China Operations
Q: Is GM considering strategic alternatives in China due to profitability and geopolitical issues?
A: GM remains committed to China and anticipates substantial growth over the medium term. Despite recent challenges, NEVs account for about 30% of GM's China deliveries in Q1. The company plans an intense NEV launch cadence starting in Q2, introducing several PHEVs and full EVs. GM established the Durant Guild to focus on premium niche segments, with the Tahoe and Yukon available for preorder later this year.

EV Margin Outlook
Q: What are the key assumptions for achieving positive EV margins?
A: GM projects a 60-point EBIT improvement in 2024, with 60% driven by scale benefits from investments in infrastructure, battery plants, and supply chain. Additional improvements come from trims, launches, and material cost reductions. The LYRIQ's cost decreased by $12,000 year-over-year, reflecting this progress. As scale becomes less of a driver in 2025, material cost reductions will further enhance margins.

Pricing Assumptions
Q: How does GM view its 2%-2.5% negative pricing assumption?
A: The 2%-2.5% pricing decline is an assumption in guidance, not an expectation. April trends show average transaction prices slightly higher than post-Q1 levels. While acknowledging potential macro headwinds, GM notes the commercial environment remains resilient. Managing production in line with demand has favorably impacted pricing and margins.

Battery Costs
Q: How will lithium price reductions impact battery costs?
A: GM expects additional battery cost benefits in 2024 as lower lithium prices flow through. With depletion of higher-cost inventory by mid-summer, cells will reflect current pricing in the year's second half. Vertical integration efforts coming online from 2026 onward will further improve cost positions without locking in historically high prices.

Full-Year EBIT Guidance
Q: What factors temper full-year EBIT guidance compared to strong Q1 results?
A: Despite a strong Q1 annualizing at approximately $15.5 billion, GM maintains full-year EBIT guidance of $12.5 billion to $14.5 billion due to assumptions of a 2%-2.5% pricing decline and lower margins from scaling EVs compared to ICE vehicles. If pricing remains strong, there's potential to outperform current guidance.

EV Production Flexibility
Q: How flexible is GM's EV cost structure if demand weakens?
A: GM has built flexibility to adjust production based on customer demand. Actions like delaying the Orion plant allowed cost-reducing improvements. The company aims to grow capacity slightly ahead of adoption, focusing on a long-term strategy while being nimble in response to market changes.

Competition with Chinese Automakers
Q: What's GM's stance on competing with Chinese automakers globally?
A: GM focuses on delivering great vehicles at the right price to maintain global market share, emphasizing the need for a level playing field. In regions like South America, the strong Chevy brand and continuous cost reductions enable effective competition. The company aims to compete globally while advocating for fair trade conditions.

EV Pricing Strategy
Q: Does GM need to cut EV prices to meet volume targets?
A: Early results indicate strong retail demand for GM's EVs, with retail sales up about 20% year-over-year despite a 60% decline in Bolt sales. GM believes it can achieve its 200,000 to 300,000 unit production target without significant price reductions, thanks to superior performance and growing consumer interest.

Software Strategy
Q: What are GM's goals for its software and Ultifi platform?
A: GM aims to launch vehicles with quality software on time, having strengthened development and validation processes. The focus is on expanding subscriptions and services as new software reaches more vehicles. Progress under new leadership has bolstered confidence in achieving these goals.

UAW Agreement
Q: How has the UAW agreement impacted GM's current position?
A: The UAW agreement has improved GM's position, with module issues resolved and scaling of additional lines on track. The company is building strong relationships with UAW leadership, fostering collaboration and problem-solving. Overall momentum is positive, with aligned efforts across EVs and software advancements.