Dan Levy: Hi, good morning. Thank you for taking the questions. I wanted to start first with just a question on the volume versus price mix interplay. Pre-COVID, you were at, call it — anywhere from 3.2 million to 3.6 million units of annual volume. And this year on some of the consensus numbers, strike aside, will be closer to call it, 3 million units. Now you’re absorbing more in the way of labor costs. I think we’re waiting to see what happens with EVs, but most would view EVs to be a cost challenge. So, you’ve already done a really good job showing us the benefits of mix and pivoting to profitable units. I think that was something you alluded to in your prepared remarks and really a business that in a way, shown slight pivots away from volume. How much more do you think the business can focus more on mix and profitable units and relatively reduced focus on volume?
Mary Barra: Well, Dan, I appreciate the question. We really want to focus on both, but it’s got to be profitable growth. When you look at the EVs and even our ICE vehicles, I just mentioned that the Trax 50% of the customers for the new Trax are new to General Motors. So, from an EV’s point specifically, we think that along the coast where EV adoption is higher, that’s going to be a growth opportunity for us over the next several years. And we’re going to just focus on continuing to have winning ICE and winning EV products that people want to buy. And so, I don’t I felt like your question is saying, are you just going to shrink? And the answer is no. That’s not our intent. Our intent is to be profitable and then grow and expand, and we think we have the opportunity to do that.
Paul Jacobson: And Dan, I think I’ll add that, I think the challenges of the last few years, I think have taught us a lot about ourselves and about the quality of our products. And it all starts with that when you create products that customers love. You have an opportunity to think about the business. So, while the profitability and the margins have gone up. We’ve been really focused on that. But some examples of that are what we’re doing with buildable combinations, what we’ve been doing with marketing spend, et cetera, it’s really focused on driving at the unit level, the margin improvement across the board. So, focusing on those premium mixes where we know the demand is focusing on the premium vehicles where there’s supply constraints.
Those are lessons that we can take into the future going forward and are going to help us not just with ICE profitability and margins, but also help pave the way for an EV strategy that is really focused on consistent margin performance going forward. So, incredibly proud of what the organization has done, and certainly think there’s more to come. Now we’ve been doing all of this in a lower SAAR environment and feel really good about our ability to continue that should we get back to more historical normal levels at higher volumes across the board. So, I think it’s been good lessons learned, and you never let a good crisis go to waste. And I think that’s where we’ve seen some really good long-term permanent learnings for the organization.
Dan Levy: Great. Thank you. And then, second question, I wanted to just go into the dynamics behind the battery plants. Thank you for the commentary earlier that you’re starting to run at capacity on Lordstown. Spring Hill that sounds like that’s a slight delay. I think that was just the launch this year staying at 2024. Lansing is after that. Maybe you could just give us a sense on where the other two battery plants stand? And to what extent is the gating factor more on supply versus more so listening to the near-term demand. And if you need to, you can delay some investment to ramp on the other two battery plants?
Mary Barra: So, as I mentioned before, we will have the Lordstown plant up full capacity at the end of this year, which then allows for it to have a full-year next year. The Spring Hill plant will start early next year. There was a couple of weeks, it was supposed to originally start at the end of this year. There was a couple of weeks due to some construction delays but it now is on track, and it will ramp with all the benefit of the learnings. And we fully believe we’re going to need all the cells from both of those plants. And then, when you get to the Michigan plant, again, we think that there’s going to be demand there as we continue to though be agile and resilient and build to where customer demand is, we can obviously make some changes there.
But right now the cadence I talked about is when those plants start and that the fourth plant will be likely very early ’26 having good, good progress with Samsung. So, we’re not slowing the ramp of the battery plants down at all. I think as you know, battery cells are the constraint of the industry. And so, we’re going to — we think we’re going to need all of those even with this ramp change that we’ve made with Orion and some of the other programs I mentioned it’s just — it’s a couple months in most cases.
Dan Levy: Great, thank you.
Operator: Thank you our next question comes from Colin Langan with Wells Fargo. Your line is open.
Colin Langan: Great. Thanks for taking my questions. The UAW made a big announcement — big deal about the concessions at the battery plant. Just wondering if you have any color there because I was a bit surprised because that’s in a joint venture, so I wasn’t sure how you actually could give concessions. Any color on what the nature of that agreement is and how you’re able to kind of come to terms with them there?
Mary Barra: Right now the Ultium team that is a separate company is negotiating, that the employees at Lordstown voted to unionize, and so that local leadership team is negotiating with the UAW to have their own agreement. We did have some conversations and we did put an offer on the table that would put the Ultium cells under the scope of the master agreement and we believed at the time that it would allow for which it must have benchmark economics and also operating flexibility because the battery cell plant is very different than some of the traditional operations we won right now, but at this point that offer remains open, but the focus is on Ultium getting their own agreement.
Colin Langan: Got it. Just we’re still in early days at EVs. There seems like demand is eased already and it’s great that you have the flexibility to kind of switch between EV and ICE, but the regulations in the U.S. kind of push easy at least at some point in the future, do you think there’s any change in the tone of Washington of potentially pushing out some of those targets, doesn’t it become a bit of a challenge of consumers aren’t interested in buying EVs and you’re just the only way to sell them would be to hit your margins, right?
Mary Barra: Yes. I mean, obviously, we provide regular input into the administration and the regulatory agencies. I’ve been very clear and on the record that the regulations can’t get in front of EV demand at some of which is will be enabled by having a robust charging infrastructure. So, we regularly have those conversations, and we’ll do what it takes to meet the regulatory environment as well.
Colin Langan: Got it. All right, thanks for taking my questions.
Mary Barra: Sure.
Operator: Thank you. Our next question comes from Mark Delaney with Goldman Sachs. Your line is open.
Mark Delaney: Good morning. Thanks very much for taking the questions. I very much appreciate the plan to be flexible on the cadence of the EV ramp and the opportunity for GM to implement some incremental cost reductions, but given that scale was one of the key inputs in EV profits, can you just better understand if there is a certain minimum amount of volume that you may need to be yet in order to reach your load to mid-single-digit EV margin target in 2025?
