General Motors Company (GM) Deutsche Bank Global Auto Industry Conference summary

Business performance and outlook

• May saw the strongest vehicle volumes since December 2020, with resilient commercial performance and widening discount to industry average incentives.

• Q2 earnings are expected to surpass Q1, with strong EV sales including 9,500 units in May and notable gains for Cadillac LYRIQ and Blazer EV.

• North American margins are targeted at 8%-10% across cycles, supported by strong pricing and disciplined inventory management.

• Cost initiatives have delivered $2 billion in net reductions, with ongoing focus on efficiency and quality to sustain profitability.

• Capital allocation remains disciplined, with a new $6 billion share repurchase program announced, following completion of prior authorizations.

Electric vehicle (EV) strategy and profitability

• 2024 Ultium EV production guidance trimmed to 200,000-250,000 units, reflecting demand rather than supply constraints.

• Variable profit positive for the EV portfolio is targeted for Q4 2024, driven mainly by scale, mix, and cell/material cost improvements.

• Mid-single digit operating margin for EVs by 2025 remains realistic, with future gains expected from product mix and cost reductions.

• Plug-in hybrid introduction planned for 2027 as a compliance bridge, offering flexibility amid uncertain EV adoption rates.

• Regulatory and tariff impacts are being managed, with a focus on achieving profitability independent of government incentives.

Cruise and autonomous technology

• $850 million is being invested in Cruise as a bridge to support ongoing operations and strategic review.

• Cruise is back on the road in Phoenix with backup drivers, focusing on building safety data and regulatory engagement.

• Strategic review of Cruise is ongoing, with more information expected by the October Investor Day.

• Cruise R&D is increasingly coordinated with core vehicle technology, aiming for long-term integration and cost efficiencies.

• The focus is on both robotaxi and personal autonomy applications, with capital discipline guiding near-term decisions.