Joseph Spak: Thanks. Good morning, everyone. Just to follow up again on the Ultium strategy and some of these changes here. How flexible are you finding that program is to be able to make these changes? And are some of these learnings you talked about that you plan to implement on Silverado also scalable to the other products or should we think that — basically, should we think about there being a need for like an Ultium 2.0 platform in the couple of years versus what we’re seeing today in the market?
Mary Barra: As we’ve already said, the Ultium platform is chemistry-agnostic. And so, we will continue to look to make programs. And as we go forward, we will adapt. There’ll be, I think, Ultium 2.0 as we get into the latter part of this decade, as well as many other parts of the vehicle. Again, I think it’s hard to really explain without being in person. And we’ll do this when we’re together at our Investor Day, of the simplification that we can do to the vehicles that makes them easier to build. And, frankly, the mindset change we’ve had from a complexity perspective is pretty significant. So, again it’s yes, there’s going to be improvements. We’ll continue to drive efficiencies in the Ultium platform. But it’s also, broadly, across the entire vehicle.
Joseph Spak: Okay. And then, Mary, on the — there was a comment about the Ohio battery JV being able to be at full capacity by the end of this year. I think that’s like 35 gigawatt-hours if I recall correctly. So, how does that JV, which I know you’re only part owner, plan to balance that with GM’s own EV demand? Is there going to be a continued ramp there and produce, and maybe build some stock or look for additional offtake? And also, does this revised EV timeline impact any of the other battery JVs coming online?
Mary Barra: No, we plan on having the ramp at Lordstown will continue as it is. And the plant in Spring Hill comes online next year. And then we have plant three in Michigan that follows, and then the work with Samsung. We’ll keep all of those on track because we believe strongly that we need those cells. Now, obviously, if we have to evaluate and slow something down, but at this time we don’t see a need to do that with the plans that we’ve outlined here.
Joseph Spak: Okay, thank you.
Mary Barra: Hey, Joe, just on that, again, I want to reiterate. We’re going to respond to demand. And we’re going to make sure we have the right products at the right time, but we’re not overbuilding.
Joseph Spak: Perfect. Thank you.
Operator: Thank you. Our next question comes from John Murphy with Bank of America. Your line is open.
John Murphy: Good morning everybody. Mary and Paul, when you think about the capital commitment that’s going on in the business lobby, it’s always very large, but with EVs and things that are shifting on technology and products, product plans, it seems a little bit more uncertain, a little bit more dynamic, and it has historically. Do you think about returns on capital as we shift into this EV world? Can they potentially be higher and shorter-dated? So, they give you more flexibility to make changes like you just did with the vault, or are we still thinking about sort of seven to 10 year decisions like we did on the ICE side? I think there’s a lot of folks that think this is a real risk, but it sounds like it also might be an opportunity to be more flexible?
Paul Jacobson: Yes, good morning John. Paul, I think that’s what we’re aiming to and I think creating the foundation of reducing complexity and buildable combinations and more simpler engineering design manufacturing, I think is going to give us that agility going forward. I think the other thing that you’re going to see us, and I think the Orion announcement is a good example of this, is we’re also engineering improvements on the fly. So, I think if you look at the historical record, it would be you produce a vehicle, you would identify some improvements in customer features, profitability, et cetera and you’d wait for a mid-cycle model improvement to actually go in and implement those changes. It’s really more of a mindset that’s, I would say more conducive to software that says, here’s an opportunity to really improve the profitability, the capability of the vehicle, let’s go ahead and put it in line.
So, the Orion decision represents an early application of that where we’ve seen a slowing in the demand growth create the opportunity to go in and build these from the ground up as we expand and scale up. And I think it’s going to make us more nimble in the future and ultimately lead to more consistent ROIC.
John Murphy: And then just one follow-up on the strength in sales year-to-date, the U.S. market really seems to be buoyed by fleet sales more than retail at the moment and you guys usually have a better line of sight and visibility into orders from your fleet customers. So, one, if you can confirm that strength has really been driven by fleet relative to expectations at the beginning of the year. And two, is there visibility that this is going to last kind of like it did in ’10, ’11, and ’12 sort of as a consistent driver of the upside of the cycle early in the cyclical recovery?
Paul Jacobson: Well, I think, John, we’ve been consistently talking about pent-up demand from the last couple of years, and that’s been really evident in the fleet customers. But I would say that the retail share gains and the performance of the retail customer has been strong as well. In fact, we’ve seen gains in market share pretty consistently this year, both from fleet and from retail, while we’ve increased production, while we have kept incentives down, and while we have reduced marketing spend. So, I think it’s a real testament, especially to the North America team for what they’ve performed through and what they’ve done in the face of that strength. And while we hear reports out there in the macro that consumer sentiment might be weakening, et cetera, we haven’t seen that in demand for our vehicles, and we’ve been pretty consistent about that on the retail side as well.
So, we’re continuing to enjoy that, and I think we’re operating from a much more disciplined lens around margin improvement as a result of what we’ve seen in that transformation.
John Murphy: Okay. Thank you very much.
Operator: Thank you. Our next question comes from Emmanuel Rosner with Deutsche Bank. Your line is open.
Emmanuel Rosner: Thank you very much. Good morning. First, a couple of clarifications on the 2025 targets for the EV business, so, low to mid-single-digits margin. I think when you initiated that guidance, this was excluding the IRA sale manufacturing credit, but I think including them, you could have gone to mid to high single-digits. Is that still very much the case, or are you saying that now including IRA, you would be at the low to mid-single-digits? And then on the volume piece, or I guess the capacity piece, to the extent that your capacity is flexible between EVs and ICE, would you consider reducing the 2025 EV capacity target in the future of the industry dynamics or demand that was weaker than expected?
