General Motors (GM) is rethinking its strategy in China due to the country’s crowded market, which has led to significant losses for the American automaker. The company has announced a major restructuring plan, including asset writedowns of over $5 billion and factory closures.
Historically, GM’s brands such as Buick and Chevrolet were highly regarded in China, but the market has become increasingly competitive. According to Mary Barra, GM’s CEO, China’s crowded market is a “race to the bottom,” making it challenging for companies like GM to maintain profitability.
The latest move by GM comes after the company faced significant losses in its investment with Shanghai’s SAIC Motor Corp., a joint venture that has seen its share prices decline. The restructuring plan aims to address these losses and position GM for long-term success in the Chinese market, although the exact details of the plan remain unclear.
Source: https://www.bloomberg.com/news/articles/2024-12-04/gm-gm-china-writedown-deals-blow-to-global-business