GM to Take $1.6 Billion Hit as It Scales Back Electric Vehicle Operations
fliptop writes:
General Motors said on Oct. 14 that it will bear a $1.6 billion loss to scale back its electric vehicle (EV) operations, citing weaker expected demand following recent U.S. policy changes that ended federal EV tax credits and loosened emissions rules:
The Detroit-based automaker said its Audit Committee approved the loss on Oct. 7, covering the three months ended Sept. 30. The company noted that the loss is part of its plan to realign EV production and factory operations to better match customer demand.
The decision was made after the expiration of the $7,500 federal EV tax credit on Sept. 30, part of a broader policy rollback under President Donald Trump.
[...] "Following recent U.S. government policy changes, including the termination of certain consumer tax incentives for EV purchases and the reduction in the stringency of emissions regulations, we expect the adoption rate of EVs to slow," GM said in a filing.
[...] According to the filing, $1.2 billion of the loss is related to non-cash impairments, mostly write-downs of EV assets. The remaining $400 million will be paid in cash for contract cancellations and commercial settlements tied to EV investments.
The company said its review of EV manufacturing and battery component investments is ongoing.
Related:
- Canadian EV Sales Collapse by 35% as Gas Car Purchases Surge
- Tesla Continues Slide As Musk Warns Of "Rough Quarters" Ahead
- Electric Truck-Maker Nikola Falls Into Bankruptcy Joining a Procession of Failed EV Startups
See Also:
- EV Sales In Europe Keep Surging, With One Exception
- EVs Poised To Exceed Half Of Europe's New Car Sales Sooner Than Expected
- EV sales are surging in Europe, except for Tesla
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