GM Hummer EV production in Detroit.
Photo by Jeffrey Sauger for General Motors
DETROIT – General engines said Thursday it would record $7.1 billion in special charges for the fourth quarter of last year related to an exit from the electric vehicle sector and restructuring efforts in China.
The Detroit automaker said in a public filing that the charges include about $6 billion related to changes to its electric vehicle plans amid weakening demand and $1.1 billion, including $500 million in cash, largely related to the previously announced revamp of a Chinese joint venture.
The charges will impact GM’s net income but not adjusted earnings. The announcement was widely expected after the Detroit automaker announced in October that it was reevaluating its electric vehicle plans and would initially take a $1.6 billion charge during the third quarter as a result.
GM’s new writedowns come after crosstown rival Ford engine said in December that it expected to record about $19.5 billion in special charges related to a restructuring of its business priorities and a withdrawal of investments in fully electric vehicles.
“We continue to believe that there is a bright future for electric vehicles and that we have a great portfolio to be competitive, but we need to make some structural changes to ensure that we reduce the cost of producing these vehicles,” GM Chief Financial Officer Paul Jacobson told CNBC in October.
Automakers typically exclude “special items” or one-time charges from their adjusted financial results to provide investors with a clearer picture of their ongoing core business activities.
GM said electric vehicle writedowns in the fourth quarter include non-cash charges of approximately $1.8 billion. The remaining $4.2 billion is related to supplier trade settlements, contract cancellation fees and other fees, which will impact cash flow once paid.
Additional EV charges are expected to arise this year, but at a lower amount than the 2025 write-downs, GM said in its filing Thursday: “We expect to recognize additional financial and non-cash charges in 2026 related to continued commercial negotiations with our supply base, which we expect will be significantly lower than the EV-related charges incurred in 2025.”
The automaker also said it may have to pay additional fees related to its emissions credits due to proposed regulatory changes to greenhouse gas emissions standards by the Trump administration.
GM was one of the first automakers to invest billions of dollars in an electric vehicle market that ultimately didn’t materialize. At one point, the company planned to invest $30 billion in electric vehicles, including dozens of new models and battery production capacity.
The U.S. electric vehicle segment as a whole saw a decline in sales after the Trump administration in September ended a $7,500 federal tax credit previously available to electric vehicle buyers.
Shares of GM closed Thursday at $85.13, up nearly 4% on the day. The stock had a record year in 2025, gaining more than 50% to lead all major publicly traded automakers.
GM is scheduled to report its fourth quarter results on January 27.