GM to take $7.1B hit from electric vehicle production changes, China
4 months ago
- #General Motors
- #Electric Vehicles
- #Automotive Industry
- GM to take $7.1B hit from EV production changes and China restructuring.
- Production adjustments made due to slower-than-expected EV demand in North America.
- $6B in costs for unused EV investments and $1.1B from China restructuring.
- Total charges to impact Q4 2025 results, affecting net earnings but not adjusted EBIT.
- Second charge related to EV production changes in 2025, totaling $7.6B.
- Orion facility repurposed for traditional vehicle production; battery capacity reduced.
- EV sales dropped 43% YoY in Q4 2025 after federal tax credit expiration.
- Ford also shifting focus to hybrids and gasoline models, costing $19.5B.
- Potential future impact from regulatory changes to greenhouse gas emission standards.