UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

Form 10-Q


☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, ~~2022~~2023


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001-34960

GENERAL MOTORS COMPANY

(Exact name of registrant as specified in its charter)

Delaware

27-0756180

(State or other jurisdiction of
incorporation or organization)

(I.R.S. Employer
Identification No.)

300 Renaissance Center,

Detroit,

Michigan

48265

-3000

(Address of principal executive offices)

(Zip Code)

(313) 667-1500

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	GM	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☑ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

As of April ~~13, 2022~~14, 2023 there were ~~1,458,022,912~~1,390,123,499 shares of common stock outstanding.

INDEX


			Page
PART I
Item 1.	Condensed Consolidated Financial Statements		1
	Condensed Consolidated Income Statements (Unaudited)		1
	Condensed Consolidated Statements of Comprehensive Income (Unaudited)		1
	Condensed Consolidated Balance Sheets (Unaudited)		2
	Condensed Consolidated Statements of Cash Flows (Unaudited)		3
	Condensed Consolidated Statements of Equity (Unaudited)		4
	Notes to Condensed Consolidated Financial Statements		5
	Note 1.	Nature of Operations and Basis of Presentation	5
	~~Note 2.~~	~~Significant Accounting Policies~~	5
	Note 3.2.	Revenue	6
	Note 4.3.	Marketable and Other Securities	7
	Note 5.4.	GM Financial Receivables and Transactions	8
	Note 6.5.	Inventories	11
	Note 7.6.	Equipment on Operating Leases	11
	Note 8.7.	Equity in Net Assets of Nonconsolidated Affiliates	12
	Note 9.8.	Variable Interest Entities	12
	Note ~~10.~~9.	Debt	13
	Note ~~11.~~10.	Derivative Financial Instruments	14
	Note ~~12.~~11.	Product Warranty and Related Liabilities	16
	Note ~~13.~~12.	Pensions and Other Postretirement Benefits	16
	Note ~~14.~~13.	Commitments and Contingencies	17
	Note ~~15.~~14.	Income Taxes	1920
	Note 15.	Restructuring and Other Initiatives	20
	Note 16.	Stockholders' Equity and Noncontrolling Interests	1920
	Note 17.	Earnings Per Share	2122

	Note 18.	Stock Incentive Plans	2122
	Note 19.	Segment Reporting	22

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		2425
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		4041
Item 4.	Controls and Procedures		4042
PART II
Item 1.	Legal Proceedings		4143
Item 1A.	Risk Factors		4143
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		4244
Item 6.	Exhibits		4345
Signature			4446

Table of Contents

GENERAL MOTORS COMPANY AND SUBSIDIARIES

PART I

Item 1. Condensed Consolidated Financial Statements

CONDENSED CONSOLIDATED INCOME STATEMENTS

(In millions, except per share amounts) (Unaudited)

Three Months Ended
March 31, 2022 March 31, 2021
Net sales and revenue
Automotive $ 32,824 $ 29,067
GM Financial 3,155 3,407
Total net sales and revenue (Note 3) 35,979 32,474
Costs and expenses
Automotive and other cost of sales 29,353 25,115
GM Financial interest, operating and other expenses 1,926 2,279
Automotive and other selling, general and administrative expense 2,504 1,803
Total costs and expenses 33,783 29,197
Operating income (loss) 2,196 3,277
Automotive interest expense 226 250
Interest income and other non-operating income, net 517 799
Equity income (loss) (Note 8) 292 365
Income (loss) before income taxes 2,779 4,191
Income tax expense (benefit) (Note 15) (28) 1,177
Net income (loss) 2,807 3,014
Net loss (income) attributable to noncontrolling interests 131 8
Net income (loss) attributable to stockholders $ 2,939 $ 3,022
Net income (loss) attributable to common stockholders $ 1,987 $ 2,976
Earnings per share (Note 17)
Basic earnings per common share $ 1.36 $ 2.06
Weighted-average common shares outstanding – basic 1,458 1,447
Diluted earnings per common share $ 1.35 $ 2.03
Weighted-average common shares outstanding – diluted 1,470 1,464


	Three Months Ended
		March 31, 2023		March 31, 2022
Net sales and revenue
Automotive		$	36,646	$	32,824
GM Financial		3,339		3,155
Total net sales and revenue (Note 2)		39,985		35,979
Costs and expenses
Automotive and other cost of sales		32,247		29,353
GM Financial interest, operating and other expenses		2,612		1,926
Automotive and other selling, general and administrative expense		2,547		2,504

Total costs and expenses		37,407		33,783
Operating income (loss)		2,578		2,196
Automotive interest expense		234		226
Interest income and other non-operating income, net		409		517

Equity income (loss) (Note 7)		21		292
Income (loss) before income taxes		2,775		2,779
Income tax expense (benefit) (Note 14)		428		(28)


Net income (loss)		2,346		2,807
Net loss (income) attributable to noncontrolling interests		49		131
Net income (loss) attributable to stockholders		$	2,395	$	2,939

Net income (loss) attributable to common stockholders		$	2,369	$	1,987

Earnings per share (Note 17)

Basic earnings per common share		$	1.70	$	1.36
Weighted-average common shares outstanding – basic		1,396		1,458


Diluted earnings per common share		$	1.69	$	1.35
Weighted-average common shares outstanding – diluted		1,402		1,470

Dividends declared per common share		$	0.09	$	—

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In millions) (Unaudited)


		Three Months Ended						Three Months Ended
			March 31, 2022		March 31, 2021				March 31, 2023		March 31, 2022
Net income (loss)	Net income (loss)		$	2,807	$	3,014	Net income (loss)		$	2,346	$	2,807
Other comprehensive income (loss), net of tax (Note 16)	Other comprehensive income (loss), net of tax (Note 16)						Other comprehensive income (loss), net of tax (Note 16)
Foreign currency translation adjustments and other	Foreign currency translation adjustments and other		340		(5)		Foreign currency translation adjustments and other		148		340
Defined benefit plans	Defined benefit plans		103		160		Defined benefit plans		(35)		103
Other comprehensive income (loss), net of tax	Other comprehensive income (loss), net of tax		442		155		Other comprehensive income (loss), net of tax		113		442
Comprehensive income (loss)	Comprehensive income (loss)		3,250		3,169		Comprehensive income (loss)		2,460		3,250
Comprehensive income (loss) attributable to noncontrolling interests			145		15
Comprehensive loss (income) attributable to noncontrolling interests							Comprehensive loss (income) attributable to noncontrolling interests		58		145
Comprehensive income (loss) attributable to stockholders	Comprehensive income (loss) attributable to stockholders		$	3,394	$	3,184	Comprehensive income (loss) attributable to stockholders		$	2,518	$	3,394

Reference should be made to the notes to condensed consolidated financial statements.

Amounts may not add due to rounding.

Table of Contents

GENERAL MOTORS COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions, except per share amounts) (Unaudited)

March 31, 2022 December 31, 2021
ASSETS
Current Assets
Cash and cash equivalents $ 16,349 $ 20,067
Marketable debt securities (Note 4) 9,907 8,609
Accounts and notes receivable, net of allowance of $205 and $192 11,946 7,394
GM Financial receivables, net of allowance of $761 and $703 (Note 5; Note 9 at VIEs) 28,440 26,649
Inventories (Note 6) 14,838 12,988
Other current assets (Note 4; Note 9 at VIEs) 7,113 6,396
Total current assets 88,594 82,103
Non-current Assets
GM Financial receivables, net of allowance of $1,167 and $1,183 (Note 5; Note 9 at VIEs) 36,408 36,167
Equity in net assets of nonconsolidated affiliates (Note 8) 10,402 9,677
Property, net 41,708 41,115
Goodwill and intangible assets, net 5,058 5,087
Equipment on operating leases, net (Note 7; Note 9 at VIEs) 36,581 37,929
Deferred income taxes 21,287 21,152
Other assets (Note 4; Note 9 at VIEs) 11,454 11,488
Total non-current assets 162,898 162,615
Total Assets $ 251,492 $ 244,718
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable (principally trade) $ 25,240 $ 20,391
Short-term debt and current portion of long-term debt (Note 10)
Automotive 737 463
GM Financial (Note 9 at VIEs) 32,300 33,257
Accrued liabilities 21,277 20,297
Total current liabilities 79,555 74,408
Non-current Liabilities
Long-term debt (Note 10)
Automotive 16,155 16,355
GM Financial (Note 9 at VIEs) 60,613 59,304
Postretirement benefits other than pensions (Note 13) 5,722 5,743
Pensions (Note 13) 7,782 8,008
Other liabilities 14,601 15,085
Total non-current liabilities 104,873 104,495
Total Liabilities 184,429 178,903
Commitments and contingencies (Note 14) 0 0
Noncontrolling Interest - Cruise Stock Incentive Awards (Note 18) 289 —
Equity (Note 16)
Common stock, $0.01 par value 15 15
Additional paid-in capital 27,015 27,061
Retained earnings 43,879 41,937
Accumulated other comprehensive loss (8,814) (9,269)
Total stockholders’ equity 62,095 59,744
Noncontrolling interests 4,679 6,071
Total Equity 66,774 65,815
Total Liabilities and Equity $ 251,492 $ 244,718


	March 31, 2023		December 31, 2022
ASSETS
Current Assets
Cash and cash equivalents	$	18,227	$	19,153
Marketable debt securities (Note 3)	9,981		12,150

Accounts and notes receivable, net of allowance of $261 and $260	13,702		13,333
GM Financial receivables, net of allowance of $801 and $869 (Note 4; Note 8 at VIEs)	32,283		33,623
Inventories (Note 5)	17,758		15,366

Other current assets (Note 3; Note 8 at VIEs)	6,881		6,825
Total current assets	98,832		100,451
Non-current Assets

GM Financial receivables, net of allowance of $1,351 and $1,227 (Note 4; Note 8 at VIEs)	43,582		40,591
Equity in net assets of nonconsolidated affiliates (Note 7)	10,542		10,176
Property, net	46,895		45,248
Goodwill and intangible assets, net	4,968		4,945
Equipment on operating leases, net (Note 6; Note 8 at VIEs)	31,848		32,701
Deferred income taxes	20,676		20,539
Other assets (Note 3; Note 8 at VIEs)	9,661		9,386
Total non-current assets	168,173		163,586
Total Assets	$	267,004	$	264,037

LIABILITIES AND EQUITY
Current Liabilities
Accounts payable (principally trade)	$	28,931	$	27,486
Short-term debt and current portion of long-term debt (Note 9)
Automotive	425		1,959
GM Financial (Note 8 at VIEs)	36,585		36,819
Accrued liabilities	24,244		24,910
Total current liabilities	90,185		91,173
Non-current Liabilities
Long-term debt (Note 9)
Automotive	15,929		15,885
GM Financial (Note 8 at VIEs)	61,482		60,036
Postretirement benefits other than pensions (Note 12)	4,162		4,193
Pensions (Note 12)	5,697		5,698
Other liabilities	15,318		14,767
Total non-current liabilities	102,588		100,579
Total Liabilities	192,773		191,752
Commitments and contingencies (Note 13)
Noncontrolling interest - Cruise stock incentive awards	271		357
Equity (Note 16)
Common stock, $0.01 par value	14		14
Additional paid-in capital	26,323		26,428
Retained earnings	51,318		49,251
Accumulated other comprehensive loss	(7,778)		(7,901)
Total stockholders’ equity	69,877		67,792
Noncontrolling interests	4,084		4,135
Total Equity	73,961		71,927
Total Liabilities and Equity	$	267,004	$	264,037

Reference should be made to the notes to condensed consolidated financial statements.

Amounts may not add due to rounding.

Table of Contents

GENERAL MOTORS COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions) (Unaudited)


		Three Months Ended					Three Months Ended
		March 31, 2022		March 31, 2021			March 31, 2023		March 31, 2022
Cash flows from operating activities	Cash flows from operating activities					Cash flows from operating activities
Net income (loss)	Net income (loss)	$	2,807	$	3,014	Net income (loss)	$	2,346	$	2,807
Depreciation and impairment of Equipment on operating leases, net	Depreciation and impairment of Equipment on operating leases, net	1,223		1,653		Depreciation and impairment of Equipment on operating leases, net	1,241		1,223
Depreciation, amortization and impairment charges on Property, net	Depreciation, amortization and impairment charges on Property, net	1,668		1,362		Depreciation, amortization and impairment charges on Property, net	1,571		1,668
Foreign currency remeasurement and transaction (gains) losses	Foreign currency remeasurement and transaction (gains) losses	56		(73)		Foreign currency remeasurement and transaction (gains) losses	135		56

Undistributed (earnings) loss of nonconsolidated affiliates, net		(274)		(349)
Undistributed earnings of nonconsolidated affiliates, net						Undistributed earnings of nonconsolidated affiliates, net	(61)		(274)
Pension contributions and OPEB payments	Pension contributions and OPEB payments	(213)		(222)		Pension contributions and OPEB payments	(236)		(213)
Pension and OPEB income, net	Pension and OPEB income, net	(300)		(397)		Pension and OPEB income, net	(20)		(300)

Provision (benefit) for deferred taxes	Provision (benefit) for deferred taxes	(81)		1,085		Provision (benefit) for deferred taxes	46		(81)
Change in other operating assets and liabilities	Change in other operating assets and liabilities	(2,784)		(4,807)		Change in other operating assets and liabilities	(1,936)		(2,784)

Net cash provided by (used in) operating activities	Net cash provided by (used in) operating activities	2,104		1,266		Net cash provided by (used in) operating activities	3,086		2,104
Cash flows from investing activities	Cash flows from investing activities					Cash flows from investing activities
Expenditures for property	Expenditures for property	(1,661)		(878)		Expenditures for property	(2,431)		(1,661)
Available-for-sale marketable securities, acquisitions	Available-for-sale marketable securities, acquisitions	(3,451)		(2,366)		Available-for-sale marketable securities, acquisitions	(643)		(3,451)

Available-for-sale marketable securities, liquidations	Available-for-sale marketable securities, liquidations	1,960		3,632		Available-for-sale marketable securities, liquidations	2,947		1,960

Purchases of finance receivables, net	Purchases of finance receivables, net	(8,189)		(8,173)		Purchases of finance receivables, net	(8,963)		(8,189)
Principal collections and recoveries on finance receivables	Principal collections and recoveries on finance receivables	6,845		6,085		Principal collections and recoveries on finance receivables	7,282		6,845
Purchases of leased vehicles, net	Purchases of leased vehicles, net	(2,990)		(6,113)		Purchases of leased vehicles, net	(3,154)		(2,990)
Proceeds from termination of leased vehicles	Proceeds from termination of leased vehicles	3,732		4,919		Proceeds from termination of leased vehicles	3,264		3,732
Other investing activities	Other investing activities	(154)		(90)		Other investing activities	(563)		(154)

Net cash provided by (used in) investing activities	Net cash provided by (used in) investing activities	(3,909)		(2,984)		Net cash provided by (used in) investing activities	(2,262)		(3,909)
Cash flows from financing activities	Cash flows from financing activities					Cash flows from financing activities
Net increase (decrease) in short-term debt	Net increase (decrease) in short-term debt	722		1,543		Net increase (decrease) in short-term debt	(167)		722
Proceeds from issuance of debt (original maturities greater than three months)	Proceeds from issuance of debt (original maturities greater than three months)	10,685		13,350		Proceeds from issuance of debt (original maturities greater than three months)	11,487		10,685
Payments on debt (original maturities greater than three months)	Payments on debt (original maturities greater than three months)	(10,827)		(12,702)		Payments on debt (original maturities greater than three months)	(12,127)		(10,827)
Issuance (redemptions) of subsidiary preferred stock (Note 16)		(2,124)		1,537
Payments to purchase common stock						Payments to purchase common stock	(369)		—
Issuance (redemption) of subsidiary stock (Note 16)						Issuance (redemption) of subsidiary stock (Note 16)	—		(2,124)
Dividends paid	Dividends paid	(73)		(76)		Dividends paid	(185)		(73)
Other financing activities	Other financing activities	(235)		(35)		Other financing activities	(324)		(235)

Net cash provided by (used in) financing activities	Net cash provided by (used in) financing activities	(1,852)		3,617		Net cash provided by (used in) financing activities	(1,685)		(1,852)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	Effect of exchange rate changes on cash, cash equivalents and restricted cash	93		(140)		Effect of exchange rate changes on cash, cash equivalents and restricted cash	54		93
Net increase (decrease) in cash, cash equivalents and restricted cash	Net increase (decrease) in cash, cash equivalents and restricted cash	(3,564)		1,759		Net increase (decrease) in cash, cash equivalents and restricted cash	(807)		(3,564)
Cash, cash equivalents and restricted cash at beginning of period	Cash, cash equivalents and restricted cash at beginning of period	23,542		23,117		Cash, cash equivalents and restricted cash at beginning of period	21,948		23,542
Cash, cash equivalents and restricted cash at end of period	Cash, cash equivalents and restricted cash at end of period	$	19,978	$	24,876	Cash, cash equivalents and restricted cash at end of period	$	21,141	$	19,978

Significant Non-cash Investing and Financing Activity	Significant Non-cash Investing and Financing Activity					Significant Non-cash Investing and Financing Activity
Non-cash property additions	Non-cash property additions	$	1,931	$	1,710	Non-cash property additions	$	3,041	$	1,931

Reference should be made to the notes to condensed consolidated financial statements.

Amounts may not add due to rounding.

Table of Contents

GENERAL MOTORS COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(In millions) (Unaudited)

Common Stockholders’ Noncontrolling Interests Total Equity
(Permanent Equity) Noncontrolling Interest
Cruise Stock Incentive Awards
(Temporary Equity)
Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Loss
Balance at January 1, 2021 $ 14 $ 26,542 $ 31,962 $ (13,488) $ 4,647 $ 49,677 $ —
Net income (loss) — — 3,022 — (8) 3,014 —
Other comprehensive income (loss) — — — 162 (7) 155 —
Issuance (redemption) of subsidiary preferred stock (Note 16) — — — — 1,537 1,537 —
Stock based compensation — 132 — — — 132 —
Dividends to noncontrolling interests — — — — (61) (61) —
Other — (7) 4 — (8) (11) —
Balance at March 31, 2021 $ 14 $ 26,667 $ 34,988 $ (13,326) $ 6,100 $ 54,443 $ —
Balance at January 1, 2022 $ 15 $ 27,061 $ 41,937 $ (9,269) $ 6,071 $ 65,815 $ —
Net income (loss) — — 2,939 — (131) 2,807 —
Other comprehensive income (loss) — — — 456 (13) 442 —
Issuance (redemption) of subsidiary preferred stock (Note 16) — — (909) — (1,215) (2,124) —
Stock based compensation — (31) (1) — — (32) 289
Dividends to noncontrolling interests — — (12) — (1) (14) —
Other — (15) (74) — (31) (120) —
Balance at March 31, 2022 $ 15 $ 27,015 $ 43,879 $ (8,814) $ 4,679 $ 66,774 $ 289


	Common Stockholders’								Noncontrolling Interests		Total Equity (Permanent Equity)		Noncontrolling Interest Cruise Stock Incentive Awards (Temporary Equity)
	Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss
Balance at January 1, 2022	$	15	$	27,061	$	41,937	$	(9,269)	$	6,071	$	65,815	$	—

Net income (loss)	—		—		2,939		—		(131)		2,807		—
Other comprehensive income (loss)	—		—		—		456		(13)		442		—
Issuance (redemption) of subsidiary stock (Note 16)	—		—		(909)		—		(1,215)		(2,124)		—

Stock based compensation	—		(31)		(1)		—		—		(32)		289

Dividends to noncontrolling interests	—		—		(12)		—		(1)		(14)		—
Other	—		(15)		(74)		—		(31)		(120)		—
Balance at March 31, 2022	$	15	$	27,015	$	43,879	$	(8,814)	$	4,679	$	66,774	$	289












































Balance at January 1, 2023	$	14	$	26,428	$	49,251	$	(7,901)	$	4,135	$	71,927	$	357


Net income (loss)	—		—		2,395		—		(49)		2,346		—
Other comprehensive income (loss)	—		—		—		123		(9)		113		—

Purchase of common stock	—		(168)		(201)		—		—		(369)		—
Stock based compensation	—		(34)		(2)		—		—		(35)		7
Cash dividends paid on common stock	—		—		(126)		—		—		(126)		—

Other	—		97		—		—		7		103		(93)
Balance at March 31, 2023	$	14	$	26,323	$	51,318	$	(7,778)	$	4,084	$	73,961	$	271

Reference should be made to the notes to condensed consolidated financial statements.

Amounts may not add due to rounding.

Table of Contents

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Nature of Operations and Basis of Presentation

General Motors Company (sometimes referred to in this Quarterly Report on Form 10-Q as we, our, us, ourselves, the Company, General Motors or GM) designs, builds and sells trucks, crossovers, cars and automobile parts and provides software-enabled services and subscriptions worldwide. Additionally, we are investing in and growing an autonomous vehicle (AV) business. We also provide automotive financing services through General Motors Financial Company, Inc. (GM Financial). We analyze the results of our operations through the following segments: GM North America (GMNA), GM International (GMI), Cruise, and GM Financial. Cruise is our global segment responsible for the development and commercialization of AV technology. Nonsegment operations are classified as Corporate. Corporate includes certain centrally recorded income and costs such as interest, income taxes, corporate expenditures and certain nonsegment-specific revenues and expenses.

The condensed consolidated financial statements are prepared in conformity with U.S. GAAP pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) for interim financial information. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. The condensed consolidated financial statements include all adjustments, which consist of normal recurring adjustments and transactions or events discretely impacting the interim periods, considered necessary by management to fairly state our results of operations, financial position and cash flows. The operating results for interim periods are not necessarily indicative of results that may be expected for any other interim period or for the full year. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our ~~2021~~2022 Form 10-K. Except for per share amounts or as otherwise specified, amounts presented within tables are stated in millions. Certain columns and rows may not add due to rounding.

Throughout this report, we refer to General Motors Company and its consolidated subsidiaries in a simplified manner and on a collective basis, using words like "we," "our," "us" and "the Company." This drafting style is suggested by the SEC and is not meant to indicate that General Motors Company, the publicly traded parent company, or any particular subsidiary of the parent company, owns or operates any particular asset, business or property. The operations and businesses described in this report are owned and operated by distinct subsidiaries of General Motors Company.

Principles of Consolidation We consolidate entities that we control due to ownership of a majority voting interest and we consolidate variable interest entities (VIEs) when we are the primary beneficiary. All intercompany balances and transactions are eliminated in consolidation. Our share of earnings or losses of nonconsolidated affiliates is included in our consolidated operating results using the equity method of accounting when we are able to exercise significant influence over the operating and financial decisions of the affiliate.

GM Financial The amounts presented for GM Financial are adjusted to reflect the impact on GM Financial's deferred tax positions and provision for income taxes resulting from the inclusion of GM Financial in our consolidated tax return and to eliminate the effect of transactions between GM Financial and the other members of the consolidated group. Accordingly, the amounts presented will differ from those presented by GM Financial on a stand-alone basis.

~~Note 2. Significant Accounting Policies~~

The information presented on Stock Incentive Plans updates our Significant Accounting Policies information presented in our 2021 Form 10-K to reflect the effect of modifications made to Cruise stock incentive awards during the three months ended March 31, 2022. Refer to Note 18 to our condensed consolidated financial statements for additional information on the modifications made.

~~Stock Incentive Plans~~ Our stock incentive plans include Restricted Stock Units (RSUs), Restricted Stock Awards (RSAs), Performance Stock Units (PSUs), stock options and awards that may be settled in our stock, the stock of our subsidiaries or in cash. We measure and record compensation expense based on the fair value of GM or Cruise's common stock on the date of grant for RSUs, RSAs and PSUs and the grant date fair value, determined utilizing a lattice model or the Black-Scholes formula for stock options and PSUs. We record compensation cost for service-based RSUs, RSAs, PSUs and service-based stock options on a straight-line basis over the entire vesting period, or for retirement eligible employees over the requisite service period. In March 2022, all outstanding RSUs that settle in Cruise’s common stock were modified to remove the liquidity vesting condition. Prospectively, RSUs that will settle in Cruise’s common stock will solely vest upon satisfaction of a service condition. Compensation cost for awards that do not have an established accounting grant date, but for which the service inception date has been established, or are settled in cash is based generally on the fair value of GM or Cruise's common stock at the end of each reporting period. Compensation cost is also recorded on stock issued to settle awards based on the fair value of Cruise's common stock until such time that the stock has been issued for more than six months. We use the graded vesting method to record compensation cost for stock options with market conditions over the lesser of the vesting period or the time period an employee becomes eligible to retain the award at retirement.

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GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)

~~Accounting Standards Not Yet Adopted~~ In March 2022, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) 2022-02 "Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures" (ASU 2022-02), which eliminates the accounting guidance for troubled debt restructurings (TDRs) by creditors that have adopted ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" and enhances certain disclosure requirements. The adoption of ASU 2022-02 is expected to be insignificant.

Note 3.2. Revenue

The following table disaggregates our revenue by major source:

Three Months Ended March 31, 2022
GMNA GMI Corporate Total Automotive Cruise GM Financial Eliminations/Reclassifications Total
Vehicle, parts and accessories $ 28,572 $ 3,014 $ 5 $ 31,591 $ — $ — $ — $ 31,591
Used vehicles 75 5 — 80 — — — 80
Services and other 809 295 48 1,152 26 — (25) 1,153
Automotive net sales and revenue 29,456 3,313 53 32,823 26 — (25) 32,824
Leased vehicle income — — — — — 2,066 — 2,066
Finance charge income — — — — — 1,010 — 1,010
Other income — — — — — 80 (1) 79
GM Financial net sales and revenue — — — — — 3,156 (1) 3,155
Net sales and revenue $ 29,456 $ 3,313 $ 53 $ 32,823 $ 26 $ 3,156 $ (26) $ 35,979



	Three Months Ended March 31, 2023
	GMNA		GMI		Corporate		Total Automotive		Cruise		GM Financial		Eliminations/Reclassifications		Total
Vehicle, parts and accessories	$	31,876	$	3,342	$	9	$	35,227	$	—	$	—	$	—	$	35,227
Used vehicles	175		5		—		180		—		—		—		180
Services and other	837		380		22		1,239		25		—		(25)		1,239
Automotive net sales and revenue	32,889		3,727		31		36,646		25		—		(25)		36,646
Leased vehicle income	—		—		—		—		—		1,818		—		1,818
Finance charge income	—		—		—		—		—		1,368		(3)		1,366
Other income	—		—		—		—		—		156		(1)		155
GM Financial net sales and revenue	—		—		—		—		—		3,343		(4)		3,339
Net sales and revenue	$	32,889	$	3,727	$	31	$	36,646	$	25	$	3,343	$	(29)	$	39,985


		Three Months Ended March 31, 2021																	Three Months Ended March 31, 2022
		GMNA		GMI		Corporate		Total Automotive		Cruise		GM Financial		Eliminations/ Reclassifications		Total			GMNA		GMI		Corporate		Total Automotive		Cruise		GM Financial		Eliminations/ Reclassifications		Total
Vehicle, parts and accessories	Vehicle, parts and accessories	$	24,920	$	2,801	$	—	$	27,721	$	—	$	—	$	—	$	27,721	Vehicle, parts and accessories	$	28,572	$	3,014	$	5	$	31,591	$	—	$	—	$	—	$	31,591
Used vehicles	Used vehicles	228		13		—		241		—		—		—		241		Used vehicles	75		5		—		80		—		—		—		80
Services and other	Services and other	809		272		19		1,100		30		—		(25)		1,105		Services and other	809		295		48		1,152		26		—		(25)		1,153
Automotive net sales and revenue	Automotive net sales and revenue	25,957		3,086		19		29,062		30		—		(25)		29,067		Automotive net sales and revenue	29,456		3,313		53		32,823		26		—		(25)		32,824
Leased vehicle income	Leased vehicle income	—		—		—		—		—		2,321		—		2,321		Leased vehicle income	—		—		—		—		—		2,066		—		2,066
Finance charge income	Finance charge income	—		—		—		—		—		1,016		—		1,016		Finance charge income	—		—		—		—		—		1,010		—		1,010
Other income	Other income	—		—		—		—		—		70		—		70		Other income	—		—		—		—		—		80		(1)		79
GM Financial net sales and revenue	GM Financial net sales and revenue	—		—		—		—		—		3,407		—		3,407		GM Financial net sales and revenue	—		—		—		—		—		3,156		(1)		3,155
Net sales and revenue	Net sales and revenue	$	25,957	$	3,086	$	19	$	29,062	$	30	$	3,407	$	(25)	$	32,474	Net sales and revenue	$	29,456	$	3,313	$	53	$	32,823	$	26	$	3,156	$	(26)	$	35,979

Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. Adjustments to sales incentives for previously recognized sales increased revenue by an insignificant amount in the three months ended March 31, ~~2022~~2023 and ~~2021.~~2022.

Contract liabilities in our Automotive segments primarily consist of maintenance, extended warranty and other service contracts of ~~$2.8~~$4.0 billion and ~~$2.5~~$3.3 billion at March 31, ~~2022~~2023 and December 31, ~~2021,~~2022, which are included in Accrued liabilities and Other liabilities. We recognized revenue of ~~$444~~$408 million and ~~$395~~$444 million related to contract liabilities in the three months ended March 31, ~~2022~~2023 and ~~2021.~~2022. We expect to recognize revenue of ~~$1.1~~$1.2 billion in the nine months ending December 31, ~~2022~~2023 and ~~$577~~$989 million, ~~$354~~$750 million and ~~$731 million~~$1.1 billion in the years ending December 31, ~~2023,~~ 2024, 2025 and thereafter related to contract liabilities at March 31, ~~2022.~~2023.

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GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)

Note 4.3. Marketable and Other Securities

The following table summarizes the fair value of cash equivalents and marketable debt securities, which approximates cost:


		Fair Value Level	March 31, 2022		December 31, 2021			Fair Value Level	March 31, 2023		December 31, 2022
Cash and cash equivalents	Cash and cash equivalents						Cash and cash equivalents
Cash and time deposits	Cash and time deposits		$	6,979	$	7,881	Cash and time deposits		$	9,521	$	8,921
Available-for-sale debt securities	Available-for-sale debt securities						Available-for-sale debt securities
U.S. government and agencies	U.S. government and agencies	2	630		722		U.S. government and agencies	2	126		1,012
Corporate debt	Corporate debt	2	4,439		5,321		Corporate debt	2	1,712		2,778
Sovereign debt	Sovereign debt	2	1,186		2,105		Sovereign debt	2	823		1,828
Total available-for-sale debt securities – cash equivalents	Total available-for-sale debt securities – cash equivalents		6,255		8,148		Total available-for-sale debt securities – cash equivalents		2,661		5,618
Money market funds	Money market funds	1	3,114		4,038		Money market funds	1	6,045		4,613
Total cash and cash equivalents(a)	Total cash and cash equivalents(a)		$	16,349	$	20,067	Total cash and cash equivalents(a)		$	18,227	$	19,153
Marketable debt securities	Marketable debt securities						Marketable debt securities

U.S. government and agencies	U.S. government and agencies	2	$	2,844	$	2,071	U.S. government and agencies	2	$	4,174	$	4,357
Corporate debt	Corporate debt	2	3,630		3,396		Corporate debt	2	4,375		5,147
Mortgage and asset-backed	Mortgage and asset-backed	2	600		575		Mortgage and asset-backed	2	552		538
Sovereign debt	Sovereign debt	2	2,833		2,567		Sovereign debt	2	880		2,108
Total available-for-sale debt securities – marketable securities(b)	Total available-for-sale debt securities – marketable securities(b)		$	9,907	$	8,609	Total available-for-sale debt securities – marketable securities(b)		$	9,981	$	12,150
Restricted cash	Restricted cash						Restricted cash
Cash and cash equivalents	Cash and cash equivalents		$	374	$	466	Cash and cash equivalents		$	335	$	341
Money market funds	Money market funds	1	3,255		3,009		Money market funds	1	2,579		2,455
Total restricted cash	Total restricted cash		$	3,629	$	3,475	Total restricted cash		$	2,914	$	2,796

Available-for-sale debt securities included above with contractual maturities(c)	Available-for-sale debt securities included above with contractual maturities(c)						Available-for-sale debt securities included above with contractual maturities(c)
Due in one year or less	Due in one year or less		$	10,681			Due in one year or less		$	6,079
Due between one and five years	Due between one and five years		4,831				Due between one and five years		5,901
Total available-for-sale debt securities with contractual maturities	Total available-for-sale debt securities with contractual maturities		$	15,512			Total available-for-sale debt securities with contractual maturities		$	11,979

__________

(a)Includes ~~$2.6~~$1.9 billion and ~~$1.6 billion in Cruise at March 31, 2022 and December 31, 2021.~~

~~(b)Includes~~ $1.5 billion in Cruise at March 31, ~~2022~~2023 and December 31, ~~2021.~~2022.

(b)Includes $612 million and $1.4 billion in Cruise at March 31, 2023 and December 31, 2022.

(c)Excludes mortgage and asset-backed securities of ~~$600~~$552 million at March 31, ~~2022~~2023 as these securities are not due at a single maturity date.

Proceeds from the sale of available-for-sale debt securities sold prior to maturity were ~~$464~~$380 million and ~~$504~~$464 million in the three months ended March 31, ~~2022~~2023 and ~~2021.~~2022. Net unrealized gains and losses on available-for-sale debt securities were insignificant in the three months ended March 31, ~~2022~~2023 and ~~2021.~~2022. Cumulative unrealized ~~gains and~~ losses on available-for-sale debt securities were ~~insignificant~~$275 million and $344 million at March 31, ~~2022~~2023 and December 31, ~~2021.~~

2022.

~~Table of Contents~~

~~GENERAL MOTORS COMPANY AND SUBSIDIARIES~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)~~

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets to the total shown in the condensed consolidated statement of cash flows:


	March 31, ~~2022~~2023
Cash and cash equivalents	$	~~16,349~~18,227
Restricted cash included in Other current assets	~~3,127~~2,467
Restricted cash included in Other assets	~~503~~447
Total	$	~~19,978~~21,141

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GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)

Note 5.4. GM Financial Receivables and Transactions


		March 31, 2022						December 31, 2021							March 31, 2023						December 31, 2022
		Retail		Commercial(a)		Total		Retail		Commercial(a)		Total			Retail		Commercial(a)		Total		Retail		Commercial(a)		Total

GM Financial receivables, net of fees	GM Financial receivables, net of fees	$	59,503	$	7,274	$	66,776	$	58,093	$	6,609	$	64,702	GM Financial receivables, net of fees	$	67,704	$	10,313	$	78,017	$	65,322	$	10,988	$	76,310
Less: allowance for loan losses	Less: allowance for loan losses	(1,884)		(44)		(1,928)		(1,839)		(47)		(1,886)		Less: allowance for loan losses	(2,123)		(29)		(2,152)		(2,062)		(34)		(2,096)
GM Financial receivables, net	GM Financial receivables, net	$	57,618	$	7,230	$	64,848	$	56,254	$	6,562	$	62,816	GM Financial receivables, net	$	65,581	$	10,283	$	75,865	$	63,260	$	10,954	$	74,214

Fair value of GM Financial receivables utilizing Level 2 inputs	Fair value of GM Financial receivables utilizing Level 2 inputs					$	7,230					$	6,562	Fair value of GM Financial receivables utilizing Level 2 inputs					$	10,283					$	10,954
Fair value of GM Financial receivables utilizing Level 3 inputs	Fair value of GM Financial receivables utilizing Level 3 inputs					$	57,774					$	57,613	Fair value of GM Financial receivables utilizing Level 3 inputs					$	65,165					$	62,150

__________

(a)Net of dealer cash management balances of ~~$1.2~~$2.2 billion and ~~$1.0~~$1.9 billion at March 31, ~~2022~~2023 and December 31, ~~2021.~~2022. Under the cash management program, subject to certain conditions, a dealer may choose to reduce the amount of interest on its floorplan line by making principal payments to GM Financial in advance.


		Three Months Ended						Three Months Ended
			March 31, 2022		March 31, 2021				March 31, 2023		March 31, 2022
Allowance for loan losses at beginning of period	Allowance for loan losses at beginning of period		$	1,886	$	1,978	Allowance for loan losses at beginning of period		$	2,096	$	1,886

Provision for loan losses	Provision for loan losses		122		(26)		Provision for loan losses		131		122
Charge-offs	Charge-offs		(275)		(253)		Charge-offs		(322)		(275)
Recoveries	Recoveries		177		150		Recoveries		187		177
Effect of foreign currency			18		(14)
Effect of foreign currency and other							Effect of foreign currency and other		61		18
Allowance for loan losses at end of period	Allowance for loan losses at end of period		$	1,928	$	1,835	Allowance for loan losses at end of period		$	2,152	$	1,928

Retail Finance Receivables GM Financial's retail finance receivable portfolio includes loans made to consumers and businesses to finance the purchase of vehicles for personal and commercial use. The following tables are consolidated summaries of the retail finance receivables by FICO score or its equivalent, determined at origination, for each vintage of the retail finance receivables portfolio at March 31, ~~2022~~2023 and December 31, ~~2021:~~2022:


		Year of Origination												March 31, 2022					Year of Origination												March 31, 2023
		2022		2021		2020		2019		2018		Prior		Total		Percent			2023		2022		2021		2020		2019		Prior		Total		Percent
Prime – FICO score 680 and greater	Prime – FICO score 680 and greater	$	6,019	$	17,792	$	11,121	$	3,540	$	1,912	$	655	$	41,039	69.0	%	Prime – FICO score 680 and greater	$	6,996	$	20,633	$	12,223	$	7,149	$	1,915	$	914	$	49,829	73.6	%
Near-prime – FICO score 620 to 679	Near-prime – FICO score 620 to 679	856		3,569		2,153		1,089		553		274		8,494		14.3	%	Near-prime – FICO score 620 to 679	832		3,012		2,389		1,345		599		322		8,498		12.6	%
Sub-prime – FICO score less than 620	Sub-prime – FICO score less than 620	929		3,720		2,258		1,563		831		669		9,970		16.8	%	Sub-prime – FICO score less than 620	835		3,054		2,525		1,443		916		603		9,377		13.8	%
Retail finance receivables, net of fees	Retail finance receivables, net of fees	$	7,804	$	25,081	$	15,531	$	6,192	$	3,296	$	1,599	$	59,503	100.0	%	Retail finance receivables, net of fees	$	8,663	$	26,699	$	17,138	$	9,936	$	3,429	$	1,839	$	67,704	100.0	%


	Year of Origination												December 31, 2022
	2022		2021		2020		2019		2018		Prior		Total		Percent
Prime – FICO score 680 and greater	$	22,677	$	13,399	$	7,991	$	2,254	$	1,019	$	205	$	47,543	72.8	%
Near-prime – FICO score 620 to 679	3,202		2,601		1,487		688		310		104		8,392		12.8	%
Sub-prime – FICO score less than 620	3,211		2,746		1,604		1,051		496		280		9,388		14.4	%
Retail finance receivables, net of fees	$	29,090	$	18,745	$	11,081	$	3,992	$	1,824	$	589	$	65,322	100.0	%

Table of Contents

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)

Year of Origination December 31, 2021
2021 2020 2019 2018 2017 Prior Total Percent
Prime – FICO score 680 and greater $ 19,729 $ 12,408 $ 4,078 $ 2,298 $ 763 $ 143 $ 39,419 67.9 %
Near-prime – FICO score 620 to 679 3,856 2,388 1,229 648 274 84 8,479 14.6 %
Sub-prime – FICO score less than 620 4,053 2,528 1,777 972 570 295 10,195 17.5 %
Retail finance receivables, net of fees $ 27,638 $ 17,324 $ 7,084 $ 3,918 $ 1,607 $ 522 $ 58,093 100.0 %

GM Financial reviews the ongoing credit quality of retail finance receivables based on customer payment activity. A retail account is considered delinquent if a substantial portion of a scheduled payment has not been received by the date the payment was contractually due. Retail finance receivables are collateralized by vehicle titles and, subject to local laws, GM Financial generally has the right to repossess the vehicle in the event the customer defaults on the payment terms of the contract. The accrual of finance charge income had been suspended on delinquent retail finance receivables with contractual amounts due of ~~$527~~$585 million and ~~$602~~$685 million at March 31, ~~2022~~2023 and December 31, ~~2021.~~2022. The following tables are consolidated summaries of the ~~delinquency status of the outstanding~~ amortized cost of retail finance receivables by delinquency status, for each vintage of the portfolio at March 31, ~~2022~~2023 and December 31, ~~2021,~~2022, as well as summary totals for March 31, ~~2021:~~2022:


		Year of Origination												March 31, 2022				March 31, 2021					Year of Origination												March 31, 2023				March 31, 2022
		2022		2021		2020		2019		2018		Prior		Total		Percent		Total		Percent			2023		2022		2021		2020		2019		Prior		Total		Percent		Total		Percent
0-to-30 days	0-to-30 days	$	7,788	$	24,672	$	15,197	$	5,934	$	3,139	$	1,448	$	58,179	97.8	%	$	52,367	98.1	%	0-to-30 days	$	8,646	$	26,262	$	16,648	$	9,640	$	3,236	$	1,676	$	66,109	97.6	%	$	58,179	97.8	%
31-to-60 days	31-to-60 days	15		298		246		192		119		113		983		1.7	%	741		1.4	%	31-to-60 days	17		316		363		222		146		124		1,188		1.8	%	983		1.7	%
Greater-than-60 days	Greater-than-60 days	—		95		79		59		34		34		302		0.5	%	257		0.5	%	Greater-than-60 days	1		104		112		68		43		36		363		0.5	%	302		0.5	%
Finance receivables more than 30 days delinquent	Finance receivables more than 30 days delinquent	15		393		325		251		153		148		1,285		2.2	%	998		1.9	%	Finance receivables more than 30 days delinquent	17		420		475		290		190		160		1,551		2.3	%	1,285		2.2	%
In repossession	In repossession	—		16		9		7		3		3		39		0.1	%	32		—	%	In repossession	—		17		15		6		3		2		44		0.1	%	39		0.1	%
Finance receivables more than 30 days delinquent or in repossession	Finance receivables more than 30 days delinquent or in repossession	15		409		334		258		157		150		1,324		2.2	%	1,030		1.9	%	Finance receivables more than 30 days delinquent or in repossession	17		437		489		296		193		162		1,595		2.4	%	1,324		2.2	%
Retail finance receivables, net of fees	Retail finance receivables, net of fees	$	7,804	$	25,081	$	15,531	$	6,192	$	3,296	$	1,599	$	59,503	100.0	%	$	53,397	100.0	%	Retail finance receivables, net of fees	$	8,663	$	26,699	$	17,138	$	9,936	$	3,429	$	1,839	$	67,704	100.0	%	$	59,503	100.0	%


		Year of Origination												December 31, 2021			Year of Origination														December 31, 2022
		2021		2020		2019		2018		2017		Prior			Total			Percent			2022		2021		2020		2019		2018		Prior		Total		Percent
0-to-30 days	0-to-30 days	$	27,270	$	16,945	$	6,772	$	3,721	$	1,478	$	440		$	56,626		97.5	%	0-to-30 days	$	28,676	$	18,128	$	10,702	$	3,743	$	1,685	$	493	$	63,426	97.1	%
31-to-60 days	31-to-60 days	273		276		230		147		97		60			1,083			1.8	%	31-to-60 days	310		452		275		184		103		69		1,393		2.1	%
Greater-than-60 days	Greater-than-60 days	83		93		76		46		30		21			349			0.6	%	Greater-than-60 days	93		150		98		62		35		26		465		0.7	%
Finance receivables more than 30 days delinquent	Finance receivables more than 30 days delinquent	356		369		306		193		127		81			1,432			2.4	%	Finance receivables more than 30 days delinquent	403		603		373		246		138		95		1,857		2.8	%
In repossession	In repossession	12		10		6		4		2		1			35			0.1	%	In repossession	11		14		6		4		2		1		39		0.1	%
Finance receivables more than 30 days delinquent or in repossession	Finance receivables more than 30 days delinquent or in repossession	368		379		312		197		129		82			1,467			2.5	%	Finance receivables more than 30 days delinquent or in repossession	414		617		380		249		140		96		1,896		2.9	%
Retail finance receivables, net of fees	Retail finance receivables, net of fees	$	27,638	$	17,324	$	7,084	$	3,918	$	1,607	$	522		$	58,093		100.0	%	Retail finance receivables, net of fees	$	29,090	$	18,745	$	11,081	$	3,992	$	1,824	$	589	$	65,322	100.0	%

~~The outstanding amortized cost of retail finance receivables that are considered TDRs was $1.9 billion at March 31, 2022, including $183 million in nonaccrual loans.~~

~~Table of Contents~~

~~GENERAL MOTORS COMPANY AND SUBSIDIARIES~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)~~

Commercial Finance Receivables GM Financial's commercial finance receivables consist of dealer financings, primarily for inventory purchases. Proprietary models are used to assign a risk rating to each dealer. GM Financial performs periodic credit reviews of each dealership and adjusts the dealership's risk rating, if necessary. There were no commercial finance receivables on nonaccrual status at March 31, ~~2022.~~2023.

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GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)

GM Financial's commercial risk model and risk rating categories are as follows:


Rating						Description
I						Performing accounts with strong to acceptable financial metrics with at least satisfactory capacity to meet financial commitments.
II						Performing accounts experiencing potential weakness in financial metrics and repayment prospects resulting in increased monitoring.
III						Non-Performing accounts with inadequate paying capacity for current obligations and have the distinct possibility of creating a loss if deficiencies are not corrected.
IV						Non-Performing accounts with inadequate paying capacity for current obligations and inherent weaknesses that make collection of liquidation in full highly questionable or improbable.

Dealers with III and IV risk ratings are subject to additional monitoring and restrictions on funding, including suspension of lines of credit and liquidation of assets. The following tables summarize the credit risk profile by dealer risk rating of commercial finance receivables at March 31, ~~2022~~2023 and December 31, ~~2021:~~2022:


		Year of Origination														March 31, 2022				Year of Origination(a)														March 31, 2023
		Revolving		2022		2021		2020		2019		2018		Prior		Total		Percent				Revolving		2023		2022		2021		2020		2019		Prior		Total		Percent
I	I	$	5,834	$	129	$	412	$	398	$	102	$	44	$	56	$	6,974	95.9	%		I	$	8,823	$	71	$	435	$	336	$	338	$	87	$	42	$	10,133	98.3	%
II	II	204		—		4		16		13		—		3		240		3.3	%		II	94		—		—		1		—		—		—		96		0.9	%
III	III	58		—		—		—		1		—		1		60		0.8	%		III	59		—		15		—		—		10		—		84		0.8	%
IV	IV	—		—		—		—		—		—		—		—		—	%		IV	—		—		—		—		—		—		—		—		—	%
Commercial finance receivables, net of fees	Commercial finance receivables, net of fees	$	6,095	$	129	$	416	$	413	$	115	$	44	$	60	$	7,274	100.0	%		Commercial finance receivables, net of fees	$	8,976	$	71	$	450	$	338	$	338	$	97	$	42	$	10,313	100.0	%

__________

(a)

Year of Origination December 31, 2021
Revolving 2021 2020 2019 2018 2017 Prior Total Percent
I $ 5,210 $ 420 $ 396 $ 120 $ 50 $ 50 $ 10 $ 6,256 94.7 %
II 207 3 16 12 — 3 — 241 3.6 %
III 81 8 15 2 — 2 4 112 1.7 %
IV — — — — — — — — — %
Commercial finance receivables, net of fees $ 5,498 $ 431 $ 427 $ 134 $ 50 $ 55 $ 14 $ 6,609 100.0 %

Floorplan advances comprise ~~94%~~96% of the total revolving ~~balance at March 31, 2022 and December 31, 2021.~~balance. Dealer term loans are presented by year of origination.


	Year of Origination(a)														December 31, 2022
	Revolving		2022		2021		2020		2019		2018		Prior			Total		Percent
I	$	9,493	$	438	$	356	$	360	$	91	$	38	$	18		$	10,794	98.2	%
II	89		—		1		—		—		—		—			91		0.8	%
III	78		15		—		—		10		—		—			104		0.9	%
IV	—		—		—		—		—		—		—			—		—	%
Commercial finance receivables, net of fees	$	9,660	$	453	$	357	$	360	$	102	$	38	$	18		$	10,988	100.0	%

__________

10(a)Floorplan advances comprise 97% of the total revolving balance. Dealer term loans are presented by year of origination.

~~Table of Contents~~

~~GENERAL MOTORS COMPANY AND SUBSIDIARIES~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)~~

Transactions with GM Financial The following table shows transactions between our Automotive segments and GM Financial. These amounts are presented in GM Financial's condensed consolidated balance sheets and statements of income.


		March 31, 2022		December 31, 2021			March 31, 2023		December 31, 2022
Condensed Consolidated Balance Sheets(a)	Condensed Consolidated Balance Sheets(a)					Condensed Consolidated Balance Sheets(a)
Commercial finance receivables, net due from GM consolidated dealers	Commercial finance receivables, net due from GM consolidated dealers	$	122	$	163	Commercial finance receivables, net due from GM consolidated dealers	$	163	$	187

Receivables from Cruise						Receivables from Cruise	$	151	$	113
Subvention receivable(b)	Subvention receivable(b)	$	357	$	282	Subvention receivable(b)	$	594	$	469

Commercial loan funding payable	Commercial loan funding payable	$	41	$	26	Commercial loan funding payable	$	72	$	105

Three Months Ended
March 31, 2022 March 31, 2021
Condensed Consolidated Statements of Income
Interest subvention earned on finance receivables $ 221 $ 188
Leased vehicle subvention earned $ 547 $ 721

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GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)


	Three Months Ended
		March 31, 2023		March 31, 2022
Condensed Consolidated Statements of Income
Interest subvention earned on finance receivables		$	279	$	221
Leased vehicle subvention earned		$	393	$	547

__________

(a)All balance sheet amounts are eliminated upon consolidation.

(b)Our Automotive segments made cash payments to GM Financial for subvention of ~~$439~~$749 million and ~~$1.0 billion~~$439 million in the three months ended March 31, ~~2022~~2023 and ~~2021.~~2022.

GM Financial's Board of Directors declared and paid dividends of ~~$600~~$450 million on its common stock in the three months ended March 31, ~~2021.~~2023.

Note 6.5. Inventories


		March 31, 2022		December 31, 2021			March 31, 2023		December 31, 2022
Total productive material, supplies and work in process	Total productive material, supplies and work in process	$	8,695	$	8,240	Total productive material, supplies and work in process	$	8,822	$	8,014
Finished product, including service parts	Finished product, including service parts	6,143		4,748		Finished product, including service parts	8,935		7,353
Total inventories	Total inventories	$	14,838	$	12,988	Total inventories	$	17,758	$	15,366

Note 7.6. Equipment on Operating Leases

Equipment on operating leases consists of leases to retail customers of GM Financial.


		March 31, 2022		December 31, 2021			March 31, 2023		December 31, 2022
Equipment on operating leases	Equipment on operating leases	$	45,669	$	47,423	Equipment on operating leases	$	39,991	$	40,919
Less: accumulated depreciation	Less: accumulated depreciation	(9,088)		(9,494)		Less: accumulated depreciation	(8,143)		(8,218)
Equipment on operating leases, net	Equipment on operating leases, net	$	36,581	$	37,929	Equipment on operating leases, net	$	31,848	$	32,701

The estimated residual value of our leased assets at the end of the lease term was ~~$28.1~~$24.1 billion and ~~$29.1~~$24.7 billion at March 31, ~~2022~~2023 and December 31, ~~2021.~~2022.

Depreciation expense related to Equipment on operating leases, net was $1.2 billion ~~and $1.7 billion~~ in the three months ended March 31, ~~2022~~2023 and ~~2021.~~2022.

The following table summarizes lease payments due to GM Financial on leases to retail customers:

Year Ending December 31,
2022 2023 2024 2025 2026 Thereafter Total
Lease receipts under operating leases $ 4,167 $ 3,790 $ 1,546 $ 213 $ 4 $ — $ 9,721


	Year Ending December 31,
	2023		2024		2025		2026		2027		Thereafter		Total
Lease receipts under operating leases	$	3,807	$	3,293	$	1,505	$	243	$	8	$	—	$	8,855

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GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)

Note 8.7. Equity in Net Assets of Nonconsolidated Affiliates

Nonconsolidated affiliates are entities in which we maintain an equity ownership interest and for which we use the equity method of accounting due to our ability to exert significant influence over decisions relating to their operating and financial affairs. Revenue and expenses of our joint ventures are not consolidated into our financial statements; rather, our proportionate share of the earnings of each joint venture is reflected as Equity ~~income.~~income (loss) or Automotive and other cost of sales.


		Three Months Ended						Three Months Ended
			March 31, 2022		March 31, 2021				March 31, 2023		March 31, 2022
Automotive China equity income (loss)	Automotive China equity income (loss)		$	234	$	308	Automotive China equity income (loss)		$	83	$	234
Other joint ventures equity income (loss)(a)	Other joint ventures equity income (loss)(a)		59		57		Other joint ventures equity income (loss)(a)		(8)		59
Total Equity income (loss)	Total Equity income (loss)		$	292	$	365	Total Equity income (loss)		$	75	$	292

__________

(a)Equity earnings related to Ultium Cells Holdings LLC are presented in Automotive and other cost of sales as this entity is integral to the operations of our business by providing battery cells for our electric vehicles (EVs). In the three months ended March 31, 2023, equity earnings related to Ultium Cells Holdings LLC were insignificant.

There have been no significant ownership changes in our Automotive China joint ventures (Automotive China JVs) since December 31, ~~2021.~~2022.


		Three Months Ended						Three Months Ended
			March 31, 2022		March 31, 2021				March 31, 2023		March 31, 2022
Summarized Operating Data of Automotive China JVs	Summarized Operating Data of Automotive China JVs						Summarized Operating Data of Automotive China JVs
Automotive China JVs' net sales	Automotive China JVs' net sales		$	8,992	$	9,875	Automotive China JVs' net sales		$	5,833	$	8,992
Automotive China JVs' net income (loss)	Automotive China JVs' net income (loss)		$	505	$	586	Automotive China JVs' net income (loss)		$	123	$	505

Dividends declared but not paid from our nonconsolidated affiliates were insignificant at March 31, ~~2022~~2023 and December 31, ~~2021.~~2022. Dividends received from our nonconsolidated affiliates were insignificant in the three months ended March 31, ~~2022~~2023 and ~~2021.~~2022. Undistributed earnings from our nonconsolidated affiliates were ~~$2.4~~$2.0 billion and ~~$2.1~~$1.9 billion at March 31, ~~2022~~2023 and December 31, ~~2021.~~2022.

Note 9.8. Variable Interest Entities

Consolidated VIEs

Automotive Financing – GM Financial

GM Financial uses special purpose entities (SPEs) that are considered VIEs to issue variable funding notes to third party, bank-sponsored warehouse facilities or asset-backed securities to investors in securitization transactions. The debt issued by these VIEs is backed by finance receivables and leasing-related assets transferred to the VIEs (Securitized Assets). GM Financial determined that it is the primary beneficiary of the SPEs because the servicing responsibilities for the Securitized Assets give GM Financial the power to direct the activities that most significantly impact the performance of the VIEs and the variable interests in the VIEs give GM Financial the obligation to absorb losses and the right to receive residual returns that could potentially be significant. The assets of the VIEs serve as the sole source of repayment for the debt issued by these entities. Investors in the notes issued by the VIEs do not have recourse to GM Financial or its other assets, with the exception of customary representation and warranty repurchase provisions and indemnities that GM Financial provides as the servicer. GM Financial is not required to provide additional financial support to these SPEs. While these subsidiaries are included in GM Financial's condensed consolidated financial statements, they are separate legal entities and the finance receivables, lease-related assets and cash held by them are legally owned by them and are not available to GM Financial's creditors or creditors of GM Financial's other subsidiaries.

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GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)

The following table summarizes the assets and liabilities related to GM Financial's consolidated VIEs:


		March 31, 2022		December 31, 2021			March 31, 2023		December 31, 2022
Restricted cash – current	Restricted cash – current	$	2,546	$	2,291	Restricted cash – current	$	2,271	$	2,176
Restricted cash – non-current	Restricted cash – non-current	$	407	$	449	Restricted cash – non-current	$	367	$	360
GM Financial receivables, net of fees – current	GM Financial receivables, net of fees – current	$	14,518	$	15,344	GM Financial receivables, net of fees – current	$	17,968	$	19,896
GM Financial receivables, net of fees – non-current	GM Financial receivables, net of fees – non-current	$	15,799	$	16,518	GM Financial receivables, net of fees – non-current	$	20,031	$	18,748
GM Financial equipment on operating leases, net	GM Financial equipment on operating leases, net	$	16,148	$	16,143	GM Financial equipment on operating leases, net	$	16,414	$	18,456
GM Financial short-term debt and current portion of long-term debt	GM Financial short-term debt and current portion of long-term debt	$	18,210	$	19,876	GM Financial short-term debt and current portion of long-term debt	$	19,903	$	21,643
GM Financial long-term debt	GM Financial long-term debt	$	19,079	$	19,401	GM Financial long-term debt	$	21,410	$	20,545

GM Financial recognizes finance charge, leased vehicle and fee income on the Securitized Assets and interest expense on the secured debt issued in a securitization transaction and records a provision for loan losses to recognize loan losses expected over the remaining life of the finance receivables.

Nonconsolidated VIEs

Automotive

Nonconsolidated VIEs principally include automotive related operating entities to which we provided financial support to ensure that our supply needs for production are met or are not disrupted. Our variable interests in these nonconsolidated VIEs include equity investments, accounts and loans receivable, committed financial support and other off-balance sheet arrangements. The carrying amounts of assets were approximately ~~$1.0~~$1.9 billion and $1.6 billion and liabilities were insignificant related to our nonconsolidated VIEs at March 31, ~~2022. The carrying amounts of assets were approximately $850 million~~2023 and ~~liabilities were insignificant related to our nonconsolidated VIEs at~~ December 31, ~~2021.~~2022. Our maximum exposure to loss as a result of our involvement with these VIEs was approximately ~~$2.1~~$3.3 billion, inclusive of approximately ~~$1.0~~$1.2 billion and ~~$1.2~~$1.4 billion in committed capital contributions to Ultium Cells Holdings LLC, at March 31, ~~2022~~2023 and December 31, ~~2021.~~2022. Our maximum exposure to loss, and required capital contributions, could vary depending on Ultium Cells Holdings LLC's requirements and access to capital. We currently lack the power through voting or similar rights to direct the activities of these entities that most significantly affect their economic performance.

Note ~~10.~~9. Debt

Automotive The following table presents debt in our automotive operations:


		March 31, 2022					December 31, 2021						March 31, 2023					December 31, 2022
		Carrying Amount		Fair Value			Carrying Amount		Fair Value				Carrying Amount		Fair Value			Carrying Amount		Fair Value
Secured debt	Secured debt	$	165	$	176		$	192	$	212		Secured debt	$	134	$	134		$	124	$	123
Unsecured debt(a)	Unsecured debt(a)	16,404		17,821			16,277		19,995			Unsecured debt(a)	15,799		15,171			17,340		16,323
Finance lease liabilities	Finance lease liabilities	324		328			349		362			Finance lease liabilities	421		429			381		381
Total automotive debt(b)	Total automotive debt(b)	$	16,893	$	18,325		$	16,818	$	20,569		Total automotive debt(b)	$	16,354	$	15,734		$	17,844	$	16,828

Fair value utilizing Level 1 inputs	Fair value utilizing Level 1 inputs			$	16,815				$	19,085		Fair value utilizing Level 1 inputs			$	14,837				$	15,971
Fair value utilizing Level 2 inputs	Fair value utilizing Level 2 inputs			$	1,509				$	1,484		Fair value utilizing Level 2 inputs			$	897				$	857

Available under credit facility agreements(c)	Available under credit facility agreements(c)			$	15,188				$	15,208		Available under credit facility agreements(c)			$	13,526				$	15,095
Weighted-average interest rate on outstanding short-term debt(d)	Weighted-average interest rate on outstanding short-term debt(d)			12.1		%			9.8		%	Weighted-average interest rate on outstanding short-term debt(d)			9.5		%			6.1		%
Weighted-average interest rate on outstanding long-term debt(d)	Weighted-average interest rate on outstanding long-term debt(d)			5.7		%			5.8		%	Weighted-average interest rate on outstanding long-term debt(d)			5.8		%			5.8		%

__________

(a)Primarily consists of senior notes.

(b)Includes net discount and debt issuance costs of ~~$540~~$531 million and ~~$512~~$525 million at March 31, ~~2022~~2023 and December 31, ~~2021.~~2022.

(c)Excludes our 364-day, $2.0 billion facility allocated for exclusive use by GM Financial.

(d)Includes coupon rates on debt denominated in various foreign currencies and interest free loans.

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GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)

In ~~April 2022,~~March 2023, we redeemed our $1.5 billion, 4.875% senior unsecured notes with a maturity date of October 2023 and recorded an insignificant loss.

Also, in March 2023, we renewed and reduced the total borrowing capacity of our five-year, $11.2 billion facility to $10.0 billion, which now matures March 31, 2028. We also renewed and reduced the total borrowing capacity of our three-year, $4.3 billion facility to $4.1 billion, which now matures March 31, 2026, and renewed our 364-day, $2.0 billion revolving credit facility allocated for the exclusive use of GM Financial, which now matures March 30, 2024. The renewed credit facilities are based on ~~April 4, 2023.~~

Term Secured Overnight Financing Rate (Term SOFR) whereas the previous credit facilities were based on the London Interbank Offered Rate (LIBOR).

GM Financial The following table presents debt of GM Financial:


		March 31, 2022				December 31, 2021					March 31, 2023				December 31, 2022
		Carrying Amount		Fair Value		Carrying Amount		Fair Value			Carrying Amount		Fair Value		Carrying Amount		Fair Value
Secured debt	Secured debt	$	37,362	$	37,002	$	39,338	$	39,401	Secured debt	$	41,253	$	40,773	$	42,131	$	41,467
Unsecured debt	Unsecured debt	55,552		54,648		53,223		54,357		Unsecured debt	56,814		55,009		54,723		52,270
Total GM Financial debt	Total GM Financial debt	$	92,913	$	91,649	$	92,561	$	93,758	Total GM Financial debt	$	98,067	$	95,782	$	96,854	$	93,738

Fair value utilizing Level 2 inputs	Fair value utilizing Level 2 inputs			$	89,810			$	92,250	Fair value utilizing Level 2 inputs			$	93,799			$	91,545
Fair value utilizing Level 3 inputs	Fair value utilizing Level 3 inputs			$	1,839			$	1,508	Fair value utilizing Level 3 inputs			$	1,983			$	2,192

Secured debt consists of revolving credit facilities and securitization notes payable. Most of the secured debt was issued by VIEs and is repayable only from proceeds related to the underlying pledged assets. Refer to Note 98 to our condensed consolidated financial statements for additional information on GM Financial's involvement with VIEs. In the three months ended March 31, ~~2022,~~2023, GM Financial renewed revolving credit facilities with total borrowing capacity of ~~$1.9~~$1.8 billion and issued ~~$5.2~~$5.1 billion in aggregate principal amount of securitization notes payable with an initial ~~weighted average~~weighted-average interest rate of ~~1.74%~~5.25% and maturity dates ranging from ~~2023~~2027 to ~~2029.~~2032.

Unsecured debt consists of senior notes, credit facilities and other unsecured debt. In the three months ended March 31, ~~2022,~~2023, GM Financial issued ~~$3.7~~$3.2 billion in aggregate principal amount of senior notes with an initial ~~weighted average~~weighted-average interest rate of ~~2.40%~~5.41% and maturity dates ranging from ~~2024~~2026 to ~~2032.~~

2033.

Note ~~11.~~10. Derivative Financial Instruments

Automotive The following table presents the notional amounts of derivative financial instruments in our automotive operations:


		Fair Value Level	March 31, 2022		December 31, 2021			Fair Value Level	March 31, 2023		December 31, 2022

Derivatives not designated as hedges(a)	Derivatives not designated as hedges(a)						Derivatives not designated as hedges(a)
Foreign currency	Foreign currency	2	$	4,377	$	4,228	Foreign currency	2	$	3,176	$	4,072

Commodity	Commodity	2	1,668		1,549		Commodity	2	901		1,075
Stellantis warrants(b)		2	44		45

Total derivative financial instruments	Total derivative financial instruments		$	6,090	$	5,822	Total derivative financial instruments		$	4,077	$	5,148

__________

(a)The fair value of these derivative instruments at March 31, ~~2022~~2023 and December 31, ~~2021~~2022 and the gains/losses included in our condensed consolidated income statements for the three months ended March 31, ~~2022~~2023 and ~~2021~~2022 were insignificant, unless otherwise noted.

~~(b)~~Our 39.7 million warrants in Stellantis N.V. (Stellantis) may be exercised at any time, in one or more tranches, from August 2022 through July 2026. Upon exercise, the warrants will convert into 69.2 million common shares of Stellantis. The fair value of these warrants, located in Other assets, was $1.2 billion and $1.4 billion at March 31, 2022 and December 31, 2021. We recorded a loss in Interest income and other non-operating income, net of $197 million and a gain of $210 million in the three months ended March 31, 2022 and 2021.

We estimate the fair value of the Stellantis warrants using a Black-Scholes formula. The significant inputs to the model include the Stellantis stock price and the estimated dividend yield. We are entitled to receive any dividends declared by Stellantis through the conversion date upon exercise of the warrants.

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GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)

GM Financial The following table presents the gross fair value amounts of GM Financial's derivative financial instruments and the associated notional amounts:


		Fair Value Level	March 31, 2022						December 31, 2021							Fair Value Level	March 31, 2023						December 31, 2022
			Notional		Fair Value of Assets		Fair Value of Liabilities		Notional		Fair Value of Assets		Fair Value of Liabilities				Notional		Fair Value of Assets		Fair Value of Liabilities		Notional		Fair Value of Assets		Fair Value of Liabilities
Derivatives designated as hedges(a)	Derivatives designated as hedges(a)														Derivatives designated as hedges(a)
Fair value hedges	Fair value hedges														Fair value hedges
Interest rate swaps	Interest rate swaps	2	$	19,310	$	11	$	345	$	15,058	$	74	$	88	Interest rate swaps	2	$	16,559	$	8	$	334	$	19,950	$	—	$	821
Foreign currency swaps		2	—		—		—		682		—		59

Cash flow hedges	Cash flow hedges														Cash flow hedges
Interest rate swaps	Interest rate swaps	2	709		17		4		611		12		4		Interest rate swaps	2	1,637		33		3		1,434		34		1
Foreign currency swaps(b)	Foreign currency swaps(b)	2	7,945		79		221		7,419		85		201		Foreign currency swaps(b)	2	8,013		3		497		6,852		—		586
Derivatives not designated as hedges(a)	Derivatives not designated as hedges(a)														Derivatives not designated as hedges(a)
Interest rate contracts	Interest rate contracts	2	108,709		1,245		797		110,053		846		339		Interest rate contracts	2	114,353		1,924		2,073		113,975		2,268		1,984
Foreign currency contracts		2	—		—		—		148		—		—

Total derivative financial instruments~~(b)~~(c)	Total derivative financial instruments~~(b)~~(c)		$	136,674	$	1,353	$	1,368	$	133,971	$	1,017	$	691	Total derivative financial instruments~~(b)~~(c)		$	140,562	$	1,968	$	2,907	$	142,212	$	2,302	$	3,392

__________

(a)The gains/losses included in our condensed consolidated income statements and statements of comprehensive income for the three months ended March 31, ~~2022~~2023 and ~~2021~~2022 were insignificant, unless otherwise noted. Amounts accrued for interest payments in a net receivable position are included in Other assets. Amounts accrued for interest payments in a net payable position are included in Other liabilities.

(b)The effect of foreign currency cash flow hedges in the consolidated statements of comprehensive income include an insignificant gain and an insignificant loss recognized in Accumulated other comprehensive loss, and an insignificant gain and a $149 million loss reclassified from Accumulated other comprehensive loss into income for the three months ended March 31, 2023 and 2022.

(c)GM Financial held ~~$323~~$480 million and ~~$376~~$553 million of collateral from counterparties available for netting against GM Financial's asset positions, and posted ~~$432 million~~$1.2 billion and ~~an insignificant amount~~$1.5 billion of collateral to counterparties available for netting against GM Financial's liability positions at March 31, ~~2022~~2023 and December 31, ~~2021.~~2022.

The fair value for Level 2 instruments was derived using the market approach based on observable market inputs including quoted prices of similar instruments and foreign exchange and interest rate forward curves.

The following amounts were recorded in the condensed consolidated balance sheets related to items designated and qualifying as hedged items in fair value hedging relationships:


		March 31, 2022				December 31, 2021					March 31, 2023				December 31, 2022
		Carrying Amount of Hedged Items		Cumulative Amount of Fair Value Hedging Adjustments(a)		Carrying Amount of Hedged Items		Cumulative Amount of Fair Value Hedging Adjustments(a)			Carrying Amount of Hedged Items		Cumulative Amount of Fair Value Hedging Adjustments(a)		Carrying Amount of Hedged Items		Cumulative Amount of Fair Value Hedging Adjustments(a)
Short-term unsecured debt	Short-term unsecured debt	$	1,503	$	8	$	1,338	$	(1)	Short-term unsecured debt	$	3,712	$	(12)	$	3,048	$	2
Long-term unsecured debt	Long-term unsecured debt	24,654		146		23,626		(225)		Long-term unsecured debt	25,545		764		25,271		779
GM Financial unsecured debt	GM Financial unsecured debt	$	26,157	$	153	$	24,964	$	(226)	GM Financial unsecured debt	$	29,257	$	752	$	28,319	$	781

__________

(a)Includes ~~$196 million and $246~~$470 million of unamortized ~~gains~~losses and an insignificant amount remaining on hedged items for which hedge accounting has been discontinued at March 31, ~~2022~~2023 and December 31, ~~2021.~~2022.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)

Note ~~12.~~11. Product Warranty and Related Liabilities


		Three Months Ended						Three Months Ended
			March 31, 2022		March 31, 2021				March 31, 2023		March 31, 2022
Product Warranty and Related Liabilities	Product Warranty and Related Liabilities						Product Warranty and Related Liabilities
Warranty balance at beginning of period	Warranty balance at beginning of period		$	9,774	$	8,242	Warranty balance at beginning of period		$	8,530	$	9,774
Warranties issued and assumed in period – recall campaigns	Warranties issued and assumed in period – recall campaigns		132		120		Warranties issued and assumed in period – recall campaigns		236		132
Warranties issued and assumed in period – product warranty	Warranties issued and assumed in period – product warranty		461		443		Warranties issued and assumed in period – product warranty		490		461
Payments	Payments		(1,077)		(733)		Payments		(1,058)		(1,077)
Adjustments to pre-existing warranties	Adjustments to pre-existing warranties		(5)		11		Adjustments to pre-existing warranties		279		(5)
Effect of foreign currency and other	Effect of foreign currency and other		17		(6)		Effect of foreign currency and other		5		17
Warranty balance at end of period	Warranty balance at end of period		9,302		8,077		Warranty balance at end of period		8,482		9,302
Less: Supplier recoveries balance at end of period(a)	Less: Supplier recoveries balance at end of period(a)		2,025		193		Less: Supplier recoveries balance at end of period(a)		1,157		2,025
Warranty balance, net of supplier recoveries at end of period	Warranty balance, net of supplier recoveries at end of period		$	7,277	$	7,884	Warranty balance, net of supplier recoveries at end of period		$	7,325	$	7,277

__________

(a)The current portion of supplier recoveries is recorded in Accounts and notes receivable, net of allowance and the non-current portion is recorded in Other assets.


		Three Months Ended						Three Months Ended
			March 31, 2022		March 31, 2021				March 31, 2023		March 31, 2022
Product warranty expense, net of recoveries
Product Warranty Expense, Net of Recoveries							Product Warranty Expense, Net of Recoveries
Warranties issued and assumed in period	Warranties issued and assumed in period		$	593	$	563	Warranties issued and assumed in period		$	726	$	593
Supplier recoveries accrued in period	Supplier recoveries accrued in period		(57)		(72)		Supplier recoveries accrued in period		(44)		(57)
Adjustments and other	Adjustments and other		12		5		Adjustments and other		284		12
Warranty expense, net of supplier recoveries	Warranty expense, net of supplier recoveries		$	548	$	496	Warranty expense, net of supplier recoveries		$	966	$	548

We estimate our reasonably possible loss in excess of amounts accrued for recall campaigns to be insignificant at March 31, ~~2022.~~2023. Refer to Note 1413 to our condensed consolidated financial statements for more details.

Note ~~13.~~12. Pensions and Other Postretirement Benefits


		Three Months Ended March 31, 2022								Three Months Ended March 31, 2021												Three Months Ended March 31, 2023										Three Months Ended March 31, 2022
		Pension Benefits				Global OPEB Plans				Pension Benefits									Global OPEB Plans			Pension Benefits								Global OPEB Plans		Pension Benefits				Global OPEB Plans
		U.S.		Non-U.S.				U.S.				Non-U.S.						U.S.					Non-U.S.					U.S.				Non-U.S.
Service cost	Service cost	$	58	$	35			$	4			$	65			$	38					$	4	Service cost	$	44			$		42	$	2	$	58	$	35	$	4
Interest cost	Interest cost	323		76		37				269				59					31		Interest cost	568				161				59		323		76		37
Expected return on plan assets	Expected return on plan assets	(750)		(139)		—				(795)				(152)					—		Expected return on plan assets	(730)				(168)				—		(750)		(139)		—
Amortization of prior service cost (credit)	Amortization of prior service cost (credit)	(1)		1		(1)				(1)				1					(2)		Amortization of prior service cost (credit)	(1)				1				—		(1)		1		(1)
Amortization of net actuarial losses		5		35		17				7				54					25
Amortization of net actuarial (gains) losses																					Amortization of net actuarial (gains) losses	—				8				(6)		5		35		17

Net periodic pension and OPEB (income) expense	Net periodic pension and OPEB (income) expense	$	(365)	$	8	$	57			$	(455)			$	—				$	58	Net periodic pension and OPEB (income) expense	$	(119)			$	44			$	55	$	(365)	$	8	$	57

The non-service cost components of net periodic pension and other postretirement benefits (OPEB) income of ~~$376~~$86 million and ~~$483~~$376 million in the three months ended March 31, ~~2022~~2023 and ~~2021~~2022 are presented in Interest income and other non-operating income, net.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)

Note ~~14.~~13. Commitments and Contingencies

Litigation-Related Liability and Tax Administrative Matters In the normal course of our business, we are named from time to time as a defendant in various legal actions, including arbitrations, class actions and other litigation. We identify below the material individual proceedings and investigations where we believe a material loss is reasonably possible or probable. We accrue for matters when we believe that losses are probable and can be reasonably estimated. At March 31, ~~2022~~2023 and December 31, ~~2021,~~2022, we had accruals of ~~$1.4~~$1.1 billion in Accrued liabilities and Other liabilities. In many matters, it is inherently difficult to determine whether loss is probable or reasonably possible or to estimate the size or range of the possible loss. Accordingly, while we believe that appropriate accruals have been established for losses that are probable and can be reasonably estimated, it is possible that adverse outcomes from such proceedings could exceed the amounts accrued by an amount that could be material to our results of operations or cash flows in any particular reporting period.

GM Korea ~~Wage~~Subcontract Workers Litigation GM Korea Company (GM Korea) is party to litigation with current and former subcontract workers over allegations that they are entitled to the same wages and benefits provided to full-time employees, and to be hired as full-time employees. In May 2018 and September 2020, the Korean labor authorities issued adverse administrative orders finding that GM Korea must hire certain current subcontract workers as full-time employees. GM Korea appealed the May 2018 and September 2020 orders. InSince June 2020, the Seoul High Court (an intermediate-level appellate court) ruled against GM Korea in ~~one of the~~eight subcontract worker ~~claims.~~cases. Although GM Korea has appealed ~~this decision~~these decisions to the Supreme Court of the Republic of ~~Korea.~~Korea (Korea Supreme Court), GM Korea has since hired certain of its subcontract workers as full-time employees. At March 31, ~~2022,~~2023, our accrual covering certain asserted claims and claims that we believe are probable of assertion and for which liability is probable was approximately ~~$287~~$261 million. We estimate the reasonably possible loss in excess of amounts accrued for other current subcontract workers who may assert similar claims to be approximately ~~$109~~$94 million at March 31, ~~2022.~~2023. We are currently unable to estimate any reasonably possible material loss or range of loss that may result from additional claims that may be asserted by former subcontract workers.

Other Litigation-Related Liability and Tax Administrative Matters Various other legal actions, including class actions, governmental investigations, claims and proceedings are pending against us or our related companies or joint ventures, including, but not limited to, matters arising out of alleged product defects; employment-related matters; product and workplace safety, vehicle emissions and fuel economy regulations; product warranties; financial services; dealer, supplier and other contractual relationships; government regulations relating to competition issues; tax-related matters not subject to the provision of Accounting Standards Codification 740, "Income Taxes" (indirect tax-related matters); product design, manufacture and performance; consumer protection laws; and environmental protection laws, including laws regulating air emissions, water discharges, waste management and environmental remediation from stationary sources. We also from time to time receive subpoenas and other inquiries or requests for information from agencies or other representatives of U.S. federal, state and foreign governments on a variety of issues.

There are several putative class actions pending against GM in federal courts in the U.S. and in the Provincial Courts in Canada alleging that various vehicles sold, including model year 2011-2016 Duramax Diesel Chevrolet Silverado and GMC Sierra vehicles, violate federal, state and foreign emission standards. We are currently unable to estimate any reasonably possible material loss or range of loss that may result from these actions. GM has also faced a series of additional lawsuits in the U.S. based on these allegations, including a shareholder demand lawsuit that remains pending.

There are several putative class actions and one certified class action pending against GM in federal courts in the U.S. alleging that various 2011-2014 model year vehicles are defective because they excessively consume oil. While many of these proceedings have been dismissed or have been settled for insignificant amounts, several remain outstanding, and in October 2022, we received an adverse jury verdict in the certified class action proceeding involving three states. We do not believe that ~~appropriate accruals~~the verdict is supported by the evidence and plan to pursue post-trial motions and, if necessary, appeal. We are currently unable to estimate any reasonably possible material loss or range of loss that may result from the putative class action proceedings and have ~~been established for losses~~previously accrued an immaterial amount related to the certified class action proceeding.

There is one putative class action and one certified class action pending against GM in federal court in the U.S. alleging that various 2015-2022 model year vehicles are defective because they are equipped with faulty 8-speed transmissions. In March 2023, the judge overseeing the class action concerning 2015-2019 model year vehicles certified 26 state subclasses. The putative class action concerning 2020-2022 model year vehicles is pending in front of a different judge that has not yet addressed class certification. We are currently unable to estimate any reasonably possible material loss or range of loss that may result from these proceedings.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)

There is a class action pending against GM in federal court in the U.S., and a putative class action in provincial court in Canada, alleging that 2011-2016 model year Duramax Diesel Chevrolet Silverado and GMC Sierra vehicles are equipped with defective fuel pumps that are ~~probable and can be~~prone to failure. In March 2023, the federal court certified seven state subclasses. We are currently unable to estimate any reasonably ~~estimated. It is~~ possible material loss or range of loss that ~~the resolution of one or more of~~may result from these matters could exceed the amounts accrued in an amount that could be material to our results of operations. We also from time to time receive subpoenas and other inquiries or requests for information from agencies or other representatives of U.S. federal, state and foreign governments on a variety of issues. proceedings.

Beyond the class action litigations disclosed, we have several other class action litigations pending at any given time. Historically, relatively few classes have been certified in these types of cases. Therefore, we will generally only disclose specific class actions if a class is certified and we believe there is a reasonably possible material exposure to the Company.

We are currently in discussions with the Environmental Protection Agency regarding potential adjustments to our balance of greenhouse gas credits. Depending on the outcome of those discussions, it is reasonably possible that the costs associated with these matters could be material, but we are unable to provide an estimate of the cost at this time.

Indirect tax-related matters are being litigated globally pertaining to value added taxes, customs, duties, sales, property taxes and other non-income tax-related tax exposures. The various non-U.S. labor-related matters include claims from current and former employees related to alleged unpaid wage, benefit, severance and other compensation matters. Certain administrative proceedings are indirect tax-related and may require that we deposit funds in escrow or provide an alternative form of security. Some of the matters may involve compensatory, punitive or other treble damage claims, environmental remediation programs or sanctions that, if granted, could require us to pay damages or make other expenditures in amounts that could not be reasonably estimated at March 31, ~~2022. We believe that appropriate accruals have been established for losses that are probable and can be reasonably estimated.~~2023. For indirect tax-related matters, we estimate our reasonably possible loss in excess of amounts accrued to be up to approximately $950 million at March 31, ~~2022.~~2023.

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~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)~~

Takata Matters In November 2020, the National Highway Traffic Safety Administration (NHTSA) directed that we replace the Takata Corporation (Takata) airbag inflators in our GMT900 vehicles, which are full-size pickup trucks and sport utility vehicles (SUVs), and we decided not to contest NHTSA's decision. While we have already begun the process of executing the recall, given the number of vehicles in this population, the recall will take several years to be completed. Accordingly, in the year ended December 31, 2020, we recorded a warranty accrual of $1.1 billion for the expected costs of complying with the recall remedy, and we believe the currently accrued amount remains reasonable.

GM has recalled certain vehicles sold outside of the U.S. to replace Takata ~~Corporation (Takata)~~ inflators in those vehicles. There are significant differences in vehicle and inflator design between the relevant vehicles sold internationally and those sold in the U.S. We continue to gather and analyze evidence about these inflators and to share our findings with regulators. Any additional recalls relating to these inflators could be material to our results of operations and cash flows.

There are several putative class actions that have been filed against GM, including in the federal courts in the U.S., in the Provincial Courts in Canada, and in Mexico, arising out of allegations that airbag inflators manufactured by Takata are defective. In March 2023, a federal court overseeing a putative class action against GM issued a final judgment in favor of GM on all claims in eight states at issue in that proceeding. At this stage of these proceedings, we are unable to provide an estimate of the amounts or range of reasonably possible material loss.

Chevrolet Bolt Recall In July 2021, we initiated a voluntary recall for certain 2017-2019 model year Chevrolet Bolt EVs due to the risk that 2two manufacturing defects present in the same battery cell could cause a high voltage battery fire in certain of these vehicles. Accordingly, in the three months ended June 30, 2021, we recorded a warranty accrual of $812 million. After further investigation into the manufacturing processes at our battery supplier, LG Energy ~~Solutions~~Solution (LG), and disassembling battery packs, we determined that the risk of battery cell defects was not confined to the initial recall population. As a result, in August 2021, we expanded the recall to include all 2017-2022 model year Chevrolet Bolt EV and Electric Utility Vehicles (EUVs) and recorded an additional warranty accrual of $1.2 billion in the three months ended September 30, 2021. In October 2021, we reached an agreement with LG, under which LG will reimburse GM for costs and expenses associated with the recall. As a result, in the three months ended September 30, 2021, we recognized a receivable of $1.9 billion, which substantially offsets the warranty charges we recognized in connection with the recall. These charges reflect our current best estimate for the cost of the recall remedy. The actual costs of the recall and GM's associated recovery from LG could be materially higher or lower. For 2017-2019 model year vehicles, the recall remedy will be to replace the high voltage battery modules in these vehicles with new modules. For 2020-2022 model year vehicles, the recall remedy will be to replace any defective high voltage battery modules in these vehicles with new modules.

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In addition, putative class actions have been filed against GM in federal courts in the U.S. and in the Provincial Courts in Canada alleging that the batteries contained in the Bolt EVs and EUVs included in the recall population are defective. At this stage of these proceedings, we are unable to provide an estimate of the amounts or range of reasonably possible material loss.

Opel/Vauxhall Sale In 2017, we sold the Opel and Vauxhall businesses and certain other assets in Europe (the Opel/Vauxhall Business) to PSA Group, ~~(now Stellantis)~~now Stellantis N.V. (Stellantis), under a Master Agreement (the Agreement). We also sold the European financing subsidiaries and branches to Banque PSA Finance S.A. and BNP Paribas Personal Finance S.A. Although the sale reduced our new vehicle presence in Europe, we may still be impacted by actions taken by regulators related to vehicles sold before the sale. ~~Our~~General Motors Holdings LLC agreed, on behalf of our wholly owned subsidiary (the Seller) ~~agreed~~, to indemnify Stellantis for certain losses resulting from any inaccuracy of the representations and warranties or breaches of our covenants included in the Agreement and for certain other liabilities, including costs related to certain emissions claims, product liabilities and ~~product liabilities.~~ recalls. We are unable to estimate any reasonably possible material loss or range of loss that may result from these actions either directly or through an indemnification claim from Stellantis. Certain of these indemnification obligations are subject to time limitations, thresholds and/or caps as to the amount of required payments.

Currently, various consumer lawsuits have been filed against the Seller and Stellantis in Germany, the United Kingdom and the Netherlands alleging that Opel and Vauxhall vehicles sold by the Seller violated applicable emissions standards. In addition, we indemnified Stellantis for an immaterial amount for certain recalls that Stellantis has conducted or will conduct, including recalls in certain geographic locations that Stellantis intends to conduct related to Takata inflators in legacy Opel vehicles. We ~~are unable~~may in the future be required to estimate any reasonably possible loss or range of loss that may result from these actions either directly or through an indemnification claim from Stellantis. The Company entered into a guarantee for the benefit offurther indemnify Stellantis pursuant to which the Company agreed to guarantee the Seller's obligation to indemnify Stellantis. Certain of these indemnification obligations are subject to time limitations, thresholds and/or caps as to the amount of required payments.

~~Patent Royalty Matters~~ Several owners of patents are seeking past royalties from various automotive manufacturers, including GM, for the use of certain technologies. As of December 31, 2021, we had accrued approximately $300 million relating to these matters. We have resolved substantially all of these matters and, accordingly, have reduced our total accrual by $100 million as of March 31, 2022. We currently anticipate no material reasonably possible loss in excess of amounts accrued.its Takata recalls, but we believe such further indemnification to be remote at this time.

Product Liability We recorded liabilities of ~~$600~~$570 million and ~~$587~~$561 million in Accrued liabilities and Other liabilities at March 31, ~~2022~~2023 and December 31, ~~2021~~2022 for the expected cost of all known product liability claims, plus an estimate of the expected cost for product liability claims that have already been incurred and are expected to be filed in the future for which we are ~~self-~~

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~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)~~

~~insured.~~self-insured. It is reasonably possible that our accruals for product liability claims may increase in future periods in material amounts, although we cannot estimate a reasonable range of incremental loss based on currently available information. We believe that any judgment against us involving our products for actual damages will be adequately covered by our recorded accruals and, where applicable, excess liability insurance coverage.

Guarantees We enter into indemnification agreements for liability claims involving products manufactured primarily by certain joint ventures. These guarantees terminate in years ranging from ~~2022~~2023 to ~~2026~~2028, or upon the occurrence of specific events or are ongoing. We believe that the related potential costs incurred are adequately covered by our recorded accruals, which are insignificant. The maximum future undiscounted payments mainly based on royalties received associated with vehicles sold to date were ~~$3.3~~$3.2 billion and $3.1 billion for these guarantees at March 31, ~~2022~~2023 and December 31, ~~2021,~~2022, the majority of which relates to the indemnification agreements.

We provide payment guarantees on commercial loans outstanding with third parties such as dealers. In some instances, certain assets of the party or our payables to the party whose debt or performance we have guaranteed may offset, to some degree, the amount of any potential future payments. We are also exposed to residual value guarantees associated with certain sales to rental car companies.

We periodically enter into agreements that incorporate indemnification provisions in the normal course of business. It is not possible to e~~stimate~~estimate our maximum exposure under these indemnifications or guarantees due to the conditional nature of these obligations. Insignificant amounts have been recorded for such obligations as the majority of them are not probable or estimable at this time and the fair value of the guarantees at issuance was insignificant. Refer to the Opel/Vauxhall Sale section of this note for additional information on our indemnification obligations to Stellantis under the Agreement.

Supplier Finance Programs Third-party finance providers offer certain suppliers the option for payment in advance of their invoice due date through financing programs that we established. We retain our obligation to the participating suppliers, and we make payments directly to the third-party finance providers on the original invoice due date pursuant to the original invoice terms. There are no assets pledged as security or other forms of guarantees provided for committed payments. Our outstanding eligible balances under our supplier finance programs are $1.1 billion and $852 million at March 31, 2023 and December 31, 2022, which are recorded in Accounts payable (principally trade).

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)

Note ~~15.~~14. Income Taxes

In the three months ended March 31, ~~2022, GM entered into a Share Purchase Agreement with SoftBank Vision Fund (AIV M2) L.P. (SoftBank), pursuant~~2023, Income tax expense of $428 million was primarily due to which GM acquired SoftBank’s equity ownership stake in GM Cruise Holdings LLC (Cruise Holdings) and separately, made an additional $1.35 billion investment in Cruise in place of SoftBank. As a result, GM’s ownership in Cruise increased above the 80% threshold which allowed for inclusion of Cruisetax expense attributable to entities included in our ~~U.S. Federal consolidated income~~effective tax return and the release of a valuation allowance of $482 million against certain Cruise deferred tax assets. Refer to Note 16 to our condensed consolidated financial statements for additional information regarding the Share Purchase Agreement with SoftBank.

rate calculation. In the three months ended March 31, 2022, ~~income~~Income tax benefit of $28 million was primarily due to tax expense attributable to entities included in our effective tax rate calculation, offset by the release of a valuation allowance against certain Cruise deferred tax assets that ~~are~~were considered realizable due to the reconsolidation of Cruise for U.S. tax purposes.

Note 15. Restructuring and Other Initiatives

We have executed various restructuring and other initiatives and we may execute additional initiatives in the future, if necessary, to streamline manufacturing capacity and reduce other costs to improve the utilization of remaining facilities. To the extent these programs involve voluntary separations, a liability is generally recorded at the time offers to employees are accepted. To the extent these programs provide separation benefits in accordance with pre-existing agreements, a liability is recorded once the amount is probable and reasonably estimable. If employees are involuntarily terminated, a liability is generally recorded at the communication date. Related charges are recorded in Automotive and other cost of sales and Automotive and other selling, general and administrative expense.

The ~~effective tax rate is lower than~~following table summarizes the ~~applicable statutory tax rate primarily due to tax benefit~~reserves and charges related to ~~the release of the Cruise valuation allowance.~~restructuring and other initiatives, including postemployment benefit reserves and charges:


	Three Months Ended
	March 31, 2023		March 31, 2022
Balance at beginning of period	$	520	$	285
Additions, interest accretion and other	980		(2)
Payments	(51)		(104)
Revisions to estimates and effect of foreign currency	—		(9)
Balance at end of period	$	1,450	$	171

In the three months ended March 31, ~~2021, Income tax expense~~2023, restructuring and other initiatives included strategic activities in GMNA related to Buick dealerships. We recorded charges of ~~$1.2 billion was primarily due to tax expense attributable to entities~~$99 million, which are included in ~~our effective tax rate calculation~~the table above, and incurred $39 million in net cash outflows resulting from these dealer restructurings in the ~~establishment~~three months ended March 31, 2023, in addition to the charges of ~~a valuation allowance against Cruise deferred tax assets that were considered no longer realizable.~~$511 million and net cash outflows of $120 million in the year ended December 31, 2022. The remaining $451 million is expected to be paid by the end of 2023.

AtAdditionally, on March 9, 2023, we announced a voluntary separation program (VSP) to accelerate attrition related to the cost reduction program announced in January 2023. We recorded charges in GMNA of $875 million in the three months ended March 31, ~~2022,~~ ~~we had $20.4 billion~~2023, primarily related to employee separation charges, which are reflected in the table above. We expect cash outflows related to these activities of ~~net deferred tax assets consisting~~approximately $875 million to be substantially complete by the end of net operating losses and income tax credits, capitalized research expenditures and other timing differences that are available to offset future income tax liabilities, partially offset by valuation allowances.2023.

Note 16. Stockholders' Equity and Noncontrolling Interests

We have 2.0 billion shares of preferred stock and 5.0 billion shares of common stock authorized for issuance. We had no shares of preferred stock issued and outstanding at March 31, ~~2022~~2023 and December 31, ~~2021.~~2022. We had ~~1.5~~1.4 billion shares of common stock issued and outstanding at March 31, ~~2022~~2023 and December 31, ~~2021.~~2022.

Common Stock Holders of our common stock are entitled to dividends at the sole discretion of our Board of Directors. Our dividends declared per common share were $0.09 and our total dividends paid on common stock were $126 million for the three months ended March 31, 2023. Dividends were not declared or paid on our common stock for the three months ended March 31, 2022.

In August 2022, our Board of Directors increased the capacity under our previously announced common stock repurchase program to $5.0 billion from the $3.3 billion that remained under the program as of June 30, 2022. In the three months ended March 31, 2023, we purchased 9 million shares of our outstanding common stock for $369 million as part of the program, inclusive of an insignificant amount of excise tax related to the Inflation Reduction Act of 2022. We did not purchase shares of our outstanding common stock in the three months ended March 31, 2022.

1920

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)

Cruise Preferred Shares In 2021, Cruise Holdings issued $2.7 billion of Class G Preferred Shares (Cruise Class G Preferred Shares) to Microsoft Corporation (Microsoft), Walmart Inc. (Walmart) and other investors, including $1.0 billion to General Motors Holdings LLC. All proceeds related to the Cruise Class G Preferred Shares are designated exclusively for working capital and general corporate purposes of Cruise Holdings. In addition, we, Cruise Holdings and Microsoft entered into a long-term strategic relationship to accelerate the commercialization of self-driving vehicles with Microsoft being the preferred public cloud provider.

The Cruise Class G Preferred Shares participate pari passu with holders of Cruise Holdings common stock and Class F Preferred Shares (Cruise Class F Preferred Shares) in any dividends declared. The Cruise Class G and Cruise Class F Preferred Shares convert into the class of shares to be issued to the public in an initial public offering (IPO) at specified exchange ratios. No covenants or other events of default exist that can trigger redemption of the Cruise Class G and Cruise Class F Preferred Shares. The Cruise Class G and Cruise Class F Preferred Shares are entitled to receive the greater of their carrying value or a pro-rata share of any proceeds or distributions upon the occurrence of a merger, sale, liquidation or dissolution of Cruise Holdings, and are classified as noncontrolling interests in our condensed consolidated financial statements.

In March 2022, under the Share Purchase Agreement, we acquired ~~SoftBank’s~~SoftBank Vision Fund (AIV M2) L.P.'s (together with its affiliates, SoftBank) Cruise Class A-1, Class F and Class G Preferred Shares for $2.1 billion and made an additional $1.35 billion investment in Cruise in place of SoftBank. SoftBank no longer has an ownership interest in or has any rights with respect to Cruise.

~~Net~~Cruise Common Shares During the three months ended March 31, 2023, GM Cruise Holdings LLC (Cruise Holdings) issued $95 million of Class B Common Shares to net settle vested awards under Cruise's 2018 Employee Incentive Plan and issued $56 million of Class B Common Shares to fund the payment of statutory tax withholding obligations resulting from the settlement or exercise of vested awards. Also, GM conducted a quarterly tender offer, and paid $75 million in cash to purchase tendered Cruise Class B Common Shares during the three months ended March 31, 2023. The Class B Common Shares are classified as noncontrolling interests in our condensed consolidated financial statements except for certain shares that are liability classified that have a recorded value of approximately $60 million at both March 31, 2023 and December 31, 2022. Refer to Note 18 for additional information on Cruise stock incentive awards.

During the three months ended March 31, 2023 and 2022, the effect on the equity attributable to us for changes in our ownership interest in Cruise was insignificant. For the three months ended March 31, 2023 and 2022, net income attributable to shareholders and transfers to the noncontrolling interest in Cruise and other subsidiaries was $2.4 billion and $2.0 billion, which ~~includes the~~in 2022 included a $909 million decrease in retained earnings ~~for~~due to the redemption of Cruise preferred shares.

The following table summarizes the significant components of Accumulated other comprehensive loss:


		Three Months Ended						Three Months Ended
			March 31, 2022		March 31, 2021				March 31, 2023		March 31, 2022
Foreign Currency Translation Adjustments	Foreign Currency Translation Adjustments						Foreign Currency Translation Adjustments
Balance at beginning of period	Balance at beginning of period		$	(2,653)	$	(2,735)	Balance at beginning of period		$	(2,776)	$	(2,653)
Other comprehensive income (loss) and noncontrolling interests, net of reclassification adjustment and tax(a)(b)	Other comprehensive income (loss) and noncontrolling interests, net of reclassification adjustment and tax(a)(b)		397		(24)		Other comprehensive income (loss) and noncontrolling interests, net of reclassification adjustment and tax(a)(b)		164		397
Balance at end of period	Balance at end of period		$	(2,256)	$	(2,759)	Balance at end of period		$	(2,611)	$	(2,256)

Defined Benefit Plans	Defined Benefit Plans						Defined Benefit Plans
Balance at beginning of period	Balance at beginning of period		$	(6,528)	$	(10,654)	Balance at beginning of period		$	(4,851)	$	(6,528)
Other comprehensive income (loss) before reclassification adjustment, net of tax(b)	Other comprehensive income (loss) before reclassification adjustment, net of tax(b)		52		86		Other comprehensive income (loss) before reclassification adjustment, net of tax(b)		(39)		52
Reclassification adjustment, net of tax(b)	Reclassification adjustment, net of tax(b)		51		74		Reclassification adjustment, net of tax(b)		4		51
Other comprehensive income (loss), net of tax(b)	Other comprehensive income (loss), net of tax(b)		103		160		Other comprehensive income (loss), net of tax(b)		(35)		103
Balance at end of period(c)	Balance at end of period(c)		$	(6,425)	$	(10,494)	Balance at end of period(c)		$	(4,886)	$	(6,425)

__________

(a)The noncontrolling interests and reclassification adjustment were insignificant in the three months ended March 31, ~~2022~~2023 and ~~2021.~~2022.

(b)The income tax effect was insignificant in the three months ended March 31, ~~2022~~2023 and ~~2021.~~2022.

(c)Primarily consists of unamortized actuarial loss on our defined benefit plans. Refer to Note 2. Significant Accounting Policies of our ~~2021~~2022 Form 10-K for additional information.

2021

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)

Note 17. Earnings Per Share


		Three Months Ended			Three Months Ended
			March 31, 2022			March 31, 2021			March 31, 2023		March 31, 2022
Basic earnings per share	Basic earnings per share							Basic earnings per share
Net income (loss) attributable to stockholders	Net income (loss) attributable to stockholders		$	2,939		$	3,022	Net income (loss) attributable to stockholders	$	2,395	$	2,939
Less: cumulative dividends on subsidiary preferred stock(a)	Less: cumulative dividends on subsidiary preferred stock(a)		(952)			(46)		Less: cumulative dividends on subsidiary preferred stock(a)	(27)		(952)

Net income (loss) attributable to common stockholders	Net income (loss) attributable to common stockholders		$	1,987		$	2,976	Net income (loss) attributable to common stockholders	$	2,369	$	1,987

Weighted-average common shares outstanding	Weighted-average common shares outstanding		1,458			1,447		Weighted-average common shares outstanding	1,396		1,458

Basic earnings per common share	Basic earnings per common share		$	1.36		$	2.06	Basic earnings per common share	$	1.70	$	1.36
Diluted earnings per share	Diluted earnings per share							Diluted earnings per share

Net income (loss) attributable to common stockholders – diluted	Net income (loss) attributable to common stockholders – diluted		$	1,987		$	2,976	Net income (loss) attributable to common stockholders – diluted	$	2,369	$	1,987

Weighted-average common shares outstanding – basic	Weighted-average common shares outstanding – basic		1,458			1,447		Weighted-average common shares outstanding – basic	1,396		1,458
Dilutive effect of awards under stock incentive plans	Dilutive effect of awards under stock incentive plans		12			17		Dilutive effect of awards under stock incentive plans	6		12
Weighted-average common shares outstanding – diluted	Weighted-average common shares outstanding – diluted		1,470			1,464		Weighted-average common shares outstanding – diluted	1,402		1,470

Diluted earnings per common share	Diluted earnings per common share		$	1.35		$	2.03	Diluted earnings per common share	$	1.69	$	1.35
Potentially dilutive securities(b)	Potentially dilutive securities(b)		6			2		Potentially dilutive securities(b)	22		6

__________

(a)Includes a $909 million deemed dividend related to the redemption of Cruise preferred shares from SoftBank in the three months ended March 31, 2022.

(b)Potentially dilutive securities attributable to outstanding stock options, Restricted Stock Units (RSUs) and Performance Stock Units (PSUs) at March 31, ~~2022~~2023 and ~~2021~~outstanding stock options and RSUs at March 31, 2022 were excluded from the computation of diluted earnings per share (EPS) because the securities would have had an antidilutive effect.

Note 18. Stock Incentive Plans

GMCruise Stock Incentive Awards We grant to certain employees RSUs, RSAs, PSUs and stock options (collectively, stock incentive awards). Total compensation expense related to the above awards was $77 million and $64 million in the three months ended March 31, 2022 and 2021. At March 31, 2022, the total unrecognized compensation expense for nonvested equity awards granted was $547 million. This expense is expected to be recorded over a weighted-average period of 1.9 years.

~~Cruise Stock Incentive Awards~~ ~~Cruise granted RSUs and stock options that will settle in common shares of Cruise Holdings in the three months ended March 31, 2022 and 2021.~~ In March 2022, Cruise modified its RSUs that settle in Cruise common stock to remove the liquidity vesting condition such that all granted RSU awards vest solely upon ~~satisfaction~~satisfactions of a service condition. The service condition for the majority of these awards is satisfied over four years. Upon modification, 31 million RSUs whose service condition was previously met became immediately vested, thereby resulting in the immediate recognition of compensation expense. In addition, at Cruise's election, GM intends to conduct quarterly tender offers whereby, holders of Cruise Holdings common stock issued to settle vested awards can tender their shares generally at the fair value of Cruise’s common stock, which triggered the immediate recognition of incremental compensation expense associated with the stock options. The planned tenders results in certain awards to be classified as liabilities and other awards to be presented in temporary equity. These awards were granted under the 2018 Employee Incentive Plan approved by Cruise Holdings' Board of Directors in August 2018. Shares awarded under the plan are subject to forfeiture if the participant leaves the company for reasons other than those permitted under the plan. Stock options vest ratably over ~~four~~ ~~to 10 years, as defined in the terms of each award. Stock options expire 10 years from the grant date.~~

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~~GENERAL MOTORS COMPANY AND SUBSIDIARIES~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)~~

Cruise Restricted Stock Units Cruise Stock Options
Shares (in millions) Weighted-Average Grant Date Fair Value Weighted-Average Remaining Contractual Term in Years Shares (in millions) Weighted-Average Grant Date Fair Value Weighted-Average Remaining Contractual Term in Years
Units outstanding at January 1, 2022 66.2 $ 18.82 8.1 23.8 $ 7.07 2.0
Granted 28.7 $ 27.49 2.9 $ 15.77
Settled or exercised — $ — — $ —
Forfeited or expired (2.9) $ 23.67 — $ —
Units outstanding at March 31, 2022(a) 92.0 $ 29.00 1.1 26.7 $ 18.88 2.0

~~__________~~

(a) Weighted average fair values include the impact of the remeasurement triggered by the modification. Post modification, certain awards are liability-awards resulting in ongoing remeasurement based on changes to the awards fair value.

Our weighted-average assumptions used to value Cruise stock options are a dividend yield of 0.00% and 0.00%, expected volatility of 57.3% and 55.0%, a risk-free interest rate of 2.47% and 0.78% and an expected option life of 6.57 and 6.25 years for options issued during the three months ended March 31, 2022 and 2021. The expected volatility is based on the historical volatility of comparable public company data as Cruise Holdings is not publicly traded and therefore, does not have any trading history of its common stock.

Total compensation expense related to Cruise Holdings' share-based awards was $103 million in the three months ended March 31, 2023 and $1.2 billion ~~for~~in the three months ended March 31, 2022, which in 2022 primarily represents the impact of the modification to outstanding ~~awards,~~awards. GM conducted a quarterly tender offer and ~~an insignificant amount for~~paid $75 million in cash to purchase tendered Cruise Class B Common Shares during the three months ended March 31, ~~2021.~~2023. No cash was paid to settle share-based awards ~~for~~in the three months ended March 31, 2022. Total unrecognized compensation expense for Cruise Holdings’ nonvested equity awards granted was $1.9 billion at March 31, 2022. Total units outstanding were 119 million at March 31, 2022, including 31 million of vested RSUs that will be settled during the three months ended June 30, 2022. The expense related to RSUs and stock options is expected to be recorded over a weighted-average period of two years.

Note 19. Segment Reporting

We analyze the results of our business through the following reportable segments: GMNA, GMI, Cruise and GM Financial. The chief operating decision-maker evaluates the operating results and performance of our automotive segments and Cruise through earnings before interest and income taxes (EBIT)-adjusted, which is presented net of noncontrolling interests. The chief operating decision-maker evaluates GM Financial through earnings before income taxes (EBT)-adjusted because interest income and interest expense are part of operating results when assessing and measuring the operational and financial performance of the segment. Each segment has a manager responsible for executing our strategic initiatives. While not all vehicles within a segment are individually profitable on a fully allocated cost basis, those vehicles attract customers to dealer showrooms and help maintain sales volumes for other, more profitable vehicles and contribute towards meeting required fuel efficiency standards. As a result of these and other factors, we do not manage our business on an individual brand or vehicle basis.

Substantially all of the trucks, crossovers, cars and automobile parts produced are marketed through retail dealers in North America and through distributors and dealers outside of North America, the substantial majority of which are independently owned. In addition to the products sold to dealers for consumer retail sales, trucks, crossovers and cars are also sold to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies and governments. Fleet sales are completed through the dealer network and in some cases directly with fleet customers. Retail and fleet customers can obtain

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)

a wide range of after-sale vehicle services and products through the dealer network, such as maintenance, light repairs, collision repairs, vehicle accessories and extended service warranties.

GMNA meets the demands of customers in North America and GMI primarily meets the demands of customers outside North America with vehicles developed, manufactured and/or marketed under the Buick, Cadillac, Chevrolet and GMC brands. We also have equity ownership stakes in entities that meet the demands of customers in other countries, primarily China, with vehicles developed, manufactured and/or marketed under the Baojun, Buick, Cadillac, Chevrolet and Wuling brands. Cruise is our global segment responsible for the development and commercialization of AV technology, and includes AV-related engineering and other costs. We provide automotive financing services through our GM Financial segment.

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~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)~~

Our automotive interest income and interest expense, legacy costs from the Opel/Vauxhall Business (primarily pension costs), corporate expenditures and certain nonsegment specific revenues and expenses are recorded centrally in Corporate. Corporate assets primarily consist of cash and cash equivalents, marketable debt securities ~~Stellantis warrants~~ and intersegment balances. All intersegment balances and transactions have been eliminated in consolidation.

The following tables summarize key financial information by segment:



	At and For the Three Months Ended March 31, 2023
	GMNA		GMI		Corporate		Eliminations		Total Automotive		Cruise		GM Financial		Eliminations/Reclassifications		Total
Net sales and revenue	$	32,889	$	3,727	$	31			$	36,646	$	25	$	3,343	$	(29)	$	39,985
Earnings (loss) before interest and taxes-adjusted	$	3,576	$	347	$	(327)			$	3,596	$	(561)	$	771	$	(3)	$	3,803
Adjustments(a)	$	(974)	$	—	$	—			$	(974)	$	—	$	—	$	—	(974)
Automotive interest income																	229
Automotive interest expense																	(234)
Net income (loss) attributable to noncontrolling interests																	(49)
Income (loss) before income taxes																	2,775
Income tax benefit (expense)																	(428)
Net income (loss)																	2,346

Net loss (income) attributable to noncontrolling interests																	49
Net income (loss) attributable to stockholders																	$	2,395
Equity in net assets of nonconsolidated affiliates	$	2,000	$	6,817	$	—	$	—	$	8,818	$	—	$	1,725	$	—	$	10,542
Goodwill and intangibles	$	2,154	$	732	$	4	$	—	$	2,890	$	728	$	1,350	$	—	$	4,968
Total assets	$	144,903	$	24,992	$	40,880	$	(69,676)	$	141,098	$	5,217	$	122,789	$	(2,099)	$	267,004

Depreciation and amortization	$	1,428	$	122	$	5	$	—	$	1,555	$	4	$	1,251	$	—	$	2,810
Impairment charges	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Equity income (loss)(b)	$	(46)	$	81	$	—	$	—	$	34	$	—	$	41	$	—	$	75

__________

(a) Consists of charges for strategic activities related to Buick dealerships and charges related to the VSP in GMNA.

(b) Equity earnings related to Ultium Cells Holdings LLC are presented in Automotive and other cost of sales as this entity is integral to the operations of our business by providing battery cells for our EVs. In the three months ended March 31, 2023, equity earnings related to Ultium Cells Holdings LLC were insignificant.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)



	At and For the Three Months Ended March 31, 2022
	GMNA		GMI		Corporate		Eliminations		Total Automotive		Cruise		GM Financial		Eliminations/Reclassifications		Total
Net sales and revenue	$	29,456	$	3,313	$	53			$	32,823	$	26	$	3,156	$	(26)	$	35,979
Earnings (loss) before interest and taxes-adjusted	$	3,141	$	328	$	(387)			$	3,082	$	(325)	$	1,284	$	4	$	4,044
Adjustments(a)	$	100	$	—	$	—			$	100	$	(1,057)	$	—	$	—	(957)
Automotive interest income																	50
Automotive interest expense																	(226)
Net income (loss) attributable to noncontrolling interests																	(131)
Income (loss) before income taxes																	2,779
Income tax benefit (expense)																	28
Net income (loss)																	2,807

Net loss (income) attributable to noncontrolling interests																	131
Net income (loss) attributable to stockholders																	$	2,939

Equity in net assets of nonconsolidated affiliates	$	1,217	$	7,406	$	—	$	—	$	8,623	$	—	$	1,779	$	—	$	10,402
Goodwill and intangibles	$	2,213	$	765	$	—	$	—	$	2,978	$	733	$	1,346	$	—	$	5,058
Total assets	$	126,454	$	24,612	$	35,696	$	(55,702)	$	131,060	$	6,310	$	115,312	$	(1,190)	$	251,492
Depreciation and amortization	$	1,504	$	134	$	5	$	—	$	1,643	$	12	$	1,236	$	—	$	2,891
Impairment charges	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Equity income (loss)	$	6	$	232	$	—	$	—	$	238	$	—	$	54	$	—	$	292

__________

(a) Consists of the resolution of substantially all ~~potential~~ royalty matters accrued ~~in the prior period,~~ with respect to past-year vehicle sales in GMNA; and charges related to the one-time modification of Cruise stock incentive awards.

At and For the Three Months Ended March 31, 2021
GMNA GMI Corporate Eliminations Total Automotive Cruise GM Financial Eliminations/Reclassifications Total
Net sales and revenue $ 25,957 $ 3,086 $ 19 $ 29,062 $ 30 $ 3,407 $ (25) $ 32,474
Earnings (loss) before interest and taxes-adjusted $ 3,134 $ 308 $ 30 $ 3,472 $ (229) $ 1,182 $ (8) $ 4,417
Adjustments $ — $ — $ — $ — $ — $ — $ — —
Automotive interest income 32
Automotive interest expense (250)
Net income (loss) attributable to noncontrolling interests (8)
Income (loss) before income taxes 4,191
Income tax benefit (expense) (1,177)
Net income (loss) 3,014
Net loss (income) attributable to noncontrolling interests 8
Net income (loss) attributable to stockholders $ 3,022
Equity in net assets of nonconsolidated affiliates $ 355 $ 6,994 $ — $ — $ 7,349 $ — $ 1,630 $ — $ 8,979
Goodwill and intangibles $ 2,320 $ 796 $ — $ — $ 3,116 $ 730 $ 1,339 $ — $ 5,185
Total assets $ 113,926 $ 22,798 $ 36,271 $ (53,147) $ 119,848 $ 5,324 $ 114,597 $ (1,358) $ 238,411
Depreciation and amortization $ 1,198 $ 132 $ 6 $ — $ 1,336 $ 11 $ 1,668 $ — $ 3,015
Impairment charges $ — $ — $ — $ — $ — $ — $ — $ — $ —
Equity income (loss) $ 4 $ 307 $ — $ — $ 311 $ — $ 54 $ — $ 365

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Basis of Presentation This Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) should be read in conjunction with the accompanying condensed consolidated financial statements and the notes thereto, and the audited consolidated financial statements and notes thereto included in our ~~2021~~2022 Form 10-K.

Forward-looking statements in this MD&A are not guarantees of future performance and may involve risks and uncertainties that could cause actual results to differ materially from those projected. Refer to the "Forward-Looking Statements" section of this MD&A and Part 1, Item 1A. Risk Factors of our ~~2021~~2022 Form 10-K for a discussion of these risks and uncertainties. Except for per share amounts or as otherwise specified, dollar amounts presented within tables are stated in millions. Certain columns and rows may not add due to rounding.

Non-GAAP Measures Our non-GAAP measures include: EBIT-adjusted, presented net of noncontrolling interests; EBT-adjusted for our GM Financial segment; EPS-diluted-adjusted; effective tax rate-adjusted (ETR-adjusted); return on invested capital-adjusted (ROIC-adjusted) and adjusted automotive free cash flow. Our calculation of these non-GAAP measures may not be comparable to similarly titled measures of other companies due to potential differences between companies in the method of calculation. As a result, the use of these non-GAAP measures has limitations and should not be considered superior to, in isolation from, or as a substitute for, related U.S. GAAP measures.

These non-GAAP measures allow management and investors to view operating trends, perform analytical comparisons and benchmark performance between periods and among geographic regions to understand operating performance without regard to items we do not consider a component of our core operating performance. Furthermore, these non-GAAP measures allow investors the opportunity to measure and monitor our performance against our externally communicated targets and evaluate the investment decisions being made by management to improve ROIC-adjusted. Management uses these measures in its financial, investment and operational decision-making processes, for internal reporting and as part of its forecasting and budgeting processes. Further, our Board of Directors uses certain of these, and other measures, as key metrics to determine management performance under our performance-based compensation plans. For these reasons, we believe these non-GAAP measures are useful for our investors.

EBIT-adjusted EBIT-adjusted is presented net of noncontrolling interests and is used by management and can be used by investors to review our consolidated operating results because it excludes automotive interest income, automotive interest expense and income taxes as well as certain additional adjustments that are not considered part of our core operations. Examples of adjustments to EBIT include, but are not limited to, impairment charges on long-lived assets and other exit costs resulting from strategic shifts in our operations or discrete market and business ~~conditions;~~conditions, and certain costs arising from legal ~~matters; and certain currency devaluations associated with hyperinflationary economies.~~matters. For EBIT-adjusted and our other non-GAAP measures, once we have made an adjustment in the current period for an item, we will also adjust the related non-GAAP measure in any future periods in which there is an impact from the item. Our corresponding measure for our GM Financial segment is EBT-adjusted because interest income and interest expense are part of operating results when assessing and measuring the operational and financial performance of the segment.

EPS-diluted-adjusted EPS-diluted-adjusted is used by management and can be used by investors to review our consolidated diluted EPS results on a consistent basis. EPS-diluted-adjusted is calculated as net income attributable to common stockholders-diluted less adjustments noted above for EBIT-adjusted and certain income tax adjustments divided by weighted-average common shares outstanding-diluted. Examples of income tax adjustments include the establishment or reversal of significant deferred tax asset valuation allowances.

ETR-adjusted ETR-adjusted is used by management and can be used by investors to review the consolidated effective tax rate for our core operations on a consistent basis. ETR-adjusted is calculated as Income tax expense less the income tax related to the adjustments noted above for EBIT-adjusted and the income tax adjustments noted above for EPS-diluted-adjusted divided by Income before income taxes less adjustments. When we provide an expected adjusted effective tax rate, we do not provide an expected effective tax rate because the U.S. GAAP measure may include significant adjustments that are difficult to predict.

ROIC-adjusted ROIC-adjusted is used by management and can be used by investors to review our investment and capital allocation decisions. We define ROIC-adjusted as EBIT-adjusted for the trailing four quarters divided by ROIC-adjusted average net assets, which is considered to be the average equity balances adjusted for average automotive debt and interest liabilities, exclusive of finance leases; average automotive net pension and OPEB liabilities; and average automotive net income tax assets during the same period.

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Adjusted automotive free cash flow Adjusted automotive free cash flow is used by management and can be used by investors to review the liquidity of our automotive operations and to measure and monitor our performance against our capital allocation program and evaluate our automotive liquidity against the substantial cash requirements of our automotive operations. We measure adjusted automotive free cash flow as automotive operating cash flow from operations less capital expenditures adjusted for management actions. Management actions can include voluntary events such as discretionary contributions to employee benefit plans or nonrecurring specific events such as a closure of a facility that are considered special for EBIT-adjusted purposes. Refer to the "Liquidity and Capital Resources" section of this MD&A for additional information.

The following table reconciles Net income ~~(loss)~~ attributable to stockholders under U.S. GAAP to ~~EBIT (loss)-adjusted:~~EBIT-adjusted:

Three Months Ended
March 31, December 31, September 30, June 30,
2022 2021 2021 2020 2021 2020 2021 2020
Net income (loss) attributable to stockholders $ 2,939 $ 3,022 $ 1,741 $ 2,846 $ 2,420 $ 4,045 $ 2,836 $ (758)
Income tax expense (benefit) (28) 1,177 471 642 152 887 971 (112)
Automotive interest expense 226 250 227 275 230 327 243 303
Automotive interest income (50) (32) (44) (46) (38) (51) (32) (61)
Adjustments
Cruise compensation modification(a) 1,057 — — — — — — —
Patent royalty matters(b) (100) — 250 — — — — —
GM Brazil indirect tax matters(c) — — 194 — — — — —
Cadillac dealer strategy(d) — — — 99 158 — 17 —
GMI restructuring(e) — — — 26 — 76 — 92
GM Korea wage litigation(f) — — — — — — 82 —
Ignition switch recall and related legal matters(g) — — — (130) — — — —
Total adjustments 957 — 444 (5) 158 76 99 92
EBIT (loss)-adjusted $ 4,044 $ 4,417 $ 2,839 $ 3,712 $ 2,922 $ 5,284 $ 4,117 $ (536)


	Three Months Ended
	March 31,				December 31,				September 30,				June 30,
	2023		2022		2022		2021		2022		2021		2022		2021
Net income attributable to stockholders	$	2,395	$	2,939	$	1,999	$	1,741	$	3,305	$	2,420	$	1,692	$	2,836
Income tax expense (benefit)	428		(28)		580		471		845		152		490		971
Automotive interest expense	234		226		267		227		259		230		234		243
Automotive interest income	(229)		(50)		(215)		(44)		(122)		(38)		(73)		(32)
Adjustments
Voluntary separation program(a)	875		—		—		—		—		—		—		—
Cruise compensation modifications(b)	—		1,057		—		—		—		—		—		—

Russia exit(c)	—		—		657		—		—		—		—		—
Buick dealer strategy(d)	99		—		511		—		—		—		—		—
Patent royalty matters(e)	—		(100)		—		250		—		—		—		—
GM Brazil indirect tax matters(f)	—		—		—		194		—		—		—		—
Cadillac dealer strategy(g)	—		—		—		—		—		158		—		17

GM Korea wage litigation(h)	—		—		—		—		—		—		—		82








Total adjustments	974		957		1,168		444		—		158		—		99
EBIT-adjusted	$	3,803	$	4,044	$	3,799	$	2,839	$	4,287	$	2,922	$	2,343	$	4,117

_________

(a)This adjustment was excluded because it relates to the acceleration of attrition as part of the cost reduction program announced in January 2023, primarily in the United States.

(b)This adjustment was excluded because it relates to the one-time modification of Cruise stock incentive awards.

~~(b)~~(c)This adjustment was excluded because it relates to the shutdown of our Russia business including the write off of our net investment and release of accumulated translation losses into earnings.

(d)These adjustments were excluded because they relate to ~~potential~~strategic activities to transition certain Buick dealers out of our dealer network as part of Buick’s EV strategy.

(e)These adjustments were excluded because they relate to certain royalties accrued with respect to past-year vehicle sales in the three months ended December 31, 2021, and the resolution of substantially all of these matters in the three months ended March 31, 2022.

~~(c)~~(f)This adjustment was excluded because it relates to a ~~potential~~ settlement with third parties in the three months ended December 31, 2021 relating to retrospective recoveries of indirect taxes in Brazil realized in prior periods.

~~(d)~~(g)These adjustments were excluded because they relate to strategic activities to transition certain Cadillac dealers from the network as part of Cadillac's ~~electric vehicle (EV)~~EV strategy.

~~(e)~~These adjustments were excluded because of a strategic decision to rationalize our core operations by exiting or significantly reducing our presence in various international markets to focus resources on opportunities expected to deliver higher returns. These adjustments primarily consist of employee separation charges in the three months ended December 31, 2020, supplier claims in the three months ended September 30, 2020 and inventory provisions in the three months ended June 30, 2020.

~~(f)~~(h)This adjustment was excluded because of the unique events associated with ~~recent~~Korea Supreme Court ~~of Korea~~ decisions related to our salaried workers.

~~(g)This adjustment was excluded because of the unique events associated with the ignition switch recall.~~

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The following table reconciles diluted earnings ~~(loss)~~ per common share under U.S. GAAP to EPS-diluted-adjusted:


		Three Months Ended						Three Months Ended
			March 31, 2022	March 31, 2021										March 31, 2023	March 31, 2022
				Amount		Per Share			Amount		Per Share					Amount		Per Share		Amount		Per Share
Diluted earnings (loss) per common share				$	1,987��	$	1.35		$	2,976	$	2.03
Diluted earnings per common share													Diluted earnings per common share			$	2,369	$	1.69	$	1,987	$	1.35
Adjustments(a)	Adjustments(a)			957		0.65			—		—		Adjustments(a)			974		0.69		957		0.65
Tax effect on adjustments(b)	Tax effect on adjustments(b)			(296)		(0.20)			—		—		Tax effect on adjustments(b)			(239)		(0.17)		(296)		(0.20)
Tax adjustments(c)	Tax adjustments(c)			(482)		(0.33)			316		0.22		Tax adjustments(c)			—		—		(482)		(0.33)
Deemed dividend adjustment(d)	Deemed dividend adjustment(d)			909		0.62			—		—		Deemed dividend adjustment(d)			—		—		909		0.62
EPS-diluted-adjusted	EPS-diluted-adjusted			$	3,075	$	2.09		$	3,292	$	2.25	EPS-diluted-adjusted			$	3,104	$	2.21	$	3,075	$	2.09

__________

(b)The tax effect of each adjustment is determined based on the tax laws and valuation allowance status of the jurisdiction to which the adjustment relates.

(c)~~These adjustments consist~~This adjustment consists of tax benefit related to the release of a valuation allowance against deferred tax assets ~~that are~~ considered realizable as a result of Cruise tax reconsolidation in the three months ended March 31, 2022, and tax expense related to the establishment of a valuation allowance against deferred tax assets that were considered no longer realizable for Cruise in the three months ended March 31, 2021. These adjustments were2022. This adjustment was excluded because significant impacts of valuation allowances are not considered part of our core operations.

(d)This adjustment consists of a deemed dividend related to the redemption of Cruise preferred shares from SoftBank in the three months ended March 31, 2022.

The following table reconciles our effective tax rate under U.S. GAAP to ETR-adjusted:


		Three Months Ended								Three Months Ended
			March 31, 2022	March 31, 2021											March 31, 2023						March 31, 2022
					Income before income taxes		Income tax expense (benefit)				Effective tax rate		Income before income taxes			Income tax expense (benefit)		Effective tax rate						Income before income taxes		Income tax expense (benefit)		Effective tax rate		Income before income taxes		Income tax expense (benefit)		Effective tax rate
Effective tax rate	Effective tax rate				$	2,779	$	(28)			(1.0)	%	$	4,191		$	1,177	28.1	%	Effective tax rate				$	2,775	$	428	15.4	%	$	2,779	$	(28)	(1.0)	%
Adjustments(a)	Adjustments(a)				1,053		296						—			—				Adjustments(a)				974		239				1,053		296
Tax adjustment(b)							482									(316)
Tax adjustments(b)									Tax adjustments(b)													—	482
ETR-adjusted	ETR-adjusted				$	3,832	$	750			19.6	%	$	4,191		$	861	20.5	%	ETR-adjusted				$	3,749	$	667	17.8	%	$	3,832	$	750	19.6	%

__________

(a)Refer to the reconciliation of Net income ~~(loss)~~ attributable to stockholders under U.S. GAAP to ~~EBIT (loss)-adjusted~~EBIT-adjusted within this section of MD&A for adjustment details. These adjustments include Net income attributable to noncontrolling interests where applicable. The tax effect of each adjustment is determined based on the tax laws and valuation allowance status of the jurisdiction to which the adjustment relates.

(b)Refer to the reconciliation of diluted earnings per common share under U.S. GAAP to EPS-diluted-adjusted within this section of MD&A for adjustment details.

We define return on equity (ROE) as Net income ~~(loss)~~ attributable to stockholders for the trailing four quarters divided by average equity for the same period. Management uses average equity to provide comparable amounts in the calculation of ROE. The following table summarizes the calculation of ROE (dollars in billions):


		Four Quarters Ended					Four Quarters Ended
		March 31, 2022			March 31, 2021				March 31, 2023			March 31, 2022
Net income (loss) attributable to stockholders		$	9.9		$	9.2
Net income attributable to stockholders								Net income attributable to stockholders	$	9.4		$	9.9
Average equity(a)	Average equity(a)	$	59.6		$	45.7		Average equity(a)	$	68.6		$	59.6
ROE	ROE	16.7		%	20.0		%	ROE	13.7		%	16.7		%

__________

(a)Includes equity of noncontrolling interests where the corresponding earnings (loss) are included in Net income ~~(loss)~~ attributable to stockholders.

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The following table summarizes the calculation of ROIC-adjusted (dollars in billions):


		Four Quarters Ended							Four Quarters Ended
		March 31, 2022			March 31, 2021				March 31, 2023			March 31, 2022
EBIT (loss)-adjusted(a)		$	13.9		$	12.9
EBIT-adjusted(a)								EBIT-adjusted(a)	$	14.2		$	13.9
Average equity(b)	Average equity(b)	$	59.6		$	45.7		Average equity(b)	$	68.6		$	59.6
Add: Average automotive debt and interest liabilities (excluding finance leases)	Add: Average automotive debt and interest liabilities (excluding finance leases)	16.9			24.7			Add: Average automotive debt and interest liabilities (excluding finance leases)	17.4			16.9
Add: Average automotive net pension & OPEB liability	Add: Average automotive net pension & OPEB liability	14.0			17.8			Add: Average automotive net pension & OPEB liability	8.6			14.0

Less: Average automotive and other net income tax asset	Less: Average automotive and other net income tax asset	(21.8)			(23.8)			Less: Average automotive and other net income tax asset	(20.9)			(21.8)
ROIC-adjusted average net assets	ROIC-adjusted average net assets	$	68.8		$	64.4		ROIC-adjusted average net assets	$	73.6		$	68.8
ROIC-adjusted	ROIC-adjusted	20.2		%	20.0		%	ROIC-adjusted	19.3		%	20.2		%

__________

(a)Refer to the reconciliation of Net income ~~(loss)~~ attributable to stockholders under U.S. GAAP to ~~EBIT (loss)-adjusted~~EBIT-adjusted within this section of MD&A.

(b)Includes equity of noncontrolling interests where the corresponding earnings (loss) are included in ~~EBIT (loss)-adjusted.~~EBIT-adjusted.

Overview Our vision for the future is a world with zero crashes, ~~zero-emissions~~zero emissions and zero congestion, which guides our growth-focused strategy to invest in EVs and AVs, software-enabled services and subscriptions and new business opportunities, while strengthening our market position in profitable ~~internal combustion engine~~ICE vehicles, such as trucks and SUVs. We ~~have committed to an all-electric future with a core focus on zero-emission battery EVs as part of our long-term strategy. We plan to~~will execute our strategy with a diverse team and a steadfast commitment to good citizenship through sustainable operations and a leading health and safety culture.

The automotive industry and GM are currently experiencing supply chain challenges, including the continuing global semiconductor supply shortage, which continues to impact multiple suppliers. We will continue prioritizing our most popular and in-demand vehicles, including our full-size trucks, full-size SUVs and EVs. We do not expect these challenges to impact our long-term growth and EV initiatives. In June 2021, we announced plans to increase our investment in EVs and AVs from $27.0 billion to more than $35.0 billion, through 2025, to accelerate battery and EV assembly capacity.

We continue to monitor the ~~impact of~~macro-economic environment, including higher interest rates, inflationary pressures and competitor actions. Supply chain and logistics challenges have begun to ease, leading to increased production, which could result in a gradual increase in incentive activity as the ~~COVID-19 pandemic,~~year progresses. We expect pricing performance on our new and ~~government actions~~refreshed vehicles to partially offset this headwind. U.S. dealer inventories remained flat compared to December 2022 as we matched supply with demand and ~~measures taken~~proactively planned some downtime at our facilities.

In January 2023, we announced our intention to ~~prevent its spread,~~implement a cost reduction program to reduce fixed costs by $2.0 billion on an annual run rate basis by 2024. In March 2023, we took the initial steps and announced performance-based exits and a VSP in an effort to accelerate attrition, which we believe will result in approximately $1.0 billion towards this target on an annual run rate basis. In addition to people costs, we expect the ~~potential to affect our operations.~~remaining $1.0 billion will come from reducing complexity across the vehicle portfolio and throughout the business, prioritizing growth initiatives and reducing overhead and discretionary costs. Refer to ~~Part I, Item 1A. Risk Factors~~the Consolidated Results and regional analysis sections of ~~our 2021 Form 10-K~~this MD&A for ~~further discussion of these risks.~~additional information.

We also face continuing market, operating and regulatory challenges in several countries across the globe due to, among other factors, ~~weak economic conditions,~~ competitive pressures, our product portfolio offerings, heightened ~~emissions~~emission standards, potentially weakening economic conditions, labor disruptions, foreign exchange volatility, ~~rising material and services prices driven by inflationary pressures,~~ evolving trade policy and political uncertainty. Refer to Part I, Item 1A. Risk Factors of our ~~2021~~2022 Form 10-K for a discussion of these challenges.

As we continue to assess our performance and the needs of our evolving business, additional restructuring and rationalization actions could be required. These actions could give rise to future asset impairments or other charges, which may have a material impact on our operating results.

On August 16, 2022, the Inflation Reduction Act of 2022 (the "Act") was signed into law. The Act modified climate and clean energy tax provisions, including the consumer credit for EV purchases, and added new corporate tax credits for commercial EV purchases and investments in clean energy production, supply chains and manufacturing facilities. We expect to generate credits from our production of battery components and commercial EV tax credits that will increase net income and impact income tax cash payments. We also expect to benefit from the Act through lower raw material costs. While waiting on pending Department of Treasury regulatory guidance, we are continuing to evaluate the ultimate impact of the tax credits on our financial results, including our net earnings and cash flow.

For the year ending December 31, ~~2022,~~2023, we expect Net income attributable to stockholders of between ~~$9.6~~$8.4 billion and ~~$11.2~~$9.9 billion, EBIT-adjusted of between ~~$13.0~~$11.0 billion and ~~$15.0~~$13.0 billion, EPS-diluted of between ~~$5.76~~$5.83 and ~~$6.76~~$6.83 and EPS-diluted-adjusted of between ~~$6.50~~$6.35 and ~~$7.50.~~$7.35. We do not consider the potential impact of future adjustments on our expected financial results.

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The following table reconciles expected Net income attributable to stockholders under U.S. GAAP to expected EBIT-adjusted (dollars in billions):


									Year Ending December 31, ~~2022~~2023
Net income attributable to stockholders									$ ~~9.6-11.2~~8.4-9.9
Income tax expense									~~1.6-2.0~~1.5-2.0
Automotive interest expense, net									~~0.8~~0.1

Adjustments(a)									1.0
~~EBIT-adjusted(b)~~EBIT-adjusted									$ ~~13.0-15.0~~11.0-13.0

________

(a)Refer to the reconciliation of Net income ~~(loss)~~ attributable to stockholders under U.S. GAAP to ~~EBIT (loss)-adjusted~~EBIT-adjusted within the MD&A for the details of each individual adjustment.

~~(b)~~We do not consider the potential future impact of adjustments on our expected financial results.

The following table reconciles expected EPS-diluted under U.S. GAAP to expected EPS-diluted-adjusted:


									Year Ending December 31, ~~2022~~2023
Diluted earnings per common share									$ ~~5.76-6.76~~5.83-6.83
Adjustments(a)									~~0.74~~0.52

~~EPS-diluted-adjusted(b)~~EPS-diluted-adjusted									$ ~~6.50-7.50~~6.35-7.35

________

(a)Refer to the reconciliation of diluted earnings ~~(loss)~~ per common share under U.S. GAAP to EPS-diluted-adjusted within the MD&A for the details of each individual adjustment.

~~(b)~~We do not consider the potential future impact of adjustments on our expected financial results.

GMNA Industry sales in North America were ~~4.1~~4.5 million units in the three months ended March 31, ~~2022,~~2023, representing ~~a decrease~~an increase of ~~14.3%~~9.2% compared to the corresponding period in ~~2021.~~2022. U.S. industry sales were ~~3.4~~3.7 million units in the three months ended March 31, ~~2022,~~2023, representing ~~a decrease~~an increase of ~~15.7%~~8.3% compared to the corresponding period in ~~2021.~~2022.

Our total vehicle sales in the U.S., our largest market in North America, were ~~0.5~~0.6 million units for market share of ~~15.2%~~16.4% in the three months ended March 31, ~~2022,~~2023, representing ~~a decrease~~an increase of ~~0.8~~1.3 percentage points compared to the corresponding period in ~~2021.~~2022.

We expect to sustain relatively strong EBIT-adjusted margins in ~~2022~~2023 on the continued strength of ~~favorable~~ vehicle pricing and ~~strong~~healthy U.S. industry ~~light vehicle~~ demand, partially offset by ~~higher~~elevated costs associated with commodities, raw materials and logistics. Our outlook is dependent on the pricing environment, continuing improvement of supply chain ~~challenges~~availability and overall economic conditions. As a result of supply chain ~~challenges,~~disruptions, we experienced interruptions to our planned production schedules and continue to prioritize production of our most popular and in-demand products, including our full-size trucks, full-size SUVs and EVs. ~~Additionally, we have been~~

In 2023, our collective bargaining agreements with the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) in the United States and Unifor in Canada, as well as collective bargaining agreements in Mexico, will expire, which will require negotiation of new agreements. Refer to Part I, Item 1A. Risk Factors of our 2022 Form 10-K for a discussion of the risks related to any significant disruption at our manufacturing ~~vehicles without the impacted components and expect to hold these vehicles in our inventory until they are completed and sold to our dealers.~~facilities.

GMI Industry sales in China were ~~5.8~~5.2 million units in the three months ended March 31, ~~2022,~~2023, representing a decrease of ~~13.4%~~10.3% compared to the corresponding period in ~~2021.~~2022. Our total vehicle sales in China were ~~0.6~~0.5 million units for market share of ~~10.6%~~9.0% in the three months ended March 31, ~~2022,~~2023, representing a decrease of ~~1.1~~1.7 percentage points compared to the corresponding period in ~~2021, reflecting the impact of the semiconductor shortage and COVID-19 restrictions on global original equipment manufacturers.~~2022. The ongoing ~~global semiconductor~~ supply ~~shortage,~~chain disruptions, global macro-economic impact ~~and local restrictions due to COVID-19~~ and geopolitical tensions continue to place pressure on China's automotive industry and our vehicle sales in China. Our Automotive China JVs generated equity income of ~~$0.2~~$0.1 billion in the three months ended March 31, ~~2022.~~2023. Although price competition, higher costs associated with commodities and raw materials and a more challenging regulatory environment related to emissions, fuel consumption and new energy vehicles will place pressure on our operations in China, we will continue to build upon our strong brands, network, and partnerships in China as well as drive improvements in vehicle mix and cost.

Outside of China, industry sales were ~~5.8~~6.4 million units in the three months ended March 31, ~~2022,~~2023, representing ~~a decrease~~an increase of ~~6.9%~~5.7% compared to the corresponding period in ~~2021.~~2022. Our total vehicle sales outside of China were 0.2 million units for a market share of ~~3.7%~~3.4% in the three months ended March 31, ~~2022,~~2023, representing ~~an increase~~a decrease of 0.2 percentage points compared to the corresponding period in ~~2021.~~2022.

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We historically operated a small import business in Russia and sold GM-badged vehicles into Russia through GM’s alliance partner in Uzbekistan. GM’s current direct and indirect profitability in Russia is insignificant. With Russia’s recent invasion of Ukraine, western sanctions on Russia have and may continue to progressively increase. In addition, reputational, legal and other concerns may impact our ability to operate in Russia. As of the end of February, we suspended our exports into Russia and instructed our Russian sales company to cease selling vehicles within Russia. In April, we took additional actions to extend the suspension of our Russian business, including the cessation of commercial operations. We continue to monitor the evolving situation. Because of the deteriorating business environment in Russia and ongoing sanctions, our ability to operate in Russia in the future is uncertain. In the event we were to lose control of our Russian sales company or are otherwise unable to operate again in Russia, we would expect to record a non-cash charge of approximately $0.6 billion to write off our investment and release accumulated translation losses. These charges would be considered special for EBIT-adjusted and EPS-diluted-adjusted purposes. We also expect to incur insignificant cash charges for employee severance and other local obligations. In addition, we are monitoring the situation and its macroeconomic impacts on our financial position and results of operations.

Cruise Gated by safety and regulation, Cruise continues to make significant progress towards commercialization of a network of on-demand ~~AVs in the United States and globally.~~AVs. In 2021, Cruise received a driverless test permit from the California Public Utilities Commission (CPUC) to provide unpaid rides to the public in driverless vehicles and received approval of its Autonomous Vehicle Deployment Permit from the California Department of Motor Vehicles to commercially deploy driverless AVs. In June 2022, Cruise ~~will need one additional permit from~~received the first ever Driverless Deployment Permit granted by the CPUC, which allows them to charge a fare for the driverless rides they are providing to members of the public in certain parts of San Francisco. Additionally, in September 2022, Cruise acquired regulatory permits to operate driverless ride hail services in Phoenix, Arizona and began pursuing ride hail operations in Austin, Texas. GM and Cruise are also awaiting a decision on an exemption petition that was filed with NHTSA seeking regulatory approval for ~~driverless rides in California. Refer to~~ the ~~"Liquidity and Capital Resources" section~~deployment of ~~this MD&A for information about GM's additional investment in Cruise.~~the Cruise Origin.

Vehicle Sales The principal factors that determine consumer vehicle preferences in the markets in which we operate include overall vehicle design, price, quality, available options, safety, reliability, fuel economy and functionality. Market leadership in individual countries in which we compete varies widely.

We present both wholesale and total vehicle sales data to assist in the analysis of our revenue and our market share. Wholesale vehicle sales data consists of sales to GM's dealers and distributors as well as sales to the U.S. Government and excludes vehicles sold by our joint ventures. Wholesale vehicle sales data correlates to our revenue recognized from the sale of vehicles, which is the largest component of Automotive net sales and revenue. In the three months ended March 31, ~~2022,~~2023, 28.4% of our wholesale vehicle sales volume was generated outside the U.S. The following table summarizes wholesale vehicle sales by automotive segment (vehicles in thousands):


		Three Months Ended									Three Months Ended
			March 31, 2022	March 31, 2021								March 31, 2023	March 31, 2022
GMNA	GMNA			694	83.5	%	664	80.9	%	GMNA				723	83.7	%	694	83.5	%
GMI	GMI			137	16.5	%	157	19.1	%	GMI				141	16.3	%	137	16.5	%
Total	Total			831	100.0	%	821	100.0	%	Total				864	100.0	%	831	100.0	%

Total vehicle sales data represents: (1) retail sales (i.e., sales to consumers who purchase new vehicles from dealers or distributors); (2) fleet sales (i.e., sales to large and small businesses, governments, and daily rental car companies); and (3) certain vehicles used by dealers in their business. Total vehicle sales data for periods presented prior to 2022 reflect courtesy transportation vehicles used by U.S. dealers in their business; beginning in 2022, we stopped including such dealership courtesy transportation vehicles in total vehicle sales until such time as those vehicles were sold to the end customer. Total vehicle sales data includes all sales by joint ventures on a total vehicle basis, not based on our percentage ownership interest in the joint venture. Certain joint venture agreements in China allow for the contractual right to report vehicle sales of non-GM trademarked vehicles by those joint ventures, which are included in the total vehicle sales we report for China. While total vehicle sales data does not correlate directly to the revenue we recognize during a particular period, we believe it is indicative of the underlying demand for our vehicles. Total vehicle sales data represents management's good faith estimate based on sales reported by GM's dealers, distributors, and joint ventures, commercially available data sources such as registration and insurance data, and internal estimates and forecasts when other data is not available.

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The following table summarizes industry and GM total vehicle sales and our related competitive position by geographic region (vehicles in thousands):


		Three Months Ended					Three Months Ended
			March 31, 2022	March 31, 2021							March 31, 2023					March 31, 2022
					Industry	GM		Market Share		Industry		GM	Market Share				Industry	GM	Market Share		Industry	GM	Market Share
North America	North America														North America
United States	United States				3,383	513		15.2	%	4,014		642	16.0	%	United States		3,684	603	16.4	%	3,402	513	15.1	%
Other	Other				687	88		12.8	%	735		104	14.2	%	Other		786	103	13.2	%	693	88	12.7	%
Total North America	Total North America				4,070	601		14.8	%	4,749		746	15.7	%	Total North America		4,470	707	15.8	%	4,095	601	14.7	%
Asia/Pacific, Middle East and Africa	Asia/Pacific, Middle East and Africa														Asia/Pacific, Middle East and Africa
China(a)	China(a)				5,796	613		10.6	%	6,696		780	11.7	%	China(a)		5,154	462	9.0	%	5,745	613	10.7	%
Other	Other				5,016	122		2.4	%	5,357		100	1.9	%	Other		5,547	110	2.0	%	5,260	123	2.3	%
Total Asia/Pacific, Middle East and Africa	Total Asia/Pacific, Middle East and Africa				10,811	735		6.8	%	12,053		880	7.3	%	Total Asia/Pacific, Middle East and Africa		10,701	572	5.3	%	11,005	736	6.7	%
South America	South America														South America
Brazil	Brazil				405	50		12.4	%	528		75	14.2	%	Brazil		471	71	15.1	%	405	50	12.4	%
Other	Other				388	40		10.3	%	357		43	12.0	%	Other		380	34	9.0	%	389	40	10.3	%
Total South America	Total South America				793	90		11.4	%	885		118	13.3	%	Total South America		852	105	12.4	%	795	90	11.3	%
Total in GM markets	Total in GM markets				15,675	1,426		9.1	%	17,688		1,744	9.9	%	Total in GM markets		16,023	1,384	8.6	%	15,895	1,427	9.0	%
Total Europe	Total Europe				3,742	—		—	%	3,939		—	—	%	Total Europe		4,012	—	—	%	3,461	1	—	%
Total Worldwide(b)(c)	Total Worldwide(b)(c)				19,416	1,427		7.3	%	21,627		1,744	8.1	%	Total Worldwide(b)(c)		20,035	1,384	6.9	%	19,357	1,427	7.4	%
United States	United States														United States
Cars	Cars				670	47		7.0	%	857		61	7.1	%	Cars		719	61	8.4	%	672	47	7.0	%
Trucks	Trucks				883	287		32.5	%	1,059		307	29.0	%	Trucks		993	297	29.9	%	904	287	31.8	%
Crossovers	Crossovers				1,830	179		9.8	%	2,098		274	13.1	%	Crossovers		1,972	246	12.5	%	1,826	179	9.8	%
Total United States	Total United States				3,383	513		15.2	%	4,014		642	16.0	%	Total United States		3,684	603	16.4	%	3,402	513	15.1	%
China(a)	China(a)														China(a)
SGMS	SGMS					263						347			SGMS			173				263
SGMW	SGMW					350						433			SGMW			289				350
Total China	Total China				5,796	613		10.6	%	6,696		780	11.7	%	Total China		5,154	462	9.0	%	5,745	613	10.7	%

__________

(a)Includes sales by the Automotive China JVs: SAIC General Motors Sales Co., Ltd. (SGMS) and SAIC GM Wuling Automobile Co., Ltd. (SGMW).

(b)Cuba, Iran, North Korea, Sudan and Syria are subject to broad economic sanctions. Accordingly, these countries are excluded from industry sales data and corresponding calculation of market share.

(c)As of March 2022, GM is no longer importing vehicles or parts to Russia, Belarus and other sanctioned provinces in Ukraine.

As discussed above, total vehicle sales and market share data provided in the table above includes fleet vehicles. Certain fleet transactions, particularly sales to daily rental car companies, are generally less profitable than retail sales to end customers. The following table summarizes estimated fleet sales and those sales as a percentage of total vehicle sales (vehicles in thousands):


		Three Months Ended						Three Months Ended
			March 31, 2022		March 31, 2021				March 31, 2023		March 31, 2022
GMNA	GMNA		142		133		GMNA		177		142
GMI	GMI		67		60		GMI		90		71
Total fleet sales	Total fleet sales		209		193		Total fleet sales		267		213

Fleet sales as a percentage of total vehicle sales	Fleet sales as a percentage of total vehicle sales		14.7	%	11.1	%	Fleet sales as a percentage of total vehicle sales		19.3	%	14.9	%

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GM Financial We believe that offering a comprehensive suite of financing products will generate incremental sales of our vehicles, drive incremental GM Financial earnings and help support our sales throughout various economic cycles. GM Financial's leasing program is exposed to residual values, which are heavily dependent on used vehicle prices. Used vehicle prices, although lower year-over-year, were ~~sustained at high levels~~generally higher than contractual residual values for the three months ended March 31, ~~2022,~~2023, primarily due to above-average seasonal demand and low ~~new vehicle inventory. The high levels of~~ used vehicle ~~prices also resulted in gains~~supply. Gains on terminations of leased vehicles of $0.2 billion and $0.4 billion were included in GM Financial interest, operating and other expenses for the three months ended March 31, ~~2022~~2023 and ~~2021.~~2022. The decrease in gains is primarily due to higher leased portfolio net book values at termination and fewer terminated leases. For the remainder of ~~2022,~~2023, GM Financial expects used vehicle prices to ~~decrease relative to 2021 levels, but to remain above pre-pandemic levels, primarily due to sustained low new vehicle inventory.~~moderate, as market prices on used vehicles approach contract residual values. The following table summarizes the estimated residual value based on GM Financial's most recent estimates and the number of units included in GM Financial Equipment on operating leases, net by vehicle type (units in thousands):


		March 31, 2022					December 31, 2021						March 31, 2023					December 31, 2022
		Residual Value		Units	Percentage		Residual Value		Units	Percentage			Residual Value		Units	Percentage		Residual Value		Units	Percentage
Crossovers	Crossovers	$	16,134	850	67.2	%	$	16,696	897	67.3	%	Crossovers	$	13,797	710	67.4	%	$	14,207	736	67.3	%
Trucks	Trucks	7,741		256	20.3	%	7,886		264	19.8	%	Trucks	6,829		221	21.0	%	6,961		228	20.9	%
SUVs	SUVs	2,952		75	5.9	%	3,104		80	5.9	%	SUVs	2,537		64	6.1	%	2,595		66	6.0	%
Cars	Cars	1,278		83	6.5	%	1,430		93	7.0	%	Cars	904		58	5.6	%	964		63	5.8	%
Total	Total	$	28,105	1,264	100.0	%	$	29,116	1,334	100.0	%	Total	$	24,067	1,053	100.0	%	$	24,727	1,092	100.0	%

GM Financial's penetration of our retail sales in the U.S. was 46% in the three months ended March 31, ~~2022~~2023 and ~~44% in the corresponding period in 2021.~~2022. Penetration levels vary depending on incentive financing programs available and competing third-party financing products in the market. GM Financial's prime loan originations as a percentage of total loan originations in North America increased to ~~79%~~83% in the three months ended March 31, ~~2022~~2023 from ~~72%~~79% in the ~~three months ended March 31, 2021.~~corresponding period in 2022. In the three months ended March 31, ~~2022,~~2023, GM Financial's revenue consisted of leased vehicle income of ~~65%~~54%, retail finance charge income of ~~30%~~35% and commercial finance charge income of 2%6%.

Consolidated Results We review changes in our results of operations under five categories: volume, mix, price, cost and other. Volume measures the impact of changes in wholesale vehicle volumes driven by industry volume, market share and changes in dealer stock levels. Mix measures the impact of changes to the regional portfolio due to product, model, trim, country and option penetration in current year wholesale vehicle volumes. Price measures the impact of changes related to Manufacturer’s Suggested Retail Price and various sales allowances. Cost primarily includes: (1) material and freight; (2) manufacturing, engineering, advertising, administrative and selling and warranty expense; and (3) non-vehicle related activity. Other primarily includes foreign exchange and non-vehicle related automotive revenues as well as equity income or loss from our nonconsolidated affiliates. Refer to the regional sections of this MD&A for additional information.

Total Net Sales and Revenue

Three Months Ended Favorable/ (Unfavorable) % Variance Due To
March 31, 2022 March 31, 2021 Volume Mix Price Other
(Dollars in billions)
GMNA $ 29,456 $ 25,957 $ 3,499 13.5 % $ 1.0 $ 0.4 $ 1.8 $ 0.3
GMI 3,313 3,086 227 7.4 % $ (0.3) $ 0.3 $ 0.2 $ —
Corporate 53 19 34 n.m. $ — $ —
Automotive 32,823 29,062 3,761 12.9 % $ 0.7 $ 0.7 $ 2.1 $ 0.3
Cruise 26 30 (4) (13.3) % $ —
GM Financial 3,156 3,407 (251) (7.4) % $ (0.3)
Eliminations/reclassifications (26) (25) (1) 4.0 % $ — $ —
Total net sales and revenue $ 35,979 $ 32,474 $ 3,505 10.8 % $ 0.7 $ 0.7 $ 2.1 $ —

~~__________~~

~~n.m. = not meaningful~~



	Three Months Ended				Favorable/ (Unfavorable)		%		Variance Due To
	March 31, 2023		March 31, 2022						Volume		Mix		Price		Other
									(Dollars in billions)
GMNA	$	32,889	$	29,456	$	3,433	11.7	%	$	1.1	$	0.8	$	1.3	$	0.2
GMI	3,727		3,313		414		12.5	%	$	0.1	$	0.1	$	0.3	$	(0.1)
Corporate	31		53		(22)		(41.5)	%			$	—			$	—
Automotive	36,646		32,823		3,823		11.6	%	$	1.2	$	0.9	$	1.6	$	0.1
Cruise	25		26		(1)		(3.8)	%			$	—			$	—
GM Financial	3,343		3,156		187		5.9	%							$	0.2
Eliminations/reclassifications	(29)		(26)		(3)		(11.5)	%			$	—			$	—
Total net sales and revenue	$	39,985	$	35,979	$	4,006	11.1	%	$	1.2	$	0.9	$	1.6	$	0.3

Refer to the regional sections of this MD&A for additional information on volume, mix and price.

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Automotive and Other Cost of Sales


		Three Months Ended				Favorable/ (Unfavorable)				%					Variance Due To																	Three Months Ended								Favorable/ (Unfavorable)		%						Variance Due To
		March 31, 2022		March 31, 2021										Volume			Mix				Cost				Other				March 31, 2023					March 31, 2022											Volume			Mix		Cost		Other
															(Dollars in billions)																																	(Dollars in billions)
GMNA	GMNA	$	25,096	$	21,962			$	(3,134)			(14.3)	%				$	(0.7)			$	(0.5)			$	(2.0)				$	—		GMNA	$	28,421			$	25,096			$	(3,325)			(13.2)	%			$	(0.8)	$	(0.9)	$	(1.7)	$	0.1
GMI	GMI	3,015		2,897		(118)				(4.1)	%				$	0.3			$	(0.2)			$	(0.1)			$	—		GMI		3,235				3,015				(220)		(7.3)		%				$	(0.1)	$	(0.1)	$	(0.2)	$	0.2
Corporate	Corporate	112		29		(83)				n.m.									$	—			$	(0.1)			$	—		Corporate		60				112				52		46.4		%						$	—	$	—	$	0.1
Cruise	Cruise	1,132		227		(905)				n.m.													$	(0.9)						Cruise		532				1,132				600		53.0		%						$	—	$	0.6
Eliminations	Eliminations	—		—		—				—	%								$	—			$	—						Eliminations		(1)				—				1		n.m.								$	—
Total automotive and other cost of sales	Total automotive and other cost of sales	$	29,353	$	25,115	$	(4,238)			(16.9)	%				$	(0.5)			$	(0.7)			$	(3.1)			$	—		Total automotive and other cost of sales		$	32,247			$	29,353			$	(2,894)	(9.9)		%				$	(0.8)	$	(1.0)	$	(1.4)	$	0.3

__________

n.m. = not meaningful

In the three months ended March 31, ~~2022,~~2023, increased Cost was primarily due to: (1) ~~increased material and freight costs~~charges of ~~$1.1 billion; (2) increased costs of $0.8~~$0.7 billion related to ~~modification~~the VSP; (2) increased campaigns and other warranty-related costs of ~~Cruise stock incentive awards;~~$0.5 billion; (3) increased ~~manufacturing~~engineering costs of ~~$0.5~~$0.4 billion; (4) increased costs of $0.3 billion primarily related to parts and accessories sales; and (5) increased ~~engineering~~material and freight costs of $0.3 billion; partially offset by (6) charges of $0.8 billion related to modification of Cruise stock incentive awards in 2022; and (7) decreased costs of $0.2 billion ~~primarily~~ related to ~~accelerating our EV portfolio.~~other cost of sales and several individually insignificant items. In the three months ended March 31, 2023, favorable Other was primarily due to the weakening of the Korean Won and other currencies against the U.S. Dollar.

Refer to the regional sections of this MD&A for additional information on volume and mix.

Automotive and Other Selling, General and Administrative Expense

Three Months Ended Favorable/ (Unfavorable)
March 31, 2022 March 31, 2021 %
Automotive and other selling, general and administrative expense $ 2,504 $ 1,803 $ (701) (38.9) %


	Three Months Ended				Favorable/ (Unfavorable)
	March 31, 2023		March 31, 2022				%
Automotive and other selling, general and administrative expense	$	2,547	$	2,504	$	(43)	(1.7)	%

In the three months ended March 31, ~~2022,~~2023, Automotive and other selling, general and administrative expense increased primarily due to: (1) charges of $0.2 billion related to ~~increased costs~~the VSP; and (2) charges of $0.1 billion for strategic activities related to Buick dealerships; offset by (3) charges of $0.3 billion related to modification of Cruise stock incentive awards ~~and several insignificant items.~~in 2022.

Interest Income and Other Non-operating Income, net

Three Months Ended Favorable/ (Unfavorable)
March 31, 2022 March 31, 2021 %
Interest income and other non-operating income, net $ 517 $ 799 $ (282) (35.3) %


	Three Months Ended				Favorable/ (Unfavorable)
	March 31, 2023		March 31, 2022				%
Interest income and other non-operating income, net	$	409	$	517	$	(108)	(20.9)	%

In the three months ended March 31, 2023, Interest income and other non-operating income, net decreased primarily due to $0.3 billion decrease in non-service pension income, partially offset by the absence of $0.2 billion in losses related to Stellantis warrants, that occurred in the three months ended March 31, 2022, ~~compared to $0.2 billion~~as warrants were exercised in ~~gains in the three months ended March 31, 2021 related to Stellantis warrants.~~2022.

Income Tax Expense (Benefit)

Three Months Ended Favorable/ (Unfavorable)
March 31, 2022 March 31, 2021 %
Income tax expense (benefit) $ (28) $ 1,177 $ 1,205 n.m.


	Three Months Ended				Favorable/ (Unfavorable)
	March 31, 2023		March 31, 2022				%
Income tax expense (benefit)	$	428	$	(28)	$	(456)	n.m.

~~_________~~__________

n.m. = not meaningful

In the three months ended March 31, ~~2022,~~2023, Income tax expense ~~decreased~~increased primarily due to the absence of the Cruise valuation allowance ~~adjustments and lower pre-tax income.~~

~~For~~adjustment that occurred in the three months ended March 31, ~~2022, our ETR-adjusted was 19.6%. We expect our adjusted effective tax rate to be approximately 20% for the year ending December 31,~~ 2022.

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For the three months ended March 31, 2023, our ETR-adjusted was 17.8%. We expect our adjusted effective tax rate to be between 16% and 18% for the year ending December 31, 2023.

Refer to Note 1514 to our condensed consolidated financial statements for additional information related to Income tax ~~expense (benefit).~~expense.

GM North America


	Three Months Ended						Favorable/ (Unfavorable)			%		Variance Due To
	March 31, 2023			March 31, 2022								Volume		Mix		Price		Cost		Other
												(Dollars in billions)
Total net sales and revenue	$	32,889		$	29,456		$	3,433		11.7	%	$	1.1	$	0.8	$	1.3			$	0.2
EBIT-adjusted	$	3,576		$	3,141		$	435		13.8	%	$	0.3	$	(0.1)	$	1.3	$	(1.0)	$	(0.1)
EBIT-adjusted margin	10.9		%	10.7		%	0.2		%
	(Vehicles in thousands)
Wholesale vehicle sales	723			694			29			4.2	%

Three Months Ended Favorable / (Unfavorable) % Variance Due To
March 31, 2022 March 31, 2021 Volume Mix Price Cost Other
(Dollars in billions)
Total net sales and revenue $ 29,456 $ 25,957 $ 3,499 13.5 % $ 1.0 $ 0.4 $ 1.8 $ 0.3
EBIT (loss)-adjusted $ 3,141 $ 3,134 $ 7 0.2 % $ 0.3 $ (0.1) $ 1.8 $ (2.2) $ 0.1
EBIT (loss)-adjusted margin 10.7 % 12.1 % (1.4) %
(Vehicles in thousands)
Wholesale vehicle sales 694 664 30 4.5 %

GMNA Total Net Sales and Revenue In the three months ended March 31, ~~2022,~~2023, Total net sales and revenue increased primarily due to: (1) favorable price ~~primarily due to lower incentives~~ as a result of ~~low~~stable dealer inventory ~~levels;~~levels and strong demand for our products; (2) increased net wholesale volumes primarily due to increased sales of crossover vehicles and full-size pickup trucks, partially offset by decreased sales of mid-size pickup trucks; and ~~full-size SUVs;~~ (3) favorable mix associated with increased sales of full-size ~~SUVs and full-size~~ pickup trucks and ~~lower~~full-size SUVs, and decreased sales of ~~certain~~mid-size pickup trucks and passenger cars, partially offset by increased sales of crossover vehicles.

GMNA ~~EBIT (Loss)-Adjusted~~EBIT-Adjusted In the three months ended March 31, ~~2022,~~2023, EBIT-adjusted ~~was consistent with the three months ended March 31, 2021~~increased primarily due to: (1) favorable price; and (2) ~~increased net wholesale volumes;~~favorable volume; partially offset by (3) unfavorable Cost primarily due to increased ~~material~~campaigns and ~~freight cost~~other warranty-related costs of ~~$1.0~~$0.5 billion, decreased non-service pension income of $0.3 billion, increased ~~manufacturing cost of $0.4 billion, increased selling, general and administrative~~engineering costs of $0.2 billion and increased ~~engineering cost including accelerating our EV portfolio.~~material and freight costs of $0.2 billion.

GM International

Three Months Ended Favorable / (Unfavorable) Variance Due To
March 31, 2022 March 31, 2021 % Volume Mix Price Cost Other
(Dollars in billions)
Total net sales and revenue $ 3,313 $ 3,086 $ 227 7.4 % $ (0.3) $ 0.3 $ 0.2 $ —
EBIT (loss)-adjusted $ 328 $ 308 $ 20 6.5 % $ (0.1) $ 0.1 $ 0.2 $ (0.1) $ (0.2)
EBIT (loss)-adjusted margin 9.9 % 10.0 % (0.1) %
Equity income (loss) — Automotive China $ 234 $ 308 $ (74) (24.0) %
EBIT (loss)-adjusted — excluding Equity income $ 94 $ — $ 94 n.m.
(Vehicles in thousands)
Wholesale vehicle sales 137 157 (20) (12.7) %


	Three Months Ended						Favorable/ (Unfavorable)					Variance Due To
	March 31, 2023			March 31, 2022						%		Volume		Mix		Price		Cost		Other
												(Dollars in billions)
Total net sales and revenue	$	3,727		$	3,313		$	414		12.5	%	$	0.1	$	0.1	$	0.3			$	(0.1)
EBIT-adjusted	$	347		$	328		$	19		5.8	%	$	—	$	—	$	0.3	$	(0.2)	$	(0.2)
EBIT-adjusted margin	9.3		%	9.9		%	(0.6)		%
Equity income — Automotive China	$	83		$	234		$	(151)		(64.5)	%
EBIT-adjusted — excluding Equity income	$	264		$	94		$	170		n.m.
	(Vehicles in thousands)
Wholesale vehicle sales	141			137			4			2.9	%

__________

n.m. = not meaningful

The vehicle sales of our Automotive China JVs are not recorded in Total net sales and revenue. The results of our joint ventures are recorded in Equity income, which is included in ~~EBIT (loss)-adjusted~~EBIT-adjusted above.

GMI Total Net Sales and Revenue In the three months ended March 31, ~~2022,~~2023, Total net sales and revenue increased primarily due to: (1) favorable ~~mix in South America, Asia/Pacific and the Middle East; and (2) favorable~~ pricing across multiple vehicle lines in ~~South America;~~Argentina, Brazil and in the Middle East; (2) increased net wholesale volumes in Brazil due to improved parts availability and a new compact pickup launch, partially offset by ~~(3)~~ decreased ~~wholesale~~ volumes in Egypt, primarily due to ~~supply chain constraints, including~~industry downturn, and in Korea due to end of legacy vehicles production; and (3) favorable mix in Asia Pacific and in the ~~semiconductor shortage.~~Middle East, partially offset by unfavorable mix in South America; all partially offset by (4) unfavorable Other primarily due to the foreign currency effect resulting from the weakening of various currencies against the U.S. dollar, partially offset by increased components sales.

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GMI ~~EBIT (Loss)-Adjusted~~EBIT-Adjusted In the three months ended March 31, ~~2022,~~2023, EBIT-adjusted increased primarily due to: (1) favorable price; ~~and (2) favorable mix;~~ partially offset by ~~(3) decreased wholesale volumes; (4)~~(2) unfavorable ~~Cost~~cost primarily due to increased material, ~~costs;~~logistic and ~~(5)~~other costs to support new vehicles launches in South America; and (3) unfavorable Other primarily due to decreased equity income and the foreign currency effect resulting from the weakening of various currencies against the U.S. dollar.

We view the Chinese market as important to our global growth strategy and are employing a multi-brand strategy. In the coming years we plan to leverage our global architectures to increase the number of product offerings under the Buick, Chevrolet and Cadillac brands in China and continue to grow our business under the local Baojun and Wuling brands while we are accelerating the development and rollout of EVs across our brands in China in response to our commitment to an all-electric future. We operate in the Chinese market through a number of joint ventures and maintaining strong relationships with our joint venture partners is an important part of our China growth strategy.

The following table summarizes certain key operational and financial data for the Automotive China JVs (vehicles in thousands):


		Three Months Ended					Three Months Ended
			March 31, 2022		March 31, 2021				March 31, 2023		March 31, 2022
Wholesale vehicle sales, including vehicles exported to markets outside of China	Wholesale vehicle sales, including vehicles exported to markets outside of China		602		675			Wholesale vehicle sales, including vehicles exported to markets outside of China	392		602
Total net sales and revenue	Total net sales and revenue		$	8,992	$	9,875		Total net sales and revenue	$	5,833	$	8,992
Net income (loss)			$	505	$	586
Net income								Net income	$	123	$	505

Cruise


		Three Months Ended			Favorable / (Unfavorable)					%		Three Months Ended									Favorable/ (Unfavorable)			%
		March 31, 2022	March 31, 2021						March 31, 2023				March 31, 2022
Total net sales and revenue(a)	Total net sales and revenue(a)		$	26			$	30				$	(4)			(13.3)		%	Total net sales and revenue(a)	$			25			$	26		$	(1)	(3.8)	%
EBIT (loss)-adjusted(b)	EBIT (loss)-adjusted(b)		$	(325)	$	(229)				$	(96)		(41.9)	%	EBIT (loss)-adjusted(b)	$	(561)				$	(325)			$	(236)		(72.6)		%

__________

(a)Primarily reclassified to Interest income and other non-operating income, net in our condensed consolidated income statements in the three months ended March 31, ~~2022~~2023 and ~~2021.~~2022.

(b)Excludes $1.1 billion in compensation expense in the three months ended March 31, 2022 resulting from modification of the Cruise stock incentive awards.

Cruise EBIT (Loss)-Adjusted In the three months ended March 31, ~~2022,~~2023, EBIT (loss)-adjusted increased primarily due to an increase in development costs as we progress towards the commercialization of a network of on-demand ~~AVs in the United States and globally.~~AVs.

GM Financial

Three Months Ended Increase/ (Decrease) %
March 31, 2022 March 31, 2021
Total revenue $ 3,156 $ 3,407 $ (251) (7.4) %
Provision for loan losses $ 122 $ (26) $ 148 n.m.
EBT (loss)-adjusted $ 1,284 $ 1,182 $ 102 8.6 %
Average debt outstanding (dollars in billions) $ 92.8 $ 93.9 $ (1.1) (1.2) %
Effective rate of interest paid 2.5 % 2.8 % (0.3) %

~~__________~~

~~n.m. = not meaningful~~


	Three Months Ended				Increase/ (Decrease)			%
	March 31, 2023	March 31, 2022
Total revenue		$	3,343		$	3,156		$	187		5.9	%
Provision for loan losses		$	131		$	122		$	9		7.4	%
EBT-adjusted		$	771		$	1,284		$	(513)		(40.0)	%

Average debt outstanding (dollars in billions)		$	96.9		$	92.8		$	4.1		4.4	%
Effective rate of interest paid		4.2		%	2.5		%	1.7		%

GM Financial Revenue In the three months ended March 31, ~~2022,~~2023, total revenue ~~decreased~~increased primarily due to increased finance charge income of $0.4 billion primarily due to an increase in the effective yield resulting from higher benchmark rates and growth in the size of the portfolio, partially offset by decreased leased vehicle income of ~~$0.3~~$0.2 billion primarily due to a decrease in the ~~size~~average balance of the leased vehicles portfolio.

GM Financial EBT-Adjusted In the three months ended March 31, ~~2022,~~2023, EBT-adjusted ~~increased~~decreased primarily due to: (1) ~~increased~~decreased leased vehicle income net of leased vehicle expenses of ~~$0.1~~$0.4 billion primarily due to decreased ~~depreciation on~~ leased ~~vehicles~~vehicle income resulting from increased residual value estimates and a decrease in the size of the portfolio, partially offset by a decrease in lease termination gains; (2) decreased interest expense of $0.1 billion primarily due to decreased credit spreads on GM Financial debt, as well as a decrease in the average balance of the leased vehicles portfolio and decreased lease termination gains associated with higher leased portfolio net book values at termination and fewer terminated leases; and (2) increased interest expense of $0.4 billion primarily due to an increased effective rate of interest on debt, ~~outstanding; partially offset by (3) increased provision for loan~~resulting from higher benchmark rates

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~~losses~~and increased credit spreads, as well as an increase in average debt outstanding; partially offset by (3) increased finance charge income of ~~$0.1~~$0.4 billion primarily due to ~~a reduction in reserve levels recorded~~an increase in the ~~three months ended March 31, 2021 as a result~~effective yield resulting from higher benchmark rates and growth in the size of ~~actual credit performance that was better than forecast, as well as favorable expectations for charge-offs and recoveries to reflect improved forecast economic conditions.~~the portfolio.

Liquidity and Capital Resources We believe our current levels of cash, cash equivalents, marketable debt securities, available borrowing capacity under our revolving credit facilities and other liquidity actions currently available to us are sufficient to meet our liquidity requirements. We also maintain access to the capital markets and may issue debt or equity securities, which may provide an additional source of liquidity. We have substantial cash requirements going forward, which we plan to fund through our total available liquidity, cash flows from operating activities and additional liquidity measures, if determined to be necessary.

Our known current material uses of cash include, among other possible demands: (1) capital spending and our investments in ~~Ultium Cells LLC,~~ our battery cell manufacturing joint ~~venture,~~ventures of approximately ~~$9.0~~$11.0 billion to ~~$10.0~~$13.0 billion ~~annually over the medium term in addition to~~per year through 2025; (2) payments for engineering and product development activities; ~~(2)~~(3) payments associated with ~~the~~ previously announced vehicle recalls and any other recall-related contingencies; ~~(3)~~(4) payments to service debt and other long-term obligations, including discretionary and mandatory contributions to our pension plans; ~~and (4)~~(5) payments associated with the ~~previously announced~~ liquidity program for holders of equity-based incentive awards issued to employees of ~~Cruise pursuant~~Cruise; (6) dividend payments on our common stock that are declared by our Board of Directors; and (7) payments to ~~Cruise's 2018 Equity Incentive Plan, which we expect to be $1.0 billion to $1.5 billion in 2022, with ongoing expenditures thereafter.~~purchase shares of our common stock authorized by our Board of Directors. Our material future uses of cash, which may vary from time to time based on market conditions and other factors, are focused on the three objectives of our capital allocation program: (1) grow our business at an average target ROIC-adjusted rate of 20% or greater; (2) maintain a strong investment-grade balance sheet, including a target average automotive cash balance of $18 billion; and (3) after the first two objectives are met, return available cash to shareholders. Our senior management evaluates our capital allocation program on an ongoing basis and recommends any modifications to the program to our Board of Directors, not less than once annually.

Our liquidity plans are subject to a number of risks and uncertainties, including those described in the "Forward-Looking Statements" section of this MD&A and Part I, Item 1A. Risk Factors of our 2021 Form 10-K, some of which are outside of our control.

We continue to monitor and evaluate opportunities to strengthen our competitive position over the long term while maintaining a strong investment-grade balance sheet. These actions may include opportunistic payments to reduce our long-term obligations as well as the possibility of acquisitions, dispositions and investments with joint venture partners as well as strategic alliances that we believe would generate significant advantages and substantially strengthen our business. To support our transition to EVs, we anticipate making investments in suppliers or providing funding towards the execution of strategic, multi-year supply agreements to secure critical materials. In addition, we have entered, and plan to continue to enter, into offtake agreements that generally obligate us to purchase defined quantities of output. These arrangements could have a short-term adverse impact on our cash and increase our inventory.

Our liquidity plans are subject to a number of risks and uncertainties, including those described in the "Forward-Looking Statements" section of this MD&A and Part I, Item 1A. Risk Factors of our 2022 Form 10-K, some of which are outside of our control.

In 2022, our Board of Directors increased the capacity under our previously announced common stock repurchase program to $5.0 billion. In the three months ended March 31, 2023, we completed $0.4 billion of repurchases under the program and retired 9 million shares of our common stock. We have completed $2.9 billion of the $5.0 billion program through March 31, 2023.

In 2022, we reinstated a quarterly dividend on our common stock. In the three months ended March 31, 2023, we paid dividends of $0.1 billion to holders of our common stock.

In March 2023, we redeemed our $1.5 billion, 4.875% senior unsecured notes with a maturity date of October 2023 and recorded an insignificant loss.

Cash flows that occur amongst our Automotive, Cruise and GM Financial operations are eliminated when we consolidate our cash flows. Such eliminations include, among other things, collections by Automotive on wholesale accounts receivables financed by dealers through GM Financial, payments between Automotive and GM Financial for accounts receivables transferred by Automotive to GM Financial, loans to Automotive and Cruise from GM Financial, dividends issued by GM Financial to Automotive, tax payments by GM Financial to Automotive and Automotive cash injections in Cruise. The presentation of Automotive liquidity, Cruise liquidity and GM Financial liquidity presented below includes the impact of cash transactions amongst the sectors that are ultimately eliminated in consolidation.

Automotive Liquidity Total available liquidity includes cash, cash equivalents, marketable debt securities and funds available under credit facilities. The amount of available liquidity is subject to seasonal fluctuations and includes balances held by various business units and subsidiaries worldwide that are needed to fund their operations. We have not significantly changed

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the management of our liquidity, including our allocation of available liquidity, our portfolio composition and our investment guidelines since December 31, ~~2021.~~2022. Refer to Part II, Item 7. MD&A of our ~~2021~~2022 Form 10-K.

In March 2023, we renewed and reduced the total borrowing capacity of our five-year, $11.2 billion facility to $10.0 billion, which now matures March 31, 2028. We also renewed and reduced the total borrowing capacity of our three-year, $4.3 billion facility to $4.1 billion, which now matures March 31, 2026, and renewed our 364-day, $2.0 billion revolving credit facility allocated for the exclusive use of GM Financial, which now matures March 30, 2024. The renewed credit facilities are based on Term SOFR whereas the previous credit facilities were based on LIBOR.

We use credit facilities as a mechanism to provide additional flexibility in managing our global liquidity. Our Automotive borrowing capacity under credit facilities totaled $14.1 billion at March 31, 2023 and $15.5 billion at ~~March~~December 31, 2022, ~~and December 31, 2021.~~ which consisted primarily of two credit facilities. Total Automotive borrowing capacity under our credit facilities does not include our 364-day, $2.0 billion facility allocated for exclusive use of GM Financial. We did not have any borrowings against our primary facilities, but had letters of credit outstanding under our sub-facility of ~~$0.3~~$0.6 billion and $0.4 billion at March 31, ~~2022~~2023 and December 31, ~~2021.~~2022.

~~In April 2022, we renewed our 364-day, $2.0 billion revolving credit facility allocated for the exclusive use of GM Financial, which now matures on April 4, 2023.~~ If available capacity permits, GM Financial continues to have access to our automotive credit facilities. GM Financial did not have borrowings outstanding against any of these facilities at March 31, ~~2022~~2023 and December 31, ~~2021.~~2022. We had intercompany loans from GM Financial of ~~$0.1 billion and~~ $0.2 billion at March 31, ~~2022~~2023 and December 31, ~~2021,~~2022, which primarily consisted of commercial loans to dealers we consolidate. We did not have intercompany

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loans to GM Financial at March 31, ~~2022~~2023 and December 31, ~~2021.~~2022. Refer to Note 54 to our condensed consolidated financial statements for additional information.

Several of our loan facilities, including our revolving credit facilities, require compliance with certain financial and operational covenants as well as regular reporting to lenders. We have reviewed our covenants in effect as of March 31, ~~2022~~2023 and determined we are in compliance and expect to remain in compliance in the future.

InGM Financial's Board of Directors declared and paid dividends of $0.5 billion on its common stock in the three months ended March ~~2022, under the Share Purchase Agreement, we acquired SoftBank's equity ownership stake in Cruise for $2.1 billion,~~31, 2023. Future dividends from GM Financial will depend on several factors including business and ~~separately, we made an additional $1.35 billion investment in Cruise in place of SoftBank.~~economic conditions, its financial condition, earnings, liquidity requirements and leverage ratio.

The following table summarizes our Automotive available liquidity (dollars in billions):


		March 31, 2022		December 31, 2021			March 31, 2023		December 31, 2022
Automotive cash and cash equivalents	Automotive cash and cash equivalents	$	9.3	$	14.5	Automotive cash and cash equivalents	$	12.0	$	13.6
Marketable debt securities	Marketable debt securities	8.4		7.1		Marketable debt securities	9.4		10.8
Automotive cash, cash equivalents and marketable debt securities	Automotive cash, cash equivalents and marketable debt securities	17.7		21.6		Automotive cash, cash equivalents and marketable debt securities	21.4		24.4

Available under credit facilities(a)	Available under credit facilities(a)	15.2		15.2		Available under credit facilities(a)	13.5		15.1
Total Automotive available liquidity	Total Automotive available liquidity	$	32.9	$	36.8	Total Automotive available liquidity	$	34.9	$	39.5

__________

(a)We had letters of credit outstanding under our sub-facility of ~~$0.3~~$0.6 billion and $0.4 billion at March 31, ~~2022~~2023 and December 31, ~~2021.~~2022.

The following table summarizes the changes in our Automotive available liquidity (dollars in billions):


	Three Months Ended March 31, ~~2022~~2023
Operating cash flow	$	~~1.6~~2.2
Capital expenditures	~~(1.6)~~(2.4)
~~Purchase~~Payment of ~~SoftBank's equity stake in Cruise~~senior unsecured notes	~~(2.1)~~(1.5)
~~GM investment in Cruise~~Dividends paid and payments to purchase common stock	~~(1.4)~~(0.5)
Investment in Lithium Americas Corp.	(0.3)
Investment in Ultium Cells Holdings LLC	(0.2)




~~Investment~~Decrease in ~~Ultium Cells LLC~~available credit facilities	~~(0.2)~~(1.6)





Other non-operating	(0.3)
Total change in automotive available liquidity	$	~~(4.0)~~(4.6)

~~Automotive Cash Flow (dollars in billions)~~

Three Months Ended Change
March 31, 2022 March 31, 2021
Operating Activities
Net income (loss) $ 2.6 $ 2.7 $ (0.1)
Depreciation, amortization and impairment charges 1.6 1.3 0.3
Pension and OPEB activities (0.5) (0.6) 0.1
Working capital (0.9) (3.3) 2.4
Accrued and other liabilities and income taxes (1.0) (1.5) 0.5
Other (0.2) 0.3 (0.5)
Net automotive cash provided by (used in) operating activities $ 1.6 $ (1.1) $ 2.7

~~In the three months ended March 31, 2022, the~~ ~~increase~~ ~~in Net automotive cash~~ ~~provided by (used in)~~ ~~operating activities was primarily due to~~ ~~working capital; partially offset by lower dividends received from GM Financial of $0.6 billion.~~

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Three Months Ended Change
March 31, 2022 March 31, 2021
Investing Activities
Capital expenditures $ (1.6) $ (0.9) $ (0.7)
Acquisitions and liquidations of marketable securities, net (1.5) 2.2 (3.7)
GM investment in Cruise (1.4) (1.0) (0.4)
Investment in Ultium Cells LLC (0.2) — (0.2)
Other(a) (2.1) (0.1) (2.0)
Net automotive cash provided by (used in) investing activities $ (6.8) $ 0.2 $ (7.0)
Automotive Cash Flow (dollars in billions)


	Three Months Ended				Change
	March 31, 2023		March 31, 2022
Operating Activities
Net income	$	2.2	$	2.6	$	(0.4)
Depreciation, amortization and impairment charges	1.6		1.6		—
Pension and OPEB activities	(0.3)		(0.5)		0.2
Working capital	(2.1)		(0.9)		(1.2)
Accrued and other liabilities and income taxes	0.6		(1.0)		1.6
Other	0.2		(0.2)		0.4
Net automotive cash provided by (used in) operating activities	$	2.2	$	1.6	$	0.6

In the three months ended March 31, 2023, the increase in Net automotive cash provided by operating activities was primarily due to higher dividends received from GM Financial of $0.5 billion.


	Three Months Ended				Change
	March 31, 2023		March 31, 2022
Investing Activities
Capital expenditures	$	(2.4)	$	(1.6)	$	(0.8)
Acquisitions and liquidations of marketable securities, net	1.5		(1.5)		3.0
Other(a)	(0.7)		(3.7)		3.0
Net automotive cash provided by (used in) investing activities	$	(1.6)	$	(6.8)	$	5.2

__________

(a)Includes ~~$2.1~~a $0.3 billion ~~related to~~investment in Lithium Americas Corp. in the three months ended March 31, 2023 and a $0.2 billion investment in Ultium Cells Holdings LLC in the three months ended March 31, 2023 and 2022; and $3.5 billion for the redemption of Cruise preferred shares from SoftBank and GM's investment in Cruise in the three months ended March 31, 2022.

In the three months ended March 31, ~~2022,~~2023, cash ~~used in~~provided by acquisitions and liquidations of marketable securities, net increased due to ~~acquisitions~~liquidations of securities and investments compared to ~~liquidations~~acquisitions of securities to fund operating activities and investments during the three months ended March 31, ~~2021.~~2022.


		Three Months Ended				Change			Three Months Ended				Change
		March 31, 2022		March 31, 2021					March 31, 2023		March 31, 2022
Financing Activities	Financing Activities							Financing Activities

Net proceeds (payments) from short-term debt	Net proceeds (payments) from short-term debt	$	—	$	(0.2)	$	0.2	Net proceeds (payments) from short-term debt	$	(1.5)	$	—	$	(1.5)

Other		(0.2)		0.2		(0.4)
Other(a)								Other(a)	(0.7)		(0.2)		(0.5)
Net automotive cash provided by (used in) financing activities	Net automotive cash provided by (used in) financing activities	$	(0.2)	$	—	$	(0.2)	Net automotive cash provided by (used in) financing activities	$	(2.3)	$	(0.2)	$	(2.0)

__________

(a) Includes $0.5 billion for dividends paid and payments to purchase common stock in the three months ended March 31, 2023.

Adjusted Automotive Free Cash Flow We measure adjusted automotive free cash flow as automotive operating cash flow from operations less capital expenditures adjusted for management actions. In the three months ended March 31, 2023, net automotive cash provided by operating activities under U.S. GAAP was $2.2 billion, capital expenditures were $2.4 billion and adjustments were insignificant.

In the three months ended March 31, 2022, net automotive cash provided by operating activities under U.S. GAAP was $1.6 billion, capital expenditures were $1.6 ~~billion, and adjustments for management actions were insignificant.~~

~~In the three months ended March 31, 2021, net automotive cash used in operating activities under U.S. GAAP was $1.1 billion, capital expenditures were $0.9~~ billion and adjustments for management actions were insignificant.

Status of Credit Ratings We receive ratings from four independent credit rating agencies: DBRS Limited, Fitch Ratings, Moody's Investors Service (Moody's) and Standard & Poor's. All four credit rating agencies currently rate our corporate credit at investment grade. ~~All~~In March 2023, Moody's upgraded our senior unsecured notes to Baa2 from Baa3. As of April 16, 2023, all other credit ratings remained unchanged since December 31, ~~2021.~~2022.

~~Cruise Liquidity~~ In January 2022, Cruise Holdings met the requirements for commercial deployment under its agreements with SoftBank, which triggered SoftBank's obligation to purchase additional Cruise convertible preferred shares for $1.35 billion. In March 2022, GM made the additional $1.35 billion investment in Cruise in place of SoftBank following GM's acquisition of SoftBank's equity ownership stake in Cruise pursuant to the Share Purchase Agreement.

Additionally, in March 2022, GM and Cruise announced a liquidity program for holders of equity-based incentive awards issued to the employees of Cruise pursuant to Cruise's 2018 Equity Incentive Plan, under which GM will purchase newly issued Cruise common stock to fund the withholding tax on vested awards and GM will conduct tender offers for Cruise common stock issued to settle vested awards. ~~Refer to Note 16 to our~~ ~~condensed consolidated financial statements for additional information.~~

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Cruise Liquidity

The following table summarizes Cruise's available liquidity (dollars in billions):


		March 31, 2022		December 31, 2021			March 31, 2023		December 31, 2022
Cruise cash and cash equivalents	Cruise cash and cash equivalents	$	2.6	$	1.6	Cruise cash and cash equivalents	$	1.9	$	1.5
Cruise marketable securities	Cruise marketable securities	1.5		1.5		Cruise marketable securities	0.6		1.4
Total Cruise available liquidity(a)	Total Cruise available liquidity(a)	$	4.1	$	3.1	Total Cruise available liquidity(a)	$	2.5	$	2.9

__________

(a)Excludes a multi-year credit agreement between Cruise and GM Financial whereby Cruise can request to borrow, over time, up to an additional aggregate of ~~$5.0~~$4.5 billion, through 2024, to fund exclusively the purchase of AVs from GM.

The following table summarizes the changes in Cruise's available liquidity (dollars in billions):


	Three Months Ended March 31, ~~2022~~2023
Operating cash ~~flow~~flow(a)	$	~~(0.3)~~(0.5)

~~GM investment in Cruise~~	~~1.4~~

Other non-operating	0.1
Total change in Cruise available liquidity	$	~~1.0~~ (0.4)

__________

(a)Includes $0.1 billion cash outflows related to tendered Cruise Class B Common Shares classified as liabilities.

Cruise Cash Flow (dollars in billions)


		Three Months Ended				Change			Three Months Ended				Change
		March 31, 2022		March 31, 2021					March 31, 2023		March 31, 2022
Net cash provided by (used in) operating activities	Net cash provided by (used in) operating activities	$	(0.3)	$	(0.2)	$	(0.1)	Net cash provided by (used in) operating activities	$	(0.5)	$	(0.3)	$	(0.2)
Net cash provided by (used in) investing activities	Net cash provided by (used in) investing activities	$	—	$	(0.9)	$	0.9	Net cash provided by (used in) investing activities	$	0.8	$	—	$	0.8
Net cash provided by (used in) financing activities	Net cash provided by (used in) financing activities	$	1.3	$	2.5	$	(1.2)	Net cash provided by (used in) financing activities	$	0.1	$	1.3	$	(1.2)

Automotive Financing – GM Financial Liquidity GM Financial's primary sources of cash are finance charge income, leasing income and proceeds from the sale of terminated leased vehicles, net proceeds from credit facilities, securitizations, secured and unsecured borrowings and collections and recoveries on finance receivables. GM Financial's primary uses of cash are purchases and funding of finance receivables and leased vehicles, repayment or repurchases of secured and unsecured debt, funding credit enhancement requirements in connection with securitizations and secured credit facilities, interest costs, operating expenses, income taxes and dividend payments. GM Financial continues to monitor and evaluate opportunities to optimize its liquidity position and the mix of its debt between secured and unsecured debt. The following table summarizes GM Financial's available liquidity (dollars in billions):


		March 31, 2022		December 31, 2021			March 31, 2023		December 31, 2022
Cash and cash equivalents	Cash and cash equivalents	$	4.5	$	4.0	Cash and cash equivalents	$	4.4	$	4.0
Borrowing capacity on unpledged eligible assets	Borrowing capacity on unpledged eligible assets	21.8		19.2		Borrowing capacity on unpledged eligible assets	23.0		22.0
Borrowing capacity on committed unsecured lines of credit	Borrowing capacity on committed unsecured lines of credit	0.6		0.5		Borrowing capacity on committed unsecured lines of credit	0.5		0.5
Borrowing capacity on revolving credit facility, exclusive to GM Financial	Borrowing capacity on revolving credit facility, exclusive to GM Financial	2.0		2.0		Borrowing capacity on revolving credit facility, exclusive to GM Financial	2.0		2.0
Total GM Financial available liquidity	Total GM Financial available liquidity	$	29.0	$	25.7	Total GM Financial available liquidity	$	29.8	$	28.5

At March 31, ~~2022,~~2023, GM Financial's available liquidity increased from December 31, ~~2021~~2022 due to increased available borrowing capacity on unpledged eligible assets, resulting from the issuance of securitization transactions and unsecured debt and an increase in cash and cash equivalents. GM Financial structures liquidity to support at least six months of GM Financial's expected net cash flows, including new originations, without access to new debt financing transactions or other capital markets activity.

GM Financial did not have any borrowings outstanding against our credit facility designated for their exclusive use or the remainder of our revolving credit facilities at March 31, ~~2022~~2023 and December 31, ~~2021.~~2022. Refer to the Automotive Liquidity section of this MD&A for additional details.

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Credit Facilities In the normal course of business, in addition to using its available cash, GM Financial utilizes borrowings under its credit facilities, which may be secured or unsecured, and GM Financial repays these borrowings as appropriate under its cash management strategy. At March 31, ~~2022,~~2023, secured, committed unsecured and uncommitted unsecured credit facilities totaled $26.2 billion, ~~$0.7~~$0.6 billion and ~~$1.2~~$1.5 billion with advances outstanding of ~~$1.6~~$2.8 billion, an insignificant amount and ~~$1.2~~$1.5 billion.

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GM Financial Cash Flow (dollars in billions)


		Three Months Ended				Change			Three Months Ended				Change
		March 31, 2022		March 31, 2021					March 31, 2023		March 31, 2022
Net cash provided by (used in) operating activities	Net cash provided by (used in) operating activities	$	1.2	$	1.5	$	(0.3)	Net cash provided by (used in) operating activities	$	1.7	$	1.2	$	0.5
Net cash provided by (used in) investing activities	Net cash provided by (used in) investing activities	$	(1.0)	$	(1.6)	$	0.6	Net cash provided by (used in) investing activities	$	(1.5)	$	(1.0)	$	(0.5)
Net cash provided by (used in) financing activities	Net cash provided by (used in) financing activities	$	0.5	$	1.4	$	(0.9)	Net cash provided by (used in) financing activities	$	0.2	$	0.5	$	(0.3)

In the three months ended March 31, ~~2022,~~2023, Net cash provided by operating activities ~~decreased~~increased primarily due to: (1) a ~~decrease~~net increase in ~~leased vehicle income of $0.3 billion; and (2) a decrease in~~cash provided by counterparty derivative collateral posting activities of ~~$0.2~~$0.6 billion; (2) an increase in finance charge income of $0.4 billion; (3) a decrease in taxes paid to GM of $0.1 billion; and (4) an increase in investment income of $0.1 billion; partially offset by ~~(3)~~(5) an increase in interest paid of $0.4 billion; and (6) a decrease in ~~interest paid~~leased vehicle income of $0.2 billion.

In the three months ended March 31, ~~2022,~~2023, Net cash used in investing activities ~~decreased~~increased primarily due to: (1) a decrease in purchases of leased vehicles of $3.1 billion; partially offset by (2) a decrease in the proceeds from termination of leased vehicles of $1.2 billion; (3) a decrease in collections and recoveries on finance receivables of $0.9 billion; and (4) an increase in purchases and originations of finance receivables of ~~$0.4~~$1.0 billion; (2) a decrease in proceeds from termination of leased vehicles of $0.5 billion; (3) an increase in purchases of leased vehicles, net of $0.2 billion; and (4) a decrease in principal collections and recoveries on finance receivables $0.1 billion; partially offset by (5) the net change in commercial finance receivables of $1.3 billion.

In the three months ended March 31, ~~2022,~~2023, Net cash provided by financing activities decreased primarily due to: (1) an increase in cash dividend payments of $0.5 billion; and (2) a net decrease in short-term debt & borrowings of ~~$3.3~~$0.1 billion; partially offset by ~~(2) a decrease in debt repayments of $1.8 billion; and~~ (3) a decrease in ~~dividend~~ payments on debt of ~~$0.6~~$0.2 billion.

Critical Accounting Estimates The condensed consolidated financial statements are prepared in conformity with U.S. GAAP, which requires the use of estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses in the periods presented. We believe the accounting estimates employed are appropriate and the resulting balances are reasonable; however, due to the inherent uncertainties in developing estimates, actual results could differ from the original estimates, requiring adjustments to these balances in future periods. The critical accounting estimates that affect the condensed consolidated financial statements and the judgments and assumptions used are consistent with those described in the MD&A in our ~~2021~~2022 Form 10-K.

Forward-Looking Statements This report and the other reports filed by us with the SEC from time to time, as well as statements incorporated by reference herein and related comments by our management, may include "forward-looking statements" within the meaning of the U.S. federal securities laws. Forward-looking statements are any statements other than statements of historical fact. Forward-looking statements represent our current judgment about possible future events and are often identified by words like “aim,” “anticipate,” “appears,” “approximately,” “believe,” “continue,” “could,” “designed,” “effect,” “estimate,” “evaluate,” “expect,” “forecast,” “goal,” “initiative,” “intend,” “may,” “objective,” “outlook,” “plan,” “potential,” “priorities,” “project,” “pursue,” “seek,” “should,” “target,” “when,” “will,” “would,” or the negative of any of those words or similar expressions. In making these statements, we rely on assumptions and analysis based on our experience and perception of historical trends, current conditions and expected future developments as well as other factors we consider appropriate under the circumstances. We believe these judgments are reasonable, but these statements are not guarantees of any future events or financial results, and our actual results may differ materially due to a variety of important factors, many of which are beyond our control. These factors, which may be revised or supplemented in subsequent reports we file with the SEC, include, among others, the following: (1) our ability to deliver new products, services, technologies and customer experiences in response to increased competition and changing consumer preferences in the automotive industry; (2) our ability to timely fund and introduce new and improved vehicle models, including EVs, that are able to attract a sufficient number of consumers; (3) our ability to profitably deliver a broad portfolio of EVs that will help drive consumer adoption; (4) the success of our current line of full-size SUVs and full-size pickup trucks; (5) our highly competitive industry, which has been historically characterized by excess manufacturing capacity and the use of incentives, and the introduction of new and improved vehicle models by our competitors; (6) the unique technological, operational, regulatory and competitive risks related to the

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timing and commercialization of AVs; (7) risks associated with climate change, including increased regulation of greenhouse gas emissions, our transition to EVs and the potential increased impacts of severe weather events; (8) global automobile market sales volume, which can be volatile; (9) inflationary pressures and persistently high prices and uncertain availability of raw materials and commodities used by us and our suppliers, and instability in logistics and related costs; (10) our business in China, which is subject to unique operational, competitive, regulatory and economic risks; (11) the success of our ongoing strategic business relationships and of our joint ventures, which we cannot operate solely for our benefit and over which we may have limited control; (12) the international scale and footprint of our operations, which exposes us to a variety of unique political, economic, competitive and regulatory risks, including the risk of changes in government leadership and laws (including labor, trade, tax and other laws), political

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uncertainty or instability and economic tensions between governments and changes in international trade policies, new barriers to entry and changes to or withdrawals from free trade agreements, changes in foreign exchange rates and interest rates, economic downturns in the countries in which we operate, differing local product preferences and product requirements, changes to and compliance with U.S. and foreign countries' export controls and economic sanctions, differing labor regulations, requirements and union relationships, differing dealer and franchise regulations and relationships, difficulties in obtaining financing in foreign countries, and public health crises, including the occurrence of a contagious disease or illness, such as the COVID-19 pandemic; (13) any significant disruption, including any work stoppages, at any of our manufacturing facilities; (14) the ability of our suppliers to deliver parts, systems and components without disruption and at such times to allow us to meet production schedules; (15) pandemics, epidemics, disease outbreaks and other public health crises, including the ~~ongoing~~ COVID-19 pandemic; (16) ~~the success of any restructurings or other cost reduction actions; (17)~~ the possibility that competitors may independently develop products and services similar to ours, or that our intellectual property rights are not sufficient to prevent competitors from developing or selling those products or services; ~~(18)~~(17) our ability to manage risks related to security breaches and other disruptions to our information technology systems and networked products, including connected vehicles and in-vehicle systems; ~~(19)~~(18) our ability to comply with increasingly complex, restrictive and punitive regulations relating to our enterprise data practices, including the collection, use, sharing and security of the Personal Identifiable Information of our customers, employees, or suppliers; ~~(20)~~(19) our ability to comply with extensive laws, regulations and policies applicable to our operations and products, including those relating to fuel economy, emissions and AVs; ~~(21)~~(20) costs and risks associated with litigation and government investigations; ~~(22)~~(21) the costs and effect on our reputation of product safety recalls and alleged defects in products and services; ~~(23)~~(22) any additional tax expense or ~~exposure; (24)~~exposure or failure to fully realize available tax incentives; (23) our continued ability to develop captive financing capability through GM Financial; and ~~(25)~~(24) any significant increase in our pension funding requirements. A further list and description of these risks, uncertainties and other factors can be found in our ~~2021~~2022 Form 10-K and our subsequent filings with the SEC.

We caution readers not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events or other factors, except where we are expressly required to do so by law.

* * * * * * *

Item 3. Quantitative and Qualitative Disclosures About Market Risk

There have been no significant changes in our exposure to market risk since December 31, ~~2021.~~2022. For further discussion on market risk, refer to Part II, Item 7A. of our ~~2021~~2022 Form 10-K.

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Item 4. Controls and Procedures

Disclosure Controls and Procedures We maintain disclosure controls and procedures designed to provide reasonable assurance that information required to be disclosed in reports filed under the Securities Exchange Act of 1934, as amended (Exchange Act), is recorded, processed, summarized and reported within the specified time periods and accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosures.

Our management, with the participation of our CEO and CFO, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) promulgated under the Exchange Act) as of March 31, ~~2022~~2023 as required by paragraph (b) of Rules 13a-15 or 15d-15. Based on this evaluation, our CEO and CFO concluded that our disclosure controls and ~~procedures~~ procedures were effective as of March 31, ~~2022.~~2023.

Changes in Internal Control over Financial ~~Reporti~~ngReporting There have not been any changes in our internal control over financial reporting during the three months ended March 31, ~~2022~~2023 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. However, due to the COVID-19 pandemic, we are monitoring our control environment with increased vigilance to ensure all increased risks are mitigated. For additional information refer to Part I, Item 1A. Risk Factors of our 2021 Form 10-K.

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PART II

Item 1. Legal Proceedings

~~The Michigan Department~~SEC regulations require us to disclose certain information about environmental proceedings if a governmental authority is a party to such proceedings and such proceedings involve potential monetary sanctions that we reasonably believe will exceed a stated threshold. Pursuant to the SEC regulations, the Company will use a threshold of ~~Environment, Great Lakes, and Energy (EGLE) issued three Violation Notices in June 2021, October 2021, and January 2022, alleging violations~~$1 million for purposes of ~~air emissions requirements at the Company's Saginaw, Michigan facility. In April 2022, EGLE proposed a settlement~~determining whether disclosure of the alleged violations that would include, among other items, payment of a civil penalty of approximately $1.0 million, enhanced emissions testing, and other corrective actions to address the alleged violations. The Companyany such proceedings is ~~still in settlement negotiations with EGLE.~~required.

The discussion under ~~"Litigation-Related Liability and Tax Administrative Matters" in~~ Note 1413 to our condensed consolidated financial statements is incorporated by reference into this Part II, Item 1.

* * * * * * *

Item 1A. Risk Factors

We face a number of significant risks and uncertainties in connection with our operations. Our business and the results of our operations and financial condition could be materially adversely affected by these risk factors. There have been no material changes to the Risk Factors disclosed in our ~~2021~~2022 Form 10-K.

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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Purchases of Equity Securities The following table summarizes our purchases of common stock in the three months ended March 31, ~~2022:~~2023:

Total Number of Shares Purchased(a)(b) Weighted Average Price Paid per Share Total Number of Shares
Purchased Under Announced Programs(b) Approximate Dollar Value of Shares That
May Yet be Purchased Under Announced Programs
January 1, 2022 through January 31, 2022 7,227 $ 62.98 — $3.3 billion
February 1, 2022 through February 28, 2022 2,324,296 $ 48.83 — $3.3 billion
March 1, 2022 through March 31, 2022 — $ — — $3.3 billion
Total 2,331,523 $ 48.87 —


	Total Number of Shares Purchased(a)(b)	Weighted Average Price Paid per Share(c)		Total Number of Shares Purchased Under Announced Programs(b)	Approximate Dollar Value of Shares That May Yet be Purchased Under Announced Programs
January 1, 2023 through January 31, 2023	22,216	$	33.97	—	$2.5 billion
February 1, 2023 through February 28, 2023	6,180,726	$	41.24	3,985,294	$2.3 billion
March 1, 2023 through March 31, 2023	5,276,241	$	38.06	5,276,241	$2.1 billion
Total	11,479,183	$	39.76	9,261,535

_______

(a)Shares purchased consist of shares delivered by employees or directors to us for the payment of taxes resulting from the issuance of common stock upon the vesting of RSUs and PSUs relating to compensation plans. Refer to our ~~2021~~2022 Form 10-K for additional details on employee stock incentive plans.

(b)In January 2017, we announced that our Board of Directors had authorized the purchase of up to $5.0 billion of our common stock with no expiration date. In August 2022, the Board of Directors increased the capacity to $5.0 billion from the $3.3 billion that remained as of June 30, 2022, with no expiration.

(c)The weighted-average price paid per share excludes broker commissions.

* * * * * * *

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Item 6. Exhibits

Exhibit Number

Exhibit Name

3.1

Restated Certificate of Incorporation of General Motors Company dated December 7, 2010, incorporated herein by reference to Exhibit 3.2 to the Current Report on Form 8-K of General Motors Company filed December 13, 2010

Incorporated by Reference

3.2

General Motors Company Amended and Restated Bylaws, as amended ~~August 17, 2021,~~April 20, 2023, incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K of General Motors Company filed ~~on August 23, 2021~~April 21, 2023

Incorporated by Reference

10.1*10.1†

~~Form of Performance Share Unit Award~~Fourth Amended and Restated 5-Year Revolving Credit Agreement ~~No.3 under the~~among General Motors Company, ~~2020 Long-Term Incentive Plan~~General Motors Financial Company, Inc., the subsidiary borrowers from time to time parties thereto, the several lenders from time to time parties thereto, JPMorgan Chase Bank, N.A., as administrative agent, and Citibank, N.A., as syndication agent, incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K of General Motors Company filed March 31, 2023

~~Filed Herewith~~Incorporated by Reference

10.2*10.2†

~~Form of Non-Qualified Stock Option Award~~Fifth Amended and Restated 3-Year Revolving Credit Agreement ~~No.2 under the~~among General Motors Company, ~~2020 Long-Term Incentive Plan~~General Motors Financial Company, Inc., the subsidiary borrowers from time to time parties thereto, the several lenders from time to time parties thereto, JPMorgan Chase Bank, N.A., as administrative agent, and Citibank, N.A., as syndication agent, incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K of General Motors Company filed March 31, 2023

~~Filed Herewith~~Incorporated by Reference

10.3†

Fifth Amended and Restated 364-Day Revolving Credit Agreement among General Motors Company, General Motors Financial Company, Inc., the subsidiary borrowers from time to time parties thereto, the several lenders from time to time parties thereto, JPMorgan Chase Bank, N.A., as administrative agent, and Citibank, N.A., as syndication agent, incorporated by reference to Exhibit 10.3 to the Current Report on Form 8-K of General Motors Company filed March 31, 2023

Incorporated by Reference

31.1

Section 302 Certification of the Chief Executive Officer

Filed Herewith

31.2

Section 302 Certification of the Chief Financial Officer

Filed Herewith

Certification Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Furnished with this Report

101

The following financial information from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, ~~2022,~~2023, formatted in Inline Extensible Business Reporting Language (iXBRL) includes: (i) the Condensed Consolidated Income Statements, (ii) the Condensed Consolidated Statements of Comprehensive Income, (iii) the Condensed Consolidated Balance Sheets, (iv) the Condensed Consolidated Statements of Cash Flows, (v) the Condensed Consolidated Statements of Equity and (vi) Notes to the Condensed Consolidated Financial Statements

Filed Herewith

104

The cover page from the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, ~~2022,~~2023, formatted as Inline XBRL and contained in Exhibit 101

Filed Herewith

~~_________~~


*_______ † Portions of this exhibit have been omitted pursuant to Rule 601(b)(10) of Regulation S-K. The omitted information is not material and would likely cause competitive harm to the registrant if publicly disclosed.			~~Management contracts or compensatory plans and arrangements.~~

* * * * * * *

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

GENERAL MOTORS COMPANY (Registrant)

By:

/s/ CHRISTOPHER T. HATTO

Christopher T. Hatto, Vice President, Global Business Solutions and Chief Accounting Officer

Date:

April ~~27, 2022~~25, 2023

4446



	Cruise Restricted Stock Units				Cruise Stock Options
	Shares (in millions)	Weighted-Average Grant Date Fair Value		Weighted-Average Remaining Contractual Term in Years	Shares (in millions)	Weighted-Average Grant Date Fair Value		Weighted-Average Remaining Contractual Term in Years

Units outstanding at January 1, 2022	66.2	$	18.82	8.1	23.8	$	7.07	2.0
Granted	28.7	$	27.49		2.9	$	15.77
Settled or exercised	—	$	—		—	$	—
Forfeited or expired	(2.9)	$	23.67		—	$	—
Units outstanding at March 31, 2022(a)	92.0	$	29.00	1.1	26.7	$	18.88	2.0


	Total Number of Shares Purchased(a)(b)	Weighted Average Price Paid per Share		Total Number of Shares Purchased Under Announced Programs(b)	Approximate Dollar Value of Shares That May Yet be Purchased Under Announced Programs
January 1, 2022 through January 31, 2022	7,227	$	62.98	—	$3.3 billion
February 1, 2022 through February 28, 2022	2,324,296	$	48.83	—	$3.3 billion
March 1, 2022 through March 31, 2022	—	$	—	—	$3.3 billion
Total	2,331,523	$	48.87	—