GM’s Century-Old China Business Struggles Amid Rapid EV Market Shift

29 Jan, 2025

GM’s struggle in China reflects the broader challenges faced by legacy automakers in adapting to the electric vehicle (EV) revolution. Once a dominant force in the Chinese auto market, General Motors is now losing billions as competition from Tesla and homegrown EV giants like BYD and Geely intensifies. CEO Mary Barra recently acknowledged the difficulties, citing intense price wars and government subsidies that have reshaped the industry.

For decades, China was a major profit center for GM, with its joint venture with SAIC Motor leading to millions of Buick and Chevrolet sales. At its peak in 2017, GM sold over 4 million cars in China. However, in 2024, that number has plunged to 1.8 million, forcing GM to write down $5 billion in losses and restructuring costs. The automaker’s struggle highlights a key issue—its failure to adapt quickly to China’s rapidly evolving EV landscape.

The decline is striking given GM’s deep-rooted history in China. The brand traces its presence back to the 1920s, when China’s last emperor imported Buicks into the Forbidden City. Even during GM’s near-collapse in 2008, Buick survived due to its overwhelming success in China. Today, however, that historical loyalty is not enough to fend off a wave of technologically advanced, affordable electric cars from local competitors.

GM is not alone in facing this challenge—many legacy automakers underestimated China’s swift EV transition. But its struggles raise a bigger question: As the U.S. market remains hesitant to fully embrace electric cars, can American automakers stay competitive in a global industry that is rapidly shifting toward EVs? The future of GM in China, and possibly in the world, may depend on how quickly it can reinvent itself.

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