China Performance
Q: What are the challenges and actions in China?
A: GM continues to face significant challenges in China, where very few people are making money due to intense competition and a race to the bottom in pricing. GM is being more disciplined in pricing and is taking steps to align inventory, launch new vehicles, especially hybrids and electric vehicles, and reduce structural costs. The company acknowledges that the current situation is unsustainable and is working on a three-pronged strategy to improve performance.

EV Strategy Amid Regulatory Changes
Q: Will potential changes in regulations alter GM's EV strategy?
A: GM plans to offer consumers choice with both EVs and ICE vehicles and has the flexibility to adjust its strategy regardless of regulatory changes. The company believes the EV market will continue to grow and is focusing on meeting consumer demand with new models like the Equinox and Bolt. GM is committed to maximizing opportunities between ICE and EV, and is well-positioned with investments creating thousands of jobs.

Second Half Pricing and EV Volume Sensitivity
Q: How does GM view pricing assumptions and EV volume sensitivity in H2?
A: GM is focusing on its own pricing strategy, and while it started the year assuming a 2% to 2.5% decline, the first half was essentially flat. July trends are similar to June, indicating stable pricing. Regarding EV volumes, GM initially guided 200,000 to 300,000 units but is now focusing on 200,000 to 250,000, shifting some targets from H2 to Q4 due to scaling and efficiency considerations.

Cruise Go-to-Market Strategy Shift
Q: Is GM changing Cruise's go-to-market strategy?
A: GM is shifting from the Origin to the Bolt for its autonomous vehicles to eliminate regulatory risks since the Origin does not meet current motor vehicle safety standards without legislative changes. Using the Bolt allows GM to be more capital efficient, scale better, and leverage over 5 million miles of AV experience. GM is also open to partners and investors for Cruise and is seeing significant interest.

Cost Savings and Marketing Spend
Q: How is GM progressing on cost savings amid higher costs?
A: GM is on track for its $2 billion fixed cost savings program, having achieved approximately $1.4 billion so far. A significant cost increase is $400 million in marketing spend from H1 to H2 to support new launches and drive customer awareness. Despite this, overall marketing spend is down significantly, and GM believes these investments will help scale and gain share in EVs.

Emissions Compliance Flexibility
Q: How will GM meet emissions targets amid regulatory uncertainty?
A: GM has multiple levers to comply with existing regulations, including portfolio planning, technology use, utilizing credits from prior and future years, purchasing credits, and maintaining a robust EV portfolio. The company regularly reviews its strategies and scenario plans to adjust based on EV adoption and regulatory changes. GM emphasizes the importance of regulatory certainty but has the flexibility to adapt.

Hybrid Strategy for 2027
Q: Will GM focus more on hybrids due to ambitious 2027 regulations?
A: GM plans to have hybrids in key segments by 2027 to meet regulatory requirements. The company can decide fleet composition based on the regulatory environment and views hybrids as one of the technologies to leverage.

Pricing Strategy and Sustainability
Q: Is GM's pricing strength sustainable despite inventory normalization?
A: GM has been disciplined in its commercial strategy, widening the gap against competitors despite some pressure on incentives. Demand remains strong, with truck sales up 5% in the quarter, helping offset lower average transaction price vehicles. GM expects consumer resilience to continue and attributes success to disciplined inventory management and a strong portfolio.

International Operations Outside China
Q: How are GM's other international markets performing?
A: Outside China, GM is seeing strong pricing, especially in South America where Chevrolet is considered a premium or luxury brand. The company has a strong portfolio with great brand loyalty and is able to hold pricing and compete effectively due to the value of its products.

Growth in EV Customer Base
Q: Will the trend of new customers choosing GM EVs continue?
A: GM expects the trend of attracting new customers with its EVs to continue and possibly accelerate, supported by fresh designs, performance, technology, and the right range. The new Equinox EV has received outstanding responses from dealers regarding its design, performance, and affordability, especially with the consumer tax credit. GM is investing in marketing to raise awareness and believes it is well-positioned for continued growth.