GM Takes $6 Billion Writedown as EV Strategy Shifts Amid Policy Changes
General Motors is recalibrating its electric vehicle ambitions with a $6 billion writedown, joining Ford Motor in scaling back production plans. The charge reflects canceled supplier contracts and reduced expectations for EV demand—a stark reversal from earlier bullish forecasts.
The move follows the TRUMP administration's elimination of the $7,500 federal EV tax credit, exacerbating softening consumer interest. GM's shares dipped 2% post-announcement despite a 3.9% gain during regular trading, signaling investor skepticism about the automaker's pivot.
Notably, $4.2 billion of the charge stems from renegotiating supplier agreements tied to abandoned EV volume targets. The company anticipates further restructuring costs through 2026 as it rebalances its supply chain for a slower electrification timeline.
