General Motors Company (NYSE:GM) Q2 2020 Earnings Conference Call - Final Transcript

Jul 28, 2020 • 08:00 pm ET

Previous

General Motors Company (NYSE:GM) Q2 2020 Earnings Conference Call - Final Transcript

Share
Close

Loading Event

Loading Transcript

Presentation
Executive
Mary T. Barra

steps we plan to take. These along with all of our progress across ESG are detailed in our new sustainability report, which is available on gm.com.

Now let's look at the numbers. Net revenue was $16.8 billion. We had an EBIT adjusted loss of $536 million; EBIT-adjusted margins of negative 3.2%; EPS diluted adjusted loss of $0.50; adjusted automotive cash flow of $9 billion negative; and ROIC adjusted of 6.4% on a trailing four-quarter basis.

In North America, as part of our ongoing transformation, Steve Carlisle was named President of GM North America. Steve demonstrated track record in particular experience of strengthening the Cadillac brand and will accelerate our progress in our very important North America market. We also created an innovation in growth organization that will be led by Alan Wexler, our newly hired Senior Vice President, who will report directly to me. Alan is the former Chairman and CEO of Publicis Sapient, a digital business transformation firm, and brings decades of experience, leading innovation and customer-driven technology solutions.

Another positive development, the U.S. full-size truck and full-size SUV plants are currently operating at three shifts. To meet demand, we will add 200 employees in Fort Wayne, effective September 1, which will increase our output by a 1,000 units per month. We continue to offer customers a choice on how they want to do business with us. This includes using the Shop-Click-Drive tool where visits are up 50% this year, as well as our CLEAN program for those who prefer to physically visit our dealerships.

Customers are now taking delivery of the first of our all-new full-size SUVs. Our Chevrolet, and GMC dealers are selling every new Tahoe and Yukon they can get and buyers are praising the new design and outstanding ride quality. The vast majority of initial Yukon sales are the highly profitable Denali. We continue launching new models through this summer, including the Chevrolet Suburban and the GMC Yukon XL. We've also begun building the highly anticipated 2021 Escalade. It's going well, and we anticipate starting regular production early. Among its industry exclusive technologies, Escalade's available Super Cruise offers new enhancements including lane-change-on-demand functionality. Cadillac has generated the most consumer interest ever for the new Escalade with 600-plus orders already on the books.

In addition, the 2021 Chevrolet Trailblazer and Buick Encore GX small SUVs are new market opportunities for both brands. Both are gaining share every month, turning fast at dealers and attracting new and younger buyers. Nearly one-third of Trailblazer's buyers are 35 or younger and Encore GX has quickly become the brand's highest-volume Buick, surpassing the Encore.

In other North America highlights, GM was the highest-ranked automaker in the J.D. Power 2020 Initial Quality Study. Our brands led in six segments and eight other models placed within the Top 3. In addition, GM rose three spots in the J.D. Power U.S. Automotive Performance, Execution and Layout study or often referred to as APEAL. Our brands led in three segments and nine other models