GM plans to restructure its China business, expected to affect net profit

GM China issued a statement, emphasizing that the Chinese business is a high-quality asset of the company, and the collaborative relationship with SAIC Group is becoming increasingly close, aiming to achieve profitability and sustainable development. To achieve long-term goals, the company is taking a series of measures, including reducing inventory, producing on demand, protecting the price system and reducing fixed costs. These measures have brought about continued growth in sales and market share. However, GM revealed in a securities filing that it expects to write down the value of its joint ventures in China by $2.9 billion and spend an additional $2.7 billion on closing plants and restructuring operations, which will have an impact on the company's net profit in the fourth quarter, but will not affect adjusted earnings. Despite the challenges, both GM and SAIC Group are optimistic about the joint venture's return to profitability.