The charge stems from scaling back EV production and the resulting impact on the supply chain, GM said in a regulatory filing.

Most of the writedown, a $4.2 billion cash charge, is linked to contract cancellations and settlements with suppliers that had prepared for higher production volumes.

GM said the writedown would not affect its US lineup of around a dozen EV models and said it plans to continue offering them to consumers.

The charge will be recorded as a special item in its fourth-quarter earnings report, with additional but smaller charges expected in 2026 following further supplier negotiations.

Shares fell 2% in after-hours trading, after closing up 3.9% at $85.13.

The automaker has been cutting back EV-related operations in recent months, including halting battery production at two joint-venture plants for six months and reducing shifts at an EV-only factory in Detroit.

GM has also moved away from plans for a new Michigan EV plant and will instead produce gas-powered vehicles at the site.

GM also said it would record a separate $1.1 billion charge in the fourth quarter related to the restructuring of its China joint venture.