Facing heavy competition in China that has forced automakers to cut retail prices, the SAIC General Motors Corporation is restructuring operations, resulting in non-cash impairment of between $2.6 and $2.9 billion and equity losses of around $2.7 billion, GM said in a securities filing.
GM and the Chinese state-owned company Shanghai Automotive Industry Corporation (SAIC) each own 50 percent of the company.
In October, GM reported a loss in equity income from China for the third straight quarter.
Chief Executive Mary Barra, who has divested several other GM overseas operations, emphasized at the time that the company saw a future for itself in the world's biggest automotive market.
"We believe we can turn around the losses," Barra said on an analyst conference call.
China has a "very challenging environment," she said. "But we do believe there's a place we can participate in a very different manner and do that profitably."
Foreign companies from the United States, Germany and other countries have been operating in China since the 1980s, with Beijing requiring them to partner with Chinese companies, which had lagged behind in the global auto sector.
But in recent years, Chinese car companies have progressed significantly, embracing artificial intelligence and other gadgetry and leapfrogging foreign players with efficient electric vehicle offerings that are priced aggressively.
Chinese company BYD has been symbolic of the rise, recently surpassing Tesla in quarterly revenue for the first time.
Wednesday's moves reflect a determination that the loss in value across the China venture is "other than temporary" in light of the actions "to address market challenges and competitive conditions," GM said in the filing.
The actions, which include plant closures, will mostly be recorded in the fourth quarter of 2024, GM said.
GM shares rose 0.2 percent in early trading.
Pharma giant AstraZeneca names replacement for detained China boss
London (AFP) Dec 4, 2024 -
British pharmaceutical giant AstraZeneca on Wednesday named Iskra Reic as its new international executive vice president, replacing Leon Wang, who has been detained by Chinese authorities.
Reic will oversee multiple regions, including Asia, the Middle East and Africa, and take over responsibility for the group's Chinese entity from Wang, a move towards greater stability in its China unit.
Chinese officials are investigating a number of current and former AstraZeneca employees over potential illegal data collection drug imports, the company said last month.
Wang, who headed AstraZeneca China, is on extended leave from the company while the investigation in China continues, the company said in Wednesday's statement.
It added that it had no new information about Wang, except that he remains under detention.
Reic is a veteran AstraZeneca employee who launched its vaccines and immune therapies unit, which included overseeing the development of Covid-19 vaccines.
In November, the company said it took China's investigations "very seriously" and assured that it "has not received any notification that it is itself under investigation".
According to a source close to the case, the detention notably concerns the import by certain customers of cancer therapies not approved by the Chinese health authorities.
Shares in AstraZeneca were down around three percent in late afternoon trades on London's top-tier FTSE 100 index, which was trading 0.3 percent lower overall.
Its shares fell sharply when reports of Wang's detention emerged in early November, wiping billions of dollars off its valuation.
Global firms have faced an increasingly difficult business environment in China in recent years, industry groups say, citing a lack of transparency on data laws and prolonged detentions of employees in the country.
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