General Motors is melting down in China: It expects a $5 billion revenue loss
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SAIC-GM, GM’s China joint venture, will see revenues in the fourth quarter of 2024 $2.6 billion to $2.9 billion He announced that he expected a decrease between The automaker also $2.7 billion A restructuring expense is pending. Among GM’s measures factory closures and portfolio optimizations. However, it was not announced which facilities would be closed.
This year’s loss is 350 million dollars
GM’s loss this year after three consecutive quarters of losses in China $350 million at the level. The company’s sales in the first nine months of 2024 are expected to be approximately It fell by 20%. The market share of the US manufacturer in China has decreased by almost half in the last 10 years. It decreased from 15% to 8.6%.
GM said it does not expect its operations in China to recover in the short term. The company said in its statement: “We focus on capital efficiency and cost discipline. Together with our joint venture in China, we are working to make our business sustainable and profitable. “We predict that the results of 2025 will show an improvement on an annual basis.”
The Chinese are taking the market by storm
Like most traditional automakers, GM is struggling to compete with low-cost electric vehicle makers like BYD in China. BYD in November It broke a record by selling 506,804 vehicles and in the first 11 months of the year Out of 3.7 million reached more electric and rechargeable hybrid vehicle sales figures.
BYD last year Volkswagenleaving behind It became China’s best-selling automobile brand, ending the German manufacturer’s 40-year dominance. BYD, which is trying to expand abroad, will increase its global automobile sales by the end of the year. 6th largest automaker, surpassing Ford is on its way to becoming.
Meanwhile, in the USA, GM increased its growth in the third quarter compared to the previous year. It broke a record by selling 32,095 electric vehicles, an increase of 60%. Leaving Ford and Hyundai behind, GM is in North America Manufacturer that sells the most electric vehicles after Tesla happened.
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