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GM to Take $7.1 Billion Charge After EV Investment Cutbacks

lite News Desk 2 min read

At a glance

  • GM will record a $7.1 billion charge in Q4 2025 earnings
  • About $6 billion of the charge is tied to North American EV cutbacks
  • Restructuring in China accounts for $1.1 billion of the charge

General Motors has announced it will record a one-time charge of approximately $7.1 billion in its fourth-quarter 2025 financial results. The charge is linked to reduced electric vehicle investments and operational restructuring in China.

The company stated that most of the charge, about $6 billion, is connected to scaling back electric vehicle operations in North America. This includes costs related to asset impairments and the cancellation of supplier contracts.

An additional $1.1 billion of the total charge is attributed to restructuring activities in GM’s Chinese operations. These actions are part of a broader adjustment in the company’s global strategy for electric vehicles and manufacturing.

GM’s recent measures include stopping or reversing previously planned battery and electric vehicle production facilities in Michigan and Ohio. The company has also reassessed its manufacturing footprint to align with revised EV targets.

What the numbers show

  • $7.1 billion total charge will be recorded in Q4 2025
  • $6 billion of the charge is related to North American EV cutbacks
  • $1.1 billion is linked to restructuring in China
  • GM previously recorded a $1.6 billion charge in Q3 2025 for EV capacity reassessment

In the third quarter of 2025, GM had already recorded a $1.6 billion charge tied to reviewing its electric vehicle capacity and manufacturing plans. These earlier actions set the stage for the larger writedown now being reported.

Despite the financial impact, GM confirmed it will continue to offer its current lineup of about a dozen electric vehicle models in the United States. The company has not indicated any immediate changes to its existing EV offerings as a result of the writedown.

Looking ahead, GM expects to incur further cash and non-cash charges related to negotiations with its EV supply base in 2026. The company has stated that these future charges are anticipated to be much lower than the amounts recorded for 2025.

* This article is based on publicly available information at the time of writing.

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