GM is restructuring its business in China, where domestic manufacturers backed by government subsidies have taken over the market
GENERAL Motors (GM) is closing a plant this month in the northeastern Chinese city of Shenyang as part of the US automaker’s restructuring in China, according to a company source.
The plant makes Buick GL8 minivans and the Chevrolet Tracker SUV for the China market. The source who confirmed the plant closure spoke on condition of anonymity.
GM is restructuring its business in China, where domestic manufacturers backed by government subsidies have taken over the market.
In the fourth quarter, the Detroit automaker reported US$4 billion in restructuring charges in China, which included plant closures. GM reported positive equity income in China in the fourth quarter before restructuring costs.
At an automotive conference in New York last week, GM CEO Mary Barra said the automaker’s future in China, the world’s largest auto market, would focus on Cadillac, Buick and its premium import business.
“Those are vehicles that are very desirable for certain Chinese consumers, that we can bring in and have a very successful business,” Barra said.
GM partners with Saic Motors to build Buick, Chevrolet and Cadillac vehicles in China. REUTERS
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