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General Motors expects to take a fresh $6bn hit as a result of its stalled electric vehicle transition, as a sharp drop in consumer demand for the vehicles continues to take its toll on US car giants.
The Detroit-based carmaker disclosed the charge in a regulatory filing on Wednesday as it “proactively reduced EV capacity”. It also recorded a $1.1bn service charge relating to a restructuring of its business in China.
GM, which produces the Chevrolet, GMC, Buick and Cadillac brands, said in November 2022 that it expected to have a “solidly profitable” EV business producing 1mn units a year by 2025. Instead, it sold 169,887 EVs in the US last year.
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