General Motors (GM) is set to close its plant in the northeastern of Shenyang, China as part of wider restructuring efforts in the Asian country, reported Reuters citing a company source.
The Shenyang facility, which manufactures Buick GL8 minivans and the Chevrolet Tracker SUV, is expected to cease operations this month.
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The decision comes as GM faces intense competition from domestic manufacturers in China, who have gained market dominance with the support of government subsidies.
At an automotive conference in New York, US, GM CEO Mary Barra was cited by the news agency as saying that GM will focus on “Cadillac, Buick, and its premium import business” in China.
GM has partnership with SAIC Motors to manufacture Buick, Chevrolet, and Cadillac vehicles in China.
In the Q4 2024, GM reported restructuring charges in China, amounting to $4bn, which included costs associated with plant closures.
The company posted a loss of $2.96bn in Q4 2024, a stark contrast to the $2.1bn profit reported in the same period the previous year.
The automotive giant has been hit by over $5bn in special charges, primarily due to non-cash restructuring charges and impairment of interests in certain Chinese joint ventures.
Additionally, charges related to the discontinuation of funding for the Cruise robotaxi business have also impacted GM’s net income.
Recently , GM completed the acquisition of Cruise, an autonomous vehicle company, to pivot towards developing autonomous technology for personal vehicles instead of robotaxis.
The US automaker plans to integrate Cruise’s technology into its Super Cruise system, which enables hands-free driving across 750,000 miles of roads in North America and is available in over 20 GM vehicle models.
