NEW YORK: General Motors announced Tuesday that it will book a $1.6-billion hit in electric vehicle investments following US policy changes slowing adoption of the climate-friendly vehicles in its home market.
The cost impact, which will be included in the automaker’s third-quarter results, follows moves by President Donald Trump’s administration to eliminate a consumer tax credit for EV purchases and water down emission rules that aimed to speed EV adoption in the United States, the company said in a securities filing.
Following recent government actions, “we expect the adoption rate of EVs to slow,” said the filing, which added the company will “reassess our EV capacity and manufacturing footprint.”
The announcement relates to a rush in investments greenlighted by GM CEO Mary Barra beginning around the November 2020 election and presidency of Joe Biden, who ran on a platform of aggressive policies to counter climate change.
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In January 2021, shortly after Biden was inaugurated, GM announced a target of having its cars and trucks emissions-free by 2035.
“General Motors is joining governments and companies around the globe working to establish a safer, greener and better world,” Barra said at the time.
Biden’s presidency successfully enacted significant tax and industrial policies to boost EVs. Trump is undoing most of it.
The Republican billionaire lambasted Biden’s climate policies during the 2024 presidential campaign, winning key swing state Michigan, a US automaking center where job security worries have been a serious concern in recent years.
Since the election, GM has emphasized the flexibility of auto plants that were constructed for both EVs and conventional gasoline-powered autos, while announcing plans to lift output of internal combustion engine autos in line with consumer demand.
Shares of GM fell 1.8 percent in pre-market trading.
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