GM Takes $7.1B Hit EV Strategy Shift

GM takes $7.1 billion in charges on EV operations and China investments. Ford announced $19.5 billion in EV writedowns three weeks earlier.

Legacy automakers bet billions on political mandates that changed before products launched.

Your business needs to understand that building for regulatory requirements creates risk when regulations shift. When GM writes down $6 billion on EVs after tax incentives disappear and emissions rules loosen, they're paying for strategy built on government policy instead of consumer demand.

Consumer demand for EVs weakened. Tax credits got pulled. Emissions regulations relaxed. China restructuring cost another $1.1 billion. The combined $7.1 billion reflects bets that didn't pay off.

-) $6 billion EV writedown
-) $1.1 billion China restructuring
-) Ford took $19.5 billion hit weeks earlier

Both companies invested heavily expecting mandates would force EV adoption. Policy changed. Consumer preferences stayed lukewarm. Production capacity exceeded actual demand.

Build products around confirmed market demand, not anticipated regulations. Calculate exposure if policy support disappears before payback periods complete. Recognize when competitors take similar writedowns that your strategy faces identical risks.

Did you build your roadmap around what customers want or what you assumed governments would require them to buy?