“Our guidance assumes pricing to be down 1% to 1.5 year-over-year in the second-half versus essentially flat in the first-half, which is a substantial improvement from where we started the year.”

In context

“t's move now to our updated guidance. Given the positive momentum we've seen thus far and our confidence in the rest of the year, we are raising full-year 2024 guidance to EBIT adjusted in the $13 billion to $15 billion range, EPS diluted adjusted in the $9.50 to $10.50 per share range, and adjusted automotive free cash flow in the $9.5 billion to $11.5 billion range. Our cash flow guidance increases larger than our EBIT increase, primarily due to production alignment to market demand and further working capital benefits over the balance of the year. I'd also like to address why the implied second-half EBIT adjusted is around $2.5 billion lower at the midpoint of our guidance range, compared to the first-half. There are three main reasons. First, we are assuming a bigger pricing headwind. Our guidance assumes pricing to be down 1% to 1.5 year-over-year in the second-half versus essentially flat in the first-half, which is a substantial improvement from where we started the year. Second, roughly $1 billion of costs are second-half weighted. This includes about $400 million higher marketing spend to support more launches in the back half of the year. The remainder is related to higher commodity prices, particularly copper and aluminum, and the timing of other EV costs, which we do not anticipate to be ongoing. Third, EV volumes are expected to build sequentially every quarter to achieve our full-year target of 200,000 to 250,000. We produced and wholesale 75,000 GM Ultium EVs in the first-half of the year, and expect this number to accelerate as we launch and ramp our new vehicles. As a result, mix will be a bigger headwind in the back half of the year, as EVs have a variable profit lower than the portfolio average. We continue to monitor EV demand and inventory le”