GM’s EV Charges Balloon to $7.6 Billion as US Demand Craters

Watch on YouTube ↗  |  January 09, 2026 at 22:10  |  4:39  |  Bloomberg Markets
Speakers
Craig Trudell — Reporter, Bloomberg News

Summary

General Motors is taking another $6 billion in EV and battery charges, bringing total writedowns to $7.6 billion, as US EV demand weakens. The discussion covers GM's decision to pare back EV production and the market's positive reaction, contrasting US EV weakness with Europe's 30% BEV sales growth driven by Chinese manufacturers. It also highlights hybrids as a longer-lasting bridge technology, benefiting Toyota's strategy and absorbing excess battery capacity.

  • GM announces $6B additional EV/battery charges, total $7.6B.
  • US EV demand outlook remains weak; transition slower than expected.
  • GM shares up 61% over trailing 12 months despite charges.
  • Market rewards GM for focusing on full-size pickups and SUVs.
  • Europe saw roughly 30% BEV sales growth, driven by Chinese manufacturers.
  • Toyota's hybrid-focused strategy is viewed as the right play.
  • Hybrids expected to last longer as bridge technology and absorb excess battery capacity.
Ideas
Craig Trudell Reporter, Bloomberg News 1:55
GM EV pullback supports truck/SUV focus.
General Motors' EV and battery writedowns and production cuts are part of a broader US rationalization. The market has rewarded GM, with the stock up 61% over the trailing 12 months, for paring back the EV transition because GM's core profit engine is full-size pickups and SUVs, and making more of those is viewed positively. GM remains more committed to EVs than Ford, but the market is focused on its high-margin ICE trucks and SUVs.
GM MED
Craig Trudell Reporter, Bloomberg News 2:39
Chinese EV makers drive European EV growth.
European battery electric vehicle sales rose roughly 30% last year even as the EU backed off its 2035 combustion-engine ban, and much of that momentum was driven by Chinese manufacturers. Local European manufacturers are improving but remain patchy country by country, while Tesla had a tough 2025.
Chinese EV manufacturers MED
Craig Trudell Reporter, Bloomberg News 3:33
Hybrids are the longer-lasting bridge technology.
The bridge from internal combustion to full EVs is lasting longer than expected, and hybrids will be a major beneficiary. Excess US battery capacity built under Biden-era EV incentives will be absorbed by hybrids, and making popular US pickups and SUVs more efficient offers a cheaper-to-refuel, better-to-run compromise.
Hybrid vehicles HIGH
Craig Trudell Reporter, Bloomberg News 3:41
Toyota's hybrid bet is now the play.
Hybrids are proving to be a longer-lasting bridge technology than many expected. Toyota was criticized for clinging to hybrids and the Prius instead of going all-in on EVs, but that strategy has turned out to be the right play as hybrid demand persists and helps absorb excess battery capacity.
TM HIGH
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This Bloomberg Markets video, published January 09, 2026, features Craig Trudell discussing GM, Chinese EV manufacturers, Hybrid vehicles, TM. 4 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Craig Trudell  · Tickers: GM, Chinese EV manufacturers, Hybrid vehicles, TM