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

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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.

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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.

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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.



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Opinion: Proposed federal rule would hammer beauty industry

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Opinion: Proposed federal rule would hammer beauty industry


Beauty and wellness are a staple of American culture. Thousands of citizens visit our spas and salons throughout the United States for critical, everyday grooming services they rely on. However, if the U.S. Department of Education has its way, Americans could soon have trouble finding qualified professionals to perform these traditional self-care rituals.

The department is proposing a new rule that would end access to many professional beauty programs — an important and growing trade. The department also is mistakenly labeling professional beauty programs as “low-value programs,” even though these programs offer students almost immediate employment opportunities providing professionals a flexible work-life balance.

Driven by high demand for skincare and hair services, there are currently more than 1.4 million professionals throughout the U.S. who work in the professional beauty industry. The professional beauty and wellness industry’s economic trajectory tells a story of continued and sustained growth. Growing at an annual rate of 7% from 2022 to 2024, according to McKinsey & Co., the United States ranks among the 10 fastest-growing wellness markets worldwide.

But even a robust and resilient industry like ours cannot overcome bad policy decisions that threaten an entire industry. Congress never included an accountability metric for certificate programs like cosmetology or massage therapy programs in the One Big Beautiful Bill Act. The One Big Beautiful Bill Act does contain an accountability metric called “Do No Harm,” which is designed to keep colleges and universities that offer degree programs or graduate-level certificates accountable to the American people.

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The accountability metric for degree programs, when applied to certificate programs, will eliminate opportunities for Americans to receive federal student aid, including Pell Grants, to unlock a career in cosmetology or massage therapy. The Department of Education has acknowledged using the Do No Harm provision as an accountability metric will have a severe negative impact on the cosmetology and massage schools nationwide, and determined that 92% of accredited cosmetology and massage therapy schools eventually will lose access to all federal student aid, including Pell Grants, for their students and most likely will be forced to close in the near future.

The one saving grace is that the department has not finalized its proposed rule, and it is not too late for the public to tell the department that this rule does not fit the bill for professional beauty students and schools. Comments must be received on or by May 20. You can submit your comments on the Accountability in Higher Education and Access through Demand-driven Workforce Pell (AHEAD) rule through the Federal eRulemaking Portal at regulations.gov/commenton/ED-2026-OPE-0100-0001The department will not accept comments submitted by fax or by email or comments submitted after the comment period closes.

Any new rule adopted by the agency needs to account for the overall demographic and work-life balance goals of students and the professional beauty industry. These students and future small business owners deserve the same opportunities as students pursuing careers in other disciplines and fields.

Lynch is the owner and chief executive officer of the Poway-based Bellus Academy and the founding chair of the nonprofit Beauty Changes Lives, which awards nearly $500,000 in scholarships annually.

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San Diego health officials monitor hantavirus situation as cruise ship passengers return to U.S.

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San Diego health officials monitor hantavirus situation as cruise ship passengers return to U.S.


SAN DIEGO (KGTV) — American passengers from a cruise ship hit with a hantavirus outbreak are back in the United States.

San Diego County health officials say they are monitoring the situation and there is no need for panic.

“The risk to Californians is really low and especially here in San Diego. Since the year 2000, we’ve only had 4 cases of hantavirus and the majority of those were in travel related cases so not even acquired here locally,” Ankita Kadakia, deputy public health officer for the County of San Diego, said.

According to the CDC, hantavirus is spread through contact with infected rodents.

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“The virus can be in their saliva, feces or droppings,” Kadakia said.

San Diego County does see cases of rodents infected with hantavirus, but the strain seen locally is not the same strain connected to the cruise ship outbreak.

“The vast majority of strains of hantavirus are mouse or animal to human transmission. Not human to human transmission. So the Andes strain, which is found in Argentina, there is evidence that there is human to human transmission,” Dr. Ahmed Salem, a pulmonologist at Sharp Memorial Hospital, said.

Salem treated hantavirus during the 2012 Yosemite National Park outbreak.

“One of the ways you die from hantavirus is you get a collapse of your cardiac system and your pulmonary system and you have to go on something called ECMO. It’s one of the most aggressive forms of life support that you can do. So I do remember that case, and unfortunately, that person passed away,” Salem said.

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There is currently no cure or vaccine for hantavirus. Health officials stress that for those who were not on the cruise ship, the risk of contracting the virus remains low.

This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.





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Machado's walk-off lifts Padres to 10-inning comeback victory over Cards

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Machado's walk-off lifts Padres to 10-inning comeback victory over Cards


SAN DIEGO — The Padres earned a split against the Cardinals in dramatic fashion on Sunday afternoon. Nick Castellanos hit a game-tying two-run homer in the bottom of the ninth, and Manny Machado’s sacrifice fly won it in the 10th.
Here’s some instant reaction from the Padres’ wild 3-2 victory



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