General Motors' restructuring operations in China may cause more than $5B in losses
Company's equity interest in joint venture in China expected to see decrease of around $2.6 - 2.9B
General Motors logo (Aytaç Ünal - Agencia Anadolu)
WASHINGTON
General Motors (GM) restructuring operations in China are expected to cause losses of more than $5 billion, the company said Wednesday.
The US automaker’s notification to the US Securities and Exchange Commission (SEC) said GM is in the process of evaluating the effect of restructuring steps of a joint venture with SAIC Motor in China.
It is estimated that the company's equity interest in the venture will record a non-permanent decrease in value in the range of $2.6-2.9 billion.
And an additional loss of approximately $2.7 billion is expected to arise from plant closures and portfolio adjustments within the scope of the restructuring plan of the joint venture.
GM reported a loss of $347 million for its Chinese operations in the first nine months of 2024.
The automaker's market share in China fell from about 15% in 2015 to 8.6% last year.
*Writing by Gokhan Ergocun from Istanbul
