General Motors’ $1.6 billion charge tied to its electric vehicle (EV) operations has become the latest sign that the automotive industry’s push toward an all-electric future is hitting real-world limits.
In a regulatory filing, GM said it will book $1.2 billion in non-cash impairment charges tied to EV capacity adjustments and another $400 million in contract cancellation fees and commercial settlements related to EV investments. The company also warned that additional charges could follow as it scales back or delays certain projects.