GM To Record ~$7.1B In Q4 2025 Charges, Including ~$6.0B EV-Related Impairments And ~$1.1B China Restructuring And Legal Costs, After Slowing EV Demand And Capacity Cuts

GM) have been investing significant capital to develop electric vehicles (EVs) to meet increasingly stringent fuel

economy and emissions regulations in the United States and growing customer demand. Our strategy in North

America has been focused on delivering exceptional vehicles quickly and cost effectively. To realize economies of

scale, GM added EV production to existing assembly plants and developed a dedicated EV architecture and

propulsion strategy. These initiatives helped the Company become the #2 seller of EVs in North America beginning

in the second half of 2024 on the strength of our broad portfolio of award-winning electric SUVs, trucks and luxury

vehicles.

With the termination of certain consumer tax incentives and the reduction in the stringency of emissions regulations,

industry-wide consumer demand for EVs in North America began to slow in 2025. As a result, GM proactively

reduced EV capacity, including by pivoting the Company's assembly plant in Orion, MI from EV production to the

production of full-size SUVs and full-size pickups powered by internal combustion engines, where we believe we

have unmet demand, and we proactively reduced battery cell capacity, including by selling our interest in Ultium

Cells LLC's Lansing, MI facility to LG Energy Solution.

In October 2025, GM announced a broader reassessment of its EV capacity and manufacturing footprint to align

with expected consumer demand and U.S. Government policy changes and recorded charges of $1.6 billion in GM

North America (GMNA) in the three months ended September 30, 2025. Our review of EV capacity and

investments continued throughout the fourth quarter and, as a result, we expect to record charges of approximately

$6.0 billion in the three months ended December 31, 2025, primarily in GMNA. These charges include non-cash

impairments and other non-cash charges of approximately $1.8 billion as well as supplier commercial settlements,

contract cancellation fees, and other charges of approximately $4.2 billion, which will have a cash impact when

paid. We expect to recognize additional material cash and non-cash charges in 2026 related to continued commercial

negotiations with our supply base, which we believe will be significantly less than the EV-related charges incurred

in 2025. In addition, proposed regulatory changes to the greenhouse gas emission standards could result in an

impairment of our emissions credits, similar to the previous impairment we recognized related to our CAFE credits.

Such charges may adversely affect our results of operations and cash flows in the period in which they are

recognized. As previously disclosed, our strategic realignment of EV capacity does not impact today's retail

portfolio of Chevrolet, GMC, and Cadillac EVs in production, and we plan to continue to make these models

available to consumers.

We also expect to record additional non-EV related charges of approximately $1.1 billion for the three months ended

December 31, 2025 that will have an approximately $0.5 billion cash impact when paid. These charges mainly relate

to (i) the previously announced restructuring of our China joint venture, SAIC General Motors Corporate Limited

(SGM), primarily related to our proportionate share of supplier claims, and (ii) an additional legal accrual. The EV-

related charges, the China restructuring charges, the legal accrual and certain other insignificant charges expected to

be recognized in the three months ended December 31, 2025 will be reflected as adjustments in our non-GAAP