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3h ago

GM Books $1.6 Billion Charge as EV Tax Credit’s End Forces Strategy Reset

GM says policy shifts will slow U.S. EV adoption, prompting a review of capacity that could bring further costs.

GM Is Selling More EVs Than Ever. Here's Why It's Out $1.6 Billion: Sales
The 2027 Chevrolet Bolt EV should reach dealers in early 2026. Prices start under $30,000.
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Overview

  • GM’s third‑quarter adjustment includes about $1.2 billion in non‑cash impairment linked to EV capacity changes and $400 million for contract cancellations and commercial settlements.
  • The $7,500 federal consumer credit ended on Sept. 30, lease workarounds were dropped after political pressure, and automakers are now offering company‑funded discounts and lease support.
  • A deadline rush inflated third‑quarter EV sales — GM delivered 66,501 EVs — with researchers expecting demand to decline near term as incentives vanish.
  • GM said its reassessment of EV capacity and manufacturing footprint is ongoing, cautioned that additional charges are possible, and indicated current Chevrolet, GMC, and Cadillac EVs will remain available.
  • Analysts expect more industry write‑downs and a tilt toward hybrids, while tariff headwinds persist after GM reported a $1.1 billion impact in the prior quarter.