General Motors (NYSE:GM) announced it will take $1.6 billion in charges for the third quarter of 2025 as part of a broader reassessment of its electric vehicle (EV) strategy in response to recent U.S. policy changes. The news pushed the automaker’s 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 costs tied to EV capacity adjustments, along with $0.4 billion for contract cancellation fees and commercial settlements related to EV investments.
GM cited recent U.S. government decisions — including the termination of some EV consumer tax incentives and a rollback in emissions regulation stringency — as the main drivers of its move. The company said these shifts have led to lower expectations for the pace of EV adoption.
The automaker is continuing to reassess its EV capacity and manufacturing footprint, including investments in battery components. GM noted it may record additional material cash and non-cash charges in the future, which could impact its financial results and cash flow.
Despite these adjustments, GM reaffirmed that its current retail lineup of Chevrolet, GMC, and Cadillac electric vehicles will remain available to consumers.
The company had previously made substantial investments and contractual commitments to meet stricter emissions and fuel economy standards. The announced charges will be reflected as adjustments in GM’s non-GAAP financial reporting for the quarter ended September 30, 2025.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
Some portions of this content may have been generated or assisted by artificial intelligence (AI) tools and been reviewed for accuracy and quality by our editorial team.