GM reports $6 billion fourth-quarter EV charges amid demand slowdown

General Motors (NYSE: GM) expects to record approximately $6.0 billion in charges for the fourth quarter of 2025, primarily related to its electric vehicle operations in North America, according to a regulatory filing.

The charges include $1.8 billion in non-cash impairments and $4.2 billion in supplier commercial settlements, contract cancellation fees, and other charges that will impact cash flow when paid. GM previously recorded $1.6 billion in EV-related charges in the third quarter of 2025.

The automaker attributed the charges to a reassessment of its EV capacity and manufacturing footprint following reduced consumer demand for electric vehicles in North America. GM cited the termination of certain consumer tax incentives and reduced emissions regulation stringency as factors contributing to the slowdown.

As part of its strategic realignment, GM converted its Orion, Michigan assembly plant from EV production to manufacturing full-size SUVs and pickup trucks with internal combustion engines. The company also sold its interest in Ultium Cells LLC's Lansing, Michigan facility to LG Energy Solution to reduce battery cell capacity.

GM expects to recognize additional material cash and non-cash charges in 2026 related to ongoing commercial negotiations with suppliers, though the company stated these will be "significantly less" than the 2025 EV-related charges.

The company also expects approximately $1.1 billion in additional non-EV related charges for the fourth quarter, with about $0.5 billion in cash impact. These charges primarily relate to restructuring its China joint venture SAIC General Motors Corporate Limited and an additional legal accrual.

GM stated that the strategic realignment does not affect its current retail portfolio of Chevrolet, GMC, and Cadillac EVs in production, which will remain available to consumers.

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