Chris Mcnally, David, Ford Motor discussed on Balance of Power


Results for its first quarter today and said the rest of the year is looking good as well. I spoke with Chairman and CEO Mary Barra shortly after the announcement. And I asked her how they were increasing profits, even his overall revenues are relatively flat. Strong demand for our full size trucks and SUVs. I mean the Chevrolet Silverado, the GMC Sierra theme, the Escalade, the Tahoe, etcetera. There is exceptionally strong demand for those products. And so I think that's what's driving a very high average transaction prices because the demand is so high, we've been able to continue to be very disciplined and incentives. And then our financing unit. GM Financial has done an excellent job of taking advantage of higher used car prices and just a very strong market. We're also seeing recovery on and, you know, return Tol strong sales in China so across the board, they contributed to the strong numbers. So you surprised Perhaps some people are saying not only we stick with our guidance going forward for the rest of the year, but anything we think it's going to start toward the upper end of that guidance at the same time. You have the problem with chips? We talked about it last quarter. Something like 1.5 to $2 billion being left on the table as it were. I think that number still holds good. And yet you're doing much better than peace appeal across the street at Ford, for that matter, Fiat Chrysler pew, Joe, Why Well again. There's not a lot of transparency between the different automakers of what's happening. We're focused on GM and I think what's been incredible is the work that we're doing with our purchasing group are engineering group are manufacturing group in sales and marketing and working with suppliers. You know, we've been working to build strong relationship with our suppliers for many, many years now, and there's just a team that is looking understanding. What ships are we gonna have access to? How do we allocate those two are highest demand and products that we have limited or no ability to recover? Because there's just such strong demand. We run those manufacturing operations around the clock, and they're they're just being creative and doing what engineers do of problem solving and and in some cases, re engineering to get the chips to the right products and Just find every opportunity we can to build a car Trucker cross over and get it to the customer. So it's a mixed question. Not just of the vehicles you sell, but also where you direct your chips. It sounds like you want to direct it. The ones that really are the most important. Are you getting mortuaries? Do you think then you would have expected because of your purchasing department? Well again. There's not a lot of transparent to say more than you know. We were very clear last year of what we thought the demand was going to be this year and the chips that we had ordered, and so we know we're continuing to work with the supply based on that and again, But I think it's looking for every opportunity and in managing. It's centrally and also working hand in hand with R J V and China so Across the board. We are just really being. I think the team is being really scrappy and finding ways that we can build the vehicle's not only full size trucks and SUVs but also our electric vehicle programs. And I think it's important to note that even with the challenges of the semi conductors shortage, there is no impact on our electric vehicles on our autonomous vehicles and the growth initiatives that we've been talking about this first quarter. That was one of the questions. I had both for the Hummer That's coming out later this year, and then the lyric, which is coming out something that first half of next year. Is there gonna be any delay because of the chip problem? Absolutely not. And I can tell you those vehicle programs are on track. And I'm really excited to have customers get in those vehicles and drive them because I think they're going to be amazed way understand the 1.5 to $2 billion number that was put up before but can you give us some sense? Those was the donor stand the supply chain. If you had 100% of the chips you needed. What percentage you getting now? Are you running at 50% 75%? You know, it's it's a very dynamic situation. And so you know again. I think it's every chip. We have access to. We're making sure it gets into the vehicles where we have really strong customer demand. But it's something that changes every day, David, so I'm not going to put a number on it. That that was part of my interview with GM Chairman and CEO Berry borrow firm or on the performance of GM stock. We welcome now Bloomberg's Dave Wilson, because it is our stock of the hour. So Dave, give us what happened to a GM after those announcements of the earnings well mean the shares you that they added to their gains this year, man you're talking about a company that's been up Close to 40%, depending on where you look at a turn the course of today and it's understanding because earnings worm or than double, the average analyst, estimates, the Bloomberg survey. Even the revenue came up a bit short, You know, you talked about the demand for those full size sport utility vehicles and pickup trucks with the higher profit margins. And certainly GM benefited from that, And what you're left with is whatever Korea's I analyst Chris McNally called a blowout quarter Now. You also mentioned David that one a half billion to $2 billion number in terms of the hit from chip supply issues. Just to put that in context. Ford Motor came out last week and gave an estimate of 2.5 billion. So in other words, GM isn't suffering quite as much as four. It is from the lack of chips. Now we can't say that they're not suffering at all. They're certainly supply issues. GM ending the quarter with inventory about 335,000 cars and trucks, and that was half What they had at the same time last year. So you know it's certainly an issue and you can see just how the chip shortages playing out across U. S automakers, and then take a look at how GM shaping up in terms of where their business is now. So there are a couple of comparisons here. Dave. One of them is with other traditional.

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