Earnings call transcript: GM beats Q2 2025 forecasts but stock dips

General Motors (GM) exceeded Wall Street expectations for the second quarter of 2025, reporting an earnings per share (EPS) of $2.53 versus the forecasted $2.35, and achieving $47.1 billion in revenue, surpassing the expected $45.81 billion. Trading at a P/E ratio of 7.57, significantly below industry averages, GM continues to demonstrate strong fundamentals with a robust free cash flow yield of 26%. Despite these strong results, GM’s stock fell 6.95% in pre-market trading, reflecting investor concerns over broader market conditions and strategic challenges. According to InvestingPro analysis, the company maintains a "GOOD" overall financial health score of 2.89.

Key Takeaways

• GM reported record first-half revenue of $91 billion, with North America contributing nearly $77 billion.
• The company achieved an adjusted EBIT of $3 billion for Q2 2025.
• Chevrolet’s market position strengthened, becoming the #2 EV brand.
• Stock declined 6.95% pre-market despite earnings beat.
• Tariff impacts remain a concern, with a $1.1 billion net effect.

Company Performance

General Motors showcased robust performance in the first half of 2025, setting a record with $91 billion in total revenue, contributing to its impressive trailing twelve-month revenue of $188.45 billion. This growth was driven by strong sales in North America and an increased market share in China. The company also noted significant achievements in its EV segment, with Chevrolet rising to the #2 EV brand, reflecting strategic investments in new and redesigned crossover models. InvestingPro subscribers can access 8 additional key insights about GM’s market position and growth potential through exclusive ProTips.

Financial Highlights

• Revenue: $47.1 billion, up from forecasts and reflecting strong sales.
• Earnings per share: $2.53, exceeding expectations by 7.66%.
• Adjusted automotive free cash flow: $2.8 billion.
• EBIT adjusted: $3 billion for Q2.

Earnings vs. Forecast

General Motors outperformed analyst expectations with a 7.66% surprise in EPS and a 2.82% revenue beat. This marks a significant improvement over previous quarters, highlighting effective cost management and strategic market positioning.

Market Reaction

Despite strong earnings, GM’s stock fell 6.95% in pre-market trading to $52, down from a previous close of $53.21. Based on comprehensive InvestingPro Fair Value analysis, GM currently appears fairly valued, with analyst price targets ranging from $34 to $83. The company has demonstrated its commitment to shareholder returns, raising its dividend for three consecutive years and maintaining aggressive share buybacks. This decline suggests investor apprehension, possibly due to broader market trends or concerns about the company’s future growth trajectory in the EV sector.

Outlook & Guidance

For the full year, GM maintains its guidance for adjusted EBIT between $10 billion and $12.5 billion and EPS between $8.25 and $10. The company is focused on mitigating tariff impacts and enhancing EV profitability, which remains a strategic priority amid slower market growth. With a current gross profit margin of 11.97% and a market capitalization of $47.81 billion, GM continues to demonstrate its position as a prominent player in the automotive industry. For deeper insights into GM’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

Executive Commentary

CEO Mary Barra emphasized GM’s strong position in the traditional ICE market and its strategic focus on robotics and manufacturing flexibility. CFO Paul Jacobson highlighted ongoing efforts to offset tariff impacts, aiming to mitigate at least 30% of the costs.

Risks and Challenges

• Tariff impacts continue to pose a financial burden, with a $1.1 billion net effect.
• Slower-than-expected growth in the EV market could hinder future performance.
• Decreasing U.S. dealer inventory might affect sales momentum.
• Macroeconomic pressures and potential supply chain disruptions remain concerns.

Q&A

Analysts inquired about GM’s EV strategy, tariff mitigation efforts, and market expansion plans, particularly in China and Europe. Executives addressed these topics, emphasizing ongoing initiatives to enhance profitability and market presence.

Full transcript - General Motors (GM) Q2 2025:

Amanda, Conference Call Operator: Good morning, and welcome to the General Motors Company Second Quarter twenty twenty five Earnings Conference Call. During the opening remarks, all participants will be in a listen only mode. After the opening remarks, we will conduct a question and answer session. As a reminder, this conference call is being recorded Tuesday, 07/22/2025. I would now like to turn the call over to Ashish Kohli, GM’s Vice President of Investor Relations.

Ashish Kohli, Vice President of Investor Relations, General Motors: Thanks, Amanda, and good morning, everyone. We appreciate you joining us as we review GM’s financial results for the second quarter of twenty twenty five. Our conference call materials were issued this morning and are available on GM’s Investor Relations website. We are also broadcasting this call via webcast. Joining us today are Mary Barra, GM’s Chair and CEO and Paul Jacobson, GM’s Executive Vice President and CFO.

Susan Sheffield, President and CEO of GM Financial, will also be joining us for the Q and A portion of the call. On today’s call, management will make forward looking statements about our expectations. These statements are subject to risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include the factors identified in our filings with the SEC. Please review the Safe Harbor statement on the first page of our presentation as the content of our call will be governed by this language.

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

Mary Barra, Chair and CEO, General Motors: Thank you, Ashish, and good morning, everyone. Today, we reported another quarter of earnings that highlights the core strengths of General Motors. They include the appeal of our vehicles, customer loyalty to our brands, the growing value of technologies like OnStar and Super Cruise as well as the creativity and resiliency of our global team. I am grateful for everyone’s contributions, our employees, our dealers and our suppliers. In The U.

S. And around the world, we have demonstrated consistent execution of our production and go to market strategies. We do have opportunities from a quality perspective at both the supplier and the GM level, which Paul will talk more about in his remarks, but we are fundamentally very strong and resilient. As we discussed today, we have delivered strong underlying operating performance, and we are positioning the business for a profitable long term future as we adapt to new trade and tax policies and a rapidly evolving tech landscape. Our clear priorities are to grow our already expansive U.

S. Manufacturing footprint and domestic supply chain, further strengthen our international business and continue to innovate in batteries, software and autonomous technology. In China, we have been working closely with our JV partner to improve sales, inventory management, costs and profitability. The performance of our new energy vehicles has been especially strong. And in Q2, we reported our second consecutive quarter of year over year sales growth.

We were the only foreign OEM to gain share, and we reported positive equity income. In The U. S, the industry saw a spike in demand during the quarter due to tariff related sales pull ahead, especially in April and May. Then in June and July, demand returned to levels that are in line with our full year outlook of 16,000,000 units. Throughout the first and second quarters, GM outperformed the market in total, fleet and retail market share year over year.

We also gained total fleet and retail market share sequentially from Q1 to Q2 despite increased incentives from our competitors. We delivered all of this with inventories at the June that were down year over year by almost 10%. Our incentives remained well below industry average for both ICE and EVs and our pricing has been relatively consistent. I’m particularly pleased that the crossover portfolio we highlighted at our last Investor Day has been delivering record results. These 10 all new or redesigned crossovers took huge leaps forward in design and technology, resulting in strong demand and revenue growth, while reducing complexity contributed to stronger profitability.

The Chevrolet Equinox alone gained nearly six points of retail market share year over year in the industry’s largest segment, thanks to the popularity of both the ICE and EV models. We are growing in EVs because we have a strategic portfolio of vehicles that people love for their design, performance, range and value. Five years ago, the EV market essentially had one player. Today, there are 30. And Chevrolet is now the number two EV brand, thanks to the success of the Blazer EV and the Equinox EV.

And in Q2, Cadillac became the number five EV brand overall. Cadillac has also become the luxury EV leader, fueled by the launch of the Escalade IQ and conquest rates that are above 75% for the Lyriq and approaching 80% for the Optic. At the same time, all electric road trips are getting easier by the day, thanks to our fast charging collaborations, which have been focused on regional interstate corridors outside of the coast. For example, GM Energy three fifty kilowatt chargers are now available at nearly 200 pilot travel centers along I-seventy 5 between Michigan and Florida, on the routes between Minneapolis and Milwaukee, Detroit and Cleveland, San Antonio and Houston, and Dallas and Nashville. Stations are typically no more than a 150 miles apart, so it’s easy to take long distance trips knowing you’ll have access to reliable fast chargers and convenient services when you need them.

In addition, the first of Iona’s charging stations, which can deliver up to 400 kilowatts, are now in service in North Carolina, Texas, Pennsylvania, Ohio, Kansas, Arizona and Missouri. By the end of the year, our customers will have access to more than 65,000 public fast charging bays across the country. That will grow to more than 80,000 by the end of next year and 100,000 by the end of twenty twenty seven, a more than 50% improvement in just three years. The growth of our ICE and EV business is also fueling the expansion of our highly acclaimed Super Cruise technology, which in turn is helping guide the development of our personal autonomous vehicles. We’re making steady progress growing Super Cruise.

The technology is now offered on 23 models, and we continue to add new capabilities. We’re on track to have more than 600,000 customers by year end, each of whom has paid upfront for three years of service, with 70% of new Cadillacs delivered equipped with Super Cruise. Additionally, we have changed the way we approach the market for our OnStar products and we now price our vehicles to include a period of basic OnStar services. As a result, our OnStar subscriber totals are increasing at record rates and we now have even more ways to engage directly with our customers throughout the life of the vehicle to drive our industry leading loyalty even higher. As of today, we have booked $4,000,000,000 of deferred revenue from Super Cruise, OnStar and other software services that we will recognize over time.

Our projected Super Cruise revenue will be more than $200,000,000 in 2025 and is expected to more than double in 2026. As we continue to scale, we anticipate growing at a robust double digit CAGR through the end of the decade. We have also introduced a new and improved MyGM Rewards customer loyalty program and credit card portfolio that gives our members access to more savings opportunities on GM products and services and exclusive access to member only experiences like trackside access at racing events and off the grid EV excursions. We invested in these programs because our loyalty program members are very valuable. They buy vehicles with higher MSRPs and visit dealers for service at nearly twice the rate of nonmembers.

To build on our leadership positions in ICE and increasingly in EV and develop new sources of competitive advantage in AV software and services, we continue to strengthen our team with experienced executives and tech innovators like Sterling Anderson. Sterling, who was the cofounder and chief product officer for autonomous trucking company Aurora, is now GM’s chief product officer. We are also embracing AI across the enterprise, which is why we recruited Google and Cisco veteran Barak Torevsky to lead our efforts under Apple veteran Dave Richardson, who leads software and services engineering. Barak is building a world class team of applied AI experts and researchers as we redefine how intelligence powers vehicle performance, customer experience and operational excellence at GM. I believe everything we’re doing strategically and proactively, along with closer alignment of emissions rules with consumer demand, will further differentiate us from our competitors, increase our resiliency and drive overall profitability.

For example, the $4,000,000,000 of new investment in our U. S. Assembly plants will add 300,000 units of U. S. Capacity for high margin light duty pickups, full size SUVs and crossovers to help us greatly reduce our tariff exposure, satisfy unmet customer demand and capture upside opportunities as we launch new models.

The capacity begins coming online in just eighteen months, after which we project building more than 2,000,000 vehicles in The U. S. Each year as we scale. At Orient Assembly in Michigan, this includes production of the Cadillac Escalade followed by the launch of our next generation full size light duty pickups. Adding Chevrolet Equinox ice production at Fairfax Assembly in Kansas and moving Blazer ice production to Spring Hill in Tennessee will further reduce our tariff exposure and increase utilization of our existing U.

S. Capacity. In addition, we will have even more flexibility to adjust our mix of ice and EV production than we do today, which will help us operate both SpringHale and Fairfax more efficiently and a slower growth EV market. Despite slower EV industry growth, we believe the long term future is profitable electric vehicle production and this continues to be our North Star. As we adjust to changing demand, we will prioritize our customers, brands and a flexible manufacturing footprint as well as leveraging battery investments and other profit improvement plans.

The battery strategy we are executing is central to our efforts to make EVs profitable and an even better choice for our customers. Domestically developed and produced cells are also necessary for a resilient and secure American oriented supply chain. Our joint venture cell plant in Indiana, for example, will produce prismatic cells to help lower pack and total vehicle cost. Foundation work is almost done, and more than 50% of the steel structure has been erected. We have also confirmed that Altium Cells Spring Hill in Tennessee will begin producing LFP cells developed by our Korean partner, LGES, in addition to high nickel pouch cells starting in late twenty twenty seven.

The new lithium manganese rich or LMR

Amanda, Conference Call Operator: chemistry that we are developing with LGES will be another game changer because of its unique balance of energy density,

Mary Barra, Chair and CEO, General Motors: The charging capability and cost efficiency driven by its reduced nickel and cobalt content. In large truck packs, we believe the potential savings from LMR may be even greater than using LFP at today’s metal prices. Our expertise in leading cell chemistries and formats is also creating new business opportunities. Today, GM’s second life EV batteries are being repurposed by Redwood Materials. In addition, we’re finalizing an agreement with Redwood to supply battery modules to Redwood Energy, their new energy storage business, which has been formed to meet surging power demand for AI data centers and other applications.

Importantly, all of the cells our JVs build have and will continue to qualify for the advanced technology manufacturing tax credits, and we’re grateful for the continued support of the administration and Congress as we invest in American battery innovation and job creation. As you can see, we are well positioned to succeed in an ICE market that has now a longer runway. We will continue to drive improved profitability for ICE and focus on EV profitability improvement to generate ongoing strong free cash flow. In addition, we’ll continue to drive American innovation in batteries, AV and software to further differentiate GM. Thank you.

And I’d now like to turn the call over to Paul, who will share more details about the quarter.

Paul Jacobson, Executive Vice President and CFO, General Motors: Thanks, Mary, and good morning, everyone. Appreciate you taking the time to join us. The team continues to execute well on our disciplined strategy, which leverages our leading product portfolio and emphasizes prudent inventory management to support stable pricing while delivering consistent performance. Our agility and responsiveness to evolving consumer preferences and regulatory demands remain key strengths that set us apart. For the first half, total company revenue was a record $91,000,000,000 driven by strong demand, stable vehicle pricing and continued growth at GM Financial.

North America revenue was also a first half record at nearly $77,000,000,000 up slightly year over year. We maintain production levels in line with our full year plan as early quarter sales acceleration normalized. This measured approach combined with strong sales that outpaced the industry reduced U. S. Dealer inventory to 526,000 units, down nearly 10% year over year and almost 12% compared to the end of twenty twenty four.

EBIT adjusted was $3,000,000,000 for the quarter, inclusive of a net tariff impact of approximately $1,100,000,000 with minimal mitigation offsets. As we previously mentioned, mitigation efforts will take time to yield results, limiting their effect on the second quarter. However, we’re still tracking to offset at least 30% of the 4,000,000,000 to $5,000,000,000 full year 2025 tariff impact through strategic actions such as manufacturing adjustments, targeted cost initiatives and consistent pricing. Looking at our sales performance, GM’s U. S.

Market share reached 17.3% in the first half of the year, marking a consistent upward trend and a 1.2 percentage point increase year over year, more than double the gain of our closest competitor. As Mary mentioned, continued growth across a number of SUV segments was a key driver with the Chevrolet Equinox standing out as its total sales rose more than 20% compared to the same period last year. Our share gains came on the back of strong product, not aggressive pricing. Indeed in the first half of the year, our U. S.

Incentives as a percentage of average transaction price were more than two percentage points below the industry average, highlighting the strength of our product portfolio, our disciplined production strategy and our sustained pricing power. Turning to capital allocation, we remain focused on striking the right balance between investing in the business, maintaining a strong balance sheet and returning capital to shareholders. During the second quarter, we announced nearly 900,000,000 for the Tonawanda propulsion plant to support our next generation V eight engine, along with a $4,000,000,000 investment in our U. S. Manufacturing footprint.

These strategic investments will expand capacity, support next generation full size SUV and pickup production and enhance flexibility to shift between ICE and EVs based on market demand. Importantly, not all of this nearly $5,000,000,000 investment is incremental to our prior capital plans. A portion is being offset through cost efficiencies, internal reallocations and by aligning the timing of investments with product updates. Our annual capital spending outlook remains unchanged at 10,000,000,000 to $11,000,000,000 for 2025, with a modest increase to 10,000,000,000 to $12,000,000,000 projected for 2026 and 2027. This includes key investments in our battery joint ventures such as Ultium Cell’s production of LMR and LFP chemistries as well as our partnership with Samsung SDI.

With regard to our balance sheet, we issued $2,000,000,000 of debt during the quarter. The proceeds will be used for general corporate purposes, including a $1,800,000,000 term loan to Ultium Cells LLC to support the voluntary early repayment of their U. S. Department of Energy loan as well as refinancing a portion of the $1,250,000,000 note maturing in October. Our balance sheet remains strong, which gives us ample flexibility to navigate the current environment while continuing to invest in key future projects and return capital to our shareholders.

Speaking of shareholder returns, we completed the $2,000,000,000 ASR during the quarter, retiring an additional 10,000,000 shares, which brought the total shares retired under this program to 43,000,000. On a diluted basis, this resulted in $971,000,000 shares at the end of the second quarter, representing a 4% reduction since the 2024 and a 15% decrease compared to the end of Q2 last year. Supported by our strong cash flows with increased visibility around tariffs and the broader business environment, we resumed open market repurchases in early July. Let me now walk through the second quarter financial results in more detail. Total company EPS diluted adjusted was $2.53 and EBIT adjusted was $3,000,000,000 down $1,400,000,000 year over year.

This decline was primarily driven by a net tariff impact of $1,100,000,000 in the quarter. We benefited from lower fixed costs, improved mix and foreign currency impacts, which largely offset the effect of lower volume, EV inventory adjustments and higher warranty related charges. Adjusted automotive free cash flow was $2,800,000,000 down $2,500,000,000 year over year. The decline was primarily driven by tariff payments as well as headwinds from working capital and lower dealer inventory levels. In North America, we delivered EBIT adjusted of $2,400,000,000 and EBIT adjusted margins of 6.1%.

Excluding the impact of tariffs, our margin would have been approximately 9%, which underscores the fundamental strength of our business. On a comparative basis, this keeps us well within our pre tariff margin target of 8% to 10%. In addition to the impact of tariffs, warranty expenses have also been obscuring our strong performance, including a $300,000,000 increase in the second quarter compared to last year. The main factors behind the higher warranty expenses relate to L87 issues and higher warranty claims from software issues on some of our early EV launches. Let me be clear.

We are not happy with our warranty trend and are facing these challenges head on with the top priority always being our customers. We’ve provided extended warranties in some instances and taken other proactive steps to support those affected, including shifting some supply of our components to our aftersales group to decrease repair times. To address the root causes, we are pursuing multiple paths. We are working to improve supplier quality across the board and are engaging more on critical component operations than ever before to ensure they consistently meet our high standards. Spending on a per vehicle basis for software related issues is down roughly 25% year over year when comparing most recently built vehicles to last year’s models.

Our expanded use of over the air updates, lower number of incidents per vehicle and increased robustness in our infotainment system updates are all contributing to this improvement. Additionally, we are leveraging our enhanced diagnostics and developing new prognostic tools to identify issues sooner, develop repair procedures faster, and minimize unnecessary repairs. Complexity reductions enabled by winning with simplicity initiatives are also supporting improved launch quality as seen on our recent Tahoe and Yukon launches. As we look to the second half of the year, we expect overall warranty costs to stabilize. And for the full year, we now expect warranty to be a year over year headwind.

We remain fully committed to continuously raising our quality standards and delivering stronger results for both our customers and our business. North America pricing was a $200,000,000 headwind in Q2 compared to last year. We continue to benefit from robust retail pricing, particularly with our new vehicle launches. However, we experienced a year over year headwind in fleet pricing, primarily due to increased competition resulting in pricing moderation. We expect the headwind from fleet pricing to continue into the second half of the year.

GM International delivered second quarter EBIT adjusted of $200,000,000 an increase of $150,000,000 year over year, driven by improved profitability from our China equity income. We expect this strong performance to continue into the second half of the year. Our China team is executing well and launching competitive net products that are fueling our market share gains and delivering positive equity income. Outside of China, our operations in South America and The Middle East continue to deliver consistent results. GM Financial delivered EBT adjusted of $700,000,000 and is on track to deliver within the full year EBT adjusted range of 2,500,000,000.0 to $3,000,000,000 The team continues to grow the portfolio while paying a $350,000,000 dividend to GM during the quarter.

Credit performance and used vehicle prices remain healthy, reflecting relatively stable underlying consumer demand and market conditions. Now turning to the forward outlook. Our guidance and most of our underlying assumptions remain unchanged at EBIT adjusted in the 10,000,000,000 to $12,500,000,000 range, EPS diluted adjusted in the $8.25 to $10 per share range, and adjusted automotive free cash flow in the 7,500,000,000.0 to $10,000,000,000 range. To help with your modeling, let me first provide some thoughts on the first half to second half comparison. EBIT adjusted for the first half of the year totaled $6,500,000,000 At the midpoint of our full year guidance, this suggests that second half results will be about 1,750,000,000 lower.

There are three key factors causing this dynamic. The first is an additional quarter of net tariff impact in the second half, which accounts for around $1,000,000,000 of this gap. The second is that we expect North America wholesale volumes to be down a low single digit percentage, reflecting typical seasonality from fewer production days in the July shutdown. The last is increased spending related to preparations for the launch of our next generation full size trucks, which are scheduled to begin rolling out as model year 2027 vehicles, including also ramping investments at Orient Assembly to increase capacity in The US. Now let’s move to a year over year perspective for the full year.

We continue to plan for a full year total US SAAR of around 16,000,000 units. This implies a second half SAAR in the low to mid 15,000,000 range. Pricing remains stable in the second quarter as well as so far in July. Our guidance assumes this continues throughout the second half of the year. Our full year North American pricing assumption is unchanged at a year over year increase of 0.5% to one percent.

Turning to tariffs, the environment remains dynamic. The second quarter net impact of $1,100,000,000 was slightly lower than we had expected due to the timing of certain indirect tariff costs. As a result, we will likely see third quarter net tariff costs higher than in the second quarter. For the full year, while there have been some puts and takes since we gave our initial guidance, our gross tariff impact remains unchanged at 4,000,000,000 to $5,000,000,000 this year as we continue to produce and import vehicles from Canada, Mexico and Korea to avoid interruptions for our customers dealers. Over time, we remain confident that our total tariff expense will come down as bilateral trade deals emerge and our sourcing and production adjustments are implemented.

As mentioned earlier, we are making solid progress on our mitigation efforts and remain on track to offset at least 30% of this impact with roughly one third coming from each of our key actions, manufacturing adjustments, targeted cost initiatives, and consistent pricing. Next, I’d like to address the recent EV legislation signed by the administration. While we are still seeking further clarification on certain aspects, we anticipate these changes to have a minimal impact on our 2025 results. Our recent investments in U. S.

Manufacturing give us the capabilities to flexibly produce an ICE and EV mix based on changing customer demand. We also anticipate that a more rational EV market, along with the need to balance regulatory requirements against reduced EV incentives, positions us well for sustained profitability in the years ahead. I wanna be clear that our EV journey is about giving consumers choice. And over the last few years, a steady number of consumers are choosing electric vehicles. We offer a compelling EV portfolio and see significant growth potential, particularly in coastal markets where we remain underpenetrated.

Now that we have a robust portfolio of EVs on the road, our investment focus has turned to driving down costs and improving profitability. Mary shared examples of how new battery chemistries and form factors are driving cost efficiencies. However, we are also working to improve efficiency by making our vehicles lighter and more aerodynamic, enabling us to achieve greater range with smaller batteries. We are also standardizing key components such as electric motors across models to drive scale and reduce complexity. While we anticipate headwinds to EV profitability from lower volume due to the recent removal of government incentives, we remain focused on controlling what we can.

These efforts are essential to improving our EV profitability and are critical to supporting the company’s long term success. In closing, everything we’ve achieved in the first half of the year reflects the commitment and hard work of the entire GM team. By staying focused on our key priorities and investing in our future, we are well positioned to navigate a dynamic environment and deliver strong returns for our shareholders. Thank you. And we’ll now move to the Q and A portion of the call.

Amanda, Conference Call Operator: Thank you. Our first question comes from the line of Michael Ward with Research. Line is open.

Michael Ward, Analyst, Research: Thanks. Good morning, everyone. Paul, I wonder if you could walk through the accounting for the $600,000,000 you called out on the delta with the, the EVs.

Susan Sheffield, President and CEO, GM Financial: Hey. Good morning, Mike. So, I think you’re referring to the the lower of cost or market adjustment?

Michael Ward, Analyst, Research: Exactly. Yeah.

Susan Sheffield, President and CEO, GM Financial: Yeah. So, as a reminder, you know, with the sell inventory that we have, we are required to, mark any potential losses, on that inventory, and take it to the inventory that reflects finished goods, etcetera. And as we work towards, EBIT profitability, over time, that’ll start to come down. But as we are seeing adjustments in the market, as we are looking at expectations on pricing as well as production and demand. We made an adjustment to that reflecting, what we think is future pressure on EV sales and going forward related to that inventory.

That number will, we expect, ultimately get better as inventory comes down and we see more stability in pricing. But, think about it as more of timing, from that standpoint, and, you know, we expect it’ll get better over time.

Michael Ward, Analyst, Research: And and just as it relates to tariffs, you’re taking as the world sits today and you’re talking about the input 4 to 5,000,000,000, then with mitigation, What would be the best case scenario? We get a settlement with, US, Canada, Mexico, Korea. What would the impact look like over the right now, like, for this year if if the world changed tomorrow and it went back the other way? And then what do you have strategically that helps you from a performance standpoint as you as you go forward with your the the 4,000,000,000 investment?

Mary Barra, Chair and CEO, General Motors: Yeah. Michael, it it really I mean, obviously, our tariff impact would be lower if the tariffs with Mexico, Canada, and, Korea were lower. So, you know, that would have an immediate impact. You know, you have to look at how much lower it’s going to be to know what the total impact there should be. Right.

But, yeah, that would have a immediate because as as Paul said earlier today, you know, we have continued to bring the vehicles in from Korea because they’re contribution margin positive, and they’re in in very much in demand. I mean, customers love those vehicles. We’ve made some short term shifts of production, into our, US footprint. I think what’s gonna happen though, as we’ve always said, we feel we’ll be able to offset 30%. A lot of that will come in later this year as well as we’ll continue to make improvements across the board as we get into next year.

And eighteen months from now, the capacity, the $4,000,000,000 that we talked about, that capacity will come online, and then that will have another step function improvement. And in some cases, the capacity we’re adding is also for unmet demand. So it’s a win win from that perspective. So, we’re on a, I think, a positive trajectory as we look into, later this year into next year and clearly into ’twenty seven, will be substantially better. And to your original question, when we see what the final, agreements are between these key countries for us, then we’ll be able to size that as well.

Michael Ward, Analyst, Research: So you’re prepared for the worst case scenario, so there’s potential for some upside the way we look at it.

Mary Barra, Chair and CEO, General Motors: I think that’s a fair comment. I think that’s a fair comment. I don’t wanna predict, what worst case is. But I think with what we know today, I think that’s what we’ve used. So I think there’s potential.

Michael Ward, Analyst, Research: Yeah, I don’t think anybody can predict what’s going happen. So thank you very much.

Mary Barra, Chair and CEO, General Motors: Thank you. Thanks Mike.

Amanda, Conference Call Operator: Thank you. Our next question comes from Dan Levy with Barclays. Your line is open.

Dan Levy, Analyst, Barclays: Hi, good morning. Thanks for taking the questions. I wanted to start first with a question on pricing. And I appreciate the commentary that the reason the price in the North America EBIT bridge was negative on fleet. We did see pretty solid third party data.

So retail was tracking up decently based on the third party data. Retail is the vast majority of your sales. Maybe you could just double click on the dynamics there. And as far as the second half goes, how do we reconcile the assumption of pricing sort of held where it is versus the notion that as others run out of pre tariff inventory and inventory is now more expensive, others may now need to raise prices?

Susan Sheffield, President and CEO, GM Financial: Hey, good morning, Dan. Thanks for that. And, not surprised by the question. I think a couple of things. Number one, as we talked about, fleet, it’s largely a comp issue too because remember what we’re lapping is fleet deals that were done under significantly tighter inventory than even where we are, today at our tight levels.

So we think that’s some normalization. I mean, we’re still comfortable, with our pricing assumption of, you know, up a half to 1% for the year, going forward. We had the strength in the first quarter. We have tougher comps really through the middle of the year. But as we launch our model year ’26 vehicles with, you know, our our sort of regular pricing strategy that we’ve encountered, we we still see that, working, quite well.

So I think there’s a little bit of noise in the quarter here that, we will work through, but nothing has changed about the full year. You know, what there’s a there’s a lot of talk about out there about what people are going to do, what they’re not going to do. As as we’ve said before, we’re pursuing our own sort of commercial path, one that is really centered around the discipline and the demand for our products. And that’s worked really well for us. So so despite having lower incentives, significantly lower incentives than the industry average, we’re still picking up share.

So, you know, I think to the extent that, you know, we see pricing change, we’re gonna continue to look at it, you know, according to, where we see the demand for our products, which remains strong and I expect will into the future.

Dan Levy, Analyst, Barclays: Okay. Great. Thank you. That’s helpful. Second question is just about the EV strategy going forward.

And I appreciate the commentary about so you wanna give consumers choice. But now that, the tax credit is on its way out and there’s changes in the regulatory schemes, I I know we’ve seen a a broad lineup across price points, but the the profitability has been challenged. And I think these changes indicate profitability is probably gonna get a little trickier. So especially given you’re you’re losing some of the scale benefits, which was supposed to drive profit. So how do we look at, you know, the the the the depth or the breadth of your EV lineup going forward and the price points at which you’re offering vehicles when it seems like it’s just gonna be much tougher to get profitability at the more, lower price points?

Is it that we just see higher price points and that’s the strategy?

Mary Barra, Chair and CEO, General Motors: Well, I I think we’re you know, we have a very strategic EV portfolio when you look luxury trucks and then, the affordable vehicles like the Blazer and the Equinox EVs. And so we think we’re covering the market, very well. Before we even had IRA and the $7,500 tax credit, and some of the other portions of that, there still was demand for EVs. And we think as charging grows, and, that’s one of the things we highlighted because we are continuing very capital efficiently through partnerships to, make sure we continue to expand the EV charging network. I also think there’s an opportunity for EVs for those that have a two car family that have a garage that they can charge.

It makes a lot of sense to have one of those two vehicles be an EV. So I think as we get through this period and we go through the potential pull ahead before the September 1, where the consumer tax credit goes away, then we get to fourth quarter, we’ll probably see a little result of that pull ahead. We get into 2026, so I think we’ll start to understand what real EV demand is. What we have been saying is what we’re investing going forward is largely focused on improving our EV profitability. The announcements we’ve made from a battery perspective, with LMR and LFP, some of the work that we’re doing, as we move forward to have a lighter architectures, more aerodynamic that allow us to use a smaller battery.

So we’re very focused, in this period of time to drive, not just get to variable profitability, but get to profitability and then it can continue to improve. So we have appropriate and strong margins from our EVs as well. And then we’re very well positioned to the market, for later in this decade into next decade, and we truly offer consumers choice. So we think we’ve got the foundation with the EV platform that we have that allows us to go from a very very small vehicle all the way up to a super truck like the Hummer. We think that’s an advantage for us.

We think there is going to be an EV market that will grow over time, albeit it’ll start lower and potentially grow more slowly. But we’re well positioned to do that. Right now, we’re seeing growth in both ICE and EV from a share perspective with, as Paul mentioned, very disciplined incentives.

Dan Levy, Analyst, Barclays: And there’s a clear path to grow to get the profitability on the affordable EVs?

Mary Barra, Chair and CEO, General Motors: I’m sorry, I didn’t hear the beginning of your question, Dan.

Dan Levy, Analyst, Barclays: There’s a clear path to get to profitability on the affordable EVs?

Mary Barra, Chair and CEO, General Motors: Well, that is what we’re working on from all aspects. And definitely, the battery technology changes. And as we grow with affordable, which is in the heart of the market, that gets us the scale benefits as well. So, we are focused on each and every vehicle getting to profitability, and we’re not going to stop until they do.

Dan Levy, Analyst, Barclays: Great. Thank you.

Amanda, Conference Call Operator: Thank you. Our next question comes from Ryan Brinkman with JPMorgan. Your line is open.

Ryan Brinkman, Analyst, JPMorgan: Great. Thanks for taking my question. I wanted to ask on the impact of tariffs on your earnings power as we move beyond this year. Earlier you’d called out 4,000,000,000 to $5,000,000,000 of tariff impact over the course of 2Q through 4Q twenty twenty five, so annualizing to maybe 5,300,000,000.0 to $6,700,000,000 with the goal of mitigating at least 30% of the impact this year. But that was before the various investments in U.

S. Manufacturing announced during the quarter. How should we think about these footprint actions impacting net tariff costs going forward? What degree of tariff cost mitigation beyond the 30% target for this year do you think you might be able to accomplish after these investments come online in eighteen months’ time?

Susan Sheffield, President and CEO, GM Financial: Yes. Good morning, Ryan. I’ll take that one. Thanks for the question. You know, have, we we highlighted that of the 4,000,000,000 to $5,000,000,000 about $2,000,000,000 of it is Korea.

And, as Mary mentioned in in in her comments and and recent question that, you know, obviously, the trade deals with Mexico, Canada, and Korea are gonna be important. We’re not speculating on what those are going to look like, going forward, but, you know, there is a, there there is a possibility and and a and a likelihood, if you will, that, that ultimately, a a tariff rate gets set at a lower level, which would ultimately bring that in back down. As far as, the other aspects of the tariffs, we talked about the $4,000,000,000, which will bring us when, all that is implemented to producing over 2,000,000 vehicles here in US. That will take care of part of a large part of the of the, other remaining tariffs that are out there. We’re still working through supply chain and, and, other indirect, tariffs, but we’re not speculating on what it’ll be.

But I expect that that it is likely lower than the the the current run rate of what you would see just as things shake out. Remember, we’re only ninety days into this. As to the 30%, I mean, these are these are shifts in the, in sort of the general operation of the business that we don’t necessarily think go away if if tariffs are reduced. So, you know, I think we’ve got a longer term plan to be able to mitigate a substantial part of this. You know, we’re we’re obviously looking for, things to normalize around, these trade deals that will get done, and we we we expect that’ll happen.

But, you know, it’s it’s too soon to extrapolate that as a run rate into the future.

Ryan Brinkman, Analyst, JPMorgan: Very helpful. Thank you.

Amanda, Conference Call Operator: Thank you. Our next question comes from Joe Speck with UBS. Your line is open.

Joe Speck, Analyst, UBS: Thanks. Good morning. Paul, just maybe turning back to some of the tariff comments, and I understand a lot has changed. But you did mention that you expected the biggest headwind to be in the second quarter, and now it seems like the third quarter. So maybe you could just sort of help us understand what large buckets, what sort of changed within that?

It seems like in the slides you’re mentioning indirect tariffs, which is maybe commodities and or maybe there’s something with the mitigation efforts. Just any color you have there?

Susan Sheffield, President and CEO, GM Financial: Yes. Thanks, Joe. You got it. It’s really on a lot of the indirect, items that we were when we came out with the overall tariff guidance, we were, estimating the timing on when some of that would hit. So, you know, I would expect that we would have more expense, potentially in the third quarter, but we’re still tracking on that four to five, despite all the changes that we’ve seen going forward.

So, you know, it might be slightly higher, in the third quarter, and that’s that’s kind of what we’re thinking right now. On the cash side, we actually expect that, that cash impact, you know, potentially to be lower. We’re still, you know, didn’t get the full benefit of the MSRP offset just because of the timing. So that’ll materialize in the second half of the year, on the cash side. But from an expense side, just think slightly higher in 3Q, but still on track for the 4,000,000,000 to $5,000,000,000 for the year.

Joe Speck, Analyst, UBS: Okay. And then and then just turning back to EVs and regulatory policy, but maybe from a little bit of a different angle. I know in your K, you disclosed that last year you expensed $1,000,000,000 for credits. I was wondering if you’d let us it doesn’t sound like you expect much sort of change to this year, but I was wondering if you could let us know how much you are counting on that expense to be this year. And is it fair to assume you have a if we’re comparing ’26 to ’24, you have a potential $1,000,000,000 tailwind from credits?

Susan Sheffield, President and CEO, GM Financial: Yes, Joe. It gets really complicated really fast as you might imagine with the different regulatory schemes, but what’s what’s in there is CAFE, GHG, state regulations, etcetera. So what we know today is, you know, the the the CAFE penalties under the one big beautiful bill were were zeroed out. So we did have some, balance sheet, purchased credits that, were there this year, but we also have some, expenses that we had that already booked. That’s gonna basically be a wash for us, so I don’t expect any material adjustments from Cathay.

GHG, obviously, has not been fully answered. We we we have comments from the administration. And, you know, in the one one big beautiful bill, you know, there are changes to future compliance, but we’re still working through that across the board. So I think ’25 is a little bit of a transition year as we as we understand what the future landscape is going to be, and what, how that’s going to affect the the credits and the liabilities that are on the balance sheet this year. But going forward, we do expect to be a more, I guess, a lower expense rate for compliance in the future.

Mary Barra, Chair and CEO, General Motors: And just I would add to that, it also gives us the opportunity, to sell, EV vehicles or excuse me, ICE vehicles for longer, and under or appreciate the profitability of those vehicles while we’re, you know, month by month, quarter by quarter, year by year improving our EV profitability. So I think it’s a huge opportunity.

Joe Speck, Analyst, UBS: Thank you.

Dan Levy, Analyst, Barclays: Thanks, Joe.

Amanda, Conference Call Operator: Thank you. Next question comes from Ittai McKelley with TD Cowen. Your line is open.

Ittai McKelley, Analyst, TD Cowen: Great. Thank you. Good morning everyone. Just first on the guidance, just given still the wide range second half of the year, dollars 3,500,000,000.0 to $6,000,000,000 I’m just curious what some of the factors that could materialize that could cause you to be at the low versus high end of that range and whether you have a current bias within the range currently?

Susan Sheffield, President and CEO, GM Financial: So thanks Itay. As we, you know, have, continued to practice as we generally use midpoint convention as as how we’re thinking about things. The reason to not change is obviously there’s there’s still things working out. We don’t want a lot of volatility in our guidance from that standpoint. But, you know, as we as we look at the landscape, some of the things that that could help us are, you know, getting, some of the offsets as we’ve talked about potentially over performing on that.

Some of the challenges are, you know, higher tariff rates for longer. But overall, we’re aiming for the midpoint, and that’s the way we try to shoot straight across the guidance. So as the year progresses, we’ll have an opportunity to tighten that range as we know more.

Ittai McKelley, Analyst, TD Cowen: Great. That’s helpful. And then just as a follow-up, just with wholesale volume declining on seasonality and you’ve gained some nice market share, your inventory is in good shape going into second half of the year. Any thoughts on S.

Dealer inventory could end the year roughly?

Susan Sheffield, President and CEO, GM Financial: Well, I mean, we remain committed to our fifty to sixty day target at the end of the year. You know, that obviously fluctuates with changes in demand. But, clearly, the the vehicle count, as we highlighted in our comments was down, pretty significantly year over year. You know, we we have, responded, I think, the right way, with some component availability into our customer care and after sales group, to address some of the more, specific, warranty issues to make sure customers are getting their vehicles back faster. That was a very calculated, measure that, impacted our wholesales, to be honest, and something that, you know, I think, ultimately, we can, we can improve in the second half of the year, that will have an ability to potentially, improve our wholesales.

But nothing has changed from that target of wanting to get to that fifty to sixty day target range.

Ittai McKelley, Analyst, TD Cowen: Terrific. That’s all very helpful. Thank you.

Susan Sheffield, President and CEO, GM Financial: Thanks, Itta.

Amanda, Conference Call Operator: Thank you. Our next question comes from Adam Jonas with Morgan Stanley. Your line is open.

Ashish Kohli, Vice President of Investor Relations, General Motors0: Thanks, everybody. Mary, about fifteen or twenty years ago, GM was leading the industry in humanoid robot development, working together with NASA on Robonaut one and then Robonaut two, deploying an upper body humanoid on the International Space Station in 2011. Fast forward to today, and most of your key competitors have a humanoid program, and many, myself included, think that this market’s 10 times larger than cars at least. So when can investors learn more about GM’s robotics chops in your in house in your in house, robot facilities? Mary, as an engineer, I’m sure you must be super excited, about the opportunity to show investors where GM can dominate here.

And and, Mary, I I actually think that this is good for the UAW because we need American human muscle to develop, build, and service these robots. So, when are we gonna learn more?

Mary Barra, Chair and CEO, General Motors: Well, Adam, thanks. I actually, didn’t work directly on that project, but it was in the area I was responsible for. So I know the NASA partnership you’re talking about very well. Also, we have a very long and rich history, with GMF, excuse me, GM Robotics, GM Fanup, sorry. And we still have a very, very strong partnership.

So we have a core capability in the company for sure. There’s also partnerships that we’re, looking at and strategic relations that we have. But as we look at automation overall, our first look as we want to not only lead, from what happens from a robotics perspective, because remember, a lot of things that we leverage robotics for are areas where there’s safety challenges, to do the work. If there’s ergo challenges, we have a very robust ergonomics program in this company to make sure people don’t get hurt doing their jobs. And then just difficult or very dirty tasks that frankly no one wants to do, and I don’t blame them.

And so there’s a lot to do there. There’s also work to do, to get rid of a lot of the indirect. But we’ve also done a lot of work from a winning with simplicity perspective, and we’ve talked about that for the last few years. But first has been focused on what was, I’ll say, some of the low hanging fruit to simplify how we go to market from a trip level perspective, free flow options, etcetera. But now we’re really getting into part design, where the parts are just simpler parts or a part that integrates and does more functions.

So there’s tremendous work going on across the company to lead to manufacturing efficiency. And then like I said, as we go forward, we’re gonna continue to capitalize on the core knowledge that we have in this company to make sure we’re driving efficiency. I’m also very proud of the fact that way back when assembly lines and all the equipment in a plant was controlled by wires and relays, we did training programs partnering with the local community colleges to train our workforce to be able to leverage how we run automation today. From a computer perspective, we have an active training program that we right now, where we’re training more and more electricians and technicians, as we have more complexity in our plants. And so we’re gonna continue to do that.

It’s something I’m very proud of. And I do agree there’s huge opportunity for our workforce as we look to what technology has to offer to improve the jobs. But overall, we’re focused on what’s gonna drive manufacturing optimization, across all elements.

Ashish Kohli, Vice President of Investor Relations, General Motors0: That’s great, Mary. Sounds like stay tuned and bless you for investing in those important areas in our country. Just as a follow-up on EV profitability, I want to return to that. Tesla is still seen as a benchmark in Western EVs by many. Maybe you’re now the new benchmark, or the new emerging benchmark, but in Western EVs, they’re still the big dog.

But if you remove ZEB credits, which is probably appropriate, and downstream retail, they’re loss making. I mean, they’re worse than Renault. Their margins are worse than Stellantis. They would they would really love to have your GMI margins. So add this to Elon’s it seems to be also exiting the auto industry, clearly pulling capital out of the business and doubling down on AI and autonomy and robotaxis.

So how does GM expect to be profitable with EVs when players like Tesla are are apparently cannot? I was just wondering what you’d highlight as your differentiation in terms of how you configure the vehicles or your scale or something about working with the Koreans and your in house work, something. When you benchmark Tesla, why are they loss making and you feel that you can be profitable? Thanks.

Mary Barra, Chair and CEO, General Motors: Well, think one of the things I’m very proud of I’m not going to comment on Tesla because there’s a lot And as you know, don’t usually comment on competitors. But I think when I look specifically at General Motors, one of the reasons our EVs are doing so well from a customer perspective is they’re true to our brands, whether it’s Chevrolet, whether it’s Cadillac, whether it’s GMC Hummer and GMC. Also, beautifully designed vehicles that have the range and the performance that customers are looking for, whether you’re talking about a truck or all the, technology and safety we, you know, we put into an Equinox, we’re that’s what we’re known for and and that beautiful design with also efficiency. As Paul said in his opening remarks, we still believe we have tremendous opportunity to, as we did our first EV platform, to make, changes to that, to, drive more efficiency from a weight perspective, from a simplification perspective. The same is true for batteries, and we’re investing in future technologies that are gonna allow us to take significant cost out.

And then we will get scale. And one of the things I’m really excited about with how we grow, have been growing our share quarter after quarter is the support that we have from our dealers who now really understand EVs. They understand what the customer is looking for. Like I said, I think we can improve that scale when we think about two family two car families that have an opportunity to have one of those vehicles in the garage B EV even before the charging infrastructure’s there. So it’s gonna be beautifully designed products with brands people trust.

Remember, we have the highest loyalty. It’s going to be having the right technology on the vehicle, getting that scale, and then the engineering solutions. So I’m very, very bullish on where we’re gonna be on EVs as we continue to move forward in the next couple years.

Susan Sheffield, President and CEO, GM Financial: And and Adam, I’ll just I’ll just add I think the other asset that we have is, you know, a lot is made about Tesla’s simplicity and and and their scale. Clearly, you know, within a couple of narrow segments, they do have that and they realize some good advantages and hats off to them. It also leaves them overexposed to, you know, a a demand set that has been highly volatile. When you look at what we’ve done in Spring Hill and what we’ve announced that we’re gonna do in Fairfax, we’re increasingly building flexibility into our operation, into our manufacturing plants that as we go through this period of transition, however long it might be where where customers are adopting EVs at a slower or a faster rate. That is gonna change, year to year, you know, for the for the foreseeable future.

That built in flexibility for us to switch between EV and ICE and make sure that we meet customers where they are is an inherent advantage that we have because we can absorb some of the costs of that manufacturing facility with more ice production if EV demand goes down. So that flexibility is gonna be important for us as we as we go through the next several years, and I think it’s gonna be helpful on that journey.

Ashish Kohli, Vice President of Investor Relations, General Motors0: Thanks, Paul. Thanks, Mary.

Susan Sheffield, President and CEO, GM Financial: Thanks, Adam.

Amanda, Conference Call Operator: Thank you. Our next question comes from Tom Narayan with RBC Capital Markets. Your line is open.

Ashish Kohli, Vice President of Investor Relations, General Motors1: Hi, thanks for taking the question. I wanted to do a little more maybe drilling down on the Korea operation you guys have. I know it’s substantial part of tariff amount, obviously. I know we all hope for a resolution there. But you know, the the cost dynamics there are are better, I believe, than if you were to produce those vehicles in The US.

Just curious in in, like, a worst case scenario situation where we’re at this the current status quo and that continues prospectively, how do you think about the Korean business? Is the better economics there sufficient that you could continue working with the same kind of production, same capacity? Or would you make changes there? And then I have a follow-up. Thanks.

Mary Barra, Chair and CEO, General Motors: Yeah, Tom, we really have to see where this levels out. I mean, we’ve had, the operation in Korea for a very, very long time. It’s a very efficient operation that we’re very, proud of. But we’ve got to evaluate, when we have some, certainty with what the tariff will be. So I’m not gonna speculate.

Obviously, we’ve talked about it with the different choices that we have. But I’m not gonna speculate right now until we know, where the agreement between Korea and The United States lands. But it’s a operation we’ve had for a long time that’s very efficient and high quality. Again, as I mentioned, right now, the vehicles that we produce there, they’re in high demand, and they sell our contribution margin positive. So I think we’re in the right place where we are right now until we get more certainty, and then we’ll have more to say about it.

Ashish Kohli, Vice President of Investor Relations, General Motors1: Got it. And then as you think about outside the you know, China looks like it was maybe a surprise positively, your performance there, despite all the negativity we hear in the press with the domestics there. But then the flip side in Europe, you’re hearing a lot of kind of negativity from large OEMs this week with all the competition there. How do you think about these two markets for GM? Is you know, is it is it better just to kinda hunker down and and stay, you know, more focused in The US where you guys are so dominant?

Or do you see opportunities especially with the EV side? Battery costs coming down in the future presents a great opportunity for you guys to kind of expand further in those two markets. Thanks.

Mary Barra, Chair and CEO, General Motors: Well, think from a China perspective, now that we announced the restructuring last year and it’s on track, very proud of the fact that the team has is gaining share. I think we’re the only foreign OEM or foreign brands to be able to gain share positive equity income. And I think there’s an opportunity. With what we know today from the geopolitical situation and the relationship between the two countries, I think there’s an opportunity for Cadillac and Buick, to be strong there. You know, Buick has a rich history there, and the brand means something to, the Chinese consumer.

And Cadillac is viewed as, as, you know, luxury and a great choice. I mean, one of the vehicles we have there is the GLA, which has been a very, very successful product. And now that we have it out from a new energy vehicle perspective, it’s doing quite well. So I think with what we know today, we can have a smaller but strong business that can grow in China. And I think that’s something that we’re going to be continuing to focus on.

I’m really proud of the team there. And then from a Europe perspective, I think there’s a lot of changes that are happening in Europe right now from a regulatory perspective, from what’s happening from a competition perspective, especially from the Chinese, I think over time that will settle out. Think we have an opportunity in that market, very proud of the fact that the Lyriq was named German Luxury Car of the Year last year, first American, brand ever, received that honor. So I think we have, especially our EVs that can do very well in the European market. But I think there’s some stabilization that has to happen of what is the policy situation across Europe that will inform the next step we take.

And then you didn’t mention South America, and I think we have huge opportunity from a South America perspective. We have very strong brands there, a very strong dealer base, and I think there’s opportunity there as well, as well as in The Middle East.

Ittai McKelley, Analyst, TD Cowen: Got it. Thank you.

Amanda, Conference Call Operator: Thank you. Our last question will come from the line of Emmanuel Rosner with Wolfe Research. Your line is open.

Ashish Kohli, Vice President of Investor Relations, General Motors2: Great. Thanks for taking my questions. I wanted to ask you about the share buyback program. So it’s good to see GM back in the market buying some on the open market. Can you give us any sense of how much you’re hoping or planning to buy in the second half?

I believe you still have $4,000,000,000 plus maybe on the authorization. So is the goal to complete that this year? Or would it be an amount less than that?

Susan Sheffield, President and CEO, GM Financial: So Emmanuel, good morning. Thanks for the question. First of all, we never left the market. As you know, we were covering with accelerated share repurchase in the second quarter, so that’s been consistent. While we paused open market repurchases, we have said that we’re back now, and we began repurchasing, in early July.

No comment specifically on how much we’re going to do. We obviously wouldn’t telegraph that. But, you’re right, we had as of the end of the quarter, 4,300,000,000.0 remaining on that authorization. And as we’ve said, we’re sticking with our free cash flow guide. And, you would expect that seasonally there’s going to be, more cash generation in the second half versus what we did, according to that guide, when you look at the midpoint.

So, I’ll just leave it at that. But you know, we’re we’re gonna maintain that consistent application of our capital allocation policy.

Ashish Kohli, Vice President of Investor Relations, General Motors2: Okay. Great. And then second topic I was hoping to ask you a follow-up about is, you know, a follow-up on your EV strategy as a result of some of these, you know, U. S. Regulation changes.

I appreciate all the efforts that you highlighted towards flexible manufacturing and the ability to really respond to consumer demand. Is there any also an opportunity or appetite at GM to try and reduce the overall capital intensity of the business? Obviously, your CapEx remains very, you know, stable and steady. Just curious if with this, you know, lower EV market predicted as well as essentially easier rules to follow, if there is any appetite there to actually just say, maybe down the line at some point, we don’t need to spend as much on a go forward basis as an overall company.

Susan Sheffield, President and CEO, GM Financial: Well, Emmanuel, I think, you know, from a capital perspective, you know, feel very comfortable with with where we are at the 10 to 11. And then we’ve announced that, you know, with the footprint changes that we will will go to 10 to 12 over the next couple of years, but still, very much, in line with affordability allocation. And, you know, capital levels that on an inflation adjusted basis are similar to what we did in 2018, with much better cash flow performance. So when you look at, EVs, the I wouldn’t say that we’re going to be spending significantly less. What I would say is the composition of the investment is changing where we have been, out expanding the portfolio and making sure that we can meet customers where they are.

Our capital is now focused on where can we, structurally and architecturally improve the cost and the performance. A lot of announcements that we’ve made on the battery technology, and the teams are hard at work at, at looking at other things such as, aero and and materials. So, you know, I think there’s a path there and and one that we feel very comfortable with.

Ashish Kohli, Vice President of Investor Relations, General Motors2: Great. Thanks for the color.

Susan Sheffield, President and CEO, GM Financial: Yeah. Thanks, Emmanuel.

Amanda, Conference Call Operator: Thank you. I’d now like to turn the call over to Mary Barra for her closing comments. Well, thank you.

Mary Barra, Chair and CEO, General Motors: And I want to thank everybody for your attention and for your questions. We really do appreciate the dialogue. But I hope you step back and see that we are well positioned for the future. We have a lot of momentum with customers as we adapt to the changing markets, trade and tax policy, and we are demonstrating leadership in ICE, EVs, software, AV and other important technologies for the future of mobility. This underscores my belief that GM will emerge from this transition period even stronger financially and with clear momentum and that we will be uniquely differentiated from our competitors with the strength of our ICE business, the strength of our EV business and the progress that I know we’re going be making from a technology perspective.

So thanks, everybody. I hope you have a great day, and be safe.

Amanda, Conference Call Operator: Thank you. That concludes today’s conference. Thank you for participating. You may disconnect at this time.

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