Good morning and welcome to the General Motors Company First Quarter 2021 Earnings Conference Call. During the opening remarks all participants will be in a listen-only mode. After the opening remarks we'll conduct a question-and-answer session. [Operator Instructions]. As a reminder, this conference call is being recorded, Wednesday, May 5, 2021. I would now like to turn the conference over to Rocky Gupta, Treasurer and Vice President of Investor Relations.

Thanks Tabitha. Good morning and thank you for joining us as we review GM's financial results for the first quarter of 2021. Our conference call materials were issued this morning and are available on GM Investor Relations website. As usual we're also broadcasting this call via webcast. I'm joined today by GM's Chairman and CEO, Mary Barra; GM's CFO, Paul Jacobson; and GM Financial President, Dan Berce. Before we begin, I would like to direct your attention to the forward-looking statements on the first page of the chart set. The content of our call will be governed by this language. I will now turn the call over to Mary Barra.

Good morning and thanks for joining our first quarter earnings call. Our start to this year was very strong with a record Q1 performance that was driven largely by robust product demand in the US, as well as an outstanding quarter for GM Financial. We remain confident that we will achieve our full year guidance. We are on a path to transform our company on the timeline we have shared with you and we are demonstrating our ability to accelerate our plan. Before I discuss the progress, we've made on our transformation and growth strategy, I'll provide some highlights about our performance. I'm very pleased with the strength of our global business which contributed to EBIT-adjusted of 4.4 billion and an EPS diluted adjusted of $2.25. The strong quarter was a full team effort with people working in our plants all the way to our dealers. Global purchasing and supply chain, engineering and manufacturing have been especially nimble and opportunistic as we manage through the semiconductor shortage. For example, our engineers are creating effective solutions using chips that are more readily available or by identifying alternatives to conserve semiconductors where possible. Their work helped us maximize production of our highest demand and capacity constraint vehicles, reducing downtime and further demonstrating our team's agility. While we have production downtime in the second quarter, we expect to have a strong first half with EBIT adjusted around 5.5 billion ish. We are also reaffirming our guidance for the full year and based on what we know today, we see the results coming in at the higher end of the $10 to $11 billion EBIT-adjusted range that we shared earlier this year. We remain committed to fund $7 billion in EV and AV investments that includes capital and engineering this year and accelerating 12…

Thank you, Mary, and good morning, everyone. Thanks for taking the time to join us this morning. This has been a very exciting first full quarter for me at GM. I see so much opportunity here for us to use our world class capabilities in manufacturing, engineering and customer loyalty to really leverage these with our scale to achieve our growth initiatives. First to set the stage before I get into the details, we had a great quarter, a first quarter record in fact, despite the volatile backdrop. Our strong Q1 performance continues to highlight the resiliency of our business, as well as our ability to take decisive actions to adapt to the fluid supply chain environment. In Q1 for example, we were able to build in wholesale more vehicles than forecasted and defer anticipated plant downtime. This strong operational execution combined with the additional actions on price and expense reductions enabled us to deliver stronger than expected results for the quarter. We are collaborating across the global supply chain and working tirelessly to route available parts to the appropriate plants in order to maximize plant efficiency. We've been focused on leveraging every available semiconductor to build and ship our most popular and in-demand products, including our highly profitable full-size pickups and full-size SUVs. I'm very proud of the team for everything they've accomplished in the first quarter and what they're continuing to do, including strong pricing for every vehicle that we're able to produce, prioritizing production of higher demand vehicles, continuing to be very controlled on cost and being agile across the board. As Mary mentioned, the full year 2021 guidance we outlined last quarter and reiterated a couple of times remains intact. And we expect to be at the higher end of our EBIT-adjusted range. We expect Q2…

[Operator Instructions] The first question comes from the line of Rod Lache with Wolfe Research.

Good morning, everybody.

Hi, Rod. Good morning.

I want to probe this semiconductor issue a little bit with you. So you're maintaining the full year, I suspect Q1 was better than you expected and that maybe this Renaissance fire is having a larger impact near-term than you anticipated. But maybe if you can help us a little bit with what's happening behind the scenes. Number one, what's embedded in the implied Q2 earnings? Are all the earnings essentially coming from China and maybe GMF near-term? Number two, I assume that the full year $1.5 billion to $2.5 billion impact from semi's that you talked about has a very large gross negative volume impact and some very large offsets, pricing and other things. Maybe you can provide some color on the gross effects? And then lastly, what gives you confidence in the recovery? Are you - can you maybe share a little bit on what you're seeing happening through the Tier 2 supply chain?

Hey, Rod, there's a lot in there. But I first start off by saying the team is working to get every chip we can and to look at how do we leverage. It maybe chips that we weren't planning to use and how do we leverage them, as well as simplifying some things. So it's a - it's really the ingenuity and creativity of the team that is allowing us to build. Yes, the Renaissance fire did have an impact. And the team goes to work and figures out how to offset or minimize it and that's what they're doing. So I think there was a lot of great problem solving that was done in Q1. We have said we think Q2 will be the weakest. And then we see recovery coming in Q3 and Q4. And that's based on all the work the team is doing working with suppliers, et cetera. So there's no - it's just chip by chip working the issues to find solutions. And that's what the team is so good at doing. And it remains very dynamic. So I think to look here today and try to quantify exactly what all the ins and outs are going to be for the rest of the year. I think it would that'd be data that has a pretty short shelf life. But I think what you can count on and what we see with all the work that's been done across the whole supply chain and engineering team is that we have confidence that we're going to be able to hit our guidance and that with everything we know today will be at the top end.

Could you at least maybe give us some color on the magnitude of the volume loss that you're currently embedding in this full year forecast?

Hey, Rod, this is Paul. Yeah, I think the challenge with the volumes is that - as we said repeatedly, this is a really fluid situation. I mean, it quite literally changes day to day. So I think the commentary that we've given that, no doubt this situation has somewhat worsened in the short-term since the first quarter. We're constantly flexing. So some days, it gets a little better, some days, it gets a little bit worse. And what we're trying to do is just kind of reorient everybody around this. This semiconductor challenge was baked into our full year expectations. Certainly the timing is somewhat fluid and you see that. The fact that the first quarter has blown out expectations and 2Q is under consensus. But if you actually look at the first half, when you add Q1 and Q2 together, it's actually exceeding where street consensus was for the first half of the year. So I think we're pleased with the way that we're managing through this. And we want to try to keep it to the big picture because we can really get lost in the details on how fluid the situation is.

Yeah, understood and just lastly, very nice to see the international operation ex China approaching breakeven. And I assume a lot of that is related to some of the things that you've talked about before in South America, the actions you've been taking. What's the strategy longer term for that region? And do you think that that fits into the long-term, zero emission future that you described?

So Rod, I am really proud of the GMI team ex China, part of the China team as well. But that team that's really focused on those countries and the great progress they've been making. When we specifically talk about South America, we have strong brands and a strong dealer network and leading products in the in the market. And the team has continued to work on reducing costs and managing the business in a way that has allowed us to achieve those results in Q4 and Q1. That region will be impacted by Q2, which we've indicated overall will be weaker. But again, that's a - it's a temporary thing. And we're continuing to work all aspects because that region, we've got to get to earnings cost of capital. And that's the journey that we're on and we'll continue.

Okay, thank you.

Your next question comes from the line of Itay Michaeli with Citi.

Great, thanks. Good morning, everybody.

Good morning,

Maybe to start first just a couple financial questions, Paul, any thought to where US dealer inventory could end the year? And with the new tools that you've implemented for ordering, any updated thoughts on how you're thinking about running dealer inventory, let's say over the next couple of years?

Yeah. And good morning Itay, thanks for the question. I think - I don't think anybody would say that dealer inventory levels are optimized right now just drive by some lots and you see empty lots. It certainly means that that we're operating much, much lower than what I think - we even think is optimal. But as we mentioned in the comments, there's a lot of tools that we're learning how to operate at these lean levels that I think will provide some long-term efficiencies. And the dealer network has done really an amazing job of not only working with us, but also providing an environment for the customer that where the vehicle may not be immediately available, they give them reassurance to help drive that purchase transaction versus the customer being disappointed that the vehicle that he or she doesn't want isn't there on the lot. So that visibility, I think, undoubtedly will help us over the long-term. And we're taking those lessons and we're figuring out how to make sure that we manage that as efficiently as we can. But we certainly came into the year expecting to build inventories out of - coming out of the COVID situation. That clearly is challenged amid some of the production issues that we've seen with the semiconductor shortage. But we certainly hope to build as we get into perhaps late 2021 into 2022, to start getting inventory levels at what we think is a is a much safer value to have vehicles on the lots where customers want to purchase them.

That's helpful. I appreciate the detail, Paul. Then maybe just one strategic question actually on AV, of the 27 billion of spend on EV and AV can you maybe dimension how much of it is going towards the AV side? And how much of that may be is outside of Cruise? I'm trying to get out is sort of, maybe you can give us a bit of a sense of your vision for autonomy on the GM consumer vehicles whether Cruise may or may not play a role within that and kind of how you see that developing over the next several years as part of the objectives of the company.

Sure. Well, our focus at Cruise is to get creative technology that's safer than a human driver and deploy in our first market from a commercialization perspective, and then we'll continue to expand that into other cities and really excited with the progress they're showing in San Francisco, obviously, Dubai is very significant as well. So you take that and I've always said, we have kind of a revolutionary and an evolutionary strategy around driver assistance all the way to full level four and level five autonomy. So you see crews really focused on that full autonomy, but Super Cruise, we continue to add more and more features. And we've said that we envisioned that to get 95%, of being able to handle all solutions. Later in the decade, I believe and there's a lot to still unfold, but I believe we'll have personal autonomous vehicles, and then that will leverage the capability we have at Cruise, with the capability that we have at the car company, to really be well positioned to delight the customers from that perspective. So both paths are very important because the technology we put on vehicles today, I think makes them safer and delights the customers and is going to give us an opportunity for subscription revenue. And then the ultimate work that we're doing our Cruise, I think that is fully autonomous. Really opens up more possibilities and I think we can outline to that.

That's all very helpful. Thanks so much.

Thank you. Itay.

Your next question comes from the line of Emmanuel Rosner with Deutsche Bank.

Hi, good morning, everybody.

Good morning.

First, a financial question, so Paul, I was hoping you could talk a little bit about sequential factors of profitability comparing first half to second half. So you're calling for similar levels of profitability at 5.5 billion each. But obviously, in the first half, you started out very strong in the first quarter and a lot of the headwinds in the second quarter are somewhat unusual and likely to repeat. So there's obviously some offset for the raw materials and cost and pricing. But just could you sort of talk about these various factors?

Yeah, thanks Emmanuel for that question. It's obviously a challenging environment to be able to be thinking about longer term, even six months, nine months ahead as we are navigating through this. So I think what we see is well, I would say cautious optimism. So while we talk about the second half of the year being similar or potentially slightly better than the first half, there's some caution in that. So for example things like the used car vehicle prices that GM Financial is clearly benefiting from that's likely to stay in place as long as new car inventories remain low. So that's an example of I would say that a variable that's sort of hedged directly against the challenges of the semiconductor. But as more vehicles come online, and I think most industrial forecasts are that chip availability is going to be better in the second half than it is in the first half. And I think we think that's true as well. That could lead to pricing that maybe isn't as strong as it was in the first quarter. So I think we're trying to maintain some caution and some rationality. The reality is we're - we and others are right in the middle of this, I think we're doing a really good job of managing through it as evidenced by the first quarter. And the fact that the first half of the year is coming in above consensus estimates before we announced. That - it's trying to provide a mix of reassurance in the projections that we've given, as well as some cautious optimism about what the future holds.

Okay, and if I could just follow up quickly on this one. Are you able to dimension at all some of these more discrete buckets? So for example, raw materials, how much larger of a headwind could it be in the second half versus the first half? And then I also noticed in your first quarter cost walk, you're talking about higher engineering costs for EVs in particular. How should we think about that over the rest of the year?

Well clearly on the second part of that question first, you're going to continue to see engineering expenses pivoting into EVs. And I think as we continue to lean in and accelerate some of those vehicle programs, we are we are investing resources to be able to do that. So the first part of your question clearly commodity inflations had a massive impact. You just need to look at some of the indices to be able to see that, but we're not really isolating that because we're taking all of the cost pressures that we've seen both from our initial expectations and what's constantly changing and putting that all into the same bucket. So much the same way that the semiconductor issue is fluid in day to day, so are the commodity prices going forward? So while we have a little bit of forward purchasing going on, obviously, in the supply chain there's some exposure out there, but there's also some potential goodness if prices normalize. So we're trying to keep all of that very, very fluid as we manage it in the aggregate, both in terms of go-to-market strategies, as well as production prioritization.

Great and then my second question on electric vehicles, so your Silverado electric vehicle was confirmed officially in April, I think you said it will be your first high volume EV towards several high volume models by 2023. I'm curious if you could dimension for us how much of a contribution will the Silverado be towards your mid-decade goal of a million plus units by 2025? Or may be expressed differently, what kind of take rates you expect on pickups for EV powertrain, I guess in the relatively near to mid-term?

Well, I think we see it as a huge opportunity. I mean, we've gotten really strong response from commercial and government orders as a lot of fleet customers are looking to have zero emission vehicles. And again, we have incredible know how in this company and how to do full-size trucks, and we're taking that into an EV propelled vehicle. And that I think is going to give us some winning formula. I'm excited to share that vehicle with everyone because it's just stunning. So I think we're going to see strong demand there along with some other products be an important part of getting to our goals to have North America leadership. And I would say it's one of a few or several getting into the high volume segments that obviously we need to do and GM is well positioned to do building on the Ultium platform to achieve that leadership.

Okay, thank you.

Your next question comes from the line of John Murphy with Bank of America.

Hi, John.

Good morning. Good morning, everybody. Hi, Mary. So I just want to get back into this question of the inventory being too tight or light. And I mean, you just put up a record quarter and you're telling us that the inventory is not optimal and it's too light. I mean, would you argue that record profits indicates that you're in an optimal inventory? I mean, the industry is gone through this. And we've been covering this for a few decades now, where the inventory has been out of whack and too high. And now, suddenly, it's supposedly too tight. And we're seeing record profits put up. I mean, is it really too tight? And what do you mean by like, going back to something this is more normal. I mean, if I look at the last three quarters, I mean, I think the inventory was 492,000 in the third quarter of last year and now you're at 335. So is it somewhere in that zip code? Because I mean, you just put up the best three quarter stretch I think GM has had in history with this inventory that's not optimal or too tight. It just seems like you shouldn't change that much. What do you mean by growing the inventory?

So John, I think you're right, that will never go back to that levels of inventories that we held post our pre-pandemic because we've learned we can be much more efficient, getting the right models to the right dealers at leveraging and not having as much on the lot. But there are still customers who want to walk into a dealership and walk out or drive off the dealership with a brand new vehicle and we've got to be responsive to those customers as well. So I think it's going to end up being a little higher, especially when you look at our dealer network. I've got them sending me pictures of they have virtually nothing on the lot. So there's an optimal level, significantly lower than it was in the past, but higher than it is now. I think what you're seeing now, though, is the ingenuity of our dealers and the new tools we provided that give them insight into what's coming, and they're selling deep not only into the inventory, but deep into the pipeline of vehicles that are on the way. So I credit the - just how dedicated this team is of satisfying every customer. But I think there's an optimal level that's a little higher than we have right now.

Yeah, I just think you're being sort of too apologetic. And the ingenuity you're forcing on the whole chain is actually driving a better outcome you've ever had before. And it just seems like you're doing in some ways, you've reinforced, the value chain is being forced in doing the right thing. And you're that ingenuity should continue. And it sounds like you're keeping that up. But I mean, I just think rebuilding the inventory too much might be not exactly the right answer.

So John just to be clear, we won't over build inventory to be crystal clear. And we will keep the ingenuity, the tools - I mean because it's better for everybody. It's better for the car company, it's better for the dealer.

Absolutely. Yeah. I mean it's just a much better outcome right now. Second question, Mary, you're talking about 30 new EVs by 2025. Globally, two thirds of those will be in North America. So horseshoes and hand grenades by my dumb guys map that's about 20, maybe a little bit more. What ICE vehicles are still going to be launched between now and 2025? It seems like almost everything that would be launched in North America between now and 2025 would be EVs that you're saying right here. Are there any ICE vehicles that are notable that we should think about between now and then?

Well, John, I'm not going to give you the full product cadence between now and '25. I'm sure you went along with everyone on the call. But there's some important products coming as we look at making sure on our franchise products that we are leading from an industry perspective and continuing to delight those customers. But what I will say is, I think what's important with the investments that we've made over the last five to seven years with new platforms from an ICE perspective, whether it's small, mid, and then full-size trucks, SUVs we don't have to make huge investments in architectures, it's mainly making sure those products are going to win in the marketplace from a customer facing perspective. And that's where we'll be focused on between now - frankly, now and 2035, when our aspiration is to sell all EVs from a light duty perspective.

Okay, that's helpful. And then just last scenario, on Slide 7, you went from OPM Bright Drop Cruise, charging infrastructure, a bunch of other stuff. There's nothing in there when you're talking about it seems like fluff at all, and all seems very, very real. How do you keep track of like the capital invested, the returns and the profits on all of these new growth initiatives? Because like you said, nothing seems like fluff, it all seems very real. It's not just any PowerPoint stuff, you guys are throwing up. How do you keep track of that? And then maybe sort of the follow on to that, when you think about Dubai, and 4000 cruise origins floating around, I don't know if you can even sketch the economics for us of what that means. I mean, I would guess that's a few 100 million dollars of EBIT that would be sticky and not volatile, like the rest of - or not a lot more or less volatile than the rest of the company. But I mean, how are you keeping track of all this stuff? How are things measured and then maybe some idea of what the Dubai economics look like?

Well, we have a really good CFO. And I mean that in all seriousness John, because you're right, and you look at Page 7 or you look at Page 6, but you look at everything in our deck, they are all real. And we have a long-term plan and a short-term plan, and everyone has to earn its place to get whether it's engineering, IT or capital allocated to it. So we have a very rigorous process. So rest assured that this is not PowerPoint, these are real initiatives that are being executed on an accelerated fashion. As it relates to Dubai, I mean, I think it highlights the fact that as we grow, not only in Dubai, but in other cities across the United States, across North America and across the world, we're uniquely positioned in the AV space, because we have the ability to produce those vehicles, I mean, we're already tooling up the origin to be produced at Factory ZERO. So that's a huge opportunity for us and to your point, that's going to drive to the bottom line. So I'm very excited about the future growth opportunities that we have with Cruise, what the production of the vehicles will do for that. But then with all these additional, whether they're going into other markets, like we can leverage with Ultium, expanding in a market we don't really operate that much in right now from a commercial vehicle perspective, with EVs, with Bright Drop and beyond with things like OnStar Insurance and subscriptions for things like Super Cruise. So that's why I'm so confident of our growth capability.

John, off the record, I agree with everything Mary said except this point on the CFO.

She's just saying that because you're there, Paul. I'm just kidding.

Clearly.

The - on Dubai, I mean, there are other cities that have like city NV here that Dubai is obviously a great sort of crown jewel to come out there with this. I mean, Mary do you have other cities engaging or reaching out to it? Because I mean, it just, it just seems like that's something that everybody - New York and San Fran, everybody's going to be like, hey, what Dubai is doing in a week, we have to do it, too. I mean, are there other indications of interest that are popping up?

Yeah, I'm not going to get specific, but there definitely is interest in other parts of the world. And I think there's going to be a lot of opportunity in the United States alone.

Okay. All right. Thank you very much, guys.

Thank you, John.

Your next question comes from the line of Joseph Spak with RBC Capital Markets.

Thanks. Good morning everyone. Paul. I fully appreciate and you said this timing is difficult given everything going on in the industry, but you did say the first quarter came in better. So I guess the implication is that very little of that semi-impact that you call that for the year happened in first quarter, and then you've always called second quarter worse, but it does seem like maybe it's a little bit worse than a few months ago. So at least that's the impression I got. And since you didn't give more clear color on implied second quarter, I think what would really help investors here is if you could compare that second quarter production maybe versus expectations at the beginning of the year? And as we go forward for the rest of the year, you mentioned GMF is better. We saw that in the guidance, but what - and you mentioned pricing, but what are you I guess specifically assuming? Or how are you thinking about modeling pricing to offset things like higher commodities?

So thanks for that question, Joe. I think I'd go back to the fact that this is obviously a very dynamic situation. I would say in all honesty that Q2 is probably worse than we expected, it was going to be a few months ago. But that's due in part to some of the timing of how we map this out. So what I would say is that we are carefully evaluating the short-term supply chain, the intermediate term supply chain, and some of the longer-term issues as well. So depending on the confidence of where we see chips coming in and which chips and our ability to reallocate those and reprioritize those. We did see an opportunity to accelerate some production into Q1 to take advantage of the market that we see right now, which is obviously very, very strong and the confidence to be able to make up some of that volume in Q2. So that's why I think we need to be really cautious as we're thinking about the full year. What gives us the confidence is the agility that the team has displayed and being able to respond to this and, how dynamic it really is. So part of the reason we don't want to anchor in on production volumes and so on is it just because that's going to change, it's going to change next week, it's going to change the week after, sometimes it's better, sometimes it's worse. So it's really trying to operate in at this level of where we need to take go-to-market strategies, where we need to prioritize mix, where we need to accelerate or potentially shut down a plant in anticipation of some challenges that are coming up over the short to medium term, then that's kind of what we're doing. You saw that going into plant downtime in Q1. So I wouldn't say that Q1 was immune from the semiconductor challenges. I think, certainly the consumer has proven to be very robust. Used car values continue to go up, which I think is endemic of the inventory challenges that we see across the board and that everybody sees. So all of that is just is working in concert, into what I would say is a very agile plan for us to meet our objectives. It's also why we were trying to steer this to the first half versus Q1 and Q2. So there isn't a - there isn't necessarily a read through in the short-term because something that happens in March versus something that happens in April isn't really all that relevant to how we're thinking about managing through this. And that's why when we have the confidence of looking at where first half expectations were, despite the disparity between Q1 and Q2, we actually think that we're performing ahead of expectations that were outlined at the beginning of the year. We just want to be cautious about that in the back half. That makes sense.

Yeah, no doubt, but so is it fair to assume that embedded within that the second half versus first half pricing does take stuff down?

No, I don't necessarily think that's the case. I think the environment is what it is. And that's kind of what puts us in that 5.5 billion ish type EBIT-adjusted for the first half of the year. But the environment has remained strong. In some cases, it's gotten even stronger through the year. So we're meant to capitalize on that wherever we can. But I don't see in our second quarter, any sort of immediate changes to the pricing environment that we've seen today.

Okay. And Mary, you mentioned the relationship with Honda on purchasing R&D and connected services again. That MLU was announced, I think, like eight months ago, any indication now like what type of savings you can expect from that to deliver over time?

We're not going to frame that right now. I will tell you it's a very productive relationship and partnership and we continue to work so as we identify and want to frame those opportunities. There's more, there's more to come, but nothing to share today.

Thank you very much.

Your next question comes from the line of Adam Jonas with Morgan Stanley.

Hey, Everybody. Hi, Mary. Hey, Paul. So for every adoption there is a de-adoption. And there seems to be clearly this war against ICE waged by governments, by consumers, regulators, right and then lately OEMs waging their own war against ICE. And when I talk to car companies and management teams like you on the topic of potential write downs or impairments, I asked that because many of these investments of course that you've made in ICE go a decade or more, 15 maybe even close to 20 years for in some instances. And so I - maybe it's too soon, but I'd love to get your view on when along this journey away from ice would it be appropriate as you sit down with your auditors to think about curtailment of useful life and that impact the financial impact? Because it could really change your results and I think it's pretty relevant. If I'm wrong, tell me how I'm wrong because I'm scratching my head thinking, how do you avoid at some point is it just you're making too much damn money selling an ICE stuff right now. And it's just that the fit isn't right. And we need to wait for things to get worse. Help me out there on the impairment potential over time. I'm not asking - it's not a 2021 issue, but as we look out.

So Adam, a couple things, when you said for every EV adoption there's a de-adoption. For General Motors, I think this is a growth opportunity for us. Because there's a lot of EV interest on the coast, that's where we don't get what I would call our fair share. And frankly, I'm going after more than our fair share on the strength of our product portfolio. So that's point one, we see this as a growth opportunity, not only in the US and markets we're in, but in growing into other markets we're currently not participating in. I would also say with the assets that we have right now, when you look at converting a plant from a plant that builds ICE vehicles to those that produce electric vehicles, there's a lot of reuse. Body shop structures or machinery and equipment, the paint shop, which is a 30-to-35-year asset, doesn't care if it's paint, what the propulsion system is in the vehicle that we're going to be painting. And so there's a lot of capital that can be reused as we go forward. I would also say with every new internal combustion engine propelled vehicle that we put out; we're looking to make it better for the environment from a fuel economy emissions CO2 perspective. And I also think you have to look at the fact that right now, battery costs are coming down. But look at what's in the marketplace right now. I think we're really one of the only people that have an all electric vehicle that's as affordable as the Bolt EV, we've got to make sure as we move to an all electric future that it truly is for everyone. So that's more than an advertising tagline. That's something that General Motors is very much committed to making sure everybody - because ESG has an S in the middle of it, which is making sure we're doing the right thing for everyone. So I think we're moving at a very quick speed to be able to provide EVs for everyone. I think it's going to be a growth opportunity for General Motors. And I think a lot of the assets that we currently have can be reused in an all EV world.

Thanks, Mary, I have a very quick follow up, and then we're going to - I'll shut up on Super Cruise. I see on Slide 8, you had talked about it being available on 22 models in a couple of years. Can you tell us what is the attach rate of Super Cruise on the models were available? I think that's probably a more relevant metric. And maybe where that was a year ago. So we can get some sense of the attach rate and the growth penetration year-on-year because this is emerging as really, I think potentially a very, very interesting part of the story. And a little extra transparency there I think will go a long way. Thanks.

Yeah. So Adam, on that I get your point. And I think it's a good question. I think when you look at - the customer - customers who have experienced Super Cruise love it. You've heard the 85% say they either wouldn't buy a vehicle without it or they'd strongly desire it to be on their next vehicle. But in that move to have 22 models by 2023, we're in the very early ramp because it's going to happen quickly. And so the Bolt EV, the Cadillac Escalade. So I think we'll have more to share with you as we go forward. But again, this is one of these technologies that you have to experience it just to understand how phenomenal that it is. And that's why I think having the ability to do it in a subscription model as opposed to having to make the decision on day one, I think is going to be very, very important. So we can be transparent and share more of that information as we go forward. It's a little early right now with the ramp up that we have.

Alright Mary thanks.

Our last question comes from the line of Ryan Brinkman with JP Morgan.

Hi thanks for taking my question, which is also on Super Cruise. Are you able to describe in more detail the driver attention system on Super Cruise? What steps have you taken to ensure that drivers remain engaged and always keep their eyes on the road, either in terms of educating the consumer about the capabilities and limitations of the system, or putting in place different technological safeguards, including I'm not sure any measures to prevent consumers from attempting to override your safeguards.

So we're very dedicated to this. And the team has worked really hard on this technology, but we're literally watching to make sure that the driver is paying attention to the road. And if the system sees that you're not, it indicates and it kind of is reminding you to pay attention to pay attention. And if you continue to not pay attention, it shuts down. And so I think it's - that I think one of the reasons it's been recognized as a leading driver assist technology. So I think the best thing to do is get you into a vehicle seat and experience it, because it's quite effective.

Very helpful and lastly, as a follow up, I see on Slide 21, that you will provide additional insight into software and services at the event later this year. Are you able to maybe share at a high level now how you're sort of thinking about the potential materiality over time of after sales software and services, including subscription services, such as Super Cruise? And I know OnStar is very strong in China, do you offer or plan to offer Super Cruise outside North America such as in China?

Well, we're looking at - we actually already have and looking at how do we continue to expand that in China. But I would say overall, I don't want to get ahead of myself for what we're going to share on our Investor Day later this year. But I will tell you, it's significant when you look at - OnStar is already fairly significant. The after-sell opportunity OnStar Insurance - new features that we'll be offering that can be subscription based. And we have a whole team at General Motors working on leveraging the strength that we have of the OnStar platform in the vehicle and how we can leverage that, especially with the vehicle intelligence platform as well. So I'm excited to share that story as we come out. And I think we're at the beginning of significant opportunity in that space, so more to come.

Great. Thank you.

Thank you. I'd now like to turn the call over to Mary Barra, for her closing comments.

Well, I want to thank everybody for joining. I couldn't be more pleased with everything that has been accomplished in the first quarter with a lot of headwinds coming at us with the semiconductor challenges and then some of the other natural disasters that impacted the supply chain. But I think it just shows the ingenuity and the creativity and the dedication of our team to find solutions and to work to optimize or mitigate to the extent we can. At the same time the team was doing that we also made significant progress in our transformation from an electric vehicle and autonomous vehicle perspective and some of the new growth opportunities when you look at Bright Drop and OnStar Insurance. So the team has really been working on two fronts a very strategic front while dealing with some of the tactical challenges. And I think we ought to remember is the challenges we have with semiconductors right now are a temporary situation. We will work through that and move beyond it. And it's not impacting our transformation and growth strategies. I I'd also just like to say that, please take a look at the sustainability report that we announced just a little over a week ago. In it, it outlines very clearly our goals and objectives. And we're tried to be transparent and we will provide updates and hold ourselves accountable to the targets and the plans that we've outlined. So again, really appreciate the opportunity to share all the progress at General Motors with you today. I look forward to being able to see everyone in person later in the year when we have our Investor Day. So thanks everyone.

Thanks everyone.

That concludes the conference call for today. Thank you for joining.