Electric Vehicle Market Pullback
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GM warns of $6B hit to profit on electric vehicle pullback as demand plummets
New York Post· 2026-01-08 21:42
Core Viewpoint - General Motors (GM) is taking a $6 billion charge to unwind some electric vehicle (EV) investments due to changing market conditions and the impact of the Trump administration's policies on demand for EVs [1] Group 1: Financial Impact - The majority of GM's writedown, amounting to a $4.2 billion cash charge, is associated with contract cancellations and settlements with suppliers who had anticipated higher production volumes [2][4] - The charge will be recorded as a special item in GM's fourth-quarter earnings report, with expectations of additional charges in 2026, although these are anticipated to be lower than the 2025 EV charges [5] Group 2: Production and Offerings - Despite the writedown, GM stated that it will not affect its US lineup of approximately a dozen EV models, which is noted as the industry's broadest offering of battery-powered vehicles [4]