General Motors said its operations in China are still valuable, adding its joint venture with SAIC Motor (SHA:600104) remains tight, The Paper reported Thursday, citing the car manufacturer.
The development comes despite the US car manufacturer saying it is reducing its inventory, producing according to demand, protecting its pricing scheme and lowering its fixed expenditures to attain its long-term development goals in China, the report said.
GM has been planning to write down its assets and spend more than $5 billion on restructuring in the fourth quarter "to address market challenges and competitive conditions," according to a Thursday disclosure to the US Securities and Exchange Commission.
The US carmaker said it determined a material loss in its Chinese JVs is "other than temporary," with the losses ranging between $2.6 billion and $2.9 billion, the filing said.
GM will also recognize additional equity losses of about $2.7 billion from the planned restructuring, the filing said.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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