GM Takes $1.6 Billion Hit for Scaling Back EV Plans

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00:00General Motors reporting a $1.6 billion charge related to scaling back its EV plans.

00:05The company says in a regulatory filing, quote,

00:09following recent U.S. government policy changes, including the termination of certain consumer tax incentives for EV purchases

00:16and the reduction in the stringency of emissions regulations, we expect the adoption rate of EVs to slow.

00:23Joining us with more is Bloomberg Intelligence Global Autos and Industrials Research Analyst Steve Mann.

00:28And Steve, this is especially interesting because I thought General Motors had come up with this strategy

00:34where it was going to be able to sell a lot of pre-October inventory to its dealers,

00:40take that EV credit and continue to pass it along to customers for the months to come.

00:45But I guess it's decided not to try that.

00:48No, they decided not to do that. And that $1.6 billion write down is huge.

00:54I mean, GM was probably the most aggressive, if not global, among the big three, Detroit big three, in moving into EVs.

01:04They have a very complete, full EV portfolio that they need to really rethink what they're going to do with it.

01:12So, how is GM positioned in EVs now?

01:18I know it's a story of slowing growth, really, for everybody, but they have such a huge product offering, right?

01:24Everything from the $28,000 Bolt to the $160,000 Cadillac IQ and in between.

01:34Are they outperforming the rest of the industry?

01:38Certain models they are outperforming, but I really think that they do need to rationalize that portfolio.

01:45They'll continue to launch the Bolt.

01:47You've seen it in the media. It's priced under $30,000.

01:51It addresses one of the issues that consumers have with pricing of EVs.

01:56But anything in between, like the Blazer, like some of the pickup trucks, those are less popular with consumers.

02:06And I wouldn't be surprised, looking at sales in the next couple quarters, if those models go away.