GM takes $6 billion write-down as EV plans scale back amid policy shifts and weak demand
General Motors will record roughly $6 billion in charges after scaling back EV production amid fading U.S. tax incentives and softer consumer demand; company retains existing EV models while repurposing some plants.
Overview
General Motors will record about $6 billion in fourth-quarter charges linked to reduced electric-vehicle production plans in North America following lower-than-expected demand and policy shifts.
Approximately $4.2 billion of the charges are supplier settlements and cancellation fees; $1.8 billion are non-cash impairments and related charges.
GM will repurpose some U.S. plants — such as Orion, Michigan — to build combustion-engine trucks and SUVs while keeping Cadillac, Chevrolet and GMC EVs on sale.
The U.S. clean vehicle tax credit ended, cutting up to $7,500 from buyers' costs, and federal emissions standards were relaxed, contributing to slower EV sales.
Despite the EV setbacks, GM grew U.S. sales 6% in 2025 and saw NEV sales in China rise 22.6%, showing stronger demand overseas and continued sales growth.
Analysis
Center-leaning sources frame GM’s EV pullback as the predictable fallout of overambition and poor policy, emphasizing financial losses, dealer resistance, and subsidy rollbacks. Editorial choices — loaded words ('retreat', 'pay the price'), selective emphasis on write-downs over long-term strategy, and a consumer-friendly 'camper van' pivot — push skepticism of EV strategy.
Sources (5)
FAQ
GM is taking a roughly $6 billion write-down because it is scaling back its North American EV production plans amid weaker-than-expected U.S. demand, the expiration of the federal clean vehicle tax credit, relaxed emissions rules, and the resulting need to cancel or renegotiate supplier contracts and write down EV-related assets.[1][2]
GM plans to repurpose some U.S. plants, such as the Orion Assembly plant in Michigan, from future electric pickup production to building internal-combustion Cadillac Escalade, Chevrolet Silverado, and GMC Sierra pickups, and is idling or slowing some battery operations, moves that are tied to layoffs and restructuring as the company adjusts capacity to demand.
No; GM says it will continue offering roughly a dozen EV models in the U.S. and keep them available to consumers, but will produce them in lower volumes while extending the life and production of profitable combustion-engine trucks and SUVs.[2]
The expiration of the U.S. clean vehicle tax credit, which had cut up to $7,500 from EV purchase prices, and the relaxation of federal emissions standards reduced financial incentives and regulatory pressure for EV adoption, contributing to slower sales and making GM’s previously planned EV volumes harder to justify economically.
GM is still investing in EVs and so-called new energy vehicles overseas because demand remains stronger in markets like China, where GM’s NEV sales rose more than 20%, supporting continued growth in electrified models even as the company slows its EV rollout and investment pace in the U.S.[1]
History
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