“General Motors has filed a $5 billion lawsuit against its Chinese operations, signaling a slowdown in growth in what was once the U.S. automaker’s biggest market.”, — write: epravda.com.ua
General Motors has filed a $5 billion lawsuit against its Chinese ventures, signaling a slowdown in growth in the once-biggest market for the American automaker. The Financial Times reports. The company says it will reduce the value of its stake in Chinese joint ventures by 2, 9 billion USD, and will also record additional costs for restructuring in the amount of 2.7 billion. USD.Advertisement: GM said there has been a “material impairment of the value of our investments in certain Chinese joint ventures. … in light of the completion of a new business outlook and certain restructuring measures.” GM shares fell 3% in premarket trading in on Wednesday, after falling 2.5% in the previous session.Advertisement: GM and Germany’s Volkswagen are the two biggest Western automakers with operations in China. But, like many competitors, both are trying to maintain their positions amid growing competition from local manufacturers. Recall: General Motors will recall 461,839 vehicles due to transmission problems.
