Connect with us

San Diego, CA

GM expects more than $5 billion impact from China restructuring, including plant closures

Published

on

GM expects more than  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.

Advertisement

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.

Advertisement

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.



Source link

Advertisement

San Diego, CA

Person struck, killed by train in Encinitas

Published

on

Person struck, killed by train in Encinitas


A person was fatally struck by a train in the Cardiff neighborhood of Encinitas early Wednesday afternoon, a sheriff’s official said.

The collision was reported just after 1 p.m. in the area of Chesterfield Drive at San Elijo Avenue, Lt. Joe Berry said.

The Sheriff’s Office’s Railroad Enforcement Unit is investigating the incident.

Chesterfield was briefly closed between San Elijo and Coast Highway 101 as first responders worked, but the road has since reopened.

Advertisement

In a post on social media platform X, the North County Transit District warned people to expect significant delays for Coaster service. Tracks were closed between Solana Beach and Encinitas stations, it said, and a Breeze bus bridge would be available for passengers between those stations.



Source link

Continue Reading

San Diego, CA

Joseph Allen Oviatt – San Diego Union-Tribune

Published

on

Joseph Allen Oviatt – San Diego Union-Tribune


Copyright 2026 San Diego Union-Tribune. All rights reserved. The use of any content on this website for the purpose of training artificial intelligence systems, algorithms, machine learning models, text and data mining, or similar use is strictly prohibited without explicit written consent.



Source link

Continue Reading

San Diego, CA

Balboa Park museums see attendance decline of 34% in first quarter

Published

on

Balboa Park museums see attendance decline of 34% in first quarter


SAN DIEGO (CNS) — Attendance at Balboa Park’s museums are down 34% on average since paid parking went into effect inside San Diego’s urban park, according to data released Tuesday by the Balboa Park Cultural Partnership.

In the analysis released Tuesday, the partnership found that between January and March of this year, attendance is down by that average of 34% compared to the previous year, with some institutions dropping by 60% over the same period.

“We’ve appreciated the city’s recent willingness to listen and take initial steps in response to community concerns,” Balboa Park Cultural Partnership Executive Director Peter Comiskey said. “However, the latest data make clear that those changes are not reversing the decline in visitation, and the impacts on our institutions are becoming more serious. We are urging additional action by our regional leaders before potentially irreversible damages take hold, and jobs and beloved programs or even organizations are lost.”

The report comes out as Mayor Todd Gloria’s draft budget for fiscal year 2027 proposes slashing arts funding by more than $11 million as a way to grapple with a structural deficit of more than $118 million.

Advertisement

Some of the park’s larger institutions predict more than $10 million lost in revenue from the lowered attendance alone, and jobs and program losses are a real threat, Comiskey said.

Visitors to Balboa Park were asked to pay to park their vehicles in city lots starting in January, breaking a tradition of more than 100 years of the city’s crown jewel being free for those in private vehicles.

San Diego residents are now able to purchase a monthly, quarterly or annual parking pass at a discounted rate by visiting sandiego.thepermitportal.com/. Residents can pay $30 for a monthly parking pass, $60 for a quarterly pass or $150 for an annual one. Non-residents can pay $40, $120 or $300 for the same levels.

The fiscal year 2026 budget passed last summer anticipated $15.5 million in parking revenue from Balboa Park. That number assumed $12.5 million in fee parking in Balboa Park and at least $3 million from zoo parking.

A revised figure presented to the City Council in November instead found the non-zoo parking might bring in just $2.9 million, or a decrease of $9.6 million from initial estimates.

Advertisement

The city originally planned to begin charging for parking in October, but delays prevented that and three months of revenue from happening. Expected parking rates have dropped as well.

The parking passes come under three pricing tiers, Levels 1, 2, and 3, based on demand and proximity:

— Level 1 lots, located in the core of the Central Mesa area, would be subject to the highest rate — $16 per day and $10 for up to four hours for nonresidents and $8 per day and $5 for up to four hours for city residents. These include Space Theater, Casa de Balboa, Alcazar, Organ Pavilion, Bea Evenson, Palisades and South Carousel;

— Level 2 lots would be priced at $10 per day for nonresidents and $5 per day for residents. These include Pepper Grove, Federal, Upper Inspiration Point and Marston Point;

— Level 3 lots would also be priced at $10 per day with the first three hours free, with a resident rate of $5 per day with the first three hours free. This includes the lower Inspiration Point lot.

Advertisement

The Office of the Independent Budget Analyst estimated revenues in this fiscal year from the non-zoo parking would be close to $4 million, still well short of plans.

The zoo, which operates on an independent lease from the city, will allow members to continue to park for free. For non-members and non-residents, general parking is $16 per vehicle, per day, $44 daily for oversized vehicles per day. City of San Diego resident rates are half that.

Revenues from the parking fees paid within the park must be spent on Balboa Park. The funds can support ongoing maintenance, infrastructure, and visitor amenities and may include road repaving, lighting upgrades, sign improvements and landscaping.

Gloria backed off some of the parking fees in February, citing overwhelming negative feedback.

City residents who have verified their address will again be able to park for free in the Pepper Grove, Federal, Upper Inspiration Point, Lower Inspiration Point, Marston Point, Palisades and Bea Evenson lots.

Advertisement

“Good governing also means listening. I’ve heard from residents and from members of the City Council about how this program is affecting San Diegans who love Balboa Park as much as I do,” Gloria said.

“That feedback matters, and it’s why I am eliminating parking fees for city residents in select lots in the park. This change will reduce revenue, and I have received a commitment from the City Council president as well as other council members to identify other service-level reductions in order to keep the budget balanced.”

Verified San Diego residents will still be charged to park in premium lots such as the Space Theater, Casa de Balboa, Alcazar, Organ Pavilion and South Carousel lots. The cost is $5 for up to four hours or $8 for a full day. Enforcement will now end at 6 p.m., instead of 8 p.m.

More than 3,000 San Diegans have registered to be verified for the resident free parking program, and the city has collected nearly $700,000 for operations and maintenance in Balboa Park.

Despite these changes, Comiskey and the cultural partnership said more must be done before summer, busy season for the park and the museums and cultural institutions within.

Advertisement

“The data show we are at a critical moment,” Comiskey said. “As we approach the summer tourism season, we need a clear, region-wide recovery solution that restores accessibility, rebuilds public trust, and sends a strong `welcome back’ message to residents and visitors alike.”

Copyright 2026, City News Service, Inc.





Source link

Continue Reading
Advertisement

Trending