\n<\/p>\n
General Motors said on Thursday it will record a one-time earnings hit of $7.1bn in its quarterly financial results, mostly due to its pullback from electric vehicles in light of shifting US policies.<\/p>\n
The Detroit auto giant\u2019s fourth-quarter results will be dented by $6bn in charges connected to reversals on EV investments, according to a securities filing. The remaining $1.1bn includes costs from the company\u2019s restructuring of its China operations.<\/p>\n
GM\u2019s move follows a $1.6bn write-down in the third quarter due to pivots away from EVs following a sharp US policy reversal under Donald Trump.<\/p>\n
Trump, who views the climate crisis as a hoax, has killed major initiatives favoring EVs championed by his predecessor Joe Biden.<\/p>\n
GM\u2019s profit warning also comes on the heels of a Ford announcement on 15 December that it will write off about $19.5bn over several years amid the shifting policy outlook.<\/p>\n
Throughout Biden\u2019s presidency, GM\u2019s CEO, Mary Barra, had invested aggressively in building EV capacity. The company announced in 2021 a target of having its cars and trucks emissions-free by 2035.<\/p>\n
Barra has said that EVs remain a long-term priority, but that the company is modifying investments in response to consumer demand.<\/p>\n
\u201cWith 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,\u201d GM said in the filing. \u201cAs a result, GM proactively reduced EV capacity.\u201d<\/p>\n
Besides the EV hit, the $1.1bn in non-EV charges included costs related to the restructuring of China joint venture SAIC General Motors Corporate Limited, as well as \u201can additional legal accrual\u201d.<\/p>\n","protected":false},"excerpt":{"rendered":"
General Motors said on Thursday it will record a one-time earnings hit of $7.1bn in its quarterly financial results, mostly due to its pullback from electric vehicles in light of shifting US policies. The Detroit auto giant\u2019s fourth-quarter results will be dented by $6bn in charges connected to reversals on EV investments, according to a<\/p>\n","protected":false},"author":1,"featured_media":40936,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49],"tags":[16985,4291,4518,4277,4692,1545,988,5608,13559,4000],"class_list":{"0":"post-40935","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-7bn","9":"tag-automotive","10":"tag-earnings","11":"tag-evs","12":"tag-general","13":"tag-industry","14":"tag-loss","15":"tag-motors","16":"tag-pulling","17":"tag-reports"},"_links":{"self":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts\/40935","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=40935"}],"version-history":[{"count":0,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts\/40935\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/media\/40936"}],"wp:attachment":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=40935"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=40935"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=40935"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}