General Motors Company
The auto behemoth has been reportedly downsizing employees in China, according to Bloomberg.
The company is also planning a meeting with local partner SAIC to discuss a structural overhaul of its functions there, acknowledging that the Detroit automaker is unlikely to see its sales return to 2017 peak levels.
The report read, citing people familiar with the discussions, that General Motors is laying off employees in Chinese market-related departments, including research and development.
In the coming weeks, the company and SAIC will discuss likely capacity cuts for a strategic redirection of American nameplates sold in China.
The reassessment marks a significant strategic shift for General Motors, which earned billions in China in 2018.
The automaker is scaling back as many foreign brands face intense competition from local players in the world's largest car market, now grappling with substantial overcapacity.
The report noted that the reset involves transitioning to electric vehicles, emphasizing upscale models, and importing premium vehicles.
Considerations include reducing factory capacity and additional job cuts, Bloomberg added.
Price Action: GM shares are trading lower by 0.47% to $42.79 at last check Tuesday.
