GM's Electric Dreams Shattered: $7 Billion Hit Due to Shifts in US Policies
General Motors is taking a $7.1 billion hit on its quarterly earnings report, mostly due to its decision to scale back its electric vehicle investments in response to shifting US policies. The move comes just months after the company recorded a $1.6 billion write-down in its third quarter earnings due to similar policy reversals.
The Detroit automaker's latest reversal is attributed to the sharp turnabout by former President Donald Trump, who views climate change as a hoax and has killed major initiatives favoring electric vehicles championed by his predecessor Joe Biden. As a result, GM's CEO, Mary Barra, had invested heavily in building out EV capacity, with the company now aiming to have its cars and trucks emissions-free by 2035.
However, consumer demand for EVs in North America has slowed due to the termination of certain tax incentives and reduced emissions regulations. In response, GM proactively reduced its electric vehicle production capacity, resulting in a significant one-time earnings hit of $6 billion. The remaining $1.1 billion includes costs from restructuring its China operations.
The move is not an isolated incident for Ford, which announced on December 15 that it will write off around $19.5 billion over several years due to similar shifting policy outlooks. GM's decision highlights the impact of US policies on the automotive industry and its shift towards more sustainable options.
Despite this setback, Barra has reaffirmed EVs as a long-term priority for the company, emphasizing that consumers' demand is driving these modifications in investments.
General Motors is taking a $7.1 billion hit on its quarterly earnings report, mostly due to its decision to scale back its electric vehicle investments in response to shifting US policies. The move comes just months after the company recorded a $1.6 billion write-down in its third quarter earnings due to similar policy reversals.
The Detroit automaker's latest reversal is attributed to the sharp turnabout by former President Donald Trump, who views climate change as a hoax and has killed major initiatives favoring electric vehicles championed by his predecessor Joe Biden. As a result, GM's CEO, Mary Barra, had invested heavily in building out EV capacity, with the company now aiming to have its cars and trucks emissions-free by 2035.
However, consumer demand for EVs in North America has slowed due to the termination of certain tax incentives and reduced emissions regulations. In response, GM proactively reduced its electric vehicle production capacity, resulting in a significant one-time earnings hit of $6 billion. The remaining $1.1 billion includes costs from restructuring its China operations.
The move is not an isolated incident for Ford, which announced on December 15 that it will write off around $19.5 billion over several years due to similar shifting policy outlooks. GM's decision highlights the impact of US policies on the automotive industry and its shift towards more sustainable options.
Despite this setback, Barra has reaffirmed EVs as a long-term priority for the company, emphasizing that consumers' demand is driving these modifications in investments.
Interesting how US policies can affect big companies like GM. I mean, they're all about progress and innovation, but sometimes politics gets in the way 
. It's not just GM, though - other companies are feeling the pinch too. I wonder if we'll ever see a major shift back to electric vehicles once the current climate change policies calm down 
just heard about GM's electric dreams being shattered 
so many automakers are feeling the pinch due to the US gov's sudden change of heart on climate change 
it's like they took two steps forward and one step back 
i think this is actually a good thing for us 
if people start rethinking their priorities and wanting more sustainable options, it means we're getting closer to making the world a better place 
instead, let's focus on finding ways to make electric vehicles more affordable and accessible for everyone 
So, it's like, the world wasn't expecting GM to go all-in on electric dreams only to have them derailed by Trump's climate denial... 
Anyway, $7 billion is a pretty big dent in their wallet. Guess they figured, why bother investing all that time and money if you're just gonna be told it's not worth it? 
Anyways, gotta respect their commitment to sustainability even if it means taking a financial hit.
. I mean, who needs to save the planet when you can just write off 7 billion bucks? It's like, "Hey, we were gonna make a gazillion dollars from EVs, but now that climate change is cool again... never mind" 
.
. Anyway, Barra's still all in on EVs, so let's hope she can somehow make this work without too many more hiccups 
.
️. I get that climate change is a complex issue, but can't we just agree on something? 
. It's like we're making progress in one area and then taking a step back in another.
. It's not just GM though, Ford is taking a huge hit too - that's $19.5 billion over several years 
️. But it's hard not to feel a little disappointed when you're investing so much time and money into something that seems like it's being pulled in the opposite direction 
. Maybe GM is just ahead of the curve with their 2035 emissions-free goal, who knows? Anyway, I'm still excited about the future of EVs, even if things are slowing down a bit 