San Diego, CA
GM expects more than $5 billion impact from China restructuring, including plant closures
- General Motors expects a restructuring of its joint venture operations with SAIC Motor Corp. in China to cost more than $5 billion in charges and writedowns.
- The restructuring charges for the “SGM” joint venture are anticipated to include “plant closures and portfolio optimization,” according to the filing.
- GM said most of the costs are expected to be recognized as non-cash, special item charges during the fourth quarter.
DETROIT – General Motors expects a restructuring of its joint venture operations with SAIC Motor Corp. in China to cost more than $5 billion in non-cash charges and writedowns, the Detroit automaker disclosed in a federal filing Wednesday morning.
GM said it expects to write down the value of its joint-venture operations in China by between $2.6 billion and $2.9 billion. It also anticipates another $2.7 billion in charges to restructure the business, including “plant closures and portfolio optimization,” according to the filing.
GM, which previously announced plans to restructure the operations in China, did not disclose any additional details about the expected closures.
“As we have consistently said, we are focused on capital efficiency and cost discipline and have been working with SGM to turn around the business in China in order to be sustainable and profitable in the market. We are close to finalizing our restructuring plan with our partner, and we expect our results in China in 2025 to show year-over-year improvement,” GM said in an emailed statement.
GM said it believes the joint venture “has the ability to restructure without new cash investments” from the American automaker.
A majority of the restructuring costs is expected to be recognized as non-cash, special item charges during the fourth quarter. That means they will impact the automaker’s net income, but not its adjusted earnings before interest and taxes – a key metric monitored by Wall Street.
GM’s operations in China have shifted from a profit engine to liability in the past decade as competition grows from government-backed domestic automakers fueled by nationalism, and as a generational shift in consumer perceptions of the automotive industry and electric vehicles takes hold.
Equity income from GM’s Chinese operations and joint ventures peaked at more than $2 billion in 2014 and 2015.
GM’s market share in China, including its joint ventures, has plummeted from roughly 15% as recently as 2015 to 8.6% last year — the first time it has dropped below 9% since 2003. GM’s equity income from the operations have also fallen, down 78.5% since peaking in 2014, according to regulatory filings.
GM’s U.S.-based brands such as Buick and Chevrolet have seen sales drop more than its joint venture sales with SAIC Motor, Wuling Motors and others. The joint venture models accounted for about 60% of its 2.1 million vehicles sold last year in China.
Prior to this year, the only quarterly losses for GM in China since 2009 were a $167 million shortfall during the first quarter of 2020 due to the coronavirus pandemic and an $87 million loss during the second quarter of 2022.
The Detroit automaker has reported three consecutive quarterly losses in equity income for its Chinese operations this year, totaling $347 million. That includes a loss of $137 million during the third quarter.
San Diego, CA
Man fatally struck by hit-and-run vehicle in San Diego
A man in the Mission Bay Park community of San Diego was fatally struck Sunday morning by a hit-and run vehicle, authorities said.
The victim was also struck by a second vehicle and that motorist stayed at the scene to cooperate with officers, the San Diego Police Department reported.
The initial crash occurred at about 2:20 a.m. Sunday in the area of West Mission Bay and Sea World drives.
The pedestrian was in the southbound lanes of the 2000 block of West Mission Bay Drive when he was struck by a silver vehicle also in the southbound lanes. That vehicle fled the scene, continuing southbound, police said.
A 28-year-old man driving his vehicle southbound ran over the downed pedestrian.
“That driver remained at the scene and is not DUI,” according to a police statement. “The pedestrian was pronounced deceased at the scene.”
Anyone with information regarding the initial crash was urged to call Crime Stoppers at 888-580-8477.
San Diego, CA
Here are the 9 San Diego County communities that set or tied heat records
San Diego County is known for having wet, cold weather in February. But it had numerous hot spells this year. And when the month ended on Saturday a high pressure system produced heat that broke or tied temperature records in nine communities from the desert to the sea, the National Weather Service said.
The most notable temperature occurred in Borrego Springs, which reached 99, five degrees higher than the previous record for Feb. 28, set in 1986. The 99 reading is also the highest temperature ever recorded in Borrego in February.
Escondido reached 95, tying a record set in 1901.
El Cajon reached 92, three degrees higher than the record set in 2009.
Ramona topped out at 88, five degrees higher than the record set in 2009.
Alpine hit 88, four degrees higher the record set in 1986.
Campo reached 87, four degrees higher than the record set in 1999.
Vista hit 86, four degrees higher than the record set in 2020.
Chula Vista reached 84, one degree higher than the record set in 2020.
Lake Cuyamaca rose to 76, four degrees higher than the record set in 1986.
Forecasters say the weather is not likely to broadly produce new highs on Sunday. Cooler air is moving to the coast, and on Monday, San Diego’s high will only reach 67, a degree above normal.
San Diego, CA
Francis Parker captures Open Division girls basketball title
OCEANSIDE — The Frontwave Arena scoreboard showed 23 seconds remaining in the fourth quarter. Up 16, Francis Parker’s win over Westview High School for the CIF San Diego Section Open Division girls basketball championship was secure.
“No, no, no!” Parker head coach Courtney Clements screamed to freshman guard Jordan Brown, telling her there was no need to score.
So Brown walked the ball up the floor, from the backcourt, across midcourt, a 1,000-watt smile etched across her face.
With no Wolverines defending her, Brown dribbled from side to side across the logo. Then, a fraction of a moment before the final buzzer sounded, Brown flung the basketball high toward the rafters, then was engulfed by teammates.
The job was complete. Parker’s first Open Division title in program history was secure, the final reading 66-50 on Saturday night.
Of those final seconds, said Brown, who scored 23 points. “It was a surreal moment, knowing we worked for this all year long. It’s amazing.”
One reason it was amazing was because the top-seeded Lancers (21-7) were a decided favorite, but were stressed by the sixth-seeded Wolverines (20-9). Led by UC Santa Barbara-bound senior guard Sarah Heyn (18 points in the first half), Westview led 35-28 early in the third quarter.
“I just knew I had to do whatever it took to win,” said Brown. “Whether that was defense or offense. I just wanted to win, period.”
Sparked by its defense, Parker closed the quarter on a 14-0 run. Westview’s final 11 possessions of the quarter ended with five missed shots and six turnovers.
Still, the game wasn’t over. Heyn cut the deficit to 48-44 with just over six minutes to play on a bucket. But with 5:47 to play, Heyn was whistled for her fifth foul on a reach-in.
“Knowing their best player fouled out, we sealed the win,” said Brown.
As for Heyn, who finished with 23 points, she sat on the bench and pulled her jersey over her eyes, hiding tears.
Clements’ thoughts when Heyn fouled out? “I hope we can put this game away now.”
That the Lancers did, outscoring Westview 18-6 down the stretch.
The Lancers’ players and coach were effusive in their praise for Heyn, a four-year starter.
“She’s a great player,” said Brown.
“She played phenomenally,” said Clements. “She played the way you would think a senior would play in a championship game. She played desperately. She played every possession like it was the last 20 seconds of the game. She was extremely impressive. (Heyn buried five 3s, missing only once from deep.) She should be proud of herself.”
Clements was proud of her team for another reason. After blowing out two-time reigning Open Division champion Mission Hills by 26 in the semis, some thought Parker might cruise in the title game.
“I figured it was going to be a fight, and it was,” said Clements. “It was good that our girls had to come together, had to stick together. That’s what this is all about, developing character via the sport of basketball. When the kids face adversity, they have to make a decision. Who do they want to be? They showed the best version of themselves. That’s what I want to remember from a game like this.”
Francis Parker’s primary color is brown, which is fitting for the girls basketball team. They are led not only by the freshman Jordan Brown, but also junior Brieana Brown, a strong, aggressive and athletic 5-foot-11 wing.
Brieana Brown scored 25 points and yanked down a team-best eight rebounds.
About the team in brown being led by the Browns (who are not related), Jordan Brown said: “It’s super cool. I love Bri and our story. So many people think we’re related, that we’re siblings. In reality, we’re not, but we play like it.”
Francis Parker and Westview both will advance to the Southern California Regionals.
Earlier in the season, Clements — who was dressed in all black for the championship game — confessed she wasn’t crazy about Parker’s primary color. Her mood shifted Saturday night.
“Brown’s doing well for me now,” she said.
Asked if Lancers’ Brown squared tandem represents the best one-two girls basketball punch in the San Diego Section, Clements gave the questioner a “What do you think?” smirk.
“That,” said the coach of the Open Division champions, “is a no-brainer.”
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