General Motors China to lay off employees and plan massive reforms, sources say

DoNews reported on August 13 that according to IT House citing Bloomberg reports, General Motors is laying off employees in China to reposition itself in the world's largest auto market.

General Motors is cutting jobs in China and will soon meet with local partner SAIC to plan larger structural reforms to its business in China, people familiar with the matter said, recognizing that its sales are unlikely to recover. to peak levels in 2017.

According to reports, General Motors is laying off employees in departments related to the Chinese market, including the research department. General Motors and SAIC Motor will discuss possible production capacity cuts in the coming weeks as part of a strategic shift to sell U.S. brands in China, according to people familiar with the matter. This reassessment represents a major shift in GM's strategy.

The report mentioned that in China, the world's largest automobile market, foreign brands are competing with many local rivals and are currently facing huge overcapacity. The restructuring involves a shift toward producing electric vehicles, a focus on more premium models and the import of premium cars, these people said.

The people, who spoke on condition of anonymity, said the plans are under consideration and have not been publicly disclosed. GM will continue to maintain joint ventures with SAIC Motor and Wuling Motors to build cheaper cars and electric vehicles locally, with some models to be exported from China.

SAIC Group’s production and sales report for July 2024 shows that SAIC General Motors Co., Ltd.’s sales in July were 15,000 vehicles, a sharp drop of 82.42% year-on-year. The cumulative sales volume in the first seven months of this year fell 55.14% year-on-year.

In addition, SAIC-GM-Wuling Automobile Co., Ltd.'s July sales also fell 31.72% year-on-year.

On August 9, SAIC General Motors announced high-level personnel changes. Lu Xiao, the former executive deputy general manager of Pan Asia Automotive Technology Center, succeeded Zhuang Jingxiong as the general manager of SAIC General Motors.

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