China: can GM make it work again?

China was once GM’s biggest and most important market but is now arguably its biggest problem. Back in 2017, GM sold more than 4 million vehicles in China. Sales have fallen since then to 3.65 million in 2018, 3.09 million in 2019 and then steadily each year, reaching just 1.8 million in 2024.

The market once delivered GM US$2bn of income a year. However, times have changed and in December 2024 the automaker told shareholders that it would have to record more than US$5bn in impairment charges on its Chinese JV with SAIC, due to restructuring costs (US$2.6-$2.9bn), and a downward revaluation (US$2.7bn). GM recorded a loss of US$350m in the first three quarters of 2024, and thousands of jobs were due to be cut; these were in response to a nearly 60% fall unit sales in the first 11 months of last year to just under 371,000 units. BYD sold ten times this volume over the same period.