After Reports of Layoffs, GM Says It’s Committed to China

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SAIC-GM at the Shanghai International Low-Carbon Smart Travel Exhibition on June 6. Photo: VCG

General Motors Co. (GM) said it remains committed to its partnership with SAIC Motor Corp. Ltd. (600104.SH) and their joint ventures (JVs) in China, following reports that the American carmaker has been downsizing in the world’s largest auto market.

Bloomberg on Tuesday reported that GM has been laying off staff in departments related to the Chinese market, including research and development, citing people familiar with the matter. The report also said that GM and state-owned SAIC would discuss possible capacity cuts as part of a larger overhaul of its China operations. In April, Reuters reported that SAIC aimed to cut 30% of employees at its JV with GM. The American automaker has more than 58,000 employees in China, according to its website.

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General Motors (GM) is committed to its joint ventures with SAIC in China despite downsizing, and aims for closer collaboration for profitability and sustainable development.
GM’s China sales dropped significantly, with a 29% year-on-year decline in the quarter ending June, and its market share fell to 6.4%.
GM experienced financial losses in China due to declining sales and intense competition and is working with JV partners to restructure operations; domestic brands now account for 62.6% of China's passenger car market.

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Who’s Who

General Motors Co.: General Motors Co. (GM) remains committed to its partnership with SAIC Motor Corp. Ltd. in China, despite downsizing reports and significant market challenges. GM's sales in China have almost halved since 2017, with a 29% drop year-on-year in the last quarter. Facing intense competition, especially in new-energy vehicles, GM has been restructuring its operations, including significant leadership changes. GM underscores its dedication to providing top products and technology to Chinese consumers.

SAIC Motor Corp. Ltd.: SAIC Motor Corp. Ltd. (600104.SH) is a state-owned Chinese automotive company that partners with General Motors (GM) in joint ventures (JVs) to produce vehicles under brands like Buick, Cadillac, and Chevrolet. It focuses on manufacturing both traditional and new-energy vehicles (NEVs). Recently, SAIC has made leadership changes in the JV with GM to address competitive pressures in China's rapidly evolving auto market.

SAIC General Motors Corp. Ltd.: SAIC General Motors Corp. Ltd. is a joint venture between General Motors (GM) and SAIC Motor Corp. Ltd. It manufactures Buick, Cadillac, and Chevrolet brand vehicles. Despite focusing more on manufacturing new-energy vehicles (NEVs) in recent years, the venture has struggled to compete with local alternatives in the Chinese market. The JV recently underwent leadership changes, with new appointments for general manager, Communist Party secretary, and deputy general manager.

SAIC-GM-Wuling Automobile Co. Ltd.: SAIC-GM-Wuling Automobile Co. Ltd. is a joint venture between General Motors and SAIC that manufactures smaller and less expensive vehicles, such as the Baojun models. Despite the focus on manufacturing NEVs in recent years, these models have struggled to compete with local alternatives in the Chinese market.

Pan Asia Technical Automotive Center Co. Ltd.: Pan Asia Technical Automotive Center Co. Ltd. is a technology research and development venture formed between General Motors and SAIC. The company focuses on automotive technology advancements and was recently involved in leadership changes, where SAIC named a new executive deputy general manager.

Tesla Inc.: The article mentions that American brands, including those under GM, have a small market share in China, and notes that Tesla Inc. is another American automaker manufacturing vehicles in China. However, it does not provide specific details about Tesla’s operations or performance in the Chinese market.

Ford Motor Co.: The article briefly mentions Ford Motor Co. as one of the American automakers manufacturing vehicles in China. However, it does not provide specific details about Ford's current market performance or strategies in the Chinese market.

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