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GM Faces $7.1B Q4 Charges Amid EV Sales Plunge

1/9/2026

43 8 Full Breakdown

Summary

Story summary

General Motors (GM) will incur $7.1 billion in Q4 2025 charges, including a $6.0 billion write-down of unused EV investments and a $1.1 billion charge for restructuring its China operations.
This follows a broader automaker trend, with Ford Motor Company reporting $19.5 billion in similar charges.
GM's EV sales fell 43% in Q4 2025 because the federal tax credits expired.
GM plans to pivot production toward more profitable gas-powered models.

History

Historical Context

In 2009, General Motors filed for Chapter 11 bankruptcy, marking one of the largest corporate bankruptcies in U.S. history, with $82.29 billion in assets and $172.81 billion in debt. The U.S. government intervened, providing $50 billion in loans and acquiring a 60.8% stake in the restructured company. By 2025, GM faced $7.1 billion in charges, reflecting ongoing challenges in the evolving automotive market.

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Story summary

General Motors (GM) will incur $7.1 billion in Q4 2025 charges, including a $6.0 billion write-down of unused EV investments and a $1.1 billion charge for restructuring its China operations.
This follows a broader automaker trend, with Ford Motor Company reporting $19.5 billion in similar charges.
GM's EV sales fell 43% in Q4 2025 because the federal tax credits expired.
GM plans to pivot production toward more profitable gas-powered models.

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