General Motors Reports $347 Million Loss in China, Expects $5 Billion Hit

General Motors (GM) is facing major losses in China, one of the most important markets for the global automotive industry. The company is expecting to lose over $5 billion due to declining sales and the restructuring of its operations in the region.

GM operates in China through a joint venture with SAIC Motor, known as SAIC-GM, which is based in Shanghai. This partnership manufactures and sells vehicles under brands like Cadillac and Buick.

However, local automakers have been outperforming GM, especially with their wide range of electric and hybrid vehicles. These vehicles now account for more than half of all car sales in China, far surpassing GM’s offerings. As a result, GM will take a financial hit in the fourth quarter, writing off between $2.6 and $2.9 billion to account for its reduced stake in the joint venture.

GM will allocate an additional $2.7 billion to the venture's restructuring costs. For the first three quarters of the year, GM reported a $347 million loss in China, with sales dropping by nearly 20%. The company’s market share in the country also slipped from 8.6% to 6.8% in just one year.