Losses in China lead to $5-billion charge for General Motors
LA TimesThe poor performance of General Motors’ Chinese joint ventures is forcing the company to write down assets and take a restructuring charge totaling more than $5 billion in the fourth quarter of this year. The main joint venture with SAIC, called SGM, is finishing restructuring actions that GM expects will “address market challenges and competitive conditions,” GM said in the filing. On GM’s third-quarter earnings conference call, Chief Financial Officer Paul Jacobson said restructuring in China had not yet started, but sales were up and inventory was down. Chief Executive Mary Barra said China is a difficult environment because some domestic brands “don’t seem to prioritize profitability, they’re definitely prioritizing production.” She said GM can make money there in a different way, focusing on a new pickup truck and importing premium vehicles.
History of this topic
GM joint venture waves off fears after big losses
China Daily
GM joint venture waves off fears after big losses
China Daily
GM joint venture waves off fears after big losses
China Daily
GM is struggling so much in China, it had to announce massive charges to fix its business
CNN
General Motors layoffs: Company cuts China jobs, to focus on electric vehicles
Hindustan Times
GM reiterates commitment to Chinese market
China DailyA very strong quarter at General Motors is overshadowed by potential headwinds for industry
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