GM slams the brakes: US withdrawal of EV subsidies leaves a billion-dollar dent
General Motors’ electric breakthrough has turned unexpectedly expensive. After the United States ended its electric vehicle purchase subsidies on 30 September, the carmaker estimated the financial hit at 1.6 billion dollars (about 1.48 billion euros). Most of that stems from reshaping production volumes and delaying several new model launches.
According to GM, the decision is more than a short-term sales setback. It forces the entire market to recalibrate. With lower demand come fewer electric cars on the line and deeper cuts in the balance sheet. Around 1.2 billion dollars will go into reorganising production and development, while the rest will be swallowed by cancelled contracts and shelved partnerships. GM admits the losses could climb even higher.
Yet things had looked bright not long ago. Between July and September, GM’s EV sales more than doubled. Chevrolet became the second most popular electric brand in the US, trailing only Tesla, and the Equinox EV drew the most attention among buyers.
Competitors are feeling the same sting. Ford had already announced a 400 million dollar write-off and a 1.5 billion reduction in its electric investment programme, effectively ending the development of a large electric SUV. Stellantis, meanwhile, is moving more cautiously, focusing its next generation of vehicles on just one partly electrified variant.
American carmakers now face a question that only recently seemed purely theoretical: how expensive will the green transition become once the government steps aside?
