To be precise, the total sum comprises two components: first, a non-cash impairment charge of $1.8 billion; and second, $4.2 billion in actual payments for supplier settlements, contract terminations, and other expenses. These payments will directly affect General Motors’ (GM) liquidity once disbursed. Additionally, the carmaker must write off 1.1 billion dollars from its joint venture SAIC-GM in China, though this is reportedly not directly linked to its electric vehicle business.
This latest write-off in the EV business comes less than three months after GM wrote off 1.6 billion dollars in October, primarily due to reduced demand expectations for electric vehicles following the expiry of the US tax credit of 7,500 US dollars on 30 September for the purchase of new electric vehicles. However, GM’s US rival Ford responded even more drastically: in December, it announced a 19.5 billion US dollar write-off for its EV business and, among other measures, discontinued the battery-electric version of the F-150 pickup.
In possible response to Ford’s drastic measures, GM now emphasises that its currently offered electric models from Cadillac, Chevrolet, and GMC will remain in its lineup. The most significant adjustments to its electric vehicle business that General Motors has announced are already well known: production at the Orion plant in Michigan is shifting from EV production back to internal combustion SUVs and pickups. Additionally, GM has sold its stake in the Ultium battery cell factory in Lansing, Michigan, to its joint venture partner LG Energy Solution.
The latest write-off highlights that GM—like other car manufacturers—had anticipated a faster ramp-up of electromobility but must now adapt to new realities, particularly due to the shifted political climate since the inauguration of US President Donald Trump.
Without the previously generous US government incentives for EVs, demand has collapsed: according to GM’s latest sales figures, EV sales in the US fell by 43 percent to 25,219 units in the fourth quarter of 2025. This followed record electric vehicle sales in the third quarter, which reflected a surge in “pull-forward” purchases ahead of the federal tax credit’s expiry, the company stated. For the full year 2025, General Motors remained the second-largest US manufacturer of electric vehicles behind Tesla. Overall, GM increased its EV sales in the US by 48 percent to 169,887 units across all brands.
Strategically, GM is focusing on offering significantly fewer discounts in its EV business than its competitors: “GM grew sales with incentives lower than the industry average,” the company stated in an investor update. Furthermore, after a hiatus of several years, a new Chevrolet Bolt will soon enter the market, with a starting price of 29,990 dollars. This makes it relatively affordable even without purchase incentives.
gm.com (write-off; PDF), gm.com (sales figures)
