General Motors will write down $1.6 billion (≈33.7 billion CZK) of investments in electric vehicles after concluding the market has not developed as expected. The automaker said in a regulatory filing that weaker U.S. consumer demand and the end of federal EV purchase support have reduced the value of its EV-related assets. #GM #EVs
The $1.6 billion charge comprises a $1.2 billion non-cash impairment tied to adjusted EV manufacturing capacity and about $400 million in contract termination fees and other commercial settlements. GM had once planned roughly $30 billion in EV investments, including battery production capacity and many new models.
"Following recent changes in U.S. government policy, including the end of some tax incentives for consumers to buy electric vehicles and lighter emissions rules, we expect the pace of EV adoption to slow," GM said. The move follows a similar charge by Ford Motor last year, when Ford booked a $1.9 billion loss related to cancelled EV programs. GM shares fell more than 2% premarket on the news; Ford shares were down under 1%. GM will report third-quarter results next Tuesday. #FiatNews