SOUTHFIELD, Mich., Aug. 28, 2025 /PRNewswire/ -- Industry brand loyalty rates declined slightly in the first half of 2025 following last year's rebound, according to a new S&P Global Mobility analysis of new vehicle registration data through June.The industry's brand loyalty rate through June stood at 51.1%, down 1.4 percentage points (PPs) from the same period in 2024. The decrease marks a reversal from 2024's year-over-year gain, showing continued volatility in loyalty trends as the market continues to st ...

Core Viewpoint - General Motors (GM) is making significant strides in its investments in brands and electric vehicles (EVs), which is positively impacting its business performance and stock buybacks [1][2]. Investment in Brands - Chevrolet has emerged as the No. 2 selling EV brand in the U.S. during the second quarter, showcasing the effectiveness of GM's investments [2]. - The Chevrolet Equinox EV has been a standout model, achieving record sales in July and contributing to a 115% increase in GM's total EV sales compared to the previous year [3][4]. Sales Performance - The Equinox EV's sales reached over 8,500 units in July, accounting for nearly half of GM's total EV sales of approximately 19,000 units for that month [3]. - Chevrolet recorded its best first-half sales since 2019, with a 9% increase, driven by strong performance in its crossover lineup, particularly the Equinox [5]. Technological Advancements - GM's engineers achieved a new industry milestone with the Chevrolet Silverado EV, reportedly traveling 1,059.2 miles on a single charge, surpassing the previous record held by Lucid Air Grand Touring [7]. - The Silverado EV's efficiency was measured at 4.9 miles per kilowatt-hour (kWh), slightly below Lucid's 5 miles/kWh, but the achievement highlights GM's advancements in EV technology [8]. Overall Implications - While Chevrolet is a key brand, GM's overall investment strategy and brand management indicate a complex and potentially lucrative investment opportunity in the automotive industry [9].

Financial Data and Key Metrics Changes - The total company revenue for the first half reached a record $91 billion, driven by strong demand and stable vehicle pricing [24] - Adjusted EBIT for the quarter was $3 billion, down $1.4 billion year over year, primarily due to a net tariff impact of $1.1 billion [32][33] - Adjusted automotive free cash flow was $2.8 billion, down $2.5 billion year over year, mainly due to tariff payments and lower dealer inventory levels [33] Business Line Data and Key Metrics Changes - North America revenue was nearly $77 billion for the first half, slightly up year over year, with U.S. market share reaching 17.3%, a 1.2 percentage point increase [25][28] - The Chevrolet Equinox saw total sales rise more than 20% compared to the same period last year, gaining nearly six points of retail market share year over year [10][28] - GM International delivered second quarter adjusted EBIT of $200 million, an increase of $150 million year over year, driven by improved profitability from China [39] Market Data and Key Metrics Changes - In China, GM reported its second consecutive quarter of year-over-year sales growth, being the only foreign OEM to gain market share [7][8] - The U.S. automotive industry saw a spike in demand due to tariff-related sales pull ahead, particularly in April and May, before normalizing in June and July [8] Company Strategy and Development Direction - The company aims to grow its U.S. manufacturing footprint and domestic supply chain while strengthening its international business and innovating in batteries, software, and autonomous technology [6][7] - A $4 billion investment in U.S. assembly plants will add 300,000 units of capacity for high-margin vehicles, helping to reduce tariff exposure and meet customer demand [16][19] - The company is focused on improving EV profitability through new battery chemistries and lighter vehicle architectures [47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience and ability to adapt to new trade and tax policies, with a focus on long-term profitability in electric vehicle production [6][19] - The guidance for EBIT adjusted remains in the range of $10 billion to $12.5 billion, with EPS diluted adjusted expected between $8.25 and $10 per share [40] Other Important Information - The company has booked $4 billion of deferred revenue from software services, which will be recognized over time [13] - The projected Super Cruise revenue is expected to exceed $200 million in 2025 and more than double in 2026 [14] Q&A Session Summary Question: Can you walk through the accounting for the $600 million related to EVs? - The adjustment reflects potential losses on inventory due to market expectations and pricing pressures, which is expected to improve as inventory stabilizes [50][52] Question: What would be the impact if tariffs with key countries were reduced? - A reduction in tariffs would have an immediate positive impact, and the company expects to offset at least 30% of the tariff impact through strategic actions [54][56] Question: How do you reconcile pricing assumptions for the second half? - The company maintains a pricing assumption of a 0.5% to 1% increase for the year, despite challenges in fleet pricing due to increased competition [63][66] Question: What is the strategy for EV profitability given regulatory changes? - The company is focused on improving EV profitability through battery technology advancements and lighter vehicle designs, while also maintaining a diverse EV portfolio [70][73] Question: How will tariff impacts evolve beyond this year? - The company anticipates that tariff costs may decrease as trade deals are finalized and production adjustments are implemented [80][82]

Investment Overview - General Motors is investing $4 billion in U.S. plants over the next two years to enhance the manufacturing of gas and electric vehicles [1] - This investment will enable the company to assemble more than 2 million vehicles annually in the U.S., an increase from the previous production of approximately 1.7 million vehicles [2][4] Strategic Initiatives - The investment follows a recent allocation of $888 million for the Tonawanda Propulsion plant to support the production of the next-generation V-8 engine [1] - GM plans to expand production at various plants, including the Orion Assembly plant for gas-powered SUVs and light-duty trucks starting in early 2027 [7] - The Fairfax Assembly plant will begin producing the gas-powered Chevrolet Equinox in mid-2027, with significant demand noted as sales rose over 30% year over year in Q1 2025 [8] Market Context - The investments align with broader industry commitments to bolster U.S. manufacturing and support American jobs amid tariffs imposed by the Trump administration on imported vehicles and auto parts [3][6] - GM's CEO, Mary Barra, emphasized the belief that the future of transportation will be driven by American innovation and manufacturing expertise [2] Future Projections - GM's annual capital spending is projected to be between $10 billion and $12 billion through 2027, reflecting increased investment in the U.S. and prioritization of key programs [9]

Financial Data and Key Metrics Changes - GM reported a revenue increase of over 9% year-over-year to $187 billion and record adjusted EBIT of $14.9 billion for 2024 [25][26] - The company has successfully launched several vehicles across its profitable ICE portfolio and growing EV business, strengthening its product portfolio [25] Business Line Data and Key Metrics Changes - GM became the number two seller of EVs in North America in the second half of the year, indicating strong growth in the EV segment [26] - The redesigned ICE SUVs, including Chevrolet Equinox, Traverse, and Tahoe, have been well received, contributing to market share growth [29] Market Data and Key Metrics Changes - GM's shareholder returns outperformed key competitors and the S&P 500 index last year, reflecting strong market performance [26] - The company is focusing on agile execution and innovation to align with consumer demand for ICE vehicles and the evolving regulatory environment [28] Company Strategy and Development Direction - GM is committed to achieving carbon neutrality in global products and operations by 2040, with a focus on reducing supply chain emissions [14][15] - The company is enhancing its manufacturing capabilities and supply chains in response to shifts in global trade policy [27][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in GM's ability to adapt to the new trade policy environment and emphasized the importance of American manufacturing [27] - The company is optimistic about its future, citing strong management and a commitment to teamwork and customer loyalty [32] Other Important Information - The board of directors has been refreshed to ensure diverse viewpoints and skills, with a focus on long-term shareholder interests [24][25] - The shareholder proposal on supply chain GHG emissions reduction strategies was not approved, indicating a lack of consensus on this issue [20][32] Q&A Session Summary Question: Board's succession process and AI expertise - The board's governance committee discusses a five-year succession plan and considers recruiting new directors based on strategic needs, with existing members possessing a range of skills including AI expertise [34] Question: Plans for Apple CarPlay in next-gen EVs - GM is focused on providing a holistic infotainment system that integrates seamlessly with vehicle functionality, rather than relying on external phone-based solutions [35][36] Question: Commitment to community initiatives - GM has increased corporate giving, focusing on road safety and STEAM education, while aligning investments with economic development in Detroit [38] Question: Access to GM Heritage Museum - The project for the museum will not be complete until the end of 2026, after which GM will consider how to allow shareholder access [40][41] Question: Plans for a seven-passenger SUV plug-in hybrid - GM is developing plug-in hybrids in strategic segments but has no specific announcements at this time; the Cadillac Bistric is highlighted as an option for customers [42][43]