"GM is taking a big hit over its EV strategy shift. The Detroit automaker said in a regulatory filing on Tuesday that it is taking $1.6 billion in charges as it adjusts its EV strategy amid expectations that demand is about to slow. In 2021, CEO Mary Barra set out ambitious plans for GM to be electric-only by 2035. Four years later, the Chevrolet owner is joining many of its rivals in rolling back its EV plans and investing in hybrids and gas-powered vehicles."
"In the regulatory filing, GM said it expects the adoption rate of electric vehicles to slow in the US due to the scrapping of the $7,500 tax credit and the Trump administration's loosening of clean air regulations. The charges, which GM expects to be recognized this quarter, include $1.2 billion stemming from adjustments in the company's EV capacity and $400 million in cancellation fees and settlements."
GM will take $1.6 billion in charges this quarter as it adjusts its electric-vehicle strategy amid expectations of slower EV demand after federal subsidy removals and looser emissions rules. The charges comprise $1.2 billion for EV capacity adjustments and $400 million for cancellation fees and settlements. GM is scaling back its push for all-electric vehicles by 2035 and increasing investment in hybrids and gas-powered SUVs and trucks, including a previously announced $4 billion plan to boost US production of conventional vehicles. Other automakers have announced similar rollbacks as US policy support for EVs declines.
Read at Business Insider
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