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What changed in General Motors's 10-K — 2022 vs 2023

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Paragraph-level year-over-year comparison of General Motors's 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+437 added−450 removedSource: 10-K (2024-01-30) vs 10-K (2023-01-31)

Top changes in General Motors's 2023 10-K

437 paragraphs added · 450 removed · 340 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

90 edited+29 added−38 removed49 unchanged
Biggest changeTotal vehicle sales data represents management's good faith estimate based on sales reported by GM's dealers, distributors, and joint ventures, commercially available data sources such as registration and insurance data, and internal estimates and forecasts when other data is not available. 3 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES The following table summarizes industry and GM total vehicle sales and our related competitive position by geographic region (vehicles in thousands): Years Ended December 31, 2022 2021 2020 Industry GM Market Share Industry GM Market Share Industry GM Market Share North America United States 14,200 2,274 16.0 % 15,410 2,218 14.4 % 14,882 2,547 17.1 % Other 3,071 406 13.2 % 3,081 355 11.5 % 2,804 377 13.4 % Total North America 17,270 2,680 15.5 % 18,491 2,574 13.9 % 17,686 2,924 16.5 % Asia/Pacific, Middle East and Africa China(a) 23,464 2,303 9.8 % 25,843 2,892 11.2 % 24,926 2,901 11.6 % Other 20,040 502 2.5 % 19,516 435 2.2 % 17,996 530 2.9 % Total Asia/Pacific, Middle East and Africa 43,504 2,805 6.4 % 45,359 3,326 7.3 % 42,922 3,431 8.0 % South America Brazil 2,103 291 13.8 % 2,119 242 11.4 % 2,055 338 16.4 % Other 1,563 161 10.3 % 1,490 152 10.2 % 1,106 132 12.0 % Total South America 3,666 452 12.3 % 3,609 394 10.9 % 3,160 470 14.9 % Total in GM markets 64,440 5,937 9.2 % 67,459 6,294 9.3 % 63,769 6,826 10.7 % Total Europe 14,101 2 — % 15,108 2 — % 15,043 1 — % Total Worldwide(b)(c) 78,542 5,939 7.6 % 82,567 6,296 7.6 % 78,812 6,826 8.7 % United States Cars 2,806 214 7.6 % 3,277 138 4.2 % 3,331 239 7.2 % Trucks 3,965 1,246 31.4 % 4,038 1,223 30.3 % 4,045 1,257 31.1 % Crossovers 7,428 814 11.0 % 8,095 857 10.6 % 7,506 1,051 14.0 % Total United States 14,200 2,274 16.0 % 15,410 2,218 14.4 % 14,882 2,547 17.1 % China(a) SGMS 1,037 1,277 1,407 SGMW 1,266 1,615 1,494 Total China 23,464 2,303 9.8 % 25,843 2,892 11.2 % 24,926 2,901 11.6 % __________ (a) Includes sales by the Automotive China Joint Ventures (Automotive China JVs): SAIC General Motors Sales Co., Ltd.
Biggest changeTotal vehicle sales data represents management's good faith estimate based on sales reported by our dealers, distributors and joint ventures; commercially available data sources such as registration and insurance data; and internal estimates and forecasts when other data is not available. 2 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES The following table summarizes industry and GM total vehicle sales and our related competitive position by geographic region (vehicles in thousands): Years Ended December 31, 2023 2022 2021 Industry GM Market Share Industry GM Market Share Industry GM Market Share North America United States 15,981 2,595 16.2 % 14,242 2,274 16.0 % 15,410 2,218 14.4 % Other 3,592 460 12.8 % 3,066 406 13.2 % 3,081 355 11.5 % Total North America 19,573 3,055 15.6 % 17,307 2,680 15.5 % 18,491 2,574 13.9 % Asia/Pacific, Middle East and Africa China(a) 24,976 2,099 8.4 % 23,489 2,303 9.8 % 25,843 2,892 11.2 % Other 21,941 576 2.6 % 20,253 505 2.5 % 19,783 435 2.2 % Total Asia/Pacific, Middle East and Africa 46,917 2,675 5.7 % 43,741 2,808 6.4 % 45,626 3,326 7.3 % South America Brazil 2,307 328 14.2 % 2,103 291 13.8 % 2,119 242 11.4 % Other 1,418 128 9.0 % 1,563 160 10.3 % 1,490 152 10.2 % Total South America 3,725 456 12.2 % 3,666 451 12.3 % 3,609 394 10.9 % Total in GM markets 70,215 6,186 8.8 % 64,715 5,939 9.2 % 67,726 6,294 9.3 % Total Europe 16,384 2 — % 14,234 2 — % 15,108 2 — % Total Worldwide(b)(c) 86,600 6,188 7.1 % 78,949 5,941 7.5 % 82,834 6,296 7.6 % United States Cars 3,054 224 7.3 % 2,814 214 7.6 % 3,277 138 4.2 % Trucks 4,249 1,303 30.7 % 3,974 1,246 31.4 % 4,038 1,223 30.3 % Crossovers 8,678 1,068 12.3 % 7,454 814 10.9 % 8,095 857 10.6 % Total United States 15,981 2,595 16.2 % 14,242 2,274 16.0 % 15,410 2,218 14.4 % China(a) SGMS 870 1,037 1,277 SGMW 1,229 1,266 1,615 Total China 24,976 2,099 8.4 % 23,489 2,303 9.8 % 25,843 2,892 11.2 % __________ (a) Includes sales by the Automotive China Joint Ventures (Automotive China JVs): SAIC General Motors Sales Co., Ltd.
We present both wholesale and total vehicle sales data to assist in the analysis of our revenue and our 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.
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.
Emission requirements have become more stringent as a result of stricter standards and new diagnostic requirements that have come into force in many markets around the world, often with very little harmonization. Regulatory authorities may conduct ongoing evaluations of products from all manufacturers. For additional information, refer to Item 1A. Risk Factors.
Emission requirements have become more stringent as a result of stricter standards and new diagnostic requirements that have come into force in many markets around the world, often with very little harmonization. Regulatory authorities may conduct ongoing evaluations of products from all manufacturers. Refer to Item 1A. Risk Factors for additional information.
In addition to federal CAFE standards, the EPA promulgates and enforces GHG emission standards. NHTSA and the EPA have separately finalized standards with differing stringency levels and affected model years, with the CAFE standards addressing the 2024–2026 model years and the GHG standards addressing the 2023–2026 model years. Both the CAFE and GHG standards have been challenged through litigation.
In addition to federal CAFE standards, the EPA promulgates and enforces GHG emission standards. NHTSA and the EPA have separately finalized standards with differing stringency levels and affected model years, with the CAFE standards addressing the 2024–2026 model years and the GHG standards addressing the 2023–2026 model years and both standards have been challenged through litigation.
Global treaties and initiatives such as the Stockholm, Basel and Rotterdam Conventions on Chemicals and Waste, the Minamata Convention on Mercury and EU Registration, Evaluation, Authorization and Restriction of Chemicals (REACH), are driving chemical regulations across signatory countries.
Global treaties and initiatives such as the Basel, Rotterdam and Stockholm Conventions on Chemicals and Waste, the Minamata Convention on Mercury and EU Registration, Evaluation, Authorization and Restriction of Chemicals (REACH), are driving chemical regulations across signatory countries.
Our vision for the future is a world with zero crashes, zero emissions and zero congestion, which guides our growth-focused strategy to invest in electric vehicles (EVs) and autonomous vehicles (AVs), software-enabled services and subscriptions and new business opportunities, while strengthening our market position in profitable internal combustion engine (ICE) vehicles, such as trucks and sport utility vehicles (SUVs).
Our vision for the future is a world with zero crashes, zero emissions and zero congestion, which guides our growth-focused strategy to invest in electric vehicles (EVs) and AVs, software-enabled services and subscriptions and new business opportunities, while strengthening our market position in profitable internal combustion engine (ICE) vehicles, such as trucks and sport utility vehicles (SUVs).
We also have equity ownership stakes in entities that meet the demands of customers in other countries, primarily in China, with vehicles developed, manufactured and/or marketed under the Baojun, Buick, Cadillac, Chevrolet and Wuling brands. Cruise is our global segment responsible for the development and commercialization of autonomous vehicle technology.
We also have equity ownership stakes in entities that meet the demands of customers in other countries, primarily in China, with vehicles developed, manufactured and/or marketed under the Baojun, Buick, Cadillac, Chevrolet and Wuling brands. Cruise is our global segment responsible for the development and commercialization of autonomous vehicle (AV) technology.
Research, Product Development and Intellectual Property Costs for research, manufacturing engineering, product engineering and design and development activities primarily relate to developing new products or services or improving existing products or services, including activities related to vehicle and greenhouse gas (GHG) emissions control, improved fuel economy, EVs, AVs and the safety of drivers and passengers.
Research, Product Development and Intellectual Property Costs for research, manufacturing engineering, software engineering, product engineering and design and development activities primarily relate to developing new products or services or improving existing products or services, including activities related to vehicle and greenhouse gas (GHG) emissions control, improved fuel economy, EVs, AVs and the safety of drivers and passengers.
Increases in the use of circuit boards and other electronics may require additional assessment under the Restriction on Hazardous Substances and Waste from Electrical and Electronic Equipment directives. New European requirements require suppliers of parts and vehicles to the European market to disclose substances of concern in parts. Chemical regulations are increasing in North America.
Increases in the use of circuit boards and other electronics may require additional assessment under the Restriction of Hazardous Substances and Waste from Electrical and Electronic Equipment directives. New European requirements require suppliers of parts and vehicles to the European market to disclose substances of concern in parts. Chemical regulations are increasing in North America.
Production varies from month to month. Vehicle model changeovers occur throughout the year as a result of new market entries. Relationship with Dealers We market vehicles and automotive parts worldwide primarily through a network of independent authorized retail dealers. These outlets include distributors, dealers and authorized sales, service and parts outlets.
Production varies from month to month. Vehicle model changeovers occur throughout the year as a result of new market entries. Relationship with Dealers We market vehicles and automotive parts primarily through a network of independent authorized retail dealers. These outlets include distributors, dealers and authorized sales, service and parts outlets.
Finally in 2022, China began studies regarding the next generation of vehicle emission standards (China 7), which will likely be influenced by the European (Euro 7) standards. Brazil has approved a set of national emission standards referred to as L7, implemented in 2022, and L8, to be implemented from 2025 onward.
In 2022, China began studies regarding the next generation of vehicle emission standards (China 7), which will likely be influenced by the European (Euro 7) standards. Brazil has approved a set of national emission standards referred to as L7, implemented in 2022, and L8, to be implemented from 2025 onward.
Manufacturers may use one or a combination of the following to resolve fleet deficits: credits from the five prior model years, expected credits for the next three model years, credits obtained from other manufacturers, and payment of civil penalties. Manufacturers that do not resolve deficits for a model year may be subject to substantial civil penalties.
Manufacturers may use one or a combination of the following to resolve fleet deficits: credits from the five prior model years, expected credits for the next three model years, credits obtained from other manufacturers or payment of civil penalties. Manufacturers that do not resolve deficits for a model year may be subject to substantial civil penalties.
The program is primarily offered to consumers with a FICO score or its equivalent of less than 620 who have limited access to automobile financing through banks and credit unions and is expected to sustain a higher level of credit losses than prime lending. 6 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES GM Financial generally seeks to fund its operations in each country through local sources of funding to minimize currency and country risk.
The program is primarily offered to consumers with a FICO score or its equivalent of less than 620 who have limited access to automobile financing through banks and credit unions and is expected to sustain a higher level of credit losses than prime lending. 5 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES GM Financial generally seeks to fund its operations in each country through local sources of funding to minimize currency and country risk.
New safety and recall requirements in various countries around the world, including in China, Brazil, and Gulf Cooperation Council countries, also may add substantial costs and complexity to our safety and field action activities globally.
Safety and recall requirements in various countries around the world, including in China, Brazil and Gulf Cooperation Council countries, also may add substantial costs and complexity to our safety and field action activities globally.
In Canada, vehicle regulatory requirements are currently aligned with U.S. regulations; however, under the Canadian Motor Vehicle Safety Act, recall thresholds are different and the Minister of Transport has broad powers to order manufacturers to submit a notice of defect or non-compliance when the Minister considers it to be in the interest of safety.
In Canada, vehicle regulatory requirements are generally aligned with U.S. regulations; however, under the Canadian Motor Vehicle Safety Act, recall thresholds are different and the Minister of Transport has broad powers to order manufacturers to submit a notice of defect or non-compliance when the Minister considers it to be in the interest of safety.
(c) As of March 2022, GM is no longer importing vehicles or parts to Russia, Belarus and other sanctioned provinces in Ukraine. 4 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES As discussed above, total vehicle sales and market share data provided in the table above includes fleet vehicles.
(c) As of March 2022, GM is no longer importing vehicles or parts to Russia, Belarus and other sanctioned provinces in Ukraine. 3 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES As discussed above, total vehicle sales and market share data provided in the table above includes fleet vehicles.
Fundamental to these commitments are our company values. 7 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES Our eight GM behaviors are the foundation of our culture; and how we behave encompasses key measures of our performance, including the ways we conduct ourselves as we work with one another.
Fundamental to these commitments are our company values. 6 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES Our eight GM behaviors are the foundation of our culture; and how we behave encompasses key measures of our performance, including the ways we conduct ourselves as we work with one another.
Competitive Position and Vehicle Sales The principal factors that determine consumer vehicle preferences in the markets in which we operate include overall vehicle design, price, quality, available options, safety, reliability, fuel economy and functionality. Market leadership in individual countries in which we compete varies widely.
Competitive Position and Vehicle Sales The principal factors that determine consumer vehicle preferences in the markets in which we operate include overall vehicle design, price, quality, available options, safety, reliability, fuel economy or range and functionality. Market leadership in individual countries in which we compete varies widely.
Website Access to Our Reports Our internet website address is https://www.gm.com. In addition to the information about us and our subsidiaries contained in this 2022 Form 10-K, information about us can be found on our website including information on our corporate governance principles and practices.
Website Access to Our Reports Our internet website address is https://www.gm.com. In addition to the information about us and our subsidiaries contained in this 2023 Form 10-K, information about us can be found on our website including information on our corporate governance principles and practices.
The Canadian federal government's current vehicle pollutant emission requirements are generally aligned with U.S. federal requirements. 10 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES In 2019, certain areas within China began implementation of the China 6 emission standard (China 6) requirements.
The Canadian federal government's current vehicle pollutant emission requirements are generally aligned with U.S. federal requirements. 9 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES In 2019, certain areas within China began implementation of the China 6 emission standard (China 6) requirements.
The Clean Air Act permits states that have areas with air quality compliance issues to adopt California emission standards in lieu of federal requirements. Seventeen states have adopted California emission standards, and there is a possibility that additional U.S. jurisdictions could adopt California emission requirements in the future.
The Clean Air Act permits states that have areas with air quality compliance issues to adopt California emission standards in lieu of federal requirements. Various other states have adopted California emission standards, and there is a possibility that additional U.S. jurisdictions could adopt California emission standards in the future.
In addition, China has established a mandate that requires passenger car manufacturers to produce a certain volume of plug-in hybrid, battery electric and fuel cell vehicles, which are referred to as New Energy Vehicles (NEVs), to generate credits in 2019 and beyond.
In addition, China has established a mandate that requires passenger car manufacturers to produce a certain volume of plug-in hybrid, battery electric and fuel cell vehicles, which are referred to as New Energy Vehicles (NEVs), from 2019 and beyond.
The European General Safety Regulation has introduced United Nations Economic Commission for Europe (UN-ECE) regulations, which are required for the European Type Approval process. Globally, governments generally have been adopting UN-ECE based regulations with some variations to address local concerns.
The European General Safety Regulation has introduced United Nations Economic Commission for Europe (UNECE) regulations, which are required for the European Type Approval process. Globally, governments generally have been adopting UNECE based regulations with some variations to address local concerns.
Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (Exchange Act), are available free of charge through our website as soon as reasonably practicable after they are electronically filed with or furnished to the Securities and Exchange Commission (SEC).
Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (Exchange Act), are available free of charge through our website as soon as reasonably practicable after they are electronically filed with or furnished to the U.S.
For each model year we must obtain certification that our vehicles and heavy-duty engines will meet emission requirements of the EPA before we can sell vehicles in the U.S. and Canada, and of CARB before we can sell vehicles in California and the states that have adopted California emission requirements.
For each model year, we must obtain certification that our vehicles and engines will meet emission requirements of the EPA before we can sell vehicles in the U.S. and Canada, and of CARB before we can sell vehicles in California and the states that have adopted California emission standards.
Our global vehicle architecture development is headquartered at our Global Technical Center in Warren, Michigan, where our global teams in Design, Program Management & Execution, Component & Subsystem Engineering, Product Safety, Systems & Integration, Software Defined Vehicle & Embedded Platforms, Electrification & Battery Systems, Technology Acceleration & Commercialization and Purchasing & Supply Chain collaborate to meet customer requirements and maximize global economies of scale. 5 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES We continue to invest in key ICE segments, which are critical to fund our all-electric future.
Our global vehicle architecture development is headquartered at our Global Technical Center in Warren, Michigan, where our global teams in Design, Program Management & Execution, Hardware, Systems & Integration, Product Safety, Systems & Certification, Software Defined Vehicle Embedded Platforms, Electrification & Battery Systems, Technology Acceleration & Commercialization and Purchasing & Supply Chain collaborate to meet customer requirements and maximize global economies of scale. 4 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES We continue to invest in key ICE segments, which are critical to fund our all-electric future.
Beyond this, as a part of the EU’s desire to accelerate the shift to sustainable mobility, the EU is looking to develop stricter emission standards (Euro 7) for all petrol and diesel cars, vans, lorries and buses, as it is moving to end the sale of ICE vehicles past 2035, and place requirements on batteries to be used in EVs.
Beyond this, as a part of the EU's desire to accelerate the shift to sustainable mobility, the EU is looking to develop stricter emission standards (Euro 7) for all vehicles (including cars, vans, lorries and buses), as it moves to end the sale of ICE vehicles past 2035, and place requirements on batteries to be used in EVs.
Requirements The National Traffic and Motor Vehicle Safety Act of 1966 (the Safety Act) regulates the vehicles and items of motor vehicle equipment that we manufacture and sell. The Safety Act prohibits the sale in the United States of any new vehicle or equipment that does not conform to applicable federal motor vehicle safety standards established by NHTSA.
Requirements The National Traffic and Motor Vehicle Safety Act of 1966 (the Safety Act) regulates the vehicles and items of motor vehicle equipment that we manufacture and sell. The Safety Act prohibits the sale in the U.S. of any new vehicle or equipment that does not conform to applicable federal motor vehicle safety standards established by NHTSA.
China 6 combines elements of both European Union (EU) and U.S. standards and increases the time and mileage periods over which manufacturers are responsible for a vehicle's emission performance. Nationwide implementation of China 6a for new registrations occurred in January 2021, and the more stringent China 6b is expected to be implemented in July 2023.
China 6 combines elements of both European Union (EU) and U.S. standards and increases the time and mileage periods over which manufacturers are responsible for a vehicle's emission performance. Nationwide implementation of China 6a for new registrations occurred in January 2021, and the more stringent China 6b was implemented in July 2023.
Combined purchases from our two largest suppliers were approximately 11% of our total purchases in the year ended December 31, 2022, approximately 12% of our total purchases in the year ended December 31, 2021, and approximately 11% of our total purchases in the year ended December 31, 2020. Refer to Item 1A. Risk Factors for further discussion of these risks.
Combined purchases from our two largest suppliers were approximately 11% of our total purchases in each of the years ended December 31, 2023 and 2022, and approximately 12% of our total purchases in the year ended December 31, 2021. Refer to Item 1A. Risk Factors for further discussion of these risks.
Our customers can obtain a wide range of after-sale vehicle services and products through our dealer network, such as maintenance, light repairs, collision repairs, vehicle accessories and extended service warranties. The number of authorized dealerships and other agents performing similar functions were 4,639 in GMNA and 7,318 in GMI at December 31, 2022.
Our customers can obtain a wide range of after-sale vehicle services and products through our dealer network, such as maintenance, light repairs, collision repairs, vehicle accessories and extended service warranties. The number of authorized dealerships and other agents performing similar functions were 4,618 in GMNA and 7,050 in GMI at December 31, 2023.
For additional information, refer to Note 16 to our consolidated financial statements. Automotive Fuel Economy and GHG Emissions In the U.S., NHTSA promulgates and enforces Corporate Average Fuel Economy (CAFE) standards for three separate fleets: domestic cars, import cars and light-duty trucks.
For additional information, refer to Note 16 to our consolidated financial statements. Automotive Fuel Economy and GHG Emissions In the U.S., the National Highway Traffic Safety Administration (NHTSA) promulgates and enforces Corporate Average Fuel Economy (CAFE) standards for three separate fleets: domestic cars, import cars and light-duty trucks.
The number of credits per car is based on the level of electric range and energy efficiency, with the goal of increasing NEV volume penetrations and improving technological sophistication over time. Uncommitted NEV credits may be used to assist compliance with the fleet average fuel consumption requirement.
The number of NEV credits per car is based on the electric range, energy efficiency and battery energy density with the goal of increasing NEV volume penetrations and improving technological sophistication over time. Uncommitted NEV credits may be used to assist compliance with the corporate average fuel consumption requirement.
Any difference between North American and UN-ECE based regulations can add complexity and costs to vehicle development, and we continue to support efforts to harmonize regulations to reduce complexity.
Any difference between North American and UNECE based regulations can add complexity and costs to vehicle development, and we continue to support efforts to harmonize regulations to reduce complexity.
Research and development expenses were $9.8 billion, $7.9 billion and $6.2 billion in the years ended December 31, 2022, 2021 and 2020. Product Development The Global Product Development organization is responsible for designing, developing and integrating all global products and their components while aiming to maximize part sharing across multiple vehicle segments.
Research and development expenses were $9.9 billion, $9.8 billion and $7.9 billion in the years ended December 31, 2023, 2022 and 2021. Product Development The Global Product Development organization is responsible for designing, developing, validating and integrating all global products, services and their components while aiming to maximize part sharing across multiple vehicle segments.
Reuss (59) President (2019) Executive Vice President and President, Global Product Development Group and Cadillac (2018) Executive Vice President, Global Product Development, Purchasing & Supply Chain (2014) There are no family relationships between any of the officers named above and there is no arrangement or understanding between any of the officers named above and any other person pursuant to which he or she was selected as an officer.
Reuss (60) President (2019) Executive Vice President and President, Global Product Development Group and Cadillac (2018) There are no family relationships between any of the officers named above and there is no arrangement or understanding between any of the officers named above and any other person pursuant to which he or she was selected as an officer.
The SEC maintains a website that contains reports, proxy and information statements, and other information regarding our filings at https://www.sec.gov. * * * * * * *
Securities and Exchange Commission (SEC). The SEC maintains a website that contains reports, proxy and information statements, and other information regarding our filings at https://www.sec.gov. * * * * * * *
Furthermore, an increased demand for rare earth minerals is increasing scrutiny of the sustainability and human rights implications of rare earth mineral supply chains. In some instances, we purchase systems, components, parts and supplies from a single source, which may increase risk to supply disruptions.
Furthermore, an increased demand for EV critical minerals is increasing scrutiny of the sustainability and human rights implications of these supply chains. In some instances, we purchase systems, components, parts and supplies from a single source, which may increase risk to supply disruptions.
Formal resources 8 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES include, among other things, the Technical Education Program, which offers our employees an opportunity to complete corporate strategically aligned degrees and certificate programs at leading universities, and our Degreed Learning Platform, which brings forth a variety of external and in-house content in learning pathways and other micro learnings.
Formal resources include, among other things, the Technical Education Program, which offers our employees an opportunity to complete corporate strategically aligned degrees and certificate programs at leading universities, and our Degreed Learning Platform, which brings forth a variety of external and in-house content in learning pathways and other micro learnings.
Expected demand for these raw materials currently exceeds the capacity of the existing supply chain and our raw material sourcing strategy aims to secure raw material supply to support our EV transition. Commodity costs are expected to remain elevated due to the macro-economic environment and the continuing existence of tariffs.
Expected demand for these raw materials currently exceeds the capacity of the existing supply chain and our raw material sourcing strategy aims to secure raw material supply to support our EV transition. Commodity costs are reflecting greater variability and are expected to remain elevated due to the macro-economic environment and the continuing existence of government policies.
L7 standards cover tailpipe exhaust gases, durability for emissions, evaporative emissions and noise limits, and include additional OBD requirements and a phase-in for onboard refueling vapor recovery systems. L8 standards include targets for vehicle emissions and reduce corporate exhaust limits every two years until 2031. Some of the requirements are aligned with those of the EPA.
L7 standards cover vehicle exhaust emissions, durability for emissions, evaporative emissions and noise limits, and include additional OBD requirements and a phase-in for onboard refueling vapor recovery systems. L8 standards include corporate average vehicle emissions targets, which increase in stringency every two years until 2031. Some of the requirements are aligned with those of the EPA.
In the EU, increased scrutiny of compliance with emission standards may result in changes to these standards, as well as stricter interpretations or redefinition of these standards and more rigorous enforcement.
In Europe, increased scrutiny of emission standards compliance may result in changes to these standards, as well as stricter interpretations or redefinition of these standards and more rigorous enforcement.
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 year ended December 31, 2022, 30.5% of our wholesale vehicle sales volume was generated outside the U.S.
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 year ended December 31, 2023, 29.4% of our wholesale vehicle sales volume was generated outside the U.S.
This includes securing supply through offtake agreements for EV raw materials, such as lithium, cathode active material, synthetic and natural graphite, nickel, cobalt, rare earth elements and permanent motor magnets. These EV-related agreements may require us to hold higher than normal levels of EV raw materials inventory.
This includes securing supply through offtake agreements for EV raw materials and derivatives thereof, such as lithium, cathode active material, manganese, synthetic and natural graphite, nickel, cobalt, rare earth elements and permanent motor magnets. These EV-related agreements may require us to hold higher than normal levels of EV raw materials inventory and to make long-term commitments to purchase raw materials.
The following table summarizes wholesale vehicle sales by automotive segment (vehicles in thousands): Years Ended December 31, 2022 2021 2020 GMNA 2,926 81.8 % 2,308 80.7 % 2,707 80.3 % GMI 653 18.2 % 551 19.3 % 663 19.7 % Total 3,579 100.0 % 2,859 100.0 % 3,370 100.0 % Total vehicle sales data represents: (1) retail sales (i.e., sales to consumers who purchase new vehicles from dealers or distributors); (2) fleet sales (i.e., sales to large and small businesses, governments and daily rental car companies); and (3) vehicles used by dealers in their businesses.
The following table summarizes wholesale vehicle sales by automotive segment (vehicles in thousands): Years Ended December 31, 2023 2022 2021 GMNA 3,147 83.5 % 2,926 81.8 % 2,308 80.7 % GMI 621 16.5 % 653 18.2 % 551 19.3 % Total 3,768 100.0 % 3,579 100.0 % 2,859 100.0 % Total vehicle sales data represents: (1) retail sales (i.e., sales to consumers who purchase new vehicles from dealers or distributors); (2) fleet sales (i.e., sales to large and small businesses, governments and daily rental car companies); and (3) certain vehicles used by dealers in their business.
Globally, governments continue to introduce new legislation and regulations related to the selection and use of chemicals by mandating broad prohibitions or restrictions and implementing vehicle interior air quality, green chemistry, life cycle analysis 12 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES and product stewardship initiatives.
Globally, governments continue to introduce new legislation and regulations related to the selection and use of chemicals by mandating broad prohibitions or restrictions and implementing vehicle interior air quality, green chemistry, life cycle analysis and product stewardship initiatives.
The following table summarizes estimated fleet sales and those sales as a percentage of total vehicle sales (vehicles in thousands): Years Ended December 31, 2022 2021 2020 GMNA 564 399 493 GMI 426 311 351 Total fleet sales 990 710 844 Fleet sales as a percentage of total vehicle sales 16.7 % 11.3 % 12.4 % Product Pricing Several methods are used to promote our products, including the use of dealer, retail and fleet incentives, such as customer rebates and finance rate support.
The following table summarizes estimated fleet sales and those sales as a percentage of total vehicle sales (vehicles in thousands): Years Ended December 31, 2023 2022 2021 GMNA 679 564 399 GMI 506 426 311 Total fleet sales 1,185 990 710 Fleet sales as a percentage of total vehicle sales 19.2 % 16.7 % 11.3 % Product Pricing Several methods are used to promote our products, including the use of dealer, retail and fleet incentives, such as customer rebates and finance rate support.
Jacobson (51) Executive Vice President and Chief Financial Officer (2020) Delta Air Lines, Executive Vice President — Chief Financial Officer (2013) Gerald Johnson (60) Executive Vice President, Global Manufacturing and Sustainability (2019) Vice President, North America Manufacturing and Labor Relations (2017) Douglas L.
Jacobson (52) Executive Vice President and Chief Financial Officer (2020) Delta Air Lines, Executive Vice President — Chief Financial Officer (2013) Gerald Johnson (61) Executive Vice President, Global Manufacturing and Sustainability (2019) Vice President, North America Manufacturing and Labor Relations (2017) Mark L.
Additionally, we have announced plans to mass-produce battery cells for these and other future EVs through Ultium Cells Holdings LLC (an equally owned joint venture with LG Energy Solution) in Warren, Ohio, Spring Hill, Tennessee and Lansing, Michigan. A fourth U.S.-based battery cell plant is also planned.
Additionally, we have announced plans to mass-produce battery cells for these and other future EVs through Ultium Cells Holdings LLC (an equally owned joint venture with LG Energy Solution) in Warren, Ohio; Spring Hill, Tennessee; and Lansing, Michigan.
In furtherance of this goal, we invest significant resources to retain and develop our talent. In addition to mentoring and networking opportunities, we offer a vast array of career development resources to help develop, grow and enable employees to make the most of their careers at GM.
In addition to mentoring and networking opportunities, we offer a vast array of career development resources to help develop, grow and enable employees to make the most of their careers at GM.
We also have the potential of growing our revenue through our software-enabled services and subscriptions, including OnStar, our advanced driver-assistance systems (ADAS), including Super Cruise, and future offerings, such as our next-generation ADAS, Ultra Cruise, and Ultifi, our end-to-end software platform.
We also have the potential of growing our revenue through our software-enabled services and subscriptions, including OnStar, our advanced driver-assistance systems (ADAS), including Super Cruise driver assistance technology, and our end-to-end software platform.
At December 31, 2022, approximately 46,000 (44%) of our U.S. employees were represented by unions, a majority of which were represented by the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW).
Employees At December 31, 2023, we employed approximately 87,000 (54%) hourly employees and approximately 76,000 (46%) salaried employees. At December 31, 2023, approximately 46,000 (46%) of our U.S. employees were represented by unions, a majority of which were represented by the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW).
In addition, the Company envisions an all-electric future and plans to eliminate tailpipe emissions from new U.S. light-duty vehicles by 2035. These targets align with our growth and transformation plan including our commitment to an all-electric future, which will be enabled by our Ultium platform and HYDROTEC technology as previously detailed.
In addition, the Company plans to eliminate tailpipe emissions from new light-duty vehicles in the U.S. by 2035. These targets align with our growth and transformation plan, including our commitment to an all-electric future.
A key element in our EV strategy is Ultium, our dedicated electric vehicle propulsion architecture. This platform is flexible and will be leveraged across multiple brands and vehicle sizes, styles and drive configurations, allowing for quick response to customer preferences and a shorter design and development lead time compared to our ICE vehicles.
This platform is flexible and will be deployed across multiple brands and vehicle sizes, styles and drive configurations, allowing for quick response to customer preferences and a shorter design and development lead time compared to our ICE vehicles.
In 2021, we began production at GM’s Factory ZERO Detroit-Hamtramck Assembly Center (Factory ZERO), which was re-tooled into a fully dedicated EV facility to produce the GMC HUMMER EV, the upcoming Cruise Origin, the Chevrolet Silverado EV and the GMC Sierra EV.
In 2021, we began production at GM’s Factory ZERO Detroit-Hamtramck Assembly Center (Factory ZERO), which was re-tooled into a fully dedicated EV facility to produce a variety of vehicles, including the GMC HUMMER EV Pickup and SUV, the Chevrolet Silverado EV and the upcoming Cadillac ESCALADE IQ.
The following table summarizes worldwide employment (in thousands): December 31, 2022 GMNA(a) 124 GMI 34 GM Financial 9 Total Worldwide 167 U.S. - Salaried 58 U.S. - Hourly 46 __________ (a) Includes Cruise. 9 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES Information About our Executive Officers As of January 31, 2023, the names and ages of our executive officers and their positions with GM are as follows: Name (Age) Present GM Position (Effective Date) Positions Held During the Past Five Years (Effective Date) Mary T.
The following table summarizes worldwide employment (in thousands): December 31, 2023 GMNA(a) 123 GMI 31 GM Financial 9 Total Worldwide 163 U.S. - Salaried 53 U.S. - Hourly 46 __________ (a) Includes Cruise. 8 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES Information About our Executive Officers As of January 30, 2024, the names and ages of our executive officers and their positions with GM are as follows: Name (Age) Present GM Position (Effective Date) Positions Held During the Past Five Years (Effective Date) Michael Abbott (51) Executive Vice President, Software (2023) Apple, Vice President of Engineering, Cloud Services Division (2018) Mary T.
Further, in August 2022, CARB finalized its Advanced Clean Cars II (ACC II) program, including ZEV standards requiring increasing percentages of ZEVs for the 2026–2035 model years, ending with a 100% sales target in the 2035 model year. CARB must obtain a waiver from EPA to implement its ACC II program.
The EPA’s rescission of its withdrawal of California’s waiver has been challenged through litigation. Further, in August 2022, CARB finalized its Advanced Clean Cars II (ACC II) program, including ZEV standards requiring increasing percentages of ZEVs for the 2026–2035 model years, ending with a 100% sales target in the 2035 model year.
It is also tied to our GM competency and skills model. Employees in some of our technical roles also have the opportunity to participate in the GM Technical Learning University — a training and upskilling program designed to expand and update the technical prowess of our workforce. GM recognizes that leadership effectiveness is a critical business need.
It is also tied to our GM competency and skills model. Employees in some of our technical roles also have the opportunity to participate in the 7 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES GM Technical Learning University — a training and upskilling program designed to expand and update the technical prowess of our workforce.
In Brazil, the Secretary of Industry and Development promulgates and enforces CAFE standards and has enforced a new CAFE program for the period October 2020–September 2026 for light-duty and mid-size trucks and SUVs, including diesel vehicles. The second and third phases of the program are yet to be finalized and are expected to gradually become more stringent for each period.
These standards are anticipated to be more stringent, aligned with the trend observed in other key global markets. In Brazil, the Secretary of Industry and Development promulgates and enforces CAFE standards and has enforced a new CAFE program for the period October 2020–September 2026 for light-duty and mid-size trucks and SUVs, including diesel vehicles.
Develop and Retain Talented People Today, we compete for talent against other automotive companies and against businesses in other sectors, such as technology. To win and keep top talent, we must provide a workplace culture that encourages employee behaviors aligned with our values, fulfills employees' long-term individual aspirations and provides experiences that make individuals feel valued, included and engaged.
To win and keep top talent, we must provide a workplace culture that encourages employee behaviors aligned with our values, fulfills employees' long-term individual aspirations and provides experiences that make individuals feel valued, included and engaged. In furtherance of this goal, we invest significant resources to retain and develop our talent.
China has two fuel economy requirements for passenger vehicles: an individual vehicle pass-fail type approval requirement and a fleet average fuel consumption requirement. With a focus on the fleet average fuel consumption requirement, the China Phase 5 launched in 2021 and full compliance is required by 2025.
China has two fuel consumption requirements for passenger vehicles enforced by the Ministry of Industry and Information Technology (MIIT): an individual vehicle pass-fail type approval requirement and a corporate average fuel consumption (CAFC) requirement. Specific to the CAFC requirement, China introduced Phase 5 in 2021 with full compliance required by 2025.
We are on target to meet the remaining needs of our global operations with 100% renewable energy by 2035. Chemical Regulations We continually monitor the implementation of chemical regulations to maintain compliance and evaluate their effect on our business, suppliers and the automotive industry.
Chemical Regulations We continually monitor the implementation of chemical regulations to maintain compliance and evaluate their effect on our business, suppliers and the automotive industry.
These resources make it easier for salaried, hourly or represented and contract employees to report potential vehicle or workplace safety issues, or to suggest safety related improvements without fear of retaliation. The well-being of our employees is equally as important to entice and stimulate creativity and innovation.
Our unwavering commitment to safety is manifested through empowering employees to “Speak Up for Safety” and the Employee Safety Concern Process. These resources make it easier for salaried, hourly or represented and contract employees to report potential vehicle or workplace safety issues, or to suggest safety related improvements without fear of retaliation.
GHG standards for the 2023–2025 model years. Additionally, the Canadian federal government issued an Emissions Reduction Plan requiring the implementation of increasingly stringent ZEV sales requirements for the 2026–2035 model years, ending with a 100% sales target in the 2035 model year.
Additionally, in 2022, the Canadian federal government issued the 2030 Emissions Reduction Plan requiring the implementation of increasingly stringent ZEV supply regulations for the 2026–2035 model years starting with 20% ZEVs in the 2026 model year and ending with 100% in the 2035 model year.
While NHTSA and the EPA previously took actions to preempt California’s ZEV standards, NHTSA repealed its assertion of preemption and the EPA rescinded its withdrawal of California’s waiver, enabling CARB and 15 adopting states to enforce ZEV standards from the ACC program. The EPA’s rescission of its withdrawal of California’s waiver has been challenged through litigation.
CARB has also imposed a requirement that increases percentages of ZEVs that must be sold in California. While NHTSA and the EPA previously took actions to preempt California’s ZEV standards, NHTSA repealed its assertion of preemption and the EPA rescinded its withdrawal of California’s waiver, enabling CARB and the other adopting states to enforce ZEV standards from the ACC program.
All new managers in the Company are automatically entered into a six-month immersive learning program and all new executives come together for an upskilling and targeted development program designed around the GM leadership profile. Safety and Well-Being The safety and well-being of our employees is also a critical component of our ability to transform the future of personal mobility.
GM recognizes that leadership effectiveness is a critical business need. All new managers in the Company are entered into a three-month immersive learning program and all new executives come together for an upskilling and targeted development program designed around the GM leadership profile.
We recently announced the finalization of energy sourcing agreements required to secure 100% of the energy needed to power all our U.S. facilities with renewable energy by 2025. This is in line with the accelerated target announced in September 2021 and 25 years ahead of the initial target of 2050, set in 2016.
This is in line with the accelerated target announced in September 2021 and 25 years ahead of the initial target of 2050, set in 2016. We are on target to meet the remaining needs of our global operations with 100% renewable energy by 2035.
As a result, GM is required to meet state GHG standards in California and 17 states that have adopted California’s GHG standards. The EPA’s rescission of its withdrawal of California’s waiver has been challenged through litigation. CARB has also imposed a requirement that increases percentages of Zero Emission Vehicles (ZEVs) that must be sold in California.
As a result, GM is required to meet state GHG standards in California and the states that have adopted California’s GHG standards. The EPA’s rescission of its withdrawal of California’s waiver has been challenged through litigation. CARB has not proposed separate GHG standards for the 2026 or later model years, but may do so in the future.
We regularly evaluate our current and future product plans and strategies for compliance with fuel economy and GHG regulations. We plan to be carbon neutral by 2040 in our global products and operations, supported by a commitment to science-based targets.
We regularly evaluate our current and future product plans and strategies for compliance with fuel economy and GHG regulations. GM remains committed to an all-electric future. The Company has approved science-based targets for scope 1, 2 and 3 (Category 11) emissions and has announced plans to become carbon neutral in its global products and operations by 2040.
The Canadian province of Quebec has ZEV requirements regulating the 2018–2025 model years, largely based on California program requirements, and the province 11 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES of British Columbia has similar ZEV regulations that were completed in July 2020 and cover the 2020–2039 model years.
Quebec’s ZEV requirements regulating the 2018–2025 model years are largely based on California program requirements. Quebec recently passed new light-duty ZEV regulations for the 2025–2035 model years that are more stringent than the California program requirements. The province of British Columbia’s light-duty ZEV regulations were completed in July 2020 and cover the 2020–2039 model years.
At GM, we pride ourselves on our commitment to live values that return people home safely — Every Person, Every Site, Every Day. Our unwavering commitment to safety is manifested through empowering employees to “Speak Up for Safety” and the Employee Safety Concern Process.
Safety and Well-Being The safety and well-being of our employees is also a critical component of our ability to transform the future of personal mobility. At GM, we pride ourselves on our commitment to live values that return people home safely — Every Person, Every Site, Every Day.
NHTSA and the EPA also regulate the fuel efficiency and GHG emissions of medium- and heavy-duty vehicles, imposing more stringent standards over time. In addition, CARB has asserted the right to promulgate and enforce its own state GHG standards for motor vehicles, and other states have asserted the right to adopt CARB's standards.
In addition, CARB has asserted the right to promulgate and enforce its own state GHG standards for motor vehicles, and other states have asserted the right to adopt CARB's standards. CARB regulations previously stated that compliance with the light-duty EPA GHG program is deemed compliance with CARB standards.
For example, we have 12 voluntary, employee-led resource groups that provide a forum for diverse employees and allies from a variety of different backgrounds to share experiences and contribute to our collective cultural intelligence and growth. Each group also works to attract and retain new talent and offers employees opportunities to support our company’s diversity initiatives within the community.
Based on these longstanding values, we have a number of programs and partnerships aimed at enhancing our culture of inclusion throughout the Company. For example, we have 12 voluntary, employee-led resource groups that provide a forum for diverse employees and allies from a variety of different backgrounds to share experiences and contribute to our collective cultural intelligence and growth.
We encourage investors to visit our website, as we frequently update and post new information about our company on our website and it is possible that this information could be deemed to be material information. Our website and information included in or linked to our website are not part of this 2022 Form 10-K.
Our Investor Relations website at https://investor.gm.com contains a significant amount of information about us, including financial and other information for investors. We encourage investors to visit our website, as we frequently update and post new information about our company on our website and it is possible that this information could be deemed to be material information.
GM’s unwavering commitment in this regard includes taking steps to ensure that all areas of our business are supportive of a world-class inclusive, equitable and diverse organization.
We believe these strengths will allow us to not only lead the industry but to impact communities around the world as we transition to an all-electric future. This unwavering commitment includes taking steps to ensure that all areas of our business are supportive of a world-class inclusive, equitable and diverse organization.
Additional U.S. jurisdictions could adopt CARB’s ACC and ACC II requirements in the future. In Canada, federal light- and heavy-duty GHG regulations are currently patterned after the EPA GHG emission standards given the integrated nature of the auto sector between Canada and the United States. The Canadian light-duty GHG standards continue to largely align with the U.S.
EPA GHG emission standards given the integrated nature of the auto sector between Canada and the U.S. The Canadian light-duty GHG standards continue to largely align with the U.S. EPA GHG standards for the 2023–2026 model years.
In the U.S., the EPA is moving forward with risk analysis and management of high priority chemicals under the authority of the 2016 Lautenberg Chemical Safety for the 21st Century Act. In addition, several U.S. states have chemical management regulations that can affect vehicle design and manufacturing such as chemical restriction and use requirements.
In the U.S., the EPA is moving forward with risk analysis and management of high priority chemicals under the authority of the 2016 Lautenberg Chemical Safety for the 21st Century Act. The EPA has also issued a per- and polyfluoroalkyl substances (PFAS) reporting rule that requires PFAS use reporting by manufacturers between 2011 and 2022.
China has issued NEV credit targets between 2019 and 2023 and is setting new NEV credit targets aimed at further increasing volumes of NEVs in 2024 and 2025. China has provided various levels of subsidies for NEVs, and certain subsidies were extended to the end of 2022.
China previously issued NEV credit targets between 2019 and 2023 and has set new NEV credit targets aimed at further increasing NEV volumes for 2024 and 2025. In 2022, China began to study the CAFC requirement and NEV credit mandates for 2026–2030 (referred to as Phase 6).
We aim to continue our progress toward becoming a Zero Waste company by diverting greater than 90% of our total operational waste from landfills, incinerators, and energy recovery facilities by 2025. We also continue our efforts to increase our use of renewable energy, improve our energy efficiency and work to drive growth and scale of renewables.
We also continue our efforts to increase our use of renewable energy, improve our energy efficiency and work to drive growth and scale of renewables.
Barra (61) Chair and Chief Executive Officer (2016) Julian Blissett (56) Executive Vice President and President, GM China (2020) Senior Vice President, International Operations (2019) Vice President, Executive Shanghai GM (2014) Stephen K. Carlisle (60) Executive Vice President and President, North America (2020) Senior Vice President and President, Cadillac (2018) President and Managing Director, GM Canada (2015) Craig B.
Barra (62) Chair and Chief Executive Officer (2016) Julian Blissett (57) Executive Vice President and President, GM China (2020) Senior Vice President, International Operations (2019) Vice President, Executive Shanghai GM (2014) Craig B. Glidden (66) Executive Vice President, Legal, Policy, Cybersecurity, and Corporate Secretary (2021) Executive Vice President and General Counsel (2015) Rory V.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeIf our operating environment deteriorates for these or other reasons, such as a moderate to severe recession, it could lead to a significant decrease in new vehicle sales, which could materially and adversely affect our results of operations and financial condition. 16 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES Inflationary pressures and persistently high prices and uncertain availability of commodities, raw materials or other inputs used by us and our suppliers, or instability in logistics and related costs, could negatively impact our profitability.
Biggest changeIf our operating environment deteriorates for these or other reasons, including a moderate to severe recession in any of the markets in which we operate, it could lead to a significant decrease in new vehicle sales, which could materially and adversely affect our results of operations and financial condition.
In particular, to secure critical materials for production of EVs, we have entered, and plan to continue to enter, into offtake agreements with raw material suppliers and make investments in certain raw material suppliers. The terms of these offtake agreements may obligate us to purchase defined quantities of output over a specified period of time, subject to certain conditions.
In particular, to secure critical materials for the production of EVs, we have entered, and plan to continue to enter, into offtake agreements with raw material suppliers and make investments in certain raw material suppliers. The terms of these offtake agreements may obligate us to purchase defined quantities of output over a specified period of time, subject to certain conditions.
Any current or future regulations in these areas could impede the successful commercialization of these technologies and impact whether and how these technologies are designed and integrated into our products, and may ultimately subject us to increased costs and uncertainty. We could be materially adversely affected by unusual or significant litigation, governmental investigations or other proceedings.
Current or any future regulations in these areas could impede the successful commercialization of these technologies and impact whether and how these technologies are designed and integrated into our products, and may ultimately subject us to increased costs and uncertainty. We could be materially adversely affected by unusual or significant litigation, governmental investigations or other proceedings.
We are subject to legal proceedings in the U.S. and elsewhere involving various issues, including product liability lawsuits, warranty litigation, class action litigations alleging product defects, emissions litigation, stockholder litigation, labor and employment litigation and claims and actions arising from restructurings and divestitures of operations and assets. In addition, we are subject to governmental proceedings and investigations.
We are subject to legal proceedings in the U.S. and elsewhere involving various issues, including product liability lawsuits, warranty litigation, class action litigations alleging product defects, emissions litigation, stockholder litigation, labor and employment litigation and claims and actions arising from restructurings and divestitures of operations and assets. In addition, we are subject to various governmental proceedings and investigations.
A negative outcome in one or more of these legal proceedings could result in the imposition of damages, including punitive damages, fines, reputational harm, civil lawsuits and criminal penalties, interruptions of business, modification of business practices, equitable remedies and other sanctions against us or our personnel as well as legal and other costs, all of which may be significant.
A negative outcome in one or more of these proceedings could result in the imposition of damages, including punitive damages, fines, reputational harm, civil lawsuits and criminal penalties, interruptions of business, modification of business practices, equitable remedies and other sanctions against us or our personnel as well as legal and other costs, all of which may be significant.
Climate change regulations at the federal, state or local level or in international jurisdictions could require us to further limit emissions associated with customer use of products we sell, change our manufacturing processes or product portfolio or undertake other activities that may require us to incur additional expense, which may be material.
Regulations at the federal, state or local level or in international jurisdictions could require us to further limit emissions associated with customer use of products we sell, change our manufacturing processes or product portfolio or undertake other activities that may require us to incur additional expense, which may be material.
Security breaches and other disruptions to information technology systems and networked products, including connected vehicles, owned or maintained by us, GM Financial, or third-parties, such as vendors or suppliers, could interfere with our operations and could compromise the confidentiality of private customer data or our proprietary information.
Security breaches, cyberattacks and other disruptions to information technology systems and networked products, including connected vehicles, owned or maintained by us, GM Financial, or third parties, such as vendors or suppliers, could interfere with our operations and could compromise the confidentiality of private customer data or our proprietary information.
Our EV strategy is dependent on our ability to deliver a broad portfolio of high-quality EVs that are competitive and meet consumer demands; scale our EV manufacturing capabilities; reduce the costs associated with the manufacture of EVs, particularly with respect to battery cells and packs; increase vehicle range and the energy density of our batteries; efficiently source sufficient materials for the manufacture of EV battery cells; license and monetize our proprietary platforms and related innovations; successfully invest in new technologies relative to our peers; develop new software and services; and leverage our scale, manufacturing capabilities and synergies with existing ICE vehicles.
Our EV strategy is dependent on our ability to deliver a strategic portfolio of high-quality EVs that are competitive and meet consumer demands; scale our EV manufacturing capabilities; reduce the costs associated with the manufacture of EVs, particularly with respect to battery cells and packs; increase vehicle range and the energy density of our batteries; efficiently source sufficient materials for the manufacture of battery cells; license and monetize our proprietary platforms and related innovations; successfully invest in new technologies relative to our peers; develop new software and services; and leverage our scale, manufacturing capabilities and synergies with existing ICE vehicles.
Geopolitical risk, fluctuations in supply and demand, fluctuations in interest rates, any weakening of the U.S. dollar and other economic and political factors have created and may continue to create pricing pressure for commodities, raw materials and other inputs.
Geopolitical risk, fluctuations in supply and demand, fluctuations in interest rates, any weakening of the U.S. dollar and other economic and political factors have created and may continue to create pricing pressure for commodities, raw materials, energy and other inputs.
Meeting or exceeding the requirements of these regulations is costly, often technologically challenging and may require phase-out of internal combustion propulsion in certain major jurisdictions, and these standards are often not harmonized across jurisdictions.
Meeting or exceeding the requirements of these regulations is costly, often technologically challenging and may require phase-out of internal combustion propulsion vehicles in certain major jurisdictions, and these standards are often not harmonized across jurisdictions.
Our enterprise data practices, including the collection, use, sharing and security of the Personal Identifiable Information of our customers, employees and suppliers, are subject to increasingly complex and restrictive regulations in all key market regions .
Our enterprise data practices, including the collection, use, sharing and security of the personal information of our customers, employees and suppliers, are subject to increasingly complex and restrictive regulations in all key market regions .
Many manufacturers, including GM, have relatively high fixed labor costs as well as limitations on their ability to efficiently close facilities and reduce fixed costs, often as a result of collective bargaining agreements.
Many manufacturers, including GM, have relatively high fixed labor costs as well as limitations on their ability to efficiently close facilities and reduce fixed costs, including as a result of collective bargaining agreements.
Further, if we are unable to prevent or effectively remedy errors, bugs, vulnerabilities or defects in our software and hardware, or fail to deploy updates to our software properly, or if we do not adequately prepare for and respond to new kinds of technological innovations, market developments and changing customer needs, our sales, profitability and long-term competitiveness may be harmed.
Further, if we are unable to prevent or effectively remedy errors, bugs, vulnerabilities or defects in our software and hardware, or fail to deploy updates to our software properly, or if we do not adequately prepare for and respond to new kinds of technological innovations, market developments and changing customer needs and preferences, our sales, profitability and long-term competitiveness may be materially harmed.
In joint ventures we share ownership and management of a company with one or more parties who may not have the same goals, strategies, priorities or resources as we do and may compete with us outside the joint venture. Joint ventures are intended to be operated for the benefit of all co-owners, rather than for our exclusive benefit.
In joint ventures, we share ownership and management of a company with one or more parties who may not have the same goals, strategies, priorities, business incentives or resources as we do and may compete with us outside the joint venture. Joint ventures are intended to be operated for the benefit of all co-owners, rather than for our exclusive benefit.
See “Our long-term strategy is dependent upon our ability to profitably deliver a broad portfolio of EVs” and “Our near-term profitability is dependent upon the success of our current line of full-size ICE SUVs and full-size ICE pickup trucks.” Finally, increased intensity, frequency or duration of storms, droughts or other severe weather events as a result of climate change may disrupt our production and the production, logistics, cost and procurement of products from our suppliers and timely delivery of vehicles to customers, and could negatively impact working conditions at our plants and those of our suppliers.
See “Our long-term strategy is dependent upon our ability to profitably deliver a strategic portfolio of EVs” and “Our near-term profitability is dependent upon the success of our current line of full-size ICE SUVs and full-size ICE pickup trucks.” Finally, increased intensity, frequency or duration of storms, droughts, wildfires or other severe weather events as a result of climate change may disrupt our production and the production, logistics, cost and procurement of products from our suppliers and timely delivery of vehicles to customers, and could negatively impact working conditions at our plants and those of our suppliers.
If we are unable to successfully deliver on our EV strategy, it could materially and adversely affect our results of operations, financial condition and growth prospects, and could negatively impact our brand and reputation. Our near-term profitability is dependent upon the success of our current line of full-size ICE SUVs and full-size ICE pickup trucks.
If we are unable to successfully deliver on our EV strategy, it could materially and adversely affect our results of operations, financial condition and growth prospects, and could negatively impact our brand and reputation. Our near-term profitability is dependent upon the success of our current line of ICE vehicles, particularly our full-size ICE SUVs and full-size ICE pickup trucks.
We expect that to comply with fuel economy and GHG emission standards and mandates to sell specific volumes of ZEV in certain jurisdictions, we will be required to sell a significant volume of EVs, and potentially develop and implement new technologies for conventional internal combustion engines, all of which will require substantial investment and expense.
We expect that to comply with fuel economy and GHG emission standards and mandates to sell specific volumes of ZEVs in certain jurisdictions, we will be required to sell a significant volume of EVs, and potentially develop and implement new technologies for conventional internal combustion engines, all of which will require substantial investment and expense.
The primary factors that could adversely affect GM Financial’s business and operations and reduce its ability to provide financing services at competitive rates include the sufficiency, availability and cost of sources of financing, including credit facilities, securitization programs and secured and unsecured debt issuances; the performance of loans and leases in its portfolio, which could be materially affected by charge-offs, delinquencies and prepayments; wholesale auction values of used vehicles; vehicle return rates and the residual value performance on vehicles GM Financial leases to customers; fluctuations in interest rates and currencies; competition for customers from commercial banks, credit unions and other financing and leasing companies; and changes to regulation, supervision, enforcement and licensing across various jurisdictions.
The primary factors that could adversely affect GM Financial’s business and operations and reduce its ability to provide financing services at competitive rates include the sufficiency, availability and cost of sources of funding, including credit facilities, securitization programs and secured and unsecured debt issuances; the performance of loans and leases in its portfolio, which could be materially affected by charge-offs, delinquencies and prepayments; wholesale auction values of used vehicles; vehicle return rates and the residual value performance on vehicles GM Financial leases to customers; fluctuations in interest rates and currency exchange rates; competition for customers from commercial banks, credit unions and other financing and leasing companies; and changes to regulation, supervision, enforcement and licensing across various jurisdictions.
In addition, we face risks related to the commercial deployment of AVs on our targeted timeline or at all, including consumer acceptance, achievement of adequate safety and other performance standards and compliance with uncertain, evolving and potentially conflicting federal, state, provincial or local regulations.
In addition, we face risks related to the commercial deployment of AVs on our targeted timeline or at all, including consumer acceptance, reputation of our brand, achievement of adequate safety and other performance standards and compliance with uncertain, evolving and potentially conflicting federal, state, provincial or local regulations.
While we offer a broad portfolio of cars, crossovers, SUVs and trucks, and we have announced significant plans to design, build and sell a broad portfolio of EVs, we currently recognize the highest profit margins on our full-size ICE SUVs and full-size ICE trucks.
While we offer a broad portfolio of cars, crossovers, SUVs and trucks, and we have announced significant plans to design, build and sell a strategic portfolio of EVs, we currently recognize the highest profit margins on our full-size ICE SUVs and full-size ICE pickup trucks.
A number of economic and market conditions drive changes in new vehicle sales, including disruptions in the new vehicle supply chain, the availability and prices of used vehicles, levels of unemployment and inflation, availability of affordable financing, fluctuations in the cost of fuel, consumer confidence and demand for vehicles, political unrest or uncertainty, the occurrence of a public health crisis, barriers to trade and other global economic conditions.
A number of economic and market conditions drive changes in new vehicle sales, including disruptions in the new vehicle supply chain, the availability and prices of used vehicles, levels of unemployment and inflation, availability of affordable financing, elevated interest rates, fluctuations in the cost of fuel, consumer confidence and demand for vehicles, political unrest or uncertainty, the occurrence of a public health crisis, barriers to trade and other global economic conditions.
These risk factors are not necessarily in the order of importance or probability of occurrence: Risks related to our competition and strategy If we do not deliver new products, services, technologies and customer experiences in response to increased competition and changing consumer preferences in the automotive industry, our business could suffer.
These risk factors are not necessarily in the order of importance or probability of occurrence: Risks related to our competition and strategy If we do not deliver new products, services, technologies and customer experiences in response to increased competition and changing consumer needs and preferences, our business could suffer.
See “Our operations and products are subject to extensive laws, regulations and policies, including those related to vehicle emissions and fuel economy standards, which can significantly increase our costs and affect how we do business.” In addition, in the U.S. and abroad there are an increasing number of sustainability-related rules and regulations that have been adopted or proposed.
See “Our operations and products are subject to extensive laws, regulations and policies, including those related to vehicle emissions and fuel economy standards, which can significantly increase our costs and affect how we do business.” In addition, at the state and federal level in the U.S. and abroad there are an increasing number of sustainability-related rules and regulations that have been adopted or proposed.
Increasing attention to climate change, increasing societal expectations on companies to address climate change and changes in consumer preferences may result in increased costs, reduced demand for our products, reduced profits, risks associated with new regulatory requirements, risks to our reputation and the potential for increased litigation and governmental investigations.
Increasing attention to climate change, rising societal expectations on companies to address climate change, requirements for increased disclosure and changes in consumer and investor preferences may result in increased costs, reduced demand for our products, reduced profits, risks associated with new regulatory requirements, risks to our reputation and the potential for increased litigation and governmental investigations.
Consumer adoption of EVs could be impacted by numerous factors, including the breadth of the portfolio of EVs available; perceptions about EV features, quality, safety, performance and cost relative to ICE vehicles; the range over which EVs may be driven on a given battery charge; the proliferation of charging infrastructure, in particular with respect to public EV charging stations, and the success of the Company's charging infrastructure programs and strategic joint ventures and other relationships; cost and availability of high fuel-economy ICE vehicles; volatility, or a sustained decrease, in the cost of petroleum-based fuel; failure by governments and other third parties to make the investments necessary to make infrastructure improvements, such as greater availability of cleaner energy grids and EV charging stations, and to provide economic incentives promoting the adoption of EVs, including those contemplated by the Inflation Reduction Act; and negative feedback from stakeholders impacting investor and consumer confidence in our company or industry.
Consumer adoption of EVs could be impacted by numerous factors, including the breadth of the portfolio of EVs available; perceptions about EV features, quality, safety, performance and cost relative to ICE vehicles; the range over which EVs may be driven on a given battery charge; the proliferation and speed of charging infrastructure, in particular with respect to public EV charging stations, and the success of the Company's charging infrastructure programs and strategic joint ventures and other relationships; cost and availability of high fuel-economy ICE vehicles; volatility, or a sustained decrease, in the cost of petroleum-based fuel; failure by governments and other third parties to make the investments necessary to make infrastructure improvements, such as greater availability of cleaner energy grids and EV charging stations, and to provide meaningful and fully utilizable economic incentives promoting the adoption of EVs, including production and consumer credits contemplated by the Inflation Reduction Act (IRA); and negative feedback from stakeholders impacting investor and consumer confidence in our company or industry.
In addition, to prevent unauthorized use of our intellectual property, it may be necessary to prosecute actions for infringement, misappropriation or other violation of our intellectual property against third parties.
In addition, to prevent unauthorized use of our intellectual property, it may be necessary to prosecute actions for infringement, misappropriation or other violations of our intellectual property against third parties.
Any current or future regulations in these areas could impede the successful commercialization of these technologies and impact whether and how these technologies are designed and integrated into our products, and may ultimately subject us to increased costs and uncertainty.
Any current or future regulations in these areas, and our relationships with regulators, could impede the successful commercialization of these technologies and impact whether and how these technologies are designed and integrated into our products, and may ultimately subject us to increased costs and uncertainty.
Our global operations subject us to extensive domestic and foreign legal and regulatory requirements, and a variety of other political, economic and regulatory risks, which may have a material adverse effect on our financial condition or results of operations, including: (1) changes in government leadership; (2) changes in trade compliance, labor, employment, tax, privacy, environmental and other laws, regulations or government policies impacting our overall business model or practices or restricting our ability to manufacture, purchase or sell products consistent with market demand and our business objectives; (3) political pressures to change any aspect of our business model or practices or that impair our ability to source raw materials, services, components, systems and parts, or manufacture products on competitive terms in a manner consistent with our business objectives (including with respect to full utilization of the incentives contemplated by the Inflation Reduction Act); (4) political uncertainty, instability, civil unrest, government controls over certain sectors (including as a result of Russia's invasion of Ukraine and related impacts of the global supply of oil and other raw materials) or human rights concerns; (5) political and economic tensions between governments and changes in international economic policies, including restrictions on the repatriation of dividends or in the export of technology, especially between China and the U.S.; (6) changes to customs requirements or procedures (e.g., inspections) or new or higher tariffs, for example, on products imported into or exported from the U.S., including under U.S. or other trade laws or measures; (7) new or evolving non-tariff barriers or domestic preference procurement requirements, or enforcement of, changes to, withdrawals from or impediments to implementing free trade agreements, or preferences of foreign nationals for domestically manufactured products; (8) changes in foreign currency exchange rates, particularly in Brazil and Argentina, and interest rates; (9) economic downturns or significant changes in conditions in the countries in which we operate; (10) differing local product preferences and product requirements, including government certification requirements related to, among other things, fuel economy, vehicle emissions, EVs and AVs, connected services and safety; (11) impact of changes to and compliance with U.S. and foreign countries’ export controls, economic sanctions and other similar measures; (12) liabilities resulting from U.S. and foreign laws and regulations, including, but not limited to, those related to the Foreign Corrupt Practices Act and certain other anti-corruption laws; (13) differing labor regulations, agreements, requirements and union relationships; (14) differing dealer and franchise regulations and relationships; (15) difficulties in obtaining financing in foreign countries for local operations; and (16) natural disasters, public health crises, including the occurrence of a contagious disease or illness, such as COVID-19, and other catastrophic events.
Our global operations subject us to extensive domestic and foreign legal and regulatory requirements, and a variety of other political, economic and regulatory risks, which may have a material adverse effect on our financial condition or results of operations, including: (1) changes in government leadership; (2) changes in trade compliance, labor, employment, tax, privacy, environmental and other laws, regulations or government policies impacting our overall business model or practices or restricting our ability to manufacture, purchase or sell products consistent with market demand and our business objectives; (3) political pressures to change any aspect of our business model or practices or that impair our ability to source raw materials, services, components, systems and parts, or manufacture products on competitive terms in a manner consistent with our business objectives (including with respect to full utilization of the incentives contemplated by the IRA); (4) political uncertainty, instability, civil unrest, government controls over certain sectors or human rights concerns; (5) political and economic tensions between governments and changes in international economic policies, including restrictions on the repatriation of dividends or in the export of technology, especially between China and the U.S.; (6) changes to customs requirements or procedures (e.g., inspections) or new or higher tariffs, for example, on products imported into or exported from the U.S., including under U.S. or other trade laws or measures, or other key markets; (7) new or evolving non-tariff barriers or domestic preference procurement requirements, or enforcement of, changes to, withdrawals from or impediments to implementing free trade agreements, or preferences of foreign nationals for domestically manufactured products; (8) changes in foreign currency exchange rates, particularly in Argentina, and interest rates; (9) economic downturns or significant changes in macroeconomic conditions in the countries in which we operate; (10) differing local product preferences and product requirements, including government certification requirements related to, among other things, fuel economy, vehicle emissions, EVs and AVs, connected services and safety; (11) impact of changes to and compliance with U.S. and foreign countries’ export controls, economic sanctions and other similar measures; (12) impacts on our operations or liabilities resulting from U.S. and foreign laws and regulations, including, but not limited to, those related to the Foreign Corrupt Practices Act and certain other anti-corruption laws; (13) differing labor regulations, agreements, requirements and union relationships; (14) differing dealer and franchise regulations and relationships; (15) difficulties in obtaining financing in foreign countries for local operations; and (16) natural disasters, public health crises, and other catastrophic events.
Because of this product development cycle and the various elements that may contribute to consumers’ acceptance of new vehicle designs, including competitors’ product introductions, technological innovations, fuel prices, general economic conditions, regulatory developments, transportation infrastructure and changes in quality, safety, reliability and styling demands and preferences, an initial product concept or design may not result in a saleable vehicle or a vehicle that generates sales in sufficient quantities and at high enough prices to be profitable.
Because of this product development cycle and the various elements that may contribute to consumers’ acceptance of new vehicle designs, including competitors’ product introductions, technological innovations, fuel prices, general economic conditions, regulatory developments, including tax credits or other government policies in various countries, transportation infrastructure and changes in quality, safety, reliability and styling demands and preferences, an initial product concept or design may not result in a saleable vehicle or a vehicle that generates sales in sufficient quantities and at high enough prices to be profitable.
Specifically, fuel economy and GHG emission regulations at the federal, state or local level or in international jurisdictions could require us to further limit the sale of certain profitable products, subsidize the sale of less profitable ones, change our manufacturing processes, pay penalties or undertake other activities that may require us to incur additional expense, which may be material.
Specifically, fuel economy and GHG emission regulations at the federal, state or local level or in international jurisdictions could require us to further limit the sale of certain profitable products, subsidize the sale of less profitable ones, change our manufacturing processes, pay increased penalties, purchase additional credits from our competitors or undertake other activities that may require us to incur additional expense, which may be material.
In addition, any increase in the cost, or reduced availability, of critical materials for our EV propulsion systems, including lithium, nickel, cobalt and certain rare earth metals, could lead to higher production costs for our EVs and could impede our ability to successfully deliver on our EV strategy.
In addition, elevated cost, or reduced availability, of critical materials for our EV propulsion systems, including lithium, nickel, cobalt and certain rare earth metals, could lead to higher production costs for our EVs and could impede our ability to successfully deliver on our EV strategy.
In addition, many of our operations, primarily in China and Korea as well as certain of our battery manufacturing operations in the U.S. and Canada, are carried out by joint ventures.
In addition, many of our operations, primarily in China and Korea as well as certain of our battery manufacturing and raw material sourcing operations in the U.S. and Canada, are carried out by joint ventures.
Our long-term strategy is dependent upon our ability to profitably deliver a broad portfolio of EVs. The production and profitable sale of EVs has become increasingly important to our long-term business as we accelerate our transition to an all-electric future.
Our long-term strategy is dependent upon our ability to profitably deliver a strategic portfolio of EVs. The production and profitable sale of EVs has become increasingly important to our long-term business as we continue our transition to an all-electric future.
Any near-term shift in consumer preferences toward smaller, more fuel-efficient vehicles, whether as a result of increases in the price of oil or any sustained shortage of oil, including as a result of global political instability (such as related to Russia's invasion of Ukraine), concerns about fuel consumption or GHG emissions, or other reasons, could weaken the demand for our higher margin vehicles.
Any near-term shift in consumer preferences toward smaller, more fuel-efficient vehicles, whether as a result of increases in the price of oil or any sustained shortage of oil, including as a result of global political instability (such as related to the ongoing conflicts in Ukraine and Gaza), concerns about fuel consumption or GHG emissions, or other reasons, could weaken the demand for our higher margin vehicles.
When these or other facilities become unavailable either temporarily or permanently for any number of reasons, including labor disruptions, supply chain disruptions, the occurrence of a contagious disease or illness or catastrophic weather events, whether or not as a result of climate change, the inability to manufacture at the affected facility has resulted, and may in the future result, in harm to our reputation, increased costs, lower revenues and the loss of customers.
When these or other facilities become unavailable, either temporarily or permanently and for any number of reasons, including labor disruptions or shortages, supply chain disruptions, the occurrence of a public health crisis or catastrophic weather events, whether or not as a result of climate change, the inability to manufacture at the affected facility has resulted, and may in the future result, in harm to our reputation, increased costs, lower revenues and the loss of customers.
Risks related to defined benefit pension plans Our pension funding requirements could increase significantly due to a reduction in funded status as a result of a variety of factors, including weak performance of financial markets, declining interest rates, changes in laws or regulations, or changes in assumptions or investments that do not achieve adequate returns.
Risks related to defined benefit pension plans Our pension funding requirements could increase significantly due to a reduction in funded status as a result of a variety of factors, including weak performance of financial markets, declining interest rates, changes in the level of benefits provided for by the plans, changes in laws or regulations, or changes in assumptions or investments that do not achieve adequate returns.
Despite our security measures and business continuity plans, our information technology systems and networked and connected products may be vulnerable to damage, disruptions or shutdowns caused by attacks by hackers, computer viruses, malware (including “ransomware”), phishing attacks or breaches due to errors or malfeasance by employees, contractors and others who have access to these systems and products.
Despite our security measures and business continuity plans, our information technology systems and networked and connected products may be vulnerable to intrusion, damage, disruptions or shutdowns caused by attacks by hackers, computer viruses or worms, malware (including “ransomware”), phishing attacks, denial of service attacks or breaches due to errors, negligence or malfeasance by employees, contractors and others who have access to these systems and products.
There are limits on our ability to achieve fuel economy improvements over a given time frame, primarily relating to the cost and effectiveness of available technologies, lack of sufficient consumer acceptance of new technologies and of changes in vehicle mix, lack of willingness of consumers to absorb the additional costs of new technologies, the appropriateness (or lack thereof) of certain technologies for use in particular vehicles, the widespread availability (or lack thereof) of supporting infrastructure for new technologies, especially for EVs, and the human, engineering and financial resources necessary to deploy new technologies across a wide range of products and powertrains in a short time.
There are limits on our ability to achieve fuel economy improvements over a given time frame, primarily relating to the cost and effectiveness of available technologies, lack of sufficient consumer acceptance of new technologies and of changes in vehicle mix, lack of willingness of consumers to absorb the additional costs of new technologies, the appropriateness (or lack thereof) of certain technologies for use in particular vehicles, the widespread availability (or lack thereof) of supporting infrastructure for new technologies, especially with respect to EVs, the availability (or lack thereof) of the raw materials and component supply to make batteries and other elements of EVs, and the human, engineering and financial resources necessary to deploy new technologies across a wide range of products and powertrains in a short time.
Increases in prices, including as a result of inflation and rising interest rates, for commodities, raw materials or other inputs that we and our suppliers use in manufacturing products, systems, components and parts, such as steel, precious metals, non-ferrous metals, critical minerals or other similar raw materials, or increases in logistics and related costs, have led and may continue to lead to higher production costs for parts, components and vehicles.
Increases in prices, including as a result of inflation and rising interest rates, for commodities, raw materials, energy or other inputs that we and our suppliers use in manufacturing products, systems, components and parts, such as steel, precious metals, non-ferrous metals, critical minerals or other similar raw materials, or increases in logistics and related costs, have led and may 16 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES continue to lead to higher production costs for parts, components and vehicles.
Our high proportion of fixed costs, both due to our significant investment in property, plant and equipment as 14 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES well as other requirements of our collective bargaining agreements, which limit our flexibility to adjust personnel costs to changes in demands for our products, may further exacerbate the risks associated with incorrectly assessing demand for our vehicles.
Our high proportion of fixed costs, both due to our significant investment in property, plant and equipment as well as other requirements of our collective bargaining agreements, which limit our flexibility to adjust personnel costs to changes in demands for our products, may further exacerbate the risks associated with incorrectly assessing demand for our vehicles.
In particular, we could experience among other things: (1) continued or additional global supply disruptions, including a delayed recovery from the global semiconductor supply shortage; (2) labor disruptions; (3) an inability to manufacture; (4) an inability to sell to our customers; (5) a decline in showroom traffic and customer demand during and following the pandemic; (6) customer defaults on automobile loans and leases; (7) lower than expected pricing on vehicles sold at auction; and (8) an impaired ability to access credit and the capital markets.
In particular, we could experience, among other things: (1) continued or additional global supply disruptions; (2) labor disruptions or shortages; (3) an inability to manufacture; (4) an inability to sell to our customers; (5) a decline in showroom traffic and customer demand; (6) customer defaults on automobile loans and leases; (7) lower than expected pricing on vehicles sold at auction; and (8) an impaired ability to access credit and the capital markets.
Pandemics, epidemics or disease outbreaks in the U.S. or globally, including the COVID-19 pandemic, has disrupted, and may in the future disrupt, our business, which could materially affect our results of operations, financial condition, liquidity and future expectations.
Pandemics, epidemics or disease outbreaks in the U.S. or globally, such as the COVID-19 pandemic, have previously disrupted, and may in the future disrupt, our business, which could materially affect our results of operations, financial condition, liquidity and future expectations.
However, hackers have reportedly attempted, and may attempt in the future, to gain unauthorized access to modify, alter and use such systems to gain control of, or to change, our vehicles’ functionality, user interface and performance characteristics, or to gain access to data stored in or generated by the vehicle.
However, hackers and other malicious actors have reportedly attempted, and may attempt in the future, to gain unauthorized access to modify, alter and use networks, vehicle software or their systems to gain control of, or to change, our vehicles’ functionality, user interface and performance characteristics, or to gain access to data stored in or generated by the vehicle.
Manufacturers in countries that have lower production costs, such as China and India, have become competitors in key emerging markets and have announced their intention to export their products to established markets as a low-cost alternative to established entry-level automobiles.
Manufacturers in countries that have lower production costs, such as China and India, have become competitors in key emerging markets and have begun offering their products in established markets, as well as a low-cost alternative to established entry-level automobiles.
The failure to comply with these laws could result in significant statutory civil and criminal penalties, monetary damages, attorneys’ fees and costs, possible revocation of licenses and damage to reputation, brand and valued customer relationships.
The failure 22 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES to comply with these laws could result in significant statutory civil and criminal penalties, monetary damages, attorneys’ fees and costs, possible revocation of licenses and damage to reputation, brand and valued customer relationships.
We also face the risk of operational disruption, failure, termination or capacity constraints of any of the third parties that facilitate our business activities, including vendors, service providers, suppliers, customers, counterparties, exchanges, clearing agents, clearinghouses or other financial 19 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES intermediaries.
We also face the risk of operational disruption, failure, termination or capacity constraints of any of the third parties that facilitate our business activities, including vendors, service providers, suppliers, customers, counterparties, exchanges, clearing agents, clearinghouses or other financial intermediaries.
Any unauthorized access to or control of our vehicles or their systems could adversely impact the safety of our customers or result in legal claims or proceedings, liability or regulatory penalties.
Any unauthorized access to, or control of, our vehicles or their systems or any unauthorized access to or loss of data could adversely impact the safety of our customers or result in failure of our systems, any of which could result in interruptions to our business, legal claims or proceedings, liability or regulatory penalties.
Our business in China is subject to aggressive competition from many of the largest global manufacturers and numerous domestic manufacturers as well as non-traditional market participants, such as domestic technology companies.
Our business in China is subject to aggressive competition from many of the largest global manufacturers and numerous domestic manufacturers, which have experienced significant growth in customer acceptance, as well as non-traditional market participants, such as domestic technology companies.
Pandemics, epidemics, disease outbreaks and other public health crises, such as the COVID-19 pandemic, have disrupted our business and operations, and future public health crises could materially adversely impact our business, financial condition, liquidity and results of operations.
Pandemics, epidemics, disease outbreaks and other public health crises have disrupted our business and operations, and future public health crises could materially adversely impact our business, financial condition, liquidity and results of operations.
Techniques used in cybersecurity attacks to obtain unauthorized access, disable or sabotage information technology systems change frequently, as data breaches and other cybersecurity events have become increasingly commonplace, including as a result of the intensification of state-sponsored cybersecurity attacks during periods of geopolitical conflict, such as the ongoing conflict in Ukraine.
Techniques used in cyberattacks to obtain unauthorized access to, disable or sabotage information technology systems are increasingly diverse and sophisticated. Data breaches and other cybersecurity events have become increasingly commonplace, including as a result of the intensification of state-sponsored cyberattacks during periods of geopolitical conflict.
Any new pandemic or other public health crises, or future public health crises, could have a material impact on our business, financial condition and results of operations going forward.
Any new public health crisis could have a material impact on our business, financial condition and results of operations going forward.
To successfully execute our long-term strategy, we must continue to develop new products and services, including products and services that are outside of our historically core ICE business, such as EVs and AVs, software-enabled connected services and other new businesses. Our vehicles and connected services increasingly rely on software and hardware that is highly technical and complex.
To successfully execute our long-term strategy, we must continue to develop and commercialize new products and services, including products and services that are outside of our historically core ICE business, such as EVs and AVs, software-enabled connected services and other new businesses.
These circumstances can also result in damage to brand image, brand equity and consumer trust in our products and ability to lead the disruption occurring in the automotive industry. We currently source a variety of systems, components, raw materials and parts from third parties.
These circumstances can also result in damage to brand image, brand equity and consumer trust in our products and ability to lead the industry with respect to new technologies, such as EVs and AVs. We currently source a variety of systems, components, raw materials and parts from third parties.
Any number of factors, including labor disruptions, catastrophic weather events, the occurrence of a public health crisis, such as a global pandemic, contractual or other disputes, unfavorable economic or industry conditions, delivery delays or other performance problems or financial difficulties or solvency problems, could disrupt our 18 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES suppliers’ operations and lead to uncertainty in our supply chain or cause supply disruptions for us, which could, in turn, disrupt our operations, including the production of certain higher margin vehicles.
Any number of factors, including labor disruptions, catastrophic weather events, the occurrence of a public health crisis, contractual or other disputes, unfavorable economic or industry conditions, restrictions on transactions involving certain territories, entities or individuals, delivery delays or other performance problems or financial difficulties or solvency problems, could disrupt our suppliers’ operations and lead to uncertainty in our supply chain or cause supply disruptions for us, which could, in turn, disrupt our operations, including the production of certain higher margin vehicles.
Examples include implementation of significant changes in investment policy, insufficient market liquidity in particular asset classes and the inability to quickly rebalance illiquid and long-term investments. 22 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES Factors that affect future funding requirements for our U.S. defined benefit plans generally affect the required funding for non-U.S. plans.
There are additional risks due to the complexity and magnitude of our investments. Examples include implementation of significant changes in investment policy, insufficient market liquidity in particular asset classes and the inability to quickly rebalance illiquid and long-term investments. Factors that affect future funding requirements for our U.S. defined benefit plans generally affect the required funding for non-U.S. plans.
In addition, an evolving but un-harmonized emissions and fuel economy regulatory framework that could include specific sales mandates may limit or dictate the types of vehicles we sell and where we sell them, which can 20 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES affect our revenues. Refer to the “Environmental and Regulatory Matters” section of Item 1.
In addition, an evolving but un-harmonized emissions and fuel economy regulatory framework that could include specific sales mandates may limit or dictate the types of vehicles we sell and where we sell them, which can affect our revenues and profitability. Refer to the “Environmental and Regulatory Matters” section of Item 1. Business for further information on regulatory and environmental requirements.
The secure operation of these systems and products, and the processing and maintenance of the information processed by these systems and products, is critical to our business operations and strategy.
The secure operation of these systems and products, and the 19 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES processing and maintenance of the information processed by these systems and products, is critical to our business operations and strategy.
Part of our strategy to address these risks includes our transition to EVs, which presents additional risks, including reduced demand for, and therefore profits from, our ICE vehicles, which we are using to fund our growth strategy; higher costs or reduced availability of materials related to EV technologies impacting profitability, particularly with respect to batteries and battery raw material; and risks related to the success of our EV strategy, particularly with respect to advancement of battery cell technology, charging infrastructure and competition.
Part of our strategy to address these risks includes our transition to EVs, which presents additional risks, including reduced demand for, and therefore profits from, our ICE vehicles, which we are using to fund our growth strategy and transition to EVs; higher costs or reduced availability of materials related to EV technologies, whether as a result of increased competition or more stringent regulatory requirements, impacting profitability, particularly with respect to batteries and battery raw material; risks related to the success of our EV strategy, particularly with respect to advancement of battery cell technology, charging infrastructure and competition; and uncertainty over how EVs will be treated under upcoming CAFE regulations.
The process of designing and developing new technology, products and services is costly and uncertain and requires extensive capital investment and the ability to retain and recruit the best talent.
The process of designing and developing new technology, products and services is costly and uncertain and requires extensive capital investment.
The global automotive industry is highly competitive in terms of the quality, innovation, new technologies, pricing, fuel economy, reliability, safety, customer service and financial services offered. Additionally, overall manufacturing capacity in the industry has historically far exceeded demand.
The global automotive industry is highly competitive in terms of the quality, innovation, new technologies, pricing, fuel economy, reliability, safety, customer service and financial services offered.
We manufacture, sell and service products globally and rely upon an integrated global supply chain to deliver the raw materials, components, systems and parts that we need to manufacture our products.
The international scale and footprint of our operations expose us to additional risks. We manufacture, sell and service products globally and rely upon an integrated global supply chain to deliver the raw materials, components, systems and parts that we need to manufacture our products.
Compliance with these laws and regulations requires that GM Financial maintain forms, processes, procedures, controls and the infrastructure to support these requirements, and these laws and regulations often create operational constraints both on GM Financial’s ability to implement servicing procedures and on pricing. Laws in the financial services industry are designed primarily for the protection of consumers.
Compliance with these laws and regulations requires that GM Financial maintain forms, processes, procedures, controls and the infrastructure to support these requirements. Laws in the financial services industry are designed primarily for the protection of consumers.
Any such events may adversely impact our global supply chain and global manufacturing operations and cause us to again suspend our operations in the U.S., China and elsewhere.
Any such events may adversely impact our global supply chain and global manufacturing operations and cause us to suspend our operations in the affected markets.
Such regulations may also subject us to new disclosure requirements, which could result in risks to our reputation or consumer demand for our products if we do not meet increasingly demanding stakeholder expectations and standards.
Such regulations may subject us to new disclosure requirements, new supply chain requirements, new trade restrictions and increased risk of litigation or regulatory action, which could result in increased costs (in our operations and supply chain) and risks to our reputation or consumer demand for our products if we do not meet increasingly demanding stakeholder expectations and standards.
To the extent another party makes decisions that negatively impact the joint venture or internal control issues arise within the joint venture, we may have to take responsive actions, or we may be subject to penalties, fines or other punitive actions for these activities. The international scale and footprint of our operations expose us to additional risks.
To the extent another party makes decisions that negatively impact the joint venture or internal control issues arise within the joint venture, we may have to take responsive actions, or we may be subject to penalties, fines or other punitive actions or suffer reputational harm for these activities.
Further, as an entity operating in the financial services sector, GM Financial is required to comply with a wide variety of laws and regulations that may be costly to adhere to and may affect our consolidated operating results.
Any uncertainties associated with these benchmark rates may impact GM Financial's ability to manage interest rate risk effectively. Further, as an entity operating in the financial services sector, GM Financial is required to comply with a wide variety of laws and regulations that may be costly to adhere to and may affect our consolidated operating results.
As a result, we may be unable to prevent violations of applicable laws or other misconduct by a joint venture or the failure to satisfy contractual obligations by one or more parties.
As a result, we may be unable to prevent violations of applicable laws or other misconduct by a joint venture or the failure to satisfy contractual obligations by one or more parties. Moreover, a joint venture may not be subject to the same financial reporting, corporate governance, or compliance approaches that we follow.
We are subject to risks associated with climate change, including increased regulation of GHG emissions, changing consumer preferences and other risks related to our transition to EVs and the potential increased impacts of severe weather events on our operations and infrastructure.
At this time, we are not able to predict when Cruise will resume driverless testing or commercial AV operations. We are subject to risks associated with climate change, including increased regulation of GHG emissions, changing consumer preferences and other risks related to our transition to EVs and the potential increased impacts of severe weather events on our operations and infrastructure.
The new vehicle development process can take two years or more, and a number of factors may lengthen that time period.
Successful launches of our new vehicles are critical to our short-term profitability. The new vehicle development process can take two years or more, and a number of factors may lengthen that time period.
We benefit from many ongoing strategic business relationships, and a significant amount of our operations are conducted by joint ventures, which we cannot operate solely for our benefit.
We benefit from many ongoing strategic business relationships, particularly with respect to facilitating access to raw materials necessary for the production of EVs, and a significant amount of our operations are conducted by joint ventures, which we cannot operate solely for our benefit.
For a further discussion of these matters refer to Note 16 to our consolidated financial statements. The costs and effect on our reputation of product safety recalls and alleged defects in products and services could materially adversely affect our business. Government safety standards require manufacturers to remedy certain product safety defects through recall campaigns and vehicle repurchases.
For a further discussion of certain of these matters, refer to Note 16 to our consolidated financial statements. 21 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES The costs and effect on our reputation of product safety recalls and alleged defects in products and services could materially adversely affect our business.
Disruption in our suppliers’ operations have disrupted, and could in the future disrupt, our production schedule. Our automotive operations are dependent upon the continued ability of our suppliers to deliver the systems, components, raw materials and parts that we need to manufacture our products. Our use of “just-in-time” manufacturing processes allows us to maintain minimal inventory.
Disruption in our suppliers’ operations have disrupted, and could in the future disrupt, our production schedule. Our automotive operations are dependent upon the continued ability of our suppliers to deliver the systems, components, raw 18 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES materials and parts that we need to manufacture our products.
In addition, our tax liabilities are subject to other significant risks and uncertainties, including those arising from potential changes in laws and regulations in the countries in which we do business, the possibility of adverse determinations with respect to the application of existing laws (in 21 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES particular with respect to full realization of the incentives contemplated by the Inflation Reduction Act), changes in our business or structure and changes in the valuation of our deferred tax assets and liabilities.
In addition, our tax liabilities are subject to other significant risks and uncertainties, including those arising from potential changes in laws and regulations in the countries in which we do business (for example, the Organisation for Economic Co-Operation and Development proposals, including the introduction of global minimum tax standards), the possibility of tax controversy related to adverse determinations with respect to the application of existing laws (in particular, with respect to full realization of the incentives contemplated by the IRA), changes in our business or structure and changes in the valuation of our deferred tax assets and liabilities.
In addition, our success in China depends upon our ability to adequately address unique market and consumer preferences driven by advancements related to EVs, infotainment, software-enabled connected services and other new technologies. Our ability to fully deploy our technologies in China may be impacted by evolving laws and regulations in the U.S. and China.
In addition, our success in China depends upon our ability to adequately address unique market and consumer preferences driven by advancements related to EVs, infotainment, software-enabled connected services and other new technologies while achieving industry-leading affordability.
If our access to capital were to become significantly constrained, if costs of capital increased significantly, or if our ability to raise capital is challenged relative to our peers, in each case including as a result of any constraints on lending due to concerns about climate change, our ability to execute on our strategic plans could be adversely affected.
If our access to capital were to become significantly constrained, if costs of capital increased significantly, or if our ability to raise capital is challenged relative to our peers, our ability to execute on our strategic plans could be adversely affected.
More stringent fuel economy regulations could also impact our ability to sell these vehicles or could result in additional costs associated with these vehicles.
More stringent fuel economy 14 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES regulations could also impact our ability to sell these vehicles or could result in additional costs associated with these vehicles, which could be material.
The growing patchwork of state and country regulations imposes burdensome obligations on companies to quickly respond to consumer requests, such as requests to delete, disclose and stop selling personal information, with significant fines for noncompliance. Complying with these new laws has significantly increased, and may continue to increase, our operating costs and is driving increased complexity in our operations.
The growing patchwork of state and country regulations imposes burdensome obligations on companies to quickly respond to consumer requests, such as requests to delete, disclose and stop selling personal information, with significant fines for noncompliance.
Further, some of the benefits from a successful joint venture are shared among the co-owners, therefore we do not receive all the benefits from our successful joint ventures. In addition, because we share ownership and management with one or more parties, we may have limited control over the actions of a joint venture, particularly when we own a minority interest.
In addition, because we share ownership and management with one or more parties, we may have limited control over the actions of a joint venture, particularly when we own a minority interest.
Certain risks and uncertainties of doing business in China are solely within the control of the Chinese government, and Chinese law regulates the scope of our investments and business conducted within China. The Chinese government may adopt new regulations that may impact entities operating in China, potentially with little advance notice.
Certain risks and uncertainties of doing business in China are solely within the control of the Chinese government, and Chinese law regulates the scope of our investments and business conducted within China.
In addition, substantially all of our hourly employees are represented by unions and covered by collective bargaining agreements that must be negotiated from time-to-time, including at the local facility level.
In addition, substantially all of our hourly employees are represented by unions and covered by collective bargaining agreements that must be negotiated from time-to-time, including at the local facility level. As a result, we may be subject to an increased risk of strikes, work stoppages or other types of conflicts with labor unions and employees.

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Item 2. Properties

Properties — owned and leased real estate

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Biggest changeThe major facilities outside the U.S., which are principally vehicle manufacturing and assembly operations, are located in Brazil, Canada, China, Mexico and South Korea. GM Financial owns or leases facilities for administration and regional credit centers. GM Financial has 35 facilities, of which 22 are located in the U.S.
Biggest changeGM Financial owns or leases facilities for administration and regional credit centers. GM Financial has 35 facilities, of which 22 are located in the U.S. The major facilities outside the U.S. are located in Brazil, Canada, China and Mexico. * * * * * * *
Item 2. Properties At December 31, 2022, we had over 100 locations in the U.S. (excluding our automotive financing operations and dealerships), which are primarily for manufacturing, assembly, distribution, warehousing, engineering and testing. We, our subsidiaries or associated companies in which we own an equity interest, own most of these properties and/or lease a portion of these properties.
Item 2. Properties At December 31, 2023, we had over 100 locations in the U.S. (excluding our automotive financing operations and dealerships), which are primarily for manufacturing, assembly, distribution, warehousing, engineering and testing. We, our subsidiaries or associated companies in which we own an equity interest, own most of these properties and/or lease a portion of these properties.
Leased properties are primarily composed of warehouses and administration, engineering and sales offices. We have manufacturing, assembly, distribution, office or warehousing operations in 29 countries, including equity interests in associated companies, which perform manufacturing, assembly or distribution operations.
Leased properties are primarily composed of warehouses and administration, engineering and sales offices. We have manufacturing, assembly, distribution, office or warehousing operations in 32 countries, including equity interests in associated companies, which perform manufacturing, assembly or distribution operations.
Removed
The major facilities outside the U.S. are located in Brazil, Canada, China and Mexico. * * * * * * *
Added
The major facilities outside the U.S., which are principally vehicle manufacturing and assembly operations, are located in Brazil, Canada, China, Mexico and South Korea. 24 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES These facilities are used to support our automotive segments and are suitable and adequate for the conduct of our business.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changePursuant to the SEC regulations, the Company will use a threshold of $1 million for purposes of determining whether disclosure of any such proceedings is required. The discussion under Note 16 to our consolidated financial statements is incorporated by reference into this Part I, Item 3. * * * * * * *
Biggest changeThe discussion under Note 16 to our consolidated financial statements is incorporated by reference into this Part I, Item 3. * * * * * * *
Added
Pursuant to the SEC regulations, the Company will use a threshold of $1 million for purposes of determining whether disclosure of any such proceedings is required. In February 2023, GM self-disclosed potential violations of the Toxic Substances Control Act's (TSCA) requirements applicable to the import of new chemical substances at our Ultium Cells LLC joint venture to the EPA.
Added
In November 2023, these potential violations were settled via consent agreement with the EPA, the terms of which include, among other items, payment of civil penalties currently estimated at approximately $5.1 million, which could grow depending upon import activity prior to receipt of a TSCA 5(e) order. These penalties are assessed jointly and severally to GM and Ultium Cells LLC.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

6 edited+4 added−2 removed1 unchanged
Biggest changeThe following table summarizes stock performance graph data points in dollars: Years ended December 31, 2017 2018 2019 2020 2021 2022 General Motors Company $ 100 $ 85 $ 97 $ 113 $ 159 $ 91 S&P 500 Stock Index $ 100 $ 96 $ 126 $ 149 $ 192 $ 157 Dow Jones Automobile & Parts Titans 30 Index $ 100 $ 79 $ 89 $ 135 $ 169 $ 115 24 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES Purchases of Equity Securities The following table summarizes our purchases of common stock in the three months ended December 31, 2022: Total Number of Shares Purchased(a)(b) Weighted Average Price Paid per Share(c) Total Number of Shares Purchased Under Announced Programs(b) Approximate Dollar Value of Shares That May Yet be Purchased Under Announced Programs October 1, 2022 through October 31, 2022 313,425 $ 32.09 — $3.5 billion November 1, 2022 through November 30, 2022 8,540,718 $ 39.71 8,540,718 $3.2 billion December 1, 2022 through December 31, 2022 17,604,218 $ 37.57 17,591,600 $2.5 billion Total 26,458,361 $ 38.20 26,132,318 __________ (a) Shares purchased include shares delivered by employees or directors to us for the payment of taxes resulting from issuance of common stock upon the vesting of Restricted Stock Units (RSUs) and Performance Stock Units (PSUs) relating to compensation plans.
Biggest changeThe following table summarizes stock performance graph data points in dollars: Years Ended December 31, 2018 2019 2020 2021 2022 2023 General Motors Company $ 100 $ 114 $ 132 $ 186 $ 107 $ 116 S&P 500 Stock Index $ 100 $ 131 $ 156 $ 200 $ 164 $ 207 Dow Jones Automobile & Parts Titans 30 Index $ 100 $ 114 $ 172 $ 215 $ 146 $ 194 26 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES Purchases of Equity Securities The following table summarizes our purchases of common stock in the three months ended December 31, 2023: Total Number of Shares Purchased(a)(b) Weighted-Average Price Paid per Share(c) Total Number of Shares Purchased Under Announced Programs(b) Approximate Dollar Value of Shares That May Yet be Purchased Under Announced Programs(b) October 1, 2023 through October 31, 2023 25,399 $ 32.32 — $1.4 billion November 1, 2023 through November 30, 2023 — $ — — $11.4 billion December 1, 2023 through December 31, 2023 215,202,490 $ 31.60 215,189,872 $1.4 billion Total 215,227,889 $ 31.60 215,189,872 __________ (a) Shares purchased include shares delivered by employees or directors to us for the payment of taxes resulting from issuance of common stock upon the vesting of Restricted Stock Units (RSUs) relating to compensation plans.
(b) In January 2017, we announced that our Board of Directors had authorized the purchase of up to $5.0 billion of our common stock with no expiration date. In August 2022, the Board of Directors increased the capacity to $5.0 billion from the $3.3 billion that remained as of June 30, 2022, with no expiration date.
(b) In January 2017, we announced that our Board of Directors had authorized the purchase of up to $5.0 billion of our common stock with no expiration date. In August 2022, our Board of Directors increased the capacity to $5.0 billion from the $3.3 billion that remained as of June 30, 2022, with no expiration date.
In June 2020, our shareholders approved the 2020 Long-Term Incentive Plan (LTIP), which authorizes awards of stock options, stock appreciation rights, RSUs, PSUs or other stock-based awards to selected employees, consultants, advisors and non-employee Directors of the Company. Refer to Note 22 to our consolidated financial statements for additional details on employee stock incentive plans.
In June 2020, our shareholders approved the 2020 Long-Term Incentive Plan (LTIP), which authorizes awards of stock options, stock appreciation rights, RSUs, Performance Stock Units (PSUs) or other stock-based awards to selected employees, consultants, advisors and non-employee Directors of the Company. Refer to Note 22 to our consolidated financial statements for additional details on employee stock incentive plans.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market Information Shares of our common stock are publicly traded on the New York Stock Exchange under the symbol "GM".
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market Information Shares of our common stock are publicly traded on the New York Stock Exchange under the symbol "GM". Holders At January 16, 2024, we had 1.2 billion issued and outstanding shares of common stock held by 462 holders of record.
However, the declaration of any dividend on our common stock is a matter to be acted upon by our Board of Directors in its sole discretion and will depend on various factors, including our financial condition, operating results, available cash, and current and anticipated cash needs, as described further in the "Liquidity and Capital Resources" section of the MD&A.
However, the declaration of any dividend on our common stock is a matter to be acted upon by our Board of Directors in its sole discretion and will depend on various factors, including our financial condition, operating results, available cash, and current and anticipated cash needs, as described further in the "Liquidity and Capital Resources" section of the MD&A. 25 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES Stock Performance Graph The following graph compares the performance of our common stock to the Standard & Poor's (S&P) 500 Stock Index and the Dow Jones Automobile & Parts Titans 30 Index for the last five years.
We anticipate that we will continue to declare and pay dividends on our common stock quarterly.
Dividends In September 2022, our Board of Directors reinstated a quarterly dividend of $0.09 per share of our common stock and in December 2023, increased the quarterly dividend to $0.12 per share of our common stock beginning in 2024. We anticipate that we will continue to declare and pay dividends on our common stock quarterly.
Removed
Holders At January 17, 2023, we had 1.4 billion issued and outstanding shares of common stock held by 472 holders of record. 23 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES Dividends In September 2022, our Board of Directors reinstated a quarterly dividend of $0.09 per share of our common stock.
Added
It assumes $100 was invested o n December 31, 2018, with dividends being reinvested.
Removed
Stock Performance Graph The following graph compares the performance of our common stock to the Standard & Poor's 500 Stock Index and the Dow Jones Automobile & Parts Titans 30 Index for the last five years. It assumes $100 was invested o n December 31, 2017, with dividends being reinvested.
Added
In November 2023, the Board of Directors increased the capacity under the share repurchase program by $10.0 billion to an aggregate of $11.4 billion and approved an accelerated share repurchase (ASR) program to repurchase an aggregate amount of $10.0 billion of our common stock.
Added
On December 1, 2023, pursuant to the agreements entered into in connection with the ASR (collectively, the ASR Agreements), we advanced the aggregate amount of $10.0 billion and received approximately 215 million shares of our common stock with a value of $6.8 billion, which were immediately retired.
Added
Final settlement of the transactions contemplated by the ASR Agreements is expected to occur no later than the three months ending December 31, 2024. Refer to Note 20 to our consolidated financial statements for additional details on the ASR program.

Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

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Biggest changeFinancial Statements and Supplementary Data 53 Consolidated Income Statements 53 Consolidated Statements of Comprehensive Income 53 Consolidated Balance Sheets 54 Consolidated Statements of Cash Flows 55 Consolidated Statements of Equity 56 Notes to Consolidated Financial Statements 57 Note 1. Nature of Operations and Basis of Presentation 57 Note 2. Significant Accounting Policies 57 Note 3. Revenue 64 Note 4.
Biggest changeFinancial Statements and Supplementary Data 56 Consolidated Income Statements 56 Consolidated Statements of Comprehensive Income 56 Consolidated Balance Sheets 57 Consolidated Statements of Cash Flows 58 Consolidated Statements of Equity 59 Notes to Consolidated Financial Statements 60 Note 1. Nature of Operations and Basis of Presentation 60 Note 2. Significant Accounting Policies 60 Note 3. Revenue 67 Note 4.
Item 6. [Reserved] 25 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 25 Item 7A. Quantitative and Qualitative Disclosures About Market Risk 46 Item 8.
Item 6. [Reserved] 27 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 27 Item 7A. Quantitative and Qualitative Disclosures About Market Risk 49 Item 8.
Marketable and Other Securities 65 Note 5. GM Financial Receivables and Transactions 66 Note 6. Inventories 69 Note 7. Operating Leases 69 Note 8. Equity in Net Assets of Nonconsolidated Affiliates 70 Note 9. Property 72 Note 10. Goodwill and Intangible Assets 72 Note 11. Variable Interest Entities 73 Note 12. Accrued and Other Liabilities 74 Note 13.
Marketable and Other Securities 68 Note 5. GM Financial Receivables and Transactions 69 Note 6. Inventories 72 Note 7. Operating Leases 72 Note 8. Equity in Net Assets of Nonconsolidated Affiliates 73 Note 9. Property 75 Note 10. Goodwill and Intangible Assets 75 Note 11. Variable Interest Entities 76 Note 12. Accrued and Other Liabilities 77 Note 13.
Debt 75 Note 14. Derivative Financial Instruments 77 Note 15. Pensions and Other Postretirement Benefits 78 Note 16. Commitments and Contingencies 84 Note 17. Income Taxes 87 Note 18. Restructuring and Other Initiatives 90 Note 19. Interest Income and Other Non-Operating Income 91 Note 20. Stockholders’ Equity and Noncontrolling Interests 91 Note 21. Earnings Per Share 93 Note 22.
Debt 78 Note 14. Derivative Financial Instruments 80 Note 15. Pensions and Other Postretirement Benefits 81 Note 16. Commitments and Contingencies 86 Note 17. Income Taxes 90 Note 18. Restructuring and Other Initiatives 92 Note 19. Interest Income and Other Non-Operating Income 93 Note 20. Stockholders’ Equity and Noncontrolling Interests 93 Note 21. Earnings Per Share 96 Note 22.
Stock Incentive Plans 93 Note 23. Segment Reporting 95 Note 24. Supplemental Information for the Consolidated Statements of Cash Flows 98
Stock Incentive Plans 96 Note 23. Segment Reporting 97 Note 24. Supplemental Information for the Consolidated Statements of Cash Flows 100 Page

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

113 edited+41 added−56 removed69 unchanged
Biggest changeTotal Net Sales and Revenue Years Ended December 31, Favorable/ (Unfavorable) Variance Due To 2022 2021 % Volume Mix Price Other (Dollars in billions) GMNA $ 128,378 $ 101,308 $ 27,070 26.7 % $ 24.9 $ (5.3) $ 7.1 $ 0.3 GMI 15,420 12,172 3,248 26.7 % $ 2.0 $ 0.1 $ 1.4 $ (0.3) Corporate 177 104 73 70.2 % $ — $ 0.1 Automotive 143,974 113,584 30,390 26.8 % $ 26.9 $ (5.1) $ 8.5 $ 0.1 Cruise 102 106 (4) (3.8) % $ — GM Financial 12,766 13,419 (653) (4.9) % $ (0.7) Eliminations/reclassifications (107) (105) (2) (1.9) % $ — $ — Total net sales and revenue $ 156,735 $ 127,004 $ 29,731 23.4 % $ 26.9 $ (5.1) $ 8.5 $ (0.6) Refer to the regional sections of this MD&A for additional information on volume, mix and price.
Biggest changeTotal Net Sales and Revenue Years Ended December 31, Favorable/ (Unfavorable) Variance Due To 2023 2022 % Volume Mix Price Other (Dollars in billions) GMNA $ 141,445 $ 128,378 $ 13,067 10.2 % $ 8.5 $ 0.7 $ 3.2 $ 0.7 GMI 15,949 15,420 529 3.4 % $ (0.6) $ 0.4 $ 1.2 $ (0.4) Corporate 273 177 96 54.2 % $ — $ 0.1 Automotive 157,667 143,974 13,693 9.5 % $ 7.8 $ 1.1 $ 4.3 $ 0.4 Cruise 102 102 — — % $ — $ — GM Financial 14,225 12,766 1,459 11.4 % $ 1.5 Eliminations/reclassifications (151) (107) (44) (41.1) % $ — $ (0.1) Total net sales and revenue $ 171,842 $ 156,735 $ 15,108 9.6 % $ 7.8 $ 1.2 $ 4.3 $ 1.8 Refer to the regional sections of this MD&A for additional information on Volume, Mix, Price and Other. 30 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES Automotive and Other Cost of Sales Years Ended December 31, Favorable/ (Unfavorable) Variance Due To 2023 2022 % Volume Mix Cost Other (Dollars in billions) GMNA $ 123,577 $ 109,651 $ (13,926) (12.7) % $ (6.1) $ (1.6) $ (6.2) $ — GMI 14,164 14,166 2 — % $ 0.5 $ (0.3) $ (0.3) $ 0.1 Corporate 513 500 (13) (2.6) % $ — $ (0.1) $ 0.1 Cruise 3,088 2,576 (512) (19.9) % $ — $ (0.5) Eliminations (12) (2) 10 n.m. $ — $ — Total automotive and other cost of sales $ 141,330 $ 126,892 $ (14,438) (11.4) % $ (5.6) $ (2.0) $ (7.0) $ 0.2 __________ n.m. = not meaningful The most significant element of our Automotive and other cost of sales is material cost, which makes up approximately two-thirds of the total amount.
Non-GAAP Measures Our non-GAAP measures include: earnings before interest and taxes (EBIT)-adjusted, presented net of noncontrolling interests; earnings before income taxes (EBT)-adjusted for our GM Financial segment; earnings per share (EPS)-diluted-adjusted; effective tax rate-adjusted (ETR-adjusted); return on invested capital-adjusted (ROIC-adjusted) and adjusted automotive free cash flow.
Our non-GAAP measures include: earnings before interest and taxes (EBIT)-adjusted, presented net of noncontrolling interests; earnings before income taxes (EBT)-adjusted for our GM Financial segment; earnings per share (EPS)-diluted-adjusted; effective tax rate-adjusted (ETR-adjusted); return on invested capital-adjusted (ROIC-adjusted) and adjusted automotive free cash flow.
However, since the customer is not obligated to purchase the vehicle at the end of the contract, GM Financial is exposed to a risk of loss to the extent the customer returns the vehicle prior to or at the end of the lease term and the proceeds GM Financial receives on the disposition of the vehicle are lower than the residual value estimated at lease inception.
However, since the customer is not obligated to purchase the vehicle at the end of the contract, GM Financial is exposed to a risk of loss to the extent the customer returns the vehicle prior to or at the end of the lease term and the proceeds GM Financial receives on the disposition of the vehicle are lower than the residual value estimated at the inception of the lease.
GAAP to EBIT-adjusted within this section of the MD&A for adjustment details. Net income attributable to noncontrolling interests for these adjustments is included in the years ended December 31, 2022 and 2021. The tax effect of each adjustment is determined based on the tax laws and valuation allowance status of the jurisdiction to which the adjustment relates.
GAAP to EBIT-adjusted within this section of the MD&A for adjustment details. Net income attributable to noncontrolling interests for these adjustments is included in the years ended December 31, 2023, 2022 and 2021. The tax effect of each adjustment is determined based on the tax laws and valuation allowance status of the jurisdiction to which the adjustment relates.
(c) In the year ended December 31, 2022, the adjustment consists of tax benefit related to the release of a valuation allowance against deferred tax assets considered realizable as a result of Cruise tax reconsolidation.
In the year ended December 31, 2022, the adjustment consists of tax benefit related to the release of a valuation allowance against deferred tax assets considered realizable as a result of Cruise tax reconsolidation.
Refer to the "Forward-Looking Statements" section of this MD&A and Part I, Item 1A. Risk Factors for a discussion of these risks and uncertainties. The discussion of our financial condition and results of operations for the year ended December 31, 2020 included in Item 7.
Refer to the "Forward-Looking Statements" section of this MD&A and Part I, Item 1A. Risk Factors for a discussion of these risks and uncertainties. The discussion of our financial condition and results of operations for the year ended December 31, 2021 included in Item 7.
The Society of Actuaries (SOA) issued mortality improvement tables in the three months ended December 31, 2022. We reviewed our recent mortality experience and we determined our current mortality assumptions are appropriate to measure our U.S. pension and OPEB plans obligations as of December 31, 2022.
The Society of Actuaries (SOA) issued mortality improvement tables in the three months ended December 31, 2023. We reviewed our recent mortality experience and we determined our current mortality assumptions are appropriate to measure our U.S. pension and OPEB plans obligations as of December 31, 2023.
Refer to the “Liquidity and Capital Resources” section of this MD&A for additional information. 26 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES The following table reconciles Net income attributable to stockholders under U.S.
Refer to the “Liquidity and Capital Resources” section of this MD&A for additional information. 45 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES The following table reconciles Net income attributable to stockholders under U.S.
We define ROIC-adjusted as EBIT-adjusted for the trailing four quarters divided by ROIC-adjusted average net assets, which is considered to be the average equity balances adjusted for average automotive debt and interest liabilities, exclusive of finance leases; average automotive net pension and other postretirement benefits (OPEB) liabilities; and average automotive net income tax assets during the same period.
We define ROIC-adjusted as EBIT-adjusted for the trailing four quarters divided by ROIC-adjusted average net assets, which is considered to be the average equity balances adjusted for average automotive debt and interest liabilities, exclusive of finance leases; average automotive net pension and OPEB liabilities; and average automotive net income tax assets during the same period.
Our total vehicle sales in the U.S., our largest market in North America, were 2.3 million units for a market share of 16.0% in the year ended December 31, 2022, representing an increase of 1.6 percentage points compared to the corresponding period in 2021.
Our total vehicle sales in the U.S., our largest market in North America, were 2.6 million units for a market share of 16.2% in the year ended December 31, 2023, representing an increase of 0.3 percentage points compared to the corresponding period in 2022.
If a decrease in residual values is concentrated among specific asset groups, the decrease could result in an immediate impairment charge. GM Financial reviewed the leased vehicle portfolio for indicators of impairment and determined that no impairment indicators were present at December 31, 2022 and 2021.
If a decrease in residual values is concentrated among specific asset groups, the decrease could result in an immediate impairment charge. GM Financial reviewed the leased vehicle portfolio for indicators of impairment and determined that no impairment indicators were present at December 31, 2023 or 2022.
These factors, which may be revised or supplemented in subsequent reports we file with the SEC, include, among others, the following: (1) our ability to deliver new products, services, technologies and customer experiences in response to increased competition and changing consumer preferences in the automotive industry; (2) our ability to timely fund and introduce new and improved vehicle models, including electric vehicles, that are able to attract a sufficient number of consumers; (3) our ability to profitably deliver a broad portfolio of electric vehicles that will help drive consumer adoption; (4) the success of our current line of full-size SUVs and full-size pickup trucks; (5) our highly competitive industry, which has been historically characterized by excess manufacturing capacity and the use of incentives, and the introduction of new and improved vehicle models by our competitors; (6) the unique technological, operational, regulatory and competitive risks related to the timing and commercialization of autonomous vehicles; (7) risks associated with climate change, including increased regulation of GHG emissions, our transition to electric vehicles and the potential increased impacts of severe weather events; (8) global automobile market sales volume, which can be volatile; (9) inflationary pressures and persistently high prices and uncertain availability of raw materials and commodities used by us and our suppliers, and instability in logistics and related costs; (10) our business in China, which is subject to unique operational, competitive, regulatory and economic risks; (11) the success of our ongoing strategic business relationships and of our joint ventures, which we cannot operate solely for our benefit and over which we may have limited control; (12) the international scale and footprint of our operations, which exposes us to a variety of unique political, economic, competitive and regulatory risks, including the risk of changes in government leadership 45 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES and laws (including labor, trade, tax and other laws), political uncertainty or instability and economic tensions between governments and changes in international trade policies, new barriers to entry and changes to or withdrawals from free trade agreements, changes in foreign exchange rates and interest rates, economic downturns in the countries in which we operate, differing local product preferences and product requirements, changes to and compliance with U.S. and foreign countries' export controls and economic sanctions, differing labor regulations, requirements and union relationships, differing dealer and franchise regulations and relationships, difficulties in obtaining financing in foreign countries, and public health crises, including the occurrence of a contagious disease or illness, such as the COVID-19 pandemic; (13) any significant disruption, including any work stoppages, at any of our manufacturing facilities; (14) the ability of our suppliers to deliver parts, systems and components without disruption and at such times to allow us to meet production schedules; (15) pandemics, epidemics, disease outbreaks and other public health crises, including the COVID-19 pandemic; (16) the possibility that competitors may independently develop products and services similar to ours, or that our intellectual property rights are not sufficient to prevent competitors from developing or selling those products or services; (17) our ability to manage risks related to security breaches and other disruptions to our information technology systems and networked products, including connected vehicles and in-vehicle systems; (18) our ability to comply with increasingly complex, restrictive and punitive regulations relating to our enterprise data practices, including the collection, use, sharing and security of the Personal Identifiable Information of our customers, employees, or suppliers; (19) our ability to comply with extensive laws, regulations and policies applicable to our operations and products, including those relating to fuel economy, emissions and autonomous vehicles; (20) costs and risks associated with litigation and government investigations; (21) the costs and effect on our reputation of product safety recalls and alleged defects in products and services; (22) any additional tax expense or exposure or failure to fully realize available tax incentives; (23) our continued ability to develop captive financing capability through GM Financial; and (24) any significant increase in our pension funding requirements.
These factors, which may be revised or supplemented in subsequent reports we file with the SEC, include, among others, the following: (1) our ability to deliver new products, services, technologies and customer experiences in response to increased competition and changing consumer needs and preferences; (2) our ability to timely fund and introduce new and improved vehicle models, including electric vehicles, that are able to attract a sufficient number of consumers; (3) our ability to profitably deliver a strategic portfolio of electric vehicles that will help drive consumer adoption; (4) the success of our current line of ICE vehicles, particularly our full-size SUVs and full-size pickup trucks; (5) our highly competitive industry, which has been historically characterized by excess manufacturing capacity and the use of incentives, and the introduction of new and improved vehicle models by our competitors; (6) the unique technological, operational, regulatory and competitive risks related to the timing and commercialization of AVs, including the various regulatory approvals and permits required for operating driverless AVs in multiple markets; (7) risks associated with climate change, including increased regulation of GHG emissions, our transition to electric vehicles and the potential increased impacts of severe weather events; (8) global automobile market sales volume, which can be volatile; (9) inflationary pressures and persistently high prices and uncertain availability of raw materials and commodities used by us and our suppliers, and instability in logistics and related costs; (10) our business in China, which is subject to unique operational, competitive, regulatory and economic risks; (11) the success of our ongoing strategic business relationships, particularly with respect to facilitating access to raw materials necessary for the production of EVs, and of our joint ventures, which we cannot operate solely for our benefit and over which we may have limited control; (12) the international scale and footprint of our operations, which exposes us to a variety of unique political, economic, competitive and regulatory risks, including the risk of changes in government leadership and laws (including labor, trade, tax and other laws), political uncertainty or instability and economic tensions between governments and changes in international trade policies, new barriers to entry and changes to or withdrawals from free trade agreements, changes in foreign exchange rates and interest rates, economic downturns in the countries in which we operate, differing local product preferences and product requirements, changes to and compliance with U.S. and foreign countries' export controls and economic sanctions, differing labor regulations, requirements and union relationships, differing dealer and franchise regulations and relationships, difficulties in obtaining financing in foreign countries, and public health crises, including the occurrence of a contagious disease or illness; (13) any significant disruption, including any work stoppages, at any of our manufacturing facilities; (14) the ability of our suppliers to deliver parts, systems and components without disruption and at such times to allow us to meet production schedules; (15) pandemics, epidemics, disease outbreaks and other public health crises; (16) the 48 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES possibility that competitors may independently develop products and services similar to ours, or that our intellectual property rights are not sufficient to prevent competitors from developing or selling those products or services; (17) our ability to manage risks related to security breaches, cyberattacks and other disruptions to our information technology systems and networked products, including connected vehicles and in-vehicle systems; (18) our ability to comply with increasingly complex, restrictive and punitive regulations relating to our enterprise data practices, including the collection, use, sharing and security of the personal information of our customers, employees, or suppliers; (19) our ability to comply with extensive laws, regulations and policies applicable to our operations and products, including those relating to fuel economy, emissions and autonomous vehicles; (20) costs and risks associated with litigation and government investigations; (21) the costs and effect on our reputation of product safety recalls and alleged defects in products and services; (22) any additional tax expense or exposure or failure to fully realize available tax incentives; (23) our continued ability to develop captive financing capability through GM Financial; and (24) any significant increase in our pension funding requirements.
Over 90% of our cash and marketable debt securities were managed within North America and at our regional treasury centers at December 31, 2022. We have used, and will continue to use, other methods including intercompany loans to utilize these funds across our global operations as needed. Our cash equivalents and marketable debt securities balances are primarily denominated in U.S.
Over 85% of our cash and marketable debt securities were managed within North America and at our regional treasury centers at December 31, 2023. We have used, and will continue to use, other methods including intercompany loans to utilize these funds across our global operations as needed. Our cash equivalents and marketable debt securities balances are primarily denominated in U.S.
(d) These adjustments were excluded because they relate to certain royalties accrued with respect to past-year vehicle sales in 2021 and the resolution of substantially all of these matters in 2022. (e) This adjustment was excluded because it relates to a settlement with third parties relating to retrospective recoveries of indirect taxes in Brazil realized in prior periods.
(h) These adjustments were excluded because they relate to certain royalties accrued with respect to past-year vehicle sales in 2021 and the resolution of substantially all of these matters in 2022. (i) This adjustment was excluded because it relates to a settlement with third parties relating to retrospective recoveries of indirect taxes in Brazil realized in prior periods.
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 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 material future uses of cash, which may vary from time to time based on market conditions and other factors, are 34 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES focused on the three objectives of our capital allocation program: (1) grow our business at an average target 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 total vehicle sales in China were 2.3 million units resulting in a market share of 9.8% in the year ended December 31, 2022, representing a decrease of 1.4 percentage points compared to the corresponding period in 2021.
Our total vehicle sales in China were 2.1 million units resulting in a market share of 8.4% in the year ended December 31, 2023, representing a decrease of 1.4 percentage points compared to the corresponding period in 2022.
The following table summarizes the calculation of ROE (dollars in billions): Years Ended December 31, 2022 2021 2020 Net income attributable to stockholders $ 9.9 $ 10.0 $ 6.4 Average equity(a) $ 66.6 $ 56.5 $ 43.3 ROE 14.9 % 17.7 % 14.9 % ________ (a) Includes equity of noncontrolling interests where the corresponding earnings (loss) are included in Net income attributable to stockholders. 28 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES The following table summarizes the calculation of ROIC-adjusted (dollars in billions): Years Ended December 31, 2022 2021 2020 EBIT-adjusted(a) $ 14.5 $ 14.3 $ 9.7 Average equity(b) $ 66.6 $ 56.5 $ 43.3 Add: Average automotive debt and interest liabilities (excluding finance leases) 17.6 17.1 27.8 Add: Average automotive net pension & OPEB liability 9.4 15.8 17.6 Less: Average automotive net income tax asset (21.2) (22.2) (24.0) ROIC-adjusted average net assets $ 72.3 $ 67.2 $ 64.7 ROIC-adjusted 20.0 % 21.3 % 15.0 % ________ (a) Refer to the reconciliation of Net income attributable to stockholders under U.S.
The following table summarizes the calculation of ROE (dollars in billions): Years Ended December 31, 2023 2022 2021 Net income attributable to stockholders $ 10.1 $ 9.9 $ 10.0 Average equity(a) $ 72.0 $ 66.6 $ 56.5 ROE 14.1 % 14.9 % 17.7 % __________ (a) Includes equity of noncontrolling interests where the corresponding earnings (loss) are included in Net income attributable to stockholders. 47 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES The following table summarizes the calculation of ROIC-adjusted (dollars in billions): Years Ended December 31, 2023 2022 2021 EBIT-adjusted(a) $ 12.4 $ 14.5 $ 14.3 Average equity(b) $ 72.0 $ 66.6 $ 56.5 Add: Average automotive debt and interest liabilities (excluding finance leases) 16.2 17.6 17.1 Add: Average automotive net pension & OPEB liability 8.1 9.4 15.8 Less: Average automotive net income tax asset (21.1) (21.2) (22.2) ROIC-adjusted average net assets $ 75.2 $ 72.3 $ 67.2 ROIC-adjusted 16.4 % 20.0 % 21.3 % __________ (a) Refer to the reconciliation of Net income attributable to stockholders under U.S.
Realization of the residual values is dependent on GM Financial's future ability to market the vehicles under prevailing market conditions. At December 31, 2022, the estimated residual value of GM Financial's leased vehicles was $24.7 billion.
Realization of the residual values is dependent on GM Financial's future ability to market the vehicles under prevailing market conditions. At December 31, 2023, the estimated residual value of GM Financial's leased vehicles was $22.7 billion.
Alternatively, if used vehicle prices outperform GM Financial's latest estimates, it may record gains on sales of off-lease vehicles and/or decreased depreciation expense. 43 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES The following table illustrates the effect of a 1% relative change in the estimated residual values at December 31, 2022, which could increase or decrease depreciation expense over the remaining term of the leased vehicle portfolio, holding all other assumptions constant (dollars in millions): Impact to Depreciation Expense 2023 $ 181 2024 52 2025 13 2026 and thereafter 1 Total $ 247 Changes to residual values are rarely simultaneous across all maturities and segments, and also may impact return rates.
Alternatively, if used vehicle prices outperform GM Financial's latest estimates, it may record gains on sales of off-lease vehicles and/or decreased depreciation expense. 42 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES The following table illustrates the effect of a 1% relative change in the estimated residual values at December 31, 2023, which could increase or decrease depreciation expense over the remaining term of the leased vehicle portfolio, holding all other assumptions constant (dollars in millions): Impact to Depreciation Expense 2024 $ 158 2025 53 2026 15 2027 and thereafter 1 Total $ 227 Changes to residual values are rarely simultaneous across all maturities and segments, and also may impact return rates.
Subsequent adjustments to incentive estimates are possible as facts and circumstances change over time, which could affect the revenue previously recognized in Automotive net sales and revenue. 42 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES GM Financial Allowance for Loan Losses The GM Financial retail finance receivables portfolio consists of smaller-balance, homogeneous loans that are carried at amortized cost, net of allowance for loan losses.
Subsequent adjustments to incentive estimates are possible as facts and circumstances change over time, which could affect the revenue previously recognized in Automotive net sales and revenue. GM Financial Allowance for Loan Losses The GM Financial retail finance receivables portfolio consists of smaller-balance, homogeneous loans that are carried at amortized cost, net of allowance for loan losses.
At December 31, 2022, the weightings applied to the economic forecast scenarios considered resulted in an allowance for loan losses on the retail finance receivables portfolio of $2.1 billion. If the forecast economic conditions were based entirely on the weakest scenario considered, the allowance for loan losses would increase by $74 million.
At December 31, 2023, the weightings applied to the economic forecast scenarios considered resulted in an allowance for loan losses on the retail finance receivables portfolio of $2.3 billion. If the forecast economic conditions were based entirely on the weakest scenario considered, the allowance for loan losses would increase by $0.1 billion.
Variable profit is defined as 32 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES revenue less material cost, freight, the variable component of manufacturing expense and warranty and recall-related costs. Vehicles with higher selling prices generally have higher variable profit. Refer to the regional sections of this MD&A for additional information on volume and mix.
Variable profit is defined as revenue less material cost, freight, the variable component of manufacturing expense and warranty and recall-related costs. Vehicles with higher selling prices generally have higher variable profit. Refer to the regional sections of this MD&A for additional information on Volume and Mix.
In the coming years, we plan to leverage our global architectures to increase the number of product offerings under the Buick, Chevrolet and Cadillac brands in China and continue to grow our business under the local Baojun and Wuling brands while we are accelerating the development and rollout of EVs across our brands in China in response to our commitment to an all-electric future.
In the coming years, we plan to leverage our global architectures to introduce a number of new product offerings under the Buick, Chevrolet and Cadillac brands in China and continue to grow our business under the local Baojun and Wuling brands while we are accelerating the development and rollout of EVs across our brands in China as part of our commitment to an all-electric future.
GAAP measure may include significant adjustments that are difficult to predict. ROIC-adjusted ROIC-adjusted is used by management and can be used by investors to review our investment and capital allocation decisions.
GAAP measure may include significant adjustments that are difficult to predict. ROIC-adjusted (Most comparable GAAP measure: Return on equity) ROIC-adjusted is used by management and can be used by investors to review our investment and capital allocation decisions.
Liquidity and Capital Resources We believe our current levels of cash, cash equivalents, marketable debt securities, available borrowing capacity under our revolving credit facilities and other liquidity actions currently available to us are sufficient to meet our liquidity requirements.
Liquidity and Capital Resources We believe our current levels of cash, cash equivalents, marketable debt securities, available borrowing capacity under our credit facilities and other liquidity actions currently available to us are sufficient to meet our liquidity requirements in the short- and long-term.
The following table summarizes the changes in Cruise's available liquidity (dollars in billions): Year Ended December 31, 2022 Operating cash flow(a) $ (1.8) GM investment in Cruise 2.4 Employee Incentive Plan (0.6) Other non-operating (0.1) Total change in Cruise available liquidity $ (0.2) __________ (a) Includes $0.4 billion cash outflows related to tendered Cruise Class B Common Shares classified as liabilities.
The following table summarizes the changes in Cruise's available liquidity (dollars in billions): Year Ended December 31, 2023 Operating cash flow(a) $ (1.9) GM investment in Cruise 0.5 Other non-operating (0.1) Total change in Cruise available liquidity $ (1.6) __________ (a) Includes $0.2 billion cash outflows related to tendered Cruise Class B Common Shares classified as liabilities.
Adjusted automotive free cash flow Adjusted automotive free cash flow is used by management and can be used by investors to review the liquidity of our automotive operations and to measure and monitor our performance against our capital allocation program and evaluate our automotive liquidity against the substantial cash requirements of our automotive operations.
Adjusted automotive free cash flow (Most comparable GAAP measure: Net automotive cash provided by operating activities) Adjusted automotive free cash flow is used by management and can be used by investors to review the liquidity of our automotive operations and to measure and monitor our performance against our capital allocation program and evaluate our automotive liquidity against the substantial cash requirements of our automotive operations.
Years Ended December 31, 2022 vs. 2021 Change 2022 2021 2020 Financing Activities Net proceeds (payments) from short-term debt $ (1.4) $ (0.5) $ (0.5) $ (0.9) Issuance of senior notes 2.3 — 4.0 2.3 Other(a) (3.3) (0.4) (1.4) (2.9) Net automotive cash provided by (used in) financing activities $ (2.5) $ (0.9) $ 2.1 $ (1.6) __________ (a) Includes $2.8 billion and $0.6 billion for dividends paid and payments to purchase common stock in the years ended December 31, 2022 and December 31, 2020, and $0.5 billion for repayments of senior unsecured notes for the years ended December 31, 2021 and 2020.
Years Ended December 31, 2023 vs. 2022 Change 2023 2022 2021 Financing Activities Net proceeds (payments) from short-term debt $ (1.5) $ (1.4) $ (0.5) $ (0.1) Issuance of senior notes — 2.3 — (2.3) Other(a) (12.1) (3.3) (0.4) (8.8) Net automotive cash provided by (used in) financing activities $ (13.6) $ (2.5) $ (0.9) $ (11.1) __________ (a) Includes $10.0 billion in advances against accelerated share repurchases in the year ended December 31, 2023, $1.1 billion and $2.5 billion for payments to purchase common stock in the years ended December 31, 2023 and 2022, $0.5 billion and $0.3 billion for dividends paid in the years ended December 31, 2023 and 2022 and $0.5 billion for repayments of senior unsecured notes for the year ended December 31, 2021.
While not as significant as industry volume and market share, another factor affecting profitability is the relative mix of vehicles sold. Trucks, crossovers and cars sold currently have a variable profit of approximately 150%, 50% and 40% of our GMNA portfolio on a weighted-average basis.
GMNA EBIT-Adjusted The most significant factors that influence profitability are industry volume and market share. While not as significant as industry volume and market share, another factor affecting profitability is the relative mix of vehicles sold. Trucks, crossovers and cars sold currently have a variable profit of approximately 170%, 40% and 50% of our GMNA portfolio on a weighted-average basis.
For EBIT-adjusted and our other non-GAAP measures, once we have made an adjustment in the current period for an item, we will also adjust the related non-GAAP measure in any future periods in which there is an impact from the item.
For EBIT-adjusted and our other non- 44 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES GAAP measures, once we have made an adjustment in the current period for an item, we will also adjust the related non-GAAP measure in any future periods in which there is an impact from the item.
GAAP to EPS-diluted-adjusted: Years Ended December 31, 2022 2021 2020 Amount Per Share Amount Per Share Amount Per Share Diluted earnings per common share $ 8,915 $ 6.13 $ 9,837 $ 6.70 $ 6,247 $ 4.33 Adjustments(a) 2,125 1.46 701 0.47 652 0.46 Tax effect on adjustments(b) (423) (0.29) (105) (0.07) (70) (0.05) Tax adjustments(c) (482) (0.33) (51) (0.03) 236 0.16 Deemed dividend adjustment(d) 909 0.63 — — — — EPS-diluted-adjusted $ 11,044 $ 7.59 $ 10,382 $ 7.07 $ 7,065 $ 4.90 ________ (a) Refer to the reconciliation of Net income attributable to stockholders under U.S.
GAAP to EPS-diluted-adjusted: Years Ended December 31, 2023 2022 2021 Amount Per Share Amount Per Share Amount Per Share Diluted earnings per common share $ 10,022 $ 7.32 $ 8,915 $ 6.13 $ 9,837 $ 6.70 Adjustments(a) 1,865 1.36 2,125 1.46 701 0.47 Tax effect on adjustments(b) (504) (0.37) (423) (0.29) (105) (0.07) Tax adjustments(c) (870) (0.64) (482) (0.33) (51) (0.03) Deemed dividend adjustment(d) — — 909 0.63 — — EPS-diluted-adjusted $ 10,513 $ 7.68 $ 11,044 $ 7.59 $ 10,382 $ 7.07 __________ (a) Refer to the reconciliation of Net income attributable to stockholders under U.S.
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 $11.0 billion to $13.0 billion per year through 2025; (2) payments for engineering and product development activities; (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) payments associated with the liquidity program for holders of equity-based incentive awards issued to employees of Cruise; (6) dividend payments on our common stock that are declared by our Board of Directors; and (7) payments to purchase shares of our common stock authorized by our Board of Directors.
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; and (6) payments to purchase shares of our common stock authorized by our Board of Directors.
Outside of China, industry sales were 23.7 million units in the year ended December 31, 2022, representing an increase of 2.5% compared to the corresponding period in 2021.
Outside of China, industry sales were 25.7 million units in the year ended December 31, 2023, representing an increase of 7.3% compared to the corresponding period in 2022.
Adjusted Automotive Free Cash Flow We measure adjusted automotive free cash flow as automotive operating cash flow from operations less capital expenditures adjusted for management actions. For the year ended December 31, 2022, net automotive cash provided by operating activities under U.S. GAAP was $19.1 billion, capital expenditures were $9.0 billion and adjustments for management actions were $0.4 billion.
Adjusted Automotive Free Cash Flow We measure adjusted automotive free cash flow as automotive operating cash flow from operations less capital expenditures adjusted for management actions. For the year ended December 31, 2023, net automotive cash provided by operating activities under U.S. GAAP was $20.8 billion, capital expenditures were $10.7 billion and adjustments for management actions were $1.5 billion.
The funded status of the U.S. pension plans improved in the year ended December 31, 2022 to $0.1 billion overfunded status from $0.3 billion underfunded status primarily due to: (1) the favorable effect of an increase in discount rates of $11.9 billion; and (2) changes in actuarial assumptions, demographic data updates and contributions of $0.3 billion; partially offset by (3) the unfavorable effect of negative actual returns on plan assets of $10.3 billion; and (4) service and interest costs of $1.5 billion. 44 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES The following table illustrates the sensitivity to a change in certain assumptions for the pension plans, holding all other assumptions constant: U.S.
The funded status of the U.S. pension plans deteriorated in the year ended December 31, 2023 to $2.2 billion underfunded status from $0.1 billion overfunded status primarily due to: (1) service and interest costs of $2.4 billion; (2) the unfavorable effect of a decrease in discount rates of $1.3 billion; and (3) the unfavorable effect of plan amendments of $0.8 billion; partially offset by (4) the favorable effect of actual returns on plan assets of $1.8 billion; and (5) contributions of $0.4 billion. 43 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES The following table illustrates the sensitivity to a change in certain assumptions for the pension plans, holding all other assumptions constant: U.S.
Management's Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2021 is incorporated by reference into this MD&A.
Management's Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2022 is incorporated by reference into this MD&A. Overview Our vision for the future is a world with zero crashes, zero emissions and zero congestion.
The unamortized pre-tax actuarial loss on our pension plans was $3.3 billion and $3.7 billion at December 31, 2022 and 2021. The year-over-year change is primarily due to an increase in discount rates partially offset by lower than expected asset returns.
The unamortized pre-tax actuarial loss on our pension plans was $5.9 billion and $3.3 billion at December 31, 2023 and 2022. The year-over-year change is primarily due to a decrease in discount rates and lower than expected asset returns.
While the studies give appropriate consideration to recent plan performance and historical returns, the assumptions are primarily long-term, prospective rates of return. In December 2022, an investment policy study was completed for the U.S. pension plans.
While the studies give appropriate consideration to recent plan performance and historical returns, the assumptions are primarily long-term, prospective rates of return. In December 2023, an investment policy study was completed for the U.S. pension plans. As a result, the weighted-average long-term rate of ROA remains unchanged at 6.3% at December 31, 2023 and 2022.
In the year ended December 31, 2022, favorable Other was due to the weakening of the Korean Won and other currencies against the U.S. Dollar, partially offset by the strengthening of the Brazilian Real and other currencies against the U.S. Dollar.
In the year ended December 31, 2023, favorable Other was due to the weakening of the Canadian dollar and other currencies against the U.S. dollar, partially offset by the strengthening of the Mexican peso and other currencies against the U.S. dollar.
The following table summarizes certain key operational and financial data for the Automotive China JVs (vehicles in thousands): Years Ended December 31, 2022 2021 2020 Wholesale vehicle sales including vehicles exported to markets outside of China 2,639 3,007 3,029 Total net sales and revenue $ 35,857 $ 42,776 $ 38,736 Net income $ 1,407 $ 2,109 $ 1,239 December 31, 2022 December 31, 2021 Cash and cash equivalents $ 8,552 $ 10,254 Debt $ 197 $ 374 Cruise Years Ended December 31, 2022 vs. 2021 Change 2022 2021 2020 Favorable/ (Unfavorable) % Total net sales and revenue(a) $ 102 $ 106 $ 103 $ (4) (3.8) % EBIT (loss)-adjusted(b) $ (1,890) $ (1,196) $ (887) $ (694) (58.0) % ________ (a) Primarily reclassified to Interest income and other non-operating income, net in our consolidated income statements in each of the years ended December 31, 2022, 2021 and 2020.
The following table summarizes certain key operational and financial data for the Automotive China JVs (vehicles in thousands): Years Ended December 31, 2023 2022 2021 Wholesale vehicle sales including vehicles exported to markets outside of China 2,334 2,639 3,007 Total net sales and revenue $ 31,435 $ 35,857 $ 42,776 Net income $ 1,122 $ 1,407 $ 2,109 December 31, 2023 December 31, 2022 Cash and cash equivalents $ 6,875 $ 8,552 Debt $ 202 $ 197 33 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES Cruise Years Ended December 31, 2023 vs. 2022 Change 2023 2022 2021 Favorable/ (Unfavorable) % Total net sales and revenue(a) $ 102 $ 102 $ 106 $ — — % EBIT (loss)-adjusted $ (2,695) $ (1,890) $ (1,196) $ (805) (42.6) % __________ (a) Primarily reclassified to Interest income and other non-operating income, net in our consolidated income statements in each of the years ended December 31, 2023, 2022 and 2021.
GAAP to ETR-adjusted: Years Ended December 31, 2022 2021 2020 Income before income taxes Income tax expense Effective tax rate Income before income taxes Income tax expense Effective tax rate Income before income taxes Income tax expense Effective tax rate Effective tax rate $ 11,597 $ 1,888 16.3 % $ 12,716 $ 2,771 21.8 % $ 8,095 $ 1,774 21.9 % Adjustments(a) 2,221 423 726 105 652 70 Tax adjustments(b) 482 51 (236) ETR-adjusted $ 13,818 $ 2,793 20.2 % $ 13,442 $ 2,927 21.8 % $ 8,747 $ 1,608 18.4 % ________ (a) Refer to the reconciliation of Net income attributable to stockholders under U.S.
GAAP to ETR-adjusted: Years Ended December 31, 2023 2022 2021 Income before income taxes Income tax expense Effective tax rate Income before income taxes Income tax expense Effective tax rate Income before income taxes Income tax expense Effective tax rate Effective tax rate $ 10,403 $ 563 5.4 % $ 11,597 $ 1,888 16.3 % $ 12,716 $ 2,771 21.8 % Adjustments(a) 1,916 504 2,221 423 726 105 Tax adjustments(b) 870 482 51 ETR-adjusted $ 12,319 $ 1,937 15.7 % $ 13,818 $ 2,793 20.2 % $ 13,442 $ 2,927 21.8 % __________ (a) Refer to the reconciliation of Net income attributable to stockholders under U.S.
Further, our Board of Directors uses certain of these and other measures as key metrics to determine management performance under our performance-based compensation plans.
Further, our Board of Directors uses certain of these and other measures as key metrics to determine management performance under our performance-based compensation plans. For these reasons, we believe these non-GAAP measures are useful for our investors.
At December 31, 2022, secured, committed unsecured and uncommitted unsecured credit facilities totaled $26.2 billion, $0.5 billion and $1.4 billion with advances outstanding of $3.9 billion, an insignificant amount and $1.4 billion.
At December 31, 2023, secured, committed unsecured and uncommitted unsecured credit facilities totaled $27.0 billion, $0.8 billion and $2.0 billion with advances outstanding of $5.0 billion, an insignificant amount and $2.0 billion.
In the year ended December 31, 2022, Net cash used in investing activities increased primarily due to: (1) an increase in purchases and originations of finance receivables of $6.1 billion; (2) a decrease in collections and recoveries on finance receivables of $0.7 billion; and (3) a decrease in the proceeds from termination of leased vehicles of $0.2 billion; partially offset by (4) a decrease in purchases of leased vehicles of $2.7 billion.
In the year ended December 31, 2023, Net cash used in investing activities increased primarily due to: (1) an increase in purchases of leased vehicles of $1.7 billion; (2) a decrease in the proceeds from termination of leased vehicles of $1.2 billion partially offset by (3) an increase in collections and recoveries on finance receivables of $1.3 billion; (4) and a decrease in purchases and originations of finance receivables of $0.5 billion. 40 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES In the year ended December 31, 2023, Net cash provided by financing activities increased primarily due to: (1) a net increase in borrowings of $6.9 billion; partially offset by (2) an increase in debt repayments of $5.1 billion; and (3) an increase in dividend payments of $0.1 billion.
Actual economic data and recovery rates that are lower than those forecasted by GM Financial could result in an increase to the allowance for loan losses.
Actual economic data and recovery rates that are lower than those forecasted by GM Financial could result in an increase to the allowance for loan losses. The GM Financial commercial finance receivables portfolio consists of financing products for dealers and other businesses.
The ongoing supply chain disruptions, macro-economic impact of COVID-19 and geopolitical tensions continue to place pressure on China's automotive industry and our vehicle sales in China. Our Automotive China JVs 30 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES generated equity income of $0.7 billion in the year ended December 31, 2022.
The ongoing supply chain disruptions, global macro-economic conditions and geopolitical tensions continue to place pressure on China's automotive industry and our vehicle sales in China. Our Automotive China JVs generated equity income of $0.4 billion in the year ended December 31, 2023.
For these reasons, we believe these non-GAAP measures are useful for our investors. 25 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES EBIT-adjusted EBIT-adjusted is presented net of noncontrolling interests and is used by management and can be used by investors to review our consolidated operating results because it excludes automotive interest income, automotive interest expense and income taxes as well as certain additional adjustments that are not considered part of our core operations.
EBIT-adjusted (Most comparable GAAP measure: Net income attributable to stockholders) EBIT-adjusted is presented net of noncontrolling interests and is used by management and can be used by investors to review our consolidated operating results because it excludes automotive interest income, automotive interest expense and income taxes as well as certain additional adjustments that are not considered part of our core operations.
The following table summarizes the changes in our Automotive available liquidity (dollars in billions): Year Ended December 31, 2022 Operating cash flow $ 19.1 Capital expenditures (9.0) Dividends paid and payments to purchase common stock (2.8) GM investment in Cruise (2.4) Purchase of SoftBank's equity stake in Cruise (2.1) Issuance of senior unsecured notes 2.2 Net proceeds from sale of Stellantis common shares(a) 0.9 Payment of senior unsecured note (1.0) Investment in Ultium Cells Holdings LLC (0.8) Payment of GMI unsecured term debt (0.5) Other non-operating (0.9) Total change in automotive available liquidity $ 2.7 _________ (a) Excludes dividends received and tax withholding. 38 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES Automotive Cash Flow (Dollars in billions) Years Ended December 31, 2022 vs. 2021 Change 2022 2021 2020 Operating Activities Net income $ 8.5 $ 7.8 $ 5.0 $ 0.7 Depreciation, amortization and impairment charges 6.3 5.9 5.5 0.4 Pension and OPEB activities (2.0) (2.4) (1.6) 0.4 Working capital 0.5 (4.0) (1.7) 4.5 Accrued and other liabilities and income taxes 3.1 0.9 (1.4) 2.2 Other 2.7 1.5 1.7 1.2 Net automotive cash provided by (used in) operating activities $ 19.1 $ 9.7 $ 7.5 $ 9.4 In the year ended December 31, 2022, the increase in Net automotive cash provided by operating activities was primarily due to: (1) lower sales incentive payments of $4.7 billion; and (2) working capital; partially offset by (3) lower dividends received from GM Financial of $1.8 billion.
The following table summarizes the changes in our Automotive available liquidity (dollars in billions): Year Ended December 31, 2023 Operating cash flow $ 20.8 Capital expenditures (10.7) ASR program (10.0) Dividends paid and payments to purchase common stock (1.6) Payment of senior unsecured note (1.5) Investment in Ultium Cells Holdings LLC (0.7) GM investment in Cruise (0.5) Investment in Lithium Americas (0.3) Other non-operating (0.1) Increase in available credit facilities 1.4 Total change in automotive available liquidity $ (3.2) Automotive Cash Flow (Dollars in billions) Years Ended December 31, 2023 vs. 2022 Change 2023 2022 2021 Operating Activities Net income $ 10.1 $ 8.5 $ 7.8 $ 1.6 Depreciation, amortization and impairment charges 6.8 6.3 5.9 0.5 Pension and OPEB activities (1.0) (2.0) (2.4) 1.0 Working capital (0.4) 0.5 (4.0) (0.9) Accrued and other liabilities and income taxes 4.1 3.1 0.9 1.0 Other(a) 1.2 2.7 1.5 (1.5) Net automotive cash provided by (used in) operating activities(b) $ 20.8 $ 19.1 $ 9.7 $ 1.7 __________ (a) Includes $1.8 billion, $1.7 billion and $3.5 billion in dividends received from GM Financial in the years ended December 31, 2023, 2022 and 2021, partially offset by non-cash changes in other assets and liabilities.
Cruise EBIT (Loss)-Adjusted In the year ended December 31, 2022, EBIT (loss)-adjusted increased primarily due to an increase in development costs as we progress towards the commercialization of a network of on-demand rideshare and delivery AVs in the U.S. and globally.
Cruise EBIT (Loss)-Adjusted In the year ended December 31, 2023, EBIT (loss)-adjusted increased primarily due to an increase in development costs as we pursue the development and commercialization of AV technology in the U.S. and globally.
Our corresponding measure for our GM Financial segment is EBT-adjusted because interest income and interest expense are part of operating results when assessing and measuring the operational and financial performance of the segment. EPS-diluted-adjusted EPS-diluted-adjusted is used by management and can be used by investors to review our consolidated diluted EPS results on a consistent basis.
Our corresponding measure for our GM Financial segment is EBT-adjusted because interest income and interest expense are part of operating results when assessing and measuring the operational and financial performance of the segment.
Income Tax Expense Years Ended December 31, Year Ended 2022 vs. 2021 Change 2022 2021 2020 Favorable/ (Unfavorable) % Income tax expense $ 1,888 $ 2,771 $ 1,774 $ 883 31.9 % In the year ended December 31, 2022, Income tax expense decreased primarily due to Cruise valuation allowance adjustments, lower effective tax rate as a result of Cruise reconsolidation and lower pre-tax income.
Income Tax Expense Years Ended December 31, Year Ended 2023 vs. 2022 Change 2023 2022 2021 Favorable/ (Unfavorable) % Income tax expense $ 563 $ 1,888 $ 2,771 $ 1,325 70.2 % In the year ended December 31, 2023, Income tax expense decreased primarily due to jurisdictional mix of earnings, valuation allowance adjustments and lower pre-tax income.
At lease inception, an estimate is made of the expected residual value for the vehicle at the end of the lease term, which typically ranges from two to five years.
Each leased asset in the portfolio represents a vehicle that GM Financial owns and has leased to a customer. At the inception of a lease, an estimate is made of the expected residual value for the vehicle at the end of the lease term, which typically ranges from two to five years.
Plans(a) Effect on 2023 Pension Expense Effect on December 31, 2022 PBO Effect on 2023 Pension Expense Effect on December 31, 2022 PBO 25 basis point decrease in discount rate -$48 +$918 -$4 +$296 25 basis point increase in discount rate +$32 -$885 +$9 -$284 25 basis point decrease in expected rate of return on assets +$116 N/A +$25 N/A 25 basis point increase in expected rate of return on assets -$116 N/A -$25 N/A __________ (a) The sensitivity does not include the effects of the individual annual yield curve rates applied for the calculation of the service and interest cost.
Plans(a) Effect on 2024 Pension Expense Effect on December 31, 2023 PBO Effect on 2024 Pension Expense Effect on December 31, 2023 PBO 25 basis point decrease in discount rate -$58 +$914 -$5 +$312 25 basis point increase in discount rate +$53 -$872 +$6 -$299 25 basis point decrease in expected rate of ROA +$109 N/A +$25 N/A 25 basis point increase in expected rate of ROA -$109 N/A -$25 N/A __________ (a) The sensitivity does not include the effects of the individual annual yield curve rates applied for the calculation of the service and interest cost.
The following table reconciles expected Net income attributable to stockholders under U.S. GAAP to expected EBIT-adjusted (dollars in billions): Year Ending December 31, 2023 Net income attributable to stockholders $ 8.7-10.1 Income tax expense 1.6-2.2 Automotive interest expense, net 0.2 EBIT-adjusted(a) $ 10.5-12.5 ________ (a) We do not consider the potential future impact of adjustments on our expected financial results.
Refer to the "Non-GAAP Measures" section of this MD&A for additional information. 28 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES The following table reconciles expected Net income attributable to stockholders under U.S. generally accepted accounting principles (GAAP) to expected EBIT-adjusted (dollars in billions): Year Ending December 31, 2024 Net income attributable to stockholders $ 9.8-11.2 Income tax expense 2.1-2.7 Automotive interest expense, net 0.1 EBIT-adjusted(a) $ 12.0-14.0 __________ (a) We do not consider the potential future impact of adjustments on our expected financial results.
A change in any of these factors affecting the estimate could have a significant effect on recorded sales incentives. A 10% increase in the cost of incentives would increase the sales incentive liability by an insignificant amount.
A change in any of these factors affecting the estimate could have a significant effect on recorded sales incentives. A 10% increase in the cost of incentives would increase the sales 41 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES incentive liability by approximately $0.2 billion.
(d) This adjustment consists of a deemed dividend related to the redemption of Cruise preferred shares from SoftBank Vision Fund (AIV M2) L.P. (SoftBank) in the year ended December 31, 2022. The following table reconciles our effective tax rate under U.S.
These adjustments were excluded because significant impacts of valuation allowances are not considered part of our core operations. (d) This adjustment consists of a deemed dividend related to the redemption of Cruise preferred shares from SoftBank in the year ended December 31, 2022. The following table reconciles our effective tax rate under U.S.
The following table summarizes our Automotive available liquidity (dollars in billions): December 31, 2022 December 31, 2021 Automotive cash and cash equivalents $ 13.6 $ 14.5 Marketable debt securities 10.8 7.1 Automotive cash, cash equivalents and marketable debt securities 24.4 21.6 Available under credit facilities(a) 15.1 15.2 Total Automotive available liquidity $ 39.5 $ 36.8 _________ (a) We had letters of credit outstanding under our sub-facility of $0.4 billion and $0.3 billion at December 31, 2022 and 2021.
Future dividends from GM Financial will depend on several factors including business and economic conditions, its financial condition, earnings, liquidity requirements and leverage ratio. 36 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES The following table summarizes our Automotive available liquidity (dollars in billions): December 31, 2023 December 31, 2022 Automotive cash and cash equivalents $ 12.2 $ 13.6 Marketable debt securities 7.6 10.8 Automotive cash, cash equivalents and marketable debt securities 19.8 24.4 Available under credit facilities(a) 16.4 15.1 Total Automotive available liquidity $ 36.3 $ 39.5 __________ (a) We had letters of credit outstanding under our sub-facility of $0.7 billion and $0.4 billion at December 31, 2023 and 2022.
We had intercompany loans from GM Financial of $0.2 billion at December 31, 2022 and 2021, which primarily consisted of commercial loans to dealers we consolidate. We did not have intercompany loans to GM Financial at December 31, 2022 and 2021. Refer to Note 5 to our consolidated financial statements for additional information.
GM Financial did not have borrowings outstanding against any of these facilities at December 31, 2023 and 2022. We had intercompany loans from GM Financial of $0.2 billion at December 31, 2023 and 2022, which primarily consisted of commercial loans to dealers we consolidate. We did not have intercompany loans to GM Financial at December 31, 2023 and 2022.
ETR-adjusted ETR-adjusted is used by management and can be used by investors to review the consolidated effective tax rate for our core operations on a consistent basis.
Examples of income tax adjustments include the establishment or release of significant deferred tax asset valuation allowances. ETR-adjusted (Most comparable GAAP measure: Effective tax rate) ETR-adjusted is used by management and can be used by investors to review the consolidated effective tax rate for our core operations on a consistent basis.
GMNA Industry sales in North America were 17.3 million units in the year ended December 31, 2022, representing a decrease of 6.6% compared to the corresponding period in 2021. U.S. industry sales were 14.2 million units in the year ended December 31, 2022, representing a decrease of 7.9% compared to the corresponding period in 2021.
GMNA Industry sales in North America were 19.6 million units in the year ended December 31, 2023, representing an increase of 13.1% compared to the corresponding period in 2022. U.S. industry sales were 16.0 million units in the year ended December 31, 2023, representing an increase of 12.2% compared to the corresponding period in 2022.
GMI Industry sales in China were 23.5 million units in the year ended December 31, 2022, representing a decrease of 9.2% compared to the corresponding period in 2021.
GMI Industry sales in China were 25.0 million units in the year ended December 31, 2023, representing an increase of 6.3% compared to the corresponding period in 2022.
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 was 80% in the year ended December 31, 2022 and 73% in the corresponding period in 2021.
GM Financial's penetration of our retail sales in the U.S. was 42% in the year ended December 31, 2023 and 43% in the corresponding period in 2022. Penetration levels vary depending on incentive financing programs available and competing third-party financing products in the market.
GM Financial Cash Flow (Dollars in billions) Years Ended December 31, 2022 vs. 2021 Change 2022 2021 2020 Net cash provided by (used in) operating activities $ 5.5 $ 7.3 $ 8.0 $ (1.8) Net cash provided by (used in) investing activities $ (10.0) $ (5.5) $ (9.3) $ (4.5) Net cash provided by (used in) financing activities $ 4.0 $ (2.6) $ 2.4 $ 6.6 In the year ended December 31, 2022, Net cash provided by operating activities decreased primarily due to: (1) a decrease in leased vehicle income of $1.2 billion; and (2) a net increase in cash used in counterparty derivative collateral posting activities of $0.9 billion.
In the year ended December 31, 2023, Net cash provided by operating activities increased primarily due to: (1) an increase in finance charge income of $1.7 billion; (2) a net increase in cash provided by counterparty derivative collateral posting activities of $1.3 billion; (3) and a decrease in taxes paid to GM of $0.6 billion; partially offset by (4) an increase in interest paid of $2.0 billion and (5) a decrease in leased vehicle income of $0.5 billion.
Years Ended December 31, 2022 vs. 2021 Change 2022 2021 2020 Investing Activities Capital expenditures $ (9.0) $ (7.4) $ (5.3) $ (1.6) Acquisitions and liquidations of marketable securities, net(a) (3.9) 1.0 (3.6) (4.9) Other(b) (4.5) (1.8) 0.1 (2.7) Net automotive cash provided by (used in) investing activities $ (17.5) $ (8.2) $ (8.8) $ (9.3) __________ (a) Amount includes $0.6 billion of proceeds for the sale of our share in Lyft, Inc. in the year ended December 31, 2020.
Cruise Cash Flow (Dollars in billions) Years Ended December 31, 2023 vs. 2022 Change 2023 2022 2021 Net cash provided by (used in) operating activities $ (1.9) $ (1.8) $ (1.2) $ (0.1) Net cash provided by (used in) investing activities(a) $ 1.3 $ — $ (0.7) $ 1.4 Net cash provided by (used in) financing activities(b) $ 0.4 $ 1.8 $ 2.6 $ (1.4) __________ (a) Includes $1.4 billion of net proceeds from the liquidation of marketable securities in the year ended December 31, 2023.
Refer to Note 17 to our consolidated financial statements for additional information related to Income tax expense. 33 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES GM North America Years Ended December 31, Favorable/ (Unfavorable) Variance Due To 2022 2021 % Volume Mix Price Cost Other (Dollars in billions) Total net sales and revenue $ 128,378 $ 101,308 $ 27,070 26.7 % $ 24.9 $ (5.3) $ 7.1 $ 0.3 EBIT-adjusted $ 12,988 $ 10,318 $ 2,670 25.9 % $ 8.2 $ (5.5) $ 7.1 $ (6.9) $ (0.1) EBIT-adjusted margin 10.1 % 10.2 % (0.1) % (Vehicles in thousands) Wholesale vehicle sales 2,926 2,308 618 26.8 % GMNA Total Net Sales and Revenue In the year ended December 31, 2022, Total net sales and revenue increased primarily due to: (1) increased net wholesale volumes primarily due to increased sales of crossover vehicles, passenger cars, full-size pickup trucks, vans, mid-size pickup trucks and full-size SUVs due to improved parts availability that allowed us to increase production in 2022; (2) favorable price as a result of low dealer inventory levels and strong demand for our products; and (3) favorable Other due to increased sales of parts and accessories, partially offset by the foreign currency effect resulting from the weakening of the Canadian Dollar against the U.S.
GM North America Years Ended December 31, Favorable/ (Unfavorable) Variance Due To 2023 2022 % Volume Mix Price Cost Other (Dollars in billions) Total net sales and revenue $ 141,445 $ 128,378 $ 13,067 10.2 % $ 8.5 $ 0.7 $ 3.2 $ 0.7 EBIT-adjusted $ 12,306 $ 12,988 $ (682) (5.3) % $ 2.3 $ (0.9) $ 3.2 $ (5.1) $ (0.2) EBIT-adjusted margin 8.7 % 10.1 % (1.4) % (Vehicles in thousands) Wholesale vehicle sales 3,147 2,926 221 7.6 % GMNA Total Net Sales and Revenue In the year ended December 31, 2023, Total net sales and revenue increased primarily due to: (1) increased net wholesale volumes primarily due to increased sales of crossover vehicles and full-size pickup trucks, partially offset by decreased sales of mid-size pickup trucks; (2) favorable Price as a result of low dealer inventory levels and strong demand for our products; (3) favorable Mix associated with increased sales of full-size pickup trucks and full-size SUVs and decreased sales of vans, passenger cars and mid-size pickup trucks, partially offset by increased sales of crossover vehicles; and (4) favorable Other due to increased sales of parts and accessories.
Changes in our current estimates, due to unanticipated market conditions, governmental legislative actions or events, could have a material effect on our ability to utilize deferred tax assets. Refer to Note 17 to our consolidated financial statements for additional information on the composition of valuation allowances.
Changes in our current estimates, due to unanticipated market conditions, governmental legislative actions or events, could have a material effect on our ability to utilize deferred tax assets. At December 31, 2023, valuation allowances against deferred tax assets were $7.0 billion.
We also face continuing market, operating and regulatory challenges in several countries across the globe due to, among other factors, competitive pressures, our product portfolio offerings, heightened emission standards, potentially weakening economic conditions, labor disruptions, foreign exchange volatility, evolving trade policy and political uncertainty. Refer to Part I, Item 1A. Risk Factors for a discussion of these challenges.
We will continue to evaluate the IRA impacts on our financial results as additional regulatory guidance is issued. We face continuing market, operating and regulatory challenges in several countries across the globe due to, among other factors, competitive pressures, our product portfolio offerings, heightened emission standards, labor disruptions, foreign exchange volatility, evolving trade policy and political uncertainty.
GM Financial EBT-Adjusted In the year ended December 31, 2022, EBT-adjusted decreased primarily due to: (1) decreased leased vehicle income net of leased vehicle expenses of $0.7 billion primarily due to decreased depreciation on leased vehicles resulting from increased residual value estimates and a decrease in the size of the portfolio, decreased lease vehicle income primarily due to a decrease in the average balance of the leased vehicles portfolio, and decreased lease termination gains; (2) increased provision for loan losses of $0.4 billion primarily due to increased loan origination volume in 2022, and the reduction in reserve levels recorded in 2021 as a result of actual credit performance that was better than forecast and favorable expectations for future charge-offs and recoveries, as well as an economic forecast weighted more heavily to a weaker outlook as of December 31, 2022; and (3) increased interest expense of $0.3 billion primarily due to an increased effective rate of interest on our debt; partially offset by (4) increased finance charge income of $0.4 billion primarily due to growth in the retail finance receivables portfolio, partially offset by a decrease in the effective yield due to increased lending to borrowers with prime credit; and an increase in the effective yield on commercial finance receivables as a result of higher benchmark rates, as well as an increase in the size of the portfolio.
GM Financial EBT-Adjusted In the year ended December 31, 2023, EBT-adjusted decreased primarily due to: (1) increased interest expense of $1.8 billion primarily due to an increased effective rate of interest on debt, resulting from higher benchmark interest rates, as well as an increase in average debt outstanding; (2) decreased leased vehicle income net of leased vehicle expenses of $0.9 billion primarily due to a decrease in the average balance of the leased vehicles portfolio and decreased lease termination gains due to higher leased portfolio net book values at termination and fewer terminated leases; (3) increased provision for loan losses of $0.2 billion due to lower recovery rates in 2023, as well as moderating credit performance; partially offset by (4) increased finance charge income of $1.7 billion primarily due to an increase in the effective yield resulting from higher benchmark interest rates and growth in the size of the portfolio; and (5) increased investment income of $0.3 billion primarily due to an increase in benchmark interest rates.
GMI Total Net Sales and Revenue In the year ended December 31, 2022, Total net sales and revenue increased primarily due to: (1) increased net wholesale volumes due to improved parts availability that allowed us to increase production in 2022; (2) favorable pricing across multiple vehicle lines in South America and the Middle East; and (3) favorable mix in the Middle East and Asia/Pacific, partially offset by unfavorable mix in South America; partially offset by (4) unfavorable Other primarily due to the foreign currency effect resulting from the weakening of various currencies against the U.S. dollar, partially offset by increased components, parts and accessories sales. 34 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES GMI EBIT-Adjusted In the year ended December 31, 2022, EBIT-adjusted increased primarily due to: (1) favorable price; (2) increased net wholesale volumes; and (3) favorable mix; partially offset by (4) unfavorable Cost primarily due to increased material and logistic costs; and (5) unfavorable Other primarily due to foreign currency effect resulting from the weakening of various currencies against the U.S. dollar and decreased equity income.
GMI Total Net Sales and Revenue In the year ended December 31, 2023, Total net sales and revenue increased primarily due to: (1) favorable pricing across multiple vehicle lines in Argentina, Brazil and the Middle East; and (2) favorable Mix primarily in Asia/Pacific and the Middle East; partially offset by (3) decreased net wholesale volumes in Egypt, Colombia and Chile primarily due to industry downturn, partially offset by increased volumes in Brazil due to a new vehicle launch; and (4) unfavorable Other primarily due to the foreign currency effect resulting from the weakening of the Argentine peso against the U.S. dollar, partially offset by increased components, parts and accessories sales.
GAAP to EBIT-adjusted: Years Ended December 31, 2022 2021 2020 Net income attributable to stockholders $ 9,934 $ 10,019 $ 6,427 Income tax expense 1,888 2,771 1,774 Automotive interest expense 987 950 1,098 Automotive interest income (460) (146) (241) Adjustments Cruise compensation modifications(a) 1,057 — — Russia exit(b) 657 — — Buick dealer strategy(c) 511 — — Patent royalty matters(d) (100) 250 — GM Brazil indirect tax matters(e) — 194 — Cadillac dealer strategy(f) — 175 99 GM Korea wage litigation(g) — 82 — GMI restructuring(h) — — 683 Ignition switch recall and related legal matters(i) — — (130) Total adjustments 2,125 701 652 EBIT-adjusted $ 14,474 $ 14,295 $ 9,710 ________ (a) This adjustment was excluded because it relates to the one-time modification of Cruise stock incentive awards.
GAAP to EBIT-adjusted: Years Ended December 31, 2023 2022 2021 Net income attributable to stockholders $ 10,127 $ 9,934 $ 10,019 Income tax expense 563 1,888 2,771 Automotive interest expense 911 987 950 Automotive interest income (1,109) (460) (146) Adjustments Voluntary separation program(a) 1,035 — — Buick dealer strategy(b) 569 511 — Cruise restructuring(c) 478 — — GM Korea wage litigation(d) (106) — 82 India asset sales(e) (111) — — Cruise compensation modifications(f) — 1,057 — Russia exit(g) — 657 — Patent royalty matters(h) — (100) 250 GM Brazil indirect tax matters(i) — — 194 Cadillac dealer strategy(j) — — 175 Total adjustments 1,865 2,125 701 EBIT-adjusted $ 12,357 $ 14,474 $ 14,295 __________ (a) These adjustments were excluded because they relate to the acceleration of attrition as part of the cost reduction program announced in January 2023, primarily in the U.S.
The following table summarizes GM Financial's available liquidity (dollars in billions): December 31, 2022 December 31, 2021 Cash and cash equivalents $ 4.0 $ 4.0 Borrowing capacity on unpledged eligible assets 22.0 19.2 Borrowing capacity on committed unsecured lines of credit 0.5 0.5 Borrowing capacity on revolving credit facility, exclusive to GM Financial 2.0 2.0 Total GM Financial available liquidity $ 28.5 $ 25.7 In the year ended December 31, 2022, GM Financial's available liquidity increased primarily due to increased available borrowing capacity on unpledged eligible assets, resulting from the issuance of securitization transactions and unsecured debt.
The following table summarizes GM Financial's available liquidity (dollars in billions): December 31, 2023 December 31, 2022 Cash and cash equivalents $ 5.3 $ 4.0 Borrowing capacity on unpledged eligible assets 21.9 22.0 Borrowing capacity on committed unsecured lines of credit 0.7 0.5 Borrowing capacity on revolving credit facility, exclusive to GM Financial 2.0 2.0 Total GM Financial available liquidity $ 29.9 $ 28.5 GM Financial structures liquidity to support at least six months of GM Financial's expected net cash flows, including new originations, without access to new debt financing transactions or other capital markets activity.
The GM Financial commercial finance receivables portfolio consists of floorplan financing as well as dealer loans, which are loans to finance improvements to dealership facilities, to provide working capital, or to purchase and/or finance dealership real estate.
GM Financial provides commercial lending products to its dealer customers th at include floorplan financing, also known as wholesale or inventory financing, which is lending to finance vehicle inventory. GM Financial also provides dealer loans, which are loans to finance improvements to dealership facilities, to provide working capital, or to purchase and/or finance dealership real estate.
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 have any borrowings against our primary facilities, but had letters of credit outstanding under our sub-facility of $0.4 billion and $0.3 billion at December 31, 2022 and 2021.
Our Automotive borrowing capacity under credit facilities totaled $17.1 billion at December 31, 2023, which consisted primarily of three credit facilities, and $15.5 billion at December 31, 2022, which consisted primarily of two 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.
EBT-adjusted $ 4,076 $ 5,036 $ 2,702 $ (960) (19.1) % Average debt outstanding (dollars in billions) $ 93.8 $ 94.1 $ 91.4 $ (0.3) (0.3) % Effective rate of interest paid 3.1 % 2.7 % 3.3 % 0.4 % ________ n.m. = not meaningful GM Financial Revenue In the year ended December 31, 2022, Total revenue decreased primarily due to decreased leased vehicle income of $1.2 billion primarily due to a decrease in the average balance of the leased vehicles portfolio; partially offset 35 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES by increased finance charge income of $0.4 billion primarily due to growth in the retail finance receivables portfolio, partially offset by a decrease in the effective yield due to increased lending to borrowers with prime credit; and an increase in the effective yield on commercial finance receivables as a result of higher benchmark rates, as well as an increase in the size of the portfolio.
GM Financial Years Ended December 31, 2023 vs. 2022 Change 2023 2022 2021 Amount % Total revenue $ 14,225 $ 12,766 $ 13,419 $ 1,459 11.4 % Provision for loan losses $ 826 $ 654 $ 248 $ 172 26.3 % EBT-adjusted $ 2,985 $ 4,076 $ 5,036 $ (1,091) (26.8) % Average debt outstanding (dollars in billions) $ 100.4 $ 93.8 $ 94.1 $ 6.6 7.0 % Effective rate of interest paid 4.7 % 3.1 % 2.7 % 1.6 % GM Financial Revenue In the year ended December 31, 2023, Total revenue increased primarily due to: (1) increased finance charge income of $1.7 billion primarily due to an increase in the effective yield resulting from higher benchmark interest rates and growth in the size of the portfolio; (2) increased investment income of $0.3 billion primarily due to an increase in benchmark interest rates; partially offset by (3) decreased leased vehicle income of $0.5 billion primarily due to a decrease in the average balance of the leased vehicles portfolio.
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): December 31, 2022 December 31, 2021 Residual Value Units Percentage Residual Value Units Percentage Crossovers $ 14,207 736 67.3 % $ 16,696 897 67.3 % Trucks 6,961 228 20.9 % 7,886 264 19.8 % SUVs 2,595 66 6.0 % 3,104 80 5.9 % Cars 964 63 5.8 % 1,430 93 7.0 % Total $ 24,727 1,092 100.0 % $ 29,116 1,334 100.0 % 31 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES GM Financial's penetration of our retail sales in the U.S. was 43% in the year ended December 31, 2022 and 44% in the corresponding period in 2021.
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): December 31, 2023 December 31, 2022 Residual Value Units Percentage Residual Value Units Percentage Crossovers $ 12,830 648 67.5 % $ 14,207 736 67.3 % Trucks 6,793 210 21.9 % 6,961 228 20.9 % SUVs 2,304 58 6.0 % 2,595 66 6.0 % Cars 734 44 4.6 % 964 63 5.8 % Total $ 22,661 960 100.0 % $ 24,727 1,092 100.0 % Consolidated Results We review changes in our results of operations under five categories: Volume, Mix, Price, Cost and Other.
GM International Years Ended December 31, Favorable/ (Unfavorable) Variance Due To 2022 2021 % Volume Mix Price Cost Other (Dollars in billions) Total net sales and revenue $ 15,420 $ 12,172 $ 3,248 26.7 % $ 2.0 $ 0.1 $ 1.4 $ (0.3) EBIT-adjusted $ 1,143 $ 827 $ 316 38.2 % $ 0.4 $ 0.2 $ 1.4 $ (1.1) $ (0.6) EBIT-adjusted margin 7.4 % 6.8 % 0.6 % Equity income — Automotive China $ 677 $ 1,098 $ (421) (38.3) % EBIT (loss)-adjusted — excluding Equity income $ 466 $ (271) $ 737 n.m.
GM International Years Ended December 31, Favorable/ (Unfavorable) Variance Due To 2023 2022 % Volume Mix Price Cost Other (Dollars in billions) Total net sales and revenue $ 15,949 $ 15,420 $ 529 3.4 % $ (0.6) $ 0.4 $ 1.2 $ (0.4) EBIT-adjusted $ 1,210 $ 1,143 $ 67 5.9 % $ (0.1) $ 0.1 $ 1.2 $ (0.3) $ (0.7) EBIT-adjusted margin 7.6 % 7.4 % 0.2 % Equity income — Automotive China $ 446 $ 677 $ (231) (34.1) % EBIT-adjusted — excluding Equity income $ 764 $ 466 $ 298 63.9 % (Vehicles in thousands) Wholesale vehicle sales 621 653 (32) (4.9) % The vehicle sales of our Automotive China JVs are not recorded in Total net sales and revenue.
The Act also modified climate and clean energy corporate tax provisions, including the consumer credit for EV purchases, and beginning in 2023, new tax credits for commercial EV purchases and investments in clean energy production, supply chains and manufacturing facilities became effective.
The IRA modified climate and clean energy tax provisions and added new corporate tax credits for commercial EV purchases and investments in clean energy production, supply chains and manufacturing facilities. IRA benefits, including credits and lower material costs, are expected to materially affect net income in the future.
(b) This adjustment was excluded because it relates to the shutdown of our Russia business including the write off of our net investment and release of accumulated translation losses into earnings. (c) This adjustment was excluded because it relates to strategic activities to transition certain Buick dealers out of our dealer network as part of Buick’s EV strategy.
(f) This adjustment was excluded because it relates to the one-time modification of Cruise stock incentive awards. (g) This adjustment was excluded because it relates to the shutdown of our Russia business including the write off of our net investment and release of accumulated translation losses into earnings.
The following table summarizes Cruise's available liquidity (dollars in billions): December 31, 2022 December 31, 2021 Cruise cash and cash equivalents $ 1.5 $ 1.6 Cruise marketable securities 1.4 1.5 Total Cruise available liquidity(a) $ 2.9 $ 3.1 __________ (a) Excludes a multi-year credit agreement between Cruise and GM Financial whereby Cruise can request to borrow, over time, up to an additional aggregate of $4.5 billion, through 2024, to fund exclusively the purchase of AVs from GM.
The following table summarizes our credit ratings at January 16, 2024: Corporate Revolving Credit Facilities Senior Unsecured Outlook DBRS BBB (high) BBB (high) N/A Stable Fitch BBB BBB BBB Stable Moody's Investment Grade Baa2 Baa2 Stable S&P BBB BBB BBB Stable 38 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES Cruise Liquidity The following table summarizes Cruise's available liquidity (dollars in billions): December 31, 2023 December 31, 2022 Cruise cash and cash equivalents $ 1.3 $ 1.5 Cruise marketable securities — 1.4 Total Cruise available liquidity(a)(b) $ 1.3 $ 2.9 __________ (a) Excludes a multi-year credit agreement with GM Financial whereby Cruise can borrow, over time, up to an additional aggregate of $3.4 billion, through 2024, to fund the purchase of AVs from GM and all accessories, attachments, parts and other equipment acquired in connection with or otherwise relating to any AV.
In April 2022, we renewed our 364-day, $2.0 billion revolving credit facility allocated for the exclusive use of GM Financial, which now matures on April 4, 2023. If available capacity permits, GM Financial continues to have access to our automotive credit facilities. GM Financial did not have borrowings outstanding against any of these facilities at December 31, 2022 and 2021.
We did not have any borrowings against our primary facilities, but had letters of credit outstanding under our sub-facility of $0.7 billion and $0.4 billion at December 31, 2023 and 2022. If available capacity permits, GM Financial continues to have access to our five-year, $10.0 billion and three-year, $4.1 billion credit facilities.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeThe following table summarizes the amounts of automotive foreign currency translation and transaction and remeasurement (gains) losses: Years Ended December 31, 2022 2021 Translation (gains) losses recorded in Accumulated other comprehensive loss $ (37) $ (132) Transaction and remeasurement (gains) losses recorded in earnings $ 173 $ (15) Interest Rate Risk We are subject to market risk from exposure to changes in interest rates related to certain financial instruments, primarily debt, finance lease obligations and certain marketable debt securities.
Biggest changeFluctuations in foreign currency exchange rates can therefore create volatility in the results of operations and may adversely affect our financial condition. 49 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES The following table summarizes the amounts of automotive foreign currency translation, transaction and remeasurement (gains) losses: Years Ended December 31, 2023 2022 Translation (gains) losses recorded in Accumulated other comprehensive loss $ (169) $ (37) Transaction and remeasurement (gains) losses recorded in earnings $ 344 $ 173 Interest Rate Risk We are subject to market risk from exposure to changes in interest rates related to certain financial instruments, primarily debt, finance lease obligations and certain marketable debt securities.
The potential loss in fair value for such financial instruments from a 10% adverse change in all quoted foreign currency exchange rates would have been insignificant at December 31, 2022 and 2021. We are exposed to foreign currency risk due to the translation and remeasurement of the results of certain international operations into U.S.
The potential loss in fair value for such financial instruments from a 10% adverse change in all quoted foreign currency exchange rates would have been insignificant at December 31, 2023 and 2022. We are exposed to foreign currency risk due to the translation and remeasurement of the results of certain international operations into U.S.
Foreign Currency Exchange Rate Risk We have foreign currency exposures related to buying, selling and financing in currencies other than the functional currencies of our operations. At December 31, 2022, our most significant foreign currency exposures were between the U.S. Dollar and the Canadian Dollar, Chinese Yuan, Korean Won, Brazilian Real, and Mexican Peso.
Foreign Currency Exchange Rate Risk We have foreign currency exposures related to buying, selling and financing in currencies other than the functional currencies of our operations. At December 31, 2023, our most significant foreign currency exposures were between the U.S. Dollar and the Canadian Dollar, Korean Won, Chinese Yuan, Mexican Peso and Brazilian Real.
In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2022 and 2021, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2022, in conformity with U.S. generally accepted accounting principles.
In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2023, in conformity with U.S. generally accepted accounting principles.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated January 31, 2023 expressed an unqualified opinion thereon.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated January 30, 2024 expressed an unqualified opinion thereon.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2022 and 2021, the related consolidated statements of income, comprehensive income, cash flows and equity for each of the three years in the period ended December 31, 2022, and the related notes and our report dated January 31, 2023 expressed an unqualified opinion thereon.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2023 and 2022, the related consolidated income statements and consolidated statements of comprehensive income, cash flows and equity for each of the three years in the period ended December 31, 2023, and the related notes and our report dated January 30, 2024 expressed an unqualified opinion thereon.
The potential increase in fair value resulting from a 10% decrease in quoted interest rates would have been $0.8 billion and $0.6 billion at December 31, 2022 and 2021. We had marketable debt securities, including those held by Cruise, of $12.2 billion and $8.6 billion classified as available-for-sale at December 31, 2022 and 2021.
The potential increase in fair value resulting from a 10% decrease in quoted interest rates would have been $0.7 billion and $0.8 billion at December 31, 2023 and 2022. We had marketable debt securities, including those held by Cruise, of $7.6 billion and $12.2 billion classified as available-for-sale at December 31, 2023 and 2022.
These differences may include tenor, yield, re-pricing timing, and prepayment expectations. Typically, retail finance receivables and leases purchased by GM Financial earn fixed interest and commercial finance receivables originated by GM Financial earn variable interest. GM Financial funds its business with variable or fixed rate debt. The variable rate debt is subject to adjustments to reflect prevailing market interest rates.
These differences may include tenor, yield, repricing timing and prepayment expectations. Typically, retail finance receivables and leases purchased by GM Financial earn fixed interest and commercial finance receivables originated by GM Financial earn variable interest. GM Financial funds its business with variable or fixed rate debt. The variable rate debt is subject to adjustments to reflect prevailing market interest rates.
In our opinion, General Motors Company and subsidiaries (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2022, based on the COSO criteria.
In our opinion, General Motors Company and subsidiaries (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2023, based on the COSO criteria.
However, interest rate changes are rarely instantaneous or parallel and rates could move more or less than the one percentage point assumed in our analysis. Therefore, the actual impact to net interest income could be higher or lower than the results detailed in the table below.
However, interest rate changes are rarely instantaneous or parallel and rates could move more or less than the one percentage point assumed in GM Financial's analysis. Therefore, the actual impact to net interest income could be higher or lower than the results detailed in the table below.
The potential decrease in fair value from a 50 basis point increase in interest rates would have been insignificant at December 31, 2022 and 2021.
The potential decrease in fair value from a 50 basis point increase in interest rates would have been insignificant at December 31, 2023 and 2022.
The net fair value of these derivative financial instruments was a liability of $0.6 billion and $0.2 billion at December 31, 2022 and 2021.
The net fair value of these derivative financial instruments was a liability of $0.2 billion and $0.6 billion at December 31, 2023 and 2022.
Detroit, Michigan January 31, 2023 51 Table of Contents REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Shareholders and the Board of Directors of General Motors Company Opinion on Internal Control over Financial Reporting We have audited General Motors Company and subsidiaries’ internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria).
Detroit, Michigan January 30, 2024 54 Table of Contents REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Shareholders and the Board of Directors of General Motors Company Opinion on Internal Control Over Financial Reporting We have audited General Motors Company and subsidiaries’ internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria).
Management’s estimates consider historical claims experience, including the nature, frequency, and average cost of claims of each vehicle line or each model year of the vehicle line, and the key assumptions of historical data being predictive of future activity and events, in particular, the number of historical periods used and the weighing of historical data in the reserve studies. 49 Table of Contents How we addressed the matter in our audit We evaluated the design and tested the operating effectiveness of internal controls over the Company’s product warranty and recall campaign processes.
Management’s estimates consider historical claims experience, including the nature, frequency, and average cost of claims of each vehicle line or each model year of the vehicle line, and the key assumptions of historical data being predictive of future activity and events, specifically the number of historical periods used and the weighting of historical data in the reserve studies. 52 Table of Contents How we addressed the matter in our audit We evaluated the design and tested the operating effectiveness of internal controls over the Company’s product warranty and recall campaign processes.
As a result, GM Financial believes its market risk exposure relating to changes in currency exchange rates at December 31, 2022 was insignificant. GM Financial had foreign currency swaps with notional amounts of $6.9 billion and $8.2 billion at December 31, 2022 and 2021.
As a result, GM Financial believes its market risk exposure relating to changes in currency exchange rates at December 31, 2023 was insignificant. GM Financial had foreign currency swaps with notional amounts of $8.0 billion and $6.9 billion at December 31, 2023 and 2022.
The following table summarizes GM Financial's foreign currency translation and transaction and remeasurement (gains) losses: Years Ended December 31, 2022 2021 Translation (gains) losses recorded in Accumulated other comprehensive loss $ 156 $ 44 Transaction and remeasurement (gains) losses recorded in earnings $ (1) $ (3) * * * * * * * 48 Table of Contents REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Shareholders and the Board of Directors of General Motors Company Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of General Motors Company and subsidiaries (the Company) as of December 31, 2022 and 2021, the related consolidated statements of income, comprehensive income, cash flows, and equity for each of the three years in the period ended December 31, 2022, and the related notes (collectively referred to as the “financial statements”).
The following table summarizes GM Financial's foreign currency translation, transaction and remeasurement (gains) losses: Years Ended December 31, 2023 2022 Translation (gains) losses recorded in Accumulated other comprehensive loss $ (147) $ 156 Transaction and remeasurement (gains) losses recorded in earnings $ 5 $ (1) * * * * * * * 51 Table of Contents REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Shareholders and the Board of Directors of General Motors Company Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of General Motors Company and subsidiaries (the Company) as of December 31, 2023 and 2022, the related consolidated income statements and consolidated statements of comprehensive income, cash flows and equity for each of the three years in the period ended December 31, 2023, and the related notes (collectively referred to as the “financial statements”).
Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. / s / ERNST & YOUNG LLP Detroit, Michigan January 31, 2023 52 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES
Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. / s / Ernst & Young LLP Detroit, Michigan January 30, 2024 55 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES
As discussed in Note 2 to the financial statements, provisions for dealer and customer incentives are recorded as a reduction to Automotive net sales and revenue at the time of vehicle sale. The liabilities for dealer and customer allowances, claims and discounts amount to $4.8 billion at December 31, 2022.
As discussed in Note 2 to the financial statements, provisions for dealer and customer incentives are recorded as a reduction to Automotive net sales and revenue at the time of vehicle sale. The liabilities for dealer and customer allowances, claims and discounts amount to $6.1 billion at December 31, 2023.
These interest rate scenarios are purely hypothetical and do not represent our view of future interest rate movements. At December 31, 2022 and 2021, GM Financial was liability-sensitive, meaning that more liabilities than assets were expected to re-price within the next 12 months.
These interest rate scenarios are purely hypothetical and do not represent GM Financial's view of future interest rate movements. At December 31, 2023 and 2022, GM Financial was liability-sensitive, meaning that more liabilities than assets were expected to reprice within the next 12 months.
The Company’s estimated residual value of leased vehicles at the end of lease term was $24.7 billion as of December 31, 2022. 50 Table of Contents Auditing management’s estimate of the residual value of leased vehicles involved a high degree of judgment.
The Company’s estimated residual value of leased vehicles at the end of lease term was $22.7 billion as of December 31, 2023. 53 Table of Contents Auditing management’s estimate of the residual value of leased vehicles involved a high degree of judgment.
The estimates are also based on assumptions including the amortization and prepayment of the finance receivable portfolio, originations of finance receivables and leases, refinancing of maturing debt, replacement of maturing derivatives and exercise of options embedded in debt and derivatives. The prepayment projections are based on historical experience.
The estimates are also based on assumptions including 50 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES the amortization and prepayment of the finance receivable portfolio, originations of finance receivables and leases, refinancing of maturing debt, replacement of maturing derivatives and exercise of options embedded in debt and derivatives. The prepayment projections are based on historical experience.
Product warranty and recall campaigns Description of the matter As discussed in Note 12 to the financial statements, the liabilities for product warranty and recall campaigns amount to $8.5 billion at December 31, 2022.
Product warranty and recall campaigns Description of the matter As discussed in Note 12 to the financial statements, the liabilities for product warranty and recall campaigns amount to $9.3 billion at December 31, 2023.
We did not have any interest rate swap positions to manage interest rate exposures in our automotive operations at December 31, 2022 and 2021. The fair value of debt and finance leases was $16.8 billion and $20.6 billion at December 31, 2022 and 2021.
At December 31, 2023, interest rate swap positions were used to manage interest rate exposures in our automotive operations and were insignificant. The fair value of debt and finance leases was $16.5 billion and $16.8 billion at December 31, 2023 and 2022.
Derivative instruments such as foreign currency forwards, swaps and options are primarily used to hedge exposures with respect to forecasted revenues, costs and commitments denominated in foreign currencies.
Derivative instruments such as foreign currency forwards, swaps and options are primarily used to hedge exposures with respect to forecasted revenues, costs and commitments denominated in foreign currencies. Such contracts had remaining maturities of up to 12 months at December 31, 2023 and were insignificant.
GM Financial's hedging strategies approved by its Global Asset Liability Committee are used to manage interest rate risk within policy guidelines. 47 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES The following table presents GM Financial's net interest income sensitivity to interest rate movement: Years Ended December 31, 2022 2021 One hundred basis points instantaneous increase in interest rates $ (4.3) $ (5.1) One hundred basis points instantaneous decrease in interest rates(a) $ 4.3 $ 5.1 __________ (a) Net interest income sensitivity given a one hundred basis point decrease in interest rates requires an assumption of negative interest rates in markets where existing interest rates are below one percent.
The following table presents GM Financial's net interest income sensitivity to interest rate movement: Years Ended December 31, 2023 2022 One hundred basis points instantaneous increase in interest rates $ (7.7) $ (4.3) One hundred basis points instantaneous decrease in interest rates(a) $ 7.7 $ 4.3 __________ (a) Net interest income sensitivity given a one hundred basis point decrease in interest rates requires an assumption of negative interest rates in markets where existing interest rates are below one percent.
These amounts are calculated utilizing a population of foreign currency exchange derivatives and foreign currency denominated debt and exclude the offsetting effect of foreign currency cash, cash equivalents and other assets.
The net fair value liability of financial instruments with exposure to foreign currency risk was $0.4 billion and $0.2 billion at December 31, 2023 and 2022. These amounts are calculated utilizing a population of foreign currency exchange derivatives and foreign currency denominated debt and exclude the offsetting effect of foreign currency cash, cash equivalents and other assets.
Removed
Such contracts had remaining maturities of up to 12 months at December 31, 2022. 46 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES The net fair value liability of financial instruments with exposure to foreign currency risk was $0.2 billion and $0.7 billion at December 31, 2022 and 2021.
Added
GM Financial's hedging strategies approved by its Global Asset Liability Committee are used to manage interest rate risk within policy guidelines.
Removed
Dollars as part of the consolidation process. We had foreign currency derivatives with notional amounts of $4.1 billion and $4.2 billion at December 31, 2022 and 2021. The fair value of these derivative financial instruments was insignificant. Fluctuations in foreign currency exchange rates can therefore create volatility in the results of operations and may adversely affect our financial condition.

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