GM(US:GM)2025-10-21 13:30Financial Data and Key Metrics Changes - Total company EBIT-adjusted was $3.4 billion, down $700 million year over year, impacted by a gross tariff of $1.1 billion [16][17] - Adjusted automotive free cash flow was $4.2 billion, aided by $300 million in cash tariff offset reimbursements [17] - North America delivered Q3 EBIT-adjusted margins of 6.2%, with record crossover deliveries and strong performance of full-size pickups and SUVs [17][18] Business Line Data and Key Metrics Changes - EV sales reached record levels in Q3 with 67,000 deliveries, securing a 16.5% share in the U.S. EV market [18] - Warranty expense was a $900 million headwind year over year, indicating a need for improvement [19] - GM Financial posted Q3 EBIT-adjusted of $800 million, continuing to deliver value for customers and dealers [20] Market Data and Key Metrics Changes - In the U.S., GM achieved a market share of 17%, up 50 basis points year over year [14] - GM China market share grew 30 basis points year over year to 6.8%, with equity income rising to $80 million [20] Company Strategy and Development Direction - The company is focused on returning North America to historical EBIT margins of 8% to 10% by improving EV profitability and managing fixed costs [11][25] - GM is investing in new battery technologies and expanding U.S. production capacity to enhance competitiveness [5][10] - The company plans to maintain capital discipline while addressing production and creating new jobs in the U.S. [6][25] Management's Comments on Operating Environment and Future Outlook - Management raised full-year guidance based on strong performance and ongoing disciplined execution [4][21] - The company expects EV demand to soften in the near term but remains committed to improving EV profitability [18][46] - Management anticipates 2026 to be even stronger than 2025, driven by various operational improvements [24][22] Other Important Information - A $1.6 billion special item charge was recorded in Q3, primarily related to the transition of Orion Assembly from EV to ICE production [8][9] - The company is actively managing supply chain challenges, particularly concerning chip supply from China [6][64] Q&A Session Summary Question: Can you dive into the updated tariff disclosure? - The President's announcement expanded the MSRP tariff offset, allowing for more eligible parts, leading to savings on tariffs [28] Question: What are the preliminary high-level industry or macro factors for 2026? - It is too early to speculate on 2026, but the company has tools to lower costs and drive better performance [31] Question: How will shifting emissions regulations affect ICE vehicle sales? - The company anticipates being able to sell internal combustion engine vehicles for longer due to changing regulations [35] Question: What is the outlook for EV profitability? - The company sees EVs as a priority and is focused on improving profitability through cost reductions and maintaining discipline in production [46][48] Question: What is the status of GM Financial's portfolio performance? - The portfolio performance remains resilient, with a strong mix of prime customers and stable charge-offs [69]