Camilla Jessen
General Motors has taken a massive financial hit after scaling back its electric vehicle ambitions.
General Motors has lost the equivalent of about $7.2 billion (£5.7 billion) after slowing and abandoning large parts of its electric car strategy.
According to the company’s financial disclosures, the losses will be reflected in January 2026 results. They include a fresh write-down of roughly $6.1 billion (£4.9 billion), alongside an earlier impairment recorded in October 2025.
The charges are largely linked to cancelled electric vehicle projects and terminated supplier contracts.
Policy impact
The financial blow follows major policy changes in the United States under President Donald Trump. Several incentives designed to accelerate the adoption of electric cars have been rolled back.
Among them was a tax credit worth more than $7,500 (£6,000) per electric vehicle. According to industry analysts, the removal of this support contributed to a sharp slowdown in EV sales.
Most of the losses stem from abandoned investments in battery production and next-generation electric platforms.
The automaker must absorb significant costs to exit long-term agreements with suppliers and partners that were signed when demand forecasts for electric cars were far more optimistic.
Despite the scale of the write-downs, the company said the move was necessary to protect its long-term financial stability.
Back to combustion
To stabilize earnings, General Motors is shifting its focus back toward internal combustion engine vehicles.
Large pickups and SUVs remain the group’s most profitable products and are expected to carry a greater share of sales in the coming years.
Interestingly, the announcement did not spook investors. General Motors shares have risen about 4.8 percent since the start of the year.
Sources: Company filings, CNN
