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GM discloses $7bn hit from EV transition and China restructuring

Detroit-based carmaker says it ‘proactively reduced EV capacity’

General Motors expects to take a $6bn hit as a result of its stalled electric vehicle transition, as a sharp drop in consumer demand continues to take a toll on US car giants.

The Detroit-based carmaker disclosed the charge in a regulatory filing on Wednesday while also recording a $1.1bn service charge relating to a restructuring of its business in China.

Shares fell as much as 1.9 per cent in after-hours trading following the disclosure.

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