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Investing.com -- General Motors will take $1.6 billion in charges for the third quarter of 2025 as it adjusts its electric vehicle capacity following changes in U.S. government policies.
The announcement sent shares down about 2% in premarket trading.
The charges, approved by GM’s board audit committee on October 7, include $1.2 billion in non-cash impairment and other charges related to EV capacity adjustments. An additional $0.4 billion will cover contract cancellation fees and commercial settlements associated with EV-related investments.
The automaker cited recent U.S. government policy changes as key factors in its decision, specifically pointing to the termination of certain consumer tax incentives for EV purchases and reduced stringency of emissions regulations. These developments have led GM to expect slower EV adoption rates.
The company’s reassessment of its EV capacity and manufacturing footprint, including battery component manufacturing investments, is still ongoing. GM indicated it may recognize additional material cash and non-cash charges in future periods that could affect its results of operations and cash flows.
Despite the strategic realignment, GM confirmed that its current retail portfolio of Chevrolet, GMC and Cadillac EVs in production will remain available to consumers.
The automaker had previously made significant investments and contractual commitments in EV development to help its vehicle fleet comply with emissions and fuel economy regulations that were scheduled to become more stringent.
These charges will be reflected as adjustments in the company’s non-GAAP financial measures for the quarter ended September 30, 2025.
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