General Motors (NYSE: GM) details major 2025 EV-related and China restructuring charges

Rhea-AI Filing Summary

General Motors Company reports significant charges related to its ongoing shift in electric vehicle and global manufacturing strategy. After earlier recording $1.6 billion of charges in GM North America for the three months ended September 30, 2025, the company now expects to record approximately $6.0 billion of additional EV-related charges for the three months ended December 31, 2025, mainly in North America. These include about $1.8 billion of non-cash impairments and other non-cash items and about $4.2 billion tied to supplier settlements, contract cancellation fees and other items that will require cash payments.

GM also expects approximately $1.1 billion of additional non-EV related charges for the same period, largely from restructuring its China joint venture SGM and an additional legal accrual, with about $0.5 billion of related cash outflows. The company anticipates further material cash and non-cash charges in 2026 from continued supplier negotiations and notes that proposed greenhouse gas rules could impair its emissions credits. GM states that these actions are part of a broader realignment of EV capacity and confirms its current Chevrolet, GMC and Cadillac EV retail portfolio remains in production.

Positive

• None.

Negative

• GM expects about $6.0 billion in EV-related charges for the three months ended December 31, 2025, plus $1.1 billion of additional non-EV charges, weighing on earnings and cash flows.
• Management anticipates further material cash and non-cash charges in 2026 and warns proposed greenhouse gas rules could impair emissions credits, adding uncertainty to future results.

Insights

Equity analyst – autos and industrials

GM flags large 2025 charges from EV capacity shifts and China restructuring, plus more potential impacts in 2026.

General Motors is quantifying the financial impact of its reassessment of electric vehicle capacity and broader manufacturing footprint. For the three months ended December 31, 2025, it expects approximately $6.0 billion in EV-related charges, on top of $1.6 billion previously recorded in GM North America for the three months ended September 30, 2025. The new EV charges mix about $1.8 billion of non-cash impairments with roughly $4.2 billion of supplier settlements, contract cancellation fees and other items that will require cash.

Beyond EVs, GM anticipates around $1.1 billion of additional non-EV charges for the three months ended December 31, 2025, mainly from restructuring its China joint venture SGM and an additional legal accrual, with an estimated $0.5 billion of cash outflows when paid. The company also notes it expects additional material cash and non-cash charges in 2026 from continued supplier negotiations, and that proposed greenhouse gas standards could lead to further impairments of emissions credits. These items will be excluded from certain non-GAAP measures, but they directly affect reported earnings and cash flows in the periods recognized.

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________

FORM 8-K

___________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 8, 2026 (January 8, 2026)

___________________

GENERAL MOTORS COMPANY

(Exact name of registrant as specified in its charter)

___________________

Delaware	001-34960		27-0756180
(State or other jurisdiction of incorporation)	(Commission File Number)		(I.R.S. Employer Identification No.)

300 Renaissance Center,

Detroit,

Michigan

48265

-3000

(Address of principal executive offices)

(Zip Code)

(313) 667-1500

(Registrant's telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

___________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant

under any of the following provisions:

☐		Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐		Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐		Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐		Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	GM	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of

1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging

growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for

complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Item 8.01.  Other Events.

For the past several years, the global automotive industry and General Motors Company (the Company, we, our or

GM) have been investing significant capital to develop electric vehicles (EVs) to meet increasingly stringent fuel

economy and emissions regulations in the United States and growing customer demand. Our strategy in North

America has been focused on delivering exceptional vehicles quickly and cost effectively. To realize economies of

scale, GM added EV production to existing assembly plants and developed a dedicated EV architecture and

propulsion strategy. These initiatives helped the Company become the #2 seller of EVs in North America beginning

in the second half of 2024 on the strength of our broad portfolio of award-winning electric SUVs, trucks and luxury

vehicles.

With the termination of certain consumer tax incentives and the reduction in the stringency of emissions regulations,

industry-wide consumer demand for EVs in North America began to slow in 2025. As a result, GM proactively

reduced EV capacity, including by pivoting the Company’s assembly plant in Orion, MI from EV production to the

production of full-size SUVs and full-size pickups powered by internal combustion engines, where we believe we

have unmet demand, and we proactively reduced battery cell capacity, including by selling our interest in Ultium

Cells LLC’s Lansing, MI facility to LG Energy Solution.

In October 2025, GM announced a broader reassessment of its EV capacity and manufacturing footprint to align

with expected consumer demand and U.S. Government policy changes and recorded charges of $1.6 billion in GM

North America (GMNA) in the three months ended September 30, 2025. Our review of EV capacity and

investments continued throughout the fourth quarter and, as a result, we expect to record charges of approximately

$6.0 billion in the three months ended December 31, 2025, primarily in GMNA. These charges include non-cash

impairments and other non-cash charges of approximately $1.8 billion as well as supplier commercial settlements,

contract cancellation fees, and other charges of approximately $4.2 billion, which will have a cash impact when

paid. We expect to recognize additional material cash and non-cash charges in 2026 related to continued commercial

negotiations with our supply base, which we believe will be significantly less than the EV-related charges incurred

in 2025. In addition, proposed regulatory changes to the greenhouse gas emission standards could result in an

impairment of our emissions credits, similar to the previous impairment we recognized related to our CAFE credits.

Such charges may adversely affect our results of operations and cash flows in the period in which they are

recognized. As previously disclosed, our strategic realignment of EV capacity does not impact today’s retail

portfolio of Chevrolet, GMC, and Cadillac EVs in production, and we plan to continue to make these models

available to consumers.

We also expect to record additional non-EV related charges of approximately $1.1 billion for the three months ended

December 31, 2025 that will have an approximately $0.5 billion cash impact when paid. These charges mainly relate

to (i) the previously announced restructuring of our China joint venture, SAIC General Motors Corporate Limited

(SGM), primarily related to our proportionate share of supplier claims, and (ii) an additional legal accrual. The EV-

related charges, the China restructuring charges, the legal accrual and certain other insignificant charges expected to

be recognized in the three months ended December 31, 2025 will be reflected as adjustments in our non-GAAP

financial measures. Refer to the “Non-GAAP Measures” section in our 2025 Form 10-K for additional information.

Cautionary Note on Forward Looking Statements

This Current Report on Form 8-K and the other reports filed by us with the Securities and Exchange Commission

(SEC) from time to time, as well as statements incorporated by reference herein and related comments by our

management, may include "forward-looking statements" within the meaning of the U.S. federal securities laws.

Forward-looking statements are any statements other than statements of historical fact. Forward-looking statements

represent our current judgment about possible future events and are often identified by words like “aim,”

“anticipate,” “appears,” “approximately,” “believe,” “continue,” “could,” “designed,” “effect,” “estimate,”

“evaluate,” “expect,” “forecast,” “goal,” “initiative,” “intend,” “may,” “objective,” “outlook,” “plan,” “potential,”

“priorities,” “project,” “pursue,” “seek,” “should,” “target,” “when,” “will,” “would,” or the negative of any of those

words or similar expressions. In making these statements, we rely on assumptions and analysis based on our

experience and perception of historical trends, current conditions and expected future developments as well as other

factors we consider appropriate under the circumstances. We believe these judgments are reasonable, but these

statements are not guarantees of any future events or financial results, and our actual results may differ materially

due to a variety of important factors, many of which are beyond our control. These factors, which may be revised or

supplemented in subsequent reports we file with the SEC, include, among others, the following: (1) our ability to

deliver new products, services, technologies and customer experiences in response to increased competition and

changing consumer needs and preferences; (2) our ability to attract and retain talented and highly skilled employees;

(3) our ability to timely fund and introduce new and improved vehicle models, including EVs, that are able to attract

a sufficient number of consumers; (4) our ability to profitably deliver a strategic portfolio of EVs; (5) adoptions of

EVs by consumers; (6) the success of our current line of ICE vehicles, particularly our full-size sport utility vehicles

(SUVs) and full-size pickup trucks; (7) our highly competitive industry, which has been historically characterized by

excess manufacturing capacity and the use of incentives, and the introduction of new and improved vehicle models

by our competitors; (8) the unique technological, operational, regulatory and competitive risks related to our

refocused autonomous vehicle (AV) strategy on personal vehicles; (9) risks associated with climate change,

including increased regulation of greenhouse gas (GHG) emissions, our transition to EVs and the potential increased

impacts of severe weather events; (10) global automobile market sales volume, which can be volatile; (11)

inflationary pressures and persistently high prices and uncertain availability of raw materials and commodities used

by us and our suppliers, and instability in logistics and related costs; (12) our business in China, which is subject to

unique operational, competitive, regulatory and economic risks; (13) the success of our ongoing strategic business

relationships, particularly with respect to facilitating access to raw materials necessary for the production of EVs,

and of our joint ventures, which we cannot operate solely for our benefit and over which we may have limited

control; (14) the international scale and footprint of our operations, which expose us to a variety of unique political,

economic, competitive and regulatory risks, including the risk of changes in government leadership and laws

(including labor, trade, tax and other laws), political uncertainty or instability and economic tensions between

governments and changes in international trade policies, new barriers to entry and changes to or withdrawals from

free trade agreements, introduction of new tariffs or changes to announced tariffs directly and indirectly applicable

to our industry, changes in foreign exchange rates and interest rates, economic downturns in the countries in which

we operate, differing local product preferences and product requirements, changes to and compliance with U.S. and

foreign countries' export controls and economic sanctions, differing labor regulations, requirements and union

relationships, differing dealer and franchise regulations and relationships, difficulties in obtaining financing in

foreign countries, and public health crises, including the occurrence of a contagious disease or illness; (15) any

significant disruption, including any work stoppages, at any of our manufacturing facilities; (16) the ability of our

suppliers to deliver parts, systems and components without disruption and at such times to allow us to meet

production schedules; (17) pandemics, epidemics, disease outbreaks and other public health crises; (18) the

possibility that competitors may independently develop products and services similar to ours, or that our intellectual

property rights are not sufficient to prevent competitors from developing or selling those products or services; (19)

our ability to manage risks related to security breaches, cyberattacks and other disruptions to our information

technology systems and networked products, including connected vehicles; (20) our ability to manage security

breaches and other disruptions to our in-vehicle systems; (21) our ability to comply with increasingly complex,

restrictive and punitive regulations relating to our enterprise data practices, including the collection, use, sharing and

security of the personal information of our customers, employees or suppliers; (22) our ability to comply with

extensive laws, regulations and policies applicable to our industry, operations and products, including those in the

One Big Beautiful Bill Act and/or relating to fuel economy, emissions and AVs; (23) costs and risks associated with

litigation and government investigations; (24) the costs and effect on our reputation of product safety recalls and

alleged defects in products and services; (25) any additional tax expense or exposure or failure to fully realize

available tax incentives; (26) our continued ability to develop captive financing capability through General Motors 

Financial Company, Inc.; and (27) any significant increase in our pension funding requirements. A further list and

discussion of these risks, uncertainties and other factors can be found in our most recent Annual Report on Form 10-

K and our subsequent filings with the SEC.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be

signed on its behalf by the undersigned hereunto duly authorized.

		GENERAL MOTORS COMPANY (Registrant)
	By:	/s/ CHRISTOPHER T. HATTO
Date: January 8, 2026		Christopher T. Hatto Vice President, Global Business Solutions and Chief Accounting Officer

FAQ

What charges did GM disclose related to its EV strategy in this 8-K?

GM expects to record approximately $6.0 billion of EV-related charges in the three months ended December 31, 2025, primarily in GM North America. These include about $1.8 billion of non-cash impairments and other non-cash charges and about $4.2 billion for supplier commercial settlements, contract cancellation fees and other charges that will require cash payments.

How much did GM already record in EV-related charges earlier in 2025?

In connection with its October 2025 announcement of a broader EV capacity reassessment, GM recorded charges of $1.6 billion in GM North America for the three months ended September 30, 2025.

What non-EV related charges did GM outline for the quarter ended December 31, 2025?

GM expects additional non-EV related charges of approximately $1.1 billion for the three months ended December 31, 2025. These mainly relate to the restructuring of its China joint venture SGM, largely its share of supplier claims, and an additional legal accrual, with an estimated $0.5 billion cash impact when paid.

Does GM expect further charges after 2025 related to these strategic changes?

Yes. GM states it expects to recognize additional material cash and non-cash charges in 2026 tied to continued commercial negotiations with its supply base, which it believes will be significantly less than the EV-related charges incurred in 2025.

How could proposed greenhouse gas regulations affect GM financially?

GM notes that proposed changes to greenhouse gas emission standards could result in an impairment of its emissions credits, similar to a prior impairment of its CAFE credits, which could adversely affect results of operations and cash flows when recognized.

Is GM changing its current lineup of Chevrolet, GMC and Cadillac EVs?

GM states that its strategic realignment of EV capacity does not impact its current retail portfolio of Chevrolet, GMC and Cadillac EVs in production, and that it plans to continue making these models available to consumers.

How will GM treat these charges in its non-GAAP financial measures?

GM indicates the EV-related charges, China restructuring charges, legal accrual and certain other insignificant charges expected for the three months ended December 31, 2025 will be reflected as adjustments in its non-GAAP financial measures, as described in the Non-GAAP Measures section of its 2025 Form 10-K.