General Motors writes down more than $5bn from value of China businesses
Carmaker is latest to warn of impact of slowing demand in the country
General Motors is to write down more than $5bn from the value of its businesses in China, as slowing demand in the country hits carmakers.
In an announcement on Wednesday, GM said that there was a “material loss in value of our investments in certain of the China joint ventures . . . in light of the finalisation of a new business forecast and certain restructuring actions”.
GM runs a series of joint ventures in China alongside SAIC Motor Corp.
It added that it would write down the value of its interest in its Chinese joint ventures by as much as $2.9bn, and record an additional $2.7bn in restructuring charges.
Problems in China have recently led to steep falls in quarterly profit for Toyota, Honda and BMW.