General Motors reports $7bn earnings loss after pulling back from EVs | Automotive industry

General Motors said on Thursday it will record a one-time earnings hit of $7.1bn in its quarterly financial results, mostly due to its pullback from electric vehicles in light of shifting US policies.

The Detroit auto giant’s fourth-quarter results will be dented by $6bn in charges connected to reversals on EV investments, according to a securities filing. The remaining $1.1bn includes costs from the company’s restructuring of its China operations.

GM’s move follows a $1.6bn write-down in the third quarter due to pivots away from EVs following a sharp US policy reversal under Donald Trump.

Trump, who views the climate crisis as a hoax, has killed major initiatives favoring EVs championed by his predecessor Joe Biden.

GM’s profit warning also comes on the heels of a Ford announcement on 15 December that it will write off about $19.5bn over several years amid the shifting policy outlook.

Throughout Biden’s presidency, GM’s CEO, Mary Barra, had invested aggressively in building EV capacity. The company announced in 2021 a target of having its cars and trucks emissions-free by 2035.

Barra has said that EVs remain a long-term priority, but that the company is modifying investments in response to consumer demand.

“With the termination of certain consumer tax incentives and the reduction in the stringency of emissions regulations, industry-wide consumer demand for EVs in North America began to slow in 2025,” GM said in the filing. “As a result, GM proactively reduced EV capacity.”

Besides the EV hit, the $1.1bn in non-EV charges included costs related to the restructuring of China joint venture SAIC General Motors Corporate Limited, as well as “an additional legal accrual”.