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- **Record Q3 Performance**: $3.4 billion EBIT-adjusted, 17% U.S. market share, and $4.2 billion free cash flow highlight strong execution.
- **U.S. Production Expansion**: $4 billion in new plants, including 2x Equinox output and V8 engine plant, targeting 2 million U.S.-built vehicles/year.
- **EV Strategy Adjustment**: $1.6 billion charge for Orion transition and cell plant sale, with EV losses expected to improve through cost reductions.
- **Tariff Mitigation Success**: 35% of $3.5-4.5 billion tariff impact offset, 2026 net exposure expected lower than 2025.
- **Software Growth Engine**: $2 billion/year software revenue with 70% margins, Super Cruise adoption nearly doubling year-over-year.
- **2026 Outlook**: Targeting 8-10% North America margins, lower EV losses, and disciplined capital allocation.

**【CEO Summary Section】**
- GM achieved record Q3 2025 results with EBIT-adjusted of $3.4 billion, up 15% year-over-year in North America.
- U.S. market share reached highest since 2017 at 17%, driven by strong ICE vehicles and disciplined pricing.
- Announced $4 billion in U.S. production investments, including doubling Chevrolet Equinox output in Kansas and new V8 engine plant in New York.
- Transitioned Orion Assembly from EV to ICE production and sold Michigan cell plant to LG Energy Solution, resulting in $1.6 billion special item charge.
- EV sales reached 67,000 units (16.5% U.S. EV market share), with EV losses expected to improve through cost reductions and capacity right-sizing.
- Software and services revenue (e.g., Super Cruise) grew to $2 billion year-to-date with 500,000 active customers, targeting double-digit growth and 70% margins.
- Raised full-year guidance to EBIT-adjusted $12-13 billion, EPS $9.75-10.50, and free cash flow $10-11 billion.

**【CFO Financial Commentary】**
- Adjusted automotive free cash flow of $4.2 billion, driven by $300 million in cash tariff offsets and strong inventory management.
- U.S. incentives remain below industry average for 10th consecutive quarter, with EV incentives 50% lower than competitors.
- Warranty expense stabilized at $900 million, with initiatives to reduce costs through data analytics and process improvements.
- GM China returned to profitability with 6.8% market share, while GM International (ex-China) delivered $150 million EBIT-adjusted.
- GM Financial contributed $800 million EBT-adjusted and paid $350 million dividend, supporting 15% diluted share count reduction year-over-year.
- 2026 outlook includes lower net tariff exposure, improved EV profitability, and return to 8-10% North America EBIT margins.

**【Q&A Highlights】**
- **Tariffs & Trade Policy**: Expanded MSRP offset program will reduce 35% of $3.5-4.5 billion gross tariff impact in 2025, with 2026 net exposure expected lower than 2025. Korea and Mexico trade deals pending resolution.
- **EV Demand & Profitability**: Q3 EV demand surged ahead of credit expiration, but October sales softened. GM will build to demand, focusing on improving EV gross margins through LMR battery tech and capacity right-sizing.
- **Supply Chain Resilience**: Onshoring investments (e.g., $1B V8 engine plant) and supplier partnerships mitigate semiconductor and chip risks. China chip supply chain disruptions being actively managed.
- **Warranty Cost Management**: Proactive fixes (e.g., transmission component replacements) reduced cash outflows, with ongoing initiatives to leverage AI and OnStar connectivity.
- **Autonomy & Software Growth**: Super Cruise adoption nearly doubled year-over-year, with Google Maps integration and next-gen software-defined vehicles in development. Cruise team focused on personal AVs with 70%+ margin potential.
- **China Strategy**: GM remains focused on high-quality vehicles with technology leadership, competing on a level playing field despite regulatory challenges.

General Motors Company (GM) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

GM

GM fundamentals

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