GM to take additional $6 billion charge to EV business

Core Viewpoint - General Motors (GM) is taking an additional $6 billion charge to its electric vehicle (EV) business due to weaker-than-expected demand and the loss of the federal EV tax credit at the end of Q3 2025 [1][5]. Group 1: Financial Impact - The $6 billion charge includes approximately $1.8 billion in non-cash impairments and other non-cash charges, along with $4.2 billion in cash impacts from supplier settlements, contract cancellation fees, and other charges [3]. - This charge follows a previous $1.6 billion write-down in Q3, bringing the total EV-related write-down to $6.6 billion [5]. - GM anticipates additional cash and non-cash charges related to its EV business in 2026, but expects these to be significantly less than the charges incurred in 2025 [6]. Group 2: Business Strategy - GM is reducing EV capacity and battery production, shifting some EV plants to produce gas-powered SUVs and trucks in the future [5]. - The company also recorded a $1.1 billion non-EV-related charge due to restructuring its China joint venture with SAIC General Motors, with $500 million having a cash impact [4]. Group 3: Market Context - GM's announcement follows a similar move by Ford, which posted a $19.5 billion charge due to soft demand in its EV business, particularly for large EVs like the F-150 Lightning [7]. - GM plans to provide more details about these charges during its earnings report scheduled for January 27 [7].