GM – Market expectations are for Uniform ROA to remain stable, but management is confident about EBIT, Factory ZERO, and digital platforms

• General Motors Company (GM:USA) currently trades near corporate averages relative to UAFRS-based (Uniform) earnings, with a 19.4x Uniform P/E. At these levels, the market is pricing in expectations for profitability to remain stable, but management is confident about EBIT growth, Factory ZERO investments, and their vehicle intelligence platform
  
• Specifically, management is confident EBIT expectations for 2021 are similar to 2020 in a non-pandemic environment, that they can leverage their vehicle intelligence platform following the introduction of new vehicles, and that they are working with dealer partners to improve customer experience. In addition, they are confident their pickup trucks and cost actions drove Q3 EBIT growth, they are focused on growth opportunities, and that they invested $2 billion in Factory ZERO. Moreover, management is confident they are maximizing their new full-size truck and SUV vehicle portfolios and are adding new higher-spec trims to full-size pick-ups