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GM Takes $6 Billion Charge as It Scales Back EV Plans

Softer demand after U.S. incentive cuts forced a refocus on commercially viable electric models.

Overview

  • General Motors will record a $6.0 billion charge in the fourth quarter of 2025 tied to paring back select electric-vehicle projects.
  • Roughly $4.2 billion stems from canceled supplier and production contracts, with about $1.8 billion in asset impairments.
  • GM will retool at least one Detroit plant to build gasoline trucks and SUVs and has temporarily suspended about 5,500 workers.
  • The company says its core U.S. EV lineup remains intact as it concentrates on models with clearer profit potential.
  • The move follows a larger adjustment by Ford after U.S. tax-credit cuts and looser emissions rules cooled EV demand, and GM shares fell nearly 3% on Friday.