General Motors Company (NYSE:GM) said Thursday it will record $7.1 billion in special charges for the fourth quarter of 2025, reflecting a pullback in its electric vehicle (EV) strategy and restructuring efforts tied to its operations in China.
In a filing with the Securities and Exchange Commission (SEC), the Detroit automaker said approximately $6 billion of the charges are related to changes in its EV plans amid weakening demand in North America.
The remaining $1.1 billion is largely associated with a previously announced overhaul of its China joint venture, including about $500 million in cash-related costs.
GM said the charges will reduce reported net income for the quarter but will be excluded from its adjusted results.
The announcement follows earlier disclosures in October, when GM said it was reassessing its EV capacity and manufacturing footprint in response to shifting consumer demand and US government policy changes. At that time, the company recorded a $1.6 billion charge in the third quarter related to EV capacity reductions.
In its filing, GM said it has invested heavily in electric vehicles in recent years to meet fuel economy and emissions regulations and to address customer demand. The company noted that these efforts helped it become the second-largest seller of EVs in North America beginning in the second half of 2024, supported by a broad lineup of electric SUVs, trucks, and luxury vehicles.
However, GM said industry-wide EV demand in North America slowed in 2025 following the termination of certain consumer tax incentives and a reduction in the stringency of emissions regulations. In response, the company said it proactively reduced EV capacity, including shifting its Orion, Michigan assembly plant from EV production to the production of full-size SUVs and pickups powered by internal combustion engines. GM also reduced battery cell capacity, including by selling its interest in the Ultium Cells facility in Lansing, Michigan, to LG Energy Solution.
GM added that it expects additional, though smaller, EV-related charges in 2026 tied to ongoing supplier negotiations.
Shares of GM traded down 2.7% on the update.