General Motors (GM) 22 Oct 242024 Q3 Earnings call transcript

Good morning, and welcome to the General Motors Third Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded Tuesday, October 22, 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 third quarter of 2024.

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

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

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

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

everyone. long. good suppliers team, to Ashish, year all dealers morning, by you, our our and I Thank job the our recognizing want doing incredible been and begin have

grow We U.S. and have been able below-average incentives. well-managed our retail above-average pricing, with share inventories the in market to

and winning. mistaking environment That's for optimizing cash want regulatory ICE EV to I getting progress tougher. results, in our $XX automotive $XX.XX, $XX competition expect billion our be and flow. of once with both EPS $XX we And focused the billion quarter to are range why free adjusted we in of third strong our though, are EBIT raising margins. to on keep our full of adjusted diluted upper we end not adjusted again and is our will the clear, we're to the be range Now be year the at The fierce, to previous guidance.

and this America step. record year to and portfolio our We in is on North about positive wholesale make a quarter. we a track have variable this XXX,XXX EVs This in first strong are very and profit produce ICE,

quickly as EBIT get we EVs make improvements as will profitable there, on drive We continue basis with our to urgency business. working to possible. are an To the across

progress business financial growing out performance and that hit storms dealers EVs, our is ICE truly made suppliers we've one and the our quarter our Southeast. Apart the of the and scaling resiliency from the about the that after compassion of the stands things and

We and are the through by of our employees for which Cross. destruction and to and significant saddened relief life contributions contributions grateful loss Red to GM supported have the their efforts,

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profitability business redesigned At of for our profitable that than include ICE efficiency; EV areas. of and portfolio; discipline; expand results cost fixed scale and as improving Investor within on are range and SUVs models; the all these are that XXXX capital We're we wide we China. a steadily focused Day, They outgoing in momentum in new XXXX production the building improved control. more our and drivers

we're buyers. the is for segment Equinox, Equinox the models, gains share to pricing, GMC share their and grow new example, continue outgoing Chevrolet ICE arriving with For in in dealerships higher retail volume. attracting We've and Enclave strong Chevrolet and are in the about $X,XXX the Traverse, ATPs very new younger Buick seen than and market volumes greater Acadia month-over-month retail

one it And our with of I from our and best are a definitively new design, of ever delivered we've doubt, built. miles million. vehicles, is Mark full-size standpoint. that's safety ever models, car that the engineering It's high-speed some unrivaled car these marvel, Chevrolet ZRX, drove under recently current SUVs, Corvette Race along fastest and a Papenburg, production priced other we've a technology by per X,XXX-horsepower Without XXX any new can ICE the oval hour $X speed say in at a Germany, the on a

one-off Five That runs. in wasn't a miles engineers performance on XXX also exceeded hour multiple either. per

is posted seen If from competitors. breathtaking our Corvet, you strategic YouTube, of haven't of the separating performance out. Chevrolet check please and Like portfolio the video to the TikTok EVs our them GM

As earned the position third the quarter. sales we you for #X know, EV

XX%. EV Our total than are our conquest is share market, more and EV approaching rates the XX% of

and If rates we're the have manufacturing profitability. capabilities strategy appreciation seeing. you scale EV our are to driving with The drive and advantage cell sales overall battery and you Day, in a I attended achieved ES a Tennessee competitive for deeper hope Ohio Investor role have our yield are LG in major down so integration vertical is we the costs, that's world-class playing

manufacturing benefits significant this generating at all the of brands our have years training. prices, and growth, commodity be extensive the of approach some level. reap will we competitors and ourselves, our outreach of of drive and performance. produce To cell sales jointly lower EV we credits It module been before level both conducting dealer Because we're more

like them total competitive than sales For X,XXX meeting in has and advantages affordability, example, charging the we and and range, Chevrolet cost the areas EV have technology ownership. employees educate been capability about dealership more of with to

longer-range just off lower-cost are training People confident are ICE the continue leaving in EV. The with to winning EV these versions expand products. meetings XXXX in as pay truck portfolio of they really our our we energized our should in both Silverado as as and and portfolio

on will full work XXX a to go miles ability nearly the Our charge. trucks have longest-range

the standard credit. work $XX,XXX, content the priced about and most Our will for and $X,XXX at may qualify eligible full both federal affordable with are LT truck LT tax the package premium customers begin so

affordable expanded GMC a EVs. as of We starting will of Blazer and Blazer more have market as quarter, the Equinox in new an full EV our first also Sierra the EV models range well in including portfolio

to is faster. luxury IQ. technology, X and among growth, driver and as share so higher, customers another forward. performance is points advanced improvements expect than Cadillac with it OPTIQ, volume of the Cadillac sales VISTIQ stronger expected be Our No market, EV everything Escalade much about offer. mainstream delivers and conquest the to grow EV profitability we go other luxury and range, want portfolio much These customers LYRIQ, has beautiful we the to designs, brand consideration so

production to sales China of quarter to since XX% best making team our progress quarter, Let's the In quarter JVs second turn third and demand. performance grew the our for aligning GM third the where is XXXX. from

a and plug-in key role. played Our growing portfolio of EVs hybrids

ICE new outsold first time. energy our models for vehicles the fact, In

our our the has the us more year, and start Importantly, which than better manage been dealer by inventory allow costs. to pricing reduced XX% will since of

We to discipline and drive continue cost, dealer will fixed inventory, pricing on also and engagement incentives.

with as However, to planned series there as to the on hard actions do steps are next continues Board be will shareholder during restructuring and quarter profitable, can. business of we a in and that more the the to challenging, will share be is and and partner. operating we work environment meetings fourth focused soon our There China sustainable venture joint make

meantime, details provide update on to can their continues and about also the improve technology the Cruise an Cruise model. more In will their share team we cost future funding We when structure.

in in capital news you weeks where expect ahead and is the months efficiency. area Another can

and to incorporation continue cadence plants. prismatic enterprise-wide simplicity, with from we shared, assembly Kelty chemistries. and in We're refine cells continue component of winning and measured our benefits add converting EV new existing Kurt sales by with capacity we'll the strategy seeing As to a

making we're on And areas good with cooperation. progress of Hyundai specific

Investor demonstrate and expect close to first on are We of our at to remarks my deliver we true the soon. differentiates We performance nearing we growth potential. agreement, both it's what build to way commitment the in the completion for us best share competitive by investors the us made something expect and have that leadership definitive our and our reiterating strengths others prepared the know long-term Day I'll that's and from industry. to

I'd you the Paul now turn the to like to And over to you. call walk through quarter. Thank

pleased consistent of you, would our been the dedication you demonstrating team. of work morning. to results. weren't and amazing and big and our continues on none perform I possible to financial appreciate report us this for all A ongoing joining Thank have that hard focus business it I'm Mary, thanks everyone. if delivering a And this discipline well, to

we've gain achieve We've incentives been our It stellar where ICE with pricing all maintain the industry, been portfolio, in share to gains competitors. respective these SUVs than full-size able lower to continue their begins highly our pickup and to profitable with segments. market share able compared significantly strong our and market full-size to

were we the that disciplined For percentage the quarter our industry percentage X.X of incentives from average, products This last third where year's demonstrates U.S. in third approximately industry. quarter, points below the point than lower our gap our were and widened has a example, the strategy. strength go-to-market X

our the commitment cost repurchased we by to ongoing to net want that capital our allocation, discipline the I this On fixed quarter also financial in to We compared diluted end billion, we track third billion ended end with are on program XX% of $X year. meet the highlight last billion and stock shares. retiring a the to down of of $X million X.XX another worth the quarter, year. quarter share XX of count

October. ASR the that anticipate of the end be by completed We will

company retired in last you quarter, associated with is total bringing approximately when told, fourth additional that results will of compare execute we quarter shares third this All see shares Our the current can nearly the to part our well. year, as you program XXX of retire estimate number that million to program XX the the million. continues to

volumes $XX XX% offering years and supported This great sales. share retail growth to by volume XX% and is in attractive choices customers conquest wholesale along billion, our The driven product with above X segments. also EV year-over-year ICE having consecutive market higher in key up was growth at Revenue or rates of by a both EVs. with for are portfolio

diluted EBIT EBIT-adjusted $X.XX adjusted, a achieved in and margins $X.X EPS billion X.X% adjusted, We in roughly up XX% year-over-year. share

the model estimate of of of prioritizing a timing, have that these full-size ramp quarter. the support the and around was $XXX including occurred impact full-size EBIT factors had production an during fourth the refresh in forward third of would during availability. to the Some for quarter quarter SUV performance otherwise fourth pull the We pickup some quarter million the

to lower during the last $XXX EBIT higher of adjusted due compared up We cash production expenditures year by to of the capital end working improvements, driven quarter, billion automotive and volume capital million achieved QX. improved third $X.X free at flow

higher resulted allowance third adjusted, the volumes, EBIT-adjusted America valuation EV which by cost X.X%, $X quarter margins EBIT of North million driven year-over-year. billion and strong wholesale containment benefit. delivered $XXX of was This in ongoing pricing, up

The SUVs, $XXX of from especially our guidance. benefit in up assumed what was Traverse. lapped. was quarter Chevrolet half really adjustments fourth year-over-year the midsized for was on and the from last full-size million which strong year, our About we performance we from pricing pricing better in the than Pricing our and this made been SUVs of rest Corvette have primarily the that fully quarter now

accruals results adjustments. reserve from and rate remained primary causing see, warranty also our a few earlier was year-over-year can address addressing identified, are inflationary I has topic want been adjustment interest, claims fix and you pressures, expense, the to third our million warranty quarter combined issue on to as vehicles, year. financial of namely costs. Despite with The into a production in the this continued the The how $XXX both another strong. we warranty of the led in put high-volume increased

satisfaction. We of customer to and highest are committed the standards quality

for production ended levels XX of to quarter track as levels due appropriate holiday level puts customer well the ICE dealer days with seasonally us year in along help XX the EVs. fourth with increase and to launch days ICE total to end inventory on dealer to and as sales targeted timing of awareness. range XX inventory quarter per to strong vehicles, XX lower at XX our continuing season our the an wholesale EVs The Lastly, with period, discipline

down market. quarter third International $XX EBIT continued challenges China was adjusted the million year-over-year, the million, $XXX GM in driven by

equity income, the we seeing consistent international to China results and for compared prior excluding year. As stability our are business,

to approach is Middle competitive margin disciplined and East, Our growth in are South which driving cost and the America headwinds. FX and volume pricing actions and offsetting

million year-over-year to GM well and performed year. the billion GM due portfolio during and reserves range paid million $XX our within Financial $XXX of full with expectations They $X.XX of adjusted has tracking drive quarter to billion third in growth to EBT $XXX quarter. $X for to still credit consistently the the continue million, a down dividend

year Cruise expenses a in from in $XXX down the $XXX were million quarter, million operational ago, a reflecting activities. reduction

as even opportunities to expense progress. make reductions We are continually looking prioritize for we further to continue

of rest the year. Let's move now the to

are Given the narrowing to positive billion $XX range; year are XXXX and year, the the EBIT adjusted our $XX the a adjusted $XX $XX.X to free momentum at billion billion to our the rest both to we've prior full seen cash to high adjusted our automotive range. the confidence range, to guidance in and far diluted we guidance; thus to which flow the EPS $XX.XX share increasing end of $XX.X of billion

flow remains by such the certain warranty. is driven and of increased cash accruals guidance Our as strong, the timing

volume, adjusted, assumes lower For the EBIT along earlier, part fourth to $XXX be due can expected our in to attributed factors. which earnings million guidance discussed ICE quarter, the lower wholesale in with X I

full-size facilities to we a month supply our First, experienced pickups the disruption SUVs by at due that chain downtime caused produce and this of earlier few days hurricanes.

an our these have impact most vehicles, an profitable outsized of process the addition, any refreshed production will our full-size are impact profitability. production are In SUVs, which changes as have on on in rates we ramping

quarter fewer the about to holidays. days seasonality it due fourth by have as the Second, impacted to is tends production X

incorporated We results EV impact potential. reflection reiterate important also lower anticipated fourth a The earnings should in the pricing a seen incentives. company's want for have to quarter an higher industry I not part be few seasonal from closing, full to volumes In due and points. year the of as higher

year in range XXXX to XXXX. robust in In full a performance fact, are similar for results to we expecting be our

track We and reach profit EVs wholesale to positive QX. this in are and on variable year XXX,XXX approximately produce

growing. is Our EV momentum

and create are continue in our pay to products love customers the We business as fundamental and to willing for to our is this success. invest

we're the business finding at and time, profitable. same more efficiencies to While the opportunities make

comments, mile we'll Finally, This the marker, goal move goal. we And now and concludes X early that outstanding in and the call. of the end return expect our excess our capital of the way, the opening number Q&A just portion to consistently next to to towards shareholders XXXX. to by less making is not of are our the reducing shares billion progress than

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

start, to just Paul. guess I

assuming it? rate? the much you of how that, first reserve 'XX. just the -- onetime warranty, that rate should is guess, also Is go By talked continues that about into think that I'm With you you adjustment. at that can How I release sort that we half mean a accrual again? And of was least over the an about

the for thanks Joe, Yes, question.

I So while is and inflation, of the would the you're about been last events seen labor for clear right, down years. we over has it -- several was have both. claims, warranty last we've What lot over that say quarters been improved, pretty a XX% of down quality parts particularly couple the are in

see We are seeing that. We've inflation. to continued that

was on do quarter is a we the and So the warranty third it what review accruals, this determined. in

see and I problem model a issues production said There in remarks, were prior as couple, of also in quality in a couple don't the we've uncovered lines prepared fixed forward. already we years the a had that that going

eclipse this over think on largest the some And inflationary few a tailwind next stability can of be there's we part So hopefully, years there. as cycle, the comparison. we that the

housekeeping. Okay. And then maybe X just

the you this think in $XXX was inventory the maybe per million being quarter. back $XXX million quarter, I last half, talked in million about quarter line and $XXX it about

headwind. billion I year So last is I know about was thing? a that timing a all also $X.X think of Or

that. to a remainder I So to that still you I it more mind run room just want us. the seems guess expect understand bit inventory of just to little like there's I in how on --

Yes.

talked the to of what some alluded is and that this think the we've in about seasonality I difference. we So

in anticipation some some of lost the the into days. from forward third the fourth production -- in the production pulled of quarter quarter here we So

kind we the consistent targeted is of pull range. a to is by that $XXX million the forward. in end we expect But was that about So that see do with of be XX-day back to that as XX- our year

between some the guidance. the quarter third of So of raised there's we're seeing why and our some impact discrepancy and fourth quarter that's midpoint here, at

EV be was inventory the about unwind to clear, I on side. Sorry, talking the

I'm sorry.

You're lower cost the of talking market... or about

exactly. Yes,

inventory an thought question. I that Sorry, was

a but you function as know, also hand ongoing our of profitability. as so that adjustment finished we that on of as yes, in a cells improvements the both So for well have is products, function inventory finished

as a saw that to as we're little continue it So to next in slows going a get probably think we watch to 'XX. down we much we But bit a but I but think little be year-end, that. of not bit year, can as tailwind

missing the misunderstood for I question, Sorry sorry. that.

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

Just the wanted to on here. up XXXX outlook follow

in a will billion a about kind $X happen. seems EBIT sort in which are will are, improvement similar of saying the it will It's indicating yet of state pretty guys business, You to pricing, volumes that pretty you're your the to that probably there EV where total $X drop. be given product which year-over-year, EBIT, billion ICE implies losses the big benefit intros, deterioration going not the of like seems big be

I would close optimism hard at to ICE standpoint, business be as $X would of maybe skeptic say think billion probably look billion skew to might billion you it a try, of to upside say you downside. be seems billion $X that $X you're going as if flat. just $X from But the there or holds be get like upside as to to could may benefit guide. the your the So from EVs in bias the I you to this an not there would guess

I'm sort business by just of the the much. think deteriorate to So outside of EVs going actually that core is in curious what -- you

Yes.

headwinds prominent on high-level EVs, official get the as some So a of quarter progress John, that that tailwinds fourth next see into to give where preliminary our most as where process like Investor to into we 'XX We're go do. pricing going on we're we'll just being we our inflation assumptions, are the we we we into Day for typically at making in et guidance are also But cost there little as really middle and XXXX. a going go things lot we we cetera, we're gave said targets with as of as budget know because year bit you all that's but consistently the do of year. setting labor the with that we're

capitalization at capital follow-up of But kind And made that then Cruise reality also you're Day. Okay. is maybe on there. raise comment looking like It plenty capital. on some to you you one just the the of sounds have Investor

the is fund it what lower So or you motivation partner Cruise? the a maybe cost low-cost what's capital mean, may business capital there? just motivation of raising raise for in to there? Is than for be able to capital rest the or really the I getting strategic very

as sure we're as there's number that a going just I we think autonomy us general, I allows think think investing forward, we as make we in we're investment conversations And want of having to wisely. I Well, that possible. partners look in with believe to but manage in more autonomy efficiently that

to we're what looking that's do. So

with capital is probably both, a low-cost probably So partner motivation? as Mary, right, a

speculate that can Yes. want I say to I at want we ways don't be more to looking we're what efficient. just partner, but on that

industry leverage about partner where we don't always other a the or things of lot we One auto lot don't with -- do we of other OEMs people can the things a and do different with -- all of say companies. is

especially Honda. as at it's the important with Cruise we've Hyundai, do going to have we with the as that, in we so work across think really continuing we business, and do forward that the to the as looking mentioned that investment we're look there Autonomy, well. And we MOU that And with leverage

Dan Our next Barclays. with comes from question Levy

question first the start million. a the which was with $XXX up bridge, in to pricing Wanted on

this of some a I is maybe data negative. some the think little of third-party surprise appeared bit to a folks because

price, You're all and this now face tracking at of positive price over the $X of of in normalization. billion that's

more maybe gate a it bridge. some talked for the resilient on but you of refresh I to if give you up And know you pricing more not can is so color little just weaker, third-party give and just showing seeing how has the perhaps piece -- the you've what been product the refresh could for a not you I really on is about with bridge, maybe your bridge is us ICE can color you resilience. it know actually, your perhaps we're price in relates normalization talked are why flavor cycle? about industry in in even the and SUVs, pricing hold where just So

Dan. and aspect is sure, product Yes, an this the with starts been of business portfolio. we've it that of, the very proud Certainly,

still we remarks, were to with prepared only cycle a mentioned increases take not consistent we we're vehicles, price been year. have on our So that the lapping as refresh also I last pretty in able

as So fully we we've to some we tried think, year, into those increases fourth of it's get the that, lap -- from that price quarter we stabilizes as hold lap but the probably last to. something on

widening in I as behavior points I doing historically, the to even a basis inventory disciplined that average nearly lot our important quarter. incentive the the disciplined been has products think And of And well. do our approach about of XXX in with talked that has to from that fact, in think market to customers. been we've doubling our industry perspective that our September the beyond has what gap for the and very is

said, to seeing of So like and to our the products out vehicles. continue really I for we're in do But that going proud and what's there, we're that. demand the

as year, Or... refreshes SUV far typically And price as just increase? can the remind comes with you us, that the next

it should. Yes, Yes.

full-size As hopefully early later we new refreshes, come out SUV year. with next this year, the

that on come with great and more we So continue that, is think momentum products. these going to to

Okay.

on balance $X now X-part by EBIT question. raised was explain cash maybe is you cash billion by free raised of the was on even the just cash, on $XX midpoint the cash color your is One the billion though also, the is sheet. and can question free free Second maybe cash [indiscernible], on flow, And that. guide then

about Maybe a billion target. us minimum you're a a $XX can balance on position sheet. thinking you we If billion sense or think $XX of cash the is of target should of? just that You've the that is the how talked more give about level

Yes.

So done is Dan, just generally we're has cash pricing with outperformed initial year, flow, our -- the in what year, at that earnings been on the when a what over have go-to-market touch expectations, this while look have and trajectory seen the really now cash deferred free you the we've costs come costs. XX%

the look when for an rather at future So you year, cost in cash expense, not current warranty a outlays. that's cash but example, accrual against expectations of

that, So had effect and we've strong for because of cash raise the to we've has performance guide disproportionately able what been seen that our a that. actually on flow

really explains that So that.

were You're quarter we end. $XX at over right, billion

work we've strong process, continue We CapEx our balance sheet our to comfortable allocation in capital places. our are and about, both through talked as

of somewhat talked because we've have share been the We buyback working in share repurchases last banks of of as the terms the limited, about, accelerated year. tail just through end

the this down program. month, of can done we path continue that be to capital applying and expect We our allocation

Brinkman from comes with question JPMorgan. next Our Ryan

I a your pricing year couple of there Investor formal for share next to realized it only I'm to correctly, could be quarter. looking profit or anything accuracy you just hard track But were next much which to assumption of your very I'd looking guess years for were been number really the few ahead us given regard guessed the judge context the with curious out at outlook if forecast, the ahead for in you on preliminarily with record XXXX. past industry I of where as a guidance [indiscernible] in any the to it's strong introduction GM Day, continued weeks very as of XXXX?

Ryan. thanks, Well,

giving and we as information go out continue coming call. asked more we'll when new we're have on on not As as we'll the it. XXXX our XXXX more specifics that and Investor we but to at detail look to out, into But fourth provide John are refreshes said quarter at earlier Day, any close we

find maybe track way, numbers billion so pricing swing around And with billion some drive offset your lot for softer, going $X is then of to there's would it regardless that to like to if profit a can just look swing $X those that does make where numbers? the improvement, thinking you the China, you're you a that there, to that,

fixed few Well, has cutting be market is. the where of what team equation as with demonstrated done revenue respond the and side that think to that on the hopefully costs. last is resilient We've done years We've ability I over the to an well. the with

we're going you've I So demonstrating don't a that team look all to conditions. to resiliency got really driving what committed over. is discipline be changed expect we've few something that any that through. years. able and changing think But XXXX to is going going be that's less in and But to what over than seen results manage and the we're I management driving last that to performance is

with Rosner next Wolfe comes Emmanuel from question Our Research.

as obviously impressive the context It's raise the another same could performance year. outlook question our you is with one incredibly some stock, on ballpark, capital, saying, hey, working different flow you from free next cash do feel there and of was up, next that et results cash be that free this an flow building extent this maybe to for inventory rebuilding applies to My flow. well? year? this In be in that free the may benefit first cetera, somewhat year cash year, Or

favor were were our I Emmanuel. thanks, year. working mean, a in that Well, couple of things this clearly, there

you're more laugh. disciplined as free to honestly, is mentioned, if As to it's not doing might 'XX, think a be the I flow. I drive as were important, deferred well we it thinking where cash warranty our That's build really cash inventory we is some it short-term tool inventory accruals, than from with that. in just And as which use to

it's too bit So as free to tell, in soon the I we in committed driving are cash margins. as business flow think performance much but we're every to

you then I your as reiterated billion think commitment count reduce share to I hear. to a early And guess XXXX. That's Okay. great X and try in follow-up, to shares

buyback? X that You so. that seen acceleration Is Obviously, would what next $X significantly probably the like the over over just by of would be share next reduce months billion count shares recently. or XXX like Is months you're to sort few essentially? that million than your need we've targeting the a faster

this generally math? then should Just And about how think the speaking, pace we of right is buybacks? future

Yes.

So shares math we XXX And we've there. to early I will get that agree it's XXXX. we in about believe that your with that can get said there million

or no to the so, what past specific comments capital is over think I we've But shareholders. our commitment think be. year might on to I velocity So demonstrated when returning that or the

Our next question Stanley. Jonas Morgan with comes from Adam

on that side question manageable. Financial the looks Dan Berce. pretty We net X.X%, the very for charge-offs they're still a to but increased GM low, had slightly I noticed

a moderation But see if mentioned is assume we potential wanted wanted forward? in around that credit other Is to the GM going you to or as And follow-up, any level penetration flag right at XX%. concerns. see a to the for Or deal and rise performance. color to You this more forward? market a Financial for just customers this competitive movements, a going not dealers but provide see, you competitive XXXX? short-term in in your better for environment got powder to again, Just if wanting your of is more dry kind could

Yes. the Thanks for question.

what charge-offs our credit, we into spot year. almost respect expect GM the at with So on Financial going are year-to-date to

year-over-year, So things a as in planned. expect We credit going modest that's exactly seeing. what moderation did really are we're and

or still it's with is still heavily strong to levels, Our income pretty balance employment credits sheet. good good very, household very prime have household the continued perform -- pretty portfolio prime, and strong and

credit what all in much in is line expected. we developing very with all, So

loans. with on a penetration penetration work or supported terms leasing respect the results penetration, second either with part of lot subvented or the OEM And your to the in levels, question of from of we targeting

XX% XX%. to Our long-term is target

yes, that we're So October, that, slightly in right were the but of range. for we month below instance,

Adam. So there, that strategy is the

lastly, targeting on just changing. And you're CapEx, on Paul, has $XX range. the of stable Mary this mix CapEx, of stable kind type wondering how or CapEx the I'm that been billion

back CapEx some that out kind without Just capacities, shifting or Is specifically be to new rate how be? last forward, When new be particularly change did of If in? a that of how a that that a proportion, material XX that helpful. mix months you between call number infrastructure would the like of yet? very around at EV, respect any with coming AI-related could months color products, And with of might least changing? specificity might it the be AV, to ICE, might look XX be

Thanks, that. Adam. try Yes. I'll

pivoted I over product last years, think look probably and has you the CapEx portfolio our few if away from more infrastructure. towards

a wave up grow As position years made few we're to putting And we investment realize big scale you highlighted to ago at that foundation getting we as EVs. we be a us plant a able Hill. for benefits really Spring know, retooling through and Day set the because down the to in it's glad of went at Investor

as our right balance think we've balance out, the about midsized or well. EV the that see ICE and So or are we're performance so the Again, going still going Still SUVs we and the you vehicles, and put SUVs maintaining ultimately, into the then, capital whether in of struck that the ICE it's X/X small I a refreshes coming. between program forward. full-size that is midsized of trucks

call growing well. everything would to lower a of business but capital also for do from in building I do amount going vehicles that the gains what technology side We to of a the efficiency deploy administrative broad production, help that of cost we of are have our lot as

a we a very spending that $XX billion the area what against playing of that And is approach. part. think capital disciplined is manageable and earning we're So represents

at to Yes. engineering level down product because Adam, definitely execution that up leads manufacturing. I'd driving not it to, stay The across and approach, only think, we add or that, when higher-quality I thing is we're

ICE and are ICE -- have about. the are has what helpful. wait cases generation going the to definitely perspective? we decision as that flexibility -- where last it now there's we EV at until moment we we version? Are have to customer, that an mix on have being look EV, look then been next talked Paul we and really at between so make what's an that we're that do where And led are or infrastructure been from we we how to we by the we going that And a So of a

with capital. trying really market efficient our and respond we're the be to very So to

with from our next RBC. Narayan Tom comes question

mix EBIT XXX,XXX in Price mix EV $XXX price Paul, plus bridge. million, get in a on QX. increases price the think that you North sales to a America about, negative as a headwinds coming $XXX specifically, million. million QX in was was the so lower QX, to versus talked guys at I $XXX mix you QX out And target. called some

that America of I -- we in QX? right? to should understanding a that price negative in be expect So am kind Is North net net mix

thanks question. Yes, the Tom, think I for --

QX of things of said third ago at I some which to forward fourth that the we think is going run lot walk not the But lapping, like I of an of saw did year rate be. certainly that the why believe we a of as a timing that It's and between look is don't benefit we going and on that is in and you a so and haven't quarter QX. indicator really in that XXXX. think could and be it some quarter, that's

So little of that was timing but the with wholesale by augmented think the that in quarter pull talked about correct. directionally a of the forward, you're I we bit some

I especially domestic. is Mary, Okay. right persist? is pretty how and the China German term, can China, color share OEM, restructuring, then U.S. market BEV losing a mix concerning China premium the arguably put improve in in longer in the are on the but guess world these higher if to quite know so strong best you brands now from bluntly, hearing you're to committed even losses with the I things we're And

it doing it's which our very why over get hard have as around is very, losses, with well. kind the than vehicle, weighted like of now make that the the driving that as that's to business, energy new that we think believe to GLA, China, in new that's and to and things the to be Right cross turn our profitable. to full-size decisions we'd a in ICE. now for launch fact can more meetings we business improvement is of we our the the sustainable really truck we the franchise that partner Well, vehicles of of series the just We one did

transformation an happen important I little frankly, I bit that would have seen think earlier. a liked that's to

look channel, Tahoe at what So more that's -- from the participate we're have products that premium and you we scale. again, capital-light in the import a to then the that very take starting Chevrolet And gives way for. to when orders market just us with unique like

you very But size years the look go the we we're the we as term, think measured at in market China and mid So long be through. we to opportunity of when just than growth to going the that's to a prioritizing can we profitability, ago frankly from that rise China of they're definitely seem did clearly domestic participate in don't production. handful of of the different a hundreds companies competitors prioritize with way

and getting different products. what do there's then for profitably, but environment, that very our have the to provides focused where quickly challenging play we're like manner, a we as to very areas GLA I in that possible. some we we It franchises we can where are that's place believe do strength a But and that's and a have think premium other of in and participate as XXX% on

-- from comes question Deutsche next with Edison ingestion Yu Our Bank.

the up noticed First, just that have gone that miles Xx. Cruise. you indicated on We about

any Just return on given before? actually framework rough testing like curious, sort you have of might to were when unsupervised you you

hope by to well, higher as year. standard meeting to there the we'll to, by we gated role We we're be safety, and model Yes. get of driver say, of the working one, I'll average end opposed human hard -- driver. hope the but

the every is the team goal hard to that that day. is single So working

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I think country. business within we're looking to create a sustainable

partner, -- I don't want have with to how I to we remarks, series of of in with to of We as a that have go make want do -- we we're a the going partner. prepared meetings that mentioned get I our forward. ahead my so sure

we those follow decisions. as to make more So

with Picariello James from comes question BNP Paribas. next Our

the sequential bridge is at I looking full year easiest know right, in the exercise. But a guide, we're step-down for adjusted EBIT the not $X.X fourth the billion midpoint quarter. at a of

quarterly assumptions volume, seeing the a problem inventory what this you quarter? factors bridge? the that less more high prolonged ICE the intensified actions EVs? quarterly fourth U.S.? any How address help for competitor could think pricing at that inform bucket way we decline, dynamic level, GM's Is in Just are influencing in about that major dealer extent right, to And you to can in see we'll their

James. Thanks, Yes.

I to that into the all fewer don't well get right, that. quarter things the But Day, X about, there's Election there around third directionally, $XXX around as the talked in You're in of details Christmas Veterans are we There holidays, talked here. due want to as Thanksgiving about. like production fourth as Day, timing are days we million about about than

the so for model as cutover the as with on last to bit, starts that add year. lapping a up combine you when So little SUVs, well year the full-size it

that's to on where we perspective think that broad going kind of the some of is forward. we obviously, of And isolated we kind quarter, as but have given are, fourth XXXX

levels. We've or is for I as where pricing done of independent. incentive sure we're we've been the job So widen team consistent has side, that. gap really significantly somewhat we've on customer, stayed a think through good our done the taking competitor that one periods industry. in another that and pricing up products the value the said, We've the making pretty And against to

and continue a to that's our us. for that going customers strategy and going for what's do been our best products to work we're forward, So

it. Got

right, the is confirm officially on can count? what just this impact Are Just my that's ASR the anything share completed, seeing getting would that ASR, share housekeep count, follow-on intensified the competitor there? you just actions. what then final be And on you question for completed the my month,

Sure.

seen just see I behavior from -- from So competitors. customers lot as a of we've or we said, our

continue share for going year XXX our to will the time to XX will isn't of the we on most Remember, million prepared the when We And that in and our I itself worked that be we're have happened that's recent strategy demand. manage count that performance, shares manifest we We've of and this incentive talked remarks, through shares closed us. We seen when over denominator that's product about last about we it's managed million our terms diluted think new But is first levels. another done, got portfolio higher reduced the a well our deal. that. in that's in to that -- delivered shares. that credit This the EPS. be

Daniel Our with Roeska Research. from next question Bernstein comes

the $XX right about and going last and forward? between on And shed now also your companion could whether and product run that the from of of you light slowdown is kind are of launches, maybe has any in in EVs R&D EVs allocation question the broader to that in year maybe level billion Paul, the Adam's launched of thinking budget ask some EV shifted given the the market? rate question. I'll CapEx the terms

Yes.

you budget, when with of development we're total the and think sort I autonomy So combined product look at doing on. with so what

Mary in drive ability mentioned, right our of we've fund our think struck returns of out to to ability I and, terms investment. balance as our the

effort that we electric more that vehicle while Day in There's complexity from a number business the have going be products. winning and our removing budget. of work a engineering pretty and successfully Mark is strong work the take and our out at can talked product of launched and efficient to done around with simplicity part in numbers still that terms about Investor trying into So engineering solutions development goes

portfolio, to the long EV side. on So a that on looking win we're constantly at win that's requires us and going both the the term, ICE be and creating portfolio and that focused for to

at we've much CapEx look We generating consistently. ourselves total product fairly we find effectively. very performing in as can been I lot and something implement adjust. where we But development can and not that we of a there that the there's and budget a that if where for is flow, think take can affordable we're So a in think things cash situation we

target. improving of is are BEV fully is And and the you following what Mary of XXXX BTX up I Kind with for this that, then, get bit of for new phase-out just your said, on keep ICE need can there of end more that and a platform kind on the with the little kind recently but Paul on between a confident you competition? strategic, maybe to affirmed Or now of BVX the up decade? kind before keep you and

we drive the dedicated more when going -- that there's clearly definitely believe will EV Yes, work to to continue different things you platform, we're continue production look and production at I doing of complete core would the efficiency, things going of of is stretch melt and but design business, a report think any the help that different -- are and out to by cost us it's evolutionary. the imagination. take more that

should about So think you it. how that's

with from comes Evercore. McNally question next Our Chris

for start one is cost wage sort assumptions? the sort can being we which X XXXX, dead one tailwinds, question, I so being maybe you bucket a investors. Paul, [indiscernible] of main larger know of horse be prioritize the but an able make Would or the for it's important even just one I'm XXXX, beat priced to our own other not headwind and to trying just, to after for

is continue that. making than keeping Well, flat, beating talked that, thanks it is we around that horse. and I to about look dead rather for talked costs at discipline our a we that we're excluding What think Chris, cost we flat, to that the about, business. there's keep number as of depreciation. fixed the But We've committed in sure

into. business expect have as year us assumptions some be outperform. of pricing to So and if on the sure to the then irresponsible And make about that we budget is and could commercial next headwinds to expand which we is served grow to one stays budget pricing would consistent, continuing that continuing we'll have affordable well, up a and year depreciation that we the the that for to into that off going think environment levels go a backwards. we'll But set that it one that we adjust think us and set these us for see

give for results well fourth that think guidance. strategy XXXX specifics and we worked us, quarter this into get is So that's when we a we'll our and our

walk And I've lower billion the billion It's pass is of the around been is losses investors, the were a if $X I've from follow-on And XXXX, in of it next then way going or asking appreciated. $X question. EV billion year-over-year been my without surprised losses? billion that EV this Much $X sort lower question election sales achieve you so sort the asking in to down which of flat sort could Absolutely. of along, still year. EV election in getting of question that question is to to $X

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we so And as of responding to an growth next is us EVs market I bring those. the that year there element our continue think for are to in products to because customers

efficient anxiety when the you as Tesla access were like to we have solution to of XXX look customers really give a Supercharger out we're range able range with that that network, for at do supplementing over vehicles miles them. to as well there infrastructure So addressing things charging with what our proactively

we an that think So expand to continue there's to opportunity that.

to with they we is important flexible or for what's and important are. But is so, sure meeting of that it. consumers scale Clearly, and the articulated piece year as last portfolio demand, scale a them for there we're where we've an more making

see we to best year, the based today, see as on So realize our is our benefits EV where don't if adoption profitability. momentum EV that savings estimate in but we meaningful going next as grow can much, and realized, aren't those be fully obviously, going scale we we

so obviously, of just only but only mean, Paul, you're And summarize, component. is positive contribution a that, not it's to the component now. hitting volume the I margins

I effect cells some imagine also and of about things and that. you've dead talked annualization the also there's So like

one that $X on so component volume of compare. billion, obviously more is but billion lot And there's year-over-year to $X a the

the reductions efficiency about Mark that mix as to as well coming We're the number should as as well making are and production some in the market. we improvements talked terms benefits IQ that For with coming part other the see constantly some has sure. of Cadillac in Escalade of of vehicles

we today So on, but a there's where our best that's just a going of look lot moving on are lot journey. parts, our

important as the a a most projected we're good to think positive the think the even again, though I that we've at lower proven And do to map. And our year. get thing I got we company we've But of at what that be road the our is beginning that margin. can in of resiliency production contribution end we

kind that with sets scrappiness continuing what of I team is, this think, So apart.

comes Mark of Goldman Delaney question with the Sachs. line last Our from

But outlook that priced you Equinox of of $XX,XXX hit I'm XQ understand EV to XXXX? any its are at the if better EV selling have hoping to there that's version the and SKU, GM sales to starting strong prior profit particular entry-level still for can credits. IRA improvement

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think So well. I it's doing

to are continue we going options, talked about, to that's to important. as Paul As where we additional look and grow, go I forward think, be

And or flexibility into of can domestically material to extent a in with on how the has potentially flexibility. either tariffs Another manufacturing you tariffs on the to your more much U.S., imported was question production offset its increase GM there's just about vehicles reductions? cost pricing talk and/or shift

reductions. always on I think we're cost working

would careful would I either what jobs with we'll I number on candidates the When lot are with And even depends that election manufactured we do, but of process the have what will speculate policymaking on to created perspective. I the of specifically partners it I'm be. going vehicles you, paying might are ally our tell tell regardless constructively from a take. an think and attention are tariffs some of you, not the outcome. might we both you what approach them the in look continue U.S., outside, engage in the at to to

at drive think of it's jobs, think at input was that's look we motors or be the formed, in. USMCA complex to of that very there a When some when especially the being leveraged at I So all we've jobs a looking plants looking provided. cetera, drive other battery situation. et facilities I created, been have and was that lot units, for factored going And

we're to So going constructively. work

not speculate, resilient so knowing can and exactly extent to be to just to we're to disciplined and to And and make going we'll going reiterate But that said, it's growth what adjustments to what's profitability. too Paul we'll we continue happen. drive hard the to has be

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

to the vehicles our beautiful your want designs, matter, I you you have for demonstrates range I right and great because really want is see performance to right of their on buy the everybody hope that look buy. technologies, thank Appreciate great that vehicles our this Again, focus year EVs -- questions. want your that to customer vehicles participation. building

and and ways EV to improve to continue profitability. ICE drive look efficiency. to to to We're cost our going continue for capital discipline, We're our improve maintain and going we're going to

that range to XXXX. our weeks within ever that more how results leverage than ahead, XXXX intend similar in in in the we and control tailwinds see to you'll to are clearly a strong deliver So are the months

and said, China share new into we'll all as Paul in as wrap we've as January. that we'll information about this can. of more our XXXX we'll And soon said, share Cruise, other formal collaborations As we guidance

stay to you please then, soon. sure we'll and until I'm So talk safe,

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