GM - General Motors Company
10/14/2025 | Press release | Distributed by Public on 10/14/2025 04:15
Material Impairments (Form 8-K)
Item 2.06. Material Impairments.
General Motors Company (the "Company," "we," "our" or "GM") made significant investments and contractual
commitments in the development of electric vehicles (EVs) to help the Company's vehicle fleet comply with
emissions and fuel economy regulations that were scheduled to become increasingly stringent. Following recent
U.S. Government policy changes, including the termination of certain consumer tax incentives for EV purchases and
the reduction in the stringency of emissions regulations, we expect the adoption rate of EVs to slow. These
developments have caused us to reassess our EV capacity and manufacturing footprint. On October 7, 2025, the
Audit Committee of the Company's Board of Directors approved charges of $1.6 billion in GM North America
(GMNA) in the three months ended September 30, 2025, based on a planned strategic realignment of our EV
capacity and manufacturing footprint to consumer demand. These charges include non-cash impairment and other
charges of $1.2 billion as a result of adjustments to our EV capacity. In addition, the Company has incurred charges
of $0.4 billion, primarily related to contract cancellation fees and commercial settlements associated with EV-related
investments, which will have a cash impact. The reassessment of our EV capacity and manufacturing footprint,
including our investments in our battery component manufacturing, is ongoing, and it is reasonably possible that we
will recognize additional future material cash and non-cash charges that may adversely affect our results of
operations and cash flows in the period in which they are recognized. These amounts, and certain other insignificant
charges expected to be recognized in this quarter, will be reflected as adjustments in our non-GAAP financial
measures. Refer to the "Non-GAAP Measures" section in our 2024 Form 10-K for additional information. Our
strategic realignment of EV capacity does not impact today's retail portfolio of Chevrolet, GMC and Cadillac EVs
currently in production, and we expect these models to remain available to consumers.
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