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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On today’s battle-ready episode of Quick Charge, it’s Elon Musk vs. the world as big players position themselves for control of enough lithium to build 600 million electric cars and the rest of the industry squares up to Tesla in the battle for market leadership.
While Windrose is making sales and expanding into new markets, the Tesla Semi is still in limited tests, Robotaxi launches as a “ride hailing service” in California with randos in the drivers’ seat and Academy Award nominated actor/noted college football analyst Timothée Chalamet teams up with Lucid to steal (even more) sales from the embattled Model S and X lines.
Today’s episode is brought to you by Retrospec, the makers of sleek, powerful e-bikes and outdoor gear built for everyday adventure. Quick Charge listeners can get 10% off their next e-bike ride through August 14 with the exclusive code ELECTREK10 only at retrospec.com.
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If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
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EV charging company ezVOLTz has partnered with Driivz, the EV software arm of Vontier, to make its “Charging as a Service” platform even smarter and more reliable for fleets, businesses, and state and local governments across the US.
If you’re not familiar with ezVOLTz, it’s a full-service EV charging provider. It handles everything, from installing hardware-agnostic chargers to managing the backend with its software platform, ezCONNECT. Now, ezVOLTz is plugging into Driivz’s charging and energy management tech to help run things even more smoothly.
With Driivz’s help, ezVOLTz plans to keep its network humming with 24/7 monitoring and real-time issue detection. Driivz’s Alert Management System can auto-fix up to 80% of charger hiccups remotely without sending a tech on-site. That means more uptime and fewer headaches for drivers and site owners.
“EV adoption is surging, and drivers and the companies and entities that serve them need smart, connected, and reliable charging options,” said ezVOLTz CEO Sam Malhotra. “The Driivz team and their smart charging and energy management solutions are a natural fit in bolstering our services.”
The partnership also gives ezVOLTz new tools to grow its network. Driivz’s software tracks usage patterns and charger performance, helping pinpoint the best spots for new installations. Driivz will also support the ezVOLTz app, letting users plan road trips and find chargers nationwide.
“Reliability and ease-of-use are two of the most important considerations for EV drivers,” said Andrew Bennett, CEO of Driivz. “We’re proud to partner with ezVOLTz in delivering seamless and reliable charging to their customers.”
As more businesses, fleets, and municipalities plug into EVs, partnerships like this one aim to make sure the charging experience keeps up.
Read more: Driivz expands in the US EV charging market with a new HQ
The 30% federal solar tax credit is ending this year. If you’ve ever considered going solar, now’s the time to act. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
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The Subaru BRZ may live on as an EV after all. Subaru wants its share of the sports car market, and an electric BRZ could hit the sweet spot.
Is Subaru launching an electric BRZ?
Subaru discontinued the BRZ in Europe in 2020 after the first generation. Although its twin, the Toyota GR86, was sold until the 2024 model year, the BRZ was released as a US-only model.
In its third generation, it could return as an EV. Speaking with Autocar, Subaru’s European head, David Dello Stritto, said, “Our options are open,” hinting that the BRZ could make a comeback in electric form.
Subaru’s global EV product boss, Inoue Masahiko, confirmed an electric version of the sports car “was under consideration.” He added that Subaru has extensively looked into an EV version of the BRZ with its partner, Toyota.
Masahiko explained that “We did consider electrifying the BRZ and GR86, but the win-win relationship is more important.” So far, “We can’t get the kind of benefits from both sides,” he added.
Subaru is already launching several new electric vehicles in Europe, including the new Uncharted, E-Outback (known as Trailseeker in the US), and an updated Solterra SUV.
Stritto said that an electric sports car will depend on the success of these models first, especially the Uncharted. According to Subaru’s European boss, the Japanese automaker feels “very positively about Subaru enthusiasts, but we need to see how Uncharted does first.”
As for an “electrified” powertrain, or hybrid, Masahiko said the vehicle’s packaging “would make it difficult,” adding an EV version would be “easier” to create.
The comments come after Stritto told Autocar last week that a new entry-level EV could also be in the works. However, that will also depend on how well the Uncharted sells.
For those in the US, don’t worry – Subaru is not planning to discontinue the BRZ. If it did launch as an EV, would you consider one? It would go up against the new Hyundai IONIQ 6 N and Tesla Model 3 Performance.
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