GM hit with $1.6B charge as tax credit woes cloud EV outlook

General Motors said on Tuesday it would take a $1.6 billion charge in the third quarter as it reshapes its electric vehicle strategy following the scrapping of a key federal incentive that is likely to dampen demand. GM's disclosure is one of the clearest indications yet that U.S. automakers are scrambling to adapt their production plans in response to slowing EV demand. The EV market also faces fresh strain after the Trump administration scrapped a $7,500 federal tax credit for electric vehicles, a key industry support, with auto executives warning of a sharp near-term drop in battery-car sales before an eventual rebound. EV adoption rate to slow In a filing, GM said it expects "the adoption rate of EVs to slow" following recent policy changes, including the termination of certain consumer tax incentives and reduced emissions-rule stringency. "The charge is a special item driven by our expectation that EV volumes will be lower than planned because of market conditions and the changed regulatory and policy environment," GM told Reuters in a statement. Shares of the company were up 2.1 percWeiter zum vollständigen Artikel bei Korea Times Weiter zum vollständigen Artikel bei Korea Times