GM Hummer EV production in Detroit.
Photo by Jeffrey Sauger of General Motors
Detroit – general motors announced Thursday that it would record $7.1 billion in special charges related to the exit of electric vehicles and restructuring efforts in China in the fourth quarter of last year.
The Detroit automaker said in a public filing that the charges include about $6 billion related to changes to its EV plans amid weak demand and $1.1 billion in cash, including $500 million primarily related to a previously announced review of its China joint venture.
This charge will impact GM’s net income but not its adjusted results. The announcement had been widely expected since the Detroit automaker announced in October that it was reviewing its EV plans, which would initially result in costs of $1.6 billion in the third quarter.
GM’s new writedown follows crosstown rival ford motor announced in December that it expects to record approximately $19.5 billion in special charges related to realigning its business priorities and reducing investment in fully electric vehicles.
GM Chief Financial Officer Paul Jacobson told CNBC in October: “We continue to believe there is a strong future for electric vehicles and we have a strong portfolio to be competitive, but structural changes are needed to ensure we lower the cost of producing electric vehicles.”
Automakers typically exclude “special items,” or one-time charges, from their adjusted financial results to give investors a clearer picture of their core ongoing business operations.
GM said the fourth quarter EV impairment included approximately $1.8 billion in non-cash charges. The remaining $4.2 billion relates to supplier commercial payments, termination fees and other charges that, when paid, will impact cash.
GM expects to incur additional EV-related costs this year, but the amount will be lower than the 2025 impairment charge, it said in a filing Thursday. “We expect to recognize additional cash and non-cash charges in 2026 related to continuing commercial negotiations with our supply base, which we believe will be significantly less than the EV-related costs we will incur in 2025.”
The company also said the Trump administration’s proposed regulatory changes to greenhouse gas emissions standards could result in additional fees related to emissions credits.
GM was one of the first automakers to invest billions of dollars in the EV market, which ultimately never materialized. The company at one time had plans to invest $30 billion in EVs, including dozens of new models and battery production capacity.
The entire U.S. EV segment has suffered a sales slump since the Trump administration early ended the $7,500 federal tax credit previously available to EV buyers in September.
GM stock closed Thursday at $85.13, up about 4% on the day. The company’s stock had a great year in 2025, rising more than 50% to lead all major publicly traded automakers.
GM is scheduled to announce its fourth quarter financial results on January 27th.
