GM Faces $6 Billion Hit as EV Ambitions Stumble

General Motors faces $6 billion in charges as electric vehicle sales decline following cuts to U.S. tax incentives and relaxed emissions standards. The announcement comes after a previous quarter's charge of $1.6 billion, forcing the automaker to reassess its transition to electric power.

General Motors is navigating a challenging financial landscape as it confronts approximately $6 billion in charges tied to faltering electric vehicle sales. This setback arises in the wake of the U.S. government's reduction of tax incentives for electric vehicles and the relaxation of auto emissions standards.

The decision, announced Thursday, saw GM's shares drop 2% ahead of Friday's market opening, underscoring the company's precarious position. The losses will be recorded in the fourth quarter, following an earlier announcement in October of a $1.6 billion charge for similar reasons in the preceding quarter.

Once a frontrunner in the push towards electric power, GM's shift in strategy reflects broader industry challenges exacerbated by policy shifts and intensified global competition, especially from China-based manufacturers.

(With inputs from agencies.)