General Motors reports $7bn earnings loss after pulling back from EVs
The Guardian••business
Key Points:
- General Motors will record a one-time $7.1 billion earnings hit in its fourth-quarter results, primarily due to scaling back electric vehicle (EV) investments amid changing US policies.
- The $7.1 billion charge includes $6 billion related to EV investment reversals and $1.1 billion from restructuring its China operations.
- This follows a $1.6 billion write-down in the third quarter linked to shifts away from EVs after the Trump administration reversed key EV-supportive policies initiated under Biden.
- GM CEO Mary Barra emphasized that EVs remain a long-term priority, but the company is adjusting investments due to slower consumer demand following the termination of certain tax incentives and relaxed emissions regulations.
- GM’s profit warning
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