General Motors Faces $5 Billion Charge Amidst Chinese Market Challenges

General Motors is set to take a significant financial hit due to the poor performance of its Chinese joint ventures. The auto giant plans to write down assets and take a restructuring charge exceeding $5 billion in the fourth quarter, highlighting challenges in the Chinese automotive market.

General Motors (GM) is bracing for a hefty financial setback as the performance of its Chinese joint ventures takes a downturn. The Detroit automaker announced it will write down its assets and incur restructuring charges surpassing $5 billion in the upcoming fourth quarter.

In a recent regulatory filing, GM disclosed plans to reduce the value of its equity stake in ventures, including its renowned partnership with SAIC General Motors Corp., by $2.6 billion to $2.9 billion. Additionally, it targets $2.7 billion in restructuring expenses, mainly in the fourth quarter.

This financial maneuver, comprising noncash charges, is expected to impact GM's net income but not its adjusted pretax earnings. Despite these setbacks, the company anticipates a net profit ranging from $10.4 billion to $11.1 billion this year.

(With inputs from agencies.)