General Motors (GM) 23 Jul 242024 Q2 Earnings call transcript

Good morning, and welcome to the General Motors Company Second Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded Tuesday, July 23, 2024. I would now like to turn the conference over to Ashish Kohli, GM's Vice President of Investor Relations.

Thanks, Amanda, and good morning, everyone. We appreciate you joining us as we review GM's financial results for the second 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

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

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

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

good us everyone. call results, first second as our half to begin and periods. the team business Ashish, other deliver revenue including helping and record want morning, partners as today's GM I for strong dealers, well in thanking both by and Thanks, quarter suppliers

drivers X to like new our guidance higher are performance and to I'd There that highlight. our key

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gaining EV market Next, well scaling portfolio our is share. and

is in XX% EV ICE strong to fact, We're our industry growth quarter second grew because earning In encouraged results from year-over-year at positive fourth profits portfolio by deliveries U.S. key our quarter, and EV volume margins. grew disciplined XX%. the variable in while the the these maintaining early

for capital vehicles differentiate new focus have us. finally, to points below greater have on we and X incentives execution continue average average basis more and deliver even margins been than pricing, stable we will industry And investments, XXX Great and with consecutive quarters. to efficiency. better our continued Third, our the on

production with In points a GMC And market X% share gained the half, up X.X we Silverado consistent Chevrolet of were pricing. year and combined Sierra a the disciplined and in U.S. volumes versus ago. first

with X%. Colorado pickups of up ATPs GMC addition, sales XX% Canyon Chevrolet our midsize redesigned In and year-over-year were up

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all outgoing our Buick, like The Chevrolet midsize of a will And just several function strategic more we and GMC profitable expect be model, also new. to highest of we've it than volume SUV, the made. SUV. family our Chevrolet Equinox, be is decisions This

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desirable. and Next, to make more elevated them the comfort features even we technology

simplicity, we platforms our way will Winning improve and equip engineer our proven lower sustain we in unnecessary margins and our component leverage vehicles, for and future. ensure greater the efficiency. even continue we in complexity which Then with sets help our cost eliminate and to that to drive is can the

been X,XXX eliminate launching quarter than through smarter options, we have more unique contenting vehicles to XXXX. optimizing through able parts of the we're on XX example, and first For selectable

the XX% alone, we LYRIQ performance features. Cadillac model or from the to reduced XXXX the part with no On year XXXX count compromises

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early new Our working our and to are About models. incremental. are and sales awareness customers rate mostly XX% we're raising launching GM, conquest increase new by of to

also it market-leading are Florida, Michigan. And Chevrolet best-selling and XX this the luxury is in momentum. Our EV EV Cadillac far EV the Texas EV the states, and Blazer so year The is including building LYRIQ. now HUMMER GMC

Chevrolet onto next We scaling technology, affordability. delivered the growth, cycle unleash unique our in its positioned on. with yet," the spot is late dealers from of the media and that One Equinox we're combination strong. EV product units seems think grab quarter. to X,XXX range pie customers, grabbed And piece quite first that reaction we said, has and and the To EV is performance, a very no production the reviewer of one else the "Chevy second of of

launch by IQ next EV We're especially CELESTIQ. and SUV Cadillac OPTIQ, GMC LYRIQ and about excited the the nails compact luxury the formula. the driver the OPTIQ. it will Escalade will over months, Then said the several Sierra Current be joined

Cadillac Bolt with well going customers for in with Chevrolet new segment. focus have they Then the every the next-generation beautifully nameplates follow largest with year, to EV EV opportunities as We're will winning growth because a on us. next represent the SUV global when these luxury we designed [indiscernible], as

Buick's which made we have also planned includes been EV, to ensure XXXX. we've for adjustments approach market the balanced a had as deferring This But develops. first

improving. barriers also like expanding public are adoption to other we're EV access charging choice, As

best before to year. us the are We rolling network. charging customers finalize pilot we're [indiscernible] expected public give their our venture online out joined end to are chargers first there. bring are the experience charging of commercial the is customers drive-through with access with to working the agreements And Tesla fast-charging telling its out we company [indiscernible] to

to in any profitably and As excited growing demand are as responsibly portfolio, environment. we we are about committed our

years, years. over few next steadily, the than Over the see X EV now last slowly it growing the more market forecasters third-party but did

spending we plans result, efficient to in a lockstep our moving with are sure we're customers. and As capital make adjusting

our EV continues in supplied domestic example, ramp For helping improvement cells is portfolio. our Cells to drive battery profit year, this up Ultium joint venture which

we range. our forward, customers' to go cost enable our we're form going As will factors cadence. to capacity chemistry additional a bring measured optimize in and on meet to needs and This better online us battery

that Zero. We've the for as year. standout the plant EV also demand to can meet customer production battery plan our electric new months we than leveraging confident in mid-XXXX. reopen into interim have trucks by and later The Orion a in assembly X in timing heading is truck the Factory capability decided the we We're flexibility

continue take have flexibility We between to we will at mix advantage the production to ICE and of also plants. key EV

Next, in discuss China. I'd our results to like

has startups continue you profitability. the many As established significant capacity. prioritize And market to over production excess and know, competitors

to our fixed We have and been taking costs. steps reduce our to demand, reduce align protect our pricing production inventories,

clear the second had have expected been significant, steps it's the in while to quarter. have taken, we to profitability But in not return China enough. We

of we we because However, loss, headwinds the easy. and remain will challenging a expect not the the rest year are reported

it with closely make working profitable We sustainable. to to and the our JV restructure business are partner

progress comments opening over my made the has months. by close the recognizing several I'll Cruise last

to And the with Phoenix and needs. cash their financing we returned recently Cruise has in know, you Houston, provided them bridge road Dallas. operational support to As

We've leadership be on Mark we technology as forward. including has also move as appointments, hiring transformation, of decades will made experience front several significant crucial Mark of lines CEO. the which

Cruise autonomous using is mobility closer technology because mile transform to simulation vision every Our company. And unchanged. an traveled is AI-first and brings it every

have AV the of of performance. tech continuously building We engineers platform, large-scale AI safe the power models cutting-edge foundation some improve to in best a harnessing

for their It Origin. next will both we regulatory the autonomous its team simplify by on path Cruise with unique of of vehicle Origin scale next-generation a their instead Chevrolet GM also and Cruise. It's the because uncertainty the design. Bolt to addresses face The the EV focusing win-win

with Cruise lower, GM the scale will them deliver help Bolt possible. change cost leverage unit resources attract quickly of and at will are as steps And which be We will in enable fully mission the investment help to long-term will EV as in AV optimize Cruise incredible our the for customer tech important think Per all major us the autonomous believe much that product. driving. opportunity business who a the see new help those and of these

With that, to results. I to Paul over turn the will our through call walk financial you

and Mary, I you you, morning. Thank joining this us appreciate all

stable that into and And results by our business Our outperformed portfolio once assumptions July. to our the strong has the thus quarter. remained were guidance relatively pricing ICE second pricing quarter that consistent share I'm across performance ongoing pleased for from far driven again

profit stronger compared focus the average growth. midsize robust. that Power We been highlighting As data supporting Mary and models, mentioned, U.S. launched J.D. to than sales stable on expanding. SUV pricing generating gap new is incentive our our our preceding profitable Recent showed industry have margins

second XXX the ran quarter, below In the we industry. points basis roughly

U.S. to the volume at rental lower time, companies. offsetting points, While share market retail same XX the fleet increased by our more than basis

And our which is tax and be after portfolio Cadillac driven In miles of from Blazer consumer in sub-$XX,XXX from and EV XX% EV XXX Chevrolet we'll the more by Our the deliveries Equinox EV gaining Chevrolet the LYRIQ. momentum. range U.S. moving EV, up sequentially quarter, the the the second quarter benefit than also credit. delivers forward, were first will factoring

stock from billion, in in retiring ago. of the diluted On X.XX billion the authorization. allocation, and repurchased of shares ended July, a share We capital year with of another stock quarter, the early XX% $X billion million completed a prior fully $X reduction we count a XX quarter

billion. down the quarter share year, projected open that billion completed to fourth of The X.X count supplement in ASR market our be to bringing repurchases this share $XX is ongoing the

a December ASR, year of million upfront last billion As in immediately paid the shares. we XXX retired reminder, the and on $XX

we million In outset continue In no were X in to retired banks the ASR the cover XXX quarter, completed, the million the they additional as retired the first first the and of second another borrow the under at the positions shares was program. quarter, their shares tranche shares.

to million. In share shares the number around shares price during depending the of that another under fourth XXX the including average several XX quarter, the on retire we total expect million period, million to factors, ASR bringing XX to retired

undervalued, top made price should remain an billion share us our last driving authorized count $X the still towards Board you active repurchases, continuing our GM's below expect of have Considering to that great belief repurchases. share share progress the in is for of these goal X month, share measures, we additional our On future billion outstanding.

Getting second margins driven $XX in $X.XX EBIT higher pricing X% EPS revenue results, in and quarter adjusted, and billion billion America. $X.X stable We North diluted into wholesale by adjusted. EBIT-adjusted in to achieved was the up volumes X.X%

inventory. goods Recall that in billion $X.X adjustments XXXX, we had battery valuation finished of and inventory cell for EV

allowance as million our substantially billion XXXX therefore, the the progress profitability and reduced levels. and around fourth areas full both And inventory similar $XXX a a reduce the for in be of expected lower made to includes guidance benefit quarters, improve We our second these during allowance. about in $X the We EV good third we year. totaling the in and benefit quarter

last We operating expense capital performance in coupled cash This was and of to volumes, a during that valuation $X.X XX.X%, the of delivered year EV wholesale LG margins $X.X EBIT-adjusted achieved cost quarter, our adjusted, America flow automotive driven took higher with year-over-year. billion $XXX which second million pricing, our EBIT stable North similar resulted core last and of adjusted by ongoing we by discipline. second nonrecurrence free $X.X quarter billion benefit billion of the allowance containment, year. up strong driven

the our year-over-year the maintaining incentives. better our drive quarter in Chevrolet like assumed we SUVs supported for robust and than while Moreover, demand continue million low HD $XXX Pricing guidance, was by pickups full-size up and new Traverse. products what to

lower to fixed reduction compared $XXX benefited year. last from also realizing We from program, cost million our spend marketing

dealers were is We quarter. levels third track net above billion the XX as of $X we XXXX. platform in the savings end achieve using days. the Dealer to cost we earlier where believe tracking until delayed for ended temporarily on the were CDK sales This remain fixed some June of at inventory by quarter

continue maintain and targeted our inventory inventory to will days. necessary We monitor adjust production levels our of as XX to XX to

EBIT JV million China difficult Mary down $XXX return quarter down million, taken million the year-over-year. second on $XXX as profitability steps soon of to equity touched $XX income the was immediate it as GM we and loss International $XXX possible. China our a have with year-over-year. market million, was already to adjusted partner

the in first $XX adjusted income excluding EBIT equity from flat International improved million, was quarter. GM year-over-year China $XXX sequentially more million but than

adjusted during the EBT to in tracking million GM continue million paid consistently with second range Financial of for quarter billion GM and growth to well $X and $XXX quarter. drive $X.XX billion the full year. of performed portfolio year-over-year to million, has $XXX They up $XX dividend a the

the reflecting to expenses year bar meet a quarter, million operational focus expected intended and Cruise activities reduction a ago, were AVs. $XXX million $XXX the improvement for in in performance a high down from technology

We time across conscious while Dallas spend, are at Phoenix, very same of efficiently Houston. operations expanding the and

explained In aid of generation the scalable addition, robotaxi create will in the more utilizing Bolt how scaling and a next to Mary our cost-effective Chevrolet business option. EV

Origin in to roughly pause recorded quarter. the second $XXX special triggered we decision the as of Cruise a million, However, charge production item the of a which

Let's our move now to updated guidance.

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

Our production cash market over of alignment flow the year. is to capital guidance due our than and working increase balance EBIT further benefits demand to increase larger the primarily

of EBIT address the like why at to half. main lower the $X.X midpoint around are implied compared There adjusted also second billion X reasons. is guidance half first range I'd the to our

a bigger assuming are headwind. we First, pricing

we down Our second from the which year-over-year to guidance be half first a in is essentially versus flat year. assumes the to in pricing the substantial where half, improvement X% X.X% started

and half of weighted. $XXX ongoing. other higher about not million billion This is are remainder back the launches support to be related commodity second and includes $X particularly prices, EV Second, more marketing aluminum the spend which half costs, year. the anticipate of to higher of roughly to The in we timing costs copper do

sequentially to and XX,XXX our every Third, we build XXX,XXX half year to our target vehicles. the year Ultium XXX,XXX. achieve ramp full first produced number of this expected as We to accelerate to EV EVs the volumes are of wholesale GM quarter in and launch expect new

mix portfolio be lower a headwind as result, of have than year in a the variable average. As will back profit bigger a half the EVs the

given options and closely. build customer introducing inventory year. common very need We to first We outpaced a demand new continue EV monitor for that and about by of to This, the the half levels when acknowledge deliveries Ultium X:X is wholesales awareness. vehicle, the however, availability, customer

will were on, goes take continue steps time levels. customer As to wholesales, balance proactive production we if to deliveries lagging

expect our making The from on Key in to to this profit I'm including last performance item improve costs and finally, by module improvements towards scale good has on further inventory as EVs first variable our improved quarter. higher is from roughly vehicle cost at the the SUVs. reduce our with pack that goal through and and cells materials. manufacturing Cells helped raw working $XX include: improved progress including second half reach we our vehicle the pleased and efficiencies, cell full-size year; mix electric EV portfolio report kilowatt that average and assembly; scale our fourth quarter, we trucks of cell sequentially we are the hour and Ultium JV, of produced achieving scale drivers This battery a reduce in

It capital is In allocation to year a the underpinned we efficiency committed first cost performance agility adhering half complexities our our strong we consistently focus closing, framework. in business. accomplished navigating are in the on and maintaining of capital financial the by of the containment, to and

improving differentiating execution. peers We superior ourselves from offerings with and our are product

yielding truck profitabilities fastest-growing some the the models. SUVs growing We the of refreshed And share the vehicles segments, are our market in higher are market SUVs. than preceding segment leaders midsize full-size and affordable while SUV in at

same are time, growing steady world-class developing improving our and progress on making portfolio, EV and the organization along with profitability we At a software Cruise. at

customers and the at to is our continued everything do will success. always, As center and we be safety fundamental their our of

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

comes with Levy line [Operator Barclays. first Instructions] question from Our Dan of the

on first start a to with question Wanted pricing.

but on seen, XQ. could provide in we've a not in XQ just of you If only strength the bit context pricing

look incentives Any clearly incentives, been just the your behind color this? flat. actually you at up, net pricing has but the If are

sustainability this up light you prices some in Do going maybe as normalization, further here? just in in could sustainable beyond some this in. inventory that the of then you of price we've the year, is factoring And as ticks seen but talk held there inventory fact from to view to be incentives this that increase

of all. the Yes. question, first Thanks for

So is commercial pressure what incentives, gap the in to little we've say despite of a seen against widened the year-over-year And competitive going we've the disciplined about would that strategy that, our bit actually been fact market. obviously, I we've and set. quarter on very our

our So for strong. is demand vehicles

of some the think quarter. the are I up truck sales X% in were offsets our

helped vehicles to in share, pick example. for the of the We the than offset continue and seen some to up ATP that's lower growth tracks, we've in

been I So has same our been that continue time we a really consumer held well long to saying up resilient. we've be And and think has for way. that expect the to

I this that strong strategy data with undertaken that in the of that that we've we are more being is is very have, flow producing part big customers inventory combine demanding. portfolio the vehicles the think incredibly and the you we that the when And result. a about know about think I disciplined

mandates. back or elections know about is maybe we implications the regulatory IRA about maybe I may Wanted I presidential on of some a Great. there's pulling things EV and some changes upcoming strategy. in given the there's talked seeing the mandate, [indiscernible]. candidate light like environment, EPA U.S. obviously the be one And your in have of this the follow-up. EV to in potential ask

your these Is see a longer your some driven you strategic long-term pullback the that one in a of GM bit strategy of is more fixed, planning EV just as given by modify goals EV does and do your that to strategy? products? So strategy Or regulations? we standards, extent cycles view EV for what if the more also

thanks the So question. for

vehicles, EV Our got offer consumers and got is incredible of choice. both our And to portfolio We've strategy an ICE. we've flexibility.

So can are GM. right being We're EVs. customers as win to of we that EV now the embrace XX% more we new that customers new with sales seeing they know

technology customers And that and at will market got for -- grow. look will so EVs especially performance, think portfolio. we we've do when continue range to And the you our the the the want,

the of have vehicle, next when that coming Bolt with the out now, giving right we're affordability With that along year, Equinox we the choice. consumers

said, are fun instant And as I've drive, torque. EVs to

think I beautiful right our EVs the have right performance. designs, the range,

regardless got again, And be between to that guided and we've what to So ICE we'll regardless, the consumer. maximize is, the EV. regulatory because we're environment going of by work flexibility

I position. So in very a strong we're think

all we Michigan over have think the of thousands We're I country, to Tennessee. in look including the also EVs. made jobs though, at, investments creating Ohio, and

So I'm our is. with strategy where pleased

of happens a to regardless ICE EV be with our and perspective, think portfolio. what I regulatory going well our positioned from with we're

Our comes next with Itay Citi. Michaeli question from

on Paul for question back bridge. half on first second the the Maybe Congrats a quarter.

to level EV the in and how second On compared half? industry high the in how of the should in think puts X%, volumes half lower, also, X.X% the about negative second you're the think model pricing target about the the that. of the what sensitivity assumption, we year come how if to for volume to takes have it for And assuming

you opposed how taking to On the thinking on about Cruise, strategically partners as Mary. rideshare next-generation are Cruise operator maybe And a finding market deploy secondly, as Bolt? to to maybe for

with start and ahead first questions. go the I'll Itay. Thanks,

of On what focused tend ourselves. a levels, with inventory for Obviously, different noise very, to cetera. different see half, strategies, for pricing there's incentive stay going second et on we very on lot the we

against assumption on our targets sure that flow in seeing an -- in right that's that based our of So and we market conservatism what projecting what the plans. we're cash the bake we're making and amount

the X would say similar what June. half of the I So to We date to first got X.X. through year to down looks flat. is year we started essentially the saying July And very

through portfolio to continue that quarter we're works push month, us. on the going to for by by month So quarter

various do can. inventory our on our pushes to managed that we've meeting customer competitors. various and the we've demand So going best just to from be we seen through focused that And strategies incentives, we're

we've And Itay it relates very -- Cruise, hard. to on worked as

As they an of you intelligence expectation human industries, for do artificial other technology higher happening beings. across look in than performance have our with at applications what's from necessarily many case customers

be tremendous better And target than few And now model so months. average on last over than to instead being a role has of better our gone work driver driver. the is

we model now X much more than I are the advanced out driver. rolling cities the role mentioned, as be in technology better is So a to

safety We've metrics scenarios. it across make to many also sure measures our expanded

So safer driver. we're quickly now get and than to I'm very getting much vehicles driverless back with role -- confident very this to the have to again, as to better technology, model a we operating on path

So that, at as experience grow. I we exceptional to look continue driver when we can provide an

talk and is right investors, when in you open, Cruise. partners the about what plans and very significant interest balance expansion, seeing Now we're between we're and/or capital

autonomous move GM. So seeing from from we what's way be the to vehicle next into at forward phase, Cruise Cruise go we we're laser-focused business right going personal very with the also opportunity as perspective. looking on to are for But robotaxi a a efficient this

we're significant interest we go a from the through well partner investor think have We'll as we positioned. perspective. So we year, more and share outside but

Perfect.

back. Itay, go let me just

that. I second to think part from missed volume I sensitivity the the question EV your on of

-- XXX,XXX. in about when production, to profit positive gave So the our to being saw you originally our XXX,XXX. able low at talked to guide get on were we XXX,XXX we We variable

fourth the we from We're to second half to quarter. the although that still holding that, with XXX the XXX, pulled to

a a that costs, has doesn't obviously, it been scale doing. what but improvement answer, directionally, big give cost and efficiency of by the cell driven seen is we're plant. of we've part know lot the just battery at I specific So you A scale

that. specific it. But continue we and continuing to to more that something than strive it's nothing for watch, So we're

comes question UBS. next Joseph from with Our Spak

the of If I you to all guess and the costs those half. higher color still billion. have we're savings for the track in to additional it half, make counter you're on first $X sort maybe that's of the cost some of correct? half. you you mentioned, ballpark program, looks year I million last and sort cost back on tracking so this, fixed back $XXX sure another $XXX billion thanks in right, maybe want the like $X for Paul, did just million

And is, we it's maybe back-end think because on accelerating think like or the some if it just why color last actually year, I about if loaded. more higher costs also were

So a it's sort of tougher comp.

So done the cost to what higher? drive else being here is savings

Thanks Yes. for question. the

say directionally, that on highlighted I and we is billion increase So is first at is $XXX look biggest I of billion. about math the accurate would pretty to call half. that of cost on the your spend, million half the about $X.X marketing second the would $X

the in spend lean significant significantly, launches share has drive we marketing the obviously, still awareness. customer and is think see doing. for opportunity that us us with to of second done what a outside us to year, So to help in job EV. actually have there's But into the that overall an team that's scale more efficiency gains in we're and the down us help And of a we great driving half

that we're That's and that out, be we'll $X out savings laid that to not in say continuing of that going it's larger cost successful timing piece pool category. reduction would I we we're So significant biggest initiatives we But of believe there. it. the to stop target work billion of on it. the And within

for undergoing I for I the I half think half, review that on Cruise. Thanks there -- just Origin then, marketing. cost also the and Okay. guess, strategic is second Mary, clarification some know decision, first savings. still on you're obviously, the But And

does not also sharing really, what a of viable just not other and some you're Or indicate the cases But purpose-built use in for versus there were for? planning business sort that of what Is model? other you are originally go-to-market vehicle? considerations? strategy this think, change that having Like

doesn't -- There's components, wheels that standards. Bolt safety the extinguished vehicle change. safety reason meet regulatory the switching it some doesn't -- from we vehicle is other Remember, the and the going legislative Origin I main steering the standard motor Origin think risk. to with because a requires motor is have

working we put get been Origins in out. the get been we're We've legislative that, government could done. or that perspective, to with difficult from don't number a of And that. authorization on It's we if change limited

AV was as rollout this, then risk. thought think, we get it looked very of to when have get efficient LTM be So an to based as miles over us we it X And And look good we allows traveled. scale out rid million product next capital perspective it's the where the and a better we initial at been, more the year we at the better from roll on platform. that I Bolt for EV Bolt, on

that we a regulatory So perspective. I would the have say it was by uncertainty from mainly driven

with Roeska Our Bernstein next from Daniel Research. comes question

to of Bernstein. EV of of to Could have you a EPA the to expect achieve target? on we've 'XX Dan current would kind drivetrain the bit questions outlook for emissions framework, we your elaborate on you if stay need within Kind on, Maybe credit the following mix level from had. compliance? what

on you EPA EPA to latest point Dan's the XXXX? administration for actually targets, administration if decide then you then of need the time off would process from in to kick when what to revisit could any either or that question So 'XX be is would an target? be kind effective And following to earlier, timeline administration would revisit expect, outline should what what the the

future we as purchase have with prior from including the Motors technology a model existing that have General robust and the pull, we the well can we portfolio, as credits on vehicles. use levers credits to Sure. portfolio. We how regulations, Well, for can comply our many that EV we years utilize and plan

what's this what's a so EV based and make basis happening on happening adoption, decisions. on regs based those the look on we And what's with regular at with

of it's we a lot have flexibility. So something

we And obviously, is going regulatory to what just would something plan be we portfolio environment. and change. that would and potentially that the have me -- regular make to we a hard the then intend to look I have there. sure on planning what we do happen, predict at our we for with not of know though meet we timeline could to if the It's be really basis And for what a then range regs only we scenario opportunities.

with So process. we'll that continue

I think company environment it have mean regulatory certainty. is to important has if the certain. what's overall you to last about say not regulatory the the really for years, several I been would

election if the with will as what based be to And moderate have the they we see. all. and be get we regs think past we so -- flexibility at what the on I change interest But the watching we'll at look what

maybe for a right more up, right kind full they they focus as the in of are mild in if on consider or to your stay following as they hybrid 'XX what now, would play portfolio? kind could ambitious you your And hybrids with role if And path, ambitious of kind increase of drivetrains regulations are stay U.S.? the now as

across right have of the key to board, key we but not the regulatory segments be now. because we've as Well, plan XXXX to time where the hybrids looks in in in said, segments, frame environment

we we what where decide regulatory we what or So We put on environment. put that see on can segments the the opportunity. fleet we have based

leverage. And segments definitely in one of to we 'XX that key the have can we've already said, plan that's in So frame. technologies the time hybrids we as

Brinkman with comes question Ryan from JPMorgan. next Our

a the the of and XQ that solid on think performance Certainly, though, the Obviously, ask, rebound on strong do [indiscernible], revenue. both see to fairly surprising driver wholesales including in total North that. to the a nonconsolidated with China, company loss consistent in equity results. there's performance little in congrats I America is despite the

bridge detailed don't it in you provide automakers the seem sequential But ops to headwind in imply guessing either for price, mix us can you price other I from cost the the but specifically. a in volume would of from nonconsolidated fill change, quarter-over-quarter. know there. country, given or perhaps I'm comments that some or

gain that you comment being able NEVs actions Or some then connection if to And greater are should partner, traction? expect in not portfolio what be maybe could that more sure but on your I'm you of combination? considered vehicles, rightsizing are you're we with or you a more readying expect might contemplating actions

remember undertake before, least to structurally. And I can't in capacity reducing actions, not were country that if you really rightsizing you at

to you in kind take for out. perhaps How on that it maybe when could to compare what have that region? you in So you flexibility America does might or North us capacity operated of to example, past Europe today, market update in the

Yes.

see a prioritizing profitability. First challenges production China. are in the money, OEMs off, to people few over lot continue are we and of making Very

So the I disciplined -- we've been our most have than in been that we pricing. think work more

we're that vehicles it's difficult new amount some frankly, because cannot positive traction. launching unsustainable indefinitely. money seeing right now. continue a the are But companies And market it's there We losing of

of you and bottom on it's nothing There's the a that's we're comes pricing into behavior And going residuals. just really, war the good type now. that now, when the get that to race really seeing from right

better are going NEVs received are products of we've of couple said several inventory to launching a ago, especially electric. and we some taking in full some be getting think the taken we that that, we steps years hybrids had Having -- of our right,

to that to of different more doing decision made. out But it partner, of going all partnership, detail our the we're details provide not we're the And work with items we'll then I'm that is respect go for the into contemplating. as as relates our

And your Korea consolidated the in Great. trends in other including Brazil and the comment international quickly, you on operations there. operations, could [indiscernible] maybe in too,

the When specifically... what you trend, talking say little -- say bit your can a about you more you're -- specific

for markets those in profitability the in trend The you.

our markets in seeing strong outside say GM International would I China, pricing. we're of

for If way, really And recognition. -- And brand we've we're we're strong considered and brand. and portfolio compete, hold look brand the got you pricing South by to premium value is able great a with or luxury seeing the the because Chevy a example, products. at loyalty Chevrolet-branded America, of of

Again, in across varying across to -- all different the markets. international that seeing we're of levels

the over that managing residuals the again, play cetera. strength, managing our products, a period, at execution disciplined game we So look et longer this pays is and of our we off long brand when

Dan Our next from with question Wedbush. comes Ives

to GM models you EVs, price accelerate has the high, that years? that customers even X look and I X maybe expect call, depending points the and continue when that when on or could a looking think question about trend the have with you you -- new out to been next, something at is

we Absolutely, right. Dan. the the designs, is that fresh with have I the believe look technology the performance have when along vehicles, coming, that at we you fact portfolio range on and entries these

they EV and affordability, that performance they from So getting design EV about the the and already just are the for with those credit. look want have, especially replace the dealers consumer of at when outstanding response existing new mean, the say tenders tax that is vehicle, the the to might Equinox EV I we're the they

have we're to the really we spending make awareness, dealers the to believe think to continue where portfolio. to and is, opportunity our get we dollars to industry why our outperform excited. sure in build because the on I we That's marketing that we're So an and going look are

like growth. positioned that we're to well I So continue feel

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

in guidance what's guys optimistic optimistic wanted I pricing. And first half. had on updated been performance and had going Paul, good up year you a and to in just on and -- I bit follow second your about full more the you mean, the half little

But as basis left as the on think in a have much headwind the X-year math the is you twice consumer. dealers think, loan mean I first that's a ATP, increase right? equation. [indiscernible] years, we've are, X X over it's being as about we $X,XXX your earning now. cycle, components year, seen did I $X,XXX rates, of $XX,XXX XXXX point that XXX there's last out pricing, to in ownership they And

to help deals in get So they equation to of done. the potentially to have throw kind $X,XXX

-- God mean, up, get earn and room potentially as forbid pricing go vehicles, where right? I they rates and realistic is can your a come is dealers pricing down there rates more about to it So on down, lot of there's support come what as to

be expecting. are resilient over your X I next take What's people kind this X everybody fade, than it the has but those to that it's or more of and year stronger much going might points? view think of on sort

what's with you the quite midsize at the done really went John. refreshes brought I that's is has still think done that we come say to starts incredible interest When Thanks, what rates. it and with job. as team and the And Yes. an I SUVs, even up market the look What higher well we've to actually we would held portfolio.

despite that fact And the across pretty demand board. steady payments the have gone seen up, we've hold

want of that versus continuity forward conservatism with of the really today in pricing side on a the that's some market margin little seeing all we So consistency, we're the on what level to which cash is plan, flow approach we bit the calendar make maintain because performance. it's about -- sure and

half in July for a taken think that strategy well I worked of down that that I it's said, not despite back us. we still the the started where seeing year from we've that's So fact the the date. Like the assumption year, in month to of we're

So I think us be be and more helps agile corners. around more this look nimble,

drive optimal a But go-to-market performance. to a margin good commercial at on looking really really strategies our team is doing of basis it our and product-by-product job month-by-month,

a to this about should Is So assumption as actual a we statement? as an forecast. fair that think opposed really planning

way consistently it. the That's Yes. referred we've to

time. [indiscernible] to always XXX% your unit this, follow-up. look X% just increase for at in about then XX% America, industry God I we Okay. volume, one alike. an and in ask forbid, actual straight tables, the we you when North up is X-shifts And saw maybe

be could that as into you might costs? cost think of in might think got that real mean cost system? to just X% little fixed cost But curious we have would a bit that we with the flow about of would thinking mostly volume lift well. I'm flow if about up of how come you cap, I XX%. a that kind variable high back What you Will

very I the bulk a would of got about we've variable because rates. that think I adding it be think huge opportunity. And as cost excited increases for it, it's shifts, all, line we'd equipment the Well, of first be increasing

would fun variable. it's and take think to do up, So to always well we're prepared it I that, volume be and mostly

comes question from with next Chris Our Evercore. McNally

a around that Paul, variance remains quarter. maybe Great the maybe in the just guide. question

half high pricing for gone the assumption given X.XX%, year just the comment. from your has full as second been So discussed, level, to sort of X%

pricing that other any like If there's a determined in second the variance lot because I of and reductions how XX sort run go for the fill $X.X half, in it points some are in China that of guide? variance. sort maybe -- about variance of billion the just you aspects your left can of be we other to seems cost the control, so the just for Maybe that just of million through basis of $XXX the

Yes.

words. and started $X from we What I for our it's $X We've by kind that, thanks look line if probably is billion Chris, at say about that taken initial billion. year, guidance So the trend for guide. where would improvement from thanks of you up our the now

The year largely China down. profitability. say, year's other the taken were thinking be Obviously, is billion, similar to we've that would going $X started last to that I we underperformance. We

And second volumes. then is the really EV on area

at the on a lower that they out So really bulk third lower the the bit we now volumes in it. kicked higher that a been little has explains profit variable in volumes. fact come the despite contribution on quarter contribution, were of projecting a the That

X able in that to been beginning midpoint at now were take pleased $X the really the up of And guidance the we're we've quarters. billion of a where full at I'm ahead year. our But consecutive we

great a summary because question. second That's that my was

Okay.

now year, from underperforming. also bit a fair the be is determined guide. little to that left billion billion Probably summary? that's variance $X pricing volumes. a $X Is in And and is of $X So half some the a offset EV beginning China better, the the combination second billion is reflected of

Yes.

from with Mark comes question next Our Goldman Sachs. Delaney

results. strong the on Congratulations

you're mentioned the XXX,XXX the fourth less with EV the guide in actions? still EV inventory currently extent positive fast perhaps could how incremental as contemplating, profit year demand GM does production. and You quarter using than you levels watching variable up this a ramp closely for To wholesales company cost the EV be

do We're question. I on to work the thanks we Mark, year, XXX,XXX do to that that and getting would lower we and continuing the words, need profit appreciate that. the say we we kind see looking were for low started range. the at obviously volumes, to the when variable

to I scaling trajectory is the mean We're to have of the meaningful adjust going last imported but see long business. really term ramp really And some we the already come that improvements extent doing the on lower, cells were focused trend obviously of cost we that, year. here. volumes as that we're cell the off things battery we that seeing the plants in we and and up to up

us, journey on and for it's a absolutely one doing. we're this So that is focused

a situation we're So end up isn't there. producing we demand where just want don't in target, to and a to the

happens long, which you for you do and implications, with time. you've seen We've long what a value stay residual that, got when

along that important journey. what's us continuing the to most is and So balance

we're XXX we're can. to XXX right believe to hit towards and fourth that best focused positive the can that now quarter. So profit we to And on that going we continue in variable the work

Understood. question you the slightly year Financial. My looks like to $X.XX GM billion. other raised EBIT to It on was outlook $X billion for the

billion. $X first you billion were quarter, thinking the of as think I $X.X to

generally. Financial. Financial in some any GM slight delinquency in and on speak about for talk rates. financial delinquencies about the industry and the about broadly read finance, more Maybe Maybe auto what's uptick change And driving rising GM market in more heard we've the

Yes. Dan Berce. This is

first first of a really half the $X.X in strong a of billion. $X question to of that puts $X.XX on respect range GMF the billion us we at to with your in guide, uptick billion, which to in good position part hit So had earning lower the end the obviously

pricing. that higher. And half, The than second lease be car so along going half the be headwinds less couple factor seasonally in that typically the lower the in half is the first half are our credit used of half, factors mildly second our to expectations with for that provisions would the have will the weaker second we're second second is in terminations then in

So weaker half. that's for a really reason slightly the second

baseline, prime. market job trends, steady obviously, about of at is have for GMF portfolio our savings. The XX% customer. is credit all, Now seeing -- very first They with strong. excess performance the to prime question respect still very, your And we're the plus

piece so And our portfolio been of has really stable. that

levels. mostly of bit 'XX. prime, than we've less we've recently, a But seen 'XX slightly in the we've that like seen of Now stabilization and lenders, More albeit part from deterioration at portfolio. our stabilization, other seen higher vintages in

Narayan Our next Tom from question RBC. with comes

somewhat one Level single-digit its series subscription what a think, take BMW us is Tesla's. describe than I they're in disappointing, California, Tesla product. on its rates percentage seeing first of take lower last would as many rates week X X plus is rates. take told lot plus on My its seeing is FSE XX% and pricing

rates take curious given pricing. on commentary demand was Just saying from there. about it your There's drives a think Super that safety if you've or all you Cruise you any is if what had Perhaps boring.

thoughts there, any hear to love and then a Just follow-up. have I

new ramp Our the XX Super of because on on the instance, Cruise standard. some chip in to and for have Traverse has by some Cruise been this of [indiscernible] cases, that slow on Super year-end availability have. year we nameplates expected now We're

it So subscribe I and specific don't they is it of be vehicle, it's to. can something -- of some with the can part the rates comes it because have take

follow on So up after fact you we with can that. the

volumes. in it's significant just add. through we're early just I'll Tom, It's little because period And Yes. too -- coming bit that trial a

in the lot getting should X-year XX something all and out the But XX see to would watching as I to that. it. obviously have teams next color, we say, more So people lapse period of that a over months their to over start we it's we're commercial

to economic Joe's Origin I here decision remember Great. I was actually, a But And the one. then to the quick understand an pivot largely Cruise Bolt. to follow-up, question, as do

if to purpose-built continue new tandem approach, maybe [indiscernible] still you're this to for regulators? curious to still the going just lobbying So in

traveled looking frankly, the vehicle improved Yes. is, what safety definitely to technology for we to be environment of believe will that the definitely but We have right than for, release more miles this just regulatory everyone.

rideshare both hard we're continue from to going PAB to a to continue continue. work technology, perspective allow to So to and autonomous

at improves frankly environment switching this the because the actually of regulatory Bolt And costs. to Cruise's -- time

how we're and win-win. a rideshare leverage autonomous phases what is the be think of going technology. early, to But we it's early in So to we're going

like vehicle in going future, a there's be the for think do to opportunity I the Origin.

And able without cost This to down at us and about time. scale so getting open the to regulatory Cruise uncertainty. remains was being right that at

comes with from James BNP Our last question Picariello Paribas.

To losses going just But China, beyond? this, second follow we finer in What for next is forward? GM's up China on this put and consider JV fourth sustain turn should pillars then here what for to are just the and half. expected third are year as high around on the expectation to And level, challenges to point the the strategy quarters? a

-- think we've right the new I our this critical market. Well, to cost got of get to realities the structural is

we challenges fully ongoing are And the so we -- that that have. recognizing we

structural rid the market of and there's cost. to a a actually General align we're Motors to support we've aggressively also the higher so execute and share current reduce retail as And existing get SGMW markets to stable From perspective. exports an the going plan this maintained operation inventories the perspective, important the of reality, very strategy our X-pronged got some production we is to global then emerging through -- from

into opportunity say, to we've with market end. I have we as take have the products export an where about top then And low believe we some we talked past the it, investment, capital very Paul should of the in efficient, iconic premium at to our export very mentioned them capital channel, most and and the

China and midterm this brand, that the the to a So is in Buick the I at strength look there's course think going resume of we forward we to believe brand the market of the do over growth. path when

is the leverage to that in our with exactly that situation where the we're the have and going also just plan, be I'm second will we're aggressively you, tell premium in to predict and we channel. quarter. opportunity not GMW working going and that improve have So I we'll what to

then That's in first half changed $X What's prior provide this just your it. half, referenced on you were second versus number Got costs driving And the that color outlay? the the to billion And additional that half. in can with helpful. respect additional versus has second guidance?

James. Yes,

the million of the seasonally the second piece year towards which be that going have. launches biggest $XXX to knew of half year. We of highlighted of in spend, weighted a is into the marketing we with conjunction it is number the So about that

and big other ]. there [ commodities it, The some cost piece EV retime I of are would say

assumptions So good these and would going a The through and as forward. on to our always But little going commodities, we biggest pivoted feel kind the working team that, those I X are do. performance new, half. And it look, second the is on we're we've just the bit respond categories, to far. about say, are of our so

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

see can most very our and hope flexible core new I but disciplined. our of are you have in our very strengths. ICE and that and EV being from being and the also opportunity every we're guidance, we making importantly, Thank higher leveraging opportunistic, and in much, results we everybody We're

itself. presents significant to owners A opportunity as significant is Cruise there. our to to move forward better the moving again, opportunity and once there's and forward We're going continue return capital we

was have this the do we And going to you to a opportunity future half. So back, business, success. first build great look on it drive our to and improve if we're to more continue and to that continue

Springhill, at our We're going Investor Tennessee. these topics to on expand Day all in

And you will hope so I attend.

forward see drive to chance a to with think manufacturing our have of manufacturing having flexibility. our products expertise you. to going we it's ICE newest all and that our EV up and You're look and session We close and compelling, cell

for So day. thank I you joining, and very a much you great have hope

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

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