GM to take additional $6 billion charge to EV business

General Motors (GM) will take an additional $6 billion charge to its EV business, the automaker said in an SEC filing posted after the bell on Thursday. This comes after softer-than-expected demand for EVs and the loss of the federal EV tax credit at the end of Q3 2025.

“Our review of EV capacity and investments continued throughout the fourth quarter and, as a result, we expect to record charges of approximately $6 billion in the 3 months ended December 31, 2025, primarily in GMNA[GM North America],” the company said in the filing.

GM said charges include non-cash impairments and other non-cash charges of approximately $1.8 billion, as well as cash impacts from supplier settlements, contract cancellation fees, and other charges of $4.2 billion. GM said the charges won’t affect its EBIT-adjusted (earnings before interest and taxes) results.

In other parts of the business. the company also took a $1.1 billion non-EV-related charge regarding a restructuring of its China joint venture with SAIC General Motors (SGM). Of that total, $500 million will have a cash impact.

As for the EV business, GM’s charge taken on Thursday comes on top of the $1.6 billion it took in Q3 following a “reassessment” of its EV business, giving it a total EV write-down of $6.6 billion in total. The costs come as the automaker reduced EV capacity and battery production and pivoted some EV plants to produce gas-powered SUVs and trucks in the future.

GM said it expects to recognize additional cash and non-cash charges related to its EV business in 2026, but the company believes those “will be significantly less than the EV-related charges incurred in 2025.” The company noted that recent federal changes to greenhouse gas emissions standards would impact its sale of emissions credits.

GM’s latest move comes after rival Ford (F) posted a $19.5 billion charge in light of soft demand in its EV business, in particular for large EVs like the F-150 Lightning, which has been discontinued in its current form.

GM will have more to say about these charges when it reports earnings before the bell on Jan. 27.