"General Motors, which had led the way among U.S. automakers with plans to convert production to an electric fleet of vehicles, said in a regulatory filing on Tuesday that it will have to book charges that include non-cash impairment and other charges of $1.2 billion due to EV capacity adjustments. There's also $400 million in charges mostly related to contract cancellation fees and commercial settlements associated with EV-related investments."
"Shares fell less than 2% before the opening bell Tuesday. The EV tax credit ended last month. The clean vehicle tax credit was worth $7,500 for new EVs and up to $4,000 for used ones. GM warned that it may take additional hits as it adjusts production, with non-cash charges potentially impacting operations and cash flow in the future. The company said that its EV capacity realignment doesn't impact its retail portfolio of Chevrolet, GMC and Cadillac EVs currently in production, and that it expects those models to remain available to consumers."
General Motors will record a $1.6 billion negative impact next quarter after U.S. EV tax incentives were slashed and emissions rules were relaxed. The charges comprise $1.2 billion in non-cash impairment tied to EV capacity adjustments and $400 million mainly for contract cancellations and commercial settlements related to EV investments. Shares fell less than 2% premarket. The EV tax credit, previously up to $7,500 for new and $4,000 for used vehicles, ended last month. Current Chevrolet, GMC and Cadillac EVs in production are expected to remain available, but additional non-cash charges could affect operations and cash flow.
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