The poor performance of General Motors' Chinese joint ventures is forcing the company to write down assets and take a restructuring charge totaling more than $5 billion in the fourth quarter of this year.
The ventures used to be a reliable source of equity income for the company, but have swung to losses in the past year, with losses amounting to $347 million from January through September.
China has become an increasingly difficult market for foreign automakers, with BYD and other domestic companies raising their quality and reducing costs, making it a challenging environment for GM.
CEO Mary Barra acknowledged that the environment in China is tough, noting that domestic brands are prioritizing production over profitability, which affects foreign competitors.
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