GM To Take $1.6B Charge In Q3 Results Amid Reduced Incentives And Slower Growth

Benzinga

GM will record a $1.6B charge in Q3 tied to slowing EV progress, including $1.2B in non-cash adjustments and $400M in contract costs. The automaker cited weaker tax incentives and relaxed emissions rules under the Trump administration.

Transcript

00:00It's Benzinga, bringing Wall Street to Main Street.

00:02General Motors said Tuesday it will take a $1.6 billion hit in its third quarter results,

00:07tied to slower-than-expected progress in its electrical vehicle plans, according to CNBC.

00:12The automaker said $1.2 billion of the impact will be non-cash charges for adjusting EV capacity,

00:18while $400 billion will cover contract cancellations and commercial settlements.

00:22GM said its review of EV production is ongoing, suggesting further charges may follow.

00:27GM said the $1.6 billion in EV-related charges will affect its net income,

00:32but not its closely-watched adjusted earnings when it reports results on October 21st.

00:36Companies cited reduced federal tax incentives and relaxed emission rules under the Trump administration

00:41as key factors behind its reassessment.

00:43For all things money, visit Benzinga.com.

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