GM braces for a $5 billion hit as it fights to keep up in China’s intensifying EV price war
As it struggles to keep up with low-cost rivals like BYD, GM expects to suffer a $5 billion blow to its business in China. The multi-billion hit comes as GM rapidly loses market share in the world’s largest EV market.
GM sees $5 billion impact from restructuring in China
GM’s Chinese joint venture, SAIC-GM (SGM), a 50-50 partnership with state-owned SAIC Motor, is facing an over $5 billion impact as it restructures the business.
SAIC-GM revealed in a regulatory filing on Wednesday (via The New York Times) that it expects to write down between $2.6 billion and $2.9 billion in the fourth quarter. The automaker is also expecting another $2.7 billion in restructuring expenses.
According to the filing, GM’s latest measures will include “plant closures and portfolio optimization.” However, no specifics were given about which facilities would be included.
GM is “focused on capital efficiency and cost discipline” as it works with SGM to “turn around the business in China.” The company is close to finalizing a restructuring plan and expects year-over-year (YOY) improvement in 2025.
The announcement comes as GM’s market share in China has nearly halved over the past 10 years. GM’s market share in China fell from around 15% in 2015 to just 8.6% last year.
With three straight quarterly losses, GM has lost nearly $350 million in China this year. Its sales are down nearly 20% through the first nine months of 2024.
Like most legacy automakers, GM is struggling to keep pace with low-cost EV makers like BYD in China. BYD sold a record 506,804 vehicles in November, its second straight month topping the 500,000 mark. Through the first 11 months of the year, BYD has sold over 3.7 million EV and PHEV models.
BYD surpassed Volkswagen to become China’s top-selling car brand last year, ending the German automaker’s four-decade run.
As it expands overseas, BYD is now on pace to surpass Ford in global deliveries, which could make it the sixth-largest automaker globally.
Electrek’s Take
With low-priced EV models, like its top-selling Seagull, starting under $10,000 in China, BYD is squeezing legacy automakers like GM, VW, and Ford out of the market.
As it looks to overcome the new wave of EVs launching in China, BYD is quickly expanding in overseas markets like Southeast Asia, Central and South America, and parts of Europe.
For the first time in Q3, BYD delivered more vehicles than Nissan and Honda. Can it catch up to Ford and other leading global automakers? Although best known for its cheap EV models, China’s auto giant is quickly expanding into new segments like pickup trucks, midsize smart SUVs, and luxury models.
GM’s CEO Mary Barra told Fortune in October that China’s EV price war “has become a race to the bottom with pricing and the level of subsidies.” Barra explained that low-cost loans enable some companies to sell cars at a loss, which puts pressure on foreign automakers like GM.
Meanwhile, in the US, GM sold a record 32,095 EVs in the third quarter, up 60% year over year. The record sales were enough to top Ford and Hyundai, making GM the number two seller of EVs in North America, behind Tesla.
GM said its EV profitability in North America is steadily improving. The company expects to generate between $10.4 billion and $11.1 billion in net income this year.
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The best-selling Genesis vehicle in North America is getting even better. Genesis updated the GV70 and Electrified GV70, giving the already impressive SUV more style, added features, and a refined interior. Ahead of deliveries, we are getting our first look at the upgraded interior of the new Genesis GV70 Electrified.
Genesis unveiled the refreshed Electrified GV70 at the LA Auto Show two weeks ago, fine-tuning the electric SUV inside and out.
One of the first things you will notice is the revamped front end with a redesigned G-Matrix Grille. The charge port is now in the grille and comes exclusively with an NACS port that unlocks access to Tesla’s Supercharger Network.
The new model features the unmistakable Genesis two-line headlamps, now equipped with microlens array (MLA) tech for better sight at night or in low-light areas.
According to Claudia Márquez, chief operating officer of Genesis Motor North America, the new Electrified GV70 offers “all of the utility and interior refinement of a great SUV without sacrificing the fun-to-drive character that Genesis vehicles are known for.”
The interior now includes a massive new 27″ OLED driver and infotainment display. With improved voice recognition, drivers can adjust the windows, control HVAC settings, and more.
2026 Genesis Electrified GV70 interior adds luxury, style
Ahead of deliveries, we are already getting a sneak peek at the updated interior. The latest video from HealerTV reveals the new Genesis Electrified GV70 interior design.
You can see the massive 27″ OLED display at the center. The EV version also differs from the gas-powered GV70, including added ambient mood and a marble-like design on the door panels. The second row also gains ambient lighting and what appears to be a touchscreen for the heat and air controls.
Overall, the new Genesis Electrified GV70 interior maintains its lavish, clean look. Even little details like suede seats with white stitching and white seat belts add to the luxurious feel inside the cabin.
The design isn’t the only upgrade. With a bigger 84 kWh battery, up from 77.4 kWh in the previous model, the new Genesis Electrified GV70 is expected to feature more driving range.
Although no specs were given, the new EV models are expected to gain a few extra miles of range, similar to the updated Hyundai IONIQ 5. The 2025 Hyundai IONIQ 5 gets up to 318 miles of range with the same larger battery, compared to 303 in the previous version.
Check back soon for more details. The new Genesis Electrified GV70 is expected to arrive at US dealerships in the first half of 2025.
Ready to check out the electric Genesis luxury SUV for yourself? With the new 2026 models arriving soon, Genesis is offering up to $12,750 off the 2025 Electrified GV70 with lease discounts. You can use our link to find the best deals on the Genesis GV70 at a dealer near you.
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Environment
EV tax credit is ‘catastrophically stupid,’ says incoming Ohio Senator and ‘car czar’ Bernie Moreno
Republican nominee for U.S. Senate Bernie Moreno addresses supporters at Brecksville Community Center on November 4, 2024 in Brecksville, Ohio.
Stephen Maturen | Getty Images
Republican Senator-elect Bernie Moreno, who made his living as a luxury car dealer before running against and defeating Democrat Sherrod Brown in the large manufacturing state of Ohio, said he is aiming to become the “car czar” within the Senate for the next Trump administration.
If Moreno is to fill that role, one of the first things he would target is eliminating the up to $7,500 tax credit that can be used to buy or lease an electric vehicle.
“At the end of the day, the $7,500 incentive is catastrophically stupid,” Moreno told CNBC D.C. Correspondent Emily Wilkins at the 2024 CNBC CFO Council Summit in Washington, D.C., on Wednesday.
Some senators, like Michigan’s Elissa Slotkin, who was criticized by her Republican challenger Mike Rogers for her support of the Biden administration’s embrace of electric vehicles, have looked to frame their support of the tax credit as a defensive move aiding the auto industry in its battle with Chinese auto manufacturers.
However, Moreno told Wilkins he views that position as “nonsense,” adding that the government should not “tell companies what to do and how to have a strategy.”
“If you don’t care what kind of car they drive, then let the markets work,” Moreno said. “We’re going to let the marketplace decide what kind of cars people should drive, and if it’s electric, great.”
Moreno pushed back against the argument that reversing Inflation Reduction Act incentives like the EV tax credit would effectively cede a key technology race to China. He said that if China is “dramatically ahead of us on EVs – good for them; we’re dramatically ahead of them in terms of combustion and hybrids.”
“So as a country, where do you prefer our industry to go? The places where we have a strategic advantage and not hand an industry over to China?” Moreno said. Moreno added that a change in U.S. law as it relates to the EV incentives is “not be handing it them” but a reflection that “consumers have spoken.”
“There’s never been a case in time where consumers have been more clear about what they want and don’t want,” Moreno said. “There’s people who EVs are great for them, and good for you, that car works for you, you should go out and buy it … But for a lot of people, they don’t want it.”
The euphoria that surrounded EV investment and sales has largely died out at major auto manufacturers, and automakers from Ford Motor and General Motors to Mercedes-Benz, Volkswagen, Jaguar Land Rover and Aston Martin have announced plans to scale back or delay some electric vehicle plans.
While electric vehicle sales are still expected to increase in the coming years, the boom in consumer demand for EVs that many car CEOs expected never materialized. “What we saw in ’21 and ’22 was a temporary market spike where the demand for EVs really took off,” Marin Gjaja, chief operating officer for Ford’s EV unit, told CNBC earlier this year. “It’s still growing but not nearly at the rate we thought it might have in ’21, ’22.”
Instead, automakers are shifting their focus to a more mixed offering of vehicles with lineups of gas-powered cars alongside hybrids and EVs, rather than more towards plans like the all-electric by 2035 mandate laid out by GM CEO Mary Barra.
“We’re going to let the marketplace work,” Moreno said. “We’re going to create an environment for car companies to be able to have a good tax environment, a good regulatory environment and good workforce … Let the marketplace work; stop the madness of government intervention in corporations and the marketplace will take care of it.”
GM and EVgo have now reached the milestone of installing more than 2,000 co-branded public DC fast chargers in the US.
The latest addition is a new fast charging station in Murrieta, California, off Interstate 215 in Riverside County. The station features five 350 kW fast chargers that can serve up to 10 EVs at once, and it’s near restaurants, coffee shops, and retail.
The GM and EVgo partnership has resulted in DC fast chargers at over 390 locations in 45 metro markets across 32 states, focusing on spots like grocery stores, shopping centers, and city centers. Their goal is to make charging convenient for those who can’t do it at home, such as renters or people living in apartments. For those folks, finding a nearby fast charger can be a game-changer.
The GM and EVgo partnership is on track to reach its goal of 2,850 DC fast chargers nationwide. It plans to build 400 at flagship locations in major markets, including California, Florida, New York, and Michigan.
It’s been fast progress, too. In August 2023, GM and EVgo brought their 1,000th charging stall online in the Chicago suburb of Woodbridge, Illinois. In just 16 months, they’ve doubled their shared EV footprint, including at highway rest stops along interstate routes.
Wade Sheffer, vice president of GM Energy, said, “Our collaboration with EVgo underscores our dedication to providing EV drivers with the best possible experience by expanding reliable fast charging infrastructure across the country.”
Read more: Tesla loses out to EVgo in Oklahoma’s NEVI EV charger rollout
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