GM takes $7.2 billion charge on EV strategy shift and restructuring

GM It announced a multi-billion-dollar charge related to the realignment of its electric vehicle (EV) strategy following the release of its 2025 financial results and 2026 guidance.

GM reported net income attributable to shareholders of $2.7 billion with adjusted EBITDA of $12.7 billion.

The Detroit automaker’s fourth-quarter net income fell more than $7.2 billion in special charges that GM attributed primarily to changes in electric vehicle capacity and investments as it adjusts to expected declines in consumer demand. Demand for electric vehicles.

policy changes made by the Trump administration, including ending tax breaks for consumers who purchase electric vehicles as well as changes that would ease regulations restricting vehicle emissions, also contributed to the expected decline in demand.

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The $7,500 tax credit for consumers was removed at the end of September, and GM continues to work on Reducing costs Stemming from its electric vehicle business, it is restructuring to take into account changes in consumer demand.

“From an electric vehicle perspective, we think this is the end game. We continue to work on cost optimization,” GM CEO Mary Barra told CNBC on Tuesday.

GM expects cost reductions of $1 billion to $1.5 billion over its tenure, CFO Paul Jacobson said on the company’s earnings call. Electric vehicle business Due to restructuring efforts.

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GM’s 2026 outlook noted that it expects rolling back federal emissions rules could save the company up to $750 million from not having to buy credits from electric vehicle makers to comply with fuel efficiency and… Exhaust emissions rules.

The company also said it expects a more favorable regulatory climate to help it return more production to the United States in the coming years, though that will increase its expenses. Transportation moves, shifts in the supply chain and investments in software could increase costs by $1.5 billion, Jacobson said on the company’s earnings call.

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GM CEO Mary Barra said the company’s electric vehicle restructuring efforts will reduce costs over time. (Anna Moneymaker/Getty Images)

GM expects that Tariff costs The value of these funds will range between $3 billion and $4 billion this year, and it expects to be partially offset by mitigation measures such as those it took last year. The company said that in 2025, it was able to offset more than 40% of the total tariff costs by shifting plant work and reducing other costs.

The company’s fourth-quarter earnings beat analyst estimates and GM stock rose more than 8.5% in Tuesday’s trading session through the early afternoon hours.

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Reuters contributed to this report.