General Motors expects to book about $6bn in charges for the three months ended 31 December 2025.
The move follows a rollback of parts of its electric vehicle (EV) strategy in North America.
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The expected charges follow a strategic review announced in October 2025, as the automaker adjusted its EV capacity and manufacturing footprint to better reflect consumer demand and evolving US government policies.
GM had already recognised $1.6bn of EV-related charges in its North American operations during the three months ended 30 September 2025.
Of the $6bn anticipated for the fourth quarter, approximately $1.8bn will consist of non-cash impairments and other non-cash items, largely within GM North America.
The remaining $4.2bn is linked to supplier settlements, contract termination costs and similar items, which will result in cash outflows when settled.
The company said it had previously invested heavily in EV development to comply with US fuel economy and emissions requirements and to meet rising customer demand.
Its regional approach centred on adding EV production to existing plants while building a dedicated EV platform and propulsion system.
However, GM said EV demand across North America slowed in 2025 after “certain” consumer tax incentives ended and emissions regulations became less stringent.
In response, the group reduced planned EV output, including shifting its Orion, Michigan facility away from EVs towards full-size SUVs and pickup trucks powered by internal combustion engines.
Battery capacity was also scaled back, including through the sale of GM’s stake in Ultium Cells’ Lansing, Michigan plant to LG Energy Solution.
GM said it may recognise further EV-related cash and non-cash charges in 2026 as supplier negotiations continue, though these are expected to be materially lower than those recorded in 2025.
It also cautioned that proposed changes to greenhouse gas emissions rules could lead to an impairment of emissions credits, like a previous write-down linked to CAFE credits.
The company said the realignment does not affect the current retail lineup of Chevrolet, GMC and Cadillac electric vehicles already in production, which it will continue to offer to customers.
Separately, GM expects to record around $1.1bn in additional non-EV-related charges in the fourth quarter, with an estimated cash impact of $0.5bn.
These costs are primarily tied to the restructuring of its China joint venture, SAIC General Motors, including supplier-related claims and an additional legal provision.
GM said the EV charges, China restructuring costs, legal accrual and other smaller items will be treated as adjustments in its non-GAAP financial reporting for the quarter.
