GM takes $1.6 billion charge as it reassesses EV plans
General Motors booked a $1.6 billion impairment charge after federal policy changes ended EV tax credits and eased emissions rules, slowing electric vehicle adoption, analysts said.
- On Tuesday, General Motors Co. reported a $1.6 billion impairment charge tied to unused EV capacity after tax incentives were cut and emissions rules relaxed under President Donald Trump.
- This year, Republicans removed a $7,500 clean vehicle tax credit, and GM said recent U.S. policy changes, including ending incentives and relaxed emissions rules under President Donald Trump, will slow EV adoption.
- GM said the bulk — $1.2 billion — is tied to idle EV production assets, and about $400 million stems mostly from canceled contracts with suppliers.
- Investors reacted as shares fell less than 2% Tuesday, and General Motors Co. warned it may take additional hits as it adjusts production with non-cash charges.
- Analysts predict a steep drop-off in EV sales in the coming months, despite General Motors Co.'s nearly $750 million pledge for EV charging networks and planned EV-capable factories.
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91 Articles
General Motors to take $1.6 billion hit following government U-turn on massive program: 'We're … going to scale up much slower now'
American automaking giant General Motors was forced to absorb a $1.6 billion third-quarter loss due to the abrupt reversal of a long-standing federal incentive, the New York Times reports. What's happening? GM filed documents with the Securities and Exchange Commission on Oct. 14, disclosing a combined loss totaling $1.6 billion. As recently as August 2024, EV Magazine touted GM's "bold" turn toward an "All-Electric Future," detailing the automa…
General Motors (GM) will have a negative impact of $1.6 billion in its next quarter as a result of the drastic reduction in tax incentives for electric vehicles in the United States and the relaxation of emission rules.
GM takes $1.6 billion hit as incentives for EVs slashed and emission rules eased
General Motors will book a negative impact of $1.6 billion in its next quarter after tax incentives for electric vehicles were slashed by the U.S. and rules governing emissions are relaxed. S
The largest American automaker, General Motors (GM), will suffer a loss of $1.6 billion in the next quarter as the US reduces tax breaks for electric vehicles (EVs) and relaxes emission limits, a policy of President Donald Trump.
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