General Motors said it will record $7.1 billion in charges for the fourth quarter of last year related to its electric-vehicle pullback and restructuring in China.
GM specifically cited the ending of certain consumer tax incentives and less strict emissions regulations as reasons for the slowdown.
“With the termination of certain consumer tax incentives and the reduction in the stringency of emissions regulations, industry-wide consumer demand for EVs in North America began to slow in 2025. As a result, GM proactively reduced EV capacity, including by pivoting the Company’s assembly plant in Orion, MI from EV production to the production of full-size SUVs and full-size pickups powered by internal combustion engines.” GM said.
The company stated in its SEC filing that the $6 billion charges include non-cash impairments and related charges of around $1.8 billion, along with supplier settlements, contract cancellations, and other costs totaling about $4.2 billion.
GM said that the charges will affect the company’s net income but not its adjusted results.
The most ambitious U.S. automaker in plans to replace internal combustion engines, GM expected that by 2030, over half of its factories in North America and China would be able to produce electric vehicles. At the same time, it pledged to boost its investment in EV charging networks by nearly $750 million through 2025.
Those plans have been disrupted by significant differences in economic and environmental policies between the Biden and Trump administrations.
“We continue to believe that there is a strong future for electric vehicles, and we’ve got a great portfolio to be competitive, but we do have some structural changes that we need to do to make sure that we lower the cost of producing those vehicles,” GM CFO Paul Jacobson stated following the company’s EV pullback in October.
Following the filing, GM shares fell around 2% in premarket trading.
By CEO NA Editorial Staff
