GM Continues to Execute Well While Buying Back Stock

We see General Motors with a competitive lineup in all segments it competes in, combined with a reduced cost base ($2 billion cut across 2023-24), finally enabling it to have the scale to match its size. We think GM's earnings potential is excellent because the company has a healthy North American unit and a nearly mature finance arm with GM Financial. Moving hourly workers' retiree healthcare to a separate fund and closing plants drastically lowered GM North America's breakeven point to US industry sales of about 10 million-11 million vehicles, assuming 18%-19% share. We expect more scale and flexibility to come from a joint venture making electric vehicle batteries.