Shares fell less than 2% before the opening bell Tuesday.
General Motors, which had led the way among U.S. automakers with plans to convert production to an electric fleet of vehicles, said in a regulatory filing on Tuesday that it will have to book charges that include non-cash impairment and other charges of $1.2 billion due to EV capacity adjustments. There’s also $400 million in charges mostly related to contract cancellation fees and commercial settlements associated with EV-related investments.
GM warned that it may take additional hits as it adjusts production, with non-cash charges potentially impacting operations and cash flow in the future.
The company said that its EV capacity realignment doesn’t impact its retail portfolio of Chevrolet, GMC and Cadillac EVs currently in production, and that it expects those models to remain available to consumers.
Yet U.S. automakers are being hampered in some of their long-term planning, with drastic changes in economic and environmental policy from one administration to the next.
