The slowing down of EV sales in the US and beyond has caused many carmakers to rethink future strategies, and General Motors is the latest to announce changes to its operations.
As reported by Reuters, GM will take a US$6 billion (A$9 billion) charge as it repeals certain, unannounced investments into EVs, following the US federal tax credit incentive being axed.
According to the news outlet, the car giant is reducing planned future EV production, though US$4.2 billion (A$6.3 billion) of the figure is directly related to the cancellation of supplier contracts and settlements, keeping its business partners happy.
The cash hit to GM doesn’t change its US EV lineup, nor has it said it’ll change course on its plans to ditch internal combustion engine-powered passenger vehicles and pickups by 2035, though this is an increasingly unlikely target to be met.
Reuters reports GM’s recent EV-related plan changes include halting production at two of its joint-venture battery plants, while also cancelling a planned factory in Michigan, which will now produce big ICE-powered vehicles.
GM’s announcement comes less than a month after fellow ‘Big Three’ rival Ford said it’d take a huge US$19.5 billion (A$29.4 billion) hit on changing course for its future EV plans.
This centred around scrapping multiple EV projects, including a second-generation F-150 Lightning, cancelling a planned electric van for Europe, replacing the E-Transit with a petrol and hybrid-powered van, and replacing its upcoming ‘BlueOval City’ EV hub with pickup production.
At the time of the announcement, Ford said it expects 50 per cent of its global vehicle sales to be electrified vehicles – encompassing hybrids, extended-range EVs and EVs – by 2030, representing a significant jump above the 17 per cent figure in 2025.
Stellantis-owned Ram also last year cancelled its electric 1500 pickup, which will now be an extended-range EV, to be sold as the Ram 1500 REV.
GM hasn’t announced whether it plans to follow suit with its Chevrolet Silverado EV and GMC Sierra EV pickups.
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