Item 1. Condensed Consolidated Financial Statements

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Item 1. Condensed Consolidated Financial Statements

CONDENSED CONSOLIDATED INCOME STATEMENTS

(In millions, except per share amounts) (Unaudited)


	Three Months Ended
		March 31, 2023		March 31, 2022
Net sales and revenue
Automotive		$	36,646	$	32,824
GM Financial		3,339		3,155
Total net sales and revenue (Note 2)		39,985		35,979
Costs and expenses
Automotive and other cost of sales		32,247		29,353
GM Financial interest, operating and other expenses		2,612		1,926
Automotive and other selling, general and administrative expense		2,547		2,504

Total costs and expenses		37,407		33,783
Operating income (loss)		2,578		2,196
Automotive interest expense		234		226
Interest income and other non-operating income, net		409		517

Equity income (loss) (Note 7)		21		292
Income (loss) before income taxes		2,775		2,779
Income tax expense (benefit) (Note 14)		428		(28)


Net income (loss)		2,346		2,807
Net loss (income) attributable to noncontrolling interests		49		131
Net income (loss) attributable to stockholders		$	2,395	$	2,939

Net income (loss) attributable to common stockholders		$	2,369	$	1,987

Earnings per share (Note 17)

Basic earnings per common share		$	1.70	$	1.36
Weighted-average common shares outstanding – basic		1,396		1,458


Diluted earnings per common share		$	1.69	$	1.35
Weighted-average common shares outstanding – diluted		1,402		1,470

Dividends declared per common share		$	0.09	$	—

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In millions) (Unaudited)


	Three Months Ended
		March 31, 2023		March 31, 2022
Net income (loss)		$	2,346	$	2,807
Other comprehensive income (loss), net of tax (Note 16)
Foreign currency translation adjustments and other		148		340
Defined benefit plans		(35)		103
Other comprehensive income (loss), net of tax		113		442
Comprehensive income (loss)		2,460		3,250
Comprehensive loss (income) attributable to noncontrolling interests		58		145
Comprehensive income (loss) attributable to stockholders		$	2,518	$	3,394

Reference should be made to the notes to condensed consolidated financial statements.

Amounts may not add due to rounding.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions, except per share amounts) (Unaudited)


	March 31, 2023		December 31, 2022
ASSETS
Current Assets
Cash and cash equivalents	$	18,227	$	19,153
Marketable debt securities (Note 3)	9,981		12,150

Accounts and notes receivable, net of allowance of $261 and $260	13,702		13,333
GM Financial receivables, net of allowance of $801 and $869 (Note 4; Note 8 at VIEs)	32,283		33,623
Inventories (Note 5)	17,758		15,366

Other current assets (Note 3; Note 8 at VIEs)	6,881		6,825
Total current assets	98,832		100,451
Non-current Assets

GM Financial receivables, net of allowance of $1,351 and $1,227 (Note 4; Note 8 at VIEs)	43,582		40,591
Equity in net assets of nonconsolidated affiliates (Note 7)	10,542		10,176
Property, net	46,895		45,248
Goodwill and intangible assets, net	4,968		4,945
Equipment on operating leases, net (Note 6; Note 8 at VIEs)	31,848		32,701
Deferred income taxes	20,676		20,539
Other assets (Note 3; Note 8 at VIEs)	9,661		9,386
Total non-current assets	168,173		163,586
Total Assets	$	267,004	$	264,037

LIABILITIES AND EQUITY
Current Liabilities
Accounts payable (principally trade)	$	28,931	$	27,486
Short-term debt and current portion of long-term debt (Note 9)
Automotive	425		1,959
GM Financial (Note 8 at VIEs)	36,585		36,819
Accrued liabilities	24,244		24,910
Total current liabilities	90,185		91,173
Non-current Liabilities
Long-term debt (Note 9)
Automotive	15,929		15,885
GM Financial (Note 8 at VIEs)	61,482		60,036
Postretirement benefits other than pensions (Note 12)	4,162		4,193
Pensions (Note 12)	5,697		5,698
Other liabilities	15,318		14,767
Total non-current liabilities	102,588		100,579
Total Liabilities	192,773		191,752
Commitments and contingencies (Note 13)
Noncontrolling interest - Cruise stock incentive awards	271		357
Equity (Note 16)
Common stock, $0.01 par value	14		14
Additional paid-in capital	26,323		26,428
Retained earnings	51,318		49,251
Accumulated other comprehensive loss	(7,778)		(7,901)
Total stockholders’ equity	69,877		67,792
Noncontrolling interests	4,084		4,135
Total Equity	73,961		71,927
Total Liabilities and Equity	$	267,004	$	264,037

Reference should be made to the notes to condensed consolidated financial statements.

Amounts may not add due to rounding.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions) (Unaudited)


	Three Months Ended
	March 31, 2023		March 31, 2022
Cash flows from operating activities
Net income (loss)	$	2,346	$	2,807
Depreciation and impairment of Equipment on operating leases, net	1,241		1,223
Depreciation, amortization and impairment charges on Property, net	1,571		1,668
Foreign currency remeasurement and transaction (gains) losses	135		56

Undistributed earnings of nonconsolidated affiliates, net	(61)		(274)
Pension contributions and OPEB payments	(236)		(213)
Pension and OPEB income, net	(20)		(300)

Provision (benefit) for deferred taxes	46		(81)
Change in other operating assets and liabilities	(1,936)		(2,784)




Net cash provided by (used in) operating activities	3,086		2,104
Cash flows from investing activities
Expenditures for property	(2,431)		(1,661)
Available-for-sale marketable securities, acquisitions	(643)		(3,451)

Available-for-sale marketable securities, liquidations	2,947		1,960






Purchases of finance receivables, net	(8,963)		(8,189)
Principal collections and recoveries on finance receivables	7,282		6,845
Purchases of leased vehicles, net	(3,154)		(2,990)
Proceeds from termination of leased vehicles	3,264		3,732
Other investing activities	(563)		(154)


Net cash provided by (used in) investing activities	(2,262)		(3,909)
Cash flows from financing activities
Net increase (decrease) in short-term debt	(167)		722
Proceeds from issuance of debt (original maturities greater than three months)	11,487		10,685
Payments on debt (original maturities greater than three months)	(12,127)		(10,827)
Payments to purchase common stock	(369)		—
Issuance (redemption) of subsidiary stock (Note 16)	—		(2,124)
Dividends paid	(185)		(73)
Other financing activities	(324)		(235)


Net cash provided by (used in) financing activities	(1,685)		(1,852)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	54		93
Net increase (decrease) in cash, cash equivalents and restricted cash	(807)		(3,564)
Cash, cash equivalents and restricted cash at beginning of period	21,948		23,542
Cash, cash equivalents and restricted cash at end of period	$	21,141	$	19,978








Significant Non-cash Investing and Financing Activity
Non-cash property additions	$	3,041	$	1,931

Reference should be made to the notes to condensed consolidated financial statements.

Amounts may not add due to rounding.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(In millions) (Unaudited)


	Common Stockholders’											Noncontrolling Interests		Total Equity (Permanent Equity)		Noncontrolling Interest Cruise Stock Incentive Awards (Temporary Equity)
Common Stock			Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Loss
Balance at January 1, 2022	$	15		$	27,061		$	41,937		$	(9,269)	$	6,071	$	65,815	$	—

Net income (loss)	—			—			2,939			—		(131)		2,807		—
Other comprehensive income (loss)	—			—			—			456		(13)		442		—
Issuance (redemption) of subsidiary stock (Note 16)	—			—			(909)			—		(1,215)		(2,124)		—

Stock based compensation	—			(31)			(1)			—		—		(32)		289

Dividends to noncontrolling interests	—			—			(12)			—		(1)		(14)		—
Other	—			(15)			(74)			—		(31)		(120)		—
Balance at March 31, 2022	$	15		$	27,015		$	43,879		$	(8,814)	$	4,679	$	66,774	$	289












































Balance at January 1, 2023	$	14		$	26,428		$	49,251		$	(7,901)	$	4,135	$	71,927	$	357


Net income (loss)	—			—			2,395			—		(49)		2,346		—
Other comprehensive income (loss)	—			—			—			123		(9)		113		—

Purchase of common stock	—			(168)			(201)			—		—		(369)		—
Stock based compensation	—			(34)			(2)			—		—		(35)		7
Cash dividends paid on common stock	—			—			(126)			—		—		(126)		—

Other	—			97			—			—		7		103		(93)
Balance at March 31, 2023	$	14		$	26,323		$	51,318		$	(7,778)	$	4,084	$	73,961	$	271

Reference should be made to the notes to condensed consolidated financial statements.

Amounts may not add due to rounding.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Nature of Operations and Basis of Presentation

General Motors Company (sometimes referred to in this Quarterly Report on Form 10-Q as we, our, us, ourselves, the Company, General Motors or GM) designs, builds and sells trucks, crossovers, cars and automobile parts and provides software-enabled services and subscriptions worldwide. Additionally, we are investing in and growing an autonomous vehicle (AV) business. We also provide automotive financing services through General Motors Financial Company, Inc. (GM Financial). We analyze the results of our operations through the following segments: GM North America (GMNA), GM International (GMI), Cruise, and GM Financial. Cruise is our global segment responsible for the development and commercialization of AV technology. Nonsegment operations are classified as Corporate. Corporate includes certain centrally recorded income and costs such as interest, income taxes, corporate expenditures and certain nonsegment-specific revenues and expenses.

The condensed consolidated financial statements are prepared in conformity with U.S. GAAP pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) for interim financial information. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. The condensed consolidated financial statements include all adjustments, which consist of normal recurring adjustments and transactions or events discretely impacting the interim periods, considered necessary by management to fairly state our results of operations, financial position and cash flows. The operating results for interim periods are not necessarily indicative of results that may be expected for any other interim period or for the full year. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our 2022 Form 10-K. Except for per share amounts or as otherwise specified, amounts presented within tables are stated in millions. Certain columns and rows may not add due to rounding.

Throughout this report, we refer to General Motors Company and its consolidated subsidiaries in a simplified manner and on a collective basis, using words like "we," "our," "us" and "the Company." This drafting style is suggested by the SEC and is not meant to indicate that General Motors Company, the publicly traded parent company, or any particular subsidiary of the parent company, owns or operates any particular asset, business or property. The operations and businesses described in this report are owned and operated by distinct subsidiaries of General Motors Company.

Principles of Consolidation We consolidate entities that we control due to ownership of a majority voting interest and we consolidate variable interest entities (VIEs) when we are the primary beneficiary. All intercompany balances and transactions are eliminated in consolidation. Our share of earnings or losses of nonconsolidated affiliates is included in our consolidated operating results using the equity method of accounting when we are able to exercise significant influence over the operating and financial decisions of the affiliate.

GM Financial The amounts presented for GM Financial are adjusted to reflect the impact on GM Financial's deferred tax positions and provision for income taxes resulting from the inclusion of GM Financial in our consolidated tax return and to eliminate the effect of transactions between GM Financial and the other members of the consolidated group. Accordingly, the amounts presented will differ from those presented by GM Financial on a stand-alone basis.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)

Note 2. Revenue

The following table disaggregates our revenue by major source:



	Three Months Ended March 31, 2023
	GMNA		GMI		Corporate		Total Automotive		Cruise		GM Financial		Eliminations/Reclassifications		Total
Vehicle, parts and accessories	$	31,876	$	3,342	$	9	$	35,227	$	—	$	—	$	—	$	35,227
Used vehicles	175		5		—		180		—		—		—		180
Services and other	837		380		22		1,239		25		—		(25)		1,239
Automotive net sales and revenue	32,889		3,727		31		36,646		25		—		(25)		36,646
Leased vehicle income	—		—		—		—		—		1,818		—		1,818
Finance charge income	—		—		—		—		—		1,368		(3)		1,366
Other income	—		—		—		—		—		156		(1)		155
GM Financial net sales and revenue	—		—		—		—		—		3,343		(4)		3,339
Net sales and revenue	$	32,889	$	3,727	$	31	$	36,646	$	25	$	3,343	$	(29)	$	39,985



	Three Months Ended March 31, 2022
	GMNA		GMI		Corporate		Total Automotive		Cruise		GM Financial		Eliminations/ Reclassifications		Total
Vehicle, parts and accessories	$	28,572	$	3,014	$	5	$	31,591	$	—	$	—	$	—	$	31,591
Used vehicles	75		5		—		80		—		—		—		80
Services and other	809		295		48		1,152		26		—		(25)		1,153
Automotive net sales and revenue	29,456		3,313		53		32,823		26		—		(25)		32,824
Leased vehicle income	—		—		—		—		—		2,066		—		2,066
Finance charge income	—		—		—		—		—		1,010		—		1,010
Other income	—		—		—		—		—		80		(1)		79
GM Financial net sales and revenue	—		—		—		—		—		3,156		(1)		3,155
Net sales and revenue	$	29,456	$	3,313	$	53	$	32,823	$	26	$	3,156	$	(26)	$	35,979

Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. Adjustments to sales incentives for previously recognized sales increased revenue by an insignificant amount in the three months ended March 31, 2023 and 2022.

Contract liabilities in our Automotive segments primarily consist of maintenance, extended warranty and other service contracts of $4.0 billion and $3.3 billion at March 31, 2023 and December 31, 2022, which are included in Accrued liabilities and Other liabilities. We recognized revenue of $408 million and $444 million related to contract liabilities in the three months ended March 31, 2023 and 2022. We expect to recognize revenue of $1.2 billion in the nine months ending December 31, 2023 and $989 million, $750 million and $1.1 billion in the years ending December 31, 2024, 2025 and thereafter related to contract liabilities at March 31, 2023.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)

Note 3. Marketable and Other Securities

The following table summarizes the fair value of cash equivalents and marketable debt securities, which approximates cost:


	Fair Value Level	March 31, 2023		December 31, 2022
Cash and cash equivalents
Cash and time deposits		$	9,521	$	8,921
Available-for-sale debt securities
U.S. government and agencies	2	126		1,012
Corporate debt	2	1,712		2,778
Sovereign debt	2	823		1,828
Total available-for-sale debt securities – cash equivalents		2,661		5,618
Money market funds	1	6,045		4,613
Total cash and cash equivalents(a)		$	18,227	$	19,153
Marketable debt securities

U.S. government and agencies	2	$	4,174	$	4,357
Corporate debt	2	4,375		5,147
Mortgage and asset-backed	2	552		538
Sovereign debt	2	880		2,108
Total available-for-sale debt securities – marketable securities(b)		$	9,981	$	12,150
Restricted cash
Cash and cash equivalents		$	335	$	341
Money market funds	1	2,579		2,455
Total restricted cash		$	2,914	$	2,796

Available-for-sale debt securities included above with contractual maturities(c)
Due in one year or less		$	6,079
Due between one and five years		5,901
Total available-for-sale debt securities with contractual maturities		$	11,979

(a)Includes $1.9 billion and $1.5 billion in Cruise at March 31, 2023 and December 31, 2022.

(b)Includes $612 million and $1.4 billion in Cruise at March 31, 2023 and December 31, 2022.

(c)Excludes mortgage and asset-backed securities of $552 million at March 31, 2023 as these securities are not due at a single maturity date.

Proceeds from the sale of available-for-sale debt securities sold prior to maturity were $380 million and $464 million in the three months ended March 31, 2023 and 2022. Net unrealized gains and losses on available-for-sale debt securities were insignificant in the three months ended March 31, 2023 and 2022. Cumulative unrealized losses on available-for-sale debt securities were $275 million and $344 million at March 31, 2023 and December 31, 2022.

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets to the total shown in the condensed consolidated statement of cash flows:


	March 31, 2023
Cash and cash equivalents	$	18,227
Restricted cash included in Other current assets	2,467
Restricted cash included in Other assets	447
Total	$	21,141

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)

Note 4. GM Financial Receivables and Transactions


	March 31, 2023						December 31, 2022
	Retail		Commercial(a)		Total		Retail		Commercial(a)		Total


GM Financial receivables, net of fees	$	67,704	$	10,313	$	78,017	$	65,322	$	10,988	$	76,310
Less: allowance for loan losses	(2,123)		(29)		(2,152)		(2,062)		(34)		(2,096)
GM Financial receivables, net	$	65,581	$	10,283	$	75,865	$	63,260	$	10,954	$	74,214

Fair value of GM Financial receivables utilizing Level 2 inputs					$	10,283					$	10,954
Fair value of GM Financial receivables utilizing Level 3 inputs					$	65,165					$	62,150

(a)Net of dealer cash management balances of $2.2 billion and $1.9 billion at March 31, 2023 and December 31, 2022. Under the cash management program, subject to certain conditions, a dealer may choose to reduce the amount of interest on its floorplan line by making principal payments to GM Financial in advance.


	Three Months Ended
		March 31, 2023		March 31, 2022
Allowance for loan losses at beginning of period		$	2,096	$	1,886

Provision for loan losses		131		122
Charge-offs		(322)		(275)
Recoveries		187		177
Effect of foreign currency and other		61		18
Allowance for loan losses at end of period		$	2,152	$	1,928

Retail Finance Receivables GM Financial's retail finance receivable portfolio includes loans made to consumers and businesses to finance the purchase of vehicles for personal and commercial use. The following tables are consolidated summaries of the retail finance receivables by FICO score or its equivalent, determined at origination, for each vintage of the retail finance receivables portfolio at March 31, 2023 and December 31, 2022:


	Year of Origination												March 31, 2023
	2023		2022		2021		2020		2019		Prior		Total		Percent
Prime – FICO score 680 and greater	$	6,996	$	20,633	$	12,223	$	7,149	$	1,915	$	914	$	49,829	73.6	%
Near-prime – FICO score 620 to 679	832		3,012		2,389		1,345		599		322		8,498		12.6	%
Sub-prime – FICO score less than 620	835		3,054		2,525		1,443		916		603		9,377		13.8	%
Retail finance receivables, net of fees	$	8,663	$	26,699	$	17,138	$	9,936	$	3,429	$	1,839	$	67,704	100.0	%


	Year of Origination												December 31, 2022
	2022		2021		2020		2019		2018		Prior		Total		Percent
Prime – FICO score 680 and greater	$	22,677	$	13,399	$	7,991	$	2,254	$	1,019	$	205	$	47,543	72.8	%
Near-prime – FICO score 620 to 679	3,202		2,601		1,487		688		310		104		8,392		12.8	%
Sub-prime – FICO score less than 620	3,211		2,746		1,604		1,051		496		280		9,388		14.4	%
Retail finance receivables, net of fees	$	29,090	$	18,745	$	11,081	$	3,992	$	1,824	$	589	$	65,322	100.0	%

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)

GM Financial reviews the ongoing credit quality of retail finance receivables based on customer payment activity. A retail account is considered delinquent if a substantial portion of a scheduled payment has not been received by the date the payment was contractually due. Retail finance receivables are collateralized by vehicle titles and, subject to local laws, GM Financial generally has the right to repossess the vehicle in the event the customer defaults on the payment terms of the contract. The accrual of finance charge income had been suspended on delinquent retail finance receivables with contractual amounts due of $585 million and $685 million at March 31, 2023 and December 31, 2022. The following tables are consolidated summaries of the amortized cost of retail finance receivables by delinquency status, for each vintage of the portfolio at March 31, 2023 and December 31, 2022, as well as summary totals for March 31, 2022:


	Year of Origination												March 31, 2023				March 31, 2022
	2023		2022		2021		2020		2019		Prior		Total		Percent		Total		Percent
0-to-30 days	$	8,646	$	26,262	$	16,648	$	9,640	$	3,236	$	1,676	$	66,109	97.6	%	$	58,179	97.8	%
31-to-60 days	17		316		363		222		146		124		1,188		1.8	%	983		1.7	%
Greater-than-60 days	1		104		112		68		43		36		363		0.5	%	302		0.5	%
Finance receivables more than 30 days delinquent	17		420		475		290		190		160		1,551		2.3	%	1,285		2.2	%
In repossession	—		17		15		6		3		2		44		0.1	%	39		0.1	%
Finance receivables more than 30 days delinquent or in repossession	17		437		489		296		193		162		1,595		2.4	%	1,324		2.2	%
Retail finance receivables, net of fees	$	8,663	$	26,699	$	17,138	$	9,936	$	3,429	$	1,839	$	67,704	100.0	%	$	59,503	100.0	%


	Year of Origination												December 31, 2022
	2022		2021		2020		2019		2018		Prior			Total		Percent
0-to-30 days	$	28,676	$	18,128	$	10,702	$	3,743	$	1,685	$	493		$	63,426	97.1	%
31-to-60 days	310		452		275		184		103		69			1,393		2.1	%
Greater-than-60 days	93		150		98		62		35		26			465		0.7	%
Finance receivables more than 30 days delinquent	403		603		373		246		138		95			1,857		2.8	%
In repossession	11		14		6		4		2		1			39		0.1	%
Finance receivables more than 30 days delinquent or in repossession	414		617		380		249		140		96			1,896		2.9	%
Retail finance receivables, net of fees	$	29,090	$	18,745	$	11,081	$	3,992	$	1,824	$	589		$	65,322	100.0	%

Commercial Finance Receivables GM Financial's commercial finance receivables consist of dealer financings, primarily for inventory purchases. Proprietary models are used to assign a risk rating to each dealer. GM Financial performs periodic credit reviews of each dealership and adjusts the dealership's risk rating, if necessary. There were no commercial finance receivables on nonaccrual status at March 31, 2023.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)

GM Financial's commercial risk model and risk rating categories are as follows:


Rating						Description
I						Performing accounts with strong to acceptable financial metrics with at least satisfactory capacity to meet financial commitments.
II						Performing accounts experiencing potential weakness in financial metrics and repayment prospects resulting in increased monitoring.
III						Non-Performing accounts with inadequate paying capacity for current obligations and have the distinct possibility of creating a loss if deficiencies are not corrected.
IV						Non-Performing accounts with inadequate paying capacity for current obligations and inherent weaknesses that make collection of liquidation in full highly questionable or improbable.

Dealers with III and IV risk ratings are subject to additional monitoring and restrictions on funding, including suspension of lines of credit and liquidation of assets. The following tables summarize the credit risk profile by dealer risk rating of commercial finance receivables at March 31, 2023 and December 31, 2022:


	Year of Origination(a)														March 31, 2023
	Revolving		2023		2022		2021		2020		2019		Prior		Total		Percent
I	$	8,823	$	71	$	435	$	336	$	338	$	87	$	42	$	10,133	98.3	%
II	94		—		—		1		—		—		—		96		0.9	%
III	59		—		15		—		—		10		—		84		0.8	%
IV	—		—		—		—		—		—		—		—		—	%
Commercial finance receivables, net of fees	$	8,976	$	71	$	450	$	338	$	338	$	97	$	42	$	10,313	100.0	%

(a)Floorplan advances comprise 96% of the total revolving balance. Dealer term loans are presented by year of origination.


	Year of Origination(a)														December 31, 2022
	Revolving		2022		2021		2020		2019		2018		Prior			Total		Percent
I	$	9,493	$	438	$	356	$	360	$	91	$	38	$	18		$	10,794	98.2	%
II	89		—		1		—		—		—		—			91		0.8	%
III	78		15		—		—		10		—		—			104		0.9	%
IV	—		—		—		—		—		—		—			—		—	%
Commercial finance receivables, net of fees	$	9,660	$	453	$	357	$	360	$	102	$	38	$	18		$	10,988	100.0	%

(a)Floorplan advances comprise 97% of the total revolving balance. Dealer term loans are presented by year of origination.

Transactions with GM Financial The following table shows transactions between our Automotive segments and GM Financial. These amounts are presented in GM Financial's condensed consolidated balance sheets and statements of income.


	March 31, 2023		December 31, 2022
Condensed Consolidated Balance Sheets(a)
Commercial finance receivables, net due from GM consolidated dealers	$	163	$	187
Receivables from Cruise	$	151	$	113
Subvention receivable(b)	$	594	$	469

Commercial loan funding payable	$	72	$	105

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)


	Three Months Ended
		March 31, 2023		March 31, 2022
Condensed Consolidated Statements of Income
Interest subvention earned on finance receivables		$	279	$	221
Leased vehicle subvention earned		$	393	$	547

(a)All balance sheet amounts are eliminated upon consolidation.

(b)Our Automotive segments made cash payments to GM Financial for subvention of $749 million and $439 million in the three months ended March 31, 2023 and 2022.

GM Financial's Board of Directors declared and paid dividends of $450 million on its common stock in the three months ended March 31, 2023.

Note 5. Inventories


	March 31, 2023		December 31, 2022
Total productive material, supplies and work in process	$	8,822	$	8,014
Finished product, including service parts	8,935		7,353
Total inventories	$	17,758	$	15,366

Note 6. Equipment on Operating Leases

Equipment on operating leases consists of leases to retail customers of GM Financial.


	March 31, 2023		December 31, 2022
Equipment on operating leases	$	39,991	$	40,919
Less: accumulated depreciation	(8,143)		(8,218)
Equipment on operating leases, net	$	31,848	$	32,701

The estimated residual value of our leased assets at the end of the lease term was $24.1 billion and $24.7 billion at March 31, 2023 and December 31, 2022.

Depreciation expense related to Equipment on operating leases, net was $1.2 billion in the three months ended March 31, 2023 and 2022.

The following table summarizes lease payments due to GM Financial on leases to retail customers:


	Year Ending December 31,
	2023		2024		2025		2026		2027		Thereafter		Total
Lease receipts under operating leases	$	3,807	$	3,293	$	1,505	$	243	$	8	$	—	$	8,855

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)

Note 7. Equity in Net Assets of Nonconsolidated Affiliates

Nonconsolidated affiliates are entities in which we maintain an equity ownership interest and for which we use the equity method of accounting due to our ability to exert significant influence over decisions relating to their operating and financial affairs. Revenue and expenses of our joint ventures are not consolidated into our financial statements; rather, our proportionate share of the earnings of each joint venture is reflected as Equity income (loss) or Automotive and other cost of sales.


	Three Months Ended
		March 31, 2023		March 31, 2022
Automotive China equity income (loss)		$	83	$	234
Other joint ventures equity income (loss)(a)		(8)		59
Total Equity income (loss)		$	75	$	292

(a)Equity earnings related to Ultium Cells Holdings LLC are presented in Automotive and other cost of sales as this entity is integral to the operations of our business by providing battery cells for our electric vehicles (EVs). In the three months ended March 31, 2023, equity earnings related to Ultium Cells Holdings LLC were insignificant.

There have been no significant ownership changes in our Automotive China joint ventures (Automotive China JVs) since December 31, 2022.


	Three Months Ended
		March 31, 2023		March 31, 2022
Summarized Operating Data of Automotive China JVs
Automotive China JVs' net sales		$	5,833	$	8,992
Automotive China JVs' net income (loss)		$	123	$	505

Dividends declared but not paid from our nonconsolidated affiliates were insignificant at March 31, 2023 and December 31, 2022. Dividends received from our nonconsolidated affiliates were insignificant in the three months ended March 31, 2023 and 2022. Undistributed earnings from our nonconsolidated affiliates were $2.0 billion and $1.9 billion at March 31, 2023 and December 31, 2022.

Note 8. Variable Interest Entities

Consolidated VIEs

Automotive Financing – GM Financial

GM Financial uses special purpose entities (SPEs) that are considered VIEs to issue variable funding notes to third party, bank-sponsored warehouse facilities or asset-backed securities to investors in securitization transactions. The debt issued by these VIEs is backed by finance receivables and leasing-related assets transferred to the VIEs (Securitized Assets). GM Financial determined that it is the primary beneficiary of the SPEs because the servicing responsibilities for the Securitized Assets give GM Financial the power to direct the activities that most significantly impact the performance of the VIEs and the variable interests in the VIEs give GM Financial the obligation to absorb losses and the right to receive residual returns that could potentially be significant. The assets of the VIEs serve as the sole source of repayment for the debt issued by these entities. Investors in the notes issued by the VIEs do not have recourse to GM Financial or its other assets, with the exception of customary representation and warranty repurchase provisions and indemnities that GM Financial provides as the servicer. GM Financial is not required to provide additional financial support to these SPEs. While these subsidiaries are included in GM Financial's condensed consolidated financial statements, they are separate legal entities and the finance receivables, lease-related assets and cash held by them are legally owned by them and are not available to GM Financial's creditors or creditors of GM Financial's other subsidiaries.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)

The following table summarizes the assets and liabilities related to GM Financial's consolidated VIEs:


	March 31, 2023		December 31, 2022
Restricted cash – current	$	2,271	$	2,176
Restricted cash – non-current	$	367	$	360
GM Financial receivables, net of fees – current	$	17,968	$	19,896
GM Financial receivables, net of fees – non-current	$	20,031	$	18,748
GM Financial equipment on operating leases, net	$	16,414	$	18,456
GM Financial short-term debt and current portion of long-term debt	$	19,903	$	21,643
GM Financial long-term debt	$	21,410	$	20,545

GM Financial recognizes finance charge, leased vehicle and fee income on the Securitized Assets and interest expense on the secured debt issued in a securitization transaction and records a provision for loan losses to recognize loan losses expected over the remaining life of the finance receivables.

Nonconsolidated VIEs

Automotive

Nonconsolidated VIEs principally include automotive related operating entities to which we provided financial support to ensure that our supply needs for production are met or are not disrupted. Our variable interests in these nonconsolidated VIEs include equity investments, accounts and loans receivable, committed financial support and other off-balance sheet arrangements. The carrying amounts of assets were approximately $1.9 billion and $1.6 billion and liabilities were insignificant related to our nonconsolidated VIEs at March 31, 2023 and December 31, 2022. Our maximum exposure to loss as a result of our involvement with these VIEs was approximately $3.3 billion, inclusive of approximately $1.2 billion and $1.4 billion in committed capital contributions to Ultium Cells Holdings LLC, at March 31, 2023 and December 31, 2022. Our maximum exposure to loss, and required capital contributions, could vary depending on Ultium Cells Holdings LLC's requirements and access to capital. We currently lack the power through voting or similar rights to direct the activities of these entities that most significantly affect their economic performance.

Note 9. Debt

Automotive The following table presents debt in our automotive operations:


	March 31, 2023					December 31, 2022
	Carrying Amount		Fair Value			Carrying Amount		Fair Value
Secured debt	$	134	$	134		$	124	$	123
Unsecured debt(a)	15,799		15,171			17,340		16,323
Finance lease liabilities	421		429			381		381
Total automotive debt(b)	$	16,354	$	15,734		$	17,844	$	16,828

Fair value utilizing Level 1 inputs			$	14,837				$	15,971
Fair value utilizing Level 2 inputs			$	897				$	857


Available under credit facility agreements(c)			$	13,526				$	15,095
Weighted-average interest rate on outstanding short-term debt(d)			9.5		%			6.1		%
Weighted-average interest rate on outstanding long-term debt(d)			5.8		%			5.8		%

(a)Primarily consists of senior notes.

(b)Includes net discount and debt issuance costs of $531 million and $525 million at March 31, 2023 and December 31, 2022.

(c)Excludes our 364-day, $2.0 billion facility allocated for exclusive use by GM Financial.

(d)Includes coupon rates on debt denominated in various foreign currencies and interest free loans.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)

In March 2023, we redeemed our $1.5 billion, 4.875% senior unsecured notes with a maturity date of October 2023 and recorded an insignificant loss.

Also, in March 2023, we renewed and reduced the total borrowing capacity of our five-year, $11.2 billion facility to $10.0 billion, which now matures March 31, 2028. We also renewed and reduced the total borrowing capacity of our three-year, $4.3 billion facility to $4.1 billion, which now matures March 31, 2026, and renewed our 364-day, $2.0 billion revolving credit facility allocated for the exclusive use of GM Financial, which now matures March 30, 2024. The renewed credit facilities are based on Term Secured Overnight Financing Rate (Term SOFR) whereas the previous credit facilities were based on the London Interbank Offered Rate (LIBOR).

GM Financial The following table presents debt of GM Financial:


	March 31, 2023				December 31, 2022
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Secured debt	$	41,253	$	40,773	$	42,131	$	41,467
Unsecured debt	56,814		55,009		54,723		52,270
Total GM Financial debt	$	98,067	$	95,782	$	96,854	$	93,738

Fair value utilizing Level 2 inputs			$	93,799			$	91,545
Fair value utilizing Level 3 inputs			$	1,983			$	2,192

Secured debt consists of revolving credit facilities and securitization notes payable. Most of the secured debt was issued by VIEs and is repayable only from proceeds related to the underlying pledged assets. Refer to Note 8 to our condensed consolidated financial statements for additional information on GM Financial's involvement with VIEs. In the three months ended March 31, 2023, GM Financial renewed revolving credit facilities with total borrowing capacity of $1.8 billion and issued $5.1 billion in aggregate principal amount of securitization notes payable with an initial weighted-average interest rate of 5.25% and maturity dates ranging from 2027 to 2032.

Unsecured debt consists of senior notes, credit facilities and other unsecured debt. In the three months ended March 31, 2023, GM Financial issued $3.2 billion in aggregate principal amount of senior notes with an initial weighted-average interest rate of 5.41% and maturity dates ranging from 2026 to 2033.

Note 10. Derivative Financial Instruments

Automotive The following table presents the notional amounts of derivative financial instruments in our automotive operations:


	Fair Value Level	March 31, 2023		December 31, 2022






Derivatives not designated as hedges(a)
Foreign currency	2	$	3,176	$	4,072

Commodity	2	901		1,075

Total derivative financial instruments		$	4,077	$	5,148

(a)The fair value of these derivative instruments at March 31, 2023 and December 31, 2022 and the gains/losses included in our condensed consolidated income statements for the three months ended March 31, 2023 and 2022 were insignificant, unless otherwise noted.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)

GM Financial The following table presents the gross fair value amounts of GM Financial's derivative financial instruments and the associated notional amounts:


	Fair Value Level	March 31, 2023						December 31, 2022
		Notional		Fair Value of Assets		Fair Value of Liabilities		Notional		Fair Value of Assets		Fair Value of Liabilities
Derivatives designated as hedges(a)
Fair value hedges
Interest rate swaps	2	$	16,559	$	8	$	334	$	19,950	$	—	$	821

Cash flow hedges
Interest rate swaps	2	1,637		33		3		1,434		34		1
Foreign currency swaps(b)	2	8,013		3		497		6,852		—		586
Derivatives not designated as hedges(a)
Interest rate contracts	2	114,353		1,924		2,073		113,975		2,268		1,984

Total derivative financial instruments(c)		$	140,562	$	1,968	$	2,907	$	142,212	$	2,302	$	3,392

(a)The gains/losses included in our condensed consolidated income statements and statements of comprehensive income for the three months ended March 31, 2023 and 2022 were insignificant, unless otherwise noted. Amounts accrued for interest payments in a net receivable position are included in Other assets. Amounts accrued for interest payments in a net payable position are included in Other liabilities.

(b)The effect of foreign currency cash flow hedges in the consolidated statements of comprehensive income include an insignificant gain and an insignificant loss recognized in Accumulated other comprehensive loss, and an insignificant gain and a $149 million loss reclassified from Accumulated other comprehensive loss into income for the three months ended March 31, 2023 and 2022.

(c)GM Financial held $480 million and $553 million of collateral from counterparties available for netting against GM Financial's asset positions, and posted $1.2 billion and $1.5 billion of collateral to counterparties available for netting against GM Financial's liability positions at March 31, 2023 and December 31, 2022.

The fair value for Level 2 instruments was derived using the market approach based on observable market inputs including quoted prices of similar instruments and foreign exchange and interest rate forward curves.

The following amounts were recorded in the condensed consolidated balance sheets related to items designated and qualifying as hedged items in fair value hedging relationships:


	March 31, 2023				December 31, 2022
	Carrying Amount of Hedged Items		Cumulative Amount of Fair Value Hedging Adjustments(a)		Carrying Amount of Hedged Items		Cumulative Amount of Fair Value Hedging Adjustments(a)
Short-term unsecured debt	$	3,712	$	(12)	$	3,048	$	2
Long-term unsecured debt	25,545		764		25,271		779
GM Financial unsecured debt	$	29,257	$	752	$	28,319	$	781

(a)Includes $470 million of unamortized losses and an insignificant amount remaining on hedged items for which hedge accounting has been discontinued at March 31, 2023 and December 31, 2022.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)

Note 11. Product Warranty and Related Liabilities


	Three Months Ended
		March 31, 2023		March 31, 2022
Product Warranty and Related Liabilities
Warranty balance at beginning of period		$	8,530	$	9,774
Warranties issued and assumed in period – recall campaigns		236		132
Warranties issued and assumed in period – product warranty		490		461
Payments		(1,058)		(1,077)
Adjustments to pre-existing warranties		279		(5)
Effect of foreign currency and other		5		17
Warranty balance at end of period		8,482		9,302
Less: Supplier recoveries balance at end of period(a)		1,157		2,025
Warranty balance, net of supplier recoveries at end of period		$	7,325	$	7,277

(a)The current portion of supplier recoveries is recorded in Accounts and notes receivable, net of allowance and the non-current portion is recorded in Other assets.


	Three Months Ended
		March 31, 2023		March 31, 2022
Product Warranty Expense, Net of Recoveries
Warranties issued and assumed in period		$	726	$	593
Supplier recoveries accrued in period		(44)		(57)
Adjustments and other		284		12
Warranty expense, net of supplier recoveries		$	966	$	548

We estimate our reasonably possible loss in excess of amounts accrued for recall campaigns to be insignificant at March 31, 2023. Refer to Note 13 to our condensed consolidated financial statements for more details.

Note 12. Pensions and Other Postretirement Benefits



	Three Months Ended March 31, 2023							Three Months Ended March 31, 2022
	Pension Benefits				Global OPEB Plans			Pension Benefits					Global OPEB Plans
	U.S.		Non-U.S.				U.S.			Non-U.S.
Service cost	$	44	$	42	$	2		$	58		$	35	$	4
Interest cost	568		161		59			323			76		37
Expected return on plan assets	(730)		(168)		—			(750)			(139)		—
Amortization of prior service cost (credit)	(1)		1		—			(1)			1		(1)
Amortization of net actuarial (gains) losses	—		8		(6)			5			35		17

Net periodic pension and OPEB (income) expense	$	(119)	$	44	$	55		$	(365)		$	8	$	57

The non-service cost components of net periodic pension and other postretirement benefits (OPEB) income of $86 million and $376 million in the three months ended March 31, 2023 and 2022 are presented in Interest income and other non-operating income, net.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)

Note 13. Commitments and Contingencies

Litigation-Related Liability and Tax Administrative Matters In the normal course of our business, we are named from time to time as a defendant in various legal actions, including arbitrations, class actions and other litigation. We identify below the material individual proceedings and investigations where we believe a material loss is reasonably possible or probable. We accrue for matters when we believe that losses are probable and can be reasonably estimated. At March 31, 2023 and December 31, 2022, we had accruals of $1.1 billion in Accrued liabilities and Other liabilities. In many matters, it is inherently difficult to determine whether loss is probable or reasonably possible or to estimate the size or range of the possible loss. Accordingly, while we believe that appropriate accruals have been established for losses that are probable and can be reasonably estimated, it is possible that adverse outcomes from such proceedings could exceed the amounts accrued by an amount that could be material to our results of operations or cash flows in any particular reporting period.

GM Korea Subcontract Workers Litigation GM Korea Company (GM Korea) is party to litigation with current and former subcontract workers over allegations that they are entitled to the same wages and benefits provided to full-time employees, and to be hired as full-time employees. In May 2018 and September 2020, the Korean labor authorities issued adverse administrative orders finding that GM Korea must hire certain current subcontract workers as full-time employees. GM Korea appealed the May 2018 and September 2020 orders. Since June 2020, the Seoul High Court (an intermediate-level appellate court) ruled against GM Korea in eight subcontract worker cases. Although GM Korea has appealed these decisions to the Supreme Court of the Republic of Korea (Korea Supreme Court), GM Korea has since hired certain of its subcontract workers as full-time employees. At March 31, 2023, our accrual covering certain asserted claims and claims that we believe are probable of assertion and for which liability is probable was approximately $261 million. We estimate the reasonably possible loss in excess of amounts accrued for other current subcontract workers who may assert similar claims to be approximately $94 million at March 31, 2023. We are currently unable to estimate any reasonably possible material loss or range of loss that may result from additional claims that may be asserted by former subcontract workers.

Other Litigation-Related Liability and Tax Administrative Matters Various other legal actions, including class actions, governmental investigations, claims and proceedings are pending against us or our related companies or joint ventures, including, but not limited to, matters arising out of alleged product defects; employment-related matters; product and workplace safety, vehicle emissions and fuel economy regulations; product warranties; financial services; dealer, supplier and other contractual relationships; government regulations relating to competition issues; tax-related matters not subject to the provision of Accounting Standards Codification 740, "Income Taxes" (indirect tax-related matters); product design, manufacture and performance; consumer protection laws; and environmental protection laws, including laws regulating air emissions, water discharges, waste management and environmental remediation from stationary sources. We also from time to time receive subpoenas and other inquiries or requests for information from agencies or other representatives of U.S. federal, state and foreign governments on a variety of issues.

There are several putative class actions pending against GM in federal courts in the U.S. and in the Provincial Courts in Canada alleging that various vehicles sold, including model year 2011-2016 Duramax Diesel Chevrolet Silverado and GMC Sierra vehicles, violate federal, state and foreign emission standards. We are currently unable to estimate any reasonably possible material loss or range of loss that may result from these actions. GM has also faced a series of additional lawsuits in the U.S. based on these allegations, including a shareholder demand lawsuit that remains pending.

There are several putative class actions and one certified class action pending against GM in federal courts in the U.S. alleging that various 2011-2014 model year vehicles are defective because they excessively consume oil. While many of these proceedings have been dismissed or have been settled for insignificant amounts, several remain outstanding, and in October 2022, we received an adverse jury verdict in the certified class action proceeding involving three states. We do not believe that the verdict is supported by the evidence and plan to pursue post-trial motions and, if necessary, appeal. We are currently unable to estimate any reasonably possible material loss or range of loss that may result from the putative class action proceedings and have previously accrued an immaterial amount related to the certified class action proceeding.

There is one putative class action and one certified class action pending against GM in federal court in the U.S. alleging that various 2015-2022 model year vehicles are defective because they are equipped with faulty 8-speed transmissions. In March 2023, the judge overseeing the class action concerning 2015-2019 model year vehicles certified 26 state subclasses. The putative class action concerning 2020-2022 model year vehicles is pending in front of a different judge that has not yet addressed class certification. We are currently unable to estimate any reasonably possible material loss or range of loss that may result from these proceedings.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)

There is a class action pending against GM in federal court in the U.S., and a putative class action in provincial court in Canada, alleging that 2011-2016 model year Duramax Diesel Chevrolet Silverado and GMC Sierra vehicles are equipped with defective fuel pumps that are prone to failure. In March 2023, the federal court certified seven state subclasses. We are currently unable to estimate any reasonably possible material loss or range of loss that may result from these proceedings.

Beyond the class action litigations disclosed, we have several other class action litigations pending at any given time. Historically, relatively few classes have been certified in these types of cases. Therefore, we will generally only disclose specific class actions if a class is certified and we believe there is a reasonably possible material exposure to the Company.

We are currently in discussions with the Environmental Protection Agency regarding potential adjustments to our balance of greenhouse gas credits. Depending on the outcome of those discussions, it is reasonably possible that the costs associated with these matters could be material, but we are unable to provide an estimate of the cost at this time.

Indirect tax-related matters are being litigated globally pertaining to value added taxes, customs, duties, sales, property taxes and other non-income tax-related tax exposures. The various non-U.S. labor-related matters include claims from current and former employees related to alleged unpaid wage, benefit, severance and other compensation matters. Certain administrative proceedings are indirect tax-related and may require that we deposit funds in escrow or provide an alternative form of security. Some of the matters may involve compensatory, punitive or other treble damage claims, environmental remediation programs or sanctions that, if granted, could require us to pay damages or make other expenditures in amounts that could not be reasonably estimated at March 31, 2023. For indirect tax-related matters, we estimate our reasonably possible loss in excess of amounts accrued to be up to approximately $950 million at March 31, 2023.

Takata Matters In November 2020, the National Highway Traffic Safety Administration (NHTSA) directed that we replace the Takata Corporation (Takata) airbag inflators in our GMT900 vehicles, which are full-size pickup trucks and sport utility vehicles (SUVs), and we decided not to contest NHTSA's decision. While we have already begun the process of executing the recall, given the number of vehicles in this population, the recall will take several years to be completed. Accordingly, in the year ended December 31, 2020, we recorded a warranty accrual of $1.1 billion for the expected costs of complying with the recall remedy, and we believe the currently accrued amount remains reasonable.

GM has recalled certain vehicles sold outside of the U.S. to replace Takata inflators in those vehicles. There are significant differences in vehicle and inflator design between the relevant vehicles sold internationally and those sold in the U.S. We continue to gather and analyze evidence about these inflators and to share our findings with regulators. Any additional recalls relating to these inflators could be material to our results of operations and cash flows.

There are several putative class actions that have been filed against GM, including in the federal courts in the U.S., in the Provincial Courts in Canada, and in Mexico, arising out of allegations that airbag inflators manufactured by Takata are defective. In March 2023, a federal court overseeing a putative class action against GM issued a final judgment in favor of GM on all claims in eight states at issue in that proceeding. At this stage of these proceedings, we are unable to provide an estimate of the amounts or range of reasonably possible material loss.

Chevrolet Bolt Recall In July 2021, we initiated a voluntary recall for certain 2017-2019 model year Chevrolet Bolt EVs due to the risk that two manufacturing defects present in the same battery cell could cause a high voltage battery fire in certain of these vehicles. Accordingly, in the three months ended June 30, 2021, we recorded a warranty accrual of $812 million. After further investigation into the manufacturing processes at our battery supplier, LG Energy Solution (LG), and disassembling battery packs, we determined that the risk of battery cell defects was not confined to the initial recall population. As a result, in August 2021, we expanded the recall to include all 2017-2022 model year Chevrolet Bolt EV and Electric Utility Vehicles (EUVs) and recorded an additional warranty accrual of $1.2 billion in the three months ended September 30, 2021. In October 2021, we reached an agreement with LG, under which LG will reimburse GM for costs and expenses associated with the recall. As a result, in the three months ended September 30, 2021, we recognized a receivable of $1.9 billion, which substantially offsets the warranty charges we recognized in connection with the recall. These charges reflect our current best estimate for the cost of the recall remedy. The actual costs of the recall and GM's associated recovery from LG could be materially higher or lower. For 2017-2019 model year vehicles, the recall remedy will be to replace the high voltage battery modules in these vehicles with new modules. For 2020-2022 model year vehicles, the recall remedy will be to replace any defective high voltage battery modules in these vehicles with new modules.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)

In addition, putative class actions have been filed against GM in federal courts in the U.S. and in the Provincial Courts in Canada alleging that the batteries contained in the Bolt EVs and EUVs included in the recall population are defective. At this stage of these proceedings, we are unable to provide an estimate of the amounts or range of reasonably possible material loss.

Opel/Vauxhall Sale In 2017, we sold the Opel and Vauxhall businesses and certain other assets in Europe (the Opel/Vauxhall Business) to PSA Group, now Stellantis N.V. (Stellantis), under a Master Agreement (the Agreement). We also sold the European financing subsidiaries and branches to Banque PSA Finance S.A. and BNP Paribas Personal Finance S.A. Although the sale reduced our new vehicle presence in Europe, we may still be impacted by actions taken by regulators related to vehicles sold before the sale. General Motors Holdings LLC agreed, on behalf of our wholly owned subsidiary (the Seller), to indemnify Stellantis for certain losses resulting from any inaccuracy of the representations and warranties or breaches of our covenants included in the Agreement and for certain other liabilities, including costs related to certain emissions claims, product liabilities and recalls. We are unable to estimate any reasonably possible material loss or range of loss that may result from these actions either directly or through an indemnification claim from Stellantis. Certain of these indemnification obligations are subject to time limitations, thresholds and/or caps as to the amount of required payments.

Currently, various consumer lawsuits have been filed against the Seller and Stellantis in Germany, the United Kingdom and the Netherlands alleging that Opel and Vauxhall vehicles sold by the Seller violated applicable emissions standards. In addition, we indemnified Stellantis for an immaterial amount for certain recalls that Stellantis has conducted or will conduct, including recalls in certain geographic locations that Stellantis intends to conduct related to Takata inflators in legacy Opel vehicles. We may in the future be required to further indemnify Stellantis relating to its Takata recalls, but we believe such further indemnification to be remote at this time.

Product Liability We recorded liabilities of $570 million and $561 million in Accrued liabilities and Other liabilities at March 31, 2023 and December 31, 2022 for the expected cost of all known product liability claims, plus an estimate of the expected cost for product liability claims that have already been incurred and are expected to be filed in the future for which we are self-insured. It is reasonably possible that our accruals for product liability claims may increase in future periods in material amounts, although we cannot estimate a reasonable range of incremental loss based on currently available information. We believe that any judgment against us involving our products for actual damages will be adequately covered by our recorded accruals and, where applicable, excess liability insurance coverage.

Guarantees We enter into indemnification agreements for liability claims involving products manufactured primarily by certain joint ventures. These guarantees terminate in years ranging from 2023 to 2028, or upon the occurrence of specific events or are ongoing. We believe that the related potential costs incurred are adequately covered by our recorded accruals, which are insignificant. The maximum future undiscounted payments mainly based on royalties received associated with vehicles sold to date were $3.2 billion and $3.1 billion for these guarantees at March 31, 2023 and December 31, 2022, the majority of which relates to the indemnification agreements.

We provide payment guarantees on commercial loans outstanding with third parties such as dealers. In some instances, certain assets of the party or our payables to the party whose debt or performance we have guaranteed may offset, to some degree, the amount of any potential future payments. We are also exposed to residual value guarantees associated with certain sales to rental car companies.

We periodically enter into agreements that incorporate indemnification provisions in the normal course of business. It is not possible to estimate our maximum exposure under these indemnifications or guarantees due to the conditional nature of these obligations. Insignificant amounts have been recorded for such obligations as the majority of them are not probable or estimable at this time and the fair value of the guarantees at issuance was insignificant. Refer to the Opel/Vauxhall Sale section of this note for additional information on our indemnification obligations to Stellantis under the Agreement.

Supplier Finance Programs Third-party finance providers offer certain suppliers the option for payment in advance of their invoice due date through financing programs that we established. We retain our obligation to the participating suppliers, and we make payments directly to the third-party finance providers on the original invoice due date pursuant to the original invoice terms. There are no assets pledged as security or other forms of guarantees provided for committed payments. Our outstanding eligible balances under our supplier finance programs are $1.1 billion and $852 million at March 31, 2023 and December 31, 2022, which are recorded in Accounts payable (principally trade).

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)

Note 14. Income Taxes

In the three months ended March 31, 2023, Income tax expense of $428 million was primarily due to tax expense attributable to entities included in our effective tax rate calculation. In the three months ended March 31, 2022, Income tax benefit of $28 million was primarily due to tax expense attributable to entities included in our effective tax rate calculation, offset by the release of a valuation allowance against certain Cruise deferred tax assets that were considered realizable due to the reconsolidation of Cruise for U.S. tax purposes.

Note 15. Restructuring and Other Initiatives

We have executed various restructuring and other initiatives and we may execute additional initiatives in the future, if necessary, to streamline manufacturing capacity and reduce other costs to improve the utilization of remaining facilities. To the extent these programs involve voluntary separations, a liability is generally recorded at the time offers to employees are accepted. To the extent these programs provide separation benefits in accordance with pre-existing agreements, a liability is recorded once the amount is probable and reasonably estimable. If employees are involuntarily terminated, a liability is generally recorded at the communication date. Related charges are recorded in Automotive and other cost of sales and Automotive and other selling, general and administrative expense.

The following table summarizes the reserves and charges related to restructuring and other initiatives, including postemployment benefit reserves and charges:


	Three Months Ended
	March 31, 2023		March 31, 2022
Balance at beginning of period	$	520	$	285
Additions, interest accretion and other	980		(2)
Payments	(51)		(104)
Revisions to estimates and effect of foreign currency	—		(9)
Balance at end of period	$	1,450	$	171

In the three months ended March 31, 2023, restructuring and other initiatives included strategic activities in GMNA related to Buick dealerships. We recorded charges of $99 million, which are included in the table above, and incurred $39 million in net cash outflows resulting from these dealer restructurings in the three months ended March 31, 2023, in addition to the charges of $511 million and net cash outflows of $120 million in the year ended December 31, 2022. The remaining $451 million is expected to be paid by the end of 2023.

Additionally, on March 9, 2023, we announced a voluntary separation program (VSP) to accelerate attrition related to the cost reduction program announced in January 2023. We recorded charges in GMNA of $875 million in the three months ended March 31, 2023, primarily related to employee separation charges, which are reflected in the table above. We expect cash outflows related to these activities of approximately $875 million to be substantially complete by the end of 2023.

Note 16. Stockholders' Equity and Noncontrolling Interests

We have 2.0 billion shares of preferred stock and 5.0 billion shares of common stock authorized for issuance. We had no shares of preferred stock issued and outstanding at March 31, 2023 and December 31, 2022. We had 1.4 billion shares of common stock issued and outstanding at March 31, 2023 and December 31, 2022.

Common Stock Holders of our common stock are entitled to dividends at the sole discretion of our Board of Directors. Our dividends declared per common share were $0.09 and our total dividends paid on common stock were $126 million for the three months ended March 31, 2023. Dividends were not declared or paid on our common stock for the three months ended March 31, 2022.

In August 2022, our Board of Directors increased the capacity under our previously announced common stock repurchase program to $5.0 billion from the $3.3 billion that remained under the program as of June 30, 2022. In the three months ended March 31, 2023, we purchased 9 million shares of our outstanding common stock for $369 million as part of the program, inclusive of an insignificant amount of excise tax related to the Inflation Reduction Act of 2022. We did not purchase shares of our outstanding common stock in the three months ended March 31, 2022.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)

Cruise Preferred Shares In March 2022, under the Share Purchase Agreement, we acquired SoftBank Vision Fund (AIV M2) L.P.'s (together with its affiliates, SoftBank) Cruise Class A-1, Class F and Class G Preferred Shares for $2.1 billion and made an additional $1.35 billion investment in Cruise in place of SoftBank. SoftBank no longer has an ownership interest in or has any rights with respect to Cruise.

Cruise Common Shares During the three months ended March 31, 2023, GM Cruise Holdings LLC (Cruise Holdings) issued $95 million of Class B Common Shares to net settle vested awards under Cruise's 2018 Employee Incentive Plan and issued $56 million of Class B Common Shares to fund the payment of statutory tax withholding obligations resulting from the settlement or exercise of vested awards. Also, GM conducted a quarterly tender offer, and paid $75 million in cash to purchase tendered Cruise Class B Common Shares during the three months ended March 31, 2023. The Class B Common Shares are classified as noncontrolling interests in our condensed consolidated financial statements except for certain shares that are liability classified that have a recorded value of approximately $60 million at both March 31, 2023 and December 31, 2022. Refer to Note 18 for additional information on Cruise stock incentive awards.

During the three months ended March 31, 2023 and 2022, the effect on the equity attributable to us for changes in our ownership interest in Cruise was insignificant. For the three months ended March 31, 2023 and 2022, net income attributable to shareholders and transfers to the noncontrolling interest in Cruise and other subsidiaries was $2.4 billion and $2.0 billion, which in 2022 included a $909 million decrease in retained earnings due to the redemption of Cruise preferred shares.

The following table summarizes the significant components of Accumulated other comprehensive loss:


	Three Months Ended
		March 31, 2023		March 31, 2022
Foreign Currency Translation Adjustments
Balance at beginning of period		$	(2,776)	$	(2,653)
Other comprehensive income (loss) and noncontrolling interests, net of reclassification adjustment and tax(a)(b)		164		397
Balance at end of period		$	(2,611)	$	(2,256)

Defined Benefit Plans
Balance at beginning of period		$	(4,851)	$	(6,528)
Other comprehensive income (loss) before reclassification adjustment, net of tax(b)		(39)		52
Reclassification adjustment, net of tax(b)		4		51
Other comprehensive income (loss), net of tax(b)		(35)		103
Balance at end of period(c)		$	(4,886)	$	(6,425)

(a)The noncontrolling interests and reclassification adjustment were insignificant in the three months ended March 31, 2023 and 2022.

(b)The income tax effect was insignificant in the three months ended March 31, 2023 and 2022.

(c)Primarily consists of unamortized actuarial loss on our defined benefit plans. Refer to Note 2. Significant Accounting Policies of our 2022 Form 10-K for additional information.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)

Note 17. Earnings Per Share


	Three Months Ended
		March 31, 2023		March 31, 2022
Basic earnings per share
Net income (loss) attributable to stockholders		$	2,395	$	2,939
Less: cumulative dividends on subsidiary preferred stock(a)		(27)		(952)


Net income (loss) attributable to common stockholders		$	2,369	$	1,987

Weighted-average common shares outstanding		1,396		1,458



Basic earnings per common share		$	1.70	$	1.36
Diluted earnings per share


Net income (loss) attributable to common stockholders – diluted		$	2,369	$	1,987

Weighted-average common shares outstanding – basic		1,396		1,458
Dilutive effect of awards under stock incentive plans		6		12
Weighted-average common shares outstanding – diluted		1,402		1,470



Diluted earnings per common share		$	1.69	$	1.35
Potentially dilutive securities(b)		22		6

(a)Includes a $909 million deemed dividend related to the redemption of Cruise preferred shares from SoftBank in the three months ended March 31, 2022.

(b)Potentially dilutive securities attributable to outstanding stock options, Restricted Stock Units (RSUs) and Performance Stock Units (PSUs) at March 31, 2023 and outstanding stock options and RSUs at March 31, 2022 were excluded from the computation of diluted earnings per share (EPS) because the securities would have had an antidilutive effect.

Note 18. Stock Incentive Plans

Cruise Stock Incentive Awards In March 2022, Cruise modified its RSUs that settle in Cruise common stock to remove the liquidity vesting condition such that all granted RSU awards vest solely upon satisfactions of a service condition. Total compensation expense related to Cruise Holdings' share-based awards was $103 million in the three months ended March 31, 2023 and $1.2 billion in the three months ended March 31, 2022, which in 2022 primarily represents the impact of the modification to outstanding awards. GM conducted a quarterly tender offer and paid $75 million in cash to purchase tendered Cruise Class B Common Shares during the three months ended March 31, 2023. No cash was paid to settle share-based awards in the three months ended March 31, 2022.

Note 19. Segment Reporting

We analyze the results of our business through the following reportable segments: GMNA, GMI, Cruise and GM Financial. The chief operating decision-maker evaluates the operating results and performance of our automotive segments and Cruise through earnings before interest and income taxes (EBIT)-adjusted, which is presented net of noncontrolling interests. The chief operating decision-maker evaluates GM Financial through earnings before income taxes (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. Each segment has a manager responsible for executing our strategic initiatives. While not all vehicles within a segment are individually profitable on a fully allocated cost basis, those vehicles attract customers to dealer showrooms and help maintain sales volumes for other, more profitable vehicles and contribute towards meeting required fuel efficiency standards. As a result of these and other factors, we do not manage our business on an individual brand or vehicle basis.

Substantially all of the trucks, crossovers, cars and automobile parts produced are marketed through retail dealers in North America and through distributors and dealers outside of North America, the substantial majority of which are independently owned. In addition to the products sold to dealers for consumer retail sales, trucks, crossovers and cars are also sold to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies and governments. Fleet sales are completed through the dealer network and in some cases directly with fleet customers. Retail and fleet customers can obtain

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)

a wide range of after-sale vehicle services and products through the dealer network, such as maintenance, light repairs, collision repairs, vehicle accessories and extended service warranties.

GMNA meets the demands of customers in North America and GMI primarily meets the demands of customers outside North America with vehicles developed, manufactured and/or marketed under the Buick, Cadillac, Chevrolet and GMC brands. We also have equity ownership stakes in entities that meet the demands of customers in other countries, primarily 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 AV technology, and includes AV-related engineering and other costs. We provide automotive financing services through our GM Financial segment.

Our automotive interest income and interest expense, legacy costs from the Opel/Vauxhall Business (primarily pension costs), corporate expenditures and certain nonsegment specific revenues and expenses are recorded centrally in Corporate. Corporate assets primarily consist of cash and cash equivalents, marketable debt securities and intersegment balances. All intersegment balances and transactions have been eliminated in consolidation.

The following tables summarize key financial information by segment:



	At and For the Three Months Ended March 31, 2023
	GMNA		GMI		Corporate		Eliminations		Total Automotive		Cruise		GM Financial		Eliminations/Reclassifications		Total
Net sales and revenue	$	32,889	$	3,727	$	31			$	36,646	$	25	$	3,343	$	(29)	$	39,985
Earnings (loss) before interest and taxes-adjusted	$	3,576	$	347	$	(327)			$	3,596	$	(561)	$	771	$	(3)	$	3,803
Adjustments(a)	$	(974)	$	—	$	—			$	(974)	$	—	$	—	$	—	(974)
Automotive interest income																	229
Automotive interest expense																	(234)
Net income (loss) attributable to noncontrolling interests																	(49)
Income (loss) before income taxes																	2,775
Income tax benefit (expense)																	(428)
Net income (loss)																	2,346

Net loss (income) attributable to noncontrolling interests																	49
Net income (loss) attributable to stockholders																	$	2,395
Equity in net assets of nonconsolidated affiliates	$	2,000	$	6,817	$	—	$	—	$	8,818	$	—	$	1,725	$	—	$	10,542
Goodwill and intangibles	$	2,154	$	732	$	4	$	—	$	2,890	$	728	$	1,350	$	—	$	4,968
Total assets	$	144,903	$	24,992	$	40,880	$	(69,676)	$	141,098	$	5,217	$	122,789	$	(2,099)	$	267,004

Depreciation and amortization	$	1,428	$	122	$	5	$	—	$	1,555	$	4	$	1,251	$	—	$	2,810
Impairment charges	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Equity income (loss)(b)	$	(46)	$	81	$	—	$	—	$	34	$	—	$	41	$	—	$	75

(a) Consists of charges for strategic activities related to Buick dealerships and charges related to the VSP in GMNA.

(b) Equity earnings related to Ultium Cells Holdings LLC are presented in Automotive and other cost of sales as this entity is integral to the operations of our business by providing battery cells for our EVs. In the three months ended March 31, 2023, equity earnings related to Ultium Cells Holdings LLC were insignificant.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)



	At and For the Three Months Ended March 31, 2022
	GMNA		GMI		Corporate		Eliminations		Total Automotive		Cruise		GM Financial		Eliminations/Reclassifications		Total
Net sales and revenue	$	29,456	$	3,313	$	53			$	32,823	$	26	$	3,156	$	(26)	$	35,979
Earnings (loss) before interest and taxes-adjusted	$	3,141	$	328	$	(387)			$	3,082	$	(325)	$	1,284	$	4	$	4,044
Adjustments(a)	$	100	$	—	$	—			$	100	$	(1,057)	$	—	$	—	(957)
Automotive interest income																	50
Automotive interest expense																	(226)
Net income (loss) attributable to noncontrolling interests																	(131)
Income (loss) before income taxes																	2,779
Income tax benefit (expense)																	28
Net income (loss)																	2,807

Net loss (income) attributable to noncontrolling interests																	131
Net income (loss) attributable to stockholders																	$	2,939

Equity in net assets of nonconsolidated affiliates	$	1,217	$	7,406	$	—	$	—	$	8,623	$	—	$	1,779	$	—	$	10,402
Goodwill and intangibles	$	2,213	$	765	$	—	$	—	$	2,978	$	733	$	1,346	$	—	$	5,058
Total assets	$	126,454	$	24,612	$	35,696	$	(55,702)	$	131,060	$	6,310	$	115,312	$	(1,190)	$	251,492
Depreciation and amortization	$	1,504	$	134	$	5	$	—	$	1,643	$	12	$	1,236	$	—	$	2,891
Impairment charges	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Equity income (loss)	$	6	$	232	$	—	$	—	$	238	$	—	$	54	$	—	$	292

(a) Consists of the resolution of substantially all royalty matters accrued with respect to past-year vehicle sales in GMNA; and charges related to the one-time modification of Cruise stock incentive awards.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

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