General Motors (NYSE: GM) is struggling with its operations in China, which have turned from a profit driver into a financial liability over the past decade. GM’s sales in China peaked in 2017 at over 4 million vehicles but have since declined, with Q2 2025 sales dropping 20% year-over-year to 357,000 vehicles. The company has incurred more than $5 billion in noncash charges and writedowns due to restructuring efforts.
The SAIC-GM joint venture contract is set to expire in 2027, presenting a potential turning point for GM. Additionally, the overall market is declining, as China’s new car sales have fallen for nine consecutive months, with a 20% year-to-date decrease to 8.75 million vehicles due to new tax policies on electric vehicles. GM aims to revive its sales with a three-year electrification strategy focused on premium electric vehicles and local software development.
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