General Motors Books $7.1 Billion Loss as It Pulls Back on EV Ambitions
General Motors (GM) has announced a staggering $7.1 billion loss for the final quarter of 2025, a financial blow directly tied to its strategic retreat from aggressive electric vehicle (EV) production targets. The automaker cited shifting market demands, persistent supply chain issues, and a cooling interest in EVs as primary reasons for the massive write-down. In a significant pivot, GM also delayed the launch of its next-generation electric trucks and SUVs, pushing production back by several years. This move represents a stark reversal from the company's previous bullish stance on an all-electric future. GM's leadership emphasized a renewed focus on hybrid vehicles, recognizing that consumers still value flexibility during the transition away from traditional gasoline engines. The decision impacts plants in Michigan and Arizona, where EV production lines will be retooled for other purposes. Analysts suggest this loss highlights the broader challenges facing the auto industry, which is grappling with high battery costs, economic uncertainty, and a slower-than-expected shift in consumer habits. Despite the massive write-down, GM maintained its overall profitability guidance for the coming year, signaling that cost-cutting measures in other areas may offset the EV setbacks. The company's stock saw a slight decline following the announcement, reflecting investor concern over the long-term viability of its electrification strategy. This development comes amidst a wider industry trend, with other major automakers also scaling back their EV investments and re-evaluating timelines.
