General Motors reports $7.1bn one-time earnings hit after pulling back from EVs

General Motors said it will record a one-time $7.1bn charge in its quarterly results, with about $6bn tied to reversals of electric-vehicle investments and $1.1bn linked to China restructuring and legal accruals; the company cited reduced tax incentives and looser emissions rules that slowed North American EV demand in 2025.

General Motors will record a one-time $7.1bn earnings hit in its quarterly results, mostly tied to a pullback from electric-vehicle investments. The company filed the disclosure with securities regulators and said shifting US policy and changes to consumer incentives and emissions rules had reduced demand for EVs in North America in 2025. About $6bn of the charge is linked to reversals of EV investments, while roughly $1.1bn covers costs from restructuring its China joint venture and an additional legal accrual. The filing follows earlier write-downs and similar announcements from other automakers amid the evolving policy outlook. Key details: - General Motors will record a one-time $7.1bn charge in the quarter, according to its securities filing. - Approximately $6bn of the charge is related to reversals of EV investment and capacity reductions. - Around $1.1bn covers restructuring costs for the China joint venture and an additional legal accrual. - GM said the end of certain consumer tax incentives and reduced stringency in emissions regulations contributed to slower EV demand in North America in 2025. - The company previously took a $1.6bn write-down in the third quarter, and other automakers have announced large write-offs amid the same policy shifts. Summary: The one-time charge will reduce reported earnings for the quarter and reflects GM’s decision to adjust EV capacity and investments in response to shifting policy and consumer demand. Undetermined at this time.