General Motors Company (GM) investor relations material

Strategic focus and financial performance

• Emphasis on long-term planning, with a focus on cash flow transformation and disciplined capital allocation, including investments, maintaining a strong balance sheet, and significant share buybacks since 2013.

• Free cash flow has averaged over $10 billion in the last five years, supported by a diversified product portfolio and resilient consumer demand across price points.

• Capital budgeting is set at $10–12 billion annually, with operating cash flow outpacing this, enabling continued shareholder returns.

• Commitment to further share repurchases as long as free cash flow yield and valuation remain attractive.

• Ongoing efforts to improve valuation multiples through digital and subscription revenue growth and new business segments.

Consumer trends and market resilience

• Consumer behavior remains strong and resilient, with little sign of weakening despite negative sentiment surveys.

• Vehicle sales and share levels have been consistent, with expanded offerings at lower price points supporting stability.

• No material changes in delinquency or default rates; normalization to pre-COVID levels observed.

• Focus on maintaining pricing discipline and brand equity, avoiding excessive discounting.

• Transition to new truck models is managed carefully to balance pricing, inventory, and production.

2027 outlook and operational tailwinds

• Multiple tailwinds expected for 2027 and beyond: EV profitability, warranty improvements, new truck launches, and digital revenue growth.

• Warranty costs are trending lower, with a goal to reach and surpass historic quality benchmarks.

• Cash flow in 2027 projected to be substantially better than 2026 as EV restructuring costs subside.

• No major philosophical changes in budget planning, but increased focus on structural cost reduction and AI-driven efficiencies.

• New truck launch in December is on track, with volume ramping up through 2027 and more upside expected in 2028.