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GM takes $1.6 billion charge as it reassesses EV plans
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GM takes $1.6 billion charge as it reassesses EV plans
Oct 14, 2025 3:59 AM

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.

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