economy

January 8, 2026

GM to record $7.1 billion in fourth-quarter charges due to EV pullback, China restructuring

GM's announcement comes after Ford said it would record similar writedowns following a broad resetting for the U.S. EV market.

GM to record $7.1 billion in fourth-quarter charges due to EV pullback, China restructuring

TL;DR

  • General Motors will record $7.1 billion in special charges for Q4 2023.
  • The charges are related to a pullback in electric vehicle (EV) plans and restructuring in China.
  • Approximately $6 billion is for EV plan changes due to weakening demand.
  • $1.1 billion is largely for an overhaul of a Chinese joint venture.
  • These charges will affect net income but not adjusted results.
  • GM had previously taken a $1.6 billion charge in Q3 related to EV plan reevaluation.
  • Ford Motor also announced significant charges ($19.5 billion) due to EV pullback.
  • Additional EV charges are expected in 2026, but at a lower amount.
  • Potential additional charges related to emissions credits are possible due to proposed regulatory changes.
  • The US EV segment has seen a sales slump, partly due to the end of a federal tax credit.
  • GM's stock closed up nearly 4% on Thursday, having gained over 50% in 2025.

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