GM Restructures China Operations Amid $5B Loss

General Motors (GM) is facing significant financial challenges with its joint venture in China, leading to anticipated charges exceeding $5 billion in the fourth quarter of 2024. The company plans to write down the value of its equity stake in the joint venture with SAIC Motor by $2.6 to $2.9 billion and incur additional restructuring costs of $2.7 billion, mainly due to plant closures and portfolio optimization. This restructuring is part of GM’s strategy to address market challenges and competitive conditions in China, where its market share has declined sharply. The non-cash charges will affect GM's net income but not its adjusted pretax earnings. Despite these challenges, GM expects to maintain a full-year net profit of $10.4 to $11.1 billion. CEO Mary Barra remains hopeful for a turnaround, emphasizing a focus on capital efficiency and cost discipline.