“we do have planned in the second half as we continue to increase volumes in Blue that we will see some pricing pressure there”

In context

“e $10,000 decline is still above its launch price. Operator: The last question today comes from Jim Picariello with BNP Paribas Exane. Please go ahead. Jim Picariello: Just looking at the guidance for Blue, now at $8 billion for the year. There's almost a $2 billion step-down, right, first half to second half. Can you just unpack what the key bridge items -- are there to the sequential step-down? I mean I know there's obvious sensitivity around what could be baked in for the UAW contract impact. But beyond this, how should we be thinking about for Blue volumes, pricing? Any other factors that stand out for the second half? John Lawler: Yes. Thanks. So when you look at that for Blue on a half-over-half basis, we -- pricing held up much better than we thought through the second quarter, but we do have planned in the second half as we continue to increase volumes in Blue that we will see some pricing pressure there. So we see that happening as we walk through. We do have in the second half the ratification, which we see when we get to a new contract. And remember, for us, all of that is in our quarter, in our fourth quarter. We don't amortize that. We take it as a full charge in the quarter. And then we're also seeing some inflationary pressures. And we saw that in the quarter as well, we see that going through the second half, primarily around warranty, and that's with the costs that we're seeing come through the dealers. So they're increasing their costs and warranty for the repairs. Their labor rates, et cetera, have gone up with inflation. And then the other thing we're seeing across the board, we saw it in the second quarter, but we see it through this quarter as well, is the cost we're seeing”