GM(US:GM) Jin Rong Jie·2026-01-09 23:08Core Viewpoint - Moody's indicates that the costs associated with General Motors' (GM) electrification transition are exacerbating the already high expenses and will consume a significant portion of the company's free cash flow this year [1] Group 1: Industry Challenges - The automotive industry is facing challenges during the transition to electric vehicles (EVs), which are reflected in the increased costs [1] - The cancellation of consumer electric vehicle tax credits and the relaxation of emission standards have intensified these challenges [1] Group 2: Future Outlook - Moody's believes that the more lenient emission regulations will allow GM to adjust its fleet mix towards more profitable gasoline vehicles, presenting an upside potential for the company's automotive business profit margins and cash flow forecasts for 2026 [1] - The decision to shift production at a Michigan assembly plant from electric vehicles to gasoline vehicles is expected to help meet robust customer demand [1]