GM to take $6 Billion Writedown on EV Pullback Amid Fading Demand and Policy Shifts

• General Motors announced a $6 billion charge to unwind some electric-vehicle investments, following rival Ford Motor's similar move.
• The writedown is primarily due to reducing planned EV production and contract cancellations with suppliers, impacting its fourth-quarter earnings.
• The company stated the writedown will not affect its current U.S. lineup of roughly a dozen EV models, which will remain available.
• GM's decision comes as EV sales have cratered after the elimination of a $7,500 federal tax credit and shifts in Trump administration policies.
• Analysts question GM's focus on fully electric vehicles over hybrids, as EV sales growth has slowed significantly across the industry.

Why It Matters: GM faces a $6 billion EV writedown due to market shifts and policy changes, impacting future investments.