GM pares back EV capacity plans

General Motors will scale back electric-vehicle (EV) capacity after acknowledging US buyers are adopting EVs more slowly than it expected, even as the carmaker posted a solid third quarter and lifted full-year earnings guidance.

GM said steadily tougher fuel-economy and emissions rules had shaped its plans in recent years, prompting an aggressive build-out of EV production. With policy settings shifting and federal consumer incentives ending, the company is reassessing where and how much EV capacity it needs and has taken a special charge this quarter, with more possible.

“Over the past several years, our portfolio and capacity plans have been shaped by steadily increasing regulatory stringency for fuel economy and emissions,” chair and chief executive Mary Barra says.

“To meet these requirements, we aggressively expanded our electric vehicle capacity.

“However, with the evolving regulatory framework and the end of federal consumer incentives, it is now clear that near-term EV adoption will be lower than planned. That is why we are reassessing our EV capacity and manufacturing footprint.”

Barra says the reset is aimed at stemming losses from the EV programme.

“The work, which is ongoing, resulted in a special charge in the third quarter, and we expect future charges. By acting swiftly and decisively to address overcapacity, we expect to reduce EV losses in 2026 and beyond.”

She reiterated GM’s longer-term commitment to electrification.

“As I have said, electric vehicles remain our North Star, and I am proud of the way our portfolio of Cadillac, Chevrolet and GMC EVs have connected with customers. We believe their performance will improve, even in a smaller market. At the same time, we will continue to invest in new battery chemistries, form factors, and architectural improvements to drive profitability.”

GM also pointed to US policy changes it says will help domestic manufacturing.

“The MSRP offset program will help make U.S.-produced vehicles more competitive over the next five years, and GM is very well positioned as we invest to increase our already significant domestic sourcing and manufacturing footprint,” Barra says.

The EV recalibration sits alongside continued investment in internal-combustion models, with GM saying ICE volumes will remain “higher for longer”.

For the three months to September 30, GM reported revenue of US$48.6 billion, net income attributable to stockholders of US$1.3b and EBIT-adjusted of US$3.4b. It raised 2025 guidance to EBIT-adjusted of US$12.0b–US$13.0b, adjusted automotive free cash flow of US$10.0b–US$11.0b and EPS diluted-adjusted of US$9.75–US$10.50.