"General Motors will take a $1.6bn hit in the third quarter as it reshapes its electric vehicle strategy following the scrapping of a key federal incentive that is likely to dampen demand. The carmaker, based in Detroit, Michigan in the US, announced the news on Tuesday. list of 4 itemsend of list The company's disclosure is one of the clearest indications yet that United States automakers are scrambling to adapt their production plans in response to slowing demand for electric vehicles (EVs)."
"The EV market also faces fresh strain after the administration of US President Donald Trump scrapped a $7,500 federal tax credit for electric vehicles, a key industry support, with auto executives warning of a sharp near-term drop in battery-car sales before an eventual rebound. In a filing, GM said it expects the adoption rate of EVs to slow following recent policy changes, including the termination of certain consumer tax incentives and reduced emissions-rule stringency."
"The charge is a special item driven by our expectation that EV volumes will be lower than planned because of market conditions and the changed regulatory and policy environment, GM told the Reuters news agency in a statement. Carmakers are also working to cushion the impact of Trump's tariffs, which forced GM to take a $1.1bn hit in the previous quarter."
General Motors will record a $1.6bn special charge in the third quarter as it adjusts its electric vehicle strategy amid weakened demand. The removal of a $7,500 federal tax credit and looser emissions rules are expected to slow EV adoption rates. GM cited market conditions and a changed regulatory environment as drivers of lower-than-planned EV volumes. Trade headwinds and tariffs have already cost GM previously, with a $1.1bn hit earlier and a $4bn–$5bn estimated bottom-line impact this year, and the company said it could offset at least 30% of that impact.
Read at www.aljazeera.com
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