Executive Vice President and Chief Financial Officer at General Motors
Thanks, Mary, and good morning, everyone. I'm extremely proud of the team's execution in Q2 and remain excited about our future. We are at the beginning of an accelerating EV product ramp that we believe we will drive a continuous increase in revenue as we transition to an all-electric future. And as Mary highlighted, we're making significant progress on several fronts, including Cruise commercialization and our battery supply chain. Just yesterday, the Department of Energy announced a conditional commitment to Ultium Cells LLC, our 50-50 joint venture to manufacture battery cells for a $2.5 billion loan to help fund the construction of our battery cell manufacturing facilities in Ohio, Tennessee, and Michigan. Supporting our goal of the secure battery materials and technology supply chain here in North America.
We're also finalizing the deals of GM sustainable finance framework, which will unlock options to help us align our balance sheet with our ESG strategy. Now, let's get into the Q2 results. We generated $35.8 billion in revenue, up $1.6 billion year-over-year, driven by strong pricing and slightly higher volume. We generated $2.3 billion in EBIT adjusted, 6.6% EBIT adjusted margin, and $1.14 per share in EPS diluted adjusted all within the $2.3 billion to $3.6 billion EBIT adjusted range laid out earlier this month.
Our results were impacted by the short-term tactical decision to build more than 90,000 North American vehicles without certain components with revenue re-time from Q2 into the second half of 2022. The supply chain challenges causing the company vehicle inventory buildup primarily occurred in June and it continued in July, affecting some of our plants. While this is frustrating we've built some of this uncertainty into our full-year guidance. Some of these vehicles will be quick to complete. In fact, we've already wholesaled about 15,000 vehicles with the expectation to get through substantially all of the vehicles by the end of the year with about 50% in Q3 and 50% in Q4.
Despite these challenges, we've seen a continuous year-over-year volume improvement. Q1 up 1%, Q2 up 7% and we expect Q3 to be up 92% to 100% year-over-year as we lap the significant impacts experienced in Q3 '21 and the re-time vehicles and Q4 to be up 20% to 30% remaining on track to increase our 2022 wholesales by 25% to 30% year-over-year as we guided to at the beginning of the year.
Adjusted automotive free cash flow was $1.4 billion for the quarter down $1.1 billion year-over-year, driven primarily by higher capex related to EV investments and the impact of holding these vehicles built without certain components in the company inventory.
Let's take a closer look at North America. In Q2 North America delivered EBIT adjusted of $3.3 billion, down $600 million year-over-year and EBIT adjusted margins of 8%, driven by higher commodity costs and investments in growth, partially offset by strong pricing across our portfolio, but especially, on our full-size trucks and SUVs and the non-recurrence of 2021 recall cost. Our mix was primarily impacted by the more than 90,000 vehicles built without certain components. About 75% of these being full-size trucks and SUVs.
As Mary mentioned new vehicles have continued to turn very quickly and U.S. dealer inventory remains tight at around 250,000 units with much of this inventory in-transit. Inventory on dealer lots continues to be only 10 to 15 days. We continue to watch this very closely, but the consistently tight inventory on dealer lots over the last several quarters and months demonstrates the strong demand for our vehicles. Truck ATPs have continued to be very strong at over $60,000 and Denali continues to be a strength for GMC accounting for nearly half of the total Yukon sales this year.
Our truck and SUV customers have been asking for a broader range of choices, including premium options, which we are delivering on with the GMC Denali Ultimate, the GMC AT4X and the Cadillac Escalade V-Series. The investments we have made in these vehicles over the last couple of years, including the significant refresh to our full-size light duty trucks earlier this year, provide a strong bridge to our all-electric future.
Now let's move on to GM International. GMI delivered second-quarter EBIT adjusted of $200 million. This included $100 million of equity loss in China down $350 million year-over-year, driven primarily by their COVID-related impacts. However, we saw an improvement starting in June with production levels beginning to recover. The China team continues to navigate a very dynamic and difficult environment both personally and professionally. I can't thank them enough for their efforts this quarter.
EBIT adjusted in GMI excluding China equity income was $300 million, up over $500 million year-over-year with results driven by favorable pricing, volume, and mix, partially offset by commodity logistics and semiconductor impacts. These results also include a mark-to-market gain of around $150 million.
The GMI results excluding China equity income and mark-to-market gain was a record Q2 and first half. The progress the team has made over the last couple of years has been impressive. And I look forward to the team continuing to build upon that momentum. A few comments on GM Financial and Corporate Expenses. GM Financial once again delivered solid results, driven by strong used vehicle prices with Q2 EBT adjusted of $1.1 billion, down $500 million year-over-year primarily due to the reserve adjustments made last year. Corporate expenses were $700 million in the quarter, up $700 million year-over-year, driven primarily by differences in year-over-year mark-to-market changes in the portfolio.
Moving to Cruise which we are very excited about. We believe the autonomous opportunities go well beyond the Robo Taxi business, including delivery, personal vehicles and a commercial application with BrightDrop. Cruise expenses of $550 million for the quarter are consistent with the run rate we would expect for the remainder of the year.
Now let's turn to our second-half outlook. As we indicated earlier in the month, we're confident in achieving our full-year 2022 guidance range metrics, including EBIT adjusted in the range of $13 billion to $15 billion, and North America margins of 10%. We see tailwinds with volume, including completing the vehicles in company inventory. Pricing remains strong and has held up more than we estimated at the beginning of the year helping partially offset the incremental commodity costs.
We are encouraged to see some moderation in the spot prices of certain raw materials, but the timing of the flow-through of this benefit into earnings varies by commodity and typically lags. We would not expect to see a meaningful impact until later in the year and into 2023. We're also incurring significantly higher logistics costs, including premium freight to overcome some of the supply chain shortage -- challenges, which is offsetting some of the moderation in raw material costs.
With these puts and takes in commodity and logistics costs, we still expect about a $5 billion year-over-year headwind impacting our global operations with the expectation to offset with cost and pricing actions. GM Financial is currently trending towards the high-end of the expected $3.5 billion to $4 billion full-year EBT range with some moderation anticipated in the second half as credit and used vehicle prices are expected to normalize somewhat. There are also other cost headwinds in the back half of the year, including some seasonality, growth investments in initiatives to drive EV adoption and expand charging infrastructure. However, we will be nimble and bringing on these costs at the appropriate time and remain prudent in our spending to ensure we meet our growth commitments.
In summary, the first half of the year we've seen strong pricing and continue to see a recovery in volumes. We've executed well on the things we can control and we remain focused on our growth opportunities. We're starting to see the benefits of the EV and battery investments made over the last several years and vehicles such as the Cadillac LYRIQ, the GMC Hummer EV Pickup validate that we have transitioned our engineering and manufacturing expertise to EVs.
We're laser-focused on execution and what you've seen is just the start of a transformative period for GM. We are strategically building an EV portfolio in the luxury SUV and truck segments to produce vehicles with great design at the right price points for customers and at the margins we come to expect.
This concludes our opening comments and we'll now move to the Q&A portion of the call.