GM takes $6 billion hit as cost of backing away from EVs
CNN••general
Key Points:
- General Motors announced an additional $6 billion loss related to scaling back its electric vehicle (EV) plans, adding to a previous $1.6 billion charge disclosed in October.
- The financial setbacks stem from the rollback of federal policies promoting zero-emission vehicles under the Trump administration, which reversed Biden-era regulations and support for EV adoption.
- Despite the pullback, GM continues to see significant demand for electric cars domestically and internationally, though U.S. EV sales declined sharply in the fourth quarter following a surge driven by a tax credit expiration.
- Much of the $6 billion charge will cover canceled contracts with parts suppliers, while GM has not announced discontinuation of specific EV models or factory closures, but has implemented layoffs at two
