Daniel Ives: Thanks. And then just a quick follow up. You know, obviously price cuts that we’ve seen Tesla, Ford, but it doesn’t seem like GM is going down that path. Can you just hit on that concept? You know, that’s a big focus of investors.
Mary Barra: Sure. When we look at our strong product portfolio and the interest that we have at the prices that we’ve already announced, we feel that we’re well positioned. Even going into the first month of the year, we’ve seen a very strong customer interest in our products and so we think right now we’re priced where we need to be. Of course we’re going to monitor it and we’ll make sure we remain competitive, but we really think with the strength of our product portfolio and what we have coming, we’re positioned well.
Daniel Ives: Thanks, congrats.
Mary Barra: Thank you.
Paul Jacobson: Thank you, Dan.
Operator: Thank you. And our next caller is Rod Lache with Wolfe Research. You may go ahead, sir.
Rod Lache: Good morning, everybody. I just wanted to maybe just first follow up on Dan’s question. Look, I know based on the prices that you’ve laid out for Equinox, Blazer, LYRIQ, that demand for the near-term is much greater than your ability to supply. But at the same time you’re only assuming double or low single digit EBIT margin for EVs by mid-decade. And one of your peers is already at 20% gross and pretty healthy EBIT and their costs are still falling. So my question is whether there are changes that you’re contemplating or that you could make to close in on that benchmark and generate similar margins any faster?
Paul Jacobson: Hey, Rod, Paul and thanks for the question. Thanks for being on. You know, I think it’s important to note that as we look across the competitive landscape, that competitor you referenced wasn’t there in the beginning either, right? There’s a lot of scaling that we’re doing across the board. So as we’re running concurrent operations with ICE and EV there’s obviously some frictional costs on utilization, et cetera, that we expect to be able to scale as we go through this transformation. The ICE portfolio remains really strong, but we’re also building the EV factories for the future. And clearly the production levels that we see now and as we’re ramping up aren’t there yet. So we expect a tremendous level of operational synergies.
We’re also going to manage the business aggressively. I think the $2 billion cost reduction program that we’re announcing today is a strong testament to that and making sure that we’re driving efficiencies as we ramp up those productions. So it’s not a, I don’t think a direct apples-to-apples comparison, but one that we’re obviously aware of. On the pricing front the demand is really, really strong for all of our vehicle programs going forward and we feel good about where we’re going in the trajectory that we’re on.
Rod Lache: Okay. Thank you. And just secondly the — you referenced that $2 billion cost savings, what does that mean for structural cost expansion? And may be related to that, this 5% to 10% volume assumption that you’ve suggested would seem to imply that you don’t see affordability or rates as a major impediment to growth at this point? Am I interpreting that correctly, or are you in fact making more room for pricing with this cost saving assumption?
