To our Shareholders,
Today, we reported another quarter of earnings that highlight the appeal of GM’s vehicles, customer loyalty to our brands, the growing value of technologies like OnStar and Super Cruise, as well as the creativity and resiliency of our global team. I’m grateful for everyone’s contributions – our employees, our dealers, and our suppliers.
In the United States, we continue to lead the industry in full-size trucks and SUVs, and the 10 all-new or redesigned crossover SUVs we have introduced like the Chevrolet Trax, Buick Envista, and GMC Acadia took huge leaps forward in design and technology, resulting in record demand and revenue growth, while reduced complexity contributed to stronger profitability.
We are also growing in EVs because people love the design, performance, range, and value we deliver across our strategic portfolio, from the affordable Equinox EV to the handcrafted Cadillac CELESTIQ. Five years ago, the EV market essentially had one player. Today, there are 30, and Chevrolet became the #2 EV brand in the second quarter, while Cadillac became the #5 EV brand overall and the luxury EV leader.
In China, the performance of our new energy vehicles has been especially strong, and in the second quarter, we reported our second consecutive quarter of year-over-year sales growth. We gained the most share among foreign OEMs, and we reported positive equity income.
In addition to our strong underlying operating performance, we are positioning the business for a profitable, long-term future as we adapt to new trade and tax policies, and a rapidly evolving tech landscape.
For example, in June we announced $4 billion of new investment in our U.S. assembly plants to add 300,000 units of capacity for high margin light-duty pickups, full-size SUVs and crossovers. This will help us satisfy unmet customer demand, greatly reduce our tariff exposure, and capture upside opportunities as we launch new models. The capacity begins coming online in just 18 months, after which we project building more than 2 million vehicles in the U.S. each year as we scale.
Despite slower EV industry growth, we believe the long-term future is profitable electric vehicle production, and this continues to be our north star. As we adjust to changing demand, we will prioritize our customers, brands, and a flexible manufacturing footprint, and leverage our domestic battery investments and other profit-improvement plans.
Overall, GM is well positioned to succeed in an ICE market that now has a longer runway.
We will continue to drive improved overall profitability and focus on EV profitability improvement to generate ongoing strong free cash flow. In addition, we will continue to drive American innovation in batteries, autonomous technology and software.
I believe everything we’re doing strategically and proactively, along with closer alignment of emissions rules with consumer demand, will further differentiate us from our competitors, increase our resilience, and help us emerge from this transition period even stronger and more profitable than before.
Thank you for your continued confidence in General Motors.
Mary Barra
SOURCE: GM
