WASHINGTON (dpa-AFX) - General Motors (GM) said the Audit Committee of the Board approved charges of $1.6 billion in GM North America in the three months ended September 30, 2025, based on a planned strategic realignment of EV capacity and manufacturing footprint to consumer demand. These charges include non-cash impairment and other charges of $1.2 billion as a result of adjustments to EV capacity. Also, the company has incurred charges of $0.4 billion, primarily related to contract cancellation fees and commercial settlements associated with EV-related investments, which will have a cash impact.
General Motors stated that, following recent U.S. Government policy changes, including the termination of certain consumer tax incentives for EV purchases and the reduction in the stringency of emissions regulations, the company expects the adoption rate of EVs to slow. These developments have caused the company to reassess EV capacity and manufacturing footprint.
General Motors noted that the reassessment of EV capacity and manufacturing footprint, including investments in battery component manufacturing, is ongoing, and it is reasonably possible that the company will recognize additional future material cash and non-cash charges that may adversely affect results of operations and cash flows.
Shares of General Motors are down 1.8% in pre-market trade on Tuesday.
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