Item 2.06. Material Impairments.
General Motors Company (the “Company,” “we,” “our” or “GM”) made significant investments and contractual
commitments in the development of electric vehicles (EVs) to help the Company’s vehicle fleet comply with
emissions and fuel economy regulations that were scheduled to become increasingly stringent. Following recent
U.S. Government policy changes, including the termination of certain consumer tax incentives for EV purchases and
the reduction in the stringency of emissions regulations, we expect the adoption rate of EVs to slow. These
developments have caused us to reassess our EV capacity and manufacturing footprint. On October 7, 2025, the
Audit Committee of the Company’s Board of Directors approved charges of $1.6 billion in GM North America
(GMNA) in the three months ended September 30, 2025, based on a planned strategic realignment of our EV
capacity and manufacturing footprint to consumer demand. These charges include non-cash impairment and other
charges of $1.2 billion as a result of adjustments to our EV capacity. In addition, the Company has incurred charges
of $0.4 billion, primarily related to contract cancellation fees and commercial settlements associated with EV-related
investments, which will have a cash impact. The reassessment of our EV capacity and manufacturing footprint,
including our investments in our battery component manufacturing, is ongoing, and it is reasonably possible that we
will recognize additional future material cash and non-cash charges that may adversely affect our results of
operations and cash flows in the period in which they are recognized. These amounts, and certain other insignificant
charges expected to be recognized in this quarter, will be reflected as adjustments in our non-GAAP financial
measures. Refer to the “Non-GAAP Measures” section in our 2024 Form 10-K for additional information. Our
strategic realignment of EV capacity does not impact today’s retail portfolio of Chevrolet, GMC and Cadillac EVs
currently in production, and we expect these models to remain available to consumers.
Cautionary Note on Forward Looking Statements
This Current Report on Form 8-K and the other reports filed by us with the Securities and Exchange Commission
(SEC) from time to time, as well as statements incorporated by reference herein and related comments by our
management, may include "forward-looking statements" within the meaning of the U.S. federal securities laws.
Forward-looking statements are any statements other than statements of historical fact. Forward-looking statements
represent our current judgment about possible future events and are often identified by words like “aim,”
“anticipate,” “appears,” “approximately,” “believe,” “continue,” “could,” “designed,” “effect,” “estimate,”
“evaluate,” “expect,” “forecast,” “goal,” “initiative,” “intend,” “may,” “objective,” “outlook,” “plan,” “potential,”
“priorities,” “project,” “pursue,” “seek,” “should,” “target,” “when,” “will,” “would,” or the negative of any of those
words or similar expressions. In making these statements, we rely on assumptions and analysis based on our
experience and perception of historical trends, current conditions and expected future developments as well as other
factors we consider appropriate under the circumstances. We believe these judgments are reasonable, but these
statements are not guarantees of any future events or financial results, and our actual results may differ materially
due to a variety of important factors, many of which are beyond our control. These factors, which may be revised or
supplemented in subsequent reports we file with the SEC, include, among others, the following: (1) our ability to
deliver new products, services, technologies and customer experiences in response to increased competition and
changing consumer needs and preferences; (2) our ability to attract and retain talented and highly skilled employees;
(3) our ability to timely fund and introduce new and improved vehicle models, including EVs, that are able to attract
a sufficient number of consumers; (4) our ability to profitably deliver a strategic portfolio of EVs; (5) adoptions of
EVs by consumers; (6) the success of our current line of ICE vehicles, particularly our full-size sport utility vehicles
(SUVs) and full-size pickup trucks; (7) our highly competitive industry, which has been historically characterized by
excess manufacturing capacity and the use of incentives, and the introduction of new and improved vehicle models
by our competitors; (8) the unique technological, operational, regulatory and competitive risks related to our
refocused autonomous vehicle (AV) strategy on personal vehicles; (9) risks associated with climate change,
including increased regulation of greenhouse gas (GHG) emissions, our transition to EVs and the potential increased
impacts of severe weather events; (10) global automobile market sales volume, which can be volatile; (11)
inflationary pressures and persistently high prices and uncertain availability of raw materials and commodities used
by us and our suppliers, and instability in logistics and related costs; (12) our business in China, which is subject to
unique operational, competitive, regulatory and economic risks; (13) the success of our ongoing strategic business
relationships, particularly with respect to facilitating access to raw materials necessary for the production of EVs,
and of our joint ventures, which we cannot operate solely for our benefit and over which we may have limited