Transportation
GM Sees $5 Billion Hit to Revamp Its Troubled China Business
- Automaker will write down value of China JV, close plants
- Actions follow years of turmoil for venture with SAIC
Prior to the writedown, GM valued its stake in its joint venture with SAIC at $6.4 billion as of the end of 2023.
Photographer: Mauricio Palos/BloombergThis article is for subscribers only.
General Motors Co. will incur more than $5 billion in charges and writedowns tied to its troubled operations in China as the automaker tries to salvage its once-profitable business in the world’s largest car market.
The carmaker expects to write down the value of its joint-venture operations in China by as much $2.9 billion, it said in a securities filing on Wednesday. The company will also take another $2.7 billion in charges for costs to close factories and restructure its operations in China.