Q3 2024 General Motors Co Earnings Call Transcript
Key Points
- General Motors Co (GM) reported strong third-quarter results, with revenue up 10% to $49 billion, driven by growth in both ICE and EV segments.
- The company achieved $4.1 billion in EBIT adjusted, with an 8.4% EBIT-adjusted margin, and EPS diluted adjusted of $2.96, up roughly 30% year over year.
- GM's retail market share in the US has grown, supported by above-average pricing and well-managed inventories.
- The company is on track to produce and wholesale about 200,000 EVs in North America this year, with a focus on making EVs profitable on an EBIT basis.
- GM has successfully maintained strong pricing with significantly lower incentives compared to competitors, demonstrating the strength of its product portfolio and disciplined go-to-market strategy.
- The operating environment in China remains challenging, with GM International's third-quarter EBIT adjusted down $300 million year-over-year.
- Warranty costs have increased due to inflationary pressures and claims on high-volume vehicles, leading to a $700 million year-over-year adjustment in the third quarter.
- The company anticipates lower earnings in the fourth quarter due to factors such as supply chain disruptions and seasonal production slowdowns.
- GM faces fierce competition and a tough regulatory environment, necessitating a focus on optimizing ICE and EV margins.
- Despite progress, GM's EV business is still working towards achieving profitability, with ongoing efforts needed to drive improvements across the business.
Good morning, and welcome to the General Motors third-quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this conference call is being recorded Tuesday, October 22, 2024.
I would now like to turn the conference over to Ashish Kohli, GM's Vice President of Investor Relations.
Thanks, Amanda, and good morning, everyone. We appreciate you joining us as we review GM's financial results for the third quarter of 2024. Our conference call materials were issued this morning and are available on GM's Investor Relations website. We're 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. Dan Berce, President and CEO of GM Financial, will also be joining us for the Q&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
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