Posted on 16 Oct 2025
US auto giant General Motors says it is incurring a $1.6 billion charge in Q3 due to “a planned strategic realignment” of its electric vehicle manufacturing capacity.
In a securities filing on Tuesday, the group said that it will adjust its US EV footprint amid an expected slowdown in the adoption rate of EVs. GM attributes it to policy changes implemented by the Trump administration, including the termination of a series of tax incentives for EV buyers and a loosening of emissions regulations.
The extra charge includes a non-cash impairment of $1.2 billion derived from adjustments to GM’s EV production capacity, plus a $400 million cash charge related to contract cancellation fees and commercial settlements for EV-related investments, Kallanish learns. Warning that there may be further charges potentially impacting its bottom line, GM says it continues to reassess its EV capacity and manufacturing footprint, including battery component manufacturing.
“The outlook for EV sales in coming quarters suggests battery electric vehicles (BEVs) will remain a loss centre for longer as scaling EV production will take longer than expected,” analysts at Jefferies comment.
According to Bank of America, the carmaker’s Q3 performance has been affected by production volatility at Silao and Wentzville, which were partially offset by stronger international performance, specifically in China. GM’s Q3 sales in the Asian country rose by 10% year-on-year to 470,000 units, led by continued growth in new energy vehicles (NEVs), including BEVs. In the US, its BEV sales hit a record 66,501 deliveries with total sales up 8% to 710,347 units.
Source:Kallanish
