General Motors has reportedly started trimming its workforce in China. The auto manufacturing company is said to be looking at a major restructuring of operations in the country, as reported by Bloomberg. The company apparently recorded losses to the tune of $104 million in the second quarter, which may have been a surprise since executives were hoping to be profitable in the country. Only recently, the company had reiterated its commitment to remaining “profitable and self-sustainable” in China.
It has been quite challenging for auto manufacturers to make profits in China, as local auto makers are offering a wide range of new models with the latest features, at lower prices.
The situation has forced GM to restructure in consultation with its Chinese joint-venture partner and to cut costs.
The restructuring will also involve more focus on electric vehicles, scaling up of models and even import of premium models. A reduction in factory capacity and further trimming of the workforce may also be on the cards.
However, GM will continue to manufacture affordable vehicles and EVs in China with its joint venture partner, SAIC and Wuling Motors. Some of the models will also be exported, as per HT.
Various popular brands, Buick, Cadillac and Chevrolet, are produced by the SAIC-GM joint venture, while more economical and affordable vehicles such as the Hongguang Mini EV, are produced by the SAIC-GM-Wuling partnership.
