“Comparisons become easier as the year progresses, and we expect fixed costs including cruise, but excluding depreciation and amortization to be roughly flat year-over-year in 2025.”

In context

“ributable to weakness in the Mexican peso. Fixed costs were up $400 million year-over-year due to higher depreciation and amortization, ongoing warranty pressure and higher labor costs partially offset by the reductions at Cruise. Relative to warranty costs, we face persistent inflation challenges and are also taking voluntary measures to address the 6.2 liter L87 engine supplier quality issues in some models year 2021 to 2024 vehicles. The good news is that dealers have already begun applying the remedy to vehicles in their possession. It's the right thing to do for our customers. Despite around $500 million of incremental expenses for the L87 in the second quarter, we expect warranty to still be a slight year-over-year tailwind in 2025. We are focused on maintaining our cost discipline. Comparisons become easier as the year progresses, and we expect fixed costs including cruise, but excluding depreciation and amortization to be roughly flat year-over-year in 2025. Now let's move to North America. Notwithstanding higher wholesales quarter over quarter, US dealer inventories were down in part due to a meaningful step up in the SAAR throughout the quarter. The industry undoubtedly benefited from some pull ahead demand from customers purchasing vehicles ahead of potential tariff impacts, particularly in March. But the strong demand has continued into April, where we've seen US deliveries up around 20% versus last year. Q1 margin was 8.8%, well within our 8% to 10% target range despite the additions of the expenses that were formerly at Cruise. With respect to our international business, GM International EBIT adjusted excluding China equity income was breakeven in a seasonally low quarter influenced in part by this year's timing of holidays in The Middl”