General Motors Remains Committed To China Despite Losses, Restructuring Needs: CFO Highlights Cash Stability Goals

Author: Nabaparna Bhattacharya | August 09, 2024 11:04am

General Motors Company (NYSE:GM) stated its commitment to establishing a profitable and self-sustaining operation in China despite the intense competition from local brands.

“We’re committed to maintaining cash stability there at a point where it’s self-sustaining. That means not needing any capital from outside,” company CFO Paul Jacobson said yesterday at an auto conference organized by J.P. Morgan, reported Reuters.

Global automakers have faced challenges in gaining traction in China. Investors continue scrutinizing the company over its China operations. It’s less a profit driver and more of a financial burden, they say.

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Jacobson pushed back: “I don’t necessarily accept the notion that we’re struggling to make money there.”

In June, a prominent automotive analyst urged the Detroit Three to exit the Chinese market to conserve funds.

General Motors reported a $104 million loss in China for the second quarter, falling short of executives’ expectations for profitability in the region.

According to Benzinga Pro, GM stock has gained over 18% in the past year.

Investors can gain exposure to the stock via First Trust Nasdaq Transportation ETF (NASDAQ:FTXR) and Invesco S&P 500 Pure Value ETF (NYSE:RPV).

Price Action: GM shares are trading higher by 0.56% to $42.97 at last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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