GM Sees More than $5B in Charges, Writedowns From China JV

Dow Jones12-04

By Denny Jacob

General Motors said it expects to incur more than $5 billion in impairment charges and writedowns in the fourth quarter related to its joint venture with China's SAIC Motor.

The automaker Wednesday said its audit committee concluded a material impairment of its interest in SAIC General Motors Corp. was required after finding a material loss in value of its investments in joint ventures in China wasn't temporary, according to a securities filing.

It came to the conclusion based on a new business forecast and certain restructuring actions that SAIC General Motors is finalizing that are expected to address market conditions and competition.

GM said that in addition to an impairment charge up to $2.9 billion, it also expects additional equity losses of about $2.7 billion stemming from SAIC General Motors implementing its restructuring plan. This includes include charges related to plant closures and portfolio optimization.

GM said the charges are expected to be non-cash and treated as special for EBIT-adjusted purposes.

Shares of GM fell 1.2% to $53.01 in premarket trading Wednesday.

Write to Denny Jacob at denny.jacob@wsj.com

(END) Dow Jones Newswires

December 04, 2024 07:12 ET (12:12 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.

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