News Release Details

Q2 2024 Letter to Shareholders

July 23, 2024

To Our Shareholders,

I want to begin by thanking the GM team, as well as our dealers, suppliers and other business partners, for helping us deliver strong second quarter and first half results, including record revenue in both periods. This has paved the way for us to increase our guidance for full-year earnings, free cash flow and earnings per share.

There are four key drivers of our performance that I’d like to highlight.

  • In North America, we have a consistently high performing portfolio of ICE trucks and SUVs on a volume, share and margin basis.
  • Our EV portfolio is scaling well, and we’re encouraged by the early sales results, including record second-quarter deliveries and improving market share.
  • We continue to deliver strong and stable pricing with lower incentives than the industry average.
  • And with our new investments, we have an even stronger focus on margins and capital efficiency.

Great vehicles and better execution will continue to differentiate us. In SUVs, we’re in the process of launching eight all-new or redesigned compact, mid-size and full-size ICE models in North America, including high volume vehicles like the Chevrolet Equinox and our family of mid-size SUVs, which all have higher margins than the outgoing models.

To unleash the next cycle of EV growth, we’re scaling production of the Chevrolet Equinox EV, with its unique combination of performance, technology, range and affordability. We think it’s a game changer and product reviewers agree. One said, “Chevy seems positioned to grab a piece of the pie that no one else has quite grabbed onto yet.” Then over the next several months, GMC will launch the Sierra EV and the Cadillac LYRIQ will be joined by the OPTIQ, Escalade IQ and CELESTIQ.

As excited as we are about our EVs and our early success, we are committed to disciplined volume growth, which is the key to earning positive variable profits from our portfolio in the fourth quarter, which remains our goal.

I also want to recognize the progress Cruise has made over the last several months. Our vision to transform mobility using autonomous technology is unchanged, and every mile traveled, and every simulation, brings us closer because Cruise is an AI-first company.

As you know, Cruise has returned to the road in Houston, Phoenix and Dallas and we recently made several significant leadership appointments, including hiring Marc Whitten as CEO. Marc has decades of experience on the frontlines of technology transformations.

The Cruise team will also simplify their path to scale by focusing their next autonomous vehicle on the next-generation Chevrolet Bolt, instead of the Origin. This addresses the regulatory uncertainty we faced with the Origin because of its unique design. In addition, per-unit costs will be much lower, which will help Cruise optimize its resources.

As I hope you can see from our results, our new products, the progress at Cruise and our higher guidance, we are making the most of every opportunity.

It was truly a great first half. And we have the products, discipline and strategies to drive future success.

Thank you for your confidence in GM.

 

Mary Barra signature

 

Cautionary Note on Forward-Looking Statements: This press release and related comments by management, may include “forward-looking statements” within the meaning of the U.S. federal securities laws. Future declarations of quarterly dividends and the establishment of future record and payment dates are at the discretion of our Board of Directors and will be based on a number of factors, including our future financial performance and other investment priorities. Forward-looking statements are any statements other than statements of historical fact. Forward-looking statements represent our current judgment about possible future events and are often identified by words like “aim,” “anticipate,” “appears,” “approximately,” “believe,” “continue,” “could,” “designed,” “effect,” “estimate,” “evaluate,” “expect,” “forecast,” “goal,” “initiative,” “intend,” “may,” “objective,” “outlook,” “plan,” “potential,” “priorities,” “project,” “pursue,” “seek,” “should,” “target,” “when,” “will,” “would,” or the negative of any of those words or similar expressions. In making these statements, we rely on assumptions and analysis based on our experience and perception of historical trends, current conditions and expected future developments as well as other factors we consider appropriate under the circumstances. We believe these judgments are reasonable, but these statements are not guarantees of any future events or financial results, and our actual results may differ materially due to a variety of important factors, many of which are beyond our control. These factors, which may be revised or supplemented in subsequent reports we file with the SEC, include, among others, the following: (1) our ability to deliver new products, services, technologies and customer experiences; (2) our ability to timely fund and introduce new and improved vehicle models; (3) our ability to profitably deliver a broad portfolio of electric vehicles (EVs); (4) the success of our current line of internal combustion engine vehicles; (5) our highly competitive industry; (6) the unique technological, operational, regulatory and competitive risks related to the timing and commercialization of autonomous vehicles (AVs), including the various regulatory approvals and permits required for operating driverless AVs in multiple markets; (7) risks associated with climate change; (8) global automobile market sales volume; (9) inflationary pressures, persistently high prices, uncertain availability of raw materials and commodities, and instability in logistics and related costs; (10) our business in China, which is subject to unique operational, competitive, regulatory and economic risks; (11) the success of our ongoing strategic business relationships and of our joint ventures; (12) the international scale and footprint of our operations, which exposes us to a variety of unique political, economic, competitive and regulatory risks; (13) any significant disruption at any of our manufacturing facilities; (14) the ability of our suppliers to deliver parts, systems and components without disruption and at such times to allow us to meet production schedules; (15) pandemics, epidemics, disease outbreaks and other public health crises; (16) the possibility that competitors may independently develop products and services similar to ours, or that our intellectual property rights are not sufficient to prevent competitors from developing or selling those products or services; (17) our ability to manage risks related to security breaches and other disruptions to our information technology systems and networked products; (18) our ability to comply with increasingly complex, restrictive and punitive regulations relating to our enterprise data practices; (19) our ability to comply with extensive laws, regulations and policies applicable to our operations and products, including those relating to fuel economy, emissions and AVs; (20) costs and risks associated with litigation and government investigations; (21) the costs and effect on our reputation of product safety recalls and alleged defects in products and services; (22) any additional tax expense or exposure or failure to fully realize available tax incentives; (23) our continued ability to develop captive financing capability through General Motors Financial Company, Inc.; and (24) any significant increase in our pension funding requirements. A further list and description of these risks, uncertainties and other factors can be found in our most recent Annual Report on Form 10-K and our subsequent filings with the SEC. We caution readers not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events or other factors, except where we are expressly required to do so by law.