General Motors scales back EV production

14 October 2025

General Motors said that it will record a $1.6 billion loss to scale back its electric vehicle (EV) production, citing weaker expected demand following the US policy changes including the termination of consumer tax incentives for the purchase of electric vehicles and the reduction in stringency of emission regulations.

The company “approved charges of $1.6 billion in GM North America (GMNA) in the three months ended September 30, 2025, based on a planned strategic realignment of our EV capacity and manufacturing footprint to consumer demand,” GM said in its October 14 SEC filing.

According to the filing, $1.2 billion of the loss is related to non-cash impairments, mostly write-downs of EV assets. The remaining $400 million will be paid in cash for contract cancellations and commercial settlements related to EV investments.

Some of the recent US policy and regulatory changes that impact the EV market include:

• The US clean vehicle tax credit expired on September 30, 2025. The tax credit was worth up to $7,500 for new electric vehicles and up to $4,000 for used EVs.
• In July, the US Environmental Protection Agency (EPA) released a proposed rule to rescind the GHG Endangerment Finding. If finalized, the rule would repeal all GHG emission standards for light-, medium-, and heavy-duty vehicles and engines.
• Under the US One Big Beautiful Bill Act passed by Congress and signed into law by President Trump in July, car manufacturers are not required to pay penalties for exceeding the CAFE fuel economy standards in model year 2025 vehicles.

GM said that its EV capacity realignment has no impact on its retail portfolio of Chevrolet, GMC, and Cadillac EVs currently in production, and that it expects those EV models to remain available to consumers.

Just a few years ago, GM considered electric vehicles to be the future of the US automotive industry. In 2020, the company had announced that it would invest $27 billion in electric and autonomous vehicles in the next five years.

Source: GM SEC filing