place China. that ensuring investors. think and table for a right And the nothing GM generate our our

of of comment those potentially volume one here the I dealers here vehicles. are hit on bringing plug-in capacity those maybe And clamoring sneak the kind sort U.S. could there to in you just What if follow-up U.S.? of hybrid could this I to interim the for gap. fill know or the

Yes.

in are our the I from need compliance dealers -- we to portfolio. to are those the at focused be where delivery a to going the very year, EV we think bringing time going in we're get to This strength a are perspective. We as see them of able

the So share on I'll capacity. have more hybrid to

because, We'll to. it again, capacity adjust targeted the apply the we technology. have We know to the we're segments that going

hybrid EV But tremendous we our calendar think customers. we of opportunity getting the So to I need up year availability And focus. perspective. and what 'XX, the from we'll think for as growth we have is we've to got do flex ability the free products a to

question comes Ryan next Brinkman JPMorgan. with Our from

better consensus are in outlook stems potential than of markets How expectations internal think cost is of industry-related would you versus spending, versus such from Obviously, a for factors reduction, investors guidance do Cruise have you company debate the handle from to for volume magnitude that different company-specific of factors the you 'XX how stems matter much the think do as pricing naturally on as a much such far [indiscernible]? the structural that higher a lower outlook expected. different or stronger more

may factors, on your in You seemed also positive be line. industry pretty more pricing but comments

guide really your meeting How how versus this control? like in about not thinking sure. your out control of your much 'XX So of factors to come you great down will under are

years. to pretty Ryan, a I'll the last for consistently When think for it look we we're have question. So you I macro the thanks approaching take the few at at shot backdrop, that. what

to I of expect achieved about XXXX to would what So we total we've of sort X.X% to pricing repeat. across XX million the it that A is, X% and board. a say, a testament talked about we pressure overcame lot in don't SAAR, of

done be up think that has those Of And every of of forward. some as going there course, down there a will some things the challenges team pop things are overcoming those and I year. good knocking job

with the a against feels some there pricing bit macro it. side in backdrop, of little consistent conservatism the So on that

ability on it execute. lot a think to of our is I

lot had And we a have of challenges, as Mary mentioned.

a of producing, I well year she where is lot with that as as our that year I big assembly our to think see response customer doing work 'XX we're it talked a think of But the us. and the learning we're of this ramp executing. in EV about we EVs for is on control. And module as a was the the

on full in Okay. just Cruise wanted 'XX lower ask Great. the starting $X.X with I too, billion to year versus XQ whether billion maybe 'XX figure the spending $X or guided of the a time has billion. hasn't of the but regulators what then far? $X.X review. passed, of rate lot recently realize from I so run response been the there comprehensive been the released And to

call, saying business think you've it's guided to I now less million, a later several X then significantly billion. than followed on update Previously, maybe Barclays by or $X potentially the but at non-Cruise, hundred day the

you So that of review at the for were still point. waiting course,

there billion prolonged several higher the review hundred Is anything operations? Is that could the more a reception million? being to lead commercial read of suspension to than into maybe $X the of

on, or at the right, And then that Cruise had than just so. I Slide it's [indiscernible] X.X the of greater or is cash finally, 'XX the outlook year-end, or billion EBIT for in whatever $X.X XX think,

there. So on just thoughts capital raise, curious the

from the in there's a positive. response been regulators there, first saying me has but Ryan, let by lot

to transparent and continue So that relationship be build that outreach -- them. and and with we'll have

into focused [indiscernible] lot situation. engineers us technology, sure driverless the -- to said on went very we We have give in work work. allowed X too credit that read did I of miles we million for keep a our and have to and already we doing co-presidents, I going in miles. You much the what And learned software clock and Craig the are making shouldn't really incredible talented staying thereafter a shortly got of

came in demonstrate year. the really look the remember just were on opportunity to lot point, one they change where of about talking you to really focus to one was this opposed costs cities strategy it it XX So as going city a -- to from, to at cut

And of recently been standpoint an able who people that had were those exit so we there were a operational added lot to from employees. more

the I we're a a right relationship focus once on we're And And it a the scale we'll going doing opportunity do go clearly at a perspective, be. in would get customer the have where look the to think it from But and this then technology. by cities, sure to technology it informed regulatory, there. the consumer, we well make is we way from quickly then

the So other than the went read we opportunity. saw $X work and billion and anything into don't did the

Our Barclays. comes next from Dan with question Levy

billion to the on target $XX sheet extent have pro cash put billion to is balance end cash. your free gets billion Two forward like To willing questions on And $XX have plan the what cash billion cash. One of you're to buyback to share adding of $XX $X that the something you to XXXX. you forma is another $XX of what if balance are to billion? beyond balance

cash. And the on They're roughly second question is $X.X billion. on at Cruise

that gives little cash. of less runway year you a I think than a on

for So plan funding Cruise? on what's further the

I'll further Paul take answer and that, I'll have other at question. the on So funding the Cruise,

road the internal As externally Cruise needs. get map, to plan we're it we'll overall in or we'll determine sourced. And going of relaunch we is how funding detailed the then the evaluate

correct. cash I sizable obviously would question your the increase simple cash, think on on balance. We a see is Dan, our And math in

$XX.X business. about invest stance the talked allocation is the billion capital which this billion CapEx Our to of And $XX.X in year. we've remains same, to

have cash really that shape. or the that and no free is billion and on a call to we We And there's been think look of, flow. sheet the $XX cash making our I about in balance stance streamlining hand. it, as priority balance efficient at And to of billion $XX drive good change sheet,

returning and forward. demonstrated of shareholders. And cash So a to going that renewed we'll maintain clearly, we've prioritization flexibility commitment

is is the $XX billion, that Just billion, or a that $XX clarify, a floor? target to

we when we lower we us, behind been November we've of range. operating imagine as a said that some the with quite of dealt That's as than at more as years a the share or floor/targeted we we kind few lot Obviously, spending, bit But our the last uncertainty of over carried that uncertainty. CapEx balance. felt in announced lower comfortable -- with repurchase that

range. to XX very feels XX So as comfortable targeted the

Emmanuel Rosner Deutsche Our from next Bank. question with comes

profitability the to ask achieve I goals. the to required about you First scale was hoping of all,

that So from November, the back think came XX% XX-point when you year, margin shared I particular, think in I goals in improvement those this of EBIT scale.

So if like of for curious a you're terms enough of are to you units and planning in get the is bit costs on shift counting that the lower to savings? year, XXX,XXX more you XXX,XXX that some a of I'm maybe scale? this battery

the And mid-single-digit EBIT question year. next on then similar target margin for

these you I targets? some from of scale -- it was to unit to of need kind think get to scale. come to volume get going the of What piece

questions. the for Thanks

XXXX that gets the EVs, response getting the we've where there. range we I a think I numbers, to what earlier point about XXX,XXX from to XXX,XXX the On question they're around us XXX,XXX is low of kind And in variable consistent articulated here. the as with comfortable mentioned the profit positive wholly to feel

kind that but than much demand component, But than other a not is we'll going that's from 'XX to it it's stand, is a going smaller just customer of where where walk from We're forward. 'XX to 'XX. 'XX require growth to to is say growth. component to Obviously, commit and we it the see some will of

that material earlier we materials that make we costs, inventory were lower start keep meaningful benefit that mind other with costs. in the I we the built the the because in it middle don't raw cells And to didn't point part get lot higher until from if on see of raw a the to have year battery of

cells. today, So on while first in, going we're first out the producing we're cells

before So hope realize some getting here 'XX. annualization of [indiscernible], a cost have not a since in raw a helpful. battery bit vehicle we'll $X,XXX I benefits lower little full lag we that we're have of about we benefit also a that. XXXX in that's That material

situation Cruise. like of of of spending, -- for helpful. of year. very rollout? that some sort spending? Or result lower considered rate this the new temporary sort currently as run could that and billion on very quick for a parts The be it a Yes, the Is $X like is testing in a One follow-up

consider much be, more I year. over needs spending of what to we that for will best more develop a couple would Obviously, plan the next so it's our Emmanuel, as years estimate it right detailed now inform this come. the to

from Our comes Evercore. Chris next with McNally question

ADAS introduced Mary, really software Cruise, I and Great and just in maybe XXXX. talk numbers. Super you shift to quickly. advanced want gears

Even You I of [indiscernible]. vehicles, many in don't passage, out that we you year, put for tens thousands. talked time middle usage million but double almost last many the if miles think of it's XXX about not numbers, too

We also read been Cruise has Ultra now installed.

Level Just top for X,XXX high slow charging X+ for pace has level, very versions. from a been product? providing XX,XXX this Tesla for isn't decade to a anywhere

becoming this guess is, Cruise. for point X, Traverse I shows a I Super the isn't think, Slide only Even big one of the question opportunity highlighting revenue? miss GM this the for additional at launches, ICE

when we update at more mass broad a wants fleet? technology just sort could start what a So is scale see your probably to everyone of deployment across

Yes. Chris, the appreciate question.

in models. the my a frame, quickly. don't the across of number not should much off of the in hindsight, it it we I think back 'XX put head. It's more I top think time have, portfolio have I

that. of Ashish, on models right portfolio it's the provide a number we now. can across But

As we to year added will Traverse. launch this the be Traverse the

a -- XX%, single would it's I a which, they it from the car they want we're never Again, experience, where seeing strong would without high of they interest extremely strongly on is experience technology response would my think they say pretty a in or for once customers customers not vehicle, over it technology. their XX% rate prefer

And to it's capability, we going adding adding We're have it's more trailering. whether continue way, and change, been, committed. roads whether So along lane the we're more develop. to

point, And So And to vehicles profitability we committed the a it robust already. And continue on, to get we and benefits. there's do the will that. more we'll that. can that Super better have the And on to to your be. stay and Cruise, quite we're are it bit done seeing a we frankly, plan improve provide

Or every you on to add-ons? just premium rate it sort there's just charge it is more and RD&E. in evolution meaning premium like speed, -- is a it thought that's you GM as a technology putting of compared No, said, Or cost to it just the the marketing, is a of other product, like you the bottleneck? it vehicle a terms on of of

an to cost increase, it it but be that would So vehicles. on obviously get could more engineering

to cases, we that had vehicles because it waiting down vehicle or as of getting The In Super build we possible. at kind building committed No, slowed some on to Yes. shortage many make with are if Cruise. semiconductor [indiscernible] to all it on a standard. us planned it

So down the dramatically technology. we vehicles. on very to the are getting We've taken cost many committed across

sensors in cadenced really as there is in my new a it required but good And you as -- that required quickly value. we're we're vehicle, as and it's doing deploying can. So it's to And as when opinion, engineering a we with some possible add really fashion. a but quick just it very

from comes of the Tom with question line RBC. last Our Narayan

all the to to in sorry, here wanted good XXXX the a born Just I of points bridge -- on got kind question. make sure XXXX

you billion, is X% $X improvement, third EV lower mix. guess, have, slide, X.X. share X.X%, I million price down to the in were You down the cost higher guys $XXX quantified savings, margin Three Cruise called labor market items out and not gains

X get last we Just for curious if buckets? of sense those could magnitude a of order

modeling at to expect I'll that we the as details. Tom, about, stable suggest the be any down X the of X.X. we day, we and commercial clearly, work off-line, through talked end market, pricing But to relatively take that

that, years been and doing about subsequent the to we've about as other will lot to continue gains thinking into of we forward. And Investor we sort Not share the fairly about Day specifics of say, for forward. how about what to going consistent on a going market later EVs, last few get talk going come then we're to than calls

on walk given level. think detail overall program I good the we've on vehicle

changes typically, are OEM, they to say, production plug-in have as to that suppliers, case, move And get for monies or follow-up, an say, Sure. production EV a so that, to let's levels, you there quick of hybrids paid cut let's have Okay. you, if what -- in this EV, if components. right, when

in if were something to, those XXXX that guidance? the with if supplier concessions EV curious hybrids shift are you production let's plug-in those or Just say, you've reduce to envisioned --

we very would relationships our with our very, them. They few where in annual works this look year us any to those at always been, team I help, a different. need no patient challenges closely do budget last because been that forward. and both that So And very have -- a say, volatility. to And situations over had efficiencies think and we've willing the of got great we've process, suppliers years Tom, our we've with in going and I lot we is with

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

Thank I'd very your much. close. to you And couple of thanks, for everybody, we just questions. thoughts a like before share

positioned are ICE our our well high-margin cost and to segments, to discipline we engineering, marketing and and continuous have supply improvements. Fundamentally, to we manufacturing expanding growing process our in improvements portfolio, strong success design, year, EV a chain, thanks our believe

And in I can must you the cash we ICE. a shareholders assure to are will. business prioritizing of part plan. of our addition, execute In return the we know 'XX, on we the as just basis consistent We we in not execute every

you thank call, continued for So today's your for support joining safe. stay and and please

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