General Motors will be hit with charges of about $6 billion as sales of electric vehicles sputter after the U.S. cut tax incentives to buy them and also eased auto emissions standards.
Shares slid almost 3% Friday.
The charges that will be recorded in the fourth quarter follow an announcement in October that the Detroit automaker would take a $1.6 billion charge for the same reason in the previous quarter, with automakers forced to reconsider ambitious plans to convert their fleets to electric power.
The EV tax credit ended in September. The clean vehicle tax credit was worth $7,500 for new EVs and up to $4,000 for used ones.
GM, which had been the most ambitious among all U.S. automakers with plans to replace internal combustion engines, said in its filing with the Securities and Exchange Commission late Thursday that the $6 billion in charges includes non-cash impairments and other non-cash charges of about $1.8 billion as well as supplier commercial settlements, contract cancellation fees, and other charges of approximately $4.2 billion.
EVs have been considered to be the future of the US automotive industry. GM announced in 2020 that it was going to invest $27 billion in electric and autonomous vehicles over the next five years, a 35% increase over plans made before the pandemic.
GM expected more than half of its factories in North America and China would be capable of making electric vehicles by 2030. It also pledged at the time to increase its investment in EV charging networks by nearly $750 million through 2025.
Its goal was to make the vast majority of the vehicles electric by 2035, and the entire company carbon neutral five years after that.
Those plans have been shaken due to the drastic differences in economic and environmental policies between the Biden and Trump administrations.
China has become a global leader in electric vehicle technology in recent years, with factories there churning out millions of cars and laying the groundwork for a massive charging network for vehicles.
Earlier this month, Tesla was dethroned as the world's largest EV automaker, replaced by China's BYD, which produced 2.26 million electric vehicles last year.
Also Friday, Netherlands-based Stellantis, said that due to shifting customer demand it would “phase out plug in hybrid (PHEV) programs in North America beginning with the 2026 model year, and focus on more competitive electrified solutions.” Stellantis owns Jeep, Dodge, Chrysler and other carmakers.
FILE - The 2024 Chevrolet Silverado EV sits on display at the Chicago Auto Show, Thursday, Feb. 9, 2023, in Chicago. (AP Photo/Charles Rex Arbogast, File)
WASHINGTON (AP) — For House Republicans, the political year started with a pep rally of sorts as President Donald Trump gathered them at Washington's Kennedy Center for a stemwinder of a speech. But by the time lawmakers had completed their first week of work this midterm election year, fractures in the party were already showing.
From pushback to Trump's self-described “Donroe doctrine” of aggression in the Western Hemisphere to breaks in party unity over health care, Republican lawmakers are displaying signs of independence from Trump after spending much of the last year acquiescing to his practically every demand. It showed a new dynamic in the GOP as Republicans embark on difficult campaign to keep control of both the House and Senate.
Senate Majority Leader John Thune, speaking at the U.S.-Mexico border Friday with a group of Republican Senate candidates, said that Republicans were “going to be focused like a laser” on issues of affordability and pointed to legislation in the works on housing and health care.
Thune's border trip and talk of affordability were a nod back to some of the core themes of Trump's presidential campaign. But the focus in Washington of late has instead been dominated by Trump's military operation to capture Venezuelan leader Nicolás Maduro, his threats to use military force to take control of Greenland, the release of case files on Jeffrey Epstein and a debate over extending subsidies for insurance offered under the Affordable Care Act — an issue where Republicans have long struggled to find unity.
Recent shootings by Immigration and Customs Enforcement officers in several U.S. cities, including one that killed a woman in Minneapolis, have also raised new questions about Republicans' hard-line immigration agenda and shifted attention away from Trump's handling of the border, which they see as a political success.
Even so, Trump still has plenty of command over most of the party. That was demonstrated this week by a pair of unsuccessful House veto override votes in which most GOP members stuck with the president despite previously voting for the low-profile bills.
Rep. Thomas Massie, a Kentucky Republican who has been one of the few Republicans to consistently defy Trump, said that “there was some bully pulpit intimidation going on” from the president that caused the veto overrides to fail.
Still, Democrats are making the case that Trump is becoming distracted from the needs of Americans, especially after the attack on Venezuela.
“He's lurching towards another endless, expensive war, all the while American families here are struggling with skyrocketing costs,” said Senate Democratic Leader Chuck Schumer.
To prove their point, Democrats are forcing votes on war powers resolutions that would stop Trump from attacking Venezuela without congressional approval. Such measures are rarely successful, but a procedural vote on the legislation drew support from five Republicans Thursday, setting up a final vote next week. House Democrats are also pushing forward a similar resolution.
The GOP senators who voted for the legislation tried to defuse the conflict with Trump by arguing their positions were in line with his own campaign promises to scale back U.S. commitments overseas.
“A drawn-out campaign in Venezuela involving the American military, even if unintended, would be the opposite of President Trump’s goal of ending foreign entanglements,” Sen. Todd Young, an Indiana Republican who voted for the war powers resolution, said in a lengthy statement explaining his vote.
Trump reacted with fury. The president promptly called for the five Republicans, which included Maine Sen. Susan Collins, who is up for reelection this year, to “never be elected to office again.”
Republicans are already dealing with retirements from several lawmakers who had uneasy relationships with Trump, and there was worry that such clashes could complicate their campaign picture even more.
“If Susan isn’t the senator from Maine, we’re going to end up with a Democrat,” said Sen. Bernie Moreno, an Ohio Republican. “That would be 10 times worse. But I do appreciate that President Trump is absolutely pissed off.”
Trump's desire to possess Greenland and his administration's decision not to rule out military force also met significant resistance from GOP lawmakers this week.
Sen. Thom Tillis, a North Carolina Republican who is retiring after crossing Trump last summer, took to the Senate floor to proclaim that he was “sick of stupid.” He specifically criticized White House deputy chief of policy Stephen Miller, who made comments that Greenland should be part of the U.S.
“I want good advice for this president, because I want this president to have a good legacy,” Tillis added. “And this nonsense on what’s going on with Greenland is a distraction from the good work he’s doing, and the amateurs who said it was a good idea should lose their jobs.”
Other Republicans, including Thune and Senate Armed Services Committee chair Sen. Roger Wicker, also gently pushed back on military threats against Denmark, which is a NATO ally of the U.S.
After meeting with the Danish ambassador, Wicker said it was Denmark's right not to sell Greenland.
“I’m troubled by Greenland. I'm troubled by some of the things he does. I don’t get it,” said Nebraska Rep. Don Bacon, another retiring Republican. “I do feel like Congress should be more independent and should provide checks and balances here.”
Bacon added that Trump still had the ability to “bully” his Republican colleagues, but that Trump's threats had “stiffened my spine.”
During Trump's speech at the Kennedy Center on Tuesday, he urged Republicans to own the issue of health care. Yet when the House voted Thursday on a Democratic proposal to extend expired health care subsidies for Affordable Care Act health plans, 17 Republicans broke with party leadership to help pass the bill.
“People recognize the challenge here, which is to address health care affordability,” said Rep. Mike Lawler, a New York Democrat who voted for the proposal.
He still criticized the Affordable Care Act, a hallmark piece of legislation for Democrats, yet the health care debate unfolding in Congress is one that Democrats feel confident making a central campaign issue.
“In this first, full week of the new year, House Democrats — every single one of us joined by 17 Republicans — have partnered in a bipartisan way to protect the health care of the American people,” said House Democratic leader Hakeem Jeffries following the vote.
On the fifth anniversary of the attack on the Capitol, Trump told House Republicans that he had told his supporters to go “peacefully and patriotically” to confront Congress from certifying the 2020 presidential election. The White House also unveiled a website that portrayed the Jan. 6 attack as a “witch hunt” against him by Democrats and some Republicans in Congress.
But the Senate, which Republicans control, this week agreed to display a plaque honoring the police who defended the Capitol — a cause that has become a point of contention with Trump as president. The plaque had been kept in storage rather than being displayed because House Speaker Mike Johnson had said the memorial did not comply with the law.
It was Tillis again who pushed the issue on the Republican side. He said it was important to honor the police and staff who risked their own lives and safety that day.
Democrats who joined in the effort said they were alarmed by the White House's attempt to recast the narrative.
“It's so important we be honest with the American people about what happened,” said Sen. Jeff Merkley, an Oregon Democrat.
Associated Press writers Kevin Freking, Steven Sloan, Lisa Mascaro and Nathan Ellgren contributed.
Speaker of the House Mike Johnson, R-La., center, House Republican Conference Chairwoman Lisa McClain, R-Mich., left, and House Majority Leader Steve Scalise, R-La., depart following a news conference at the Capitol, Wednesday, Jan. 7, 2026, in Washington. (AP Photo/Rod Lamkey, Jr.)
Senate Majority Leader John Thune, R-S.D., speaks during the Senate Republican policy luncheon news conference at the Capitol, Tuesday, Jan. 6, 2026, in Washington. (AP Photo/Rod Lamkey, Jr.)
House Speaker Mike Johnson of La., arrives at the U.S. Capitol Monday, Jan. 5, 2026, in Washington, for a closed-door briefing after President Donald Trump directed U.S. forces to capture Venezuelan President Nicolas Maduro. (AP Photo/Jacquelyn Martin)
President Donald Trump listens as he was speaking with reporters while in flight on Air Force One, Sunday, Jan. 4, 2026, as returning to Joint Base Andrews, Md. (AP Photo/Alex Brandon)
