US EditionGM to take $6 billion writedown on EV pullback
GM's $7.1 billion Q4 charges mainly include $6 billion for EV plan cutbacks and $1.1 billion for China JV restructuring amid weakening U.S. EV demand and supplier settlements.
- On Thursday, General Motors said in a filing that it will record special charges for the fourth quarter of last year tied to its EV pullback and China joint venture overhaul, ahead of its Jan. 27 results.
- Facing weakening EV demand, GM reevaluated and took a $1.6 billion charge, with GM CFO Paul Jacobson saying, 'We continue to believe that there is a strong future for electric vehicles.'
- The filing shows $1.1 billion, including $500 million cash, tied to the Chinese joint venture overhaul and $4.2 billion related to suppliers and commercial partners with cash impact.
- The company said the special charges will reduce GAAP net income for the quarter but not affect adjusted results, and investors pushed General Motors shares higher after a 2025 gain of more than 50%.
- In the broader industry context, GM expects to recognize additional 2026 charges related to continued commercial negotiations with suppliers and may incur emissions-credit costs due to proposed greenhouse-gas standards, similar to Ford's multibillion-dollar restructuring charges in December.
41 Articles
41 Articles
By Michelle Chapman - General Motors will face charges of approximately $6 billion as electric vehicle sales stall after the U.S. government reduced tax incentives for purchasing them and relaxed vehicle emissions standards. Shares fell nearly 3% on Friday. The charges, to be recorded in the fourth quarter, follow an October announcement that the Detroit-based automaker will take a $1.6 billion charge for the same reason in the previous quarter,…
Major car brand faces £4.5billion hit after scrapping electric vehicle plans as demand plummets
One of the most successful car brands in the world has announced a huge $6billion (£4.5billion) hit to the business to axe some electric vehicle investments.General Motors said it would take the $6billion charge just months after a $1.6billion charge after changing its electric car plans.The Michigan-based manufacturer said the fees came after reducing its planned electric vehicle production and additional fallout from the wider supply chain.The…
Zero Hedge
Nemos News NetworkGM Cuts EV Exposure After Policy Shift, Takes $6B Charge
ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero
GM says its bet on EVs made it bleed billions more, and the losses won't stop anytime soon
GM said it would record about $6 billion in fourth-quarter charges tied to scaling back EV plans in the US.Bill Pugliano/Getty ImagesGM says it will take a $6 billion hit tied to scaling back its EV strategy in the US.The automaker warns that additional EV-related costs are likely in 2026 as supplier talks continue.GM had already taken a $1.6 billion EV writedown in the third quarter.General Motors has warned investors that its electric-vehicle …
GM Takes $7.1 Billion Hit in 4th Quarter After EV Pullback, China Reset
General Motors said Thursday it will take a $7.1 billion hit in special charges for the last three months of 2025 after pulling back from electric vehicles (EVs) and restructuring in China, according to the Detroit automaker’s federal filing. The losses include $6 billion related to disappointing results from its EV brands after declining sales last year, and $1.1 billion related to an overhaul of a joint venture in China. GM had invested signif…
Coverage Details
Bias Distribution
- 54% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
