GM to take $6 billion writedown on EV battery pullback
- GM’s $6 billion charge linked to EV investment reduction
- Most of the writedown tied to supplier payouts for canceled work
- GM is latest automaker to walk back EV plans after federal policy changes
DETROIT, Jan 8 (Reuters) – General Motors (GM.N), said on Thursday it would take a $6 billion charge to unwind some electric-vehicle investments, the latest car company to pull back from EVs in response to the Trump administration’s policies and fading demand.
The charge stems from reducing its planned EV production and the fallout on the supply chain, GM said in a regulatory filing, and comes weeks after rival Ford Motor (F.N), announced a similar but much bigger charge.
Most of GM’s writedown – a $4.2 billion cash charge – is related to contract cancellations and settlements with suppliers, who had planned for much higher production volumes before the market turned.
GM said the writedown would not affect its U.S. lineup of roughly a dozen EV models, which is the industry’s broadest offering of battery-powered vehicles. “We plan to continue to make these models available to consumers,” it said in its filing.
The company will record the charge as a special item in its fourth-quarter earnings report. It expects to incur additional charges in 2026 as a result of negotiations with its supply base, but expects them to be less than its 2025 EV charges.
Shares fell 2% in after-hours trading. They ended the regular session on Thursday up 3.9% at $85.13.
GM PLACED A BIG BET ON EVs
Many automakers, including GM’s crosstown rival, Ford, have been dialing back factory work on EVs since last summer, when U.S. President Donald Trump’s massive tax and spending package darkened the outlook for the EV market. Sales of battery-powered vehicles have cratered following the elimination on September 30 of a $7,500 federal tax credit for EV buyers.
Ford in December said it would take a $19.5 billion writedown over several quarters as it canceled several EV programs, including the fully electric version of its F-150 Lightning truck and an additional electric truck and van.
GM, the largest U.S. automaker by sales, made one of the biggest bets on EVs among global automakers, at one point vowing to essentially phase out internal-combustion cars and trucks by 2035.
While the company has not publicly walked back the 2035 goal, analysts have sharply cut the industry’s EV sales forecast into the next decade for the U.S., GM’s largest and most profitable market. GM CEO Mary Barra has said the company will respond to customer demand.
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GM to take $6 billion writedown on EV battery pullback, source
