GM to record $7.1 billion in Q4 charges due to EV, China resets
GM Hummer EV production in Detroit.
Photo: Jeffrey Sauger for General Motors
DETROIT – General Engines It said Thursday it would record special charges of $7.1 billion for the fourth quarter of last year related to a pullback in electric vehicles and restructuring efforts in China.
The Detroit automaker said: public filing The charges include $1.1 billion, including about $6 billion related to changes to EV plans due to weakening demand and $500 million in cash, largely related to a previously announced overhaul of the Chinese joint venture, it said.
The fees will affect GM’s net income but not adjusted results. The announcement was widely expected after the Detroit automaker said in October that it was reevaluating its EV plans, resulting in an initial charge of $1.6 billion in the third quarter.
GM’s new articles came after its crosstown rival Ford Motor It said it expects to record about $19.5 billion in special charges in December related to a restructuring of business priorities and a pullback on all-electric vehicle investments.
“We continue to believe there’s a strong future for electric vehicles and we have a great portfolio to be competitive, but there are some structural changes we need to make to make sure we lower the cost of producing these vehicles,” GM CFO Paul Jacobson told CNBC in October.
Automakers often exclude “special items,” or one-time charges, from their adjusted financial results to give investors a clearer picture of their ongoing underlying business operations.
GM said fourth-quarter EV impairments included non-cash charges of approximately $1.8 billion. The remaining $4.2 billion relates to supplier commercial agreements, contract cancellation fees and other expenses that will have a cash impact when paid.
GM said in its filing on Thursday that additional EV charges are expected to be charged this year, but at a lesser amount than impairments in 2025: “We expect to recognize additional material cash and non-cash charges in 2026 related to ongoing commercial negotiations with our supply base, which we believe will be significantly less than the EV-related charges incurred in 2025.”
The automaker also said it may incur additional fees related to emissions credits due to regulatory changes to greenhouse gas emissions standards proposed by the Trump administration.
GM was among the first automakers to invest billions of dollars in an EV market that ultimately did not materialize. At one point, the company planned to invest $30 billion in electric vehicles, including dozens of new models and battery production capacity.
The U.S. EV segment overall suffered a decline after the Trump administration prematurely ended the $7,500 federal tax credit offered to EV buyers in September.
GM shares closed at $85.13 on Thursday, up nearly 4%. The stock had a successful year in 2025, gaining more than 50% to lead all major publicly traded automakers.
GM will report fourth-quarter results on January 27.
