General Motors has said it will book a one-time earnings hit of $7.1 billion, mostly due to its pullback on electric vehicles in light of shifting U.S. policies.
The Detroit auto giant's fourth-quarter results will be dented by $6 billion in charges connected to reversals on EV investments, according to a securities filing. The remaining $1.1 billion includes costs from the company's restructuring of its China operations.
GM's move follows a $1.6 billion writedown in the third quarter due to pivots away from EVs following a sharp U.S. policy reversal under President Donald Trump.
Trump, who views climate change as a hoax, has killed major initiatives favoring EVs championed by predecessor Joe Biden.
GM's profit warning also comes on the heels of a Ford announcement Dec. 15 that it will write off about $19.5 billion over several years amid the shifting policy outlook.
Throughout Biden's presidency, GM CEO Mary Barra had invested aggressively in building EV capacity. The company announced in 2021 a target of having its cars and trucks emission-free by 2035.
"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," GM said in the filing. "As a result, GM proactively reduced EV capacity."
Besides the EV hit, the $1.1 billion in non-EV charges included costs related to the restructuring of China joint venture SAIC General Motors Corporate Limited, as well as "an additional legal accrual."
