General Motors takes $7.1 billion Q4 impairment charge on EV investments and assets

Watch on YouTube ↗  |  January 09, 2026 at 16:56  |  3:24  |  CNBC
Speakers
Phil LeBeau — Auto & Airlines Reporter, CNBC
David Faber — Anchor, Squawk on the Street / Media Analyst

Summary

CNBC's Phil LeBeau reports that General Motors will take a $7.1 billion pretax Q4 impairment charge on EV assets and investments, including a $6 billion write-off, with more charges expected in 2026. GM's Q4 EV sales fell 43% after incentives ended, and total US EV sales rose only 7% in 2025. Ford is also pulling back from pure EVs, discontinuing the F-150 Lightning and shifting to an extended-range version. GM will report Q4 earnings on January 27 and discuss adjustments to EV production.

  • GM announces $7.1 billion pretax Q4 EV impairment, with $6 billion write-off.
  • More EV-related charges expected in 2026.
  • GM Q4 EV sales fell 43%; US EV sales rose only 7% in 2025.
  • EVs were 7.8% of US vehicle sales; hybrids 14%; ICE 77.8%.
  • Ford discontinues pure-electric F-150 Lightning and pivots to extended-range EV.
  • GM's Orion plant shifts from EV production to internal combustion engine production.
  • GM reports Q4 financials on January 27.
Ideas
Phil LeBeau Auto & Airlines Reporter, CNBC 0:25
GM faces more EV impairment charges
General Motors is absorbing a large EV-related impairment, including a $6 billion Q4 write-off after $1.6 billion in Q3, and has warned more charges are expected in 2026. Its Q4 EV sales fell 43% as US EV demand slowed after incentives ended, and it is already pivoting its Orion plant from EV production to internal combustion engine production, making its EV exposure a continuing earnings and strategy risk.
GM HIGH
Phil LeBeau Auto & Airlines Reporter, CNBC 1:12
US EV demand slowdown hurts sector
US EV demand is slowing after the end of EV incentives: GM's Q4 EV sales fell 43%, total US EV sales rose only 7% in 2025, and EVs were just 7.8% of US vehicle sales versus more than 14% for hybrids. Automakers are responding by cutting EV production plans dramatically, which is a headwind for pure EV exposure.
DRIV MED
Phil LeBeau Auto & Airlines Reporter, CNBC 2:47
Ford cuts pure EV, shifts to EREV
Ford is pulling back from pure electric vehicles after $19.5 billion in EV-related charges: it is discontinuing the pure-electric F-150 Lightning and plans an extended-range electric version instead, while total GM and Ford EV production is expected to be dramatically lower than in the past couple of years. This makes Ford's EV transition a restructuring/execution setup rather than a clean growth story.
F MED
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This CNBC video, published January 09, 2026, features Phil LeBeau discussing GM, DRIV, F. 3 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Phil LeBeau  · Tickers: GM, DRIV, F