General Motors to record $7.1 billion loss as it scales back electric vehicle plans

General Motors said it will record a $7.1 billion loss for the last quarter of 2025, primarily to reflect the diminished value of its battery factories and electric-vehicle assembly lines after federal policy changes reduced demand for EVs. The company said the charge also includes compensation it will pay to suppliers for components it no longer needs and about $1.1 billion related to restructuring G.M.

operations in China that are not related to electric vehicles. In a securities filing, G.M. said, "With the termination of certain consumer tax incentives and the reduction in the stringency of emissions regulations, industrywide consumer demand for E.V.s in North America began to slow in 2025." The write-down follows an October announcement of a $1.6 billion third-quarter loss tied to EV assets.

G.M. has scaled back EV plans while ramping up production of large sport utility vehicles and pickups, and it is converting a plant in Orion, Mich., from electric vehicle manufacturing to production of large internal combustion vehicles. Ford last month said it would take a $19.5 billion hit to its profits related to its electric vehicle business, and federal tax credits that covered as much as $7,500 were eliminated at the end of September.

G.M. warned it might book further EV-related losses but said any future charges "will be significantly less than the E.V.-related charges incurred in 2025." The company added that its "strategic realignment of E.V.

Key Topics

Business, General Motors, Orion Plant, China Operations, Electric Vehicles, Federal Tax Credits