Trump's policies reversed the electric car trend, with General Motors Company (GM.US) cutting production capacity and recording $1.6 billion in expenses.

General Motors Company (GM.US) incurred $1.6 billion in costs due to cutting back on its electric vehicle production plan, highlighting the losses suffered by American automakers as a result of reduced federal government support for electric cars. According to regulatory filings disclosed by General Motors Company on Tuesday, $1.2 billion in non-cash impairment and other expenses stem from adjustments in electric vehicle production capacity, while the remaining costs are related to canceled contracts and commercial arrangements for electric vehicle investments, which will have a direct impact on cash flow. General Motors Company warned that its electric vehicle manufacturing business is currently under reassessment, and there is a "high likelihood" of confirming more charges that will affect performance in the coming quarters. The current US automotive market is adjusting its direction due to the tumultuous policies of the Trump administration. At the end of last month, the Trump administration canceled tax credits for electric vehicles and substantially rolled back fuel economy and emission standards, prompting automakers to shift towards selling gasoline-powered vehicles with higher profits and reduce electric vehicle production. In the filings, General Motors Company stated, "Recent changes in US government policies, including the termination of consumer tax incentives for electric vehicles and a reduction in the stringency of emission regulations, are expected to slow down the adoption rate of electric vehicles." As of Monday's close, General Motors Company's stock price rose by 4.4% this year, but it lagged behind the S&P 500 index's 13% increase. In terms of specific adjustment measures, General Motors Company announced last month that it will reintroduce the Chevrolet Bolt electric vehicle at its Kansas factory in December and reduce production shifts from two to one; at the same time, it plans to temporarily halt production of the Cadillac Lyriq and Vistiq electric vehicles at its Tennessee factory in December and reduce production shifts to one from January to May next year. The company previously stated that this was a "strategic production adjustment based on anticipated slowing growth in the electric vehicle industry and customer demand". This adjustment mirrors that of competitor Ford Motor Company (F.US). Ford has delayed or canceled the launch of some plug-in models and pulled funds from its loss-making electric vehicle business. In 2024, Ford incurred a loss of $1.9 billion due to the cancellation of an electric SUV plan. Subsequently, the outlook for electric vehicles has become more uncertain Ford's CEO Jim Farley said last month that Trump's policies are pushing consumers towards gasoline cars, making the electric vehicle market "much smaller than expected". Despite recent growth in electric vehicle sales due to consumers rushing to make purchases before the tax credits expire, overall sales are showing a downward trend. General Motors Company's US sales grew by 8% in the third quarter, with electric vehicle deliveries more than doubling to over 66,000 units. General Motors Company will announce its quarterly financial performance on October 21, where it will further disclose details of the adjustments.