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American automakers General Motors A negative impact of $1.6 billion will be recorded in the next quarter after cutting tax incentives and reducing regulations for electric vehicles emissions Easy.
The EV tax credit, which gave car buyers up to $7,500 for a new EV and $4,000 for a used EV, expired last month.
General Motors had taken the lead among US carmakers with plans to transition production to electric. fleet Of vehicles.
In a regulatory filing on Tuesday, it said it would book charges that include non-cash losses due to EV capacity adjustments and other charges of $1.2 billion.
There is also a $400 million charge mostly related to contract cancellation fees and commercial settlements associated with EV-related investments.
GM warned that adjusting production could have additional impacts, with non-cash charges potentially impacting future operations and cash flow.
The company said its EV capacity realignment will not impact its retail portfolio chevroletGMC and Cadillac EVs are currently in production, and it expects these models to be available to consumers.
The company’s shares fell 3% before the opening bell on Tuesday.