Ford Rival GM Takes $1.6 Billion Charge On EV Pivot

With EV demand not meeting expected levels of growth, most automakers opted to scale back electrification plans and investments in a big way, and that includes Ford. The Blue Oval has soldiered on with three EVs in its lineup, which it continues to update while also pushing back major refreshes and redesigns. As for Ford’s cross-town rival General Motors, well, that isn’t exactly the case – rather, GM has launched a bevy of new EVs even as demand has proven to be soft for years now, and that decision is costing the automaker a significant amount of money.

According to GM Authority, The General will take a $1.6 billion dollar hit as it revamps its EV plans, consisting of $1.2 billion earmarked for production adjustments, and the rest going to tasks such as settling commercial arrangements and canceled contracts. “Following recent U.S. government policy changes, including the termination of certain consumer tax incentives for EV purchases and the reduction in the stringency of emissions regulations, we expect the adoption rate of EVs to slow,” GM said in a regulatory filing.

While GM largely blames the sunsetting of the federal EV tax credit and regulatory changes on this loss, demand for such models has waned behind expectations for years now, prompting Ford to make quite a few adjustments to its own plans. That includes clawing back raw materials deals, as well as delaying its next-generation F-150 EV pickup a total of three times to date, and also pushing the redesigned E-Transit to 2028.

Back in summer 2024, Ford also announced that it would be canceling plans to build a pair of new three-row all-electric crossovers, a decision that wound up costing the automaker $400 million in the first half of 2025 alone. The Blue Oval is in the process of refocusing on hybrids in the near term, and now, GM is also scrambling to add more gas-powered models to its lineup after previously planning to phase them out completely.