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
Escondido officials need to enforce rules on illegal fireworks
Dec. 30 marked the one-year anniversary of our Facebook community group, Escondido Fights Illegal Fireworks: Coco’s Crusade. While awareness has increased, illegal fireworks continue unchecked. On Christmas Eve, our neighborhood was again bombarded. Our dog was shaking uncontrollably and had to be sedated — no family should have to medicate a pet to survive a holiday. This is not a minor inconvenience. Across the city, parents struggled to get children to sleep, residents with PTSD experienced severe distress and workers were left exhausted. These are deliberate, illegal acts that disrupt entire neighborhoods.
Other cities have taken decisive action by using drones and deploying officers on key nights. While Escondido’s mayor and council say they are listening, current measures lack urgency and enforcement. Families are fleeing town or sitting in cars for hours simply to find peace. Illegal fireworks violate noise ordinances and can constitute animal cruelty. Strong, immediate enforcement is required.
— Heather Middleton, Escondido
San Diego, CA
As shelter requests fail, San Diego leaders weigh changing who gets a bed
For years, asking for shelter in the city of San Diego has often been a first-come, first-serve process.
Everyone deserves a safe place to sleep, the thinking goes, so anyone living outside should have a shot.
But as the region’s overwhelmed shelter system continues to reject staggering numbers of requests, some leaders are considering overhauling that approach by creating a priority list based on vulnerability.
“Do we need to look at how we prioritize differently?” Lisa Jones, president and CEO of the San Diego Housing Commission, asked during a board meeting in December. “Maybe we have to look at our most vulnerable that are on our streets and think about it from that perspective.”
Local city-funded shelters have long been at or near capacity, with the pressure becoming particularly intense in recent months.
In November, San Diego received 2,442 requests for a bed, according to Casey Snell, a senior vice president at the housing commission. Only 199 of those led to someone getting a spot. That’s a success rate of around 8%.
The main reasons most requests failed were familiar ones: There just weren’t spots available.
The bigger picture is not much better. Since July, people have asked for shelter 12,275 times. A little more than 1,200 succeeded, meaning about 9 out of every 10 requests failed. “What happens with credibility and effectiveness when people repeatedly get a negative answer?” Housing Commissioner Ryan Clumpner asked during the same meeting. “Do they keep requesting, or do people, the more times they hear ‘no,’ begin becoming more resistant?”
Some residents are certainly asking more than once. November’s 2,442 beds requests were collectively made by 868 separate households, officials said. That’s an average of about 3 asks per individual.
‘It makes sense to me’
The idea of trying to rank those requests appears to have at least some supporters within both the service world and the homeless population.
Bob McElroy, CEO of the nonprofit Alpha Project, said in an interview that using vulnerability lists would be a return to how shelters operated decades ago. “I’ve been irritated all these years when they turned away from it,” he noted. Disabled residents, older adults, those who’ve been outside the longest — McElroy believes it’s only fair to give them first dibs.
That’s roughly the process already in place at Father Joe’s Villages, at least when it comes to beds relying on private, not government, funding. The stricter criteria applies to hundreds of spots in the nonprofit’s family, sober-living and recuperative care programs.
“We look at, for instance, is a person pregnant?” said Deacon Jim Vargas, Father Joe’s president and CEO. “If they have very small children, or if they’ve given birth recently, they’re considered more vulnerable.”
Gustavo Prado, a 52-year-old who’s been homeless for the last two years, agreed with the general concept. “It makes sense to me,” he said while standing on a downtown San Diego sidewalk.
Prado added that he’d been unable to get into a local shelter program. Speaking a few days before Christmas, he was trying to plan for the coming rain. “I gotta get a tarp or something.”
Shelters do sometimes focus on specific populations. There’s a program downtown, for example, for women and children, and another for young adults. But guidelines known as the Continuum of Care Community Standards, which help dictate who’s allowed in, don’t have prioritization criteria.
In response to a request for comment about changing the status quo, city spokesperson Matt Hoffman wrote in an email that “staff are always open to evaluating new tools to better serve those in need.”
Leaders will likely discuss the possibility of creating a priority list at another public meeting before a specific proposal is drawn up.
More requests
One factor potentially driving the surge in demand is San Diego’s decision to expand encampment sweeps.
In July, the city signed an agreement with the California Department of Transportation, or Caltrans, to get access to land that would normally be under state jurisdiction. Since then, many areas near freeways have been cleared of tents and dozens of individuals did receive some form of shelter. A few even made it into a permanent housing.
Yet they appear to be in the minority.
Housing commission officials have so far declined to blame the Caltrans agreement for the increase in requests, saying mainly that they’ll continue studying this trend. They did, however, note a few other factors at play.
For one, the city may be getting better at fielding requests for shelter. On the same day local crews got access to Caltrans property, San Diego opened a homelessness resource center in the downtown library. That office, known as The Hub, coordinates with the help line 211 to make it easier for people to ask for aid. “It’s actually streamlining our referral process, which is another reason you see a big jump,” added Snell, the vice president.
In addition, the San Diego County District Attorney’s Office continues to roll out a phone app that lets outreach workers look for shelter beds in the same way a tourist might search for hotel rooms. While it used to take hours to determine whether facilities had any openings, officials have said this program can flag vacancies within minutes.
San Diego, CA
11 from Point Loma High get All-CIF sports honors
Eleven members of Point Loma High School sports are among the All-CIF honorees announced recently in the San Diego Section, including a Coach of the Year.
Here are the Pointers selected:
Football
First team
Romeo Carter, wide receiver, senior
Mateo Correa, linebacker, senior
Second team
Brandon Bartocci, defensive line, senior
Owen Ice, defensive back, senior
Teams are based on a vote of media members and the Coaches Advisory Committee.
Girls cross country
Coach of the Year
Keith DeLong
DeLong guided Point Loma’s girls team to its best finish in school history this past season, placing second at the CIF Division III State Championships after winning the San Diego Section Division III title.
First team
Isabella Ramos, senior
Second team
Kelly McIntire, junior
Nicole Witt, senior
Sara Geiszler, senior
Teams are based on finishes at the San Diego Section championships.
Boys cross country
Second team
Ethan Levine, senior
Teams are based on finishes at the San Diego Section championships.
Girls tennis
First team
Noel Allen, senior
Teams are chosen based on finishes in the San Diego Section individual championships.
— The San Diego Union-Tribune contributed to this report.
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