General Motors has recorded US$11.2 billion in charges tied to scaling back its electric vehicle (EV) plans since the second half of 2025. The company says the biggest cash charges are now largely behind it, although billions still need to be paid.
The update came with GM’s third-quarter earnings, which showed US$50 billion in revenue and US$3.3 billion in net income. Despite those profits, the automaker is still working through the cost of reducing its EV manufacturing capacity.
The changes have already reached Canada. As we previously reported, GM ended BrightDrop electric van production at Ontario’s CAMI plant after demand fell short of expectations. The company had also cut production plans at several EV factories.
Of the US$11.2 billion total, US$7.4 billion involves cash costs, primarily from adjusting battery supply arrangements with joint venture partners. GM had paid US$4.6 billion by the end of September and expects another roughly US$1 billion to leave its accounts during the fourth quarter. The remaining payments are scheduled for 2027.
GM recorded US$238 million in EV realignment charges during Q3, bringing the nine-month total to approximately US$3.6 billion.
CFO Paul Jacobson said GM remains on course to reduce annual EV losses by US$1 billion to US$1.5 billion. He attributed that improvement to reduced manufacturing capacity and substantially lower production volumes.
There is also pressure at GM Financial. The financing business is accelerating depreciation on electric vehicles as more leased EVs come back and used vehicle values weaken. Its overall U.S. lease return rate reached 37%, compared with 23% a year earlier.
GM expects the material cash charges from its EV restructuring to be substantially complete. The next step is making the smaller manufacturing footprint work while managing the remaining payments and a growing supply of returned lease vehicles.
Related Articles:
- GM to close Detroit EV battery plant as it scales back EV investments
- GM to permanently end BrightDrop electric van production in Ontario
- GM cuts Cadillac Lyriq, Bolt, and BrightDrop production amid slowing demand
- GM’s U.S. EV sales plunge 61.7% in Q3 2026
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