Paul Jacobson: I would characterize it a little bit differently, Rod. So success is going to be driven by, when we look at our fixed cost lines being down $2 billion, that’s what we’re looking for across the board, and we can get there and I think it comes across all areas of the business. What I would say is we’re being prudent about what we see out in the macro environment. Again, we continue to see strength in demand for our vehicles and strength in pricing. But we want to make sure that we’re driving efficiency where we can and felt like this was the right time to be able to do that. So we’re going to be measuring how we do it. We’re still focused on the growth areas of the portfolio, but we recognize that there are ways that we can do things more efficiently and we expect to be able to drive that into margin performance.
We’re not doing anything to prepare for a price war or we’re not doing anything in anticipation of a recession. I would say, it’s prudent cost management and just being aware of what’s around us.
Rod Lache: That number is net Paul; the $2 billion cost savings, or is that a gross savings objective?
Paul Jacobson: Net of
Rod Lache: Well, in other words, is there, are your structural costs expected to decline by $2 billion expansion, I guess is a simple way to ask it, or is that, are there other things that are increasing offset that?
Mary Barra: For our automotive business, we’re expecting our structural costs to go down $2 billion. So it is that.
Paul Jacobson: Full stop.
Rod Lache: That is very clear. All right thank you.
Paul Jacobson: Thanks.
Mary Barra: Thanks, Rod.
Operator: Thank you. And our next caller is Itay Michaeli from Citi. You may go ahead, sir.
Itay Michaeli: Great, thanks. Good morning everyone, and congratulations. Just two questions on the outlook. First, can you maybe share kind of what you’re expecting for the company’s revenue growth in 2023 to just kind of want to calibrate that with the 12% CAGR for 2025? And secondly, I was hoping you could also maybe quantify the drag this year from some of the investments like the Ultium ramp and some of the other investments that you’re making as well. It sounds like, while the guidance certainly looks robust, there’s certainly a lot of investments still flowing through, so I was hoping maybe you could quantify that as well? And maybe also just provide a quick update on the Lordstown ramp as well?
Mary Barra: So, Itay you were a little garbled, so let us try, I’ll take the last one. The ramp at Ultium and Lordstown, Ohio is on track going well. The team is really ramping up, really focused on quality and the two between LG Energy Solution and General Motors working really well together. So I’m very pleased. As I mentioned, Spring Hill is also on track, as is Michigan, and those three plants are really what enables us to achieve the goals that we’ve set for getting to 2025 and a million units in North America. So that’s all going really, really well. From a, I think the middle question you had was about, with the investments that we’re making Ultium to quantify, I think, we’ve talked about what those investments are, but they’re part of our capital program that we announced last year, this year and going into next year, so that’s part of it. And
Paul Jacobson: The first one was on the revenue growth Itay, so I’ll just jump in and say that we obviously experienced pretty significant revenue growth in 2022, driven by 25% increase in wholesale. We’re not expecting that similar jump in production in 2023. So we’re not giving any specific revenue guidance, but I would say that we would expect the growth rate to be below 2022 levels in line volume.
