Automotive Industry
GM Takes $7 Billion Loss in Fourth Quarter
DETROIT—General Motors is the latest automaker to announce a big loss from its investments in electric vehicles.
GM reported a $7.1 billion loss for the last quarter of 2025, primarily to reflect the diminished value of its investments in battery factories and EV assembly lines. The loss also reflects compensation that GM will pay to suppliers for investments they made to manufacture parts that the automaker no longer needs. About $1.1 billion of the total reflects the cost of restructuring GM operations in China that are not related to electric vehicles.
GM said the write-down would not affect its U.S. lineup of roughly a dozen EV models, which is the industry’s broadest offering of battery-powered vehicles.
GM’s announcement comes weeks after rival Ford Motor Co. announced a similar, but much bigger, charge. Ford said it would take a $19.5 billion write-down over several quarters as it canceled several EV programs, including the fully electric version of its F-150 Lightning truck and an additional electric truck and van.
Sales of battery-powered vehicles have cratered following the elimination of a $7,500 federal tax credit for EV buyers on Sept. 30, 2025. Industry analyst Edmunds expects EVs to account for about 6 percent of overall U.S. vehicle sales in 2026, down from 7.4 percent in 2025.Looking for quick answers on assembly and manufacturing topics? Try Ask ASM, our new smart AI search tool. Ask ASM
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