General Motors (GM) 23 Apr 242024 Q1 Earnings call transcript

Good morning, and welcome to the General Motors Company First Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded Tuesday, April 23, 2024.

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

Thanks, and good morning, everyone. We appreciate you joining us as we review GM's financial results for the first quarter of 2024.

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

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

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

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

we that the our them. Thanks, learn XXXX. In executing good priorities we faced that pleased January, everyone. I'm on all against well build is clear to in very XXXX Ashish, to morning, strength the designed challenges share outlined for team from and of and are

and world, share business. of very are the on which to focused advantage Around taking means without full our growth portfolio we product unprofitable winning profitability, grow chasing

discipline. our industry-leading a are North our the profit EBIT seeing our in the XX.X% pickups, portfolio SUV delivered stand margin business, of in we to fundamental The operating Chevrolet, strengths out. Buick, quarter, momentum In pickups, in team America, in the full-size overall midsize and truly GMC improvement and we're Cadillac the growth building our EV thanks

down. X.X competitors GMC to our incentives sales that average, market share shares and in business. were our with pickup and the with U.S. closest than We our combined X% our whose truck the sales much XX.X%, especially industry again year-over-year by grew Chevrolet below quarter well the share grew points We retail remained during in market grew and full-size lower retail incentives

the And are truck in simple the Those GMC the function, March, purity execution doubled MotorTrend's In not and Canyon of and of Chevrolet Colorado mine. were words, elegance to value. the sales year-over-year. segment, its midsize thanks pickup we fastest-growing

We market EBIT including win us customers, small the the share gain we also excel helping continue our are Buick and to new grow Trax These with to and customer will Chevrolet retention. vehicles SUVs, at continue Envista. and new

powerful GM had years. the highest During consecutive quarter, that Global for loyalty X announced That's Mobility competitive a the has now any advantage. OEM S&P of

momentum our business, profitability. we In building EV are in production and

For example, is have assembly installation and good months. track. lines on the we Quality by validation X new very production increased high-speed module to improve. And last continuing is over our and module the XXX% of battery

the capacity We summer. to are by the double projecting current end of our

EV sharply a that in translated our increase production rose during EV into dealers customer XX% the retail and delivery. quarter, year-over-year

updated the and all since For of are now EVs with Blazer Chevrolet mid-March, example, European in delivering we quarter. improved Cadillac LYRIQ brands luxury And outsold the from EVs first software. the

All of processes. validation including quality made end-to-end from are increased our the we've the we our and instilled product benefiting improvements programs in have in rigor software,

industry customer we services will help are importantly, experience which truly the execution, software-driven executives software and we've products talented offer. from bar our of More engineers suite the and hired for and the and tech the design us raising differentiate

we've million the more Phoenix more a than step at making logged on This Cruise. building We're for mapping, pause. validating road the before critical is the system gathering information. back miles driverless road and our improved updating also is team X progress The self-driving in upon

progress. the front and performance software and we're I stakeholders growth, regain am and our momentum. guide We with our new ICE execution at Safety pleased and as trust and building organization's are regulators remain in our steps our EV engaging frequently to will progress taking we will performance, with Cruise. momentum in center regain

I'm all going. momentum Their really our to EPS keep leaning cash our full flow for and GM guidance. of In tenacity confidence addition, adjusted in give to proud team stakeholders the year automotive raise XXXX commitment very helped the of our and free and us EBIT,

redesigned starting Equinox Chevrolet the Acadia in this business, segments quarter. ICE and our GMC high-volume all launching In Chevrolet are Traverse,

America, margins Chevrolet models. higher So than the outgoing are and they the the South SXX and Spin in have

Then and will arrive. and Later include a we in new this upgrades Tahoe the Cruise. and important to summer, and that our Super Enclave GMC improvements, full-size Buick will sunny to riding offer design technology cameras, They redesigned, features make include styling Chevrolet the Chevrolet safety suite SUVs. year, the enhancements security It's more. Suburban first best-selling handling interiors, Yukon, connected Enclave and of tech-focused

installing customers begun Marking next-generation already our at wheel. Wayne Corvette wait behind plant produce performance put to team Fort coming, we've also the can't our And and pickups. ICE assembly to have ZRX our equipment the full-size we unbelievable

plant, our It of also platform. like shipping on business, Equinox year. EVs excited In Cruise sales will because in in GMC arrive be affordable, and EV the all Ultium Cadillac long-range market. offer it scaling we're will most production Chevrolet, is Chevrolet the EV Cell Spring and The this Ultium showrooms very our Hill, the and will the the Super EV quarter, through

introduce EV, Silverado year, EV which We EV Chevrolet Equinox will grow second series volume the help the of half will share. the and more then for the and trim Blazer the in affordable

in lineup the expand IQ. EV adoption and important is higher because the of OPTIQ than This the Escalade is in year, luxury segments and the more to resilient in will Also second EV Cadillac market. its the include broader half

about Chevrolet truly able best-in-class today highly even the truck to go of estimated EV EV that is the than comes GMC and anticipated median an ways which most RST. pickup by range the of better the aerodynamics They close, road RST other the of and systems, were road EV we XX% By the XX vehicles optimizing to No Two the the are possible Silverado increase our and even launches Sierra it's to range today. Denali on ICE miles in matter on and Denali XXX customers. further. miles, are battery, the to

ago, A took road a the XXX they X from at to speeds, temperatures, on miles unpaved drove few the elevations. different it do: managed different and customers at RST Phoenix. weeks At they end, and travel single testers to freeway And a Vegas charge. gravel on roads, drive like Las

other a electric towing. The trailers. Silverado had Mountains It's charge, a X trip journalist stopped the stop One X trucks Truck the Work truck towing Rocky XXX-mile wasn't over Silverado EV even drove on EV while times. X a to story It and while for to competing same to battery once every competition.

technology. and products. tow Chevrolet hands-free features This engineering to while that Cruise, GMC driving allow design of also drivers functionality Super the them them are the pickup turns kind is motivates one excites brands using differentiates several of into our only customers. is the just exactly and This that our and uniquely that people,

sales are have is hearing confident EV the we for trucks, themselves. feedback for formula the right It's the and from and on we're same GMC seeing, early those Based continuing production the we're that momentum speak filed move. ICE and to results with customers Chevrolet dealers, scale

in matters transformation. We know every transparency that

the updates planning you Investor achieve as production, Day So Paul for year, profitability milestones. fall, sales at throughout including our and this will I we give EV our regular and we're

and drive the All transformation we possible of made growth. these by great ICE made investments and EV to products were

a As historic was for result, our years. spending several above levels

to to results, focus free less and and the that Now largely same ways our through an cash see and the to the discipline, starting for results turned capital with foundation is back enhanced finding has focus we're customer. built profitability unwavering on flow spend driving

some this. You're already seeing of examples

capital a winning how simplicity and costs. example great Our improving discipline with lowering efficiency of is we're

next-generation EV as profitable that another. XXXX. arrives late many electric most around is when examples one There will and deliver will The it more Chevrolet vehicles in we the Bolt move capital-efficient forward. affordable program It's be of Ultium-based a

for turn like you over our the to I'd to now guidance said, Paul and calendar that results With higher the call through our new to take year.

We're joining good all financial year, their to strong to morning. set hard appreciate start the for team deliver all in work of Mary, our results. to Thank like thank this you and a you, I I'd another and us off helping

experienced the built consistent guidance. trends we quarter, X.X% We during pricing below X% headwind year the into full to our

products strategy our down by For for million profitability go-to-market that and disciplined year-over-year QX, margins. and demand pricing about a was only $XXX driven prioritizes

pricing consistent. in relatively so remain we've And far April, seen

the mix of comparisons quarter. in we last segment our from price said, the lap slight shift as get industry year. taken experienced That full-size truck increases during QX The U.S. away retail tougher a

However, truck our volume customer to which strong franchises and share we competitors, increased speaks lower our with loyalty. than and our our incentives

sales Retail decreased than by XX% sales main X were factors. more fleet up X%, while driven

First, the pickups. encountered constraints our some and fleet we deliveries production midsize on of van timing commercial impacting

We half expect in of year. recover to volume the most the of this second

higher us produce year demand. made trim our earned strong to a that SUVs more last to strategic customer full-size satisfy the Second, mix have to decision we full-size per retail more vehicle. SUVs revenue our Retail compared on sales

our continue balance on a We we'll with customer fleet and demands and are to strong profitable but growing fleet committed focus retail business, to profitability.

the of ongoing have year-to-date support open flow retiring ASR, remaining another the during shares now cash the XX existing repurchase our We to approximately million market share $XXX stock since generated healthy $XXX beginning helping incremental We year. the of in million repurchases authorization. million quarter,

fall, million shares the first last we addition, completed of In X the billion in retiring $XX ASR QX. tranche

XX% we X the diluted share quarter billion, where were was fully X.XX Our ago. down of year just end count at the from

in the adjusted we cash billion the guidance in and to thus range the billion free adjusted range, far billion EPS to adjusted $X.X automotive outlook, the to EBIT $X full year $XX.X to our strong diluted flow Given and billion range. we've $XX momentum in the confidence XXXX are to $XX.X raising seen $XX.X

revenue America. billion to driven grew wholesale Now into QX by $XX North let's volumes company by higher results. get X% We the total in

in months, revenue XX% resulting growth, we've more that over the Over last XX of period. consistent than CAGR a achieved

We profitability mitigating strategic diluted ICE by and was and labor up our in X.X% continued driven EV the well EBIT-adjusted consensus strong EBIT actions, $X.XX also higher achieved of $X.X cost margins above costs. year-over-year improving EPS adjusted, EBIT our and effect performance, adjusted. billion in adjusted

flat higher primarily QX XX.X%, flow wholesale free pricing We capital production working of volumes and adjusted, timing. of cost XXXX $X.X driving billion delivered by up automotive driven management and inventory containment. through $XXX ongoing versus improved million year-over-year billion, benefits up steady $X.X QX achieved from with materially America EBIT adjusted margins of of cash EBIT-adjusted combined being in North

million $XXX spend. from from we marketing benefit the During reduction and program, our realizing engineering lower incremental continued quarter, cost to fixed an

Our fixed the XXXX. lowest cost achieve of net base amortization of are depreciation is $X billion And QX track since we XXXX. full its on by to at the and end

inventory our levels target days. ended slightly to above XX- XX-day the at Dealer XX quarter end-of-year

positioned the install new year we a we well to we equipment. QX inventory for However, from in and incur planned our weeks believe standpoint prepare of future seasonally of head launches full-size downtime are into part on few pickups to as stronger an a and

EBIT we International profitability to expect million, was production better adjusted down to inventory a slightly focus inventory lowered Having China dealer was This was reducing million expected $XXX we made on levels, and QX progress continued breakeven, cost year-over-year. due year-over-year loss levels. efficiencies. QX. is million production to down to in $XXX equity return balance a $XXX GM normalizing, as of income than

in margins. strategic by year-over-year improvements drive and driven cost volume decisions $XXX beginning adjusted $XXX launches down in efficiencies lower America help protect excluding will and We profitability International QX. million, GM EBIT equity income anticipate product new was million in to China South further

$XXX QX portfolio $XXX of GM to $X.X a dividend with continue billion within growth the GM year with last billion quarter. in to paid to line the million, continues tracking well perform full guidance drive and year $X and during Financial to well EBT million They adjusted range.

the in more activities operational in million down and Cruise QX 'XX, $XXX reflecting a million expenses $XXX reduction our cost from quarter, were plan. focused

while in As partnerships Mary courses earn they is closed customers. and trust testing mentioned, build with and Phoenix, regulators Cruise to resuming and work in with along simulated operations environments on

$X.X to full be year billion. expenses We expect around Cruise

on: to focused now the important EV one move Let's we're profitability. of metrics most

from see We year-over-year and profit EBIT we improvements margins scale, variable benefit in mix and continue sequential to and cost material as improvements.

to they JV increased year, we plant ramped for year. have on as down last X lower driver efficiencies, ramping the even installed plant Since based and battery with cost battery cell significantly in the from And production came a reduced end last the material is year. full raw costs, cell being Tennessee costs is faster cells expected first the lithium. other our large of of significantly. learnings And by plant and We especially #X made capacity reach

Collectively, are improve factors these helping vehicle profitability.

$XX,XXX example, seen year-over-year alone. LYRIQ than more of have For cost we in savings the

we continue meaningfully. and ramp, tax our As to from benefits expect see to to production absorption credit grow continue improve to we the fixed cost the

XXX,XXX wholesaled EVs achieve We from less quarter the year XX,XXX volume on and remain production XXXX. our track up Ultium-based wholesale for unit QX, of in than XXX,XXX in last to to X,XXX first target and

year. We as will through profitability share progress we more on the EV

assume our received pressure Mary recently the I adjusted XXXX on performance to which would ICE Blazer and for we EV on continue customers. pricing, for And as by We also both well EV. efficiencies. the like and but business vehicle EVs other touch action plan is pricing mentioned, cost additional we guidance This offsets been dealers has gaining to work and momentum. and our XXXX, some through in finding on

pricing variable clean for our get positive in achieve new profit are leverage purchase to they see value We target efforts, this action energy because to performance, drive will combination our or of when that mid-single-digit credit. expectation that points. a consumers the the positioned our multiple XXXX. the offer of consumer unique year we chance at margin of price change portfolio half EV second $X,XXX in confident and the range EVs them, to and tax supply customers remain And Importantly, our chain doesn't our appreciate well design,

want our reiterate in much more I be along we closing, capital. deploy allocation to intention consistent with to In our capital framework how

is and opportunities. include our We These EVs flow, EV deploying transitioning are transformation resources manufacturing into efforts to funding cash in and battery generating future products, strong which technology. capacity investing cutting-edge growth

us particularly continue and more to will you've the be seen adapt moving to decisions market, made At the spend, capital dynamic to our we with time, same bold for do EVs efficient forward. something

Our November. XX% the balance peers ASR GM last its stock sheet the being response positive, we announcement. has been returns, on with nearly And shareholder And the overwhelmingly strong. outperforming since remains executed and up

historical significantly as seen and since turn have other are improvement in to relative We ASR, our as companies. a multiple well we undervalued about P/E still competitors the our X but average our industrial

lot not committed and of improving that know on our we're and satisfied have to work a Obviously, valuation we do to remain it.

cash execution strategy As our improved we move forward, ICE with we Cruise returns believe the GM tangible along our EV stakeholders. significant by generate all help as as for generated on will on strong well portfolio progress

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

with [Operator Instructions] line Spak comes question Our the first of from Joe UBS.

just remaining just want on pricing First the I Paul, it guidance, to now for the Is negative the to X understand assumption. X.X% quarters? X%

And you of a things then mix. on mentioned couple

seem pickups. through potential the positive And they the Both EV turning like headwinds higher you on some But hand, smaller should got other of also the I trim think year. you have then the variable those in mentioned EV profit second in crossovers. you've half. So then sales, continue

So the just little some, to bit should improvement how through those I year? see I we want as a guess mix all we better move in actually intersect. maybe understand net And

day, the assumptions. X% of our to the year the rest is in the of You're right at that end X.X% for

the So essentially, we and in taken into what it the full that we year. built guidance QX the outperformance have saw done with has

assumption much has changed forward. going not the really So on

half in. lines, also at And the So EV that mind, look and of we've we've some in. second got built headwinds in seasonality year, those pricing coming keep more of the look in volume got we've you trend when you at

But going was So guidance we the of feel same it this when put move still like and our the ahead out for as up a take are. principles initial from good to go sort guided we year where by forward. we we're

goes, been We've lot. strong. about So obviously as as trending mix fairly we've far a that talked

some increases We that year. took last price are we lapping

So more comps as a year-over-year get I said, difficult. bit little the

holding think to this well. as fairly the is up momentum, I with market we'd before, in pricing that a And take guidance up we we But we said position continuing again. see expect if be overall,

Okay.

on emphasized I the operated with As just you question the But an and improved a relaunch, second manually Cruise, Mary, understand mapping. system.

leveraged So a maybe you on just and redone. could us give more how stack the little of sort color been much being of bit technology really is existing what's

side, need does assume cash on bounce then million? the financial towards capital down relaunch? about guidance any just the that what to further And the with And $XXX steps

back Cruise, first, that Phoenix. very we're they're Well, the in excited on Sure. roads

said, but and supervised to progress we'll to we unsupervised. then As then is it manual,

tech to and the made we've what stack, pause improving decision since is And we core work the been to it. continuing doing

safety strengthened the probability of to type but the make actually we would continuing sure we've system say, So by low issues. I comprehend, higher severity a

recognized I the right more. having and transparent, also even but what levels October well do than Because at that realized regulatory average the not driver, built think and of an as human we issue was with in the safer being need agencies mainly to we externally it relationship the we was we though then although validated public all an technology demonstrated as

in are been excited about on. making And as why going we've sure -- That's we're we're so back what But to we're where it. date. believe very focused and we're the technology to that's up in Phoenix, we very much

budget getting works city, as demonstrating from plan we that in back said on we then past For and the model one year the that it's what the expanding there, I've of road comprehended to we in and do this in believe have. the

taking at fund few right options a investments business, as as including well. quite -- the we we're you to how plan potentially outside now, exploring outside then look And

about more say as we'll move the the we on that year. so to But be I'm very through road. excited to have And back

That believe last whole the this period October. since We're technology. We in stop it even better. through making didn't

Our question Citi. next Michaeli comes with from Itay

for Just Maybe first me. for X Paul. questions

Just that thinking and targets the next was about, think volume think new can you your couple improvement I last quarters should we mix the remind you about spoke that margin and the crossovers of us refreshed it prior about quarter? ICE you're of how how

the expecting XX for should go strategy maybe tell maybe of of that X over months? Mary, the software for platform hopefully and then and software the goals next be to kind back us some And the to we Ultifi

as and our question. both profitability Trax, Thanks prior are new were -- really Envista, for the seen, we've for their well really of and talked And the the crossover, we've it's which the quarter, Sales about On XXX% the upgrades. of Chevy improved particularly off. up take Chevy Trax us. Buick significantly performing from the before in

of considerably. well. prices, I our and pricing trends some those still are by muddied that average fact in up on But are the transaction pricing truck So SUV think, our in strength seen crossovers going we've the volume the as

So that, built to we're into guidance and our portfolio, the we continue to and today. it's that's think additive strong updating that accretive

we an our to an as it though, software through focus changing right the we Mike And move our relates on of as as beyond, stepped to software the move year, development really validation reevaluating the did and more past incredible then as job strategy year first, strategy team and over forward. back process and he brought strong as than software a having dozen incredibly the senior people probably level well as the at process of in

I'm confident. So very

issue our we We strengthen of And now. allowed had year an vehicles. of number to Blazer of we've consumers that's the paused us moved upcoming that as limited with this at beginning the past all the software where saw

the with do we couple and across goals of we're And time, are a months subscriptions our in us then I'm multiple to gives the are, with that with forward, the as focus that next then the and quality. to as on launch that. go software so And we path an new and vehicles, on And for quality have, on goes progress the where very opportunity But showing team with launch to it's growing more ability they've made. pleased we to services.

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

ask really our point, a noise Mary, for question to I one on geopolitical just China. this relationship and moneymaker basis U.S. At strategic sort lot a wanted relationship of, of on not obviously, with or a there's you. the China. it's And

time about business? over to do over few I'm there it just selling potentially that really about of is the the closing alternatives of curious, think context to of you next thinking or portfolio kind start sort How in years? the broader the strategic

Yes.

with and the resiliency really years supply Just last over and the issues have and chain everything chain, chain strengthened of with just then chip broad continue several that. then shortage happened supply to in supply with general, and that's around our the the issues, we worked do COVID we'll

to believe China. global But but We over solutions solutions, term, to over electrification growth. strategy. the that, term, not as advance long it's that medium our We're have our substantial the we're a in committed draw local will market continuing we cases, only some

And as account from full this Right launching because China GM's PHEVs QX for EVs through a moving build launch going and we're From QX and have we XX% now, well. deliveries cadence. several intense have we an moving perspective. we'll year be that NAVs forward, NAV about then on with of total to that's

Guild, Durant are premium for on And later and that niche some and segments we preorder focus and instance, the for established the Tahoe available more be have Yukon year. us will to allows China So the that lifestyle-oriented. also in this

solutions local has that the has shifted but shifted the landscape But So from to luxury Chinese think -- place a we play premium. solutions. leveraging clearly, in think, for a still with and role of we GM And the not as OEMs. our only capability there's mentioned, I again, global market with

but on done focusing as while that that supply focus, resiliency chain our well. is So we've

X% I is ] X.X%, pricing. But on current estimate [ Okay. your just right follow-up And quick now. to best is understand then Saying pricing have I one difficult.

resilience a because could cutting, you currents. mean EV lot I think high So give seems but there's Paul, curious, sort I'm pricing like there you maybe, price there there's of ICE a us is about level if on how just the side. cross of

When XXX% means kind structural shrink which your on X you're you through vehicles, to continue to look Look X- to you're the at your X-year probably. at next supply. they're old years sort at capacity of tight utilization, cap, going of

tight. like So relatively is vehicle stay used the market going to

I saying, dealer are they're little So things When and getting supply, inventory at mean looking aspects pricing. constrained reasonably and people some and bit they're the on base, hey, seems risk like this X of think Tier I And on constrained. are labor. X look a There's it you structural of at toppy. even in a supply

it I were like your resilience you as just a as mean getting I to up fearing. you short the -- people than little be may bit I that seems that just catch said well year. the later some vans Canyon mean its on in fleets with were us you'll stuff you are longer

of for there's last So the of come kind still going to -- land over that kind really than up concoct persist. things next seems where of How you and it things X.X%? you these couple do like years? of are kind X% to of And of longer shortages will do the of with just think kind or fearing. And that all pockets people estimate

standpoint. that That's Yes. want an people for to the Well, clear, put about, the guidance that expectation. X% we've X.X%, provided talked as we've not I from into an assumption very to and run their to is models be

they actually us trending quarter. seen well were actually for April out quite did quarter up with first ATPs with holding there. coming the outperformance, slightly we higher And the of we've as than But is where

we've our So increases macro out not tougher there. we expectation our some summer we the really that be recognizing as much last know as price of assumption built comps We headwinds an lap that do as an there in that in year. may took get

worth be But commercial there's year And think line it's environment margins. but now we've think a of this favorable lot in pricing more theme month-to-month that overall, very And common had continuing sort the and quarters demand. on to of is for with a -- resilient. manage with and for than I very of continues balance, producing of I downward us bias, that commercially to both been we're a

Our next Goldman question comes Sachs. from with Delaney Mark

at was strong and quarter EBIT annualizing First $XX.X about billion.

I billion for kind EBIT the full billion the $XX.X $XX.X year. of to on think is now year

to better over of understand compared So EBIT first to I'm the hoping some rate. balance the factors the quarter temper the of year that run

say comes the is getting down things. continue would to down it we obviously. as those to and to of EVs couple on about margins And in a as still are scale variable progress there of One profit them there's we assumption the So the positive, up to X% X.X%. make I ICE, strong as not

that So we bit we'll overall, see softness, numbers. see we remain I back outperform if But half expect pricing from these as there's the said, that. a little to don't of in And would pressure consistent. I've that an opportunity

That's helpful, Paul.

spoke demand market has company its and and the for on of EVs terms on good the competitive for quite EV topic. feedback been pricing. pricing to EVs, Another The but broader question in

America? year kind have that additional to to better have market with of to Or to to signals demand going pricing suggests the take is from the understand Hoping that XXX,XXX you XXX,XXX hit North did can outlook in the you pricing going need this volumes GM forward? if you think this actions year reach relatively you firm

about the are quarter. pretty is sales year-over-year generation, obviously, XX% despite fact the Well, down sunsetting which during prior Bolt, ramping up about the retail the early XX% as here was the Sure. we're up with results strong Ultium that

in of seen fleet, on We've rental customers strong. the softness side remained but particularly we demand a retail lot So see responding. for EVs, obviously

what I Now need with show to our these are to on think momentum admittedly the products lower volumes consumers as that we we're scale we up, building be able capabilities that are. but

demands cetera, many terms as the the in products at you look consumers the positioned EV the the capabilities, be the script et Mary are in retail see as statistics performance, our you market. than better side purpose-built that out to are we'll the speed, think towing continue continue about EVs trend. range at other that, actually I well of to see there earnings and on of And When what's charging that cited range, in deck, that

the it So to obviously indications watch are but early going strong. closely,

comes question next Our from Wedbush. with Dan Ives

Mary feel in which rearview to like the So can Paul, now mirror, months for the mean you internally? ago the -- company does it is UAW fruit even today now strong the is X less X uncertainty? just maybe a does to I EV position, coming and that and it strategy lot compare in a of

now ramping where issue -- we're No, Dan. scaling feel really a of up, module I good the point, and think We the on -- do additional that were I lines is us. all are we better make much have track. you are, We we mentioned. behind All I as

very So feel about we that. good

that we're with UAW. to able were Obviously, pleased we an agreement get

We when work them the with the of and leadership year. as were fronts build a they pretty continue named new close number we negotiations relationship to team on with to last started

to we're have better that issues feel I and I where feel solve So challenges. raise talk, each with we continuing problem other that. much about

progress -- And better customer's LTM-based And do and seeing as also see Paul there's trade-off. have they charging said, because infrastructure not they get with we making EVs our purpose-built are -- we're every good quarter. a the

about where good got feel we I we've think I momentum. very are, So and

very a gives that that Dan, is in me as these as and there the I the I are have position about we seize feel confidence I me, earlier, we're software. in now made work is would to all a going we've add, going the and where across also be The that good, well. GM opportunities. good aligned to believe mentioned And company we talent progress team with that very

more So year from much to much last positive. better, now,

with Picariello Our next question comes Paribas. James BNP from

in XXX,XXX Just the almost full downtime? Can dimension full-size the impact year. the Global for current relative LTM thinking -- for sales And look quarter. just this to might that half up the what second units were targeted? quarter's the you pickup X% help volumes to first XXX,XXX growth split for volumes half like about whole the full what versus

on just pickups. can I -- full-size Well, me let comment

on focused we're launch some -- to customer seamless going so we down equipment we the have We model. next have at. we the taken where announced that have so can installing is a And demand weeks as get stay just to we start

mentioned, half really share as pricing. that, feel the growing share. We grew we've strong We in we're strong Paul got with first products

for product. I our of speaks that think So the strength

to going we're think we're important to to that sure overbuild inventory. residuals we and I customer we're demand, going manage sure to make our and be it's managing make that because But don't

I overall that about think an our us the allows know, Paul, and with I strong relates talk one pricing perspective. if from to to continue things want don't that's wholesale as growth, it you that to products. EV be of we've And with done that to

Yes.

growth, EV throughout came to XXX,XXX of obviously, we to ramp Spring to going the in is X. -- talked as in QX, is Q So steadily the production pretty Hill in year units up increase that coming supply cell online Ultium and online ramping the the on about. XXX,XXX we've we're production plant

as we And up, greater. production significantly module an that's kicks see rate exit

indications course, going that are from expect where all should be going of standpoint. paced we see that the growing well, the paced that throughout by Early to is is Now -- the going year. consumer to consistently and to we're ramp we're be

X? to you hit South Is in remainder take or the shed light Or this America? are quarter that losses. taking JV see another China just on of the on And then place just quarter's GMI profitability consolidated, for Got can profitability could expectation year? the the And the actions then it. any to

Yes, sure.

did think We the in down said profitable the loss China. year And from the than initial China So as I slightly at do we rest articulated we reverse it's expected, better in foreshadowed we year. last the for were similar progressing of and to that that slightly what as -- QX. trend range. results to be but guidance expect we We

I rest so we'll of have profitable. the the we'll But to it. like manage QX is year ahead a little said, of line, in expectations, but generally So was bit be

overall, in see rest market continuing yet, we concerned where some downtime that overly watch. We're there. watching not the that particular. improving fairly from South we of just a For about and to But that's are Argentina we as were we in that to the but had reforms going GMI, America, continue closely on of that kind see we're

unmute Piper line. question may next with Alex Alex, to comes from need Potter your you Sandler. Our

you hear Can me? Yes.

Yes.

Got you, Alex.

good. Very Okay.

on question Ultium. first So

of demand time, to you're same XXX,XXX factor. guidance, how gating production a to see. you But talk consumer the You the at sort talked which as is good about XXX,XXX use to to going

seem stick water second is the something the that Would half like materializing? come going maybe you high walk could demand doesn't consumer if XXX,XXX, midyear, something is hell say that towards or the it you is to slow you're toward demand of XXX,XXX from to consumer gauge that sort that it to and then there? Or

-- we with always products there. or is But that We're hell responsive because to believe build the $XXX,XXX never that build to the launching going number Ultium. in We're be high just we have customer. be of to of the that EVs to out we're $XXX,XXX off to range water going going number do come

HUMMER more. seeing with up. coming, up. as strength strength we're and now the Blazer there's ramping got seeing We're with Equinox just We're ramping that several is We've LYRIQ, and

and look meet I with positioned at So well exactly performance we're going the when they all you think need, fact there. the think are these to functionality we that customers that

would also you from ICE we are though I ICE portfolio. or the our of look across -- positioned, strength our a EV So as portfolio, whether it's say with well

respond to customer. we're So positioned to the well

are don't And maintain to Like I on sure able focused said, making we got that our we we've strength. price, overbuild, the think that our very margins. we're we

in plant. Hill, we you EV or And look ICE build that specifically, if can Spring at

demand, positioned. XXX,XXX So customer I we'll to think XXX,XXX think range we're the well be and just to to going continue by in we're adapt. We

guess, views on China. I I'm outside in your bit updated interested Perfect. second, within about competition Chinese talked sort hearing from competition China. the a of stance Okay. GM's this? And What's, on little we then

you company protectionism Do standpoint, Yes, market China. of necessary? of America? on a comments sort is philosophy in you a South particularly free any from the think Are like places globally, Chinese more against competing

I it's compete Yes. a based And if there's best playing field, level have It's think products. of then to we want great general, products. question. all, our And in first to a -- on we want

I what's field, at around is where the a have playing there look think happening you and world. to level

but share a making to we're vehicles perspective, is around right the so a that at what we focused there's regulatory happen us, price, sure trade on can But a the help great is or from going GM its have maintain world. lot

America, product of look features we're with the and at right strong. going Chevy out on continue taking you we're cost constantly South and to brand incredibly great having with the When great portfolio And system. is working to functions, designs focus on the

way there there's compete the we're to that's playing to value And level field. -- well. world. got But I going be as a a it's focus around the the So think has on

Our next question comes with Research. from Lache Rod Wolfe

and margins contribution understand for outlook Bruno think Rod. to assumptions like 'XX. like improve compared contribution for EV is on XXXX you're us, making year the Based given the overall on to year. we margins next margin by I'd This your EV in XX,XXX in this per key need positive XX,XXX hints you to margins to positive you've

I help buckets could about the what's around understand costs. driving think seeing us if you underlying LYRIQ on if and key and what and assumptions you're in pricing just I heard that of cost your correctly, the But lower with line that's year-over-year.

question. the for Thanks Yes.

go in highlighted kind of is of EBIT we back points presentation a improvement the in driven we you map back XX% So that November, did to benefits. road scale that by of XX XXXX, for about if

chain, infrastructure, manufacturing up lot think cetera, production. facilities, are, So et if where you battery about plants the and we we've a to supply ramp into invested

are we So that into some grow we've what by need losses driven EBIT our fact to really built. of the

material that's XX improvement. evenly reductions. about The that between trims really XX% cost also and and rest kind of is points of so And split launches

this good start off reducing to cell of cell good costs. gotten raw materials battery the come to a costs year. as job we've seen So into we've a start We've done

down LYRIQ in we said, $XX,XXX as year-over-year. cost And is the

year of expect. then we out And savings their into the et production, type as years a lower progress we in vehicle that in the in early line the into that get becomes harness material and start driver, vehicles we they more XXXX, producing get to third get that's of of each we as scale reductions So of cetera. and second, cost we're

see continue where pretty good a there's Pricing, and market going is. map watch to there. the to So obviously, road we're

our As we talked expectations. on the what we was built about, did Blazer into

we're not Ultium of changing indications just off are but early quarter And in positive. targets. So we're the ramp, on the those a

stepping to losses eventually Okay. reversing. there's And that then the back, EV we are multiple paths if currently wonder just incurred being

relates to for environment there rationalize XXX million Is eventually including think in that it pricing EVs hours the flexibility expected, or costs demand how to gigawatt I for from EV plans? demand the differs have these to the softer if much X you your battery lower is over expectations? Specifically units. than plans your do as flexibility if business,

kind learnings to steps We think taken advantage some production going the seen are do and us ZERO some to we came out I early things that lower of that we've a Orion in Well, delay us plant slowdown you've that help take at before. into had of of really plant the where put Factory going improvements of that the can the forward. from cost of

we be But to significantly So flexibility to trying EV as across it's customers EV, that. you adoption from both us portfolio ICE, portfolio best the here much as higher going at we're nimble. when to our to build very look are and in I our And forward. an see can think you're navigate responding history going probably to

that the to customer and going to and forward. vehicles. them us And indications can be demand we're that we're market And -- endeavor So translate continue are to into loyalty they going quite by But where guided well. reward well. continue they expectations products that, our for as exceed have meet think to that our early the really as it's we are their to that for the and to Mary EV going going

next Our Chris McNally question comes with from Evercore.

in little the XXX,XXX which you QX. Paul, the following questions the mentioned to downtime sort low you some But the dive could you've seasonality range would if somewhere seasonality, mid-single I mid in of with to of imply of prior. us in the of could about help you of for bit on full talked about cadence, up up the some digits, some being talk into wanted given year. the just year to think Mark's questions just rest of a Just wholesale?

that's of with forward be downtime going to that for we QX trucks than we bit to few Yes. QX, was from being pull weeks. happen QX. retooling with particularly generally, expect little There QX for slightly the lower similar QX QX probably very that to a But a as and and prep seasonality, and

So QX. dramatically into a little edges, But forward maybe the QX nothing changed. bit pull has from around of

continue look we've already with pricing, April to we the loading QX in the in got performance the looking obviously caution bigger I then half, is has that front by provided. the And guided of which to half we be guidance ratcheting impact, where back As at that in half on to second we've in bit second a that's want given the just assumption there and EV certainly volume up that a that's now. we've where right booked see half, the little

production as we build? just then think just heightened Do sense. has the of And yield makes in QX, at overall production of and this inventory back ] get actual looking should to sort All maybe side, truck in [ the Perfect. QX? level TX we on maybe

system. to that, March, the days came I we're demand obviously, inventory, while we where out continue quarter the going watch it across about still built in of of we The to -- is. we're inventory think XX

that of some were this going have to we knowing So downtime. intentional that was

be that, third think but sits. get by trend little we quarter I once guided a So bit we're through to demand going we higher, production see could where

question next with Our Ryan Brinkman comes JPMorgan. from

the on share has for China if you industry strategy curious EVs. number rollout your you your there It including attractiveness in amidst I'm launches seems because declined BEV with there aggressive in U.S. it does the the planned all China, transition for similarly the EV to likely share Thanks offerings. upcoming seem detail planned have a and will of the gain

automakers new China? in factor. be may share there to And you domestic another Chinese think citing stabilize stage I earlier But as of heard the contributing increased be a this other would trend factors. you of the EVs still do blitz at competitiveness sufficient the

investment to further And the improved have you some performance with X the X next pricing a recent pathway would or trends out? Do an years? blitz over financial of be of maybe a to the planned represent years some such payoff that more given

Yes.

do We're coming. in some we the [ this I think, think strong repositioning OPTIQ I Cadillac ]. LYRIQ China launch got year. coming NAVs have, We've

have Beijing the also And the Auto entries at that we Show. see Buick in the PHEV and Equinox. GLX You'll

our with vehicles, there'll And have do GLX coming lead there for as ICE and then also the for we more like, be upgrades instance, a well.

launches and So as have a new -- well. we're NEV -- also excuse -- then on me, SGM, new we

into So through with Durant I think NEV we're going the to positioned, just in the vehicles play going as this niche we year. next mentioned, I in we ICE and EVs. move as think be year can continue hybrids And both well the as better that's and plug-in Guild segment. that's to hybrids, market, And why as I then,

a to grow and GM there's share. play think I So place for

if business? new rent, about China the that draw vehicle can that just in how And the of the is question financing, sales, do OnStar, you Great. of to from the probably some feel vehicles you operations of the installed there, base about China, it GM attractiveness is good highlight element the sort of Okay. service, maybe

to continue basis, financing OnStar. a going to also a is to we as as software year, the things dedicated and have what last that GMF on established and that to with software of improve successful allow would And basis be from the us services is come you organization. of well Well, together all and mentioned things a we along one compete also China business on the say allow us in I perspective, other to But digital market. in

So build that. we'll continue to

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

Paul, on EV margin. the just a comment that on follow-up

basis So XX% the scale is improvement of XX coming from benefits. point

lower a from So XXX,XXX, net a at of selling the but Presumably versus kind the say, to few scale margins, BEVs there's closer, benefit. margins? a of negative if let's impact BEVs overall you're to then positive them, that if were less XXX,XXX is or negative come

margins. to that, trying volume just number that how into about think we like company's the understand So do

bit infrastructure would are when where we that have. we journey, on scale I quite you a Yes, what say the is the that, just in build matters based obviously,

trajectory. short in effect certainly, have would on lower volume that run, So the negative a

at But profit the what on kind we're think is I of looking breakeven low variable around side XXX,XXX.

as timing we a get into able at goal. But So we've I of of bit grow that to little what more we tracking are when to that of still look be built.

Remember, this standpoint. meter a And from a capacity strategic and make journey. XX-year I game ahead we're adoption plus playing pace XX-, growing can that that ourselves of from slightly sure think we perspective, to on

we're be So that phase respond to got we've ebbs we've able in And and grow right now flows. to scale into to we've at built. a to built where the flexibility

to And in forward. all short are about watch And really that those continue going the But good really, to where that's term. go going then intermediate going sound to feel we're investments. we to

And a quick follow-up.

raws, the On seen battery or peaks. lithium XX% something obviously, the down since we've like like

the reduction? lag the come curious seen of you given there benefits Just your lag your When is in -- best contracts? how more battery of contracts work. Or where have -- that kind we see the -- raw to is a there is mat

there's is So say in goodness come still I what would to 'XX. some

we production. module with come So up inventory as our saw battery a ramp the down, pretty sizable we of costs year we remember, cells exited while

a as there's of historical So still result some year. costs there in that, from last

that get prices. think, have much cells we'll by half the in time pretty And mid-summer. the flip of will to current see to that I year, much, the But we second closer

prices, most investment et is that floors And that we et for cetera. to market, our has say of because either cetera. regret There at approach done vertical value get look integration we've kind isn't discounts locked we've that or anything you investment that caps done capacity that in done been then steps Everything in through sure would make portfolio as to I we of and beyond. that higher and and XXXX with made, a we've we

done locked So as of benefit prices. and haven't in high us And have for sort that historically XXXX should anything into a would forward we beyond. that we be roll

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

everyone, thanks, and you, your Thank question. for

us that's the across making talked board. cash progress our flow in got We're good revenue to growth. We've and great is strong, driving today, enabling our the business and extremely margins, are we've employees. we free As reinvest

business also $XX.X also vehicle we business capability. year So ICE capital $XX.X leverage plan profitably. our of advancing and our not invest in billion this to to efficiently grow EV strength but And our we're the only software-defined billion between

So I doing we're how of areas feel very good key the focus about there. and

too, more the production In thanks to both we in of team than of a the value-enhancing are higher we've sharing addition, the aside and million of benefits ASR for the And quarter contributions manufacturing quality. execution, recognize shareholders to also profit $XXX dividend members the were set U.S., in the in from first volumes our and in the progress which significant, improved launched November. benefiting our terms

our on track shares reduce X to billion. are We fewer outstanding to than

can XXXX very to we're our a going. year everyone say can and for point. with power in everything our focused, on much is team be very I to keep confidence So conviction momentum that We're strong and going GM. this to do

So thank you all for time. your

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

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