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5h ago

GM to Record $1.6 Billion Q3 Charge as It Scales Back EV Plans

GM blames weaker policy support for a slower EV adoption outlook.

The 2027 Chevrolet Bolt EV should reach dealers in early 2026. Prices start under $30,000.
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Tesla electric vehicles, including the Cybertruck, charge at stations during the opening of the Tesla Diner and Drive-In restaurant and Supercharger on Santa Monica Blvd in the Hollywood neighborhood Los Angeles on July 21, 2025. (Patrick T. Fallon/AFP/Getty)
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Overview

  • The charge includes about $1.2 billion in non-cash impairments for capacity adjustments and roughly $400 million in cash costs tied mainly to contract cancellations and settlements.
  • GM said the review of its EV capacity and manufacturing footprint is still underway, making additional charges reasonably possible in future quarters.
  • The company said Chevrolet, GMC and Cadillac electric models already in production will remain on sale.
  • GM has shifted plans at plants such as Orion in Michigan toward gasoline models and has earmarked about $4 billion to expand internal-combustion production at Orion, Fairfax and Spring Hill, with reports of two Cadillac EV SUVs ending production at Spring Hill this year.
  • The disclosure comes after the Sept. 30 end of the $7,500 federal EV tax credit and looser emissions rules; GM delivered 66,501 EVs in Q3 on pre-deadline demand, and its shares fell about 2% in premarket trading.