GM's Strong Performance and Commitment to EVs and Self-Driving Technology
2024-02-02
General Motors Company recently held its earnings call on January 30, 2024, with Ashish Kohli, GM's vice president of investor relations, conducting the call. The participants in the call included Mary Barra, GM's chair and CEO; Paul Jacobson, GM's executive vice president and CFO; and Dan Berce, president and CEO of GM Financial.
During the call, Mary Barra highlighted GM's strong performance in 2023, with the company selling more vehicles in the U.S. than any other automaker. All of GM's U.S. brands experienced sales growth year over year, and the company gained U.S. market share with healthy margins. Barra also mentioned that GM expected healthy industry sales of about 16 million units in 2024 and believed that the U.S. economy, job market, and auto sales would continue to be resilient.
GM's position in the pickup, full-size van, and full-size SUV sales market was also discussed, with the company leading the industry in these segments. Additionally, enhancements were mentioned for Chevrolet's Crossover lineup, including the availability of Super Cruise on the Traverse for the first time and the introduction of a new premium Z71 off-road model.
Financial results for the company in 2023 were reported, with full-year EBIT-adjusted of $12.4 billion and adjusted auto free cash flow of $11.7 billion. The company also retired 215 million common shares in the fourth quarter and returned almost two-thirds of its cash to shareholders through dividends and share repurchases.
GM's priorities and commitments were outlined, which included maximizing opportunities with their ICE portfolio, growing the EV business profitably, delivering strong margins and cash flow, and refocusing and relaunching Cruise. The company planned to produce and wholesale 200,000 to 300,000 Ultium-based EVs in North America that year, guided by customer demand.
The call also touched on GM's strategy for building a better Cruise, with significant changes being implemented to earn back trust with regulators and the public, develop new financial targets and a new roadmap, and invest in software, specialized hardware, and AI capabilities. GM's vision for self-driving technology was highlighted, aiming to deliver the safety benefits of self-driving technology and create a scalable, profitable business.
Other topics covered in the call included updates on the production status of joint ventures, the company's plan for their EV business, improvements made to battery module production, and efforts to resolve software and stability issues with the Chevrolet Blazer EV. The company's outlook on EV growth, the impact of the strike on financial performance, and the expected range for EBIT-adjusted and EPS diluted adjusted in 2024 were also discussed.
Overall, the earnings call provided insights into GM's strong performance in 2023, its focus on EVs and self-driving technology, and its commitment to delivering value to shareholders while navigating challenges and capitalizing on opportunities in the automotive industry.