General Motors told shareholders in a government filing on December 3 that it would write down the value of its business in China by more than $5 billion. 

According to The Guardian, the automaking giant expects to incur restructuring costs of $2.6 billion to $2.9 billion and to reduce the value of the joint-venture value by $2.7 billion. GM lost about $350 million in the region in the first three quarters of 2024.In the filing the company said its board of directors had determined that the non-cash charges were necessary “in light of the finalization of a new business forecast and certain restructuring actions” with the joint venture, according to a company filing.

GM has a 50-50 joint venture in China with SAIC Motor Corp. — Shanghai General Motors — which makes and sells Chevrolet, Buick, and Cadillac vehicles in the Chinese market. The automaker got into the Chinese market in the late 1990 and by 2010 it was selling more vehicles in China than in the U.S., peaking in 2018 with annual sales of 2 million cars.

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But sales of foreign vehicles have been hit by the rise of local automakers. Sales at SAIC-GM slumped 59% in the first 11 months of 2024 to 370,989 units, while local new energy vehicle champion BYD sold more than 10 times of the cars in the same period.