The losses include $6 billion related to disappointing results from its EV brands after declining sales last year, and $1.1 billion related to an overhaul of a joint venture in China.
GM had invested significant capital to develop EVs to meet the Biden administration’s stringent fuel economy and emissions regulations and anticipated customer demand. The company became the second-biggest seller of EVs in North America starting in the second half of 2024.
When the Trump administration eliminated consumer tax incentives for EVs and eased emissions regulations for internal combustion engine (ICE) vehicles last year, consumer demand for EVs began to slow, GM said.
As a result, the company reduced EV production while refocusing on full-size SUVs and pickup trucks in both ICE and EV models. GM also sold its interest in a massive battery cell manufacturing plant in Lansing, Michigan, the company reported.
Car buyers responded to the changed incentives by pulling away from EVs and moving toward hybrids and internal combustion engine vehicles, and favoring domestically produced cars over imports.
The carmaker shifted to higher-return models, including trucks and vans, and launched a new, high-growth battery energy storage business.
Ford no longer plans to produce select larger EVs after lower-than-expected demand, higher costs, and regulatory changes, the company stated.
“This is a customer-driven shift to create a stronger, more resilient and more profitable Ford,” President Jim Farley said. “The operating reality has changed, and we are redeploying capital into higher-return growth opportunities.”
Demand for the Cybertruck and other premium models may have also stalled, with Tesla reporting delivery of just 11,642 vehicles in the last three months of last year of the Model S, Model X, and the Cybertruck combined.
