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

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1 year ago

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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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San Diego, CA

Padres roster review: Luis Campusano

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3 hours ago

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January 8, 2026

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Padres roster review: Luis Campusano





Padres roster review: Luis Campusano – San Diego Union-Tribune


















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LUIS CAMPUSANO

  • Position(s): Catcher
  • Bats / Throws: Right / Right
  • 2026 opening day age: 27
  • Height / Weight: 5-foot-10 / 232 pounds
  • How acquired: Second round of the draft in 2017 (Cross Creek HS, Ga.)
  • Contract status: Will make $900,000 after agreeing to a one-year deal to avoid arbitration; Will not be a free agent until 2029.
  • fWAR in 2025: Minus-0.4
  • Key 2025 stats: .000 AVG, .222 OBP, .000 SLG, 0 HRs, 0 RBIs, 0 runs, 6 walks, 11 strikeouts, 0 steals (10 games, 27 plate appearances)

 

STAT TO NOTE

  • 1 — The number of plate appearances for Campusano while in the majors between June 1 and June 13 and the one at-bat resulted in a weak, pinch-hit groundout against a position player (Kike Hernandez) on the mound in mop-up duty. Campusano was recalled to the majors four times in 2025 but did not get a real opportunity get settled after he went 0-for-6 with four walks and a strikeout in three straight starts as a DH in early May. Of course, hitting .227/.281/.361 with eight homers over 299 plate appearances after getting the first real chance to start in 2024 likely informed how the Padres viewed his opportunity in 2025.

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San Diego, CA

2 San Diego Eateries Named Among ‘Most Beautiful New Restaurants’ In America

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15 hours ago

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January 7, 2026

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2 San Diego Eateries Named Among ‘Most Beautiful New Restaurants’ In America


SAN DIEGO, CA — Two San Diego County eateries were named among the most beautiful restaurants that opened last year in the country.

Carlsbad-based Lilo was ranked No. 4 and La Jolla-based Lucien was ranked No. 9 on Robb Report’s list of the most beautiful new restaurants in the U.S. for 2025.

Lilo, which opened in April, features a multi-course tasting menu served around a 24-seat chef’s counter.

The restaurant, co-owned by Chef Eric Bost and John Resnick, earned a Michelin star just months after opening its doors. The eatery was also the only one in San Diego to land on The New York Times list of the 50 best restaurants in America.

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Lucien, which opened in July, also offers a chef’s tasting menu, with more than a dozen courses. The 30-seat restaurant, is owned and helmed by Northern California native Chef Elijah Arizmendi, along with partners Brian Hung and Melissa Lang.

“I’m very grateful for the recognition from Robb Report,” Arizmendi told Patch. “Lucien is deeply personal to me, and the space was designed as an extension of my philosophy — one centered on intention, hospitality and the joy of sharing something meaningful to others.”

The list spotlights 21 restaurants in Chicago, Los Angeles, New York City and other cities across the country. View the full report here.



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San Diego, CA

Proposed fuel pipeline draws interest from investors. Can it give San Diego drivers a break?

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1 day ago

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January 7, 2026

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Proposed fuel pipeline draws interest from investors. Can it give San Diego drivers a break?


Plenty of financial and regulatory hurdles still need to be cleared, but a fuels pipeline project that may lead to lower gas prices in San Diego and Southern California has received a healthy amount of interest from other companies.

Phillips 66 and Kinder Morgan have proposed building what they’ve dubbed the Western Gateway Pipeline that would use a combination of existing infrastructure plus new construction to establish a corridor for refined products that would stretch 1,300 miles from St. Louis to California.

If completed, one leg of the pipeline would be the first to deliver motor fuels into California, a state often described as a fuel island that is disconnected from refining hubs in the U.S.

The two companies recently announced the project “has received significant interest” from shippers and investors from what’s called an “open season” that wrapped up on Dec. 19 — so much so that a second round will be held this month for remaining capacity.

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“That’s a strong indicator that people would be willing to commit to put volume on that pipeline to bring it west long enough for them to be able to pay off their investment and provide a return for their investors,” said David Hackett, president of Stillwater Associates, a transportation energy consulting company in Irvine. “They won’t build this thing on spec. They’ll need commitments from shippers to do this.”

The plans for the Western Gateway Pipeline include constructing a new line from the Texas Panhandle town of Borger to Phoenix. Meanwhile, the flow on an existing pipeline that currently runs from the San Bernardino County community of Colton to Arizona would be reversed, allowing more fuel to remain in California.

The entire pipeline system would link refinery supply from the Midwest to Phoenix and California, while also providing a connection into Las Vegas.

The proposed route for the Western Gateway Pipeline, a project announced by Phillips 66 and Kinder Morgan designed to bring refined products like gasoline to states such as Arizona and keep more supplies within California. (Phillips 66)

A spokesperson for Kinder Morgan told the Union-Tribune in October that there are no plans for the project to construct any new pipelines in California and the proposal “should put downward pressure” on prices at the pump.

“With no new builds in California and using pipelines currently in place, it’s an all-around win-win — good for the state and consumers,” Kinder Morgan’s director of corporate communications, Melissa D. Ruiz, said in an email.

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The second round of “open season” will include offerings of new destinations west of Colton that would allow Western Gateway shippers access to markets in Los Angeles.

Even with sufficient investor support, the project would still have to go through an extensive regulatory and permitting process that would undoubtedly receive pushback from environmental groups.

Should the pipeline get built, Hackett said it’s hard to predict what it would mean at the pump for Southern California drivers. But he said the project could ensure more fuel inventory remains inside California, thus reducing reliance on foreign imports, especially given potential political tensions in the South China Sea.



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