Most of GM’s writedown stems from a $4.2 billion cash charge linked to supplier contract cancellations after EV demand slowed.
General Motors would take a $6 billion charge to unwind parts of its electric vehicle investments, as the US automaker pulls back amid policy shifts under the Trump administration and weakening EV demand.
The charge follows a reduction in GM’s planned EV production and related disruption across its supply chain, the company said in a regulatory filing. Most of the writedown, a $4.2 billion cash charge, is linked to contract cancellations and settlements with suppliers that had geared up for far higher production volumes. The charge will be recorded as a special item in GM’s fourth quarter earnings. The company said it expects further charges in 2026 tied to supplier negotiations, though at lower levels.
GM said the writedown would not affect its current US portfolio of about a dozen EV models, the broadest range offered by any automaker. Shares fell 2% in after hours trading, after closing up nearly 4% during the regular session.
The move comes weeks after Ford announced a much larger $19.5 billion writedown as it cancelled several EV programmes. Automakers across the industry have scaled back EV investments following the elimination of a $7,500 federal tax credit for buyers, which hit sales sharply after September.
GM had made one of the industry’s boldest bets on EVs, once pledging to phase out internal combustion vehicles by 2035. While that target remains officially unchanged, analysts have lowered long term EV sales forecasts. GM chief executive Mary Barra has said the company will align production with customer demand.
The company also announced a separate $1.1 billion fourth quarter charge related to restructuring its China joint venture. Industry wide EV sales growth slowed to 1.2% in 2025, with EVs expected to account for about 6% of US vehicle sales in 2026.
