General Motors said Thursday it will book a one-time earnings hit of $7.1 billion, mostly due to its pullback on electric vehicles in light of shifting US policies.
The Detroit auto giant's fourth-quarter results will be dented by $6 billion in charges connected to reversals on EV investments, according to a securities filing. The remaining $1.1 billion includes costs from the company's restructuring of its China operations.
GM's move follows a $1.6 billion writedown in the third quarter due to pivots away from EVs following a sharp US policy reversal under President Donald Trump.
Trump, who views climate change as a hoax, has killed major initiatives favoring EVs championed by predecessor Joe Biden.
GM's profit warning also comes on the heels of a Ford announcement December 15 that it will write off about $19.5 billion over several years amid the shifting policy outlook.
Throughout Biden's presidency, GM CEO Mary Barra had invested aggressively in building EV capacity. The company announced in 2021 a target of having its cars and trucks emission-free by 2035.
Barra has said that EVs remain a long-term priority, but that the company is modifying investments in response to consumer demand.
"With the termination of certain consumer tax incentives and the reduction in the stringency of emissions regulations, industry-wide consumer demand for EVs in North America began to slow in 2025," GM said in the filing. "As a result, GM proactively reduced EV capacity."
Besides the EV hit, the $1.1 billion in non-EV charges included costs related to the restructuring of China joint venture SAIC General Motors Corporate Limited, as well as "an additional legal accrual."
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