GM reports $6 billion hit from now-unused EV investments

By Summer time Ballentine, sballentine@detroitnews.com

Common Motors Co. introduced one other $6 billion in damages on Thursday on account of unprofitable investments in electrical automobiles.

GM reported the loss to the Securities and Trade Fee as a so-called impairment cost. Impairments replicate property that aren’t anticipated to provide income as initially anticipated.

Together with different EV makers, GM has been rocked by Republicans’ elimination of a $7,500 federal tax credit score for patrons and renters of latest EVs, in addition to President Donald Trump’s work to roll again federal guidelines limiting greenhouse gasoline emissions from automobiles.

“With the termination of sure client tax incentives and the discount within the stringency of emissions laws, client demand throughout the trade for electrical automobiles in North America started to sluggish in 2025,” in line with GM’s SEC submitting. “Because of this, GM has proactively lowered EV capability, together with by shifting the corporate’s meeting plant in Orion, MI, from EV manufacturing to the manufacturing of full-size SUVs and full-size pickups powered by inner combustion engines, the place we consider there’s unmet demand.”

The corporate has additionally lowered battery cell capability by promoting its stake in Ultium Cells LLC’s Lansing facility to LG Vitality Resolution.

The swimsuit features a $4.2 billion money impression, protecting damages for damaged contracts and settlements with suppliers that deliberate to assist the automaker obtain bold electrification targets.

GM initially reported a $1.6 billion EV impairment cost in October.

Ford Motor Co. introduced in December that it will take a majority $19.5 billion in particular prices within the fourth quarter of 2025 because it restructures its Mannequin e division to achieve profitability by 2029 and repurpose EV factories for different purposes.