"General Motors said on Thursday it will record a one-time earnings hit of $7.1bn in its quarterly financial results, mostly due to its pullback from electric vehicles in light of shifting US policies. The Detroit auto giant's fourth-quarter results will be dented by $6bn in charges connected to reversals on EV investments, according to a securities filing. The remaining $1.1bn includes costs from the company's restructuring of its China operations."
"GM's move follows a $1.6bn write-down in the third quarter due to pivots away from EVs following a sharp US policy reversal under Donald Trump. China's BYD overtakes Tesla as world's biggest electric car seller Trump, who views the climate crisis as a hoax, has killed major initiatives favoring EVs championed by his predecessor Joe Biden. GM's profit warning also comes on the heels of a Ford announcement on 15 December that it will write off about $19.5bn over several years amid the shifting policy outlook."
"Throughout Biden's presidency, GM's CEO, Mary Barra, had invested aggressively in building EV capacity. The company announced in 2021 a target of having its cars and trucks emissions-free by 2035. Barra has said that EVs remain a long-term priority, but that the company is modifying investments in response to consumer demand. With the termination of certain consumer tax incentives and the reduction in the stringency of emissions regulations, industry-wide consumer demand for EVs in North America began to slow in 2025."
General Motors will record a one-time $7.1 billion earnings hit in the fourth quarter, primarily from reversing electric-vehicle investments. About $6 billion of the charge is tied to EV investment reversals and $1.1 billion covers China joint-venture restructuring and an additional legal accrual. The company took a $1.6 billion write-down in the third quarter amid earlier EV pivots. GM cites slowing North American consumer demand after termination of certain tax incentives and eased emissions rules, and has proactively reduced EV capacity while maintaining EVs as a long-term priority but modifying near-term investments.
Read at www.theguardian.com
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