Fortune reposted this
On Jan. 28, General Motors reported an almost $3 billion loss for the final quarter of 2024, dragged down by a massive cost to restructure its flagging China business. For the latest Fortune issue, I tackle GM's struggles in the world's largest car market. The U.S. automaker has been in China for almost a century; the Chinese love for Buick kept the brand alive in 2008. As recently as 2020, GM sold more cars in China than the U.S. But the shift to EVs has hurt GM, as it has just about every other foreign automaker. Chinese consumers now buy cars from BYD, Geely, Tesla, and others. Western officials and CEOs blame Chinese subsidies--yet Chinese carmakers are also just much more competitive now, with new innovations that are winning over drivers. GM says it plans to keep competing in China. And it *may* have stemmed the bleeding: after quarters of losses, GM on Tuesday said its China venture made a slight profit--before taking the restructuring charges into effect. With insights from David Whiston, CFA, CPA, CFE; Christopher Beddor; Bill Russo; Philippe Houchois; Daniel Ives; and Eugene Hsiao. https://lnkd.in/gg6q7Pne
