Q1 2025 General Motors Co Earnings Call Transcript
Key Points
- General Motors Co (GM) reported a 17% year-over-year increase in US sales, outpacing every other major automaker.
- The company gained nearly two full points of market share in the US, reaching 17.2%.
- GM's first quarter share of the US EV market rose to 12% in March, solidifying its position as the number two EV seller.
- The company achieved $3.5 billion in EBIT adjusted, with a margin of 7.9%, and $2.78 in EPS diluted adjusted.
- GM's redesigned ICE SUVs, including the Chevrolet Equinox, Traverse, and Tahoe, are more profitable than the prior generation due to capital efficiency and manufacturing improvements.
- General Motors Co (GM) faces a $4 billion to $5 billion impact from tariffs, affecting vehicles imported from Korea, Mexico, and Canada.
- The company experienced cost pressures and lower full-size pickup wholesales due to planned downtime for plant upgrades.
- FX was a headwind of around $300 million in the quarter, primarily due to weakness in the Mexican peso.
- Fixed costs increased by $400 million year-over-year due to higher depreciation, ongoing warranty pressure, and higher labor costs.
- The company is moderating EV production to align with consumer demand, which may reduce scale-driven profitability improvements.
Good morning, and welcome to the General Motors Company first quarter 2025 earnings conference call. (Operator Instructions) As a reminder, this conference call is being recorded, Thursday, May 1, 2025.
I would now like to turn the conference over to Ashish Kohli, GM's Vice President of Investor Relations.
Thanks, Julie, and good morning, everyone. We appreciate you joining us as we review GM's financial results for the first quarter of 2025. Our conference call materials were issued this morning and are available on GM's investor relations website. We are also broadcasting this call via webcast.
Joining us today are Mary Barra, GM's Chair and CEO; and Paul Jacobson, GM's Executive Vice President and CFO; Susan Sheffield, President and CEO of GM Financial, who has taken over from Dan Berce after his recent retirement, will also be joining us for the Q&A portion of the call.
On today's call, management will make forward-looking statements about our expectations.
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