GM - Earnings call transcript Q4 2024 | General Motors Company

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to the General Motors Company Fourth Quarter and Calendar Year 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded Tuesday, January 28, 2025. I would now like to turn the conference over to Ashish Kohli, GM's Vice President of Investor Relations.

Ashish Kohli

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

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

We webcast. also are broadcasting this call via

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

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

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

Mary Barra

Thanks, I'd Ashish, by another employees, dealers to us suppliers thanking outstanding our begin deliver and for helping morning. and year. like good

this XXXX, of new be we SUVs execution on I full-size on that pickups, an call, and said choice ago we that stressed customers, And industry-leading and focused offer portfolio expanding the year would and given profitability. A including I about EVs. redesigned optimistic will were we

were grew fleet from that the by U.S. the and proud ourselves distanced We pricing share, year we total I'm year. grew We industry's to and sales. our retail, full #X and X% say revenue pressures. inventory in last in our incentives market

and adjusted led growing compelling cash diluted profit vehicles vehicles and share automotive segments, And and record to produced production. combination year record positive XXX,XXX in over strong became we high and the we in of of our record the portfolio America. course as business, EV our volume wholesaled growing fourth our free variable adjusted. the EPS flow We North EBIT-adjusted, This In and doubled discipline market execution scaled quarter.

balance to We business sheet. invested and we consistently a to allocate our the we and improved forward, At capital in the drive time, continue same balanced manner.

strong and up Our employees earned share our million. of more record U.S. person, more team bonuses, performance $XX,XXX Investors also of hourly our of success. and plan. earned in outstanding, all profit with industry's fewer extra the team employees billion average to totaling again global sharing pleased sharing XX% in I'm a and our the That's owners shares are reached we to X for a $XXX than than equal pay payout to we year earned highest months that member. salary a per total X return, than UAW-represented goal ended GM once ahead

addressed working and also China, challenges the JV resolve. with have market to reducing building products, we year, demand. rightsizing to dealer better inventory we new the businesses, been in partners In the Throughout drive by launching with performance our

quarter for fourth before are equity and costs. making positive reported progress income the We restructuring good

sustainably make about To year improve this capacity will they initiatives of profitable, or restructuring wide levels be to year-over-year and that reducing within results utilization implementing of operate a SGM better. XX% range include

finalizing We with partner. the process of are in details our

its has to capital GM. without believe the SGM we complete additional Importantly, from resources restructuring

at development robotaxi funding Cruise. stopped also we know, you As

personal a that have strategy driving plan We refocus restructuring on vehicles. proposed autonomous our will

this finalizing small We rate forward expect quarter. an on Cruise number development. robotaxi in And $X to run to restructuring basis by we the annualized plan we see savings shares of acquiring a about own don't ending billion look the of later

EVs in again [indiscernible] ICE drive will The XXXX. once have our in vehicles momentum and we both

outgoing Yukon ATPs than ATX full-size and supporting the even launched redesigned models, For year all-new SUVs last the our example, the late refined Chevrolet exteriors, like to thanks new GMC stronger that Ultimate. models interiors we are and GMC

of GMC midsized of better to and like include and to with volume profitability. great Acadia. the highest Chevrolet pair Chevrolet year efficiency ATPs compact nameplates drive designs new higher our discipline examples ICE drive full Equinox, which to and a Traverse bold strategy our SUVs, some capital our They have also are We of

Day, the V ongoing Investor best-selling improvements the SUV also success year, full XX to and these of which Last at EBIT interior, year with Cadillac refined well Mobility. had shared sales positioned. very models Blackwing the according exterior luxury and new Mark XXXX, and of its we're Cadillac in Global is range stunning Escalade electric S&P seeing now As our LYRIQ, thanks its to vehicles. high-performance the country's is Series the on midsized percentage some best point since

been market. IQ, This year, VISTIQ in and Escalade GM the adoption luxury to has higher segments. we expect grow EV EV OPTIQ the of luxury further share

these guided innovation. continue advanced customer-focused and by We with out stand are the new we'll their customer, technology and And being Cadillacs designs, to be. beautiful

just systems come now with allowing are Dolby detail vehicle-to-home powershift package. home Atmos outages and a is depth, in the capability, which a customer's equipment launches clarity few a music. scaling Here power spring, to OPTIQ, will and equipped audio The to the which the be Cadillacs in All using GM favorite examples. X-passenger energy VISTIQ, and them reveal offer first charger Cadillac now during vehicle-to-home with AKG EVs our more the that

on cruise the on new the with The new an of of be control allows out attentive engage and the the first roll will a VISTIQ, roads to GM to travel a ADAS and miles feature Cadillac light builds millions on feature with lane system wheel. that And brand driver adaptive centering. hand

its it's its in range, comfort Then really and IQ. With presence, there's Cadillac class performance, the of a Escalade own. technology,

the vehicle Escalade One IQs. began York noticing. last Since more of year, we've area are production ever says has than X,XXX impressive decades dealers, Customers who driven. our late of other sold with Cadillac New he experience it's franchises, has luxury most

for Cruise also a year be all brands. of of growth rapid our Super will XXXX across

to the how to a strategy with setting This make Our are continuously expand high-margin capabilities from refine for it customer-focused streams Super indispensable. subscriptions. its is revenue Cruise we stage is recurring and

we lane of and roughly miles new This of change make about hands-free expect to helped XXX,XXX customers of Super year, its of XX% size. and Cruise Super Cruise has network our hundreds towing. This automatic thousands Since fleet features Super double equipped to we Cruise, added our regular in roughly launched like we roads have users. introduced

is important that opportunity, a revenue trial. Last increasingly becoming we subscription now of roughly Subscription rates X-year of vehicles. base Super the first Cruise year, their attach our XX% have of saw part an completed customers off about XX,XXX of

we vehicles double $X approach This year, additional than revenue their we billion to X and about Cruise. target in expect more from total XX,XXX an revenue. will trial period, end subscription years, Within annual to Super

you forward. more the of ahead many These we opportunities are and forward details we as few go with just us, look exciting of to a sharing

the like Hyundai. we're mention over I'd Paul, call turn the I to Before projects to pursuing with

and moving more agreements global has very to that nature, move Hyundai teams targeting As designed our will faster, areas be lower The business, in details specific and and cost are are of collaborations several help product soon. shared, efficient. to segments the be first of and us the become capital finalize purchasing sharing more quickly we'll

to I uncertainty be seen regulation. the trade would like around will and policy, public how It evolve. address also things remains to

our changes. account not in remarks does guidance policy his So Paul share future take into XXXX will

and stressed the have we in advanced We the sector technologies. American and conversations, And strong leadership both Congress manufacturing administration. proactive importance in have been of a with our

dialogue. balance we how and right not that to the continuing regulations like consider use It's with the of share look We We team strengthen, to President forward believe to lot harm will to they policy and on appreciated manufacturers common and important strike President clear issues. that ways in the his a wants have GM. ground, work domestic these we the as

market EVs And logistics without chain a vehicles cost. cost happens that we large With possible do these broad on have growing What our so deep we of as very low these and capital tariffs, spend to we'll clarity. plants respect are impacts. agile no fronts, efficiently are and to prepared are won't working we as both is execute supply we near-term network ICE Many portfolio of across amount a be that mitigate possible. of or Whatever and share. assembly are and actions

financial our like we'll and Thank results With and to XXXX Q&A. that, walk to to you you. invite then Paul through guidance, I'd move

Paul Jacobson

this GM. financial of Mary, you, all morning I we you another Thank for joining strong us year as and results appreciate summarize

shareholders. Our a lower full high to $XX.XX November end the EPS diluted of in was adjusted, strong by partially $XX.X excess year-over-year as resulted to share of we of particularly capital guided October we range XX% driven a up at the billion significantly and year to and by in continue EBIT-adjusted return December. This aided count

of $XXX full $XX,XXX. the in our X% the revenue X% below average a year incentive X industry starting percentage rise X year improved, increased than year, at as to ATPs the wholesale the more ATP first our above volumes and ending average. with point billion steadily and in by industry incentives We Throughout percentage lowest levels the nearly the and quarter points below a

incentives pricing share. to continues separate growing disciplined of from time, strategy Our market of us the peers. at are our And we same and most

for the the a of since in Our XXXX. of highest ended year at quarter fourth and excluding share note XXXX, on year impacts was full pandemic the the the to U.S. XX XX.X%, we in market up points basis the XX.X% the positive quarter, fourth

appropriately driven ICE sales end year-end performance to Our production days, and strong balancing ended of EV by to portfolio. XX- at was dealer our ICE target a refreshed low demand. at fueled growth our strong the inventory XX and XX-day by

EVs. so paid see on we we progress deliveries had this In more and the by and third year-end wholesaled strategy than of inventory that Recall we products. successfully to XXX,XXX dealer off, quarter, XXXX, XXX experience customers EV to our significant opportunity delivered the as have at making also days our XX rose. EV This would are we end the days XXX,XXX of And EVs and reduced units. around

through launch with scale and the a Sierra and efficiencies costs, improving on We Mary IQ the our in including EV costs scale cell production, higher improved manufacturing of lower material EV big profit profitability. from has performance Escalade company portfolio variable As highlighted, fourth and of been Cadillac continued achieved of our quarter from EV. the positive the expansion EVs focus and

we achieve a to margin, our work progress. of EBIT but more good There's in goal believe positive

Equinox has For just EV seen since in instance, its $X,XXX launch quarter in profit a improvement variable second last of year. the the

allocation. like I'd capital to Next, discuss

elements: maintaining business, to strong our in capital shareholders. balance returning our excess to sheet X continue key and investing a We balance

we back appropriate is are of that the efficiently growth. investing First, capital into believe profitable to business the support amount long-term we

similar billion spend to battery forecasted JV $XX XXXX, Our at capital billion. investments, including in remained $XX year-over-year

in paid Second, notes $XXX the million XXXX. off their fourth senior we ahead of quarter of in maturity

have $X.XX another year. billion later We this maturing

opportunities refinancing extinguishment as year. debt throughout will We we or the assess progress

during billion $XX cash and cash of Third, full returned amount adjusted year or to flow approximately XX% $X.X flow we capital billion. free this We XXXX. generated shareholders nearly substantial free of returned our a of auto

million XX additional an retiring ASR the completed shares. we quarter, fourth the In

the from average repurchased in also the achieving of quarter share a share. count count the ending $XX.XX with earlier outstanding XX XXX billion share than of below This We early at scheduled. million, million our us shares goal an market open of an reduce X year to our shares in year last during resulted

basis, shares, the represents diluted since of the XXXX X.XX compared a decrease XX% this end and of of a XXXX. billion to On decrease end of a XX%

shareholders Moving our further to forward, we expect the to continue reducing share. returning capital excess and

into company XX% and $XX billion results. pricing. higher in EBIT-adjusted $X.X diluted EPS revenue X.X% up Getting fourth by the driven consistent quarter margins year-over-year Total in adjusted. We EBIT-adjusted, wholesales an $X.XX achieved billion, and was

marketing realized higher fixed lower which partially engineering was The $X our $XXX we Compared billion of rationalization and net remainder cost program. $XXX spend to reduction by realized million the was offset lower in across some and automotive XXXX, depreciation end the million costs. initiatives, through in amortization. Completed earlier-stage of

the in which valuation ended EV We our $X.X small A of the billion, on fourth quick a a inventory reduction year quarter. update balance allowances. with includes

EV further be we We and XXXX, as pace through will on but demand. magnitude expect the reductions move dependent

spike million of EBIT We automotive quarter, billion, the fourth the flow billion $XXX $X.X benefited inventory cash achieved North in quarter of year-over-year free up primarily absence We year-over-year. of up quarter adjusted $X.X driven fourth adjustments. $XXX EBIT-adjusted million fourth XXXX's from performance. during by delivered America

fixed the warranty higher costs. and program Additionally, to labor cost contributed offsetting

on remain disciplined we faced from headwind a incentives. While full-size pricing, we slight truck

of I XX% X.X%, to margin a our American to within emphasize to take moment the targeted X% full want strong well range. year North

We pricing inventory with well our along on levels. are cost, disciplined product launches, executing and being on

factor broad results. key a and driving portfolio product these Our is strong refreshed

including items, quarter, and the of achieved fourth In breach discrete margin This roughly margin which a by percentage X.X%. we X.X impacted certain points. legal warranty of included reserves,

we breach discuss of I'd targeting warranty opportunity know now accrual, costs, expense. our we include to our initial continued like campaigns to our warranty and warranty Despite the product have recall improve success, by exposure. warranty the which higher aggressively results an

time, is the At priority always as is issues they the focusing the availability. on cause parts arise. The tackle same team our of actively customers root to working first

starts of industry. area commitment we leader Our our with quality are the an a products, in where initial the

of achieved a the in with U.S. reduction since over significant We've XX% decrease in XXXX. claims a

than However, more labor in driven this benefit increase offset period. been the parts cost repair and XXX% the same both over by by has a of inflation

remain committed pressures and we strict finding to landscape. regulatory to assured, ways and mitigate inflationary navigate legal Rest the

reduce We on time. that warranty are focus costs driving costs quality optimistic and over our our will intense repair down improving

excluding GM the inventories great along tight effective America in and helped a The cost of has $XXX on cost quarter. with They have and the controls sequentially of the of from competitiveness, China strong over charge. income fourth focusing end China XX% International inventory execution done delivered down SGM's have of increased million sales reductions enhancing positive which versus XX% equity fourth EBIT-adjusted with implemented quarter job team third quarter in restructuring East XXXX. by the Middle million, driven South $XX and product been reducing

to in [indiscernible] $X.X item We joint in to far from to It's China. is while a actions cash has our note related have important these this not to venture sufficient GM as these income, charges impairment special so cover to are approximately require half taken capital any costs. that expected the of restructuring auto an we China connected recorded the various billion rest

with option in believe along NEV profitability product target these us a help of China actions, at launch business achieve XXXX. XXXX ensures least per that product comprehensive plan program, one will returning in the to We our

guidance a lease financing GM lower at Financial [indiscernible] net increased Higher pay and Financial's top $X.X $XXX they driven billion origination expense dividends EBT-adjusted of termination year offset year of volume. range, of was year-over-year return at billion profitability was strong quarter and provision GM. had the consistent by also loan their EBT-adjusted GM higher full capital million. revenue $X.X gains GM. Fourth to and

Cruise expenses, $XXX in $XXX quarter, from items for the charge, in restructuring special million million the down the XXXX. were excluding

spent and autonomous our These in a annual classified Cruise on we said, relative led billion Mary in quarter, lead in driving the item as refocused a $XXX we million As fourth will $X believe special billion run was strategy XXXX. to our decisions savings approximately investment the efficiencies rate to charge X/X to which based. $X.X a restructuring with being cash

this Cruise North later year, impact the plan we This America to basis segment. year. expenditures Additionally, North the XX our this around by in points America for margin employees will include our

the automotive previously. to our by increase still as auto within However, costs X% our fixed cash flow range. we reduce to remain XX% expect will also adjusted our and excluded was cash It Cruise used

Moving to our XXXX guidance.

adjusted range, free We in automotive and to range. range $XX in to diluted the share billion $XX billion the $XX.X $XX.X billion $XX to to expect billion EBIT-adjusted the $XX be in per adjusted flow EPS cash

our appropriately note administration, We tax by impact including regulation guidance the anticipate policy stemming a changes and America both as volume to levels. volume decline some changes. North tariffs, the inventory does not ICE we account in in that new important balance headwinds of do for mix, [indiscernible] or reform It's from future wholesale modest in other

ability EV higher strong a be volume. drive by partially our diverse expansion and share We're However, robust offset ICE by this to lineup in product portfolio EVs. sales will through of our strategically complemented optimistic market

year-over-year a to similar are U.S. Additionally, planning XXXX. for industry we

higher X% assuming capture terms year-over-year of a X.X% potentially in in to a ATPs. North or incentives In moderation to we're decline pricing, of America

believe years the way as moment, have prudent our we plan budget are it's a not we seeing in to past. at While we this

profitability our focus fixed vehicle target. reductions. cell Offsetting and cost headwinds, of predicted improvements year-over-year and to $X cost we these billion on $X the anticipate on absorption XXX,XXX based is of wholesales continued from and scale, EV improvement come at low is around EBIT a end units to This billion

assumption fully employees savings Cruise our around the that of discussed. GM million is midyear. $X be Cruise, guidance includes will on billion by based we our Regarding This $XXX into integrated previously annual

and variable amortization improvements to mainly are due other depreciation headwinds offset which We the of profitability than and expected is be and Cruise costs higher anticipate logistics, outside and favorable. to to as such EV more from costs commodities labor costs. This

what outside For GM business a International, to for of be profitable similar China and in was full equity expect we delivered tailwind GM restructuring should from International are XXXX. the year. targeting income the China

For GM for mix largely the $X.X stable profile reflecting asset risk environment. credit in $X range, EBT-adjusted to return Financial, we in to economic and the targeted billion expect the billion a be

increase portfolios. driven assets by an earning lease expect and in both We loan

adjusted are flow. another forecasting We automotive free year of cash robust

anticipate from previously to the However, working the XXXX the from year-over-year of $X capital of dealer notably benefits inclusion Cruise liabilities, billion for timing nonrepeat restocking, $X accrued spend. realized billion warranty of we headwinds in in and payments of range the primarily and inventory

similar year-over-year range, Capital and spending billion to battery is $XX to be investments. in the $XX expected billion JV including

to continue ICE EV ICE between flexibility to and our into preferences capabilities to portfolio our maintain manufacturing powertrains. adapt strategically We on to and consumer spend build agility

diluted market EPS share of future year which weighted full any billion impact approximately excludes Our purchases. count open the X shares, of assumes guidance average

every been on in pivotal performance execution, strong GM want In dedication we closing, in team are a support year focus my attitude continue and to adaptability dynamic and success XXXX. efforts another believe challenging towards discipline factors going And successfully to our in promising to navigate enabled landscape. and us key I hard to these A financial our express driving work member. XXXX. sincere to Their relentless have

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

Operator

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

Dan Levy

if on I could magnitude. double-click the could I'm the with And guidance. maybe if volume on a specifically, we sense to wanted talking about the the start headwind. But we know you're I question wondering assumptions. of get

forecasters fourth America what type in comment nonrepeat a your of know a production just lot sense you It really inventory there And of SAAR North any then of that? is or share. you you that give X% can share build. Maybe data to third-party Is have was us down of a the The if just could the specifically XXXX. strong I for on assumptions have. sustainability maybe just quarter.

Paul Jacobson

the So Dan, thanks for question.

little a garbled the end. getting are You at

connection, but SAAR the that's saw particularly think the that the then the asking I sustainable think and year, share half in uplift we the at for is about 'XX were assumptions I how you fourth back that. quarter, of

we're at XXXX. to XXXX looking -- to So SAAR on similar be Q a basis to or fairly

there -- there of pull we in EV-driven the is in that speculation or think inauguration. month that I of whether some a was out demand consumer-driven the big saw just ahead ahead December,

think January as of a I adopting the bit in wait been one and cetera. had that. comments morning this weather, see has things we're of the et mentioned California, little really in both about fires on is a noisy Mary the

there So to big whether a was forward. glean tough it's pull

demand year. last of to got we've So to similar be pretty projected

think proud in years, for to the to of as side, share team. and share been And not really EVs as the On have we tremendous few I EVs, a was opportunity done said ICE, saw grow ramp They and exclusive. it the up we job. mutually we've able have a

that. has doing think I the And team been

XXXX. a since you seen exclude that if we at share COVID haven't are We level

I results. think that's tremendous

to But think I continue to towards that. going work we're going not stop there. the to is team

or having Going we from restocking. an -- opportunity big not pretty forward, were think ICE much impacts I we as projecting had some

within XX-day we've build in that, demand of than of result obviously is. to that XQ. kind experienced to saw where we to of But pretty I similar outlined surge we're think kind going wait than XX- the to that. demand and a to But have think that see little a watch of 'XX window as year-end 'XX. I we're do in at we bit a inventory opportunity an We that going in environment what other

Dan Levy

Great.

has we a in bit some a But all out. policy waiting I reversing of how In the much give perhaps plays spend in shifts As thinking tax question. us you're pull a President see reversal amid credits, toward the change a EV in can can expect how how the about said Trump as everything EPA. on, you he's allocation EV some mandate sense this environment, to know potential back overhead strategy change resource how a just policy? you're of you follow-up,

Mary Barra

and Orion share over I with our the to we demand think few mindful like of make LG. like what the Well, EVs seen the us years very of last you've third process consumer we're be is in selling that plant and decisions for did

make So we it to as with we're going EVs grow. would to look capital never continue line. We a how decisions like appropriate going to are to that be be at our straight expect

appropriately to going to capital our deploy ICE We're portfolio. also

in portfolio I think we have the Motors General had has strongest decades.

have that well. little But as market a bias think response there. the I with the seeing We in we're

going we're consumer continue again, we to and EV, So by to ICE to efficient guided both be deploy as demand. very capital

Operator

Our next Emmanuel Research. question with comes from Wolfe Rosner

Emmanuel Rosner

to about basis in extent, you My look a items. some XXXX. margin bit Can exit LC the XXX terms comment of I you rate I I like and -- first or of what you this bridge strike and and investors XX% X% mentioned in higher of on at sort quarter the XXXX? know the just onetime-type last would rate performance RV large in points margin. exit towards had question may like a quarter, charges the the year guess, think of ATPs expected that have the in Were and back on to what come

Paul Jacobson

the on not consumption quarter. in XX-K. Emmanuel, fourth remarks the in X recorded warranty will That question. about in a which specific say oil One We around was be policy. the we were there legal I'm that Yes. and surprised issues really case, did this our settlement

see. little continued bit see the legal [indiscernible] we've based of the we we and regulatory just of trends the get a some about talked second in that then to ahead on that as breach And environment. to We're is trying

think X I a QX items and we million -- about. That the little talked line XQ. X at of remember was puts quarter. as we had in us deliver were to a that out, That the seasonality. of in with we than expected bit of September That in $XXX kind more also and disclosed normal I'd forward that Those QX. vehicles [indiscernible] of fourth pull point in point benefited we're about themselves

And then in of normal a fewer holiday and lastly, we generally because that had got at the seasonality. We've just Carolina community that floods the XX Remember, there. schedule. lost on couple based of production and we a North the days days Arlington tragedy that impacted supplier

not I'm worked So up overly it. about

you look events, think of pretty I good. I some one-off when those at think we're

some The thing know really we've wasn't I in It those that questions. was mix that want EV really one significantly to but impact, say outweighed pressures I by just highlighted. I a it have XQ. inbound does downward do because factor a meaningful received

that So forward hopefully going more for confidence gives bit XXXX. the construct a little in

Emmanuel Rosner

this color. I appreciate

around allocation. Second question capital is

CapEx sort And hear to to [indiscernible]. restate capital like other it considerable based would returned again actions, and the good shareholders. leave was guided amount some of capital the seems it of So on allocation you it

buybacks. your probably I of you're through think authorization most existing for

So what would next the here? be step

Mary Barra

thanks expect free flow. of of generation that another free we strong strong in we the Emmanuel, question. really flow XXXX, proud for the We're cash had Well, and cash year very

our capital follow continue to going to policy. allocation We're

say look we've should can year I the this following the on and phase, move or framework we'll But So we'll as you allocation to done done capital in working we provide be us the updates with next XXXX. forward. as Board

Operator

with Our next UBS. from question Spak comes Joe

Joseph Spak

Just the the looked quarter and one on through there the then yet quarter really a the was of quarter, that? when and the pricing weighed pricing headwind. one. bigger release, quick data that low the like the slight on still accelerating or GM and -- Was you I are year-over-year sales strong, accrual one a in in anything picture it factor showed think incentive Incentives are things some quarter. any

EV like to And related XXXX. on do that that also, maybe expect X.X% the -- some pressure is including to on include portfolio? overall the EVs? you X% Does pricing -- And for pricing

Paul Jacobson

in I inventory for of there is the interplay little in Yes. year-over-year Joe, think on thanks for you What But is question. is noise right. the incentives. of say bit a the everything mentioned accrual that sort would commercially, I the

and year It we the for pricing and in fourth was continue pricing. a forward strong expect that board across in quarter, demand strong going to the

down haircut that, the the we've a prior way years. in X.X%, bit For to X% little from you'll that's notice

I statement little bit some their down think inventory higher competitors as balances. a that's we expect stability a that more worked of our have

but we our forward of necessarily that expectations, if that guide can we market. it's we and the see run way how expect the year a of at we I So to X% how business just bit but going a adjust It's little but of you, we is would more the kind look a stability, business so not an assumption. indication X.X%, remind not down in we planning the necessarily commercial

been said, has good. the pricing January, I Like

little cautious so noisy. In little Incentives because was marketplace down we a the and think January bit. fact, data much noise we're being just bit. a were we're smooth until from so -- a just little more bit up But I were just ATPs there's get

Joseph Spak

Okay. anything you're not And I policy. know going prudence without just back to do to going here.

which produced et in across especially profitability North that are know just just cetera? shifting vehicles little between we full-size plants, have mix of any You're going about have America I some footprint. are us careful your and and the production I'm in mean could but sort the more the on showed curious of spend on there your bit you capital tariffs, if a Tennessee, near-term actions was minute take flexibility about about to ICE, because flexibility in mind. talking evaluation a wondering EV you I if you

Mary Barra

been in United a trucks Mexico it's Joe, in perspective, Yes, in a scenarios. and multiple question. good and Canada from do Mexico we've studying But we And build the States.

in United capacity we to so States the that. of some have And the shift

trucks and globally, sell where at look the so also being international we are We can markets from. sourced

So there's if either on do perspective are or to minimize on Canada the impact can tariffs we that plays Mexico. there that

conversations some we having things tariffs. around of indicated pull. President avoid that is take working levers the the we're administration encouraged and immigration planning specifically for, has and the several to doing and that necessary that that looking to Mexico We're other are the have can Trump steps they But

Operator

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

John Murphy

of you energy Sorry your to so topic where just [indiscernible] of where baseline the understand not Trump in to unleash the have I you going other to that stay then interpretation year to obviously, do the assuming by to how on that policy. through mean policy mean there? and California your Was ratchets XXX% But CARB's your going execute And you're states? EVs of comply volume waiver is essentially mundane with on to operate the XXXX. starting doesn't up what canceled and are ACCX. American and change. CARB's understanding next you're can't because XX% they I get the trying forward just ACCX executive XX% is

Mary Barra

Yes.

the at. Trump not happening make before is a President that multiple to changes, from message the are where that got anything states the we've is CARB environment Our sure is today's what's administration even just customer perspective EV as to and across changed, requirements well. stringency Frankly, as is

state engaging been we've the level. at And

level. Our the been at state dealers have engaging

on a there's amount so that. tremendous of work And in going

be I what specifically order, done. think some to executive As it still through policy to has needs more work relates that there's happened

penalty So carefully. we a sure watching can and make comply in not we're we're which situation,

It's watching and the directional federal disagree the change but don't not and it's that just yet, completely we're done coming. state our you providing I at level level. input I think But -- with there's

John Murphy

I want right, have Mary, executive in that to put that. are guys right how the order? that understanding, that I that because place But would in operating? you now XX% actually understand your place the is is make at just sure moment, Is been not of requirement

Mary Barra

different is legal Actually, think assume to there's direction. no, legislative with clear moment. or at now organizations on because by or policy have changes as that, that. We're gone an think don't I But that precise align very this I manufacturer can we auto that can the

John Murphy

Yes, very uncertain.

lot commitment way and savings, still Obviously, to you're level into a sort a on out Cruise and quickly Are Or on X [ but of at Mary, the money given costs across being are after some level to X your poured one, a is good you lot from the level company, this might and the last moment? an one going the that that own and that Just the ADAS ultimately and you're so there buy commitment. ] XX potential still there's spending you're getting think you build? go internal X autonomy. to on just X X developing need having of of

Mary Barra

We do there's John, And have what from capability General perspective a even Motors. much artificial Well, inside built I so we we intelligence move an saw question. and great with how of it's forward. yesterday, happening think

with of Obviously, what Cruise that that, our work to strengthen can aspects be would we're with working also There we may execute on plan partners we that do. much strategic of this.

think for the think continue we autonomy. in X that game-changing our so but level customer And a maintain and the landscape to that be still with is And we want strong we leadership the we're as because relationship leaders possible, going to do industry. to this to capital evaluate also efficiently position

Operator

comes Jonas Our with from Morgan next Stanley. question Adam

Adam Jonas

I line to just follow questioning wanted autonomy. of around on up

had vehicles moving and training XXXX. Super moving -- road, from said the and or end-to-end double foundation on approach with And in foundation data XXX,XXX I enabled Cruise your that think a massive to you to expect you're a sets. that you you to

you how with to, alluded You Can your spending you costs? partners. strategic change moving approach to us might Mary, compute how tell working end-to-end

allocating XX elaborate you're I capital mean over that the bottom or maybe think little too, the that what resonates months? further but line how next a on to might XX or

are And then also I vehicles. assume ICE those and units of XXX,XXX -- most

So any answer data for vehicles from collecting EV versus completely significance nonsoftware-defined kind architecture your you if or include, is can your difference, of vehicles there training? of new will, architecture you if ICE disadvantage, I'm in wondering

Mary Barra

Well, just question, -- thanks, last collect Adam. information. And from the can we

Of General we sure course, to within that make data rules customers' we're all treat following policy that appropriately. appropriate Motors guidelines and the have we

really where anonymize we proud but But to of like features we are [indiscernible] the fact to with has. safety leverage Cruise And we with it only some improve can no data we're not and our have the that one and the the record that improve performance else safety. Super

to is the at we're in Super are beyond. year. continue, driver And to yet our going improvement that incorporate to we as we Cruise level can those. on execute technology X X, getting continue that a for assist Cruise able to if coming I We're and from we this going to think something I an mentioned accelerate have plan great plus level talent and build

When we XX our about -- in talk XX to forecast, for you asked next the months.

$X the that we robotaxi within of annualized we kind part as what from need a is that of we'll of we spend and captures run not savings rate, to we on of the have what an billion kind budget. see perspective spend that think of shared I think compute operating pursuing from

in going and course, So perspective there's space that with business saw change because as we it to to we be customer changes dramatic going continue a now. that's But yesterday, the committed I the we're do that of and evaluate actually to seize we're so this to Anything the we well. mentioned profile think of a right happening such for that more spend, opportunity. do much as efficient has we impact to it experience remain [indiscernible] margin from the better

Adam Jonas

have Just as invested addressed place you've capacity experience proactively, and market, a with recent in does the capital, in Despite still on billions the and have of challenges many that IP decades partners. your people lots GM of you follow-up in of China. JV

your in and or GM long capability? existing capacity accurately. open for partners America, to has the U.S. existing the participating even see of as they in I'm Chinese scope to onshore if new make using foreign products help Trump access to you distribution paraphrasing firms gain Do President been as your U.S. kind

XX that given relationships you'd decades so how see in that or if in built and to want that your just longer X approach of the market the not but relevant months, maybe next there. term, experience I you've

Mary Barra

Yes. on design, of said a playing is win what et loyalty, products, technology, and let always give field the cetera. [indiscernible] compete across the I've us and the strength board our Adam, based level us on broadly

now what's right with happening think close that subsidies playing occurring, happening to and I the what's not around field. the globe overcapacity are any in a the and we're level China

year, think and we last ICE the share. grew also opportunity, I EV both mentioned have as we So we

good right focused our America. where capacity what's because leveraging for that And I a That's term we're think have in that's of doing industry. so long I the the of going we stay job North think to we're

because think vehicle I the raw is we where on all where where the is coming for the have battery materials, to is where the from assembly, security IP research done, and is parts, final of chain mentioned as not national from that in including I to supply but get technology country an all also from understanding developed a focused but it's very the of media only security. perspective, in auto not development spots, relates as earlier manufacturing lot some this today an economic technology, my important it for only

factor right our the So But I General on with grow. think you we Motors and those all in. have issues now, opportunities I'm to leveraging capacity to that focused have

Operator

comes Our Evercore. next question with from Chris McNally

Chris McNally

Yes.

I Just it's That's go EV low billion question's guide to of range if in policy. -- the sort that the you XXX,XXX assuming units for made change XXX,XXX the the of the on quo. clear no the front, billion, through seems mean drivers around clear. is you just status production particularly it units, what then are the $X it Paul, $X already? or still end versus Could policy, wholesale specific

Paul Jacobson

Yes. Chris. Thanks,

scale back we that. the short term and the and in to 'XX, So important journey most vehicle -- improvements we when after battery first highlighted of in we cost we starting cost that in then improvements profitability, to medium towards kick talked driver other November being talked about the about

our saw the Since profit growth The trajectory about volume and bit that XXX,XXX we talking XXX,XXX realization the of below little therefore and XXX,XXX where disclosure coming in throughout the lagged to there. certainly units XXXX, positive. in a is touch we so benefits came a just achieved and variable what were and slower -- and scale but still in

XXX,XXX to $X of months et that's the cetera. up on vehicle can a still bit would billion we've particularly, where year. richer think of IQ, year low be picked it's So continuing seen savings last though volume than with we $X X that is the thought to than get share a in based EVs, over Escalade what mix units, lower throughout We we with and ago improvement, we little billion end deliver certainly we more even and last, think the the a on we good trajectory as

So to going continue we're that. forward, going to watch

call, tax the et what consumer lot There's what of many a to there. to As cetera. people out parts happens have here happens credits, IRA, moving asked on

we even about IRA What tariffs, talking have can make of is I multiple got would moves. anticipate on, that playbooks or those some whether we we've say working we're that been respond or sure

very those can of and Some with we be very are low cost, flexible them.

bigger and and are as mentioned, LGS Some of them like bigger deals transaction Mary transactions the [indiscernible]. with

are infinite respond got didn't reason the quo The and get We've policy, to there able to in ways on be want to into guidance. to our permutations is guided because that. advocacy to really we that we status

why is done we've it. this So

place. do, and things American actor think on we're in a think in the Congress American And with administration to plans got what continuing we've space. assured, rest jobs right I which But we innovation. is preserve that we're the proactively preserve and to work with are good And

Chris McNally

the is Super clear. on of wholesale And growth. composition the just then follow-up 'XX

slight guiding obviously, So it EV down, like sounds XXX,XXX. up wholesale you're wholesale

didn't You specific down. give number, you a but mentioned ICE

things reconcile the wholesale trying growth the is year of was last to XX%. I'm One plus

growth channel was mix some of one or Sort of is wholesale in sales QX. the Was production mid-single-digit X. EV issues of so in plus that on inventory that actually the

in around anything add year? half Just of the growth above can second production the you the wholesale

Paul Jacobson

Yes.

if think last ended year, remember we correctly. about I at of mind, I inventory, XX in days keep So

to fairly going sizable to XX-day a able be So that had XX- we've to keep in and build target.

were saw know, we the into the quarter, we through and fourth days, demand we in at to the that work quarter. third coming you sitting with As able XX about were that

to we So down bit because a going that's we a little is an and opportunity would market the of build cautious that being be. see here. the we of that overall that's didn't build. outcome to would XXXX wholesales What going into say have have little demand what about bit do be opportunity We're just reflected some I assumption the not is that to until is

with should build. et call cetera, that a demand take I think cleaner would that just the retail to some I some make ICE been to up. to we be going probably able Like bit soon have that but too little on environment But noise January expect, there's inauguration, it's of would we calls, opportunity I with see just as an volume consistent a wholesale month of there's much had said, so weather-wise, everything rather to those

Operator

from comes question Tom next Narayan Our with RBC.

Gautam Narayan

On you're volumes higher guiding ICE the pricing EV X.X%, for American guidance volumes. down, North X% to down

in at pricing. I ICE would come higher than think EVs

level pricing the comes guidance. presumably 'XX to so, ICE what do see means down X% guidance? ICE below X.X% the portfolio you of it pricing If your So in

Paul Jacobson

us incentive I the mean talk thanks, And the assumption, going has it's ATP When because Tom. little I pricing worked to for of is react. we bit pricing it's a going well and for found that environment. to keep of internal we about and the us setup what in we our planning forward a that see back really assume to combination easier pressure this.

don't what expect see assumption But we some we've would have expect ATP in seen or the that forward. I we'll as going going is, we've if that market-driven consistent demand-driven, I would forward, modeled years that we So increases yes, past. would whether incentive cetera. outperform there's assumption say a risk that's from et what in the that, or we environment And

Gautam Narayan

the Is follow-up extent this road? X? the regulatory or to for that Or demand-driven? comments you Cruise this could catalyst et consumer it. Super X, the ultimately a And you pushes my what support Cruise, Super being on real as see appreciate down system level the is level plus, cetera. just that of wondering on rate, I do X Got the adoption level think level kind X mechanism But do be something

Mary Barra

bulk have their on Cruise Super -- people the consumer being it on of our see who I regular use a it We demand-driven. vehicles basis. mean customers

XX%. where wouldn't to buy car XX% they're when I they strongly is which rested, it say after I definitely Cruise, desire at their why their is a as features, or would something either next without be on And of it arrive over Super more customers vehicle. using say and our newer they new we or it think it's people especially get destination newer

VISTIQ, Super our IQ, And standard Cadillac from we're LYRIQ. OPTIQ, going on look EVs the Cadillac or a at Escalade the being Cruise to perspective,

opportunity is and think, us way for Cruise deployed this I more people we to all, the Super So have this safely for experience technology.

So I'd say consumer-driven. much very it's

Operator

Delaney Mark question next comes with Goldman Our Sachs. from

Mark Delaney

EV billion company driven $X about to of $X drivers. billion The for savings half the was year-over-year XXXX targeting by initially volume-related was

is EV might from $X are forward? billion then policy do that and the changes what factors there you battery can coming give volumes is in around to about of and how from thinking a share sense bit more of to how you're other as of much savings? like much some going And So and volume expecting any a wholesale you the EV materials that can us extent growth, $X the your environment, sense billion

Paul Jacobson

Yes. probably Investor ramp benefits initiatives other provide some side at continuing to talked about Mark, about cell I efficiencies. us say that's it's forward. up We're between and what going cell too we to Day. is on split evenly going efficiencies cost scale would And as

savings to but in, starting split cost probably that about there. material some between et bake are There we're cetera, XX-XX

tax production cetera. through we I credits, literally go I where you said on that in think any are of policy changes -- terms before, can of as et infinite there iterations demand, value are credits,

can, status that's are. we quo. estimate built in that of to assumption that So to watch react this we've best our But where we're kind this we which is but this. going on is continue why to We'll the

happens think And we've consumers. And is many Long irrespective term this are about as providing times, opting what seen many consumers the Mary good has our for a journey. that's choice reiterated EVs. as I in data share to of

to to journey. work, on just of corporate those to on focused and matter that a got And be As we're strategy, we making we've sure got profitability. get we've

in time require And scales And already, up. good there that anticipating tremendous think quickly I team we're of to is little this and progress on the But a improvement I making going for think how more of to depending bit get it's seen that. the future. we've

Mary Barra

also ramp that are this great production in a we we Well, for that I cause just we'd plans have up to EV demand there ICE that current if portfolio have would factors our year. happily what lessen, and add beyond

talked that Paul again, that So about. that's, flexibility

Mark Delaney

a to And around be pricing a more can And may for have to expecting if could EV in helpful what That's EV there to for through competitive you it'd very But just how helpful. you're be bit to the there GM are pricing. profitability think assumptions industry that EV more the extent already move the year-over-year us more to pricing. is the get the assumptions total. you baseline spoke around better difficult better policy specific sense of then changes extent You help around pricing? it does

Paul Jacobson

Yes.

behavior compliance. assuming we're in regulations, fairly what think on changes are policy a really of, might out pricing what that I EVs EVs there the purpose from tamped lot incentive cetera, selling incentive some we I people clear is would that et because happen for irrational there behavior sole we've on out down of seen. of around stringency consistent see And there it's what the Depending say, market.

type the driving. industry chart keep there go-to-market performance of in from deck, head I terms great against incentive the we our would a the of discipline our just strategies on that team We're the that I building focus in earnings down, to So put seen anybody as are continuing And going think products. up our and included changes forward. of in lot you've our is

Operator

Ryan Our JPMorgan. last with from question comes Brinkman

Ryan Brinkman

looks [indiscernible]. which What's with driven solid such look though, EV It Mini my the as for or there by as Hong Wuling China. sequential traction profitability, Guang the gained you like? inexpensive the rising sales taking just [indiscernible] XQ on such the Thanks like pretty is from vehicles question, some of XX% EVs

ways low-priced are vehicles. high-volume I'm just upon curious, and presuming what these low-profit capitalize not the you can but

parts over financing You aftermarket or maybe the on from and side benefit time expect services? benefit to

markets. Some vehicles can money other might but in be automakers them to have mentioned exporting higher-cost similarly China priced when make unprofitable, they then

on just China advantage take the best So of sales picture. it your but the some way this to traction, area thoughts good brighter commercial looks of curious like

Mary Barra

be individual incredibly we well. product would don't that about say that venture producer talk Sure. Well, low-cost profitability, known -- is to Ryan, Wuling efficient Wuling and and our I to do with joint but an is

portfolio, in at is it their that look of you If whole space. kind

they're So that And growth. doing I think, some are leaders, popular think that those well. consumers in one there's of very with of before as -- the other are the vehicles well I

addition there's As in on opportunities all profitability mentioned, continue to the to the you favorability. vehicle to drive

can't beyond the So that, I comment on profitability. specific

international We markets, working those for do we've make the vehicles doing sure each product standards of other work with to some been from the countries. to successful and with Wuling meets markets, that. us different And Wuling source

Ryan Brinkman

affect repurchases in planned the Okay. than I'm targeted gain about any we how surrounding gross a differently cadence per thinking about thinking as on one time? until are could curious your of the quick particularly billion want a you X of of the soon Maybe tariffs, Or of lastly, as signed allocation. orders Monday? to uncertainty comments with Might you Or maybe thinking for greater XXXX as follow-up are potentially you regarding some capital $XX regulation, your a this? executive there? cash last more clarity April operate how

Paul Jacobson

of going for going what that to that when into target a host happen liquidity whole at Ryan, things risks time you might alongside the the credit us. say goals facilities to had are Yes. I that COVID, we revolving forward. and look our liquidity a was example, would stated is time that at that our And includes enough get us

as a not continued having would We're forward. anticipation to execute anticipating we're going of cash And So big to draw. in be to going going to business have build say it's I usual.

buyback, capital. investors. bit have [indiscernible] cash free left As with allocate strong. share our And to we our little with the expect allocate we're to a Board still going work and is that continue others mentioned, and of we continue capacity that ultimately to under the do to and But

Operator

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

Mary Barra

their Thank thanking for once close in XXXX, And to XXXX. set has up again the by our business for which execution I strong want success continued in team you.

a the getting If meet and you compelling products. and portfolio demand. stronger keeps our engine combustion to customer we of look, And deep have vehicles of it broad, step and back strength EVs internal with

with for sheet. flow moving LX we're and today balance profit-focused, growing We for strong LX. and margins, cash capital to even innovate, and healthy like continue to technologies we're a Cruise the future Super disciplined We're and

column on although all of of And that. And of over the that much the how -- and have sharing delivering. there's many is I as And several is last we that's there's negatives. year capitalize team to not everybody, in General believe a forward want I that of remind XXXX agility once you full our is to with years. uncertainty, for I Motors of And Motors. a uncertainty promise some intend demonstrating we And the just our times General with what the to look pluses progress demonstrated why capable again lot

and Stay hope day. I you a thank joining, safe. have again for all great So you

Operator

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

General Motors (GM) 28 Jan 252024 Q4 Earnings call transcript