General Motors said on Thursday it will record a $6 billion charge to unwind parts of its electric vehicle investments as it cuts planned EV production. The move reflects softer consumer demand and shifting policy priorities under the Trump administration, which have altered the outlook for the EV market.
In a regulatory filing, GM said the charge results from scaling back EV output and the subsequent impact on its supply chain. The company explained that most of the writedown, amounting to $4.2 billion in cash, relates to contract cancellations and settlements with suppliers that had ramped up capacity in anticipation of higher production volumes.
Despite the pullback, GM said the charge will not affect its current US lineup of about a dozen electric vehicle models. The automaker added that it remains committed to offering EVs to consumers, even as it adjusts the pace of expansion to align with market realities.
Shares slip as GM restructures EV and China operations
GM said it will book the $6 billion writedown as a special item in its fourth-quarter earnings report. In addition, the company expects smaller charges in 2026 as it continues negotiations with suppliers tied to scaled-back projects. Following the announcement, GM shares fell 2 per cent in after-hours trading, although the stock had earlier closed up 3.9 per cent at $85.13.
In recent months, GM has steadily reduced EV-related operations. The company paused battery production for six months at two joint-venture plants and cut shifts at its EV-only factory in Detroit. Moreover, GM abandoned plans for a new electric vehicle plant in Michigan and decided instead to manufacture gas-powered vehicles at the site.
Separately, GM said it will record an additional $1.1 billion charge in the fourth quarter related to restructuring its joint venture operations in China. The automaker said these steps aim to streamline costs, protect profitability and better position the business for changing global market conditions.
