General Motors Co. is encountering significant difficulties in the Chinese market, with CEO Mary Barra characterizing it as a challenging situation.
The automaker has announced that it will face charges and asset writedowns exceeding $5 billion due to its joint venture with Shanghai's SAIC Motor Corp. This financial impact coincides with GM's reassessment of its strategy in China, a market that has become increasingly competitive and unprofitable.
In response to ongoing losses, GM intends to restructure its operations in China, including the closure of several factories. The company's challenges highlight the broader struggles faced by foreign automakers in navigating China's crowded automotive landscape.