At a Glance

  • General Motors' restructuring efforts for its electric vehicle division are nearing completion. According to earnings released Tuesday, in the second quarter ended June 30, the company recorded$2.3 billion in incremental charges。
  • GM Chief Financial Officer Paul Jacobson said Tuesday (according to the earnings call transcript) that these incremental charges include $900 million in "supplier-related cash expenditures" and $700 million in costs to resize its battery supply chain. He added that since beginning to restructure the division in the second half of 2025, GM has accumulated $10.9 billion in EV-related charges.
  • Jacobson said: "I'm proud to say that we believe these actions have largely completed the significant cash expenditures we anticipated as we adjusted our EV capacity and manufacturing footprint to align with regulatory policy changes. While circumstances may change and there could be some adjustments, it's important to put this work behind us."

Deeper Dive

GM is one of several automakers that have scaled back or realigned their EV business strategies in recent months. For example, Japanese automaker Honda Motors recently canceled plans to launch new EV models and abandoned its goal of making electric vehicles at least one-fifth of its sales by 2030 — a decision that comes as the companyrecorded its first annual loss in nearly 70 years, which included $9 billion in EV restructuring costs, Reuters reported in May.

Meanwhile, Ford Motor has made several adjustments to its EV strategy in recent months, including merging its electric vehicle and manufacturing divisions. This follows Ford's decision to pause the launch of several EV models due to weak demand in 2025, resulting in$19.5 billion in related charges, Quartz reported in April.

The backdrop for automakers scaling back EV operations includes both shifts in consumer demand and changes in regulatory policy, such as the U.S. government'stermination of the federal tax credit for consumers purchasing electric vehicles last September。

Although EV sales improved month-over-month in May, "overall demand remains below year-ago levels," Cox Automotive noted in its electric vehicle market monitor report released June 16. Notably, however, the 21.9% year-over-year decline in such sales that monthwas the smallest decline since government aid, including EV tax credits, was eliminated, the report said.

While completing the resizing of its EV division, GM is also "winning in the segments we value most," Jacobson said, which includes its full-size pickup and sport utility vehicle offerings.

"The investments we've made to advance localization, launch key models, and expand full-size SUV capacity will give us greater flexibility and enable us to achieve revenue growth, market share gains, and improved profitability in 2027," he said.

For the six months ended June 30, GM reported net income attributable to shareholders of $3.9 billion, down 16% from $4.6 billion in the same period last year.

According to its earnings report, GM expects full-year net income attributable to shareholders to be between $8.4 billion and $9.8 billion.