GM Books $6 Billion EV Writedown

General Motors (GM) announced it will take a $6 billion charge to unwind some of its electric vehicle (EV) investments.

This is because the company is reducing its EV production plans and dealing with the effects on its suppliers.

Most of this charge, $4.2 billion, is related to canceling contracts and settling with suppliers who were expecting higher production volumes.

GM said this won't affect its current lineup of EV models, which it will continue to offer.

The company also expects to have more charges in 2026, but they will be smaller.

GM's stock fell about 2% in pre-market trading but ended the regular session up 3.93%.

This move comes after other automakers, like Ford, have also scaled back their EV plans due to changes in the market and government policies.

EV sales have dropped significantly, especially after a federal tax credit for EV buyers ended.

GM's EV sales fell 43% in the fourth quarter, and industry-wide EV sales growth slowed to 1.2%.

The changes in EV policies under President Donald Trump have also impacted GM's plans.