General Motors(GM) has announced it will take an additional US$6bn charge related to its electric vehicle business, underscoring the financial strain facing legacy automakers as they navigate a slower-than-expected transition to EVs.
The charge, disclosed in a regulatory filing and confirmed by the company on Friday, is linked primarily to restructuring costs, asset write-downs and revised projections for EV demand and profitability. GM said the move reflects a reassessment of its near-term EV strategy amid persistent market headwinds rather than a retreat from its long-term electrification goals.
The Detroit-based automaker has invested tens of billions of dollars in electric and autonomous vehicle development over the past several years, positioning EVs as central to its future growth. However, rising interest rates, uneven consumer demand, pricing pressure from rivals and continued losses in its EV segment have forced GM to recalibrate timelines and expectations.
In a statement, GM said it remains committed to an “all-electric future” but acknowledged that the pace of adoption has been slower than anticipated in key markets, particularly in North America. The company added that it is prioritising capital discipline, focusing on models with clearer paths to profitability and scaling back or delaying less certain projects.
The latest charge follows earlier write-downs and restructuring actions tied to GM’s EV and autonomous units. Analysts say the cumulative impact highlights the difficulty traditional automakers face in balancing aggressive electrification plans with shareholder pressure to protect margins and cash flow.
“GM is essentially admitting that the near-term economics of EVs are tougher than expected,” said one US-based auto analyst. “This doesn’t kill the EV strategy, but it does push profitability further out and raises questions about how quickly the company can justify its massive investment.”
The announcement weighed on investor sentiment, with GM shares coming under pressure in early trading as markets digested the scale of the charge. Some investors, however, welcomed the move as a necessary reset that could bring greater transparency to the company’s EV outlook.
GM has previously said it aims to achieve EV profitability on a variable basis in the coming years, supported by cost reductions, battery scale through its Ultium platform and improving supply chains. The company also continues to rely on strong performance from its internal combustion engine business, particularly trucks and SUVs, to fund its EV transition.
The additional US$6bn charge is expected to be reflected in GM’s upcoming earnings, adding to broader concerns about how quickly legacy automakers can adapt to an increasingly competitive and price-sensitive global EV market.
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