GM(US:GM) Ge Long Hui A P P·2025-10-14 10:48Core Viewpoint - General Motors (GM) will incur a $1.6 billion charge due to adjustments in its electric vehicle (EV) production plans, which includes approximately $1.2 billion in non-cash impairment and other costs related to capacity adjustments [1] Financial Impact - The $1.6 billion charge consists of about $1.2 billion in non-cash impairment and other expenses, primarily due to adjustments in EV production capacity [1] - The remaining portion of the charge relates to contract cancellation costs and commercial settlements associated with EV investments, which will have a direct impact on cash flow [1] Policy Changes - The recent cancellation of EV tax credits by the Trump administration and the relaxation of fuel economy and emissions standards have led automakers to favor the sale of more profitable gasoline vehicles, resulting in a reduction in EV production [1] - GM anticipates that the pace of EV adoption will slow down due to recent changes in U.S. government policies, including the termination of certain consumer tax incentives for EV purchases and the loosening of emissions standards [1]