General Motors (GM) said Wednesday that it would record two non-cash charges totaling over $5 billion on its joint venture operations with SAIC Motors in China, according to Reuters.
The automaker expects a $2.7 billion charge for reduced joint-venture value and a $2.6 billion to $2.9 billion charge for restructuring costs, according to Reuters. GM has struggled in the Chinese auto market, and lost about $350 million in the region in the first three quarters of 2024, Reuters reported.
China’s auto industry has seen robust demand and has experienced a boost in car sales largely bolstered by government subsidy programs and tax rebates. Chinese vehicle sales rose 4.3% in September from the previous year, in part due to subsidies for buyers trading in older vehicles for electric vehicles (EVs) and more fuel-efficient vehicles, according to Reuters.
U.S. and European carmakers are…
