|Company Name:||General Motors Company|
|Event Title:||2013 J.P. Morgan Automotive Conference Transcript|
|Event Time:||11:25 AM ET|
Analyst, JP Morgan
Next company is General Motors. We're happy to have here with us from GM, charlChuck Stevens, Chief Financial Officer for a $95 billion company, actually of the CFOs at this conference, he is the CFO of the largest company, GM North America, I am referring to of course. We also have Randy Arickx, GM's Executive Director of Communications with us.
We thought it would be fun and informative to have a slightly different format to this presentation, similar American actually yesterday and sort of similar to Autoliv earlier today, in the way of more of a fireside chat between Chuck and myself. But as with all the presentations, we'll definitely leave a plenty of time for audience Q&A as well. So with that Chuck. Thank you for coming.
Chief Financial Officer, GM North America
Appreciate it, Ryan.
So, Chuck before we get started...
Executive Vice President and CFO, General Motors
Yeah. I would just like to take a couple of minutes before we start the Q&A to see how -- to see how 2013 shaping up versus the expectations that we had back in January. We laid out kind of our view for the year at the Deutsche Bank Conference and I think it's a good time kind of half way through the year to take pause and see how things are shaping up.
Back in January, we talked about the industry for the year and the U.S. Being up roughly 5% in the range of 15 million to 15.5 million units, obviously it's been running much stronger than that, about 15.7 million year-to-date. So that's been a quite a positive development.
Within that, what's been very helpful and pleasing to us is the performance of full sized pickup truck segment as well, which is up about a 130 basis points year-over-year for the first seven months of the year. And it's clearly helped us with the transition from the GMT900 to the K2XX.
Back in January, we talked about market share, and we expected to see modest market share improvements for the year. So far calendar year-to-date, our share is up about two tenths of a point, but within that retail market share is up three tenths of a point. So, that's a pretty good indication of our products getting some cadence in the market, especially as we head into launches here in the second half and next year.
Overall, and those of you that have been following North America specifically over the last two or three years product mix has been a fairly significant headwind as we've launched vehicles in segments where we haven't been competitive in the past, like small and compact passenger cars. So, it's been a pretty significant headwind this year. We felt that mix was going to be flat. First half of the year, it's been just that flat and we expect that to continue. So that's a pretty positive development. From a pricing standpoint, I think two key drivers of pricing.
We talked about carryover pricing and that's pricing and products that are already in the market being a fairly significant headwind this year, primarily related to the GMT900 sell-down and pricing on new products being favorable this year, net-net overall pricing being favorable. I would say that's playing out as expected as well in the first half of the year, overall pricing has been flat with carryover pricing being a headwind, new pricing fundamentally offsetting that. We would expect to see some acceleration in favorable pricing in the second half of the year when we get through the full launch of K2XX, the next generation CTS and some other products. So again, another driver that's kind of playing out as expected.
From a cost standpoint, we talk about fixed cost being up year-over-year, primarily related to increased depreciation and amortization associated with our new product launches, fundamentally the K2. Some incremental fixed cost related to pre-production and startup and launch expense and manufacturing, and incremental marketing. And again, first six of the year that's kind of playing out as we expected, fixed costs are up about 400 million year-over-year.
I would expect that to accelerate a bit in the second half of the year. We'll still have pretty significant manufacturing related launch costs as we move through the launch cadence with the K2XX. And then our marketing spend will start to ramp up here in Q3 and Q4.