GM To Write-Off $6 Billion In Electric Car Scale Down

General Motors said it will take about $6 billion in write-downs tied to a pullback from some electric vehicle investments, underscoring how quickly the momentum behind EVs has cooled in the United States following the end of federal purchase incentives and a broader slowdown in consumer demand.

The automaker disclosed the charges in a regulatory filing, saying most of the costs stem from terminating or restructuring supplier contracts and other commitments that were made when EV sales were expected to grow more rapidly. About $4.2 billion of the total charge is expected to result in cash costs, with the balance largely made up of non-cash accounting adjustments.

GM said the write-down will be recorded as a special item in its fourth-quarter results, which are scheduled to be reported later this month. The company also warned that additional EV-related charges could follow in 2026 as it continues negotiations with suppliers, though it said any future costs are expected to be smaller than those already disclosed.

The move reflects a broader reassessment by U.S. automakers as the EV market loses some of the support that fueled its rapid expansion earlier in the decade. The expiration of the $7,500 federal tax credit for electric vehicles removed a key incentive for buyers, leading to a sharp drop in showroom traffic for battery-powered models late last year. Analysts have said the end of the credit triggered a short-lived surge in purchases ahead of the deadline, followed by a pronounced slump.

GM has been one of the most aggressive traditional automakers in rolling out electric vehicles, with roughly a dozen models either on sale or recently launched across its Chevrolet, GMC, Cadillac, and Buick brands. The company said it will continue to sell those vehicles and has not announced plans to immediately discontinue any existing EV nameplates.

Still, the write-down marks a significant retreat from the ambitious electrification targets GM laid out earlier in the decade, when it pledged to phase out most gasoline-powered vehicles by 2035 and committed tens of billions of dollars to EVs and related technologies. Like other automakers, GM is now recalibrating those plans to better align with current market realities.

In addition to the EV-related charge, GM said it expects to record about $1.1 billion in restructuring costs tied to its joint venture operations in China. That move reflects weakening demand in the world’s largest auto market, where price wars and slower economic growth have pressured both domestic and foreign manufacturers.

Industry analysts say GM’s write-down highlights how challenging the economics of EV production have become without government subsidies and with battery costs remaining elevated. Many forecasters now expect electric vehicles to make up a smaller share of U.S. new-car sales in 2026 than previously projected, as consumers gravitate toward hybrids and efficient gasoline-powered models that offer lower upfront costs and fewer infrastructure concerns.

GM is not alone in pulling back. Ford, as we reported to you, recently disclosed plans to take a much larger charge related to the cancellation of several electric vehicle programs, including an all-electric version of its F-150 pickup. Other automakers have delayed factory investments, trimmed EV lineups, or shifted resources toward hybrids, which have seen strong demand as buyers look for fuel savings without the limitations of full electrification.

Despite the EV slowdown, GM said its overall business remains supported by strong sales of pickup trucks and sport utility vehicles, which continue to generate the bulk of its profits. The company has increasingly emphasized a more balanced strategy that includes electric vehicles, hybrids, and traditional internal-combustion models, rather than an all-in bet on EVs.

For now, GM’s write-down stands as one of the clearest signals yet that the transition to electric vehicles in the United States is likely to be slower and more uneven than many automakers once anticipated, shaped as much by consumer behavior and policy shifts as by long-term environmental goals.