General Motors announced that it will record a total of $7.6 billion in write-downs tied to its electric-vehicle and battery investments. The bulk of these charges—approximately $6 billion—will be taken in the fourth quarter of 2025, reflecting contract cancellations, supplier settlements and asset impairments as GM scales back planned EV capacity in North America. Earlier in October, GM had already recognized $1.6 billion in similar charges, bringing the cumulative EV-related impact to $7.6 billion for the year.

GM reported a 43 percent decline in EV sales in the fourth quarter after U.S. federal tax credits were reduced and emissions standards were relaxed. In response, the company has curtailed production volumes at its Orion and Factory Zero plants and reallocated manufacturing capacity toward higher-margin trucks and SUVs powered by internal-combustion or hybrid drivetrains. These moves are expected to reduce EV output in North America by roughly 30 percent compared with the peak plan announced in early 2023.

In its SEC filing, GM reiterated that the $7.6 billion charge will be classified as a special item in Q4 earnings and will not affect the pricing or availability of its existing electric models. The automaker warned that additional EV-related costs could materialize in 2026 during ongoing supplier negotiations, though it expects these charges to be significantly lower than last year’s. Management has emphasized a renewed focus on near-term profitability, forecasting a mid-single-digit operating margin for its core North American business in 2026.