A Chevrolet Silverado EV and a Chevrolet Brightdrop, which is assembled in Canada, are seen on display at the Canadian International AutoShow in Toronto, Ontario, Canada, February 13, 2025.
Carlos Osorio | Reuters
DETROIT — General Motors’ third-quarter results next week will include a $1.6 billion impact from its all-electric vehicle plans not playing out as planned.
The Detroit automaker Tuesday morning in a public filing said $1.2 billion of the impact will be non-cash charges as a result of adjustments to its EV capacity. The other $400 million in cash is primarily related to contract cancellation fees and commercial settlements associated with EV-related investments, according to the filing.
GM was among the earliest to invest billions of dollars in an EV market that didn’t culminate. At one point, the company was planning to invest $30 billion by this year in EVs, including dozens of new models and capacity for battery production.
It also comes amid changing regulations regarding EVs — particularly the end of $7,500 in federal tax credits — under the Trump administration as compared to President Joe Biden, who championed the vehicles.
“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 the filing.
GM’s EV writedown comes more than a year after crosstown rival Ford Motor announced a $1.9 billion impact from its EV plans.
Ford’s included about $400 million for the writedown of manufacturing assets, as well as additional expenses and cash expenditures of up to $1.5 billion that included canceling a large, electric three-row SUV that was already far in development and delaying production of its next-generation electric full-size pickup truck.
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