General Motors Company (NYSE:GM) Q4 2023 Earnings Call Transcript

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Chris McNally: No, that’s — and just in terms of the evolution of the speed, is it a technology bottleneck? Or is it more just marketing? Meaning, like you thought of it as a premium product, you charge sort of a premium rate compared to other GM add-ons? Or is it just like you said, there’s a cost to putting it on every vehicle on the RD&E. So that could increase, but it would obviously be an engineering cost to get it on more vehicles.

Mary Barra: Yes. No, we are committed to getting it on many vehicles as possible. In some cases, we had planned to make it standard. The semiconductor shortage kind of slowed us down on that because if [indiscernible] building a vehicle at all or waiting to build it with Super Cruise. So we are very committed to getting across many vehicles. We’ve dramatically taken the cost down on the technology. So it’s a really good value. And in my opinion, we’re deploying it as quickly as we can. And it’s really just with — there is engineering required and some sensors required when you add it to a new vehicle, but we’re doing that in a very cadenced but as quick as possible fashion.

Chris McNally: Great. Thanks so much.

Operator: Thank you. Our last question comes from the line of Tom Narayan with RBC. Your line is open.

Gautam Narayan: Yes. Thanks for taking the question. Just wanted to kind of make sure I got all the good points here on the bridge in 2023 to 2024 — sorry, a boring question. You have, I guess, price down 2% to 2.5%, $200 million cost savings, Cruise down $1 billion, higher labor 1.3. Three items not quantified were market share gains, you guys called out in the slide, EV margin improvement, and the third is lower mix. Just curious if we could get a sense of order of magnitude for those three last buckets?

Paul Jacobson: Tom, I’ll suggest that we take that off-line, work through any modeling details. But at the end of the day, clearly, the commercial market, as we talked about, we expect to be relatively stable and pricing down 2% to 2.5%. Not going to get into the specifics about how we’re thinking about market share gains other than to say, fairly consistent about what we’ve been doing for the last few years going forward. And then on EVs, a lot of that, we will continue to talk about as we come to sort of later Investor Day and subsequent calls going forward. I think we’ve given good detail on the overall walk on vehicle program level.

Gautam Narayan: Okay. Sure. And as a quick follow-up, typically, when — if an OEM, let’s say, changes production levels, so in this case, EV, if you move to plug-in hybrids or what have you, there are monies that get paid to suppliers, right, for that, let’s say, they have to cut production of EV components. Just curious if those supplier concessions if you were to, let’s say, reduce EV production or shift to plug-in hybrids with — are those something that you’ve envisioned in the 2024 guidance?

Paul Jacobson: So Tom, I think our — we’ve got great relationships with our suppliers and a team that works very, very closely with them. They have been, I would say, very patient with us over the last few years, because we’ve had a lot of volatility. And in those situations where we need to help, we’ve been willing to do that going forward. And we always look at both efficiencies and any challenges in our annual budget process, and this year is no different.

Gautam Narayan: Okay. Thank you.

Operator: Thank you. I’d now like to turn the call over to Mary Barra for her closing remarks.

Mary Barra: Thank you very much. And thanks, everybody, for your questions. I’d like to share just a couple of thoughts before we close. Fundamentally, we believe we are well positioned to have a strong year, thanks to our success in high-margin and growing ICE segments, our expanding EV portfolio, our cost discipline and our continuous improvements to design, engineering, supply chain, manufacturing and marketing process improvements. In addition, we are prioritizing the return of cash to our shareholders on a consistent basis as we execute the plan. We know we must execute in every part of the business in 2024, not just ICE. And I can assure you we will. So thank you for your continued support and for joining today’s call, and please stay safe.

Operator: That concludes the conference call for today. Thank you for joining.

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