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General Motors Faces $5 Billion Charge Due to Poor Performance in China

General Motors will record over $5 billion in charges due to underperforming joint ventures in China, prompting major restructuring efforts.

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Updated: Dec 4th, 2024, 10:19 AM ET

Summary

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General Motors has announced a significant charge exceeding $5 billion due to losses from its joint ventures in China. The automaker will write down asset values by $2.6 to $2.9 billion and forecast an additional $2.7 billion in restructuring costs. The charges, primarily non-cash, will lead to a reduction in net income but not affect adjusted earnings. GM's operations in China have deteriorated significantly due to increased domestic competition and a lack of profitability, prompting the need for strategic restructuring in anticipation of potential recovery by 2025.

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General Motors Faces $5 Billion Charge Due to Poor Performance in China - Pano News