GM to Book $6 Billion Writedown on EV Investments
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General Motors said it would book a $6 billion impairment to roll back parts of its electric-vehicle investments, becoming the latest automaker to scale down EV plans amid the Trump administration’s policies and weakening demand.
The charge stems from reducing its planned EV production and the fallout on the supply chain, GM said in a regulatory filing, and comes weeks after rival Ford Motor announced a similar but much bigger charge.
Most of GM's writedown - a $4.2 billion cash charge - is related to contract cancellations and settlements with suppliers, who had planned for much higher production volumes before the market turned.
GM said the writedown would not affect its U.S. lineup of roughly a dozen EV models, which is the industry’s broadest offering of battery-powered vehicles.
“We plan to continue to make these models available to consumers,” according to the company.
The company will record the charge as a special item in its fourth-quarter earnings report. It expects to incur additional charges in 2026 as a result of negotiations with its supply base, but expects them to be less than its 2025 EV charges.
Shares fell 2 percent in after-hours trading. They ended the regular session on Thursday up 3.9 percent at $85.13. GM placed a big bet on EVs Many automakers, including GM’s crosstown rival, Ford, have been dialing back factory work on EVs since last summer, when U.S. President Donald Trump’s massive tax and spending package darkened the outlook for the EV market. Sales of battery-powered vehicles have cratered following the elimination on September 30 of a $7,500 federal tax credit for EV buyers.
Ford in December said it would take a $19.5 billion writedown over several quarters as it canceled several EV programs, including the fully electric version of its F-150 Lightning truck and an additional electric truck and van.
GM, the largest U.S. automaker by sales, made one of the biggest bets on EVs among global automakers, at one point vowing to essentially phase out internal-combustion cars and trucks by 2035.
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While the company has not publicly walked back the 2035 goal, analysts have sharply cut the industry’s EV sales forecast into the next decade for the U.S., GM’s largest and most profitable market. GM CEO Mary Barra has said the company will respond to customer demand.
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GM’s EV sales had started gaining traction in late 2024 after years of manufacturing setbacks. The company rolled out more lower-cost offerings, helping it reach No. 2 in sales behind Tesla.
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The company also said on thursday that it would record a $1.1 billion charge in the fourth quarter related to its ongoing restructuring of its China joint venture.