Oct 14 (Reuters) - General Motors ( GM ) said on Tuesday
it will take $1.6 billion in third-quarter charges as it
realigns electric-vehicle plans following the expiration of a
key federal support, which is expected to pressure demand.
Shares of the automaker were down 2.5% in premarket trading.
U.S. carmakers have delayed or canceled new EV models
and battery plants, and pared other EV investments, citing
weaker-than-expected demand.
The market faces further strain after the Trump
administration removed a $7,500 federal tax credit for EVs, a
key support for the industry.
"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 on Tuesday.
The charges comprise a $1.2 billion non-cash impairment
related to EV capacity adjustments and $400 million for
contract-cancellation fees and commercial settlements.