GM had hoped to finagle a way to extend the clean vehicle tax credit to its customers by buying them itself and then leasing them to customers. But strong opposition from Republican senator and car dealer Bernie Moreno (R-Ohio) and his colleague John Barasso (R-Md.) saw GM scrap this plan beyond the end of October.

Around the same time, GM’s audit committee approved the $1.6 billion charge due to expectations that EV adoption will decrease in the US. $1.2 billion is due to changes to its EV production capacity, and another $400 million is the cash impact from canceling contracts with suppliers.

It might not be the only time, either. “The reassessment of our EV capacity and manufacturing footprint, including our investments in our battery component manufacturing, is ongoing, and it is reasonably possible that we will recognize additional future material cash and non-cash charges that may adversely affect our results of operations and cash flows in the period in which they are recognized,” the company wrote in its filing.

However, GM says that its strategic realignment will not affect the current EV portfolio, and it “expect[s] these models to remain available to customers.”