General Motors (GM) will incur approximately $6 billion in special charges in the fourth quarter of 2025 due to a slowdown in its electric vehicle (EV) efforts. This includes $1.8 billion linked to unused EV equipment and $4.2 billion from supplier settlements, contract cancellations, and related costs, bringing the total EV-related impact for 2025 to $7.6 billion. Additionally, GM plans to restructure its Chinese joint venture, adding another $1.1 billion in charges.
The company’s decision to scale back on EVs is attributed to shifting U.S. policy and decreasing consumer demand. GM’s EV sales plummeted by 43% year-over-year in the fourth quarter of 2025, totaling just over 25,000 vehicles following the expiration of federal EV tax credits. With these changes, GM aims to redirect resources to higher-margin vehicles, such as pickup trucks, to improve profitability.
GM’s pivot is echoed by other automakers, including Ford, which expects about $19.5 billion in special charges as it alters its U.S. EV strategy, and Stellantis, which has postponed its all-electric RAM pickup. These trends indicate a broader hesitance among legacy automakers to aggressively pursue an EV-only future, focusing instead on profitability and consumer demand.
