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10h ago

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

The move reflects a reassessment of electric-vehicle demand after the federal incentive was removed.

BYD electric cars and other car brands for export are stacked at the Taicang port in Suzhou, in eastern China's Jiangsu province, on April 7, 2025.
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Overview

  • GM said the third‑quarter charge totals $1.6 billion, including a $1.2 billion non‑cash impairment tied to EV capacity and $400 million for contract cancellations and commercial settlements.
  • The company now expects a slower EV adoption rate following policy changes that ended the $7,500 consumer tax credit and reduced emissions‑rule stringency.
  • GM said its current Chevrolet, GMC and Cadillac electric models are unaffected by the realignment.
  • Management cautioned that additional material cash and non‑cash charges are reasonably possible as its review continues.
  • Automakers are reworking strategies after a tax‑credit‑driven third‑quarter sales surge, with Ford cutting EV spending and previously planned lease workarounds being dropped under political and regulatory scrutiny.