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The
charges that will be recorded in the fourth quarter follow an
announcement in October that the Detroit automaker would take a
$1.6 billion charge for the same reason in the previous quarter,
with automakers forced to reconsider ambitious plans to convert
their fleets to electric power.
The EV tax credit ended in September. The clean vehicle tax
credit was worth $7,500 for new EVs and up to $4,000 for used
ones.
GM, which had been the most ambitious among all U.S. automakers
with plans to replace internal combustion engines, said in its
filing with the Securities and Exchange Commission late Thursday
that the $6 billion in charges includes non-cash impairments and
other non-cash charges of about $1.8 billion as well as supplier
commercial settlements, contract cancellation fees, and other
charges of approximately $4.2 billion.
EVs have been considered to be the future of the US automotive
industry. GM announced in 2020 that it was going to invest $27
billion in electric and autonomous vehicles over the next five
years, a 35% increase over plans made before the pandemic.
GM expected more than half of its factories in North America and
China would be capable of making electric vehicles by 2030. It
also pledged at the time to increase its investment in EV
charging networks by nearly $750 million through 2025.
Its goal was to make the vast majority of the vehicles electric
by 2035, and the entire company carbon neutral five years after
that.
Those plans have been shaken due to the drastic differences in
economic and environmental policies between the Biden and Trump
administrations.
China has become a global leader in electric vehicle technology
in recent years, with factories there churning out millions of
cars and laying the groundwork for a massive charging network
for vehicles.
Earlier this month, Tesla was dethroned as the world's largest
EV automaker, replaced by China's BYD, which produced 2.26
million electric vehicles last year.
Also Friday, Netherlands-based Stellantis, said that due to
shifting customer demand it would “phase out plug in hybrid (PHEV)
programs in North America beginning with the 2026 model year,
and focus on more competitive electrified solutions.” Stellantis
owns Jeep, Dodge, Chrysler and other carmakers.
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