The U.S. government's decision to "put the brakes on" incentives for electric cars and emissions reduction regulations is having a harsh effect on General Motors' (GM) results.
After recording a $1.6 billion impact in the third quarter, the automaker announced that the issue will weigh heavily again in the fourth quarter, at a much higher value: $6 billion.
And to make matters worse, the automaker will also have to bear a restructuring cost of US$1.1 billion from the joint venture it operates in China. Total: a loss of US$7.1 billion.
In the case of the impact from electric cars, the amount refers to the process of reassessing the production capacity of electric vehicles in the United States, including investments in the manufacture of battery components, to adapt to the lower demand from the American consumer.
"Among the charges are impairment losses and other non-monetary charges of approximately $1.8 billion, in addition to the review of commercial agreements with suppliers, contract cancellation fees, and other charges of approximately $4.2 billion, which will impact cash flow when paid," says an excerpt from the statement sent to the SEC.
The announcement weighed on GM's stock performance on January 9th. Around 2:15 PM, the shares were down 3.74%, at US$81.95. Over 12 months, they have accumulated a 64.4% increase, bringing the market value to US$76.4 billion.
Since his re-election, Donald Trump has been dismantling the environmental and electric car policies of his predecessor, Joe Biden. In September, the White House ended the subsidy of up to $7,500 for the purchase of electric cars and relaxed rules on emissions of pollutants and greenhouse gases.
With the end of subsidies, a drop in electric car sales is predicted in the United States. Unlike the European and Asian markets, the American market has always faced high prices, even with tax credits. Industry data from August 2025 indicated that an average electric vehicle cost US$9,000 more than a gasoline-powered model in the United States.
Trump's reversal of the environmental agenda has directly affected the electric vehicle market, with automakers preparing for a drop in demand and absorbing losses from investments made to produce these cars.
Last month, Ford announced a $19.5 billion impact from revising its electric vehicle strategy. According to the company, a significant portion will be recorded in the fourth quarter, with the remainder spread throughout 2026 and 2027.
“This approach prioritizes accessibility, variety, and profitability. Ford will expand powertrain options – including hybrids and long-range electric propulsion – while focusing the development of purely electric vehicles on its flexible universal platform for smaller, more affordable models,” reads part of the statement.
The United States is not the only market where electric cars are facing difficulties. In September, Canadian Prime Minister Mark Carney announced a one-year postponement of the requirement that zero-emission vehicles account for at least 20% of sales starting in 2026.
The European Union also yielded to pressure from local automakers and decided to rethink its goal of eliminating carbon dioxide emissions from cars by 2035.
