GM Announces $1.6B Charge on Dwindling EV Adoption
GM intends to take a $1.6 billion impairment charge on its third-quarter earnings due to slowing sales and adoption rates of electric vehicles.
The decision was influenced by less stringent fuel economy standards and the expiration of tax credits for qualifying EVs on September 30.
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.
The charges include noncash impairment and other charges of $1.2 billion as a result of adjustments to EV capacity.
Author's summary: GM takes $1.6B charge due to slow EV adoption.