Overview
- GM disclosed $7.1 billion in fourth-quarter special charges, including about $6 billion tied to unwinding electric-vehicle investments and $1.1 billion for restructuring its China joint venture.
- Of the EV-related amount, roughly $4.2 billion is a cash hit for supplier settlements and contract cancellations, with about $1.8 billion recorded as non-cash impairments.
- The company said the charges will be treated as special items that do not alter adjusted results, and it plans to keep its U.S. electric models available to buyers.
- GM expects additional EV-related charges in 2026 from further supplier negotiations, which it believes will be significantly smaller than those recorded for 2025.
- Recent operational steps include a six-month halt at two JV battery plants and reduced shifts at a Detroit EV factory, as the industry contends with slower sales after the federal $7,500 EV tax credit ended.