(WWJ) General Motors says it will take a $1.6 billion dollar charge in its fourth quarter earnings due to changes in federal regulations involving electric vehicles.
GM once "aspired" to be all electric by 2035. However, government policies that once supported that goal have changed greatly. Federal incentives for consumers to purchase EVs ended at the end of September. Government emission rules are also changing.
Add in slowing consumer demand for electric vehicles, and you have a marketplace that is not moving in the way General Motors expected it to.
Because of this, GM has changed plans to convert some plants to electric vehicle production. They have also adjusted future product plans, and have had downtime at plants that currently build electric vehicles.
All of that that costs money, and that has lead to the $1.6 billion fourth quarter charge. GM says more charges could be coming in the future.
This will not be reflected next week when GM releases its third quarter earnings next week.