The competition in China is getting tougher for General Motors. As a result, the automotive company is restructuring, including shutting down a plant that built a minivan and an SUV for the Chinese market.
GM plans to close its plant in Shenyang, located in northeastern China, in the next month.
GM will close the plant in Shenyang, which is in the northeast part of China, later this month. The plant manufactures Buick GL8 minivans and the Chevrolet Tracker SUV. The company’s faced tougher competition from Chinese companies, which receive government subsidies.
This is despite the GL8 being a big player in China’s MPV or minivan market. The company noted last month it was the first model to surpass 2 million units in production and sales, doing so in September.
Making changes
Despite the result, GM CEO Mary Barra said last week the company plans to focus on “Cadillac, Buick, and its premium import business” in China.
The plant builds the Buick GL8 minivan, which is one of the best sellers in the segment.
“Those are vehicles that are very desirable for certain Chinese consumers, that we can bring in and have a very successful business,” she said during an investor conference last week.
In response to the changing market, GM’s been making adjustments, resulting in the company taking a $4 billion restructuring charge in the fourth quarter. Much of that directly tied to plant closures.
The company posted a loss of $2.96 billion in Q4 2024 compared with a $2.1 billion profit during the year ago period. As part of its efforts to continue its strong presence in China, it will continue to rely on its partnership with SAIC Motors to manufacture Buick, Chevrolet, and Cadillac vehicles in China despite the closures.
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