GM expects more than $5 billion impact from China restructuring, including plant closures

GM expects more than  billion impact from China restructuring, including plant closures


Employees work on Buick Envision SUVs at General Motors’ Dong Yue assembly plant, officially known as SAIC-GM Dong Yue Motors Co., Ltd., on Nov. 17, 2022, in Yantai, Shandong Province of China.

Tang Ke | Visual China Group | Getty Images

DETROIT – General Motors expects a restructuring of its joint venture operations with SAIC Motor Corp. in China to cost more than $5 billion in charges and writedowns, the Detroit automaker disclosed in a federal filing Wednesday morning.

GM said it expects to write down the value of its joint-venture operations in China by between $2.6 billion and $2.9 billion. It also anticipates another $2.7 billion in charges to restructure the business, including “plant closures and portfolio optimization,” according to the filing.

GM, which previously announced plans to restructure the operations in China, did not disclose any additional details about the expected closures.

“As we have consistently said, we are focused on capital efficiency and cost discipline and have been working with SGM to turn around the business in China in order to be sustainable and profitable in the market.  We are close to finalizing our restructuring plan with our partner, and we expect our results in China in 2025 to show year-over-year improvement,” GM said in an emailed statement.

GM said it believes the joint venture “has the ability to restructure without new cash investments” from the American automaker.

A majority of the $2.7 billion restructuring costs is expected to be recognized as non-cash, special item charges during the fourth quarter. That means they will impact the automaker’s net income but not its adjusted earnings before interest and taxes – a key metric monitored by Wall Street.



Source

Europe’s companies sound alarm over tariff hits amid scramble to strike U.S. trade deal
World

Europe’s companies sound alarm over tariff hits amid scramble to strike U.S. trade deal

European officials are working to secure a trade deal with the Trump administration, as regional companies sound the alarm over financial hits even before reciprocal tariffs have come into play. Earlier this month , U.S. President Donald Trump said he would slap a 30% tariff on all goods imported to America from the European Union, […]

Read More
Puma shares plunge 15% after full-year sales, profit outlook cut on U.S. tariffs
World

Puma shares plunge 15% after full-year sales, profit outlook cut on U.S. tariffs

Sign at the entrance to the Puma store in Midtown Manhattan. Erik Mcgregor | Lightrocket | Getty Images Puma shares plummeted as much as 18% Friday after the German sportwear brand posted worse-than-expected second-quarter sales and cut its full-year guidance, flagging the impact of U.S. trade tariffs. In a preliminary updated after markets closed on […]

Read More
Textiles to whisky: U.K.–India ‘historic’ deal is set to boost bilateral trade by over  billion a year
World

Textiles to whisky: U.K.–India ‘historic’ deal is set to boost bilateral trade by over $34 billion a year

AYLESBURY, ENGLAND – JULY 24: UK Prime Minister Keir Starmer and Prime Minister Narendra Modi of India walk in the grounds at Chequers on July 24, 2025 in Aylesbury, England. Kin Cheung | Getty Images News | Getty Images U.K. and India’s bilateral trade is set to get a more than $34 billion annual boost […]

Read More