Electrical industry Electric cars cause GM to write off billions
The electric car business will result in a huge write-off for US car giant General Motors. The company will take a charge of six billion dollars due to cutbacks in the production of electric cars and batteries.
08.01.2026, 23:42
SDA
In addition, there will be a further write-down of 1.1 billion dollars in connection with a restructuring of the China business, GM announced. GM's arch-rival Ford recently announced a write-down of 19.5 billion dollars for its electric car business.
Following the success of Tesla, the major US carmakers invested billions to bring more electric cars into their model ranges. They also decided to electrify pickups, which are popular in the USA. However, the electric pickups - including the Cybertruck from electric pioneer Tesla - did not sell in the numbers hoped for.
Trump let the electric premium expire
US President Donald Trump's decision to phase out the 7500 dollar electric car incentive at the end of September put a further damper on the market. The Trump administration is also relaxing energy efficiency requirements. US car buyers have long preferred vehicles with combustion and hybrid drives.
General Motors once announced that it would increase its production capacity to one million electric vehicles per year by 2025 with investments of 35 billion dollars. The company is now working on reducing the costs of future electric models through new battery technology, among other things.
