General Motors Co

Previous wording

Our financial performance continues to be driven by the strength of our vehicle portfolio including high margin full-size pickup trucks and SUVs, strong consumer demand for our products and the execution of our core business strategy. We remain focused on reducing fixed costs and maintaining pricing discipline. We are monitoring industry pricing pressures, higher interest rates, inflation and consumer demand trends. We continue to prioritize driving down costs and building scale in our EV portfolio to improve profitability. Cruise has also resumed certain on-road operations with a focused and more capital efficient operating plan.

Current wording

Our financial performance continues to be driven by the strength of our vehicle portfolio including high margin full-size pickup trucks and SUVs, strong consumer demand for our products and the execution of our core business strategy. We remain focused on reducing fixed costs and maintaining pricing discipline. We are monitoring industry pricing pressures, changing interest rates, inflation, warranty claims and consumer demand trends. We continue to prioritize driving down costs and building scale in our EV portfolio to improve profitability. Cruise has also resumed certain on-road operations with a focused and more capital efficient operating plan.

Previous wording

For the year ending December 31, 2024, we expect Net income attributable to stockholders of between$10.0 billion and $11.4 billion, EBIT-adjusted of between$13.0 billion and $15.0 billion, EPS-diluted ofbetween $8.93 and$9.93 and EPS-diluted-adjusted of between$9.50 and $10.50. Refer to the "Non-GAAP Measures" section of this MD&A for additional information.

Current wording

For the year ending December 31, 2024, we expect Net income attributable to stockholders of between $10.4 billion and$11.1 billion, EBIT-adjusted of between $14.0 billion and $15.0 billion, EPS-diluted ofbetween $9.14 and $9.64 and EPS-diluted-adjusted of between $10.00 and $10.50. Refer to the "Non-GAAP Measures" section of this MD&A for additional information.

Previous wording

GMNA Industry sales in North America were 9.9 million units in the six months ended June 30, 2024, representing an increase of 3.4% compared to the corresponding period in 2023. U.S. industry sales were 8.0 million units in the six months ended June 30, 2024, representing an increase of 1.7% compared to the corresponding period in 2023.

Current wording

GMNA Industry sales in North America were 14.9 million units in the nine months ended September 30, 2024, representing an increase of 1.9% compared to the corresponding period in 2023. U.S. industry sales were 12.0 million units in the nine months ended September 30, 2024, representing an increase of 0.3% compared to the corresponding period in 2023.

Previous wording

Our total vehicle sales in the U.S., our largest market in North America, were 1.3 million units for market share of 16.0% in the six months ended June 30, 2024, representing a decrease of 0.3 percentage points compared to the corresponding period in 2023.

Current wording

Our total vehicle sales in the U.S., our largest market in North America, were 1.9 million units for market share of 16.2% in the nine months ended September 30, 2024, representing a decrease of 0.2 percentage points compared to the corresponding period in 2023.

Previous wording

GMIIndustry sales in China were 11.5 million units in the six months ended June 30, 2024, representing an increase of 2.4% compared to the corresponding period in 2023. Our total vehicle sales in China were 0.8 million units for market share of 7.1% in the six months ended June 30, 2024, representing a decrease of 1.7 percentage points compared to the corresponding period in 2023. Our Automotive China JVs generated an equity loss of $0.2 billion in the six months ended June 30, 2024, driven primarily by a decline in wholesale volumes amid intense competition in a market with significant excess capacity from both new market entrants and established competitors offering vehicles at lower prices. This intense price competition and an increasingly challenging regulatory environment related to emissions, fuel consumption and new energy vehicles continue to negatively impact the profitability of our operations in China. Additionally, independent, Chinese automakers are expanding market share and prioritizing production volumes over profitability, with the ability to produce vehicles at costs well below foreign automakers, including our Automotive China JVs. These factors are impacting our China JVs’ ability to grow vehicle sales in China and our ability to generate sustainable equity income from our China JVs. As a result, we are working closely with our JV partners to restructure our operations in China and we believe we have an increased likelihood of recording future charges, which could be material, if losses continue in the near term.

Current wording

GMIIndustry sales in China were 18.1 million units in the nine months ended September 30, 2024, representing an increase of 2.3% compared to the corresponding period in 2023. Our total vehicle sales in China were 1.2 million units for market share of 6.8% in the nine months ended September 30, 2024, representing a decrease of 1.8 percentage points compared to the corresponding period in 2023. Our Automotive China JVs generated an equity loss of $0.3 billion in the nine months ended September 30, 2024, driven primarily by a decline in wholesale volumes amid intense competition in a market with significant excess capacity from both new market entrants and established competitors offering vehicles at lower prices. This intense price competition and an increasingly challenging regulatory environment related to emissions, fuel consumption and new energy vehicles continue to negatively impact the profitability of our operations in China. Additionally, we believe independent, Chinese automakers are expanding market share and prioritizing production volumes over profitability, with the ability to produce vehicles at costs well below foreign automakers, including our Automotive China JVs. These factors are impacting our China JVs’ ability to grow vehicle sales in China and our ability to generate sustainable equity income from our China JVs. As a result, we are working closely with our JV partners to restructure our operations in China and expect an updated business plan in the fourth quarter. We believe a material loss in value may exist on our interests in certain China JVs and the updated business plan will inform us as to whether any loss in value is other than temporary. If we conclude that the loss in value is other than temporary, we would be required to record a material, non-cash impairment charge in the fourth quarter of this year. The carrying amounts of our investments in the Automotive China JVs and GM Financial China JVs subject to the restructuring actions are $4.4 billion and $1.6 billion as of September 30, 2024.

Previous wording

Outside of China, industry sales were 12.4 million units in the six months ended June 30, 2024, representing a decrease of 1.0% compared to the corresponding period in 2023. Our total vehicle sales outside of China were 0.4 million units for market share of 3.5% in the six months ended June 30, 2024, representing a decrease of 0.3 percentage points compared to the corresponding period in 2023.

Current wording

Outside of China, industry sales were 19.0 million units in the nine months ended September 30, 2024, representing a decrease of 0.3% compared to the corresponding period in 2023. Our total vehicle sales outside of China were 0.7 million units for market share of 3.6% in the nine months ended September 30, 2024, representing a decrease of 0.3 percentage points compared to the corresponding period in 2023.

Previous wording

Cruise Cruise Holdings, our majority-owned subsidiary, is pursuing the development and commercialization of AV technology. In April 2024, Cruise AVs returned to public roads for manual driving operations following a voluntary pause that resulted from an October 2023 accident. Subsequently, Cruise resumed supervised operations and expanded to additional cities. Currently, Cruise is operating supervised and manual driving in Phoenix, Arizona; Dallas, Texas; and Houston, Texas. We expect Cruise to return to driverless operations and commercial AV operations based on safety and other criteria but we have not yet determined the timing of such return.

Current wording

Cruise Cruise Holdings, our majority-owned subsidiary, is pursuing the development and commercialization of AV technology. In April 2024, Cruise AVs returned to public roads for manual driving operations following a voluntary pause that resulted from an October 2023 accident. Subsequently, Cruise has resumed limited driverless testing in Houston, Texas and supervised operations and manual driving in Houston and Dallas, Texas, and Phoenix, Arizona. We expect Cruise to return to driverless commercial AV operations based on safety and other criteria, but we have not yet determined the timing of such return.

Previous wording

We also continue to engage with certain federal and state agencies, including the California Department of Motor Vehicles, the California Public Utilities Commission, NHTSA, the U.S. Department of Justice and the SEC, who have opened investigations or made inquiries to us and Cruise in connection with the October 2023 incident and are actively cooperating with all government regulators and agencies in connection with these matters. Refer to Part I, Item 1A. Risk Factors of our 2023 Form 10-K for a further discussion of the risks associated with our AV strategy.

Current wording

We also continue to engage with certain federal and state agencies, including the California Department of Motor Vehicles, the California Public Utilities Commission, NHTSA, the U.S. Department of Justice and the SEC, who have opened investigations or made inquiries to us and Cruise in connection with the October 2023 incident and are actively cooperating with all government regulators and agencies in connection with these matters. In September 2024, Cruise and NHTSA executed a Consent Order, which imposed a $1.5 million fine on Cruise and requires enhanced reporting and engagement with NHTSA for two years (with an optional third year at NHTSA’s discretion). GM is neither a party nor a signatory to the agreement. Refer to Part I, Item 1A. Risk Factors of our 2023 Form 10-K for a further discussion of the risks associated with our AV strategy.

Previous wording

We present both wholesale and total vehicle sales data to assist in the analysis of our revenue and market share. Wholesale vehicle sales data consists of sales to GM's dealers and distributors as well as sales to the U.S. government and excludes vehicles sold by our joint ventures. Wholesale vehicle sales data correlates to our revenue recognized from the sale of vehicles, which is the largest component of Automotive net sales and revenue. In the six months ended June 30, 2024, 26.6% of our wholesale vehicle sales volume was generated outside the U.S. The following table summarizes wholesale vehicle sales by automotive segment (vehicles in thousands):

Current wording

We present both wholesale and total vehicle sales data to assist in the analysis of our revenue and market share. Wholesale vehicle sales data consists of sales to GM's dealers and distributors as well as sales to the U.S. government and excludes vehicles sold by our joint ventures. Wholesale vehicle sales data correlates to our revenue recognized from the sale of vehicles, which is the largest component of Automotive net sales and revenue. In the nine months ended September 30, 2024, 27.0% of our wholesale vehicle sales volume was generated outside the U.S. The following table summarizes wholesale vehicle sales by automotive segment (vehicles in thousands):

Previous wording

GM Financial We believe that offering a comprehensive suite of financing products will generate incremental sales of our vehicles, drive incremental GM Financial earnings and help support our sales throughout various economic cycles. GM Financial's penetration of our retail sales in the U.S. was 39% in the six months ended June 30, 2024 and 44% in the corresponding period in 2023. Penetration levels vary depending on incentive financing programs available and competing third-party financing products in the market. GM Financial's prime loan originations as a percentage of total loan originations in North America decreased to 79% in the six months ended June 30, 2024 from 82% in the corresponding period in 2023. In the six months ended June 30, 2024, GM Financial's revenue consisted of leased vehicle income of 47%, retail finance charge income of 39% and commercial finance charge income of 8%.

Current wording

GM Financial We believe that offering a comprehensive suite of financing products will generate incremental sales of our vehicles, drive incremental GM Financial earnings and help support our sales throughout various economic cycles. GM Financial's penetration of our retail sales in the U.S. was 39% in the nine months ended September 30, 2024 and 43% in the corresponding period in 2023. Penetration levels vary depending on incentive financing programs available and competing third-party financing products in the market. GM Financial's prime loan originations as a percentage of total loan originations in North America decreased to 80% in the nine months ended September 30, 2024 from 82% in the corresponding period in 2023. In the nine months ended September 30, 2024, GM Financial's revenue consisted of leased vehicle income of 46%, retail finance charge income of 40% and commercial finance charge income of 8%.

Previous wording

GM Financial's leasing program is exposed to residual values, which are heavily dependent on used vehicle prices. Gains on terminations of leased vehicles of $0.2 billion and $0.4 billion were included in GM Financial interest, operating and other expenses for the three and six months ended June 30, 2024 and 2023. The following table summarizes the estimated residual value based on GM Financial's most recent estimates and the number of units included in GM Financial Equipment on operating leases, net by vehicle type (units in thousands):

Current wording

GM Financial's leasing program is exposed to residual values, which are heavily dependent on used vehicle prices. Gains on terminations of leased vehicles of $0.2 billion and $0.6 billion were included in GM Financial interest, operating and other expenses for the three and nine months ended September 30, 2024, compared to gains of $0.2 billion and $0.7 billion in the corresponding periods in 2023. The following table summarizes the estimated residual value based on GM Financial's most recent estimates and the number of units included in GM Financial Equipment on operating leases, net by vehicle type (units in thousands):

Previous wording

In the three months ended June 30, 2024, decreased Cost was primarily due to: (1) decreased campaigns and other warranty-related costs of $0.7 billion; (2) decreased EV-related charges of $0.5 billion, primarily due to inventory adjustments to reflect the net realizable value at period end; and (3) increased equity earnings related to Ultium Cells Holdings LLC of $0.3 billion; partially offset by (4) charges of $0.6 billion related to Cruise restructuring; and (5) increased manufacturing labor costs of $0.2 billion. In the three months ended June 30, 2024, unfavorable Other was primarily due to the strengthening of the Mexican peso and other currencies partially offset by the weakening of the Brazilian real and other currencies, all against the U.S. dollar.

Current wording

In the three months ended September 30, 2024, decreased Cost was primarily due to: (1) decreased inventory adjustments of $0.6 billion, primarily EV-related, to reflect the net realizable value at period end; (2) decreased engineering costs of $0.3 billion, driven primarily by lower AV engineering costs; and (3) increased equity earnings related to Ultium Cells Holdings LLC of $0.2 billion; partially offset by (4) increased campaigns and other warranty-related costs of $0.7 billion; and (5) increased manufacturing costs of $0.2 billion. In the three months ended September 30, 2024, favorable Other was primarily due to net foreign currency changes in the Brazilian real and other currencies.

Previous wording

In the three months ended June 30, 2024, Automotive and other selling, general and administrative expense decreased primarily due to decreased advertising costs of $0.2 billion.

Current wording

In the three months ended September 30, 2024, Automotive and other selling, general and administrative expense increased primarily due to:(1) increased advertising, selling and administrative costs of $0.2 billion; and (2) charges related to restructuring actions primarily in GMNA of $0.1 billion.

Previous wording

In the six months ended June 30, 2024, Automotive and other selling, general and administrative expense decreased primarily due to: (1) decreased advertising costs of $0.4 billion; and (2) the non-recurrence of charges of $0.2 billion related to the VSP.

Current wording

In the nine months ended September 30, 2024, Automotive and other selling, general and administrative expense decreased primarily due to the absence of charges related to the VSP of $0.2 billion.

Previous wording

In the three months ended June 30, 2024, Interest income and other non-operating income, net decreased primarily due to: (1) $0.1 billion in losses related to revaluation of investments; and (2) $0.2 billion in losses in several individually insignificant items.

Current wording

In the three months ended September 30, 2024, Interest income and other non-operating income, netdecreased primarily due to several insignificant items.

Previous wording

In the six months ended June 30, 2024, Interest income and other non-operating income, net decreased primarily due to: (1) $0.2 billion in losses related to revaluation of investments; (2) $0.1 billion decrease in non-service pension and OPEB income; and (3) $0.1 billion decrease in interest income.

Current wording

In the nine months ended September 30, 2024, Interest income and other non-operating income, netdecreased primarily due to: (1) $0.2 billion in losses related to revaluation of investments; (2) $0.1 billion decrease in non-service pension and OPEB income; and (3) $0.1 billion decrease in interest income.

Previous wording

In the six months ended June 30, 2024, Income tax expense increased primarily due to a higher effective tax rate and higher pre-tax income.

Current wording

In the nine months ended September 30, 2024, Income tax expense increased primarily due to a higher effective tax rate and higher pre-tax income.

Previous wording

For the six months ended June 30, 2024, our effective tax rate-adjusted (ETR-adjusted) was 20.8%. We expect our adjusted effective tax rate to be between 18% and 20% for the year ending December 31, 2024.

Current wording

For the three and nine months ended September 30, 2024, our effective tax rate-adjusted (ETR-adjusted) was 19.5% and 20.4%. We expect our adjusted effective tax rate to be between 19% and 20%for the year ending December 31, 2024.

Previous wording

In thesix months ended June 30, 2024, Total net sales and revenue increased primarily due to: (1) increased net wholesale volumes due to increased sales of full-size pickup trucks and mid-size pickup trucks; (2) favorable Mix due to increased sales of full-size pickup trucks and full-size SUVs, partially offset by increased sales of crossover vehicles and mid-size pickup trucks; and (3) favorable Other due to increased sales of parts and accessories.

Current wording

GMNA Total Net Sales and Revenue In the three months ended September 30, 2024, Total net sales and revenue increased primarily due to: (1) increased net wholesale volumes due to increased sales of full-size pickup trucks, mid-size pickup trucks and other vehicles; (2) favorable Mix due to increased sales of full-size SUVs, full-size pickup trucks and decreased sales of passenger cars; and (3) favorable Price as a result of stable dealer inventory levels and strong demand for our products; partially offset by (4) unfavorable Other due to net foreign currency changes primarily in the Mexican peso.

Previous wording

GMNA Total Net Sales and Revenue In the three months ended June 30, 2024, Total net sales and revenue increased primarily due to: (1) increased net wholesale volumes due to increased sales of full-size pickup trucks and crossover vehicles; (2) favorable Mix due to increased sales of full-size pickup trucks, full-size SUVs and mid-size pickup trucks, partially offset by increased sales of crossover vehicles; and (3) favorable Price as a result of stable dealer inventory levels and strong demand for our products.

Current wording

In the nine months ended September 30, 2024, Total net sales and revenue increased primarily due to: (1) increased net wholesale volumes due to increased sales of full-size pickup trucks, mid-size pickup trucks, crossover vehicles and other vehicles, partially offset by decreased sales of passenger cars; (2) favorable Mix due to increased sales of full-size pickup trucks and full-size SUVs, partially offset by increased sales of crossover vehicles; and (3) favorable Price as a result of stable dealer inventory levels and strong demand for our products.

Previous wording

In the six months ended June 30, 2024, EBIT-adjusted increased primarily due to: (1) increased net wholesale volumes; and (2) favorable Cost primarily due to decreased campaigns and other warranty-related costs of $0.6 billion, decreased EV-related charges of $0.4 billion, primarily due to inventory adjustments to reflect the net realizable value at period end, and increased equity earnings related to Ultium Cells Holdings LLC of $0.4 billion; partially offset by increased manufacturing labor costs of $0.4 billion; partially offset by (3) unfavorable Mix due to increased sales of crossover vehicles and mid-size pickup trucks; and (4) unfavorable Other due to the foreign currency effect resulting from the strengthening of the Mexican peso against the U.S. dollar.

Current wording

GMNA EBIT-Adjusted In the three months ended September 30, 2024, EBIT-adjusted increased primarily due to: (1) increased net wholesale volumes; and (2) favorable Price; partially offset by (3) unfavorable Cost primarily due to increased campaigns and other warranty-related costs of $0.7 billion and increased manufacturing, engineering, advertising, selling and administrative costs of $0.7 billion, partially offset by decreased inventory adjustments of $0.5 billion, primarily EV-related, to reflect the net realizable value at period end and increased equity earnings related to Ultium Cells Holdings LLC of $0.2 billion; and (4) unfavorable Mix due to increased sales of EVs.

Previous wording

GMNA EBIT-Adjusted In the three months ended June 30, 2024, EBIT-adjusted increased primarily due to: (1) favorable Cost primarily due to decreased campaigns and other warranty-related costs of $0.7 billion, decreased EV-related charges of $0.5 billion, primarily due to inventory adjustments to reflect the net realizable value at period end, and increased equity earnings related to Ultium Cells Holdings LLC of $0.3 billion; partially offset by increased engineering costs of $0.3 billion and increased manufacturing labor costs of $0.2 billion; (2) increased net wholesale volumes; and (3) favorable Price; partially offset by (4) unfavorable Mix due to increased sales of crossover vehicles, partially offset by increased sales of full-size pickup trucks and full-size SUVs; and (5) unfavorable Other due to the foreign currency effect resulting from the strengthening of the Mexican peso against the U.S. dollar.

Current wording

In the nine months ended September 30, 2024, EBIT-adjusted increased primarily due to: (1) increased net wholesale volumes; (2) favorable Price; and (3) favorable Cost primarily due to decreased inventory adjustments of $0.9 billion, primarily EV-related, to reflect the net realizable value at period end, increased equity earnings related to Ultium Cells Holdings LLC of $0.6 billion and decreased material and freight costs of $0.3 billion, partially offset by increased engineering costs of $0.4 billion, increased manufacturing costs of $0.4 billion, increased information technology costs of $0.2 billion and other cost of sales and several insignificant items of $0.5 billion; partially offset by (4) unfavorable Mix due to increased sales of crossover vehicles and mid-size pickup trucks; and (5) unfavorable Other due to net foreign currency changes primarily in the Mexican peso.

Previous wording

GMI Total Net Sales and Revenue In the three months ended June 30, 2024, Total net sales and revenue decreased primarily due to: (1) unfavorable Mix in Brazil and in the Middle East; (2) decreased net wholesale volumes in Asia/Pacific and in the Middle East primarily due to decreased sales of crossover vehicles; partially offset by increased volumes in Brazil primarily due to increased sales of passenger cars; and (3) unfavorable Other primarily due to decreased components sales and the foreign currency effect resulting from the weakening of the Brazilian real and Egyptian pound against the U.S. dollar.

Current wording

GMI Total Net Sales and Revenue In the three months ended September 30, 2024, Total net sales and revenue decreased primarily due to: (1) decreased net wholesale volumes in South America and in Asia/Pacific primarily due to decreased sales of passenger cars and crossover vehicles; and (2) unfavorable Other primarily due to decreased components sales and the net foreign currency change in the Brazilian real and Egyptian pound; partially offset by (3) favorable pricing across multiple vehicle lines in Brazil, Argentina and Egypt; and (4) favorable Mix primarily in Brazil.

Previous wording

In the six months ended June 30, 2024, Total net sales and revenue decreased primarily due to: (1) decreased net wholesale volumes in Asia/Pacific, in the Middle East and in South America primarily due to decreased sales of crossover vehicles and passenger cars; and (2) unfavorable Other primarily due to decreased components sales and the foreign currency effect resulting from the weakening of various currencies against the U.S. dollar.

Current wording

In thenine months ended September 30, 2024, Total net sales and revenue decreased primarily due to: (1) decreased net wholesale volumes in South America, in Asia/Pacific and in the Middle East primarily due to decreased sales of crossover vehicles and passenger cars; and (2) unfavorable Other primarily due to decreased components sales and the net foreign currency change in the Brazilian real and Egyptian pound; partially offset by (3) favorable pricing across multiple vehicle lines in Brazil and Egypt; and (4) favorable Mix primarily in Brazil.

Previous wording

GMI EBIT-Adjusted In the three months ended June 30, 2024, EBIT-adjusted decreased primarily due to: (1) unfavorable Mix; and (2) unfavorable Other primarily due to decreased Automotive China equity income (loss); partially offset by (3) favorable Cost primarily due to decreased warranty-related costs.

Current wording

GMI EBIT-Adjusted In the three months ended September 30, 2024, EBIT-adjusted decreased primarily due to: (1) unfavorable Other primarily due to decreased Automotive China equity income (loss); and (2) decreased net wholesale volumes; partially offset by (3) favorable Price.

Previous wording

In the six months ended June 30, 2024, EBIT-adjusted decreased primarily due to: (1) decreased net wholesale volumes; and (2) unfavorable Other primarily due to decreased Automotive China equity income (loss).

Current wording

In the nine months ended September 30, 2024, EBIT-adjusted decreased primarily due to: (1) unfavorable Other primarily due to decreased Automotive China equity income (loss); and (2) decreased net wholesale volumes; partially offset by (3) favorable Price.

Previous wording

(a)Primarily reclassified to Interest income and other non-operating income, net in our condensed consolidated income statements in the three and six months ended June 30, 2024 and 2023.

Current wording

(a)Primarily reclassified to Interest income and other non-operating income, net in our condensed consolidated income statements in the three and nine months ended September 30, 2024 and 2023.

Previous wording

Cruise EBIT (Loss)-Adjusted In the three and six months ended June 30, 2024, EBIT (loss)-adjusted decreased primarily due to the restructuring actions taken in the three months ended December 31, 2023 that resulted in a decrease in development costs associated with Cruise's refocused operating strategy.

Current wording

Cruise EBIT (Loss)-Adjusted In the three and nine months ended September 30, 2024, EBIT (loss)-adjusted decreased primarily due to the restructuring actions taken in the three months ended December 31, 2023 that resulted in a decrease in development costs associated with Cruise's refocused operating strategy.

Previous wording

GM Financial Revenue In the three months ended June 30, 2024, total revenue increased primarily due to increased finance charge income of $0.4 billion primarily due to an increase in the effective yield resulting from higher average interest rates on new loans and growth in the size of the portfolio.

Current wording

GM Financial Revenue In the three months ended September 30, 2024, total revenue increased primarily due to increased finance charge income of $0.3 billion primarily due to an increase in the effective yield resulting from higher average interest rates on new loans and growth in the size of the portfolio.

Previous wording

In the six months ended June 30, 2024, total revenue increased primarily due to: (1) increased finance charge income of $0.8 billion primarily due to an increase in the effective yield resulting from higher average interest rates on new loans and growth in the size of the portfolio; and (2) increased investment income of $0.1 billion primarily due to an increase in the average investment balance and higher benchmark interest rates.

Current wording

In the nine months ended September 30, 2024, total revenue increased primarily due to: (1) increased finance charge income of $1.1 billion primarily due to an increase in the effective yield resulting from higher average interest rates on new loans and growth in the size of the portfolio; and (2) increased investment income of $0.1 billion primarily due to an increase in the average investment balance.

Previous wording

GM Financial EBT-Adjusted In the three months ended June 30, 2024, EBT-adjusted increased primarily due to: (1) increased finance charge income of $0.4 billion primarily due to an increase in the effective yield resulting from higher average interest rates on new loans and growth in the size of the portfolio; partially offset by (2) increased interest expense of $0.4 billion primarily due to an increased effective rate of interest on debt, resulting from higher benchmark interest rates on new issuances relative to maturing debt, as well as an increase in average debt outstanding.

Current wording

GM Financial EBT-Adjusted In the three months ended September 30, 2024, EBT-adjusted decreased primarily due to: (1) increased interest expense of $0.3 billion primarily due to an increased effective rate of interest on debt, resulting from higher benchmark interest rates on new issuances relative to maturing debt, as well as an increase in average debt outstanding; and (2) increased provision for loan losses of $0.1 billion primarily due to moderating credit performance; partially offset by (3) increased finance charge income of $0.3 billion primarily due to an increase in the effective yield resulting from higher average interest rates on new loans and growth in the size of the portfolio.

Previous wording

In the six months ended June 30, 2024, EBT-adjusted increased primarily due to: (1) increased finance charge income of $0.8 billion primarily due to an increase in the effective yield resulting from higher average interest rates on new loans and growth in the size of the portfolio; and (2) increased investment income of $0.1 billion primarily due to an increase in the average investment balance and higher benchmark interest rates; partially offset by (3) increased interest expense of $0.7 billion primarily due to an increased effective rate of interest on debt, resulting from higher benchmark interest rates on new issuances relative to maturing debt, as well as an increase in average debt outstanding; and (4) increased provision for loan losses of $0.1 billion primarily due to moderating credit performance and recovery rates.

Current wording

In the nine months ended September 30, 2024, EBT-adjusted decreased primarily due to: (1) increased interest expense of $1.1 billion primarily due to an increased effective rate of interest on debt, resulting from higher benchmark interest rates on new issuances relative to maturing debt, as well as an increase in average debt outstanding; and (2) increased provision for loan losses of $0.1 billion primarily due to moderating credit performance and recovery rates; partially offset by (3) increased finance charge income of $1.1 billion primarily due to an increase in the effective yield resulting from higher average interest rates on new loans and growth in the size of the portfolio; and (4) increased investment income of $0.1 billion primarily due to an increase in the average investment balance.

Previous wording

Our known current material uses of cash include, among other possible demands:(1) capital spending and our investments in our battery cell manufacturing joint ventures of approximately $10.5 billion to $11.5 billion in 2024; (2) payments for engineering and product development activities, including investing in the development and commercialization of AV technology by Cruise; (3) payments associated with previously announced vehicle recalls and any other recall-related contingencies; (4) payments to service debt and other long-term obligations, including discretionary and mandatory contributions to our pension plans; (5) dividend payments on our common stock that are declared by our Board of Directors; (6) payments to purchase shares of our common stock authorized by our Board of Directors; and (7) payments of emission related compliance costs. Our material future uses of cash, which may vary from time to time based on market conditions and other factors, are focused on the three objectives of our capital allocation program: (1) grow our business at an average target return on invested capital-adjusted (ROIC-adjusted) rate of 20% or greater; (2) maintain a strong investment-grade balance sheet, including a target average automotive cash balance of $18.0 billion; and (3) after the first two objectives are met, return available cash to shareholders. Our senior management evaluates our capital allocation program on an ongoing basis and recommends any modifications to the program to our Board of Directors not less than once annually.

Current wording

Our known current material uses of cash include, among other possible demands:(1) capital spending and our investments in our battery cell manufacturing joint ventures of approximately$10.5 billion to $11.5 billion in 2024; (2) payments for engineering and product development activities, including investing in the development and commercialization of AV technology by Cruise; (3) payments associated with previously announced vehicle recalls and any other recall-related contingencies; (4) payments to service debt and other long-term obligations, including discretionary and mandatory contributions to our pension plans; (5) dividend payments on our common stock that are declared by our Board of Directors; (6) payments to purchase shares of our common stock authorized by our Board of Directors; and (7) payments of emissions-related compliance costs. Our material future uses of cash, which may vary from time to time based on market conditions and other factors, are focused on the three objectives of our capital allocation program: (1) grow our business at an average target return on invested capital-adjusted (ROIC-adjusted) rate of 20% or greater; (2) maintain a strong investment-grade balance sheet, including a target average automotive cash balance of $18.0 billion; and (3) after the first two objectives are met, return available cash to shareholders. Our senior management evaluates our capital allocation program on an ongoing basis and recommends any modifications to the program to our Board of Directors not less than once annually.

Previous wording

In November 2023, our Board of Directors increased the capacity under our previously announced share repurchase program by $10.0 billion to an aggregate of $11.4 billion and approved a $10.0 billion ASR program. In December 2023, pursuant to the agreements entered into in connection with the ASR, we advanced $10.0 billion and received approximately 215 million shares of common stock with a value of $6.8 billion, which were immediately retired. In March 2024, upon the first settlement of the transactions contemplated under the ASR Agreements, we received approximately 4 million additional shares, which were immediately retired. The final number of shares ultimately to be purchased will be based on the average of the daily volume-weighted average prices of our common stock during the term of the ASR Agreements, less a discount and subject to adjustments pursuant to the terms and conditions of the ASR Agreements. Upon final settlement, we may receive additional shares of common stock, or, under certain circumstances, we may be required to deliver shares of common stock or to make a cash payment, at our election. The final settlement of the transactions contemplated under the ASR Agreements is expected to occur no later than the three months ending December 31, 2024.

Current wording

In November 2023, our Board of Directors increased the capacity under our previously announced share repurchase program by $10.0 billion to an aggregate of $11.4 billion and approved a $10.0 billion ASR program. In December 2023, pursuant to the agreements entered into in connection with the ASR, we advanced $10.0 billion and received approximately 215 million shares of common stock with a value of $6.8 billion, which were immediately retired. In March 2024, upon the first settlement of the transactions contemplated under the ASR Agreements, we received approximately 4 million additional shares, which were immediately retired. The final number of shares ultimately to be purchased will be based on the average of the daily volume-weighted average prices of our common stock during the term of the ASR Agreements, less a discount and subject to adjustments pursuant to the terms and conditions of the ASR Agreements. Upon final settlement, we may receive additional shares of common stock, or, under certain circumstances, we may be required to deliver shares of common stock or to make a cash payment, at our election. The final settlement of the transactions contemplated under the ASR Agreements is expected to occur in the three months ending December 31, 2024.

Previous wording

In the six months ended June 30, 2024, in addition to shares received under the ASR program, we purchased approximately 31 million shares of our outstanding common stock for $1.4 billion, including an insignificant amount related to purchases initiated in June 2024 that settled in July 2024. We have $6.0 billion in capacity remaining under our share repurchase program as of June 30, 2024, with no expiration date.

Current wording

In the nine months ended September 30, 2024, in addition to shares received under the ASR program, we purchased approximately 53 million shares of our outstanding common stock for $2.4 billion, including an insignificant amount related to purchases initiated in September 2024 that settled in October 2024. We have $5.0 billionin capacity remaining under our share repurchase program as of September 30, 2024, with no expiration date.

Previous wording

In the six months ended June 30, 2024, we paid dividends of $0.3 billion to holders of our common stock.

Current wording

In the nine months ended September 30, 2024, we paid dividends of$0.4 billion to holders of our common stock.

Previous wording

We use credit facilities as a mechanism to provide additional flexibility in managing our global liquidity. Our Automotive borrowing capacity under credit facilities totaled$14.1 billion at June 30, 2024, which consisted oftwo credit facilities and $17.1 billion at December 31, 2023, which consisted ofthree credit facilities. Total Automotive borrowing capacity under our credit facilities does not include our 364-day, $2.0 billion facility allocated for exclusive use of GM Financial. Wedid not haveany borrowings against our primary facilities, but had letters of credit outstanding under our sub-facility of$0.5 billionand $0.7 billion at June 30, 2024 and December 31, 2023.

Current wording

We use credit facilities as a mechanism to provide additional flexibility in managing our global liquidity. Our Automotive borrowing capacity under credit facilities totaled $14.1 billion at September 30, 2024, which consisted of two credit facilities, and $17.1 billion at December 31, 2023, which consisted ofthree credit facilities. Total Automotive borrowing capacity under our credit facilities does not include our 364-day, $2.0 billion facility allocated for exclusive use of GM Financial. We did not haveany borrowings against our primary facilities, but had letters of credit outstanding under our sub-facility of $0.5 billion and $0.7 billion at September 30, 2024 and December 31, 2023.

Previous wording

If available capacity permits, GM Financial continues to have access to our automotive credit facilities. GM Financialdid not have borrowings outstanding against any of these facilities at June 30, 2024 and December 31, 2023. We had intercompany loans from GM Financial of$0.2 billion at June 30, 2024 and December 31, 2023, which primarily consisted of commercial loans to dealers we consolidate. Wedid not have intercompany loans to GM Financial at June 30, 2024 and December 31, 2023. Refer to Note 4 to our condensed consolidated financial statements for additional information.

Current wording

If available capacity permits, GM Financial continues to have access to our automotive credit facilities. GM Financial did nothave borrowings outstanding against any of these facilities at September 30, 2024 and December 31, 2023. We had intercompany loans from GM Financial of $0.2 billion at September 30, 2024 and December 31, 2023, which primarily consisted of commercial loans to dealers we consolidate. We did nothave intercompany loans to GM Financial at September 30, 2024 and December 31, 2023. Refer to Note 4 to our condensed consolidated financial statements for additional information.

Previous wording

GM Financial's Board of Directors declared and paid dividends of $0.9 billion on its common stock in the six months ended June 30, 2024. Future dividends from GM Financial will depend on several factors including business and economic conditions, its financial condition, earnings, liquidity requirements and leverage ratio.

Current wording

GM Financial's Board of Directors declared and paid dividends of $1.4 billion on its common stock in the nine months ended September 30, 2024. Future dividends from GM Financial will depend on several factors including business and economic conditions, its financial condition, earnings, liquidity requirements and leverage ratio.

Previous wording

(a)We had letters of credit outstanding under our sub-facility of$0.5 billionand $0.7 billion at June 30, 2024 and December 31, 2023.

Current wording

(a)We had letters of credit outstanding under our sub-facility of $0.5 billion and $0.7 billion at September 30, 2024 and December 31, 2023.