GM Faces $5 Billion Charges on China Ventures

General Motors (GM) has announced plans to incur over $5 billion in non-cash charges related to restructuring its joint venture operations with SAIC Motor Corp. in China. The automaker expects to write down the value of its joint-venture assets by $2.6 billion to $2.9 billion and incur an additional $2.7 billion in restructuring costs, primarily in the fourth quarter. This move comes as GM faces declining sales and increased competition in the Chinese market, which has adversely affected its previous profit margins. Despite these challenges, GM projects a net profit between $10.4 billion and $11.1 billion for the year. CEO Mary Barra has emphasized a commitment to operational efficiency and plans to enhance performance in China by 2025. The company has already experienced significant losses in the region, amounting to about $350 million in the first three quarters of the year.