General Motors expects a restructuring of its joint venture operations with SAIC Motor Corp. in China to cost more than $5 billion in non-cash charges and writedowns, the Detroit automaker disclosed in a federal filing Wednesday morning.
GM said it expects to write down the value of its joint-venture operations in China by between $2.6 billion and $2.9 billion.
GM, which previously announced plans to restructure the operations in China, did not disclose any additional details about the expected closures.
GM said it believes the joint venture “has the ability to restructure without new cash investments” from the American automaker.
The joint venture models accounted for about 60% of its 2.1 million vehicles sold last year in China.
Persons:
SGM, “, Qilai Shen
Organizations:
Motors, SAIC Motor Corp, Detroit, GM, Wall, SAIC, Wuling, Bloomberg, Getty, GM’s, Buick, Chevrolet, Wuling Motors
Locations:
China, GM’s U.S