GM books $6B writedown as it scales back EV ambitions
General Motors will take a $6 billion writedown to unwind parts of its electric-vehicle strategy, becoming the latest automaker to pull back as U.S. policy changes and consumer demand cool.
Most of the charge — around $4.2 billion — is linked to supplier cancellations and settlements tied to lower EV production volumes, according to a regulatory filing. Ford recently announced an even larger adjustment as it cut EV programs, News.Az reports, citing Reuters.
GM said the writedown will not affect its current U.S. lineup of roughly a dozen EV models and will be recorded as a special item in fourth-quarter results. Additional but smaller charges are expected in 2026.
The move marks a shift for GM, which previously made one of the industry’s most aggressive bets on electrification, at one point pledging to phase out combustion engines by 2035. EV sales had begun gaining traction in late 2024 after new lower-cost models helped GM reach No. 2 in the U.S. behind Tesla, but analysts have since slashed long-term forecasts.
Shares fell 2% in after-hours trading. GM also disclosed a separate $1.1 billion charge tied to restructuring its China joint venture.
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