EX-99.1 2 q22020earnings07292020.htm EX-99.1 - 2020 Q2 EARNINGS RELEASE
Exhibit 99.1 SECOND-QUARTER 2020 EARNINGS GM Second-Quarter Results Show Business Resiliency • EPS-diluted of $(0.56) and EPS-diluted-adjusted of $(0.50) • GMNA near EBIT-adjusted breakeven despite eight weeks of lost production • Ended quarter with $30.6 billion in automotive liquidity Q2 2020 RESULTS OVERVIEW Net Revenue Income/(Loss) Auto Operating Cash Flow EPS-Diluted* GAAP $16.8B $(0.8)B $(8.0)B $(0.56) vs. Q2 2019 (53)% (132)% $(11.8)B (134)% EBIT-adj. Margin EBIT-adj. Adj. Auto FCF EPS-Diluted-adj.* Non-GAAP (3.2)% $(0.5)B $(9.0)B $(0.50) vs. Q2 2019 (11.5) pts (118)% $(11.6)B (130)% *Includes $0.08 gain from PSA. We have a track record of making swift and strategic decisions to ensure our long-term success for the beneft of all our stakeholders. We will continue to drive the necessary change throughout the company to enable growth as we prepare to deliver a world with zero crashes, zero emissions and zero congestion.” – Mary Barra, Chairman and CEO “SOLID OPERATING RESULTS AMID PANDEMIC AUSTERITY ACTIONS Our results in the second quarter demonstrated the GM has taken many actions over the past several years resilience of the business, even while afected that have positioned the company well for a downturn. signifcantly by the pandemic. Chevrolet Silverado and During the quarter, GM implemented zero-based GMC Sierra sales were strong, leading to year-over-year budgeting and aggressively reduced its ongoing costs U.S. market share growth, despite tight inventory. Solid through signifcant austerity measures, including demand translated to stronger average transaction reductions in advertising and other discretionary pricing and lower incentives, with full-size pickup ATPs spending, compensation deferments and certain increasing $1,526 versus the frst quarter (J.D. Power). employee furloughs. These austerity measures are Launch plans for GM’s full-size SUVs also remained on expected to normalize as production and demand track, with the frst customers taking deliveries in June. stabilize, with some of the austerity measures remaining permanent. Signifcant progress on GM’s transformational cost savings initiatives continued, with $3.8 billion achieved since 2018. The company expects to achieve its target of $4.0 to $4.5 billion, with another $0.2 billion in the second quarter. CASH FLOW AND LIQUIDITY Second-quarter adjusted auto free cash fow was $(9.0) billion, down $11.6 billion year over year. The diference 2020 Chevrolet Silverado 1500 was largely due to the fnancial impact of the Total Income and EBIT-adj. refect the COVID-19 pandemic and managed working capital unwind, pandemic impact, with key drivers including a 62- partially ofset by lower capital expenditures. The percent drop in GMNA wholesales, a $0.2 billion decline quarter beneftted from a $500-million dividend from in GMI EBIT-adj. and lower GM Financial EBT, partially GM’s China operations and a $400-million dividend ofset by cost actions compared to last year. from GM Financial. Total automotive liquidity at the end of the quarter remained strong at $30.6 billion. GMNA results neared breakeven, demonstrating the efects of key actions taken the last several years. Importantly, the company continued to invest in key Performance in China improved on a sequential basis product programs and launches, including GM’s EV from the frst quarter, with growing sales and equity programs and AV vehicle technology, full-size trucks income of $200 million in the second quarter. and key crossover programs.

SEGMENT RESULTS (EBIT-ADJUSTED—$B) North America International Cruise GM Financial (EBT) Q2 20 Q2 19 Q2 20 Q2 19 Q2 20 Q2 19 Q2 20 Q2 19 (0.1) 3.0 (0.3) (0.0) (0.2) (0.3) 0.2 0.5 GM North America’s results GM International results Cruise acquired German radar GM Financial results impacted impacted by lower production afected by lower wholesales manufacturer Astyx. In by higher credit provision as a result of COVID-19 as a result of the COVID-19 addition, Cruise vehicles expense and accelerated pandemic, partially ofset by pandemic, partially ofset by autonomously delivered 50,000 depreciation expense due to strong pricing and cost cost actions. meals as part of COVID-19 relief reduced residual values, both actions. efforts in San Francisco. primarily related to COVID-19. Clearly, the second quarter was a challenge, but RELENTLESS PURSUIT OF AN ALL-ELECTRIC FUTURE we achieved near breakeven EBIT-adj. in North During the quarter, Ultium Cells LLC — GM’s joint America, despite losing 8 of 13 weeks of venture with LG Chem for cell manufacturing — started production. These results illustrate the resiliency construction with ground prep activities for the future and earnings power of the business as we make site of the Ultium battery cell manufacturing facility in “ Lordstown, Ohio. Site construction began in April, the critical investments necessary for our future.” building foundation work started July 1, and crews – Dhivya Suryadevara, CFO began erecting building steel July 29. U.S. SALES AND INVENTORY GROWTH Also during the pandemic, product development work GM’s U.S. second-quarter vehicle sales declined about on GM’s future EV and AV portfolios continued to 34 percent compared to a year ago. Results were progress at a rapid pace. Production timing remains on impacted by signifcantly reduced industry demand track for the Cadillac LYRIQ, which will be revealed due to the COVID-19 pandemic and tight dealer August 6, the Cruise Origin and the GMC HUMMER EV, inventories caused by the production shutdown in the which will be revealed in the fourth quarter all powered frst and second quarters. Overall sales showed signs of by the Ultium battery system. recovery – especially retail sales, which improved from April’s 35-percent decline to May and June, where year- over-year declines were around 20 percent. The all-new Chevrolet Trailblazer and Buick Encore GX have been performing well in a highly competitive segment. They’ve gained retail market share every month since launch and combined, have captured more than 10 percent of the small SUV segment (J.D. Power). The company is working all avenues to increase U.S. dealer stocks and has restarted all U.S. full-size pickup *Pre-production model shown truck and full-size SUV plants to three shifts, and nearly Cadillac LYRIQ* all other plants to pre-pandemic shift levels. Through July 25, landed U.S. dealer stock has grown by 9 In China, Buick expanded its EV portfolio and launched percent, and total vehicles in-transit was up 6 percent, the VELITE 7 and VELITE 6 PHEV on July 24. The VELITE 7 since June. is Buick’s frst electric SUV, ofering up to 500 km of range. The VELITE 7’s electric propulsion system is powered by a new modular high-performance lithium- In addition, GM’s Fort Wayne Assembly plant will be ion battery that has higher energy density through increasing regular production of light-duty full-size improved cell chemistry, and an optimized design. pickups by about 1,000 units a month beginning These new launches compliment Buick’s VELITE 6 and September 1. VELITE 6 Plus electric vehicles.

MEDIA CONTACT INVESTOR CONTACT Juli Huston-Rough Michael Heifler GM Finance Communications GM Investor Relations Media Investors 313-549-6977 313-418-0220 julie.huston-rough@gm.com michael.heifler@gm.com General Motors (NYSE:GM) is a global company committed to delivering safer, better and more sustainable ways for people to get around. General Motors, its subsidiaries and its joint venture entities sell vehicles under the Chevrolet, Buick, GMC, Cadillac, Holden, Baojun and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety and security services, can be found at http://www.gm.com. Cautionary Note on Forward-Looking Statements: This press release may include “forward-looking statements” within the meaning of the U.S. federal securities laws. We caution readers not to place undue reliance on forward-looking statements. Statements including words such as “anticipate,” “appears,” “approximately,” “believe,” “continue,” “could,” “designed,” “efect,” “estimate,” “evaluate,” “expect,” “forecast,” “goal,” “initiative,” “intend,” “may,” “objective,” “outlook,” “plan,” “potential,” “priorities,” “project,” “pursue,” “seek,” “should,” “target,” “when,” “will,” “would,” or the negative of any of those words or similar expressions to identify forward-looking statements represent our current judgment about possible future events. In making these statements we rely upon assumptions and analysis based on our experience and perception of historical trends, current conditions and expected future developments, as well as other factors we consider appropriate under the circumstances. These statements are not guarantees of future performance; they involve risks and uncertainties and actual events or results may difer materially from these statements. Factors that might cause such diferences include, but are not limited to, a variety of economic, competitive and regulatory factors, many of which are beyond our control. Many of these factors are described in our Annual Report on Form 10-K and our other flings with the U.S. Securities and Exchange Commission. We undertake no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events or other factors that afect the subject of these statements, except where we are expressly required to do so by law.