General Motors Company

Good morning and welcome to the General Motors Company third quarter 2025 earnings conference call. During the opening remarks, all participants will be in a listen-only mode. After the opening remarks, we will conduct a question and answer session. We are asking analysts to limit their questions to one and a brief follow-up. To ask a question, press star then one on your telephone keypad to join the queue. To withdraw your question, press star then two. As a reminder, this conference call is being recorded. Tuesday, October 21st, 2025. I would now like to turn the conference over to Ashish Kohli, GM's Vice President of Investor Relations.

Thanks, Amanda, and good morning, everyone. We appreciate you joining us as we review GM's financial results for the third 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, along with Paul Jacobson, GM's Executive Vice President and CFO. Susan Sheffield, President and CEO of GM Financial, 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. These statements are subject to risks and uncertainties that could cause our actual results to differ materially. These risks and uncertainties include the factors identified in our filings with the SEC. Please review the Safe Harbor Statement on the first page of our presentation as the content of our call will be governed by this language. And with that, I'm delighted to turn the call over to Mary.

Good morning, everyone. I want to begin by recognizing the dedication and hard work of our entire GM team, including our employees, dealers, and suppliers. Their agility in helping navigate a rapidly changing regulatory and policy environment while keeping our customers at the center has been outstanding. Thanks to their efforts and our leading portfolio of vehicles, we delivered another very strong quarter of earnings and free cash flow. In the U.S., we achieved our highest third quarter market share since 2017 with strong margins, and our restructured China business was profitable once again. Based on our performance, I'm pleased to share that we are raising our full year guidance. I also want to thank the President and his team for the important tariff updates they made on Friday. The MSRP offset program will help make U.S.-produced vehicles more competitive over the next five years, and GM is well-positioned as we invest to increase our already significant domestic sourcing and manufacturing footprint. We appreciate the administration's ongoing support for American innovation and jobs, and we look forward to progress on trade deals with countries like Canada and Mexico. As trade policies have evolved, we have acted with urgency and discipline to strengthen GM's position. Earlier this year, we announced $4 billion in capital investments to onshore production at plants in Tennessee, Kansas, and Michigan over the next two years. Today, I'm happy to share that we have decided to more than double the planned Chevrolet Equinox production at our Fairfax Assembly plant in Kansas, above and beyond what we announced earlier this year. Once these investments come online, we plan to produce more than 2 million vehicles per year in the United States. We are also investing close to a billion dollars to build a new generation of advanced, fuel-efficient V8 engines in New York. Importantly, we are maintaining our capital discipline while addressing this production and creating new jobs in the United States. We are also monitoring the supply of certain chips from China. This is an industry issue I know you are all aware of. While this has the potential to impact production, we have teams working around the clock with our supply chain partners to minimize possible disruptions. The situation is very fluid, and we will provide updates throughout the quarter as appropriate. On the regulatory side, our portfolio and capacity plans over the last several years have been heavily influenced by steadily increasing stringency requirements for fuel economy and emissions. To meet these requirements, we were working aggressively to install and scale EV capacity. Now, with an evolving regulatory framework and the end of the federal consumer incentives, it's clear that near-term EV adoption will be much lower than planned. This is resulting in higher variable costs as we expect to utilize less capacity across our EV plants and supply chain. All of this drove our decision to transition Orion Assembly from EV to ICE production and to sell our joint venture-owned cell plant in Michigan to LG Energy Solutions. It's also why we recorded a $1.6 billion special item charge in the third quarter. $1.2 billion of the charge is for non-cash impairments, most of which are related to the Orion transition. reductions in battery module assembly capacity, our decision to stop development of next-generation hydrogen fuel cells, and the write-off of CAFE credits and associated liabilities. The remaining $0.4 billion is for cash charges related to supplier contract cancellation costs. Our retail product portfolio is unchanged. We will continue to build award-winning products like the Chevrolet Equinox EV and the Cadillac Escalade IQ, which have been very successful with customers. We're proud of them, and we believe their performance will improve, even in a smaller market. However, we have decided to stop bright-drop production at CAMI Assembly and assess the site for future opportunities. This is not a decision we made lightly because of the impact on our employees. However, the commercial electric van market has been developing much slower than expected, and changes to the regulatory framework and fleet incentives have made the business even more challenging. Our actions on BrightDrop and our ongoing work to reset our capacity will cause us to recognize a charge in the fourth quarter. By acting swiftly and decisively to address overcapacity, we expect to reduce EV losses in 2026 and beyond, making us much better positioned as demand stabilizes. EVs remain our North Star, so we will continue to invest in new battery chemistries like LMR, new form factors, and other architectural improvements to drive improved profitability. I'm equally confident in our ice strategy. It is clear that ice volumes will remain higher for longer. We lead the industry today and we are increasingly well-positioned to meet strong, sustained demand. For example, we are on showing production of the Chevrolet Blazer, developing a next-generation Cadillac CT5, and redesigning and extending the Cadillac XT5. And when Orion Assembly comes back online in early 2027, It will produce the Cadillac Escalade and then add our next generation of full-size light-duty pickup trucks. Looking ahead, our top priority as a leadership team remains returning North America to our historical 8% to 10% EBIT margins. To do this, we will continue to drive EV profitability improvements, maintain our overall production, pricing, and incentive discipline, manage our fixed costs, and further reduce our tariff exposure net of our self-help initiatives. In addition, cross-functional teams are attacking our warranty expense by addressing the root cause inside GM, at our suppliers, and at our dealerships. We are also executing plans to grow software and services like OnStar and SuperCruise to generate even greater revenue during and after each vehicle sale. So far this year, we have recognized nearly $2 billion in revenue from OnStar, SuperCruise, and other software services, and our deferred revenue was up 14% from Q2 to almost $5 billion. That's off a base of 11 million OnStar subscribers, which is up 34% year-over-year. This includes more than 500,000 Super Cruise customers, which nearly doubled year-over-year. We expect robust double-digit revenue growth through the end of the decade with gross margins of about 70%. We also continue to make great strides in our autonomous strategy and in the development of our next-generation software-defined vehicle platforms. It will be transformational because we will be able to evolve the software layer of each vehicle independently from the hardware-defined physical layer. For customers, their vehicles will become smarter, more capable, and more personalized over time. Our platforms will be more stable and last longer. We will see large reductions in complexity, and we will create new revenue streams from features and services. This work is exciting and full of opportunity, and we're hosting a media event in New York tomorrow to hear from the leaders who are executing our technology strategy. We will share more on these and other initiatives with you as we go forward because great vehicles, innovative technology, a rewarding customer experience, along with strong financial results will continue to set GM apart in an increasingly competitive landscape. Thank you, and I will now turn the call over to Paul to discuss the quarter in more detail.