Key insights
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1
Supplier cancellations drive much of the write-down: GM said $4.2 billion of the $6 billion write-down will be payments and cancellation fees to suppliers for components it no longer needs.
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2
US policy changes are cited as a factor in lower EV expectations: GM cited the abolition of the clean vehicle tax credit and said the government no longer cares if automakers sell plenty of inefficient vehicles.
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3
China sales mix is weighted toward New Energy Vehicles: GM said that in China more than half of the 1.9 million vehicles it sold were New Energy Vehicles, which grew 22.6%.
Takeaways
GM is continuing to sell EVs but is scaling back US EV production plans and absorbing a $6 billion write-down while reporting strong New Energy Vehicle sales growth in China.
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