Industrials Rise Amid Promising Earnings Start, GM Cuts EV Capacity, Boeing Clears EU Deal

Industrial and transportation stocks rose as earnings season began positively. General Motors reduced EV manufacturing capacity and booked a $1.6 bln charge due to decreased demand. Boeing's $4.7 bln acquisition of Spirit AeroSystems Holdings was cleared by the European Union after the company agreed to sell some Spirit operations to address competition concerns.

Industrial and transportation stocks have shown positive performance as the earnings season kicked off. General Motors (GM) announced that the Audit Committee of the Board approved charges of $1.6 billion in GM North America for the three months ended September 30, 2025. This charge is a result of a strategic realignment of EV capacity and manufacturing footprint to align with consumer demand.

The charges include non-cash impairment and other charges of $1.2 billion due to adjustments to EV capacity, as well as $0.4 billion from contract cancellation fees and commercial settlements associated with EV-related investments. These factors will have a cash impact on the company. GM attributed these changes to recent U.S. government policy shifts, including the termination of certain consumer tax incentives for EV purchases and the reduction in the stringency of emissions regulations. These developments have led to a slowdown in the adoption rate of EVs, prompting GM to reassess its EV capacity and manufacturing footprint.

The reassessment includes investments in battery component manufacturing and may result in additional future material cash and non-cash charges, which could adversely affect GM's results of operations and cash flows. Shares of General Motors are down 1.8% in pre-market trade on Tuesday.

Meanwhile, Boeing's $4.7 billion acquisition of Spirit AeroSystems Holdings was cleared by the European Union after Boeing agreed to sell some Spirit operations to address competition concerns. This acquisition aims to strengthen Boeing's supply chain and improve operational efficiency.