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yesterday

GM Books $7.1 Billion Q4 Charges as It Scales Back EV Plans, Restructures China Venture

The move underscores weaker U.S. demand after the $7,500 EV incentive expired.

GMC Hummer electric vehicles on the production line at General Motors' Factory ZERO all-electric vehicle assembly plant in Detroit, Michigan, U.S., on Wednesday, Nov. 17, 2021. General Motors invested $2.2 billion in Factory ZERO, the single largest investment in a plant in GM history.
Image
Canada geese walk past a GM logo at the GM Oshawa Assembly plant in Oshawa, Ontario, Canada, March 14, 2025. REUTERS/Carlos Osorio.

Overview

  • The total includes about $6 billion tied to changes in GM’s electric-vehicle plans and $1.1 billion for overhauling a Chinese joint venture.
  • EV-related charges comprise roughly $1.8 billion in non-cash impairments and $4.2 billion for supplier settlements, contract cancellations and other cash costs.
  • GM will record the items as special charges that do not affect adjusted results and expects additional, smaller supplier-related charges in 2026.
  • The company said its U.S. lineup of roughly a dozen EV models will remain available even as planned production is reduced.
  • Operational steps have included pausing battery output at two joint-venture plants and cutting an EV-only Detroit factory to one shift as EV sales cooled after the tax credit’s removal; Ford previously disclosed a larger writedown.