General Motors will be hit with charges of about $6 billion in its fourth quarter after sales of electric vehicles sputtered when the U.S. cut tax incentives to buy them and also eased auto emissions standards
ByMICHELLE CHAPMAN AP business writer
General Motors will be hit with charges of about $6 billion as sales of electric vehicles sputter after the U.S. cut tax incentives to buy them and also eased auto emissions standards.
Shares slid almost 3% Friday.
The charges that will be recorded in the fourth quarter follow an announcement in October that the Detroit automaker would take a $1.6 billion charge for the same reason in the previous quarter, with automakers forced to reconsider ambitious plans to convert their fleets to electric power.
The EV tax credit ended in September. The clean vehicle tax credit was worth $7,500 for new EVs and up to $4,000 for used ones.
GM, which had been the most ambitious among all U.S. automakers with plans to replace internal combustion engines, said in its filing with the Securities and Exchange Commission late Thursday that the $6 billion in charges includes non-cash impairments and other non-cash charges of about $1.8 billion as well as supplier commercial settlements, contract cancellation fees, and other charges of approximately $4.2 billion.
EVs have been considered to be the future of the US automotive industry. GM announ