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Summarize this content to 100 words: General Motors on Tuesday announced a multibillion-dollar charge related to the realignment of its electric vehicle (EV) strategy following the release of its 2025 financial results and its guidance for 2026.GM reported that its net income attributable to stockholders was $2.7 billion with an EBIT-adjusted $12.7 billion.The Detroit automaker’s fourth-quarter net income was lowered by over $7.2 billion in special charges that GM attributed primarily to changes in its EV capacity and investments as it adjusts to anticipated declines in consumer demand for EVs.Policy changes made by the Trump administration, including the termination of tax credits for consumers purchasing EVs as well as changes that will ease regulations restricting vehicle emissions, also contributed to the anticipated decline in demand.INSIDE GM’S $242M PUSH TO REBUILD AMERICA’S SKILLED TRADES WORKFORCEThe $7,500 EV tax credit for consumers was removed at the end of September and GM is continuing to work to reduce costs stemming from its EV business as it restructures to account for changes in consumer demand.GM CEO Mary Barra told CNBC on Tuesday that, “From an EV perspective, we do believe that that is the end game. We’re continuing to work on cost improvements.”CFO Paul Jacobson said on the company’s earnings call that GM expects to see a cost reduction of $1 billion to $1.5 billion within its EV business due to the restructuring effort.GM TAKES $1.6B FINANCIAL HIT AS EV TAX CREDIT CHANGES FOR STRATEGY OVERHAULGM’s outlook for 2026 noted that it expects the rollback of federal emissions rules could save the company up to $750 million from no longer having to buy credits from EV-makers to comply with fuel efficiency and tailpipe emissions rules.The company also said that it expects a more favorable regulatory climate to help it bring more production back to the U.S. in the years ahead, though that will increase its expenses and Jacobson said on the company’s earnings call that the onshoring moves, supply chain shifts and software investments could increase costs by $1.5 billion.NEWSOM SAYS GM’S MARY BARRA ‘SOLD US OUT’ ON ELECTRIC VEHICLE POLICIES AND FEDERAL SUBSIDIESGM expects that its tariff costs will be between $3 billion and $4 billion this year, which it expects to partially offset through mitigation measures like those it undertook last year. The company said that in 2025 it managed to offset over 40% of its gross tariff costs through shifting factory work and cutting other costs.The company’s fourth-quarter profit beat analysts’ estimates and GM stock rose over 8.5% in Tuesday’s trading session into the early afternoon hours.GET FOX BUSINESS ON THE GO BY CLICKING HEREReuters contributed to this report.
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