Sherminator98 Posted January 9 Share Posted January 9 Paywall, but headline pretty much sums it up https://www.detroitnews.com/story/business/autos/general-motors/2026/01/08/gm-reports-6-billion-hit-from-now-unused-ev-investments Quote Link to comment Share on other sites More sharing options...
rmc523 Posted January 9 Share Posted January 9 GM to take additional $6 billion charge to EV business GM said charges include non-cash impairments and other non-cash charges of approximately $1.8 billion, as well as cash impacts from supplier settlements, contract cancellation fees, and other charges of $4.2 billion. GM said the charges won't affect its EBIT-adjusted (earnings before interest and taxes) results. In other parts of the business. the company also took a $1.1 billion non-EV-related charge regarding a restructuring of its China joint venture with SAIC General Motors (SGM). Of that total, $500 million will have a cash impact. As for the EV business, GM's charge taken on Thursday comes on top of the $1.6 billion it took in Q3 following a "reassessment" of its EV business, giving it a total EV write-down of $6.6 billion in total. The costs come as the automaker reduced EV capacity and battery production and pivoted some EV plants to produce gas-powered SUVs and trucks in the future. GM said it expects to recognize additional cash and non-cash charges related to its EV business in 2026, but the company believes those "will be significantly less than the EV-related charges incurred in 2025." The company noted that recent federal changes to greenhouse gas emissions standards would impact its sale of emissions credits. Quote Link to comment Share on other sites More sharing options...
akirby Posted January 9 Share Posted January 9 But but I thought GM's EV plan was perfect and Ford was the only one that screwed up? 1 1 Quote Link to comment Share on other sites More sharing options...
Texasota Posted January 9 Share Posted January 9 Ford mostly ripped the bandaid off in one shot. Looks like GM is going to dribble it out in multiple chunks. 4 Quote Link to comment Share on other sites More sharing options...
twintornados Posted January 9 Share Posted January 9 40 minutes ago, Texasota said: Ford mostly ripped the bandaid off in one shot. Looks like GM is going to dribble it out in multiple chunks. I was thinking the same thing....maybe GM will hope that no one on Wall St. notices? 3 Quote Link to comment Share on other sites More sharing options...
morgan20 Posted January 9 Share Posted January 9 Are the big shots at GM and Ford responsible for screw ups like this going to be hit with demotions or terminations? Quote Link to comment Share on other sites More sharing options...
morgan20 Posted January 9 Share Posted January 9 4 hours ago, akirby said: But but I thought GM's EV plan was perfect and Ford was the only one that screwed up? Haha, it's obvious to us and anyone else with common sense that GM's execution of its EV plans ain't perfect, not even close. But the GM big shots who came up with the plans, and then failed to follow through on them, probably still think they're infallible. 🙄 Quote Link to comment Share on other sites More sharing options...
akirby Posted January 9 Share Posted January 9 1 hour ago, morgan20 said: Are the big shots at GM and Ford responsible for screw ups like this going to be hit with demotions or terminations? I give them a a pass to a certain point because governments around the world including ours were threatening and planning to make ICE illegal within a very short timeframe. There were screwups in the execution of those plans and they are responsible for that. 5 Quote Link to comment Share on other sites More sharing options...
Texasota Posted January 9 Share Posted January 9 (edited) 55 minutes ago, akirby said: I give them a a pass to a certain point because governments around the world including ours were threatening and planning to make ICE illegal within a very short timeframe. There were screwups in the execution of those plans and they are responsible for that. Yes, the federal emission regulations (and associated penalties) amounted to back door EV mandates. It forced the OEMs into this disastrous mess. Edited January 9 by Texasota Quote Link to comment Share on other sites More sharing options...
Texasota Posted January 9 Share Posted January 9 Interesting article here about Ford vs GM in the EV saga: https://247wallst.com/investing/2026/01/09/as-ev-dream-fades-ford-not-gm-is-the-auto-stock-to-buy/ Quote Link to comment Share on other sites More sharing options...
AGR Posted January 9 Share Posted January 9 1 hour ago, akirby said: I give them a a pass to a certain point because governments around the world including ours were threatening and planning to make ICE illegal within a very short timeframe. There were screwups in the execution of those plans and they are responsible for that. ...and then the other side comes into power and pulls the rug from underneath. 1 Quote Link to comment Share on other sites More sharing options...
Biker16 Posted Tuesday at 10:36 PM Share Posted Tuesday at 10:36 PM (edited) https://insideevs.com/news/784300/evs-end-game-gm-ceo-mary-barra/ Quote EVs Are ‘The End Game,’ GM CEO Mary Barra Says A Day Before Trump's Detroit Visit General Motors scaled back its EV plans. But its CEO remains bullish on an all-electric future, even as new regulations reset the industry. General Motors had to make several difficult decisions last year. After the Trump administration axed the $7,500 federal tax credit and heavily revised fuel-economy rules to end the push for a mostly-electric market by the 2030s, the automaker scaled back its battery-powered ambitions. The Orion Assembly Plant in Michigan, which was earmarked for EV-only production, will now produce gasoline trucks. GM also sold its stake in the Ultium Cells battery plant to LG Energy Solution, due to potentially less demand for EV batteries amid slowing sales. Despite the tough calls, GM CEO Mary Barra sounded pretty upbeat about the future of EVs while speaking at the Automotive Press Association conference in Detroit on Monday. “It will take longer without the incentives, but I still think we’ll get there over time,” Barra told Reuters reporter and APA President Kalea Hall, referring to the cooling period for EV sales after the end of the $7,500 federal tax credit last September. “Once someone buys an EV, they're 80% more likely to buy another EV,” Barra said. “Our destination is to get to the all-EV future we've been talking about," she added. Barra's optimistic remarks came just a day before President Donald Trump’s visit to Michigan to speak at the Detroit Economic Club and visit Ford’s Dearborn Assembly plant, where the F-150 pickups are made. Whether the president will address EVs in his talk was not immediately clear, but the Trump administration's regulatory reset has been costly for the American auto industry. Just last week, GM disclosed in an SEC filing that pumping the brakes on EVs resulted in $6 billion in associated charges in the final quarter of the year due to things like contract cancellation fees for suppliers. Ford also faced a similar outcome, although on a much larger scale, booking over $19 billion in charges for dialling down its EV ambitions, which included ending production of the F-150 Lightning. And Stellantis said last week that it was canceling its plug-in hybrids in North America, with the Jeep Wrangler 4xe, Grand Cherokee 4xe, and Chrysler Pacifica Plug-In Hybrid all getting discontinued. That’s despite the Jeeps being the top-selling PHEVs of 2025, as per research firm Recurrent. “I’m a little surprised at some [automakers] that are really pulling away very quickly, because we don’t know what will be in ‘29, ‘30, ‘32,” Barra said, referring to a potential recovery in EV sales in the years to come. Apart from the Corvette E-Ray, GM does not sell any hybrids or PHEVs in the U.S. currently. But that could change in the future, Automotive News reported. “We have plans to do those, and we’ll have hybrids where we think we need to,” Barra said. “But again, we’re mainly investing and continuing to work on EVs because we think that’s the end game,” she said. Edited Tuesday at 10:37 PM by Biker16 1 Quote Link to comment Share on other sites More sharing options...
akirby Posted Tuesday at 11:02 PM Share Posted Tuesday at 11:02 PM Ignoring hybrids is a huge mistake. 2 Quote Link to comment Share on other sites More sharing options...
Texasota Posted Tuesday at 11:32 PM Share Posted Tuesday at 11:32 PM (edited) 50 minutes ago, akirby said: Ignoring hybrids is a huge mistake. Yes, it was inevitable that the absence of hybrids would hit GM hard and require a reversal of that policy. And also ironic that GM produced the Volt (an EREV) long before the EREV concept moved to center stage. GM will also eventually reverse their policy of dropping Apple Carplay and Android Auto when they feel the pain from customers looking elsewhere. Edited Tuesday at 11:56 PM by Texasota Quote Link to comment Share on other sites More sharing options...
morgan20 Posted Wednesday at 12:35 AM Share Posted Wednesday at 12:35 AM (edited) 1 hour ago, Biker16 said: Once someone buys an EV, they're 80% more likely to buy another EV,” Barra said. “Our destination is to get to the all-EV future we've been talking about," That’s great, but GM’s actions recently speak louder than the head honcho’s words. Where is GM’s answer to Ford’s upcoming CE1 products? Ain’t heard anything yet. Then again, GM might just pull off a breakthrough for affordable, high volume EV for the masses in the next couple years that we don’t know about now. Ford can’t afford to dilly dally on those products and production processes or pull away from an aggressive EV strategy generally. I’m hopin’ CE1 and other skunkworks initiatives gets Ford to the all-EV future we've been talking about before GM. Edited Wednesday at 12:36 AM by morgan20 Quote Link to comment Share on other sites More sharing options...
Sherminator98 Posted Wednesday at 01:06 AM Author Share Posted Wednesday at 01:06 AM 2 hours ago, Biker16 said: https://insideevs.com/news/784300/evs-end-game-gm-ceo-mary-barra/ Can't push a rope either. Quote Link to comment Share on other sites More sharing options...
Biker16 Posted Wednesday at 12:48 PM Share Posted Wednesday at 12:48 PM 11 hours ago, Sherminator98 said: Can't push a rope either. I feel this is America's strategy towards fossil fuels Quote Link to comment Share on other sites More sharing options...
Sherminator98 Posted Wednesday at 01:19 PM Author Share Posted Wednesday at 01:19 PM 24 minutes ago, Biker16 said: I feel this is America's strategy towards fossil fuels Fossil fuels aren't going anywhere in our lifetime..there is far too much demand for power generation via natural gas because people are hung up on Nuclear power. Not to mention manufacturing (plastics) and lubrication and all the other things that the Petroleum industry produces. As for vehicles-EVs currently have too many compromises for buyers who are increasingly older and don't like change because of that. Unless there is a breakthrough, ICE is still going to be a major player for the next 20 years IMO. I know for my use case I can get one and not be too bothered by the limitations, there are plenty of other people who don't want to when they are spending $50K plus on a new vehicle. That is why EVs need to match ICE pricing or beat it because people won't be enticed to try or change to them Quote Link to comment Share on other sites More sharing options...
morgan20 Posted Wednesday at 01:42 PM Share Posted Wednesday at 01:42 PM 49 minutes ago, Biker16 said: I feel this is America's strategy towards fossil fuels Yea, it’s part of that strategy. You talked about regulatory capture in the U.S. with the fossil fuels and automotive industries on this forum and this is one example. Unfortunately, that’s deeply embedded in our government-industrial complex Quote Link to comment Share on other sites More sharing options...
morgan20 Posted Wednesday at 01:47 PM Share Posted Wednesday at 01:47 PM 23 minutes ago, Sherminator98 said: That is why EVs need to match ICE pricing or beat it Ford’s CE1 products are expected to do that. Whether GM has somethin’ up it’s sleeve to bring affordable EV to the masses and make the all EV future goal its head honcho is talkin’ about a reality remains to be seen. Quote Link to comment Share on other sites More sharing options...
Sherminator98 Posted Wednesday at 01:52 PM Author Share Posted Wednesday at 01:52 PM 4 minutes ago, morgan20 said: Ford’s CE1 products are expected to do that. Whether GM has somethin’ up it’s sleeve to bring affordable EV to the masses and make the all EV future goal its head honcho is talkin’ about a reality remains to be seen. I hope they do...but it is still a stumbling point with the vast majority of EVs on the market today. Quote Link to comment Share on other sites More sharing options...
morgan20 Posted Wednesday at 02:35 PM Share Posted Wednesday at 02:35 PM 20 minutes ago, Sherminator98 said: it is still a stumbling point with the vast majority of EVs on the market today. Car buyers who can afford the initial price premium know that total cost of ownership mostly favors EV. And the driving experience of EV is superior. But you're right that achieving price parity (EV versus overall market) is a big deal. Get past that stumbling point, and an all-EV future we've been talking about that GM's head honcho is huffin' and puffin' on may just happen. Assuming of course the big shots at automakers don't screw up again. 😄 Quote Link to comment Share on other sites More sharing options...
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