General Motors Co Q1 FY2025 earnings call

• Policy Clarity and Guidance: Updated full-year EBIT adjusted guidance to $10 billion to $12.5 billion, including tariff exposure of $4 billion to $5 billion. - US Manufacturing: Increased US direct purchases for North American production by 27%, US-assembled vehicles >80% USMCA compliant. Increased full-size pickup production at Fort Wayne and developing plans to boost US vehicle production. - EV Business: Moderated EV production to align with demand, focused on efficiency and cost reduction. Agreed to sell share of Ultium Cells plant in Lansing, continuing to develop US sources for battery inputs. - Sales and Market Share: Q1 US sales growth outpaced other major automakers, gained nearly 2 points of market share, US EV market share was 10% in Q1 and 12% in March, making GM the number two EV seller. - Product Portfolio: Redesigned ICE SUVs successful; sales of Suburban, Yukon, and Escalade strong. Super Cruise fleet expanded by 230,000 units year-over-year. - Innovation: Developing next-gen software-defined vehicle platform, collaboration with NVIDIA on AI, simulation, and accelerated computing.

North America: Q1 margin was 8.8%, within the 8%-10% target range. US sales grew 17% year-over-year, market share reached 17.2%, and ICE US dealer inventory was 49 days. GM International: Excluding China equity income, it was breakeven in a seasonally low quarter. China equity income was nearly $50 million, with new energy vehicle sales up 53% year-over-year. GM Financial: Q1 EBT adjusted was almost $700 million, with a $350 million dividend paid during the quarter.

• Updated full-year EBIT adjusted guidance to $10 billion to $12.5 billion, offsetting 30% of tariff exposure via self-help initiatives. - North American pricing expected to be up 0.5%-1% year-over-year. - Targeting at least $500 million year-over-year savings from Cruise operations in 2025. - GM Financial expects EBT adjusted $2.5 billion to $3 billion, capital expenditures $10 billion to $11 billion.

• Tariff uncertainties and potential impacts on costs and pricing. - Regulatory changes affecting vehicle emissions and compliance. - Supply chain disruptions and challenges in maintaining USMCA compliance. - Competition in the EV market and potential need for further production/pricing adjustments.

Q: On tariffs, is there scope for relief on imported vehicle tariffs?

A: The environment is fluid; hopeful for administration actions, with mitigation in go-to-market, cost reductions, and footprint/supply chain responses.

Q: How does the pace of AV and AI investment shape GM's approach?

A: Integrated Cruise team, working on software-defined vehicle, adding features to Super Cruise, and partnering with NVIDIA on AI.

Q: What goes into the 30% tariff offsets via self-help?

A: Includes increasing US production, building battery modules in the US, working with suppliers, and disciplined discretionary spending.

Q: Thoughts on SAAR and volume management?

A: SAAR expected to revert to business plan, with inventory position allowing flexibility.

Q: Details on Super Cruise population and autonomy?

A: Super Cruise fleet expanded by 230,000 units year-over-year, on track to double this year, focusing on personal autonomy.