General Motors Co. is expected to incur charges and writedowns totaling more than $5 billion as it undertakes a restructuring of its struggling operations in China, which is the largest automotive market in the world.
The automaker has revealed in a recent securities filing that it foresees a write-down of up to $2.9 billion associated with its joint-venture operations in the region. This announcement has already had an impact on GM's stock, with a 3% decline in premarket trading following the news.
The company's efforts to revive its previously profitable business in China highlight the ongoing difficulties faced by foreign automakers in the fiercely competitive Chinese market.