Detroit automaker General Motors (GM) has announced that it will record $7.1 billion U.S. in special charges for the fourth quarter of 2025 due to its pullback in electric vehicles (EV).
Part of the special charge will also come from General Motors restructuring efforts in China, said the company.
The charges include $6 billion U.S. related to changes to GM’s EV plans amid soft demand and $1.1 billion U.S. because of its overhaul of a Chinese joint venture.
The charges will impact General Motor’s net income but not its adjusted results, according to the company.
GM’s new write down comes after rival Ford Motor Co. (F) said in December that it will record about $19.5 billion U.S. in special charges related to a restructuring of its EV business.
Additional electric vehicle charges are expected later this year but at a lower amount than 2025′s impairments.
The automaker said it may incur other charges related to its emissions credits due to proposed regulatory changes to greenhouse gas emission standards set in Washington, D.C.
General Motors had invested billions of dollars in electric vehicles that ultimately didn’t succeed. The company was planning to invest $30 billion U.S. in dozens of new EV models.
Unfortunately, consumer interest in EVs waned, leading to a sales slump. Plus, the Trump administration put an end to a $7,500 U.S. federal tax credit that was available to EV buyers.
General Motors is scheduled to report its fourth-quarter financial results on Jan. 27.
GM stock has gained 70% over the last 12 months to trade at $85.13 U.S. per share.
