General Motors (NYSE: GM) is taking a $6 billion impairment charge tied to electric-vehicle investments that are no longer expected to generate profits as originally planned, disclosing the hit in an SEC filing on Thursday.
The automaker described the charge as an impairment, a reset to reflect assets that are now expected to be less profitable, and connected the decision to a 2025 demand slowdown in North America after policy changes.
“With 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,” the company said in its SEC filing.
Within the $6 billion total, GM said $4.2 billion is a cash impact, covering fees for broken contracts and settlements with suppliers that had been lined up to support the company’s electrification buildout.
The $6 billion impairment follows an earlier EV-related impairment charge that GM said was $1.6 billion in October, indicating the company has been marking down EV expectations in steps rather than in a single reset.
GM said it “proactively reduced EV capacity,” including a production pivot at its Orion, Michigan assembly plant away from EVs and toward “full-size SUVs and full-size pickups powered by internal combustion engines,” where GM said it believes it has unmet demand.
GM also reduced planned battery cell capacity by selling its share of Ultium Cells’ Lansing facility to LG Energy Solution, shrinking its exposure to capacity that would have supported a larger EV ramp.
Ford Motor provided a recent comparison point: in December it announced it would take a $19.5 billion impairment in the Q4 2025 via a restructuring plan to make it Model e division to be profitable by 2029.
Information for this briefing was found via The Detroit News and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
