Dec 4, 6:31 AM ET
GM to record $2.6–2.9 billion China JV impairment, plus $2.7 billion in equity losses
General Motors said its Audit Committee concluded on December 2, 2024 that a material impairment of its interest in SAIC General Motors (SGM) is required, because the loss in value of certain China joint ventures is other than temporary. GM expects to record an impairment of $2.6–2.9 billion and about $2.7 billion in additional equity losses tied to SGM's restructuring, mostly in the quarter ending December 31, 2024. The charges are non-cash and will be treated as special for EBIT-adjusted purposes, but they are large relative to GM's China exposure and will weigh on reported results for the period.
- Impairment of GM's equity interest in the China joint ventures expected at $2.6–2.9 billion, recorded in the three months ending December 31, 2024
- Additional equity losses of approximately $2.7 billion expected from SGM's restructuring plan, including plant closure and portfolio optimization impairments at the China JVs
- Charges are expected to be non-cash and treated as special for EBIT-adjusted purposes; GM is still assessing the impact of SGM's restructuring actions