00:00Mary, really knocking the cover off the ball with these earnings that you see with your
00:04outlook, more than $2 billion in extra profit and profit jump for 2026. Let me start by asking what
00:12you attribute this to. Is it just the great sales and the financing of the higher margin vehicles
00:19like a Sierra, like an Escalade? Well, first, I have to start by thanking the entire General
00:26Motors team, our suppliers and our dealers for doing a phenomenal job. You know, 2025 was an
00:31exceptional year, especially when you look at all the challenges that we face. And I think it really
00:36demonstrates one of the core capabilities of GM, and it's our agility and our resilience. But the
00:41core of it starts with our great product portfolio, whether it's very affordable EVs like the Chevrolet
00:46tracks all the way up to, you know, a supercar like what's behind me with the Corvette ZR1X. So
00:53couldn't be more proud of the team. The ZR1X with 1,250 horsepower. It is indeed, I would call it a
00:59hypercar, Mary. That's not the bread and butter, though, for you. You really make these highly
01:06profitable, highly capable big trucks, and Americans are buying more of those and fewer of the EVs. Do
01:14you expect to continue to sell fewer of the EVs? I know you took a $7 billion and changed right down
01:20for that business in 2025. Well, you know, the whole industry, we were on a path that we were
01:29working to get to 40 to 50% EVs by 2030. So now that the regulatory environment has changed and
01:35the consumer incentives have gone, there is going to be slower EV adoption. We're still committed EVs,
01:40and we've got a great portfolio that we're working on taking costs out of. But in the meantime, we also
01:45have a great internal combustion engine platform. And you're right, full-size trucks are one of the
01:50strengths we have, as well as full-size SUVs, mid-size crossovers. So we really have a strong
01:55lineup across the board. And that is really what is, you know, fueling our business success.
02:00I have had, as the host of Hot Pursuit, a Bloomberg podcast about cars, the opportunity to drive
02:06a lot of your EVs from the Sierra EV to the Hummer EV to the Escalade IQ. And they're fantastic
02:13products. Are you not deterred that Americans aren't buying more of these vehicles? You know
02:21how capable they are. You know how useful they are in daily life. What needs to happen for more
02:28Americans to buy these EVs? Well, I think the consumer is very rational when they're making a
02:35decision about what car to buy. Let's remember, it's one of the most important and expensive
02:39decisions that they make. And one of the things we have to continue to work on to drive EV adoption
02:45is a more robust charging infrastructure. And that still is continuing to happen. So every quarter,
02:50more and more chargers are available. I think as people in their individual communities see that
02:55they've got a robust charging network and believe if they have to go on a road trip, there's that as
02:59well, they're going to make that choice. And what we do see is once someone buys an EV,
03:03they see the technology, they see the driving experience, never having to go to the gas station,
03:09and they stick with EVs. So I think it will happen over time. And that's why during this period,
03:14we've already got a great portfolio of EVs. We're going to continue to work, take costs out to get
03:19our EV portfolio profitable. And we're going to be well positioned as EV demand grows over the next
03:24handful of years. What about the hybrids, Mary? I mean, GM was really a front runner,
03:28not only in EV technology, but in hybrid technology with the Chevy Volt. I remember
03:33when the Tahoe came out with a six liter gas engine and electric battery power. Will you start to sell
03:40more of the hybrid vehicles? Well, we have always focused, as you said, we have great hybrid
03:50technology. We have great EV technology. We're one of the few OEMs that invested in a dedicated EV
03:56platform that allows us to have the portfolio we have. So we're focused on the end game and
04:02we have affordable EVs. So I think that's where our primary focus is. We understand the technology.
04:08We have it in other regions. You'll see us with a handful of hybrids as we move forward. But right
04:13now, our focus is really on having the right internal combustion engine portfolio and the right EV
04:19portfolio moving forward. And I think we're demonstrating that that's a winning formula because
04:23over the last four years, we've gained share each year. I wonder how much your racing efforts
04:28push towards that. And I know this is something I've talked about with your president, Mark Royce,
04:33on a number of occasions, but you're getting into so many more leagues. I watched the hypercars in
04:38Le Mans this summer and looking forward to watching you participate in Formula One.
04:43Do you think this really boosts your brand awareness around the world?
04:47Absolutely. We definitely see that it does. And I think when you look at Cadillac and the strength
04:56of Cadillac, it is true luxury, true American luxury. F1 is the place that Cadillac should be
05:01showcased. So we're very proud to be a full works American team, anxious to enter this year in
05:09Australia. But I think it's going to be very important for the Cadillac brand. And we do have
05:13a really robust program that takes what we learn on the track and we incorporate into our vehicles
05:17to make our vehicles better. It's true for Chevrolet as well as Cadillac and the entire portfolio.
05:24I've got to ask about the finance arm. GM Financial provided a massive liquidity buffer,
05:32I think $36 billion there. How do you think about, because you're doing buybacks, returning a lot of
05:39cash to shareholders? I'm sure they're happy about the stock is near an all time high. But how do you
05:43think about putting that aside for protection versus supporting shareholder returns, you know,
05:50in case the auto cycle turns at some point? Well, we've indicated that 18 to 20 billion is
05:58is our cash target. Last year, we finished the year strong at around 22 billion. And we have a capital
06:04allocation framework of first reinvesting in the business. Second, making sure that we have an
06:09investment grade balance sheet and then returning cash to shareholders. And we think based on the
06:13strength of our business and the cash that we generate, we can continue to do that well. And
06:18that's where our focus is. You know, the financial arm has added, I think, more than $2 billion to
06:242025 profit. So it's really a contributor, kind of a quiet profit stabilizer. Is that turning,
06:31though, as delinquencies and charge offs rise a little bit? Is that starting to concern you as
06:36consumer balance sheets thin out? Well, it's something that we watch very closely that I think
06:43GMF does a great job in their business. And it is a very important business. Shout out to the GM
06:49financial team for the great work they do. It's also very important from a loyalty perspective,
06:53because having a captive and being able to interface with the consumer on a monthly basis as they make
07:00their car payments, I think, is just part of the ecosystem that we're building to really make sure
07:06we have that great relationship with the customer. And it shows that we have the highest loyalty in
07:10the U.S. of any OEM. I look at loan originations in the fourth quarter, and I see that they're down
07:19pretty substantially about 21 percent. And I wonder if that's a deliberate choice by GMF. Are you
07:25tightening your credit standards, or is that reflecting a softer demand at today's rates and
07:32prices, which are both fairly high?
07:37Well, the car company and the finance company, they work together to make sure we have the right
07:41equation and what's going to optimize profitability for the enterprise. And so I don't think you can
07:47look at one quarter. It goes up and down depending on what's happening in the external world.
07:51But GMF is a very important part of our portfolio of companies. And again, as I said, it works in
07:58concert with the car company to make sure that we have a strong business overall.
08:02I have to, when I think of credit standards, I think of first brands among some of the other
08:08businesses that have fallen to Chapter 11 this year. And I saw a report in the Financial Times
08:13overnight that you, along with Ford, your crosstown rivals, are negotiating to help send them a rescue
08:20line of sorts. Can you comment on that at all, Mary?
08:25Well, what we're very much focused on is while we make sure we have secure supply is that transition
08:31period. So I think what you see General Motors and other OEMs working together to do is make
08:36sure that we don't have supply chain disruptions because of their financial situation. We've been
08:41working on it. But I think as we look at, you know, the immediate what's happening next week,
08:46next month, that's what that's the work that we're doing, as well as in parallel, making sure we have
08:51longer term supply. So that's what you're seeing with that announcement. When you talk about the
08:55supply chain, I think about the concessions you're able to get out of your suppliers. I know that
09:00you're trying to keep costs down. You're under a threat of tariffs or you already face tariffs in a
09:05lot of the places you produce. How much of those tariffs have you been able to pass through
09:09to consumers where you haven't been able to cut costs or get concessions from suppliers?
09:18I think if you look at our portfolio, I think, you know, for the most part, we've worked to offset it
09:23and with efficiencies across the board, making smart decisions on where we produce. And so very
09:31little has gone to the consumer because we are such a cost sensitive business and it's such a
09:37competitive business. But we continue to look at all those levers and we stay focused on consumer
09:42affordability. You're operating, Mary, in the heart of America and America's undergone some some really
09:48tough times, especially over the last few weeks in Minnesota. What are you doing? What is General
09:53Motors doing to kind of keep the temperature down, to kind of keep the calm at your company and with
09:59your suppliers? Well, we want to make sure that everyone stays focused on the business and is
10:07part of the solution, meaning deescalating. I believe that's starting to happen. So that's what we
10:11continue to reinforce.
Comments