GM reports $6 billion hit from now-unused EV investments

General Motors Co. on Thursday disclosed another $6 billion hit from unprofitable electric vehicle investments.

GM reported the loss to the Securities and Exchange Commission as what’s known as an impairment charge. Impairment charges reflect assets that are not expected to bring in profits as initially expected.

Along with other EV makers, GM has been shaken by Republicans’ removal of a $7,500 federal tax credit for buyers and lessees of new EVs, as well as President Donald Trump’s work to pull back federal rules limiting vehicle greenhouse gas emissions.

“With the termination of certain consumer tax incentives and the reduction in the stringency of emissions regulations, industry-wide consumer demand for EVs in North America began to slow in 2025,” according to GM’s SEC filing. “As a result, GM proactively reduced EV capacity, including by pivoting the Company’s assembly plant in Orion, MI from EV production to the production of full-size SUVs and full-size pickups powered by internal combustion engines, where we believe we have unmet demand.”

The company also scaled back battery cell capacity by selling its share of Ultium Cells LLC’s Lansing facility to LG Energy Solution.

The charge includes a $4.2 billion cash impact, which covers fees for broken contracts and settlements with suppliers who had planned on helping the automaker meet ambitious electrification goals.

GM initially reported a $1.6 billion, EV-related impairment charge in October.

Ford Motor Co. in December announced it would take a majority of $19.5 billion in special charges in the fourth quarter of 2025 as it restructures its Model e division to be profitable by 2029 and repurposes EV plants for other applications.